Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 255

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 255
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.3)(137.7)(61.3)Interest rate contracts(0.4)6.7 1.9 3.8 Other contracts— (1.1)3.5 (0.2)Net loss on derivatives$(75.6)$(79.1)$(117.0)$(65.5)Net loan servicing revenue:Forward contracts$8.6 $17.9 $6.6 $(9.6)Futures contracts9.1 (7.0)2.7 7.4 Interest rate contracts(2.5)42.2 40.3 (10.8)Net gain (loss) on derivatives$15.2 $53.1 $49.6 $(13.0)Counterparty Credit Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected replacement value of the contracts. Management enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. Additionally, management monitors counterparty credit risk exposure on each contract to determine appropriate limits on the Company's total credit exposure across all product types, which may require the Company to post collateral to counterparties when these contracts are in a net liability position and conversely, for counterparties to post collateral to the Company when these contracts are in a net asset position. Management reviews the Company's collateral positions on a daily basis and exchanges collateral with counterparties in accordance with standard ISDA documentation and other related agreements. The Company generally posts or holds collateral in the form of cash deposits or highly rated securities issued by the U.S. Treasury or government-sponsored enterprises (FNMA and FHLMC), or guaranteed by GNMA. At September 30, 2025, December 31, 2024, and September 30, 2024 collateral pledged by the Company to counterparties for its derivatives totaled $432 million, $117 million, and $292 million, respectively. 

13. EARNINGS PER SHARE Diluted EPS is calculated using the weighted average outstanding common shares during the period, including common stock equivalents. Basic EPS is calculated using the weighted average outstanding common shares during the period.The following table presents the calculation of basic and diluted EPS:  Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024 (in millions, except per share amounts)Weight