Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 33

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 33
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 loan balance from December 31, 2024 was largely attributable to a reduction in nonperforming collateral-dependent loans, which are now classified as performing loans.

80

Mortgage Servicing Rights

The fair value of the Company's MSRs related to residential mortgage loans totaled $1.0 billion and $1.1 billion as of June 30, 2025 and December 31, 2024, respectively.

The following is a summary of the UPB of loans underlying the Company's MSR portfolio by type:

June 30, 2025December 31, 2024(in millions)FNMA and FHLMC$41,215 $42,908 GNMA14,499 14,980 Non-agency3,727 3,201 Total unpaid principal balance of loans$59,441 $61,089 

Other Assets Acquired through Foreclosure

Other assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure and at June 30, 2025 and December 31, 2024, totaled $218 million and $52 million, respectively, net of a valuation allowance of $6 million and $5 million, as of each respective date. The increase in other assets acquired through foreclosure from December 31, 2024 was mainly due to the addition of five CRE office properties during the period as the Company advances nonperforming loans through its standard credit resolution process, with the goal of stabilizing leasing and occupancy, improving rental rates, and funding improvements from the net operating income generated by these properties prior to sale.

The Company held 11 properties at June 30, 2025 compared to five at December 31, 2024. The majority of the repossessed asset balance at June 30, 2025 and December 31, 2024 related to office properties. Refer to “Recent Market and Banking Industry Developments” in Part I, Item 2 of this Form 10-Q for additional discussion of other assets acquired through foreclosure.

Goodwill and Other Intangible Assets

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill and intangible assets totaling $653 million and $659 million at June 30, 2025