Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 124

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 124
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Assets(Level 1)Active Markets for Similar Assets(Level 2)Unobservable Inputs(Level 3) (in millions)As of September 30, 2025:Loans HFI$376 $— $— $376 Other assets acquired through foreclosure130 — — 130 As of December 31, 2024:Loans HFI$561 $— $— $561 Other assets acquired through foreclosure52 — — 52 

52

For Level 3 assets measured at fair value on a nonrecurring basis as of period end, the significant unobservable inputs used in the fair value measurements were as follows:September 30, 2025Valuation Technique(s)Significant Unobservable InputsRange(in millions)Loans HFI$376 Collateral methodThird party appraisalCosts to sell6.0% to 10.0%Discounted cash flow methodDiscount rateContractual loan rate3.0% to 8.0%Scheduled cash collectionsProbability of default0% to 20.0%Proceeds from non-real estate collateralLoss given default0% to 70.0%Other assets acquired through foreclosure130 Collateral methodThird party appraisalCosts to sell1.0% to 6.0%December 31, 2024Valuation Technique(s)Significant Unobservable InputsRange(in millions)Loans HFI$561 Collateral methodThird party appraisalCosts to sell6.0% to 10.0%Discounted cash flow methodDiscount rateContractual loan rate3.0% to 8.0%Scheduled cash collectionsProbability of default0% to 20.0%Proceeds from non-real estate collateralLoss given default0% to 70.0%Other assets acquired through foreclosure52 Collateral methodThird party appraisalCosts to sell1.0% to 6.0%Loans HFI: Loans measured at fair value on a nonrecurring basis include collateral dependent loans. The specific reserves for these loans are based on collateral value, net of estimated disposition costs and other identified quantitative inputs. Collateral value is determined based on independent third-party appraisals or internally-developed discounted cash flow analyses. Appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level