Company: WAL-PA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001212545-25-000090
Chunk: 95

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 95
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.5 Insurance164.8 190.4 (25.6)Data processing149.7 122.0 27.7 Legal, professional, and directors' fees109.4 107.2 2.2 Occupancy73.1 65.6 7.5 Loan servicing expenses68.1 58.8 9.3 Business development and marketing32.7 21.8 10.9 Loan acquisition and origination expenses21.5 20.4 1.1 Gain on extinguishment of debt— (52.7)52.7 Other expense81.4 86.9 (5.5)Total non-interest expense$2,025.0 $1,623.4 $401.6 

Total non-interest expense for the year ended December 31, 2024 increased $401.6 million compared to the same period in 2023. The increase in non-interest expense from the year ended December 31, 2023 was primarily driven by increased deposit costs and salaries and employee benefits, in addition to a net gain on extinguishment of debt in 2023 that did not reoccur. Higher earnings credit deposit balances and rates drove the increase in deposits costs of $256.5 million as ECR related deposit balances increased $2.9 billion to $20.7 billion as of December 31, 2024. Salaries and employee benefits increased $64.8 million due to increased average headcount and a higher corporate bonus accrual resulting from improved performance in 2024. The gain on extinguishment of debt totaling $52.7 million recognized during the year ended December 31, 2023 was related to payoffs of the warehouse and equity fund resource loan credit linked notes and Amerihome senior notes. 

Income Taxes

For the years ended December 31, 2024 and 2023, the Company's effective tax rate was 20.5% and 22.6%, respectively. The decrease in the effective tax rate for the year ended December 31, 2024 compared to the same period in 2023 was primarily due to increases in investment tax credit benefits and tax-exempt income. 

44

Business Segment Results

The Company's reportable 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