This discussion is designed to provide insight into management's assessment of significant trends related to the Company's consolidated financial condition, results of operations, liquidity, capital resources, and interest rate sensitivity. This Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and the interim Unaudited Consolidated Financial Statements and Notes to Unaudited Consolidated Financial Statements hereto and financial information appearing elsewhere in this report. Unless the context requires otherwise, the terms "Company," "we," and "our" refer to Western Alliance Bancorporation and its wholly-owned subsidiaries on a consolidated basis. Forward-Looking Information Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including without limitation, statements regarding our expectations with respect to our business, financial and operating results, including our deposits and deposit optimization strategy, liquidity and funding, changes in economic conditions and the related impact on the Company's business, and statements that are related to or are dependent on estimates or assumptions relating to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. The forward-looking statements contained in this Form 10-Q reflect the Company's current views about future events and financial performance and are subject to certain risks, uncertainties, assumptions, and changes in circumstances that may cause the Company's actual results to differ significantly from historical results and those expressed in any forward-looking statement. Risks and uncertainties include those set forth in the Company's filings with the SEC and the following factors that could cause actual results to differ materially from historical or expected results: 1) adverse financial market and economic conditions, including the effects of inflation and any recession in the United States, adverse developments in the financial services industry generally, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers, and any related impact on customer behavior, the potential impact on borrowers of supply chain disruptions and the economic and market impacts of the geopolitical conflicts; 2) changes in interest rates and increased rate competition; 3) the discontinuation of or substantial changes to interest rate benchmarks utilized in our lending, borrowing and hedging activities; 4) exposure of financial instruments to certain market risks that may increase the volatility of earnings and AOCI; 5) the inherent risk associated with accounting estimates, including the impact to the allowance, provision for credit losses, and capital levels; 6) exposure to natural and man-made disasters in markets where we operate and the impact of climate change and sustainability practices on us and our customers; 7) the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; 8) higher defaults on our loan portfolio than we expect; 9) increased foreclosures and ownership of real property; 10) changes in management's estimate of the adequacy of the allowance for credit losses; 11) dependency on real estate and events that negatively impact the real estate market; 12) concentrations in certain business lines or product types within our loan portfolio; 13) residual risk retained by us on reference pools covered by credit linked notes; 14) exposures related to the properties to which we acquire title; 15) ability to compete in a highly competitive market; 16) expansion strategies through acquisitions or implementation of new lines of business or new products and services that may not be successful and supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities; 17) uncertainty associated with digital payment initiatives; 18) ability to recruit and retain qualified employees and implement adequate succession planning to mitigate the loss of key members of our senior management team; 19) ability to meet capital adequacy and liquidity requirements and the sufficiency of liquidity; 20) dependence on low-cost deposits; 21) risks related to representations and warranties made on third-party loan sales; 22) ability to borrow from the FHLB or the FRB; 23) a change in our creditworthiness; 24) information security breaches; 25) reliance on third parties to provide key components of our infrastructure; 26) perpetration of fraud; 27) ability to implement and improve our controls and processes to keep pace with growth; 28) risk of operating in a highly regulated industry and our ability to remain in compliance; 29) ability to adapt to technological change; 30) technological risks and developments and cyber threats, attacks or events; 31) emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; 32) failure to comply with state and federal banking agency laws and regulations; 33) results of any tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; 34) risks related to ownership and price of our preferred and common stock; 35) ability to continue to declare quarterly dividends; 36) additional regulatory requirements resulting from our continued growth; 37) management's estimates and projections of interest rates and interest rate policies; 38) the execution of our business plan; 39) the outcome of legal proceedings with borrowers, the amount of funds and/or collateral that may be available for repayment of loans, and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to loans. 60 For more information regarding risks that may cause the Company's actual results to differ materially from any forward-looking statements, see “Risk Factors” in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, “Risk Factors” in Part II, Item 1A of this Form 10-Q, and related disclosures in other filings with the SEC. All forward-looking statements that are made or attributable to us are expressly qualified in their entirety by this cautionary notice. The forward-looking statements included herein are based only on information currently available to us and speak only as of the date of this Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this Form 10-Q might not occur, and you should not put undue reliance on any forward-looking statements. Recent Market and Banking Industry Developments Deposit Optimization Strategy During the second quarter of 2026, the Company initiated a deposit optimization strategy designed to improve profitability by reducing higher-cost deposit balances. These efforts lowered period-end deposits relative to the prior quarter, including the reduction of more than $1 billion of higher-cost deposits near quarter-end. This strategy is designed to reposition the Company’s funding mix by reducing deposit costs and improving net interest margin over time. CRE Exposure The Company's loan portfolio includes significant credit exposure to the CRE market, with CRE related loans comprising approximately 26% and 27% of total loans at June 30, 2026 and December 31, 2025, respectively. Approximately 13% and 14% of CRE loans, excluding construction and land loans, were owner occupied at June 30, 2026 and December 31, 2025, respectively. Less than 4% of HFI loans were non-owner occupied office loans at June 30, 2026 and December 31, 2025. During the three and six months ended June 30, 2026, the Company recognized gross charge-offs on CRE non-owner occupied loans totaling $32.0 million and $59.7 million, respectively. As the Company continues to focus on moving nonperforming loans through its standard credit resolution process, the Company took possession of one CRE office property during the six months ended June 30, 2026. While the Company believes its reserve levels are adequate, CRE market conditions may worsen, which could result in further deterioration of asset quality in this portfolio. Legal Disputes Related to Credit Facilities Cantor Group V, LLC In August 2025, the Bank initiated a lawsuit in Los Angeles Superior Court against Cantor Group V, LLC and certain individual guarantors in connection with the Bank's note finance revolving credit facility to Cantor Group V, LLC, alleging fraud by the borrower for failing to provide collateral loans in the first position, seeking appointment of a receiver and recovery of funds, and seeking other forms of relief and damages related to claims against the borrower. In addition, under certain circumstances such as fraud, the Bank holds both a limited guaranty and full guaranty from two ultra-high net worth individuals. As of September 30, 2025, the Bank moved the $98.5 million facility to nonaccrual status and established a specific allowance of $29.6 million for this loan. During the three months ended March 31, 2026, management reevaluated the existing collateral based on updated “as-is” appraisals and due to the expected duration of the resolution process, recognized a charge-off of $26.1 million from the previously established reserve. No additional charge-offs were recognized during the three months ended June 30, 2026. Leucadia Asset Management LLC and Jefferies Financial Group In May 2026, the Bank and its collateral agent filed an amended complaint in New York Supreme Court against Jefferies Financial Group, Leucadia Asset Management LLC, and affiliates (collectively, the "Defendants") alleging breach of contract, fraud, negligence, promissory estoppel, and unjust enrichment in connection with a trade finance loan extended by the Bank, seeking declaratory and injunctive relief for the recovery of funds, and other forms of relief and damages related to claims against the Defendants. This loan was secured by accounts receivable the Bank's borrower purchased from First Brands Group, which filed for bankruptcy in September 2025. The loan entered default status following the identification of servicing failures, including lapses in UCC filings, and in October 2025, the Bank entered into a forbearance agreement pursuant to which the Defendants agreed to cause full repayment of the loan by March 31, 2026. Defendants then made payments pursuant to the forbearance agreement from October 2025 to January 15, 2026. In late February 2026, after the Company was notified the remaining principal balance of the loan would not be repaid as agreed and with the Defendants' failure to make the payment due that month, the Company recorded a charge‑off of $126.4 million for the remaining loan balance. The Company continues to pursue recovery through litigation and other available remedies. Any future recoveries will be recognized when realized or realizable. 