Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 152

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 152
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 by an increase of $5.0 billion in average interest bearing liabilities. The decrease in net interest margin of 10 basis points to 3.51% is primarily the result of a lower rate environment.

Provision for Credit Losses

The provision for credit losses in each period is reflected as a reduction in earnings for that period and includes amounts related to funded loans, unfunded loan commitments, and investment securities. The provision is equal to the amount required to maintain the ACL at a level adequate to absorb estimated lifetime credit losses inherent in the loan and investment securities portfolios based on remaining contractual maturity, adjusted for estimated prepayments as of each period end. The Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses. For the three and nine months ended September 30, 2025, the Company recorded a provision for credit losses of $80.0 million and $151.1 million, respectively, compared to $33.6 million and $85.9 million for the respective periods in 2024. The provision for credit losses for the three and nine months ended September 30, 2025 is primarily reflective of net loan charge-offs of $31.1 million and $86.5 million, respectively, establishment of a $29.6 million reserve related to the Cantor Group V loan, and qualitative overlays. 

Non-interest Income

The following table presents a summary of non-interest income: 

Three Months Ended September 30,Increase (Decrease)Nine Months Ended September 30,Increase (Decrease)2025202420252024(in millions)Service charges and loan fees$35.4 $30.1 $5.3 $109.5 $64.3 $45.2 Net gain on mortgage loan origination and sale activities75.5 46.3 29.2 164.4 138.4 26.0 Net loan servicing revenue19.1 12.3 6.8 79.2 96.8 (17.6)Income from bank owned life insurance11.8 13.0 (1.2)34.2 15.7 18.5 Gain on sales of investment securities8.5 8.8 (0.3)22.0 10.2 11.8 Fair value gain adjustments, net8.3 4.1 4.2 9.4