Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 277

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 277
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 financial information determined by methods other than those prescribed by GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. Management believes presentation of these non-GAAP financial measures provides useful supplemental information that is essential to a complete understanding of the operating results of the Company. Since the presentation of these non-GAAP performance measures and their impact differ between companies, these non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 

Pre-Provision Net Revenue

Banking regulations define PPNR as the sum of net interest income and non-interest income less expenses before adjusting for loss provisions. Management believes this is an important metric as it illustrates the underlying performance of the Company, it enables investors and others to assess the Company's ability to generate capital to cover credit losses through the credit cycle, and provides consistent reporting with a key metric used by bank regulatory agencies. 

The following table shows the components used in the calculation of PPNR:

Three Months Ended June 30,Six Months Ended June 30,2025202420252024(in millions)Net interest income$697.6 $656.6 $1,348.2 $1,255.5 Total non-interest income148.3 115.2 275.7 245.1 Net revenue$845.9 $771.8 $1,623.9 $1,500.6 Total non-interest expense514.7 486.8 1,015.1 968.6 Pre-provision net revenue$331.2 $285.0 $608.8 $532.0 Less:Provision for credit losses39.9 37.1 71.1 52.3 Income tax expense53.5 54.3 100.8 108.7 Net income$237.8 $193.6 $436.9 $371.0 

Efficiency Ratio

The following table shows the components used in the calculation of the efficiency ratio, which measures non-interest expense as a ratio of net revenue on a tax equivalent basis. Management uses this ratio as a metric for assessing cost efficiency: 

Three Months Ended June 30,Six Months Ended June 30,2025202420252024(dollars in millions)Total non-interest expense$514