Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 180

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 180
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 billion and recognized a net loss of $0.9 million as CLOs were sold as part of the Company's efforts to shift the investment portfolio mix toward high quality liquid assets.

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3. LOANS HELD FOR SALEThe Company purchases and originates residential mortgage loans that are held for sale or securitization primarily through its AmeriHome mortgage banking business channel.The following is a summary of loans HFS by type:March 31, 2025December 31, 2024(in millions)Government-insured or guaranteed:EBO (1)$60 $— Non-EBO1,152 764 Total government-insured or guaranteed1,212 764 Agency-conforming1,987 1,502 Non-agency39 20 Total loans HFS$3,238 $2,286 (1)    EBO loans are delinquent FHA, VA, or USDA loans purchased from GNMA pools under the terms of the GNMA MBS program that can be repooled when loans are brought current either through the borrower's reperformance or through completion of a loan modification.The following is a summary of the net gain on loan purchase, origination, and sale activities on residential mortgage loans to be sold or securitized:Three Months Ended March 31,20252024(in millions)Mortgage servicing rights capitalized upon sale of loans$260.4 $188.7 Net proceeds from sale of loans (1)(214.9)(160.7)Provision for and change in estimate of liability for losses under representations and warranties, net0.5 3.2 Change in fair value27.2 (6.7)Change in fair value of derivatives:Unrealized (loss) gain on derivatives(60.0)15.3 Realized gain (loss) on derivatives23.0 (8.1)Total change in fair value of derivatives(37.0)7.2 Net gain on residential mortgage loans HFS$36.2 $31.7 Loan acquisition and origination fees13.3 13.6 Net gain on loan origination and sale activities$49.5 $45.3 (1)     Represents the difference between cash proceeds received upon settlement and loan basis.

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4. LOANS, LEASES AND ALLOWANCE FOR CREDIT LOSSES The composition of the Company's HFI loan portfolio is as follows