Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 265

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 265
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30, 2025 and December 31, 2024 was the implied credit risk for the Company. The implied credit risk spread as of 

50

September 30, 2025 and December 31, 2024 was calculated as the difference between the average of the 10 and 15-year 'BB' rated financial indexes over the corresponding swap indexes.As of September 30, 2025, the Company estimates the discount rate at 5.80%, which represents an implied credit spread of 1.83% plus three-month SOFR (3.98%). As of December 31, 2024, the Company estimated the discount rate at 7.43%, which was a 3.12% credit spread plus three-month SOFR (4.31%).The change in Level 3 assets and liabilities measured at fair value on a recurring basis included in income was as follows:Three Months Ended September 30, 2025Nine Months Ended September 30, 2025Loans HFSMSRsIRLCs (1)Loans HFSMSRsIRLCs (1)(in millions)Balance, beginning of period$84 $1,044 $24 $3 $1,127 $(2)Purchases and additions117 318 6,847 272 863 18,079 Sales and payments(36)(94)— (116)(629)— Transfers from Level 2 to Level 31 — — 4 — — Settlement of IRLCs upon acquisition or origination of loans HFS— — (6,863)— — (18,076)Change in fair value2 (9)5 5 (6)12 Realization of cash flows— (46)— — (142)— Balance, end of period$168 $1,213 $13 $168 $1,213 $13 Changes in unrealized gains for the period (2)$1 $(8)$13 $2 $(14)$13 Three Months Ended September 30, 2024Nine Months Ended September 30, 2024MSRsIRLCs (1)MSRsIRLCs (1)(in millions)Balance, beginning of period$1,145 $8 $1,124 $18 Purchases and additions223 5,387 626 14,024 Sales and