Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 12

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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 three months ended March 31, 2025 and 2024, respectively.

(3)Includes non-accrual loans.

(4)Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

65

Three Months Ended March 31,2025 versus 2024Increase (Decrease) Due to Changes in (1)VolumeRateTotal(in millions)Interest income:Loans HFS$29.2 $(1.7)$27.5 Loans HFI:Commercial and industrial65.5 (45.4)20.1 CRE - non-owner occupied9.5 (19.5)(10.0)CRE - owner-occupied1.1 0.8 1.9 Construction and land development(10.7)(14.6)(25.3)Residential real estate(4.0)(0.8)(4.8)Consumer(0.3)— (0.3)Total loans HFI61.1 (79.5)(18.4)Investment securities:Taxable25.4 (3.0)22.4 Tax-exempt0.5 1.1 1.6 Total investment securities25.9 (1.9)24.0 Cash and other12.9 (5.4)7.5 Total interest income129.1 (88.5)40.6 Interest expense:Interest bearing demand accounts(3.0)(19.1)(22.1)Savings and money market accounts46.3 (11.4)34.9 Certificates of deposit(1.3)(13.8)(15.1)Total deposits42.0 (44.3)(2.3)Short-term borrowings(24.1)(8.9)(33.0)Long-term debt30.5 (6.1)24.4 Qualifying debt— (0.2)(0.2)Total interest expense48.4 (59.5)(11.1)Net change$80.7 $(29.0)$51.7 

(1)    Changes attributable to both volume and rate are designated as volume changes.

Comparison of interest income, interest expense and net interest margin

The Company's primary source of revenue is interest income. For the three months ended March 31,