Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 251

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 251
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 the hedged assets.(2)Included in the carrying value of the hedged assets.(3)Included portfolio layer method derivative instruments with $3.5 billion and $4.0 billion designated as the hedged amount (from a closed portfolio of prepayable fixed rate loans with a carrying value of $7.3 billion and $8.7 billion) as of September 30, 2025 and December 31, 2024, respectively. The cumulative basis adjustment included in the carrying value of these hedged items totaled $9 million and $78 million as of September 30, 2025 and December 31, 2024, respectively.For the Company's derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current period earnings. The loss or gain on the hedged item is recognized in the same line item as the offsetting loss or gain on the related interest rate swaps. For loans and AFS debt securities, the gain or loss on the hedged item is included in interest income, as shown in the table below.Three Months Ended September 30,20252024Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item(in millions)Interest income on loans, including fees$(5.9)$5.8 $(31.4)$31.2 Interest income on investment securities(25.7)24.4 — — Nine Months Ended September 30,20252024Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item(in millions)Interest income on loans, including fees$(101.4)$100.1 $(114.6)$115.1 Interest income on investment securities(64.1)64.7 — — In addition to the gains and losses on the Company's outstanding fair value hedges presented in the above table, the Company recognized $0.2 million and $0.3 million in interest income related to the amortization of the cumulative basis adjustment on its discontinued portfolio layer method hedges during the three and nine months ended September 30, 2025, respectively, and $3.