Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 158

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 158
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 majority of these projects are located in suburban locations in the Company's core footprint states (Arizona, California, and Nevada), with central business district and midtown exposure totaling less than 1% and 11% of office loans as of June 30, 2025, respectively. 

The office loan portfolio largely consists of value-add loans that require significant up-front cash equity contributions from institutional sponsors and large regional and national developers. The properties underlying these loans have stable business trends and low vacancy rates. To a large extent, the financing structures of these loans do not carry junior liens or mezzanine debt, which enables maximum flexibility when working with clients and sponsors. In addition to adhering to conservative underwriting standards, asset-specific credit risk is mitigated through continued sponsor support of projects by re-appraisal rights of the Company, re-margining requirements and ongoing debt service, and debt yield covenants. 

As of June 30, 2025 and December 31, 2024, 15% and 16% of the Company's CRE loans, excluding construction and land loans, were owner occupied, respectively, with substantially all of these loans secured by first liens and had an initial loan-to-value ratio of generally not more than 75%. 

Non-performing Assets

Total non-performing loans increased $9 million to $613 million at June 30, 2025, from $604 million at December 31, 2024.

June 30, 2025December 31, 2024(dollars in millions)Total nonaccrual loans (1)$427 $476 Loans past due 90 days or more on accrual status (2)51 — Accruing restructured loans135 128 Total nonperforming loans$613 $604 Other assets acquired through foreclosure, net$218 $52 Nonaccrual HFI loans to funded HFI loans0.76 %0.89 %Loans past due 90 days or more on accrual status to funded loans HFI (2)0.09 — 

(1)Includes loan modifications to borrowers experiencing financial difficulty of $103 million and $169 million at June 30, 2025 and December 31, 2024, respectively.

(2)Excludes government guaranteed residential mortgage loans of $326 million at June 30, 2025 and December 31, 2024.

Interest income that would have been recorded under