Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 264

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 264
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— $— $65 $65 Derivative liabilities (1)— 69 7 76 (1)See "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is decreased by $96 million as of December 31, 2024 for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates. Derivative assets and liabilities exclude margin of $72 million and $3 million, respectively.(2)Includes only the portion of loans HFS that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.(3)Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.The change in Level 3 liabilities measured at fair value on a recurring basis included in OCI was as follows:Junior Subordinated DebtThree Months Ended September 30,Nine Months Ended September 30,2025202420252024(in millions)Beginning balance$(68.6)$(64.2)$(64.7)$(62.8)Change in fair value (1)(2.3)(0.4)(6.2)(1.8)Ending balance$(70.9)$(64.6)$(70.9)$(64.6)(1)Unrealized gains (losses) attributable to changes in the fair value of junior subordinated debt are recorded in OCI, net of tax, and totaled $(1.7) million and $(0.3) million for three months ended September 30, 2025 and 2024, respectively, and $(4.7) million and $(1.3) million for the nine months ended September 30, 2025 and 2024, respectively.The significant unobservable inputs used in the fair value measurements of these Level 3 liabilities were as follows:September 30, 2025Valuation TechniqueSignificant Unobservable InputsInput Value(in millions)Junior subordinated debt$71 Discounted cash flowImplied credit rating of the Company5.80 % December 31, 2024Valuation TechniqueSignificant Unobservable InputsInput Value(in millions)Junior subordinated debt$65 Discounted cash flowImplied credit rating of the Company7.43 %The significant unobservable inputs used in the fair value measurement of the Company’s junior subordinated debt as of September