Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 214

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 214
---
(0.6)— Net loss on equity securities$— $— $(0.4)$— During the three and nine months ended September 30, 2025, the Company sold AFS securities with a carrying value of $2.2 billion and $4.8 billion, respectively, and recognized a net gain of $8.5 million and $22.4 million, respectively. U.S. Treasury securities and MBS were sold to secure gains, including hedged U.S. Treasury securities sold as part of interest rate swap terminations that resulted in a $16.2 million gain. See "Note 12. Derivatives and Hedging Activities" for further discussion of the interest rate swap. During the three and nine months ended September 30, 2024, the Company sold securities with a carrying value of $2.3 billion and $4.0 billion, respectively, and recognized a net gain of $8.8 million and $10.2 million, respectively. U.S. Treasury securities and MBS were sold to secure gains, while CLOs were sold as part of the Company's efforts to shift the investment portfolio mix toward high quality liquid assets.

18

3. LOANS HELD FOR SALEThe Company purchases and originates residential mortgage loans that are held for sale or securitization primarily through its AmeriHome mortgage banking business channel.The following is a summary of loans HFS by type:September 30, 2025December 31, 2024(in millions)Government-insured or guaranteed:EBO (1)$102 $— Non-EBO1,627 764 Total government-insured or guaranteed1,729 764 Agency-conforming1,696 1,502 Non-agency77 20 Total loans HFS$3,502 $2,286 (1)    EBO loans are delinquent FHA, VA, or USDA loans purchased from GNMA pools under the terms of the GNMA MBS program that can be repooled when loans are brought current either through the borrower's reperformance or through completion of a loan modification.The following is a summary of the net gain on loan purchase, origination, and sale activities on residential mortgage loans to be sold or securitized:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in millions)Mortgage servicing rights capitalized