Company: WAL-PA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001212545-25-000090
Chunk: 94

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 94
---
 losses. For the year ended December 31, 2024 and 2023, the Company recorded a provision for credit losses of $145.9 million and $62.6 million, respectively. The increase in the provision for credit losses from the year ended December 31, 2023 is primarily reflective of net charge-offs of $93.3 million, loan growth, and an incremental ACL build for CRE non-owner occupied loans resulting from current market conditions.

Non-interest Income

The following table presents a summary of non-interest income: 

Year Ended December 31,Increase (Decrease)20242023(in millions)Service charges and loan fees$96.0 $101.0 $(5.0)Net gain on loan origination and sale activities206.3 193.5 12.8 Net loan servicing revenue121.5 102.3 19.2 Income from equity investments38.2 15.7 22.5 Income from bank owned life insurance27.8 4.5 23.3 Gain (loss) on sales of investment securities17.4 (40.8)58.2 Fair value gain (loss) adjustments, net7.5 (116.0)123.5 Other income28.5 20.5 8.0 Total non-interest income$543.2 $280.7 $262.5 

Total non-interest income for the year ended December 31, 2024 increased by $262.5 million compared to the same period in 2023. The increase in non-interest income from the year ended December 31, 2023 was driven in large part by execution of the Company's balance sheet repositioning strategy, which included sales of certain loans and investment securities. These actions resulted in recognition of losses in 2023 related to fair value adjustments from transferring loans from HFI to HFS and sales of investment securities totaling $116.0 million and $40.8 million, respectively. In addition, income from bank owned life insurance increased $23.3 million as the Company entered into a new policy during 2024.

43

Non-interest Expense

The following table presents a summary of non-interest expense:

Year Ended December 31,Increase (Decrease)20242023(in millions)Salaries and employee benefits$631.1 $566.3 $64.8 Deposit costs693.2 436.7 256