Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 91

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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)Balance, end of period$1,213 $1,011 $1,213 $1,011 September 30, 2025December 31, 2024(in millions)Unpaid principal balance of mortgage loans serviced for others$66,052 $61,089 Changes in the fair value of MSRs are recorded as Net loan servicing revenue in the Consolidated Income Statement. Due to the regulatory capital impact of MSRs on capital ratios, the Company sells certain MSRs and related servicing advances in the normal course of business. The Company may also sell excess servicing spread related to certain mortgage loans serviced by the Company. During the three and nine months ended September 30, 2025, the Company recognized a net gain of $1.5 million and $8.1 million on MSR sales, respectively. The UPB of loans underlying these sales totaled $6.0 billion and $37.2 billion for the three and nine months ended September 30, 2025, respectively. During the three and nine months ended September 30, 2024, the Company recognized a net gain of $1.5 million and $5.0 million on MSR sales, respectively. The UPB of loans underlying these sales totaled $15.5 billion and $42.8 billion for the three and nine months ended September 30, 2024, respectively. As of September 30, 2025 and December 31, 2024, the Company had a remaining receivable balance of $35 million and $37 million, respectively, related to holdbacks on MSR sales for servicing transfers, which are recorded in Other assets on the Consolidated Balance Sheet.The Company receives loan servicing fees, net of subservicing costs, based on the UPB of the underlying loans. Loan servicing fees are collected from payments made by borrowers. The Company may receive other remuneration from rights to various borrower contracted fees, such as late charges, collateral reconveyance charges, and non-sufficient funds fees. Contractually specified servicing fees, late fees, and ancillary income associated with the Company's MSR portfolio totaled $55.0 million and $180.8 million for the three and nine months ended September 30, 2025, respectively, compared to $59.8 million and 

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$196.9 million for the respective periods in 2024. Early payoff fee income totaled $6.5 million and $17.0