61 Financial Overview and Highlights WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of customized loan, deposit and treasury management capabilities, including funds transfer and other digital payment offerings, through its wholly-owned banking subsidiary, WAB. The Company also provides an array of specialized financial services across the country, including mortgage banking services through AmeriHome, treasury management services to the homeowner's association sector, and digital payment services for the class action legal industry. Financial Results Highlights for the Second Quarter of 2026 •Net income available to common stockholders of $258.5 million, compared to $227.2 million for the second quarter 2025 •Diluted earnings per share of $2.36, compared to $2.07 per share for the second quarter 2025 •Net revenue of $995.7 million, compared to $845.9 million for the second quarter 2025, with non-interest expense of $583.3 million, compared to $514.7 million for the second quarter 2025 •PPNR1 of $412.4 million, up 24.5% from $331.2 million in the second quarter 2025 •Total loans HFI of $60.9 billion, up $2.3 billion, or 3.9%, from December 31, 2025 •Total deposits of $81.9 billion, up $4.7 billion, or 6.1%, from December 31, 2025 •Total equity of $8.1 billion, an increase of $189 million, or 2.4%, from December 31, 2025 •Nonperforming loans to funded HFI loans increased to 0.92%, compared to 0.85% at December 31, 2025 •Nonperforming assets (nonaccrual loans and repossessed assets) increased to 0.70% of total assets, compared to 0.69% at December 31, 2025 •Annualized net loan charge-offs to average loans outstanding of 0.37%, compared to 0.22% for the second quarter 2025 •Net interest margin of 3.53%, flat from the second quarter 2025 •Tangible common equity ratio1 of 7.0%, compared to 7.3% at December 31, 2025 •Book value per common share of $69.11, an increase of $1.91, or 2.8%, from $67.20 at December 31, 2025 •Tangible book value per share, net of tax1, of $63.24, an increase of $1.95, or 3.2%, from $61.29 at December 31, 2025 •Efficiency ratio1 of 58.0% in the second quarter 2026, compared to 60.1% in the second quarter 2025 •Efficiency ratio, adjusted for deposit costs1 of 48.9%, compared to 51.8% in the second quarter 2025 The impact to the Company from these items, and others of both a positive and negative nature, are discussed in more detail below as they pertain to the Company’s overall comparative performance for the three and six months ended June 30, 2026. 1 See Non-GAAP Financial Measures section beginning on page 65. 62 Results of Operations and Financial Condition As a bank holding company, management focuses on key ratios in evaluating the Company's financial condition and results of operations. A summary of the Company's results of operations, financial condition, and selected metrics are included in the following tables: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in millions, except per share amounts) Net income / as adjusted (1) $ 268.8 $ 237.8 $ 458.0 / $ 520.1 $ 436.9 Net income available to common stockholders / as adjusted (1) 258.5 227.2 437.4 / 499.5 423.1 Earnings per share - basic 2.37 2.08 4.00 3.89 Earnings per share - diluted / as adjusted (1) 2.36 2.07 3.99 / 4.57 3.86 Return on average assets / as adjusted (1) 1.09 % 1.10 % 0.95 % / 1.08 % 1.04 % Return on average equity 13.5 13.0 11.5 12.4 Return on average tangible common equity / as adjusted (1) 15.3 14.9 12.9 / 14.7 14.2 Net interest margin 3.53 3.53 3.54 3.50 (1) See Non-GAAP Financial Measures section beginning on page 65. June 30, 2026 December 31, 2025 (in millions) Total assets $ 98,701 $ 92,774 Loans HFS 4,347 3,498 Loans HFI, net of deferred fees and costs 60,949 58,677 Investment securities, net of allowance for credit losses 20,622 20,438 Total deposits 81,874 77,159 Other borrowings 6,236 5,240 Qualifying debt 1,069 1,076 Total equity 8,135 7,946 Tangible common equity, net of tax (1) 6,906 6,711 (1) See Non-GAAP Financial Measures section beginning on page 65. Asset Quality For all banks and bank holding companies, asset quality plays a significant role in the overall financial condition of the institution and results of operations. The Company measures asset quality in terms of nonaccrual loans as a percentage of gross loans and net charge-offs as a percentage of average loans. Net charge-offs are calculated as the difference between charged-off loans and recovery payments received on previously charged-off loans. The following table summarizes the Company's key asset quality metrics for loans HFI: June 30, 2026 December 31, 2025 (dollars in millions) Nonaccrual loans $ 562 $ 500 Repossessed assets 126 137 Non-performing assets 907 817 Nonaccrual loans to funded loans 0.92 % 0.85 % Nonaccrual and repossessed assets to total assets 0.70 0.69 Allowance for loan losses to funded loans 0.80 0.78 Allowance for credit losses to funded loans 0.89 0.87 Allowance for loan losses to nonaccrual loans 87 92 Allowance for credit losses to nonaccrual loans 96 102 Net charge-offs to average loans outstanding (1) 0.37 0.24 (1)Annualized on an actual/actual basis for the three months ended June 30, 2026. Actual year-to-date for the year ended December 31, 2025. 63 Asset and Deposit Growth The Company’s assets and liabilities are comprised primarily of loans and deposits. Therefore, the ability to originate new loans and attract new deposits is fundamental to the Company’s growth. Total assets increased to $98.7 billion at June 30, 2026, an increase of $5.9 billion, or 6.4%, from $92.8 billion at December 31, 2025. Higher deposit levels supported an increase in cash of $2.3 billion, and also funded HFI and HFS loan growth of $2.3 billion and $849 million, respectively. Loans HFI increased $2.3 billion, or 3.9%, to $60.9 billion as of June 30, 2026, compared to $58.7 billion as of December 31, 2025. By loan type, commercial and industrial, residential, and construction and land development loans increased $1.8 billion, $396 million, and $186 million, respectively, from December 31, 2025, partially offset by a decrease in commercial real estate owner occupied loans of $105 million. In addition, loans HFS increased $849 million, or 24.3%, from $3.5 billion as of December 31, 2025 primarily due to an increase in government-insured or guaranteed and agency-conforming mortgage loans. Total deposits increased $4.7 billion, or 6.1%, to $81.9 billion as of June 30, 2026 from $77.2 billion as of December 31, 2025. By type, the increase in deposits from December 31, 2025 was driven by increases of $3.5 billion, $843 million, $300 million, and $105 million in non-interest bearing deposits, interest bearing demand deposits, savings and money market accounts, and certificates of deposit, respectively. RESULTS OF OPERATIONS The following table sets forth a summary financial overview: Three Months Ended June 30, Increase (Decrease) Six Months Ended June 30, Increase (Decrease) 2026 2025 2026 2025 (in millions, except per share amounts) Consolidated Income Statement Data: Interest income $ 1,231.9 $ 1,154.4 $ 77.5 $ 2,420.1 $ 2,250.0 $ 170.1 Interest expense 435.0 456.8 (21.8) 856.9 901.8 (44.9) Net interest income 796.9 697.6 99.3 1,563.2 1,348.2 215.0 Provision for credit losses 80.4 39.9 40.5 293.6 71.1 222.5 Net interest income after provision for credit losses 716.5 657.7 58.8 1,269.6 1,277.1 (7.5) Non-interest income 198.8 148.3 50.5 451.4 275.7 175.7 Non-interest expense 583.3 514.7 68.6 1,157.7 1,015.1 142.6 Income before provision for income taxes 332.0 291.3 40.7 563.3 537.7 25.6 Income tax expense 63.2 53.5 9.7 105.3 100.8 4.5 Net income 268.8 237.8 31.0 458.0 436.9 21.1 Net income attributable to noncontrolling interest 7.1 7.4 (0.3) 14.2 7.4 6.8 Net income attributable to Western Alliance 261.7 230.4 31.3 443.8 429.5 14.3 Dividends on preferred stock 3.2 3.2 — 6.4 6.4 — Net income available to common stockholders $ 258.5 $ 227.2 $ 31.3 $ 437.4 $ 423.1 $ 14.3 Earnings per share: Basic $ 2.37 $ 2.08 $ 0.29 $ 4.00 $ 3.89 $ 0.11 Diluted 2.36 2.07 0.29 3.99 3.86 0.13 64 Non-GAAP Financial Measures The following discussion and analysis contains financial information determined by methods other than those prescribed by GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. Management believes presentation of these non-GAAP financial measures provides useful supplemental information that is essential to a complete understanding of the operating results of the Company. Since the presentation of these non-GAAP performance measures and their impact differ between companies, these non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Pre-Provision Net Revenue Banking regulations define PPNR as the sum of net interest income and non-interest income less expenses before adjusting for loss provisions and income taxes. Management believes this is an important metric as it illustrates the underlying performance of the Company, enables investors and others to assess the Company's ability to generate capital to cover credit losses through the credit cycle, and provides consistent reporting with a key metric used by bank regulatory agencies. The following table shows the components used in the calculation of PPNR: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Net interest income $ 796.9 $ 697.6 $ 1,563.2 $ 1,348.2 Total non-interest income 198.8 148.3 451.4 275.7 Net revenue $ 995.7 $ 845.9 $ 2,014.6 $ 1,623.9 Total non-interest expense 583.3 514.7 1,157.7 1,015.1 Pre-provision net revenue $ 412.4 $ 331.2 $ 856.9 $ 608.8 Less: Provision for credit losses 80.4 39.9 293.6 71.1 Income tax expense 63.2 53.5 105.3 100.8 Net income $ 268.8 $ 237.8 $ 458.0 $ 436.9 Efficiency Ratio The following table shows the components used in the calculation of the efficiency ratio, which measures non-interest expense as a ratio of net revenue on a tax equivalent basis. Management uses this ratio as a metric for assessing cost efficiency: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in millions) Total non-interest expense $ 583.3 $ 514.7 $ 1,157.7 $ 1,015.1 Less: Deposit costs 179.2 147.4 342.5 284.2 Total non-interest expense, excluding deposit costs 404.1 367.3 815.2 730.9 Divided by: Total net interest income 796.9 697.6 1,563.2 1,348.2 Plus: Tax equivalent interest adjustment 10.1 10.2 20.2 20.3 Total non-interest income 198.8 148.3 451.4 275.7 Less: Deposit costs 179.2 147.4 342.5 284.2 $ 826.6 $ 708.7 $ 1,692.3 $ 1,360.0 Efficiency ratio - tax equivalent basis 58.0 % 60.1 % 56.9 % 61.7 % Efficiency ratio - tax equivalent