Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 247

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 247
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)$— $(15)$(23)$— $(23)$(22)$— $(22)Total derivatives and marginAssets$523 $(134)$389 $305 $(52)$253 $265 $(21)$244 Liabilities(162)134 (28)(79)52 (27)(49)21 (28)

44

The following table summarizes the net gain (loss) on derivatives included in the non-interest income line items below:Three Months Ended June 30,Six Months Ended June 30,2025202420252024(in millions)Net gain (loss) on loan origination and sale activities:Interest rate lock commitments$10.8 $(2.3)$25.8 $(10.3)Forward contracts(17.5)9.3 (73.0)26.0 Interest rate contracts2.3 (0.7)2.3 (2.9)Other contracts(0.1)0.2 3.4 0.9 Net (loss) gain on derivatives$(4.5)$6.5 $(41.5)$13.7 Net loan servicing revenue:Forward contracts$(9.3)$(11.2)$(1.9)$(27.5)Futures contracts(0.6)3.7 (6.4)14.4 Interest rate contracts16.5 (16.7)42.8 (53.0)Net gain (loss) on derivatives$6.6 $(24.2)$34.5 $(66.1)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