Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 148

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 148
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 lower rates and short-term borrowings of $23.2 million due to lower rates and a lower average balance of $1.1 billion. These decreases were partially offset by increases of $3.2 billion and $2.1 billion in average interest bearing deposits and long-term debt, respectively.

For the six months ended June 30, 2025, interest expense was $901.8 million, a decrease of $45.2 million, or 4.8%, compared to $947.0 million for the six months ended June 30, 2024. Interest expense on short-term borrowings decreased $56.2 million due 

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to a decrease in the average balance of $1.6 billion in conjunction with lower rates, while interest expense on deposits decreased $34.8 million for the same period driven by lower rates net of a $4.3 billion increase in average interest bearing deposits. These decreases were partially offset by a $47.4 million increase in interest expense on long-term debt resulting from an increase in average balances of $2.1 billion. 

For the three months ended June 30, 2025, net interest income totaled $697.6 million, an increase of $41.0 million, or 6.2%, compared to $656.6 million for the three months ended June 30, 2024. The increase in net interest income was driven by an increase in average interest earning assets of $6.7 billion and lower rates on deposits, partially offset by lower yields on interest earning assets. The decrease in net interest margin of 10 basis points to 3.53% is largely the result of the impact of lower rates on interest earning asset yields, partially offset by an increase in average interest earning assets.

For the six months ended June 30, 2025, net interest income was $1.3 billion, an increase of $92.7 million, or 7.4%, compared to the six months ended June 30, 2024. The increase in net interest income reflects a $7.9 billion increase in average interest-earning assets, partially offset by an increase of $4.9 billion in average interest bearing liabilities. The decrease in net interest margin of 11 basis points to 3.50% is the result of a lower rate environment.

Provision for Credit Losses

The provision for credit losses in each period is reflected as a reduction in earnings for that period and includes amounts related to funded loans, unf