Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 211

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 211
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 acquired by the Company primarily in connection with negotiating credit facilities and certain other services to private, venture-backed companies in the technology industry.

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Fair Value HedgesAs of March 31, 2025 and December 31, 2024, the following amounts are reflected on the Consolidated Balance Sheet related to cumulative basis adjustments for outstanding fair value hedges:March 31, 2025December 31, 2024Carrying Value of Hedged AssetsCumulative Fair Value Hedging Adjustment (1)Carrying Value of Hedged AssetsCumulative Fair Value Hedging Adjustment (1)(in millions)Loans HFI, net of deferred loan fees and costs (2)$4,316 $(32)$4,320 $(96)(1)Included in the carrying value of the hedged assets.(2)Included portfolio layer method derivative instruments with $4.0 billion designated as the hedged amount (from a closed portfolio of prepayable fixed rate loans with a carrying value of $8.6 billion and $8.7 billion) as of March 31, 2025 and December 31, 2024, respectively. The cumulative basis adjustment included in the carrying value of these hedged items totaled $20 million and $78 million as of March 31, 2025 and December 31, 2024, respectively.For the Company's derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current period earnings. The loss or gain on the hedged item is recognized in the same line item as the offsetting loss or gain on the related interest rate swaps. For loans, the gain or loss on the hedged item is included in interest income, as shown in the table below.Three Months Ended March 31,20252024Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item(in millions)Interest income$(63.7)$63.9 $72.0 $(72.5)In addition to the gains and losses on the Company's outstanding fair value hedges presented in the above table, the Company recognized less than $0.1 million in interest income related to the amortization of the cumulative basis adjustment on its discontinued portfolio layer method hedges during