Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 76

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 76
---
 properties. The Company is entitled to recover all or a portion of the advances from borrowers of reinstated and performing loans, from the proceeds of liquidated properties or from the government agency or GSE guarantor of charged-off loans. Servicing advances are charged-off when they are deemed to be uncollectible. As of March 31, 2025 and December 31, 2024, net servicing advances totaled $66 million and $84 million, respectively, which are recorded as Other assets on the Consolidated Balance Sheet.

30

The following table presents the effect of hypothetical changes in the fair value of MSRs caused by assumed immediate changes in the below inputs that are used to determine fair value:March 31, 2025(in millions)Fair value of mortgage servicing rights$1,241 Increase (decrease) in fair value resulting from:Interest rate change of 50 basis pointsAdverse change(88)Favorable change71 Option adjusted spread change of 50 basis pointsIncrease(27)Decrease28 Conditional prepayment rate change of 1%Increase(37)Decrease41 Cost to service change of 10%Increase(11)Decrease14 

Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. In addition, the offsetting effect of hedging activities are not contemplated in these results and further, the effect of a variation in a particular assumption is calculated without changing any other assumptions, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in MSR values may differ significantly from those reported. 

6. OTHER ASSETS ACQUIRED THROUGH FORECLOSUREOther assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure. At March 31, 2025 and December 31, 2024, the Company had a repossessed asset balance of $51 million and $52 million, respectively, net of a valuation allowance of $5 million, as of each date.The majority of the repossessed asset balance at March 31, 2025 and December 31, 2024 related to a single office property. The Company held five properties at March 31, 2025 and December 31, 2024.

31

7. DEPOSIT