Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 197

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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 the three months ended March 31, 2025, the Company sold loans with a carrying value of approximately $218 million and recognized a net loss of $2.6 million on these loan sales. During the three months ended March 31, 2024, the Company sold loans with a carrying value of approximately $148 million and recognized charge-offs of $1.4 million and a net loss of $4.9 million related to these loan sales.

5. MORTGAGE SERVICING RIGHTSThe following table presents changes in the fair value of the Company's MSR portfolio related to its mortgage banking business and other information related to its servicing portfolio: Three Months Ended March 31,20252024(in millions)Balance, beginning of period$1,127 $1,124 Additions from loans sold with servicing rights retained260 189 Carrying value of MSRs sold(83)(156)Change in fair value(20)60 Realization of cash flows(43)(39)Balance, end of period$1,241 $1,178 Unpaid principal balance of mortgage loans serviced for others$70,563 $65,620 Changes in the fair value of MSRs are recorded as Net loan servicing revenue in the Consolidated Income Statement. Due to the regulatory capital impact of MSRs on capital ratios, the Company sells certain MSRs and related servicing advances in the normal course of business. The Company may also sell excess servicing spread related to certain mortgage loans serviced by the Company. During the three months ended March 31, 2025, the Company sold MSRs related to a portfolio of loans with a total UPB of $8.7 billion and recognized a net loss of $0.3 million on these sales. During the three months ended March 31, 2024, the Company sold MSRs related to a portfolio of loans with a total UPB of $10.8 billion and recognized a net gain of $2.7 million on these sales. As of March 31, 2025 and December 31, 2024, the Company had a remaining receivable balance of $12 million and $37 million, respectively, related to holdbacks on MSR sales for servicing transfers, which are recorded in Other assets on the Consolidated Balance Sheet.The Company receives loan servicing fees, net of subservicing costs, based on the UPB of the underlying loans. Loan servicing fees are collected from payments made by borrowers. The Company may receive