Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 294

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 294
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,474 9,175 1,299 CRE - owner occupied1,598 1,675 (77)Hotel franchise finance3,929 3,815 114 Other CRE - non-owner occupied6,552 6,342 210 Residential13,166 12,961 205 Residential - EBO929 972 (43)Construction and land development4,478 4,468 10 Other139 174 (35)Total loans HFI55,939 53,676 2,263 Allowance for credit losses(395)(374)(21)Total loans HFI, net of allowance$55,544 $53,302 $2,242 

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 $117 million and $106 million reduced the carrying value of loans as of June 30, 2025 and December 31, 2024, respectively. Net unamortized purchase premiums on acquired and purchased loans of $178 million and $175 million increased the carrying value of loans as of June 30, 2025 and December 31, 2024, respectively. 

Concentrations of Lending Activities

The Company monitors concentrations of lending activities at the product and borrower relationship level. As of June 30, 2025 and December 31, 2024, no borrower relationships at both the commitment and funded loan level exceeded 5% of total loans HFI.

Commercial and industrial loans made up 45% and 43% of total loans HFI as of June 30, 2025 and December 31, 2024, respectively.

In addition, the Company's loan portfolio includes significant credit exposure to the CRE market as CRE related loans accounted for approximately 30% of total loans at June 30, 2025 and December 31, 2024. 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 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.