basis, adjusted for deposit costs 48.9 51.8 48.2 53.7 65 Tangible Common Equity and Return on Average Tangible Common Equity The following tables present financial measures related to tangible common equity. Tangible common equity represents total equity reduced by goodwill and intangible assets, preferred stock, and noncontrolling interest in subsidiary. Management believes tangible common equity financial measures are useful in evaluating the Company's capital strength, financial condition, and ability to manage potential losses. June 30, 2026 December 31, 2025 (dollars and shares in millions) Total equity $ 8,135 $ 7,946 Less: Preferred stock 295 295 Noncontrolling interest in subsidiary 293 293 Total common equity 7,547 7,358 Less: goodwill and intangible assets, net 644 649 Total tangible common equity 6,903 6,709 Plus: deferred tax - attributed to intangible assets 3 2 Total tangible common equity, net of tax $ 6,906 $ 6,711 Total assets $ 98,701 $ 92,774 Less: goodwill and intangible assets, net 644 649 Tangible assets 98,057 92,125 Plus: deferred tax - attributed to intangible assets 3 2 Total tangible assets, net of tax $ 98,060 $ 92,127 Tangible common equity ratio 7.0 % 7.3 % Common shares outstanding 109.2 109.5 Book value per common share $ 69.11 $ 67.20 Tangible book value per common share, net of tax 63.24 61.29 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (dollars in millions) Net income available to common stockholders $ 258.5 $ 227.2 $ 437.4 $ 423.1 Divided by: Average equity $ 8,012 $ 7,355 $ 8,066 $ 7,128 Less: Average goodwill and intangible assets 646 655 647 656 Average preferred stock 295 295 295 295 Average noncontrolling interest in subsidiary 293 293 293 155 Average tangible common equity $ 6,778 $ 6,112 $ 6,831 $ 6,022 Return on average tangible common equity 15.3 % 14.9 % 12.9 % 14.2 % 66 The adjusted non-GAAP revenue, earnings and return metrics presented below for the six months ended June 30, 2026 exclude, as applicable, the provision for credit losses related to the charge-off of the remaining Leucadia Asset Management LLC loan balance and gains on investment security sales executed during the three month ended March 31, 2026 as part of the Company's mitigation strategy. Net Revenue and Pre-Provision Net Revenue, As Adjusted (in millions) Net revenue $ 2,014.6 Adjusted for: Gain on sales of investment securities (50.5) Net revenue, as adjusted 1,964.1 Total non-interest expense 1,157.7 Pre-provision net revenue, as adjusted $ 806.4 Less: Provision for credit losses 293.6 Income tax expense 105.3 Gain on sales of investment securities (50.5) Net income $ 458.0 Earnings per Share, As Adjusted (in millions, except per share data) Net income $ 458.0 Adjusted for: Gain on sales of investment securities (50.5) Provision for credit losses on Leucadia Asset Management LLC 126.4 Tax effect of adjustments (13.8) Net income, as adjusted $ 520.1 Net income attributable to noncontrolling interest 14.2 Dividends on preferred stock 6.4 Net income available to common stockholders, as adjusted $ 499.5 Diluted shares 108.1 Diluted earnings per share, as adjusted $ 4.57 Return on Average Assets, As Adjusted (dollars in millions) Net income, as adjusted $ 520.1 Divided by: Average assets $ 97,051 Return on average assets, as adjusted 1.08 % Return on Average Tangible Common Equity, As Adjusted (dollars in millions) Net income available to common stockholders, as adjusted $ 499.5 Divided by: Average equity 8,066 Less: Average goodwill and intangible assets 647 Average preferred stock 295 Average noncontrolling interest in subsidiary 293 Average tangible common equity $ 6,831 Return on average tangible common equity, as adjusted 14.7 % 67 Regulatory Capital The following table presents certain financial measures related to regulatory capital under Basel III, which includes CET1 and total capital. The FRB and other banking regulators use CET1 and total capital as a basis for assessing a bank's capital adequacy; therefore, management believes it is useful to assess financial condition and capital adequacy using this same basis. Specifically, the CET1, tier 1 capital, and total capital ratios take into consideration the risk levels of assets and off-balance sheet financial instruments. In addition, management believes that the classified assets to CET1 plus allowance measure is an important regulatory metric for assessing asset quality. June 30, 2026 December 31, 2025 (dollars in millions) Common equity tier 1: Common equity $ 7,547 $ 7,358 Less: Non-qualifying goodwill and intangibles 626 633 Disallowed deferred tax asset 105 67 AOCI related adjustments (448) (341) Unrealized loss on changes in fair value liabilities (3) (4) Common equity tier 1 $ 7,267 $ 7,003 Divided by: Risk-weighted assets $ 66,210 $ 63,408 Common equity tier 1 ratio 11.0 % 11.0 % Common equity tier 1 $ 7,267 $ 7,003 Plus: Preferred stock, trust preferred securities, and noncontrolling interest in subsidiary 669 669 Tier 1 capital $ 7,936 $ 7,672 Divided by: Tangible average assets $ 98,440 $ 94,007 Tier 1 leverage ratio 8.1 % 8.2 % Total capital: Tier 1 capital $ 7,936 $ 7,672 Plus: Subordinated debt 865 990 Adjusted allowances for credit losses 553 523 Tier 2 capital $ 1,418 $ 1,513 Total capital $ 9,354 $ 9,185 Divided by: Risk-weighted assets $ 66,210 $ 63,408 Total capital ratio 14.1 % 14.5 % Classified assets to tier 1 capital plus allowance: Classified assets $ 1,128 $ 1,088 Divided by: Tier 1 capital 7,936 7,672 Plus: Adjusted allowances for credit losses 553 523 Total Tier 1 capital plus adjusted allowances for credit losses $ 8,489 $ 8,195 Classified assets to tier 1 capital plus allowance 13.3 % 13.3 % 68 Net Interest Margin The net interest margin is reported on a TEB. A tax equivalent adjustment is added to reflect interest earned on certain securities and loans that are exempt from federal and state income tax. The following tables set forth the average balances, interest income, interest expense, and average yield (on a fully TEB) for the periods indicated: Three Months Ended June 30, 2026 2025 Average Balance Interest Average Yield / Cost Average Balance Interest Average Yield / Cost (dollars in millions) Interest earning assets Loans HFS $ 5,653 $ 84.9 6.02 % $ 4,859 $ 74.0 6.11 % Loans HFI: Commercial and industrial 28,364 426.4 6.07 24,094 392.1 6.58 CRE - non-owner occupied 10,296 169.6 6.61 10,253 181.9 7.12 CRE - owner occupied 1,574 23.8 6.07 1,788 26.7 6.11 Construction and land development 4,191 80.8 7.78 4,290 88.7 8.29 Residential real estate 14,879 155.7 4.20 14,399 150.3 4.19 Consumer 17 0.3 6.57 32 0.6 7.07 Total loans HFI (1), (2), (3), (4) 59,321 856.6 5.82 54,856 840.3 6.17 Investment securities: Taxable 19,474 220.2 4.54 15,099 177.4 4.71 Tax-exempt 2,312 25.2 5.50 2,215 24.1 5.46 Total investment securities (1) 21,786 245.4 4.64 17,314 201.5 4.81 Cash and other 4,901 45.0 3.68 3,496 38.6 4.43 Total interest earning assets 91,661 1,231.9 5.43 80,525 1,154.4 5.80 Non-interest earning assets Cash and due from banks 544 346 Allowance for loan losses (482) (403) Bank owned life insurance 1,069 1,026 Other assets 5,692 4,905 Total assets $ 98,484 $ 86,399 Interest bearing liabilities Interest bearing deposits: Interest bearing demand accounts $ 19,316 $ 102.5 2.13 % $ 15,707 $ 97.2 2.48 % Savings and money market accounts 24,995 174.4 2.80 21,736 170.6 3.15 Certificates of deposit 9,873 93.6 3.80 10,084 110.0 4.38 Total interest bearing deposits 54,184 370.5 2.74 47,527 377.8 3.19 Short-term borrowings 3,329 33.9 4.08 3,048 35.7 4.69 Long-term debt 1,158 16.8 5.83 2,498 35.1 5.64 Qualifying debt 1,071 13.8 5.17 826 8.2 4.01 Total interest bearing liabilities 59,742 435.0 2.92 53,899 456.8 3.40 Interest cost of funding earning assets 1.90 2.28 Non-interest bearing liabilities Non-interest bearing deposits 29,351 23,569 Other liabilities 1,379 1,576 Equity 8,012 7,355 Total liabilities and equity $ 98,484 $ 86,399 Net interest income and margin (5) $ 796.9 3.53 % $ 697.6 3.53 % (1)Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $10.1 million and $10.2 million for the three months ended June 30, 2026 and 2025, respectively. (2)Interest income includes a reduction for earnings credits totaling $52.5 million and $61.3 million for the three months ended June 30, 2026 and 2025, respectively. (3)Included in the yield computation are net loan fees of $25.5 million for each of the three months ended June 30, 2026 and 2025. (4)Includes nonaccrual loans. (5)Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. 69 Six Months Ended June 30, 2026 2025 Average Balance Interest Average Yield / Cost Average Balance Interest Average Yield / Cost (dollars in millions) Interest earning assets Loans HFS $ 5,561 $ 165.1 5.99 % $ 4,581 $ 140.5 6.19 % Loans HFI: Commercial and industrial 27,964 839.7 6.10 23,466 758.0 6.57 CRE - non-owner occupied 10,306 339.5 6.64 10,133 357.1 7.11 CRE - owner occupied 1,634 48.6 6.04 1,833 55.4 6.20 Construction and land development 4,088 157.2 7.78 4,348 180.5 8.37 Residential real estate 14,746 306.5 4.19 14,373 302.5 4.24 Consumer 18 0.6 7.04 39 1.3 6.85 Total loans HFI (1), (2), (3), (4) 58,756 1,692.1 5.83 54,192 1,654.8 6.19 Investment securities: Taxable 18,590 415.5 4.51 14,065 320.9 4.60 Tax-exempt 2,295 49.8 5.50 2,235 48.6 5.49 Total investment securities (1) 20,885 465.3 4.62 16,300 369.5 4.72 Cash and other 5,113 97.6 3.85 3,788 85.2 4.54 Total interest earning assets 90,315 2,420.1 5.45 78,861 2,250.0 5.81 Non-interest earning assets Cash and due from banks 543 339 Allowance for loan losses (473) (400) Bank owned life insurance 1,065 1,020 Other assets 5,601 4,813 Total assets $ 97,051 $ 84,633 Interest bearing liabilities Interest bearing deposits: Interest bearing demand accounts $ 19,132 $ 202.1 2.13 % $ 15,788 $ 197.1 2.52 % Savings and money market accounts 24,804 343.1 2.79 21,473 335.4 3.15 Certificates of deposit 9,799 186.0 3.83 10,051 223.6 4.49 Total interest bearing deposits 53,735 731.2 2.74 47,312 756.1 3.22 Short-term borrowings 3,139 63.3 4.07 2,389 56.4 4.76 Long-term debt 1,255 35.5 5.70 2,575 71.8 5.62 Qualifying debt 1,074 26.9 5.04 862 17.5 4.10 Total interest bearing liabilities 59,203 856.9 2.92 53,138 901.8 3.42 Interest cost of funding earning assets 1.91 2.31 Non-interest bearing liabilities Non-interest bearing deposits 28,357 22,837 Other liabilities 1,425 1,530 Equity 8,066 7,128 Total liabilities and equity $ 97,051 $ 84,633 Net interest income and margin (5) $ 1,563.2 3.54 % $ 1,348.2 3.50 % (1)Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $20.2 million and $20.3 million for the six months ended June 30, 2026 and 2025, respectively. (2)Interest income includes a reduction for earnings credits totaling $101.2 million and $119.4 million for the six months ended June 30, 2026 and 2025, respectively. (3)Included in the yield computation are net loan fees of $49.4 million and $49.3 million for the six months ended June 30, 2026 and 2025, respectively. (4)Includes non-accrual loans. (5)Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. 70 Three Months Ended June 30, Six Months Ended June 30, 2026 versus 2025 2026 versus 2025 Increase (Decrease) Due to Changes in (1) Increase (Decrease) Due to Changes in (1) Volume Rate Total Volume Rate Total (in millions) Interest income: Loans HFS $ 11.9 $ (1.0) $ 10.9 $ 29.1 $ (4.5) $ 24.6 Loans HFI: Commercial and industrial 64.2 (29.9) 34.3 135.1 (53.4) 81.7 CRE - non-owner occupied 0.7 (13.0) (12.3) 5.7 (23.3) (17.6) CRE - owner occupied (3.2) 0.3 (2.9) (5.9) (0.9) (6.8) Construction and land development (1.9) (6.0) (7.9) (10.0) (13.3) (23.3) Residential real estate 5.0 0.4 5.4 7.8 (3.8) 4.0 Consumer (0.3) — (0.3) (0.7) — (0.7) Total loans HFI 64.5 (48.2) 16.3 132.0 (94.7) 37.3 Investment securities: Taxable 49.5 (6.7) 42.8 101.1 (6.5) 94.6 Tax-exempt 1.1 — 1.1 1.3 (0.1) 1.2 Total investment securities 50.6 (6.7) 43.9 102.4 (6.6) 95.8 Cash and other 12.9 (6.5) 6.4 25.3 (12.9) 12.4 Total interest income 139.9 (62.4) 77.5 288.8 (118.7) 170.1 Interest expense: Interest bearing demand accounts 19.2 (13.9) 5.3 35.3 (30.3) 5.0 Savings and money market accounts 22.7 (18.9) 3.8 46.1 (38.4) 7.7 Certificates of deposit (2.0) (14.4) (16.4) (4.8) (32.8) (37.6) Total deposits 39.9 (47.2) (7.3) 76.6 (101.5) (24.9) Short-term borrowings 2.9 (4.7) (1.8) 15.1 (8.2) 6.9 Long-term debt (19.4) 1.1 (18.3) (37.3) 1.0 (36.3) Qualifying debt 3.2 2.4 5.6 5.3 4.1 9.4 Total interest expense 26.6 (48.4) (21.8) 59.7 (104.6) (44.9) Net change $ 113.3 $ (14.0) $ 99.3 $ 229.1 $ (14.1) $ 215.0 (1) Changes attributable to both volume and rate are designated as volume changes. Comparison of interest income, interest expense and net interest margin The Company's primary source of revenue is interest income. For the three months ended June 30, 2026, interest income totaled $1.2 billion, an increase of $77.5 million, or 6.7%, from the same period in 2025. This growth was primarily the result of higher interest income from investment securities and loans HFI, which increased by $43.9 million and $16.3 million, respectively, driven by a $4.5 billion increase in average balances for each of these asset categories. For the six months ended June 30, 2026, interest income totaled $2.4 billion, an increase of $170.1 million, or 7.6%, compared to $2.3 billion for the same period in 2025. This increase was primarily the result of higher interest income from investment securities, loans HFI, and loans HFS, which increased by $95.8 million, $37.3 million, and $24.6 million, respectively, largely due to higher average balances for each of these asset categories. For the three months ended June 30, 2026, interest expense totaled $435.0 million, a decrease of $21.8 million, or 4.8%, compared to $456.8 million for the same period in 2025. The decrease was driven by lower interest expense on long-term debt and deposits, which declined $18.3 million and $7.3 million, respectively. The decrease in interest expense on long-term debt resulted from a $1.3 billion reduction in the average balance of long-term debt, while lower rates drove the decline in interest expense on deposits. These decreases were partially offset by an increase in interest expense on qualifying debt of $5.6 million, resulting from a $245 million increase in the average balance and higher interest rates. For the six months ended June 30, 2026, interest expense totaled $856.9 million, a decrease of $44.9 million, or 5.0%, compared to $901.8 million for the same period in 2025. The decline was driven by lower interest expense on long-term debt and deposits, which declined $36.3 million and $24.9 million, respectively. The decrease in interest expense on long-term debt resulted from a $1.3 billion reduction in the average balance of long-term debt, while lower rates drove the decline in interest 71 expense on deposits. These decreases were partially offset by an increase in interest expense on qualifying debt of $9.4 million, resulting from a $212 million increase in the average balance and higher rates. For the three months ended June 30, 2026, net interest income totaled $796.9 million, an increase of $99.3 million, or 14.2%, compared to $697.6 million for the same period in 2025. The increase in net interest income was driven by an increase in average interest earning assets of $11.1 billion and lower interest bearing deposit rates, partially offset by lower yields on interest earning assets and higher average interest bearing liability balances. Net interest margin was unchanged at 3.53%, as lower funding costs from the lower-rate environment were offset by declining yields on interest earning assets. For the six months ended June 30, 2026, net interest income totaled $1.6 billion, an increase of $215.0 million, or 15.9%, compared to $1.3 billion for the same period in 2025. The increase in net interest income was driven by an increase in average interest earning assets of $11.5 billion and lower interest bearing deposit rates, partially offset by lower yields on interest earning assets and a higher average interest bearing liability balances. Net interest margin improved 4 basis points to 3.54%, as lower funding costs in the declining rate environment more than offset the impact of lower yields on interest earning assets. Provision for Credit Losses The provision for credit losses in each period is reflected as a reduction in earnings for that period and includes amounts related to funded loans, unfunded loan commitments, and investment securities. The provision is equal to the amount required to maintain the ACL at a level adequate to absorb estimated lifetime credit losses inherent in the loan and investment securities portfolios based on remaining contractual maturity, adjusted for estimated prepayments as of each period end. The Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses. For the three and six months ended June 30, 2026, the Company recorded a provision for credit losses of $80.4 million and $293.6 million, compared to $39.9 million and $71.1 million for the three and six months ended June 30, 2025. The provision for credit losses for the three and six months ended June 30, 2026 is primarily reflective of loan growth and net loan charge-offs of $55.0 million and $263.5 million, respectively. Charge-offs for the six months ended June 30, 2026 included $126.4 million for the remaining balance of the Leucadia Asset Management LLC loan and $26.1 million from the specific reserve previously established on the Cantor Group V, LLC loan. Non-interest Income The following table presents a summary of non-interest income: Three Months Ended June 30, Increase (Decrease) Six Months Ended June 30, Increase (Decrease) 2026 2025 2026 2025 (in millions) Service charges and fees $ 63.1 $ 39.7 $ 23.4 $ 151.6 $ 80.2 $ 71.4 Net gain on mortgage loan origination and sale activities 53.4 39.4 14.0 126.1 88.9 37.2 Net loan servicing revenue 31.3 38.3 (7.0) 30.0 60.1 (30.1) Income from bank owned life insurance 10.8 11.0 (0.2) 21.5 22.4 (0.9) Gain on sales of investment securities 3.0 11.4 (8.4) 53.5 13.5 40.0 Fair value gain adjustments, net 12.8 0.1 12.7 15.9 1.1 14.8 Income (loss) from equity investments 11.9 2.9 9.0 25.2 (1.9) 27.1 Other income 12.5 5.5 7.0 27.6 11.4 16.2 Total non-interest income $ 198.8 $ 148.3 $ 50.5 $ 451.4 $ 275.7 $ 175.7 Total non-interest income for the three months ended June 30, 2026 increased $50.5 million from the same period in 2025. This growth was primarily attributable to service charges and fees, net gain on mortgage loan origination and sales activities, and net fair value gain adjustments. Service charges and fees rose by $23.4 million, driven by higher disbursement and other commercial banking fees. Net gain on mortgage loan origination and sale activities increased by $14.0 million, primarily reflecting production revenue growth from higher volumes and margins, partially offset by lower secondary revenue due to increased market volatility. Net fair value gain adjustments increased $12.7 million, primarily driven by covered call options and valuation increases on interest rate contracts and equity securities. These increases were partially offset by decreases of $8.4 million in gain on sales of investment securities, primarily due to lower securities sales volume, and $7.0 million in net loan servicing revenue, largely reflecting changes in the fair value of MSRs and higher amortization expense, partially offset by higher servicing revenue from growth in the Company's servicing portfolio. 