Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 239

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 239
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 securities, net of allowance for credit losses15,868 15,095 Total deposits69,322 66,341 Other borrowings4,151 5,573 Qualifying debt898 899 Total equity7,215 6,707 Tangible common equity, net of tax (1)5,973 5,755 

(1) See Non-GAAP Financial Measures section beginning on page 62.

Asset Quality

For all banks and bank holding companies, asset quality plays a significant role in the overall financial condition of the institution and results of operations. The Company measures asset quality in terms of nonaccrual loans as a percentage of gross loans and net charge-offs as a percentage of average loans. Net charge-offs are calculated as the difference between charged-off loans and recovery payments received on previously charged-off loans. The following table summarizes the Company's key asset quality metrics for loans HFI: 

March 31, 2025December 31, 2024(dollars in millions)Nonaccrual loans$451 $476 Repossessed assets51 52 Non-performing assets681 528 Nonaccrual loans to funded loans0.82 %0.89 %Nonaccrual and repossessed assets to total assets0.60 0.65 Allowance for loan losses to funded loans0.71 0.70 Allowance for credit losses to funded loans0.77 0.77 Allowance for loan losses to nonaccrual loans86 79 Allowance for credit losses to nonaccrual loans94 87 Net charge-offs to average loans outstanding (1)0.20 0.18 

(1)Annualized on an actual/actual basis for the three months ended March 31, 2025. Actual year-to-date for the year ended December 31, 2024.

60

Asset and Deposit Growth

The Company’s assets and liabilities are comprised primarily of loans and deposits. Therefore, the ability to originate new loans and attract new deposits is fundamental to the Company’s growth. 

Total assets increased to $83.0 billion at March 31, 2025 from $80.9 billion at December 31, 2024. The increase in total assets of $2.1 billion, or 2.6%, was primarily driven by an increase in deposits, which contributed to an increase in funded HFI and HFS loan growth of