Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 9

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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.8 126.2 463.5 371.3 Net revenue$938.2 $823.1 $2,562.1 $2,323.7 Total non-interest expense544.4 537.4 1,559.5 1,506.0 Pre-provision net revenue$393.8 $285.7 $1,002.6 $817.7 Less:Provision for credit losses80.0 33.6 151.1 85.9 Income tax expense53.3 52.3 154.1 161.0 Net income$260.5 $199.8 $697.4 $570.8 

Efficiency Ratio

The following table shows the components used in the calculation of the efficiency ratio, which measures non-interest expense as a ratio of net revenue on a tax equivalent basis. Management uses this ratio as a metric for assessing cost efficiency: 

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(dollars in millions)Total non-interest expense$544.4 $537.4 $1,559.5 $1,506.0 Less: Deposit costs175.1 208.0 459.3 518.7 Total non-interest expense, excluding deposit costs369.3 329.4 1,100.2 987.3 Divided by:Total net interest income750.4 696.9 2,098.6 1,952.4 Plus:Tax equivalent interest adjustment9.7 10.0 30.1 29.5 Total non-interest income187.8 126.2 463.5 371.3 Less: Deposit costs175.1 208.0 459.3 518.7 $772.8 $625.1 $2,132.9 $1,834.5 Efficiency ratio - tax equivalent basis 57.4 %64.5 %60.2 %64.0 %Efficiency ratio - tax equivalent basis, adjusted for deposit costs47.8 52.7 51.6 53.8 

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Tangible Common Equity and Return on Average Tangible Common Equity

The following tables present financial measures related to tangible common equity. Tangible common equity represents total equity reduced