72 Total non-interest income for the six months ended June 30, 2026 increased $175.7 million from the same period in 2025 primarily due to higher service charges and fees, gain on sales of investment securities, net gain on mortgage loan origination and sale activities, and income from equity investments. Service charges and fees rose by $71.4 million, driven by higher commercial banking, disbursements, and unused commitment fees. Gain on sales of investment securities increased $40.0 million, reflecting a series of security sales executed by management during the first quarter of 2026. Net gain on mortgage loan origination and sale activities increased $37.2 million, as discussed in the preceding paragraph. Income from equity investments increased $27.1 million, which was primarily driven by a loss on a solar investment in the second quarter of 2025 that did not recur and gains on warrant valuations. These increases were partially offset by a $30.1 million decrease in net loan servicing revenue, as discussed in the preceding paragraph. Non-interest Expense The following table presents a summary of non-interest expense: Three Months Ended June 30, Increase (Decrease) Six Months Ended June 30, Increase (Decrease) 2026 2025 2026 2025 (in millions) Salaries and employee benefits $ 204.3 $ 179.9 $ 24.4 $ 409.8 $ 362.3 $ 47.5 Deposit costs 179.2 147.4 31.8 342.5 284.2 58.3 Data processing 52.1 45.0 7.1 105.2 90.2 15.0 Legal, professional, and directors' fees 32.8 25.3 7.5 63.4 54.2 9.2 Insurance 28.3 37.4 (9.1) 53.0 75.3 (22.3) Occupancy 21.1 16.9 4.2 40.3 34.1 6.2 Loan servicing expenses 17.6 20.1 (2.5) 34.3 36.5 (2.2) Loan acquisition and origination expenses 8.8 5.8 3.0 16.7 11.0 5.7 Business development and marketing 8.3 6.1 2.2 17.8 12.0 5.8 Other expense 30.8 30.8 — 74.7 55.3 19.4 Total non-interest expense $ 583.3 $ 514.7 $ 68.6 $ 1,157.7 $ 1,015.1 $ 142.6 Total non-interest expense for the three months ended June 30, 2026 increased $68.6 million from the same period in 2025, primarily due to higher deposit costs and salaries and employee benefits. Deposit costs increased $31.8 million driven by higher average ECR balances, which increased approximately $6.0 billion to $31.6 billion. Salaries and employee benefits rose by $24.4 million, reflecting higher average salaries and headcount. Total non-interest expense for the six months ended June 30, 2026 increased $142.6 million from the same period in 2025, primarily due to higher deposit costs, salaries and employee benefits, other expense, and data processing expenses. Deposit costs increased $58.3 million, driven by an increase of approximately $5.6 billion in average ECR related deposit balances to $30.5 billion. Salaries and employee benefits rose by $47.5 million, reflecting higher average salaries and headcount. Other expense increased $19.4 million, primarily from costs associated with operating OREO properties and supporting growth in the Company's disbursements business. Data processing expenses increased $15.0 million due to higher software-related costs. These increases were partially offset by a reduction in insurance expense of $22.3 million, driven by lower FDIC assessment fees. Income Taxes The Company's effective tax rate was 19.0% and 18.4% for the three months ended June 30, 2026 and 2025, respectively, and 18.7% and 18.8% for the six months ended June 30, 2026 and 2025, respectively. The increase in the effective tax rate for the three months ended June 30, 2026 compared to the same period in 2025 was primarily attributable to an increase in pretax income and a decrease in investment tax credits. For the six months ended June 30, 2026 and 2025, the effective tax rate remained substantially consistent. 73 Business Segment Results The Company's operating segments are aggregated with a focus on products and services offered and consist of three reportable segments: •Commercial: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry. •Consumer Related: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking. •Corporate & Other: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to other reportable segments, and inter-segment eliminations. The following tables present selected reportable segment information: Consolidated Company Commercial Consumer Related Corporate & Other At June 30, 2026: (in millions) Loans HFI, net of deferred fees and costs $ 60,949 $ 36,153 $ 24,796 $ — Deposits 81,874 31,220 44,619 6,035 At December 31, 2025: Loans HFI, net of deferred fees and costs $ 58,677 $ 34,784 $ 23,893 $ — Deposits 77,159 30,806 40,466 5,887 Three Months Ended June 30, 2026: (in millions) Income (loss) before provision for income taxes $ 332.0 $ 172.6 $ 254.3 $ (94.9) Six Months Ended June 30, 2026: Income (loss) before provision for income taxes $ 563.3 $ 201.9 $ 478.1 $ (116.7) Three Months Ended June 30, 2025: Income (loss) before provision for income taxes $ 291.3 $ 154.6 $ 183.3 $ (46.6) Six Months Ended June 30, 2025: Income (loss) before provision for income taxes $ 537.7 $ 301.1 $ 347.4 $ (110.8) BALANCE SHEET ANALYSIS Total assets increased $5.9 billion, or 6.4%, to $98.7 billion at June 30, 2026, compared to $92.8 billion at December 31, 2025. Higher deposit levels supported an increase in cash of $2.3 billion, and also funded HFI and HFS loan growth. Loans HFI increased $2.3 billion, or 3.9%, to $60.9 billion as of June 30, 2026, compared to $58.7 billion as of December 31, 2025. By loan type, commercial and industrial, residential, and construction and land development loans increased $1.8 billion, $396 million, and $186 million, respectively, from December 31, 2025. Loans HFS increased $849 million from $3.5 billion as of December 31, 2025 primarily due to an increase in government-insured or guaranteed and agency-conforming mortgage loans. Total liabilities increased $5.7 billion to $90.6 billion at June 30, 2026, compared to $84.8 billion at December 31, 2025 as total deposits increased $4.7 billion, or 6.1%, to $81.9 billion. By type, the increase in deposits from December 31, 2025 was driven by increases of $3.5 billion in non-interest bearing deposits, $843 million in interest bearing demand deposits, $300 million in savings and money market accounts, and $105 million in certificates of deposit. Other borrowings increased $996 million from December 31, 2025, primarily due to an increase in overnight borrowings. Total equity of $8.1 billion at June 30, 2026 increased $189 million, or 2.4%, from December 31, 2025 primarily due to net income of $458.0 million for the six months ended June 30, 2026. This increase was partially offset by unrealized fair value losses on AFS securities, recorded net of tax in OCI, share repurchases, and quarterly dividends to common and preferred stockholders totaling $112.5 million, including REIT preferred stockholders. 74 Investment securities Debt securities are classified at the time of acquisition as either HTM, AFS, or trading based upon various factors, including asset/liability management strategies, liquidity and profitability objectives, and regulatory requirements. HTM securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. AFS securities are carried at fair value with unrealized gains or losses on these securities recorded in AOCI in stockholders' equity, net of tax. Trading securities are reported at fair value, with unrealized gains and losses on these securities included in current period earnings. The Company's investment securities portfolio may be utilized as collateral for borrowings, required collateral for public deposits and repurchase agreements, and to manage liquidity, capital, and interest rate risk. The following table summarizes the carrying value of the Company's investment securities portfolio: June 30, 2026 December 31, 2025 Increase (Decrease) (in millions) Debt securities CLO $ 3,221 $ 2,747 $ 474 Commercial MBS issued by GSEs and GNMA 514 635 (121) Corporate debt securities 222 297 (75) Private label residential MBS 1,295 1,204 91 Residential MBS issued by GSEs and GNMA 7,428 7,230 198 Tax-exempt 2,311 2,221 90 U.S. Treasury securities 5,494 5,970 (476) Other 71 68 3 Total debt securities $ 20,556 $ 20,372 $ 184 Equity securities CRA investments $ 28 $ 27 $ 1 Preferred stock 52 52 — Total equity securities $ 80 $ 79 $ 1 The increase in total debt securities of $184 million from December 31, 2025 was primarily driven by net purchases of CLOs and Residential MBS issued by GSEs and GNMA, partially offset by sales of U.S. Treasury securities and commercial MBS during the six months ended June 30, 2026 as the Company sold securities to secure gains. Loans HFS The Company purchases and originates residential mortgage loans that are held for sale or securitization through its AmeriHome mortgage banking business channel. As of June 30, 2026, loans HFS totaled $4.3 billion, an increase of $849 million, or 24.3%, compared to $3.5 billion at December 31, 2025. The increase in loans HFS from December 31, 2025 primarily related to an increase in government-insured or guaranteed and agency-conforming mortgage loans. 75 Loans HFI The table below summarizes the distribution of the Company’s held for investment loan portfolio: June 30, 2026 December 31, 2025 Increase (Decrease) (in millions) Mortgage finance $ 7,405 $ 7,271 $ 134 Municipal & nonprofit 1,716 1,648 68 Tech & innovation 4,488 4,128 360 Equity fund resources 1,457 1,233 224 Other commercial and industrial 14,951 13,789 1,162 CRE - owner occupied 1,469 1,533 (64) Hotel franchise finance 4,582 4,185 397 Other CRE - non-owner occupied 5,969 6,455 (486) Residential 13,909 13,403 506 Residential - EBO 752 828 (76) Construction and land development 4,072 4,043 29 Other 179 161 18 Total loans HFI 60,949 58,677 2,272 Allowance for credit losses (487) (461) (26) Total loans HFI, net of allowance $ 60,462 $ 58,216 $ 2,246 Loans classified as HFI are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts on acquired and purchased loans, and an ACL. Net deferred loan fees of $127 million and $120 million reduced the carrying value of loans as of June 30, 2026 and December 31, 2025, respectively. Net unamortized purchase premiums on acquired and purchased loans of $200 million and $186 million increased the carrying value of loans as of June 30, 2026 and December 31, 2025, respectively. Concentrations of Lending Activities The Company monitors concentrations of lending activities at the product and borrower relationship level. As of June 30, 2026 and December 31, 2025, no borrower relationships at both the commitment and funded loan level exceeded 5% of total loans HFI. Commercial and industrial loans made up 49% and 48% of total loans HFI as of June 30, 2026 and December 31, 2025, respectively. A subset of commercial and industrial loans consist of loans to NDFIs, which, as defined by regulatory guidance, are entities that provide services similar to traditional banks but do not accept deposits from the general public and are not regulated by Federal banking agencies. The following table presents the balance of loans to NDFIs: June 30, 2026 December 31, 2025 Amount Percent of Loans to NDFIs Percent of Total HFI Loans Amount Percent of Loans to NDFIs Percent of Total HFI Loans (dollars in millions) Mortgage credit intermediaries $ 10,896 68.9 % 17.9 % $ 10,101 68.8 % 17.2 % Business credit intermediaries 3,459 21.9 5.6 3,340 22.8 5.7 Private equity funds 1,457 9.2 2.4 1,231 8.4 2.1 Total loans to NDFIs $ 15,812 100.0 % 25.9 % $ 14,672 100.0 % 25.0 % 76 In addition, the Company's loan portfolio includes significant credit exposure to the CRE market as CRE related loans accounted for approximately 26% and 27% of total loans at June 30, 2026 and December 31, 2025, respectively. Non-owner occupied CRE loans are loans where the primary source of repayment is rental income generated from the collateral property. Owner occupied CRE loans are loans secured by owner occupied non-farm nonresidential properties where the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. These CRE loans are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties. The following tables present the composition by property type and weighted average LTV of the Company’s CRE non-owner occupied loans: June 30, 2026 Amount Percent of CRE-Non OO Percent of Total HFI Loans Weighted Average LTV (1) (dollars in millions) Hotel $ 4,958 48.1 % 8.1 % 54.0 % Office 2,139 20.8 3.5 57.7 Retail 678 6.6 1.1 61.7 Multifamily 649 6.3 1.1 51.8 Industrial 474 4.6 0.8 45.3 Life sciences 418 4.1 0.7 52.7 Data center 268 2.6 0.4 51.7 Time share 263 2.5 0.4 45.4 Other 454 4.4 0.8 48.0 Total CRE - non-owner occupied $ 10,301 100.0 % 16.9 % 54.1 % (1) If current appraisals are not available, weighted average LTV is based on the most recent available information. December 31, 2025 Amount Percent of CRE-Non OO Percent of Total HFI Loans Weighted Average LTV (1) (dollars in millions) Hotel $ 4,546 44.0 % 7.7 % 52.0 % Office 2,142 20.7 3.6 60.1 Retail 758 7.3 1.3 51.8 Multifamily 748 7.2 1.3 55.9 Life sciences 478 4.6 0.8 52.5 Industrial 451 4.4 0.8 46.3 Time share 390 3.8 0.7 48.1 Data center 253 2.4 0.4 35.8 Other 574 5.6 1.0 50.5 Total CRE - non-owner occupied $ 10,340 100.0 % 17.6 % 53.0 % (1) If current appraisals are not available, weighted average LTV is based on the most recent available information. The following table presents the Company’s CRE non-owner occupied loans by origination year as of June 30, 2026: Origination Year 2026 2025 2024 2023 2022 Prior Total (in millions) CRE - non-owner occupied $ 661 $ 1,330 $ 897 $ 1,122 $ 3,233 $ 3,058 $ 10,301 77 The following table presents the scheduled maturities of the Company’s CRE non-owner occupied loans as of June 30, 2026: (in millions) 2026 $ 2,221 2027 2,972 2028 1,870 2029 1,423 Thereafter 1,815 Total $ 10,301 Approximately $2.1 billion, or 3.5%, of total loans HFI consisted of CRE non-owner occupied office loans as of June 30, 2026, compared to $2.1 billion, or 3.6%, as of December 31, 2025. Of the non-owner occupied office loan balance as of June 30, 2026, $686 million is scheduled to mature in the remainder of 2026. These office loans primarily consist of shorter-term bridge loans that enable borrowers to reposition or redevelop projects with more modern standards attractive to in-office employers in today’s environment, including enhanced on-site amenities. The vast majority of these projects are located in suburban locations in the Company's core footprint states (Arizona, California, and Nevada), with central business district and midtown exposure totaling less than 1% and 10% of office loans as of June 30, 2026, respectively. The office loan portfolio largely consists of value-add loans that require significant up-front cash equity contributions from institutional sponsors and large regional and national developers. The properties underlying these loans have stable business trends and low vacancy rates. To a large extent, the financing structures of these loans do not carry junior liens or mezzanine debt, which enables maximum flexibility when working with clients and sponsors. In addition to adhering to conservative underwriting standards, asset-specific credit risk is mitigated through continued sponsor support of projects by re-appraisal rights of the Company, re-margining requirements and ongoing debt service, and debt yield covenants. As of June 30, 2026 and December 31, 2025, 13% and 14% of the Company's CRE loans, excluding construction and land loans, were owner occupied, respectively, with substantially all of these loans secured by first liens and had an initial loan-to-value ratio of generally not more than 75%. Non-performing Assets Non-performing loans increased $101 million, or 14.9%, to $781 million at June 30, 2026, from $680 million at December 31, 2025. The increase in non-performing loans is primarily due to the migration of a life science laboratory/office CRE loan, as previously disclosed, and purchase of $64 million of loans with more-than-insignificant deterioration in credit quality. June 30, 2026 December 31, 2025 (dollars in millions) Total nonaccrual loans (1) $ 562 $ 500 Loans past due 90 days or more on accrual status (2) 55 66 Accruing restructured loans 164 114 Total nonperforming loans $ 781 $ 680 Other assets acquired through foreclosure, net $ 126 $ 137 Nonaccrual HFI loans to funded HFI loans 0.92 % 0.85 % Loans past due 90 days or more on accrual status to funded loans HFI (2) 0.09 0.11 (1)Includes loan modifications to borrowers experiencing financial difficulty of $56 million and $89 million at June 30, 2026 and December 31, 2025, respectively. (2)Excludes government guaranteed residential mortgage loans of $248 million and $290 million at June 30, 2026 and December 31, 2025, respectively. Interest income that would have been recorded under the original terms of nonaccrual loans was $10.5 million and $8.0 million for the three months ended June 30, 2026 and 2025, respectively, and $19.7 million and $16.0 million for the six months ended June 30, 2026 and 2025, respectively. 78 The composition of nonaccrual loans HFI by loan portfolio segment were as follows: June 30, 2026 Nonaccrual Balance Percent of Nonaccrual Balance Percent of Total Loans HFI (dollars in millions) Tech & innovation $ 13 2.3 % 0.02 % Equity fund resources 1 0.2 0.00 Other commercial and industrial 142 25.3 0.23 CRE - owner occupied 1 0.2 0.00 Other CRE - non-owner occupied 279 49.6 0.46 Residential 14 2.5 0.02 Construction and land development 109 19.4 0.18 Other 3 0.5 0.01 Total nonaccrual loans $ 562 100.0 % 0.92 % December 31, 2025 Nonaccrual Balance Percent of Nonaccrual Balance Percent of Total Loans HFI (dollars in millions) Municipal & nonprofit $ 4 0.8 % 0.01 % Tech & innovation 20 4.0 0.03 Equity fund resources 1 0.2 0.00 Other commercial and industrial 120 24.0 0.20 CRE - owner occupied 3 0.6 0.01 Other CRE - non-owner occupied 228 45.6 0.38 Residential 12 2.4 0.02 Construction and land development 109 21.8 0.19 Other 3 0.6 0.01 Total nonaccrual loans $ 500 100.0 % 0.85 % Restructurings for Borrowers Experiencing Financial Difficulty The following tables present the amortized cost basis of loans HFI that were modified during the period by loan portfolio segment: Amortized Cost Basis at June 30, 2026 Term Extension Interest Rate Reduction Payment Delay Total % of Total Class of Financing Receivable Three Months Ended (dollars in millions) Other commercial and industrial $ — $ — $ 3 $ 3 0.0 % Other CRE - non-owner occupied 33 — — 33 0.6 Total $ 33 $ — $ 3 $ 36 0.1 % Amortized Cost Basis at June 30, 2026 Term Extension Interest Rate Reduction Payment Delay Total % of Total Class of Financing Receivable Six Months Ended (dollars in millions) Other commercial and industrial $ 30 $ 2 $ 4 $ 36 0.2 % Other CRE - non-owner occupied 33 — — 33 0.6 Total $ 63 $ 2 $ 4 $ 69 0.1 % Amortized Cost Basis at June 30, 2025 Term Extension Interest Rate Reduction Payment Delay Total % of Total Class of Financing Receivable Three Months Ended (dollars in millions) Other commercial and industrial $ — $ — $ 1 $ 1 0.0% Total $ — $ — $ 1 $ 1 0.0% 79 Amortized Cost Basis at June 30, 2025 Term Extension Interest Rate Reduction Payment Delay Total % of Total Class of Financing Receivable Six Months Ended (dollars in millions) Tech & innovation $ 5 $ 1 $ 18 $ 24 0.7 % Other commercial and industrial — — 84 84 0.8 Other CRE - non-owner occupied 35 — 56 91 1.4 Construction and land development — — 39 39 0.9 Total $ 40 $ 1 $ 197 $ 238 0.4 % The performance of these modified loans is monitored for 12 months following the modification. As of June 30, 2026, modified loans of $164 million were current to 89 days delinquent and $56 million were on nonaccrual status. As of December 31, 2025, modified loans of $114 million were current to 89 days delinquent and $89 million were on nonaccrual status. In the normal course of business, the Company also modifies EBO loans, which are delinquent FHA, VA, or USDA insured or guaranteed loans repurchased under the terms of the GNMA MBS program and can be repooled or resold when loans are brought current either through the borrower's reperformance or through successful completion of a loss mitigation retention solution. During the three and six months ended June 30, 2026, the Company completed modifications of EBO loans with an amortized cost of $222 million and $307 million, respectively. During the three and six months ended June 30, 2025, the Company completed modifications of EBO loans with an amortized cost of $142 million and $287 million, respectively. These modifications consisted of term extensions, payment delays, and interest rate reductions. Certain of these loans were repooled or resold after modification and are no longer included in the pool of loan modifications being monitored for future performance. As of June 30, 2026, modified EBO loans consisted of $71 million in loans that were current to 89 days delinquent and $43 million in loans 90 days or more delinquent. As of December 31, 2025, modified EBO loans consisted of $27 million in loans that were current to 89 days delinquent and $123 million in loans 90 days or more delinquent. Allowance for Credit Losses on Loans HFI The ACL consists of an ACL on loans and on unfunded loan commitments. The ACL on AFS and HTM securities is estimated separately from loans and is discussed within the Investment Securities section. The following table summarizes the allocation of the ACL on loans HFI by loan portfolio segment: June 30, 2026 December 31, 2025 Allowance for credit losses Percent of total allowance for credit losses Percent of loan type to total loans HFI Allowance for credit losses Percent of total allowance for credit losses Percent of loan type to total loans HFI (dollars in millions) Mortgage finance $ 6.1 1.3 % 12.2 % $ 5.5 1.2 % 12.4 % Municipal & nonprofit 15.7 3.2 2.8 13.0 2.8 2.8 Tech & innovation 52.2 10.6 7.4 44.8 9.7 7.0 Equity fund resources 4.7 1.0 2.4 2.6 0.6 2.1 Other commercial and industrial 176.7 36.3 24.5 184.7 40.2 23.6 CRE - owner occupied 3.1 0.6 2.4 3.4 0.7 2.6 Hotel franchise finance 42.5 8.7 7.5 37.7 8.2 7.1 Other CRE - non-owner occupied 125.6 25.8 9.8 110.4 24.0 11.0 Residential 23.1 4.7 22.8 23.7 5.1 22.8 Residential - EBO — — 1.2 — — 1.4 Construction and land development 35.4 7.3 6.7 32.3 7.0 6.9 Other 2.3 0.5 0.3 2.5 0.5 0.3 Total $ 487.4 100.0 % 100.0 % $ 460.6 100.0 % 100.0 % During the three months ended June 30, 2026 and 2025, annualized net loan charge-offs to average loans outstanding were 0.37% and 0.22%, respectively. In addition to the ACL on funded loans HFI, the Company maintains a separate ACL related to off-balance sheet credit exposures, including unfunded loan commitments. This allowance balance totaled $52.0 million and $49.6 million at June 30, 2026 and December 31, 2025, respectively, and is included in Other liabilities on the Consolidated Balance Sheet. 