Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 167

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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24.8 0.23 CRE - owner occupied9 7 1.4 0.01 Hotel franchise finance8 112 22.9 0.21 Other CRE - non-owner occupied9 136 27.8 0.25 Residential169 92 18.8 0.17 Other33 3 0.6 0.01 Total319 $489 100.0 %0.91 %

The increase in the problem loan balance from December 31, 2024 was largely attributable to a reduction in nonperforming collateral-dependent loans, which are now classified as performing loans.

Mortgage Servicing Rights

The fair value of the Company's MSRs related to residential mortgage loans totaled $1.2 billion and $1.1 billion as of September 30, 2025 and December 31, 2024, respectively.

The following is a summary of the UPB of loans underlying the Company's MSR portfolio by type:

September 30, 2025December 31, 2024(in millions)FNMA and FHLMC$41,611 $42,908 GNMA20,426 14,980 Non-agency4,015 3,201 Total unpaid principal balance of loans$66,052 $61,089 

Other Assets Acquired through Foreclosure

Other assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure. At September 30, 2025 and December 31, 2024, these assets totaled $130 million and $52 million, respectively, net of a valuation allowance of $14 million and $5 million, as of each respective date. The Company held 14 properties at September 30, 2025 compared to five at December 31, 2024, which consisted primarily of office properties. The increase in other assets acquired through foreclosure from December 31, 2024 was mainly due to the addition of five CRE office properties during the nine months ended September 30, 2025 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. This increase was partially offset by the sale of one CRE office property and the transfer of another property to Premises and equipment due to a change in management intent during the