Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 150

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 150
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 $275.7 $245.1 $30.6 

Total non-interest income for the three months ended June 30, 2025 increased $33.1 million compared to the same period in 2024 primarily driven by increases in service charges and loan fees, income from bank owned life insurance, and gain on sales of investment securities. The increase in service charges and loan fees of $19.1 million was primarily driven by service charges on insured deposit products. Income from bank owned life insurance increased $9.3 million due to a new policy entered into in the second quarter of 2024. The increase in gain on sales of investment securities of $9.1 million was largely due to the termination of an interest rate swap on U.S. Treasury securities and corresponding sale of the hedged securities. These increases were partially offset by a decrease in net gain on loan origination and sale activities of $7.4 million primarily related to mortgage banking hedging activities.

Total non-interest income for the six months ended June 30, 2025 increased $30.6 million compared to the same period in 2024 driven primarily by increases in service charges and loan fees, income from bank owned life insurance, and gain on sales of investment securities as discussed in the above paragraph. These increases were partially offset by decreases in net loan servicing revenue and income from equity investments. The decrease in net loan servicing revenue of $24.4 million resulted from fair value losses on MSRs and lower servicing income. The decrease in income from equity investments of $23.2 million was primarily due to timing of income recognition on an equity investment that is expected to be recovered over time.

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Non-interest Expense

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

Three Months Ended June 30,Increase (Decrease)Six Months Ended June 30,Increase (Decrease)2025202420252024(in millions)Salaries and employee benefits$179.9 $153.0 $26.9 $362.3 $307.9 $54.4 Deposit costs147.4 173.7 (26.3)284.2 310.7 (26.5)Data processing45.0 35.7 9.3 90.2 71.7 18.5 Insurance37.4 33.8 3.6 75.3 92.7 (17.4)Legal, professional, and