80 Problem Loans The Company classifies loans consistent with federal banking regulations using a nine category grading system. The following table presents information regarding potential and actual problem loans, consisting of loans graded as Special Mention, Substandard, Doubtful, and Loss, that are still performing and are not individually evaluated for credit losses: June 30, 2026 Number of Loans Problem Loan Balance Percent of Problem Loan Balance Percent of Total Loans HFI (dollars in millions) Municipal & nonprofit 4 $ 35 4.6 % 0.06 % Tech & innovation 21 114 15.1 0.19 Other commercial and industrial 114 299 39.6 0.49 CRE - owner occupied 15 23 3.1 0.04 Hotel franchise finance 2 75 9.9 0.12 Other CRE - non-owner occupied 10 131 17.4 0.21 Residential 55 34 4.5 0.06 Construction and land development 3 41 5.4 0.07 Other 53 3 0.4 0.00 Total 277 $ 755 100.0 % 1.24 % December 31, 2025 Number of Loans Problem Loan Balance Percent of Problem Loan Balance Percent of Total Loans HFI (dollars in millions) Municipal & nonprofit 1 $ 3 0.4 % 0.01 % Tech & innovation 19 174 21.9 0.30 Equity fund resources 1 1 0.1 0.00 Other commercial and industrial 102 274 34.5 0.46 CRE - owner occupied 21 35 4.4 0.06 Hotel franchise finance 1 45 5.7 0.08 Other CRE - non-owner occupied 10 192 24.2 0.33 Residential 79 47 5.9 0.08 Construction and land development 2 20 2.5 0.03 Other 35 3 0.4 0.00 Total 271 $ 794 100.0 % 1.35 % The classification of certain loans as of December 31, 2025, was revised to conform to the loan segmentation presented elsewhere in this Quarterly Report on Form 10‑Q. Mortgage Servicing Rights The fair value of the Company's MSRs related to residential mortgage loans totaled $1.5 billion as of June 30, 2026 and December 31, 2025. The following is a summary of the UPB of loans underlying the Company's MSR portfolio by type: June 30, 2026 December 31, 2025 (in millions) FNMA and FHLMC $ 37,621 $ 47,881 GNMA 32,868 25,017 Non-agency 5,193 4,642 Total unpaid principal balance of loans $ 75,682 $ 77,540 81 Other Assets Acquired through Foreclosure Other assets acquired through foreclosure consist primarily of properties acquired through, or in-lieu-of, foreclosure. At June 30, 2026 and December 31, 2025, these assets totaled $126 million and $137 million, respectively, net of a valuation allowance of $4.6 million and $7.6 million, as of each respective date, which consisted primarily of office properties. The Company held 22 properties at June 30, 2026, compared to 15 at December 31, 2025. The decrease in the balance of other assets acquired through foreclosure from December 31, 2025 was primarily related to the transfer of one property with a carrying value of $39 million to Premises and equipment due to a change in management intent. This decrease was partially offset by the acquisition of one CRE office property as the Company advanced nonperforming loans through its standard credit resolution process, with the goal of stabilizing leasing and occupancy, improving rental rates, and funding improvements from the net operating income generated by these properties prior to sale. Goodwill and Other Intangible Assets Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill and intangible assets totaling $644 million and $649 million at June 30, 2026 and December 31, 2025, respectively. The Company performs its annual goodwill and intangible assets impairment tests as of October 1 each year, or more often if events or circumstances indicate the carrying value may not be recoverable. During the three and six months ended June 30, 2026 and 2025, there were no events or circumstances that indicated an interim impairment test of goodwill or other intangible assets was necessary. Deferred Tax Assets As of June 30, 2026, the net DTA balance totaled $425 million, an increase of $76 million from $349 million at December 31, 2025. The overall increase in the net DTA was primarily the result of an increase in credit carryovers and a decrease in the fair market value of AFS securities. The Company had no deferred tax valuation allowance as of June 30, 2026 and December 31, 2025. Deposits Deposits are the primary source for funding the Company's asset growth. The total ending balance of deposits increased to $81.9 billion at June 30, 2026, from $77.2 billion at December 31, 2025, an increase of $4.7 billion, or 6.1%. By deposit type, the increase in deposits is attributable to increases of $3.5 billion in non-interest bearing deposits, $843 million in interest bearing demand deposits, $300 million in savings and money market accounts, and $105 million in certificates of deposit. WAB is a participant in reciprocal deposit networks, such as IntraFi Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. At June 30, 2026, the Company had $15.2 billion of these reciprocal deposits, compared to $14.4 billion at December 31, 2025. At June 30, 2026 and December 31, 2025, the Company also had wholesale brokered deposits of $5.3 billion and $5.4 billion, respectively. The average balances and weighted average rates paid on deposits are presented below: Three Months Ended June 30, 2026 2025 Average Balance Rate Average Balance Rate (dollars in millions) Interest bearing demand accounts $ 19,316 2.13 % $ 15,707 2.48 % Savings and money market accounts 24,995 2.80 21,736 3.15 Certificates of deposit 9,873 3.80 10,084 4.38 Total interest bearing deposits 54,184 2.74 47,527 3.19 Non-interest bearing deposits 29,351 — 23,569 — Total deposits $ 83,535 1.78 % $ 71,096 2.13 % 82 Six Months Ended June 30, 2026 2025 Average Balance Rate Average Balance Rate (dollars in millions) Interest bearing demand accounts $ 19,132 2.13 % $ 15,788 2.52 % Savings and money market accounts 24,804 2.79 21,473 3.15 Certificates of deposit 9,799 3.83 10,051 4.49 Total interest bearing deposits 53,735 2.74 47,312 3.22 Non-interest bearing deposits 28,357 — 22,837 — Total deposits $ 82,092 1.80 % $ 70,149 2.17 % In addition, certain customers with non-interest-bearing accounts receive earnings credits that can be used to offset applicable bank charges, and in certain cases, loan interest. The Company also pays referral fees for certain interest bearing or non-interest bearing deposits that are referred to the Bank. Deposits for which the Company provides account holders with excess earnings credits and referral fees totaled $29.9 billion and $25.1 billion at June 30, 2026 and December 31, 2025, respectively. The below table presents the income statement classification for total earnings credit and referral costs incurred on these deposits: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Income statement line item Interest income (1) $ 52.5 $ 61.3 $ 101.2 $ 119.4 Service charges and fees (1) 8.4 4.4 16.7 8.6 Deposit costs (2) 173.3 142.8 330.5 272.7 Total earnings credit and referral costs $ 234.2 $ 208.5 $ 448.4 $ 400.7 (1) Earnings credits recorded as a reduction to Interest income and Service charges and fees. (2) Deposit costs also included other deposit related costs of $5.9 million and $4.6 million for the three months ended June 30, 2026 and 2025, respectively, and $12.0 million and $11.5 million for the six months ended June 30, 2026 and 2025, respectively, primarily associated with reciprocal deposits. Other Borrowings Short-Term Borrowings The Company utilizes short-term borrowed funds to support short-term liquidity needs. The majority of these short-term borrowed funds consist of advances from the FHLB, repurchase agreements, and federal funds purchased from correspondent banks or the FHLB. The Company’s borrowing capacity with the FHLB is determined based on collateral pledged, generally consisting of securities and loans. In addition, the Company has repurchase facilities, collateralized by securities or loans sold under agreements to repurchase, including assets sold under agreements to repurchase, which are reflected at the amount of cash received in connection with the transaction, and may require additional collateral based on the fair value of the underlying assets. Total short-term borrowings increased $909 million to $4.8 billion at June 30, 2026, from $3.8 billion at December 31, 2025, driven by an increase in short-term FHLB advances. Long-Term Borrowings The Company's long-term borrowings consist of long-term FHLB borrowings and credit linked notes, inclusive of issuance costs. Total long-term borrowings increased $87 million to $1.5 billion at June 30, 2026, from $1.4 billion at December 31, 2025, driven primarily by an increase in long-term FHLB advances. 83 Equity Total equity of $8.1 billion at June 30, 2026 increased $189 million, or 2.4%, from December 31, 2025. This increase was primarily attributable to net income of $458.0 million for the six months ended June 30, 2026, partially offset by unrealized fair value losses on AFS securities of $106.8 million, recorded net of tax in OCI, share repurchases, and quarterly dividends totaling $112.5 million to common and preferred stockholders, including REIT preferred stockholders. During the three and six months ended June 30, 2026, the Company repurchased 31,924 and 729,938 shares of its common stock, respectively, at a weighted average price per share of $71.88 and $71.62, respectively. Total payments, inclusive of commissions, fees, and taxes, were $2.3 million and $52.6 million for the three and six months ended June 30, 2026, respectively. There were no share repurchases during the comparable periods in 2025. As of June 30, 2026, the aggregate remaining approved amount under the Company's $300 million stock repurchase program was approximately $179.6 million. 