Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 92

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 92
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Equity warrants31 — 31 30 — 30 18 — 18 $67 $— $67 $45 $— $45 $31 $— $31 LiabilitiesForeign currency contracts$— $— $— $(1)$— $(1)$— $— $— Forward contracts(2)— (2)(1)— (1)(1)— (1)Interest rate lock commitments(1)— (1)(7)— (7)(1)— (1)Interest rate contracts(11)— (11)(14)— (14)(19)— (19)$(14)$— $(14)$(23)$— $(23)$(21)$— $(21)Total derivatives and marginAssets$285 $(32)$253 $305 $(52)$253 $272 $(33)$239 Liabilities(57)32 (25)(79)52 (27)(61)33 (28)

43

The following table summarizes the net gain (loss) on derivatives included in the non-interest income line items below:Three Months Ended March 31,20252024(in millions)Net gain (loss) on loan origination and sale activities:Interest rate lock commitments$15.0 $(8.1)Forward contracts(55.6)16.7 Interest rate contracts— (2.2)Other contracts3.5 0.7 Net (loss) gain on derivatives$(37.1)$7.1 Net loan servicing revenue:Forward contracts$7.4 $(16.3)Futures contracts(5.8)10.7 Interest rate contracts26.3 (36.3)Net gain (loss) on derivatives$27.9 $(41.9)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