Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 22

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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 period in 2024, mainly due to higher salaries and employee benefits, data processing costs, and other non-interest expense, as discussed in the preceding paragraph. These increases were partially offset by decreases in deposit costs and insurance expense. Lower ECR rates drove the $59.4 million decrease in deposit costs, while insurance costs decreased $28.3 million due to a reduction in brokered deposit levels and an adjustment to the FDIC special assessment loss estimate that resulted in a charge of $9.4 million recognized during the nine months ended September 30, 2024.

Income Taxes

The Company's effective tax rate was 17.0% and 20.7% for the three months ended September 30, 2025 and 2024, respectively, and 18.1% and 22.0% for the nine months ended September 30, 2025 and 2024, respectively. The decrease in the effective tax rate for the three and nine month periods ended September 30, 2025 compared to the same periods in 2024 was primarily due to an increase in investment tax credit benefits and a decrease in state taxes.

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Business Segment Results

The Company's operating segments are aggregated with a focus on products and services offered and consist of three reportable segments: 

•Commercial: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry.

•Consumer Related: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking.

•Corporate & Other: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to other reportable segments, and inter-segment eliminations.

The following tables present selected reportable segment information: 

Consolidated CompanyCommercialConsumer RelatedCorporate & OtherAt September 30, 2025:(in millions)Loans HFI, net of deferred fees and costs$56,646 $33,830 $22,816 $— Deposits77,247 28,584 42,725 5,938 At December 31, 2024:Loans HFI, net of deferred fees and costs$53,676 $31,544 $22,132 $— Deposits66,341 25,487 33,767 7,087