84 Capital Resources The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items (discussed in "Note 15. Commitments and Contingencies" to the Unaudited Consolidated Financial Statements) as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As of June 30, 2026 and December 31, 2025, the Company and the Bank exceeded the capital levels necessary to be classified as well-capitalized, as defined by the various banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables: Total Capital Tier 1 Capital Risk-Weighted Assets Tangible Average Assets Total Capital Ratio Tier 1 Capital Ratio Tier 1 Leverage Ratio Common Equity Tier 1 (dollars in millions) June 30, 2026 WAL $ 9,354 $ 7,936 $ 66,210 $ 98,440 14.1 % 12.0 % 8.1 % 11.0 % WAB 8,886 7,945 66,063 98,334 13.5 12.0 8.1 11.6 Well-capitalized ratios 10.0 8.0 5.0 6.5 Minimum capital ratios 8.0 6.0 4.0 4.5 December 31, 2025 WAL $ 9,185 $ 7,672 $ 63,408 $ 94,007 14.5 % 12.1 % 8.2 % 11.0 % WAB 8,667 7,750 63,395 93,891 13.7 12.2 8.3 11.8 Well-capitalized ratios 10.0 8.0 5.0 6.5 Minimum capital ratios 8.0 6.0 4.0 4.5 The Company and the Bank are also subject to liquidity and other regulatory requirements as administered by the federal banking agencies. These agencies have broad powers and at their discretion, could limit or prohibit the Company's payment of dividends, payment of certain debt service and issuance of capital stock and debt as they deem appropriate and as such, actions by the agencies could have a direct material effect on the Company’s business and financial statements. The Company is also required to maintain specified levels of capital to remain in good standing with certain federal government agencies, including FNMA, FHLMC, GNMA, and HUD. These capital requirements are generally tied to the unpaid balances of loans included in the Company's servicing portfolio or loan production volume. Noncompliance with these capital requirements can result in various remedial actions up to, and including, removing the Company's ability to sell loans to and service loans on behalf of the respective agency. The Company believes that it is in compliance with these requirements as of June 30, 2026. 85 Critical Accounting Estimates Critical accounting estimates are defined as those that are reflective of significant judgments and uncertainties and could potentially result in materially different results under different assumptions and conditions. The critical accounting estimates upon which the Company's financial condition and results of operations depend, and which involve the most complex subjective decisions or assessments, are included in the discussion entitled "Critical Accounting Policies" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and all amendments thereto, as filed with the SEC. There were no material changes to the critical accounting policies disclosed in the Annual Report on Form 10-K. Liquidity Liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates. Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in the Company's business operations or unanticipated events. The ability to have readily available funds sufficient to repay fully maturing liabilities is of primary importance to depositors, creditors, and regulators. The Company's liquidity, represented by cash and amounts due from banks, loans HFS, and non-pledged marketable securities, is a result of the Company's operating, investing, and financing activities and related cash flows. The Company actively monitors and manages liquidity, and no less than quarterly will estimate probable liquidity needs on a 12-month horizon. Liquidity needs can also be met through short-term borrowings or the disposition of short-term assets. The Company has borrowing capacity with the FHLB and FRB from pledged loans and securities and uncommitted funds under warehouse borrowing repurchase agreements. The borrowing capacity, outstanding borrowings, and available credit as of June 30, 2026 are presented in the following table: June 30, 2026 (in millions) FHLB: Borrowing capacity $ 14,006 Outstanding borrowings 5,800 Letters of credit 1,869 Total available credit $ 6,337 FRB: Borrowing capacity $ 18,362 Outstanding borrowings — Total available credit $ 18,362 Warehouse borrowings: Borrowing capacity $ 2,050 Outstanding borrowings — Total available credit $ 2,050 In addition to the funding sources above, the Company may utilize securities repurchase agreements and unsecured federal funds lines to meet its liquidity requirements. There were no outstanding borrowings on the Company's unsecured federal funds lines of credit as of June 30, 2026. The Company has a formal liquidity policy and, in the opinion of management, its liquid assets are considered adequate to meet financial obligations and support client activity during normal and stressed operating conditions. At June 30, 2026, there were $23.1 billion in liquid assets, comprised of $4.8 billion in cash on deposit at the FRB and $18.3 billion in securities not currently used as collateral for borrowings or other purposes. At December 31, 2025, the Company maintained $19.8 billion in liquid assets, comprised of $1.6 billion in cash on deposit at the FRB and $18.2 billion in liquid securities not currently used as collateral for borrowings or other purposes. The Parent maintains liquidity that would be sufficient to fund its operations and certain non-bank affiliate operations for an extended period should funding from normal sources be disrupted. In the Company's analysis of Parent liquidity, it is assumed the Parent is unable to generate funds from additional debt or equity issuances, receives no dividend income from subsidiaries and does not pay dividends to stockholders, while continuing to make non-discretionary payments needed to maintain 86 operations and repayment of contractual principal and interest payments owed by the Parent and affiliated companies. Under this scenario, the amount of time the Parent and its non-bank subsidiary can operate and meet all obligations before the current liquid assets are exhausted is considered as part of the Parent liquidity analysis. Management believes the Parent maintains adequate liquidity capacity to operate without additional funding from new sources for over twelve months. WAB maintains sufficient funding capacity to address large increases in funding requirements, such as deposit outflows. This capacity is comprised of liquidity derived from a reduction in asset levels and various secured funding sources. On a long-term basis, the Company’s liquidity will be met by changing the relative distribution of its asset portfolios (for example, by reducing investment or loan volumes, or selling or encumbering assets). Further, the Company can increase liquidity by soliciting higher levels of deposit accounts through promotional activities and/or borrowing from correspondent banks, the FHLB of San Francisco, and the FRB. At June 30, 2026, the Company's long-term liquidity needs primarily relate to funds required to support loan originations, commitments, and deposit withdrawals, which can be met by cash flows from investment payments and maturities, and investment sales, if necessary. The Company’s liquidity is comprised of three primary classifications: 1) cash flows from operating activities; 2) cash flows used in investing activities; and 3) cash flows provided by financing activities. Net cash provided by or used in operating activities consists primarily of net income, adjusted for changes in certain other asset and liability accounts and certain non-cash income and expense items, such as the provision for credit losses, investment and other amortization and depreciation. For the six months ended June 30, 2026 and 2025, net cash used in operating activities totaled $863.3 million and $2.0 billion, respectively. The Company's primary investing activities are the origination of real estate and commercial loans, the collection of repayments on these loans, and the purchase and sale of securities. The Company's net cash used in investing activities has primarily been influenced by its loan and securities activities. During the six months ended June 30, 2026 and 2025, the Company's cash balance decreased by $2.6 billion and $2.4 billion, respectively, from a net increase in loans. In addition, net purchases of investment securities drove net cash outflows of $270 million and $3.4 billion during the six months ended June 30, 2026 and 2025, respectively. Net cash provided by financing activities was impacted significantly by deposit levels. During the six months ended June 30, 2026, net deposits increased $4.7 billion, compared to an increase of $4.8 billion during the six months ended June 30, 2025. Fluctuations in core deposit levels may increase the Company's need for liquidity as certificates of deposit mature or are withdrawn before maturity, and as non-maturity deposits, such as checking and savings account balances, are withdrawn. Additionally, the Company is exposed to the risk that customers with large deposit balances will withdraw all or a portion of such deposits, due in part to the FDIC limitations on the amount of insurance coverage provided to depositors. To partially mitigate uninsured deposit risk, the Company participates in reciprocal deposit programs, such as CDARS and ICS, which allow an individual customer to invest up to $50 million and $285 million, respectively, through one participating financial institution or, a combined total of $335 million per individual customer, with the entire amount being covered by FDIC insurance. As of June 30, 2026, the Company has $2.1 billion of CDARS and $11.8 billion of ICS deposits. As of June 30, 2026, the Company had $5.3 billion of wholesale brokered deposits outstanding. Brokered deposits are generally considered to be deposits that have been received from a third party who is engaged in the business of placing deposits on behalf of others. A traditional deposit broker will direct deposits to the banking institution offering the highest interest rate available. Federal banking laws and regulations place restrictions on depository institutions regarding brokered deposits because of the general concern these deposits are not relationship based and are at a greater risk of being withdrawn and placed on deposit at another institution offering a higher interest rate, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts. Federal and state banking regulations place certain restrictions on dividends paid. The total amount of dividends which may be paid at any date is generally limited to the retained earnings of the bank. Dividends paid by WAB to the Parent would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the three and six months ended June 30, 2026, WAB paid dividends to the Parent totaling $190 million and $340 million, respectively. Subsequent to June 30, 2026, WAB paid dividends to the Parent of $210 million. 87