Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 249

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 249
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 life insurance increased $10.4 million due to a new policy that was entered into in the second quarter of 2024.

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Non-interest Expense

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

Three Months Ended March 31,Increase (Decrease)20252024(in millions)Salaries and employee benefits$182.4 $154.9 $27.5 Deposit costs136.8 137.0 (0.2)Data processing45.2 36.0 9.2 Insurance37.9 58.9 (21.0)Legal, professional, and directors' fees28.9 30.1 (1.2)Occupancy17.2 17.5 (0.3)Loan servicing expenses16.4 15.0 1.4 Business development and marketing5.9 5.5 0.4 Loan acquisition and origination expenses5.2 4.8 0.4 Other expense24.5 22.1 2.4 Total non-interest expense$500.4 $481.8 $18.6 

Total non-interest expense for the three months ended March 31, 2025 increased $18.6 million compared to the same period in 2024. The increase in non-interest expense was primarily driven by increases in salaries and employee benefits and data processing expenses, partially offset by a decrease in insurance costs. Salaries and employee benefits increased $27.5 million due to increases in average salary and headcount. Data processing expenses increased $9.2 million due to higher software fees and an increase in software depreciation for additional capitalized software placed in service. These increases were partially offset by a decrease in insurance costs of $21.0 million as the prior year period included a $17.6 million charge related to the FDIC special assessment.

Income Taxes

The Company's effective tax rate was 19.2% and 23.5% for the three months ended March 31, 2025 and 2024, respectively. The decrease in the effective tax rate for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to a decrease in nondeductible insurance premiums and an increase in investment tax credit benefits.

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Business Segment Results

The Company's reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments: