Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 151

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 151
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2025, interest expense totaled $475.1 million, a decrease of $28.0 million, or 5.6%, compared to $503.1 million for the three months ended September 30, 2024. The decrease in interest expense related to decreases in interest expense on deposits of $23.9 million due to lower rates and short-term borrowings of $27.6 million due to lower rates and a lower average balance of $1.6 billion. These decreases were partially offset by increases of $4.9 billion and $2.3 billion in average interest bearing deposits and long-term debt, respectively.

For the nine months ended September 30, 2025, interest expense was $1.4 billion, a decrease of $73.2 million, or 5.0%, compared to $1.5 billion for the nine months ended September 30, 2024. Interest expense on short-term borrowings decreased 

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$83.7 million due to a decrease in the average balance of $1.6 billion in conjunction with lower rates, while interest expense on deposits decreased $58.7 million for the same period driven by lower rates net of a $4.5 billion increase in average interest bearing deposits. These decreases were partially offset by a $74.0 million increase in interest expense on long-term debt resulting from an increase in average balances of $2.2 billion. 

For the three months ended September 30, 2025, net interest income totaled $750.4 million, an increase of $53.5 million, or 7.7%, compared to $696.9 million for the three months ended September 30, 2024. The increase in net interest income was driven by an increase in average interest earning assets of $7.5 billion and lower rates on deposits, partially offset by lower yields on interest earning assets. The decrease in net interest margin of 8 basis points to 3.53% is largely the result of the impact of a lower rate environment on interest earning asset yields, partially offset by lower rates on interest bearing liabilities.

For the nine months ended September 30, 2025, net interest income was $2.1 billion, an increase of $146.2 million, or 7.5%, compared to $2.0 billion for the nine months ended September 30, 2024. The increase in net interest income reflects a $7.8 billion increase in average interest-earning assets, partially offset