Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 236

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 236
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decrease) in fair value resulting from:Interest rate change of 50 basis pointsAdverse change(114)Favorable change91 Option adjusted spread change of 50 basis pointsIncrease(30)Decrease31 Conditional prepayment rate change of 1%Increase(35)Decrease38 Cost to service change of 10%Increase(12)Decrease13 

Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. In addition, the offsetting effect of hedging activities are not contemplated in these results and further, the effect of a variation in a particular assumption is calculated without changing any other assumptions, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in MSR values may differ significantly from those reported. 

6. OTHER ASSETS ACQUIRED THROUGH FORECLOSUREOther assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure. The Company held fourteen properties at September 30, 2025 compared to five at December 31, 2024. At September 30, 2025 and December 31, 2024, the Company had a repossessed asset balance of $130 million and $52 million, respectively, net of a valuation allowance of $14 million and $5 million, respectively, recognized as a component of Other assets in the Consolidated Balance Sheet. The majority of the repossessed asset balance at September 30, 2025 and December 31, 2024 related to office properties. 

During the three months and nine months ended September 30, 2025, the Company sold one property with a carrying value of $34 million for a gain of $6.3 million and four properties with a combined carrying value of $40 million for a net gain of $5.7 million, respectively. The Company recognized a net valuation loss of $8.0 million and $12.8 million during the three and nine months ended September 30, 2025, respectively. In addition, during the three and nine months ended September 30, 2025, one property with a carrying value of $48 million was transferred from OREO into Premises and equipment, net due to a change in management intent. During the three and nine months