Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 139

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 139
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Pre-provision net revenue$331.2 $285.0 $608.8 $532.0 Less:Provision for credit losses39.9 37.1 71.1 52.3 Income tax expense53.5 54.3 100.8 108.7 Net income$237.8 $193.6 $436.9 $371.0 

Efficiency Ratio

The following table shows the components used in the calculation of the efficiency ratio, which measures non-interest expense as a ratio of net revenue on a tax equivalent basis. Management uses this ratio as a metric for assessing cost efficiency: 

Three Months Ended June 30,Six Months Ended June 30,2025202420252024(dollars in millions)Total non-interest expense$514.7 $486.8 $1,015.1 $968.6 Less: Deposit costs147.4 173.7 284.2 310.7 Total non-interest expense, excluding deposit costs367.3 313.1 730.9 657.9 Divided by:Total net interest income697.6 656.6 1,348.2 1,255.5 Plus:Tax equivalent interest adjustment10.2 9.9 20.3 19.5 Total non-interest income148.3 115.2 275.7 245.1 Less: Deposit costs147.4 173.7 284.2 310.7 $708.7 $608.0 $1,360.0 $1,209.4 Efficiency ratio - tax equivalent basis 60.1 %62.3 %61.7 %63.7 %Efficiency ratio - tax equivalent basis, adjusted for deposit costs51.8 51.5 53.7 54.4 

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Tangible Common Equity and Return on Average Tangible Common Equity

The following tables present financial measures related to tangible common equity. Tangible common equity represents total stockholders' equity reduced by goodwill and intangible assets and preferred stock. Management believes tangible common equity financial measures are useful in evaluating the Company's capital strength, financial condition, and ability to manage potential losses.

June 30, 2025December 31, 2024(dollars and shares in millions)Total stockholders' equity$7,407