Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 119

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 119
---
 an important metric as it illustrates the underlying performance of the Company, it enables investors and others to assess the Company's ability to generate capital to cover credit losses through the credit cycle, and provides consistent reporting with a key metric used by bank regulatory agencies. 

The following table shows the components used in the calculation of PPNR:

Three Months Ended March 31,20252024(in millions)Net interest income$650.6 $598.9 Total non-interest income127.4 129.9 Net revenue$778.0 $728.8 Total non-interest expense500.4 481.8 Pre-provision net revenue$277.6 $247.0 Less:Provision for credit losses31.2 15.2 Income tax expense47.3 54.4 Net income$199.1 $177.4 

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 March 31,20252024(dollars in millions)Total non-interest expense$500.4 $481.8 Less: Deposit costs136.8 137.0 Total non-interest expense, excluding deposit costs363.6 344.8 Divided by:Total net interest income650.6 598.9 Plus:Tax equivalent interest adjustment10.2 9.6 Total non-interest income127.4 129.9 Less: Deposit costs136.8 137.0 $651.4 $601.4 Efficiency ratio - tax equivalent basis 63.5 %65.2 %Efficiency ratio - tax equivalent basis, adjusted for deposit costs55.8 57.3 

62

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 stockholders' equity reduced by goodwill and intangible assets and preferred stock. Management believes tangible common equity financial measures are useful in evaluating the Company's capital strength, financial condition, and ability to manage potential losses.

March 31, 2025December 31, 2024(dollars and shares in millions)Total stockholders' equity$7,215 $6,707 Less:Goodwill and intangible assets