Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 102

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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 the discount rate at 7.69%, which represents an implied credit spread of 3.40% plus three-month SOFR (4.29%). As of December 31, 2024, the Company estimated the discount rate at 7.43%, which was a 3.12% credit spread plus three-month SOFR (4.31%).The change in Level 3 assets and liabilities measured at fair value on a recurring basis included in income was as follows:Three Months Ended March 31, 2025MSRsIRLCs (1)(in millions)Balance, beginning of period$1,127 $(2)Purchases and additions260 5,742 Sales and payments(83)— Settlement of IRLCs upon acquisition or origination of loans HFS— (5,733)Change in fair value(20)6 Realization of cash flows(43)— Balance, end of period$1,241 $13 Changes in unrealized gains for the period (2)$(19)$13 Three Months Ended March 31, 2024MSRsIRLCs (1)(in millions)Balance, beginning of period$1,124 $18 Purchases and additions189 4,060 Sales and payments(156)— Settlement of IRLCs upon acquisition or origination of loans HFS— (4,067)Change in fair value60 (1)Realization of cash flows(39)— Balance, end of period$1,178 $10 Changes in unrealized gains for the period (2)$46 $10 (1)     IRLC asset and liability positions are presented net.(2)    Amounts recognized as part of non-interest income.

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The significant unobservable inputs used in the fair value measurements of these Level 3 assets and liabilities were as follows:March 31, 2025Asset/liabilityKey inputsRangeWeighted averageMSRs:Option adjusted spread (in basis points)142 - 248227 Conditional prepayment rate (1)8.8% - 20.5%15.2 %Recapture rate20.0% - 20.0%20.0 %Servicing fee rate (in basis points)25.0 - 56.534.9 Cost to service$75 - $95$82 IRLCs:Servicing fee multiple4.2 - 6.25