Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 248

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 248
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 of each period end. The Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses. For the three months ended March 31, 2025, the Company recorded a provision for credit losses of $31.2 million, compared to $15.2 million for the three months ended March 31, 2024. The provision for credit losses for the three months ended March 31, 2025 is primarily reflective of net loan charge-offs of $25.8 million, HFI loan growth, and an incremental ACL build for CRE and construction loans resulting from current market conditions. 

Non-interest Income

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

Three Months Ended March 31,Increase (Decrease)20252024(in millions)Service charges and loan fees$37.2 $16.4 $20.8 Net gain on loan origination and sale activities49.5 45.3 4.2 Net loan servicing revenue21.8 46.4 (24.6)Income from bank owned life insurance11.4 1.0 10.4 Gain (loss) on sales of investment securities2.1 (0.9)3.0 Fair value gain adjustments, net1.0 0.3 0.7 (Loss) income from equity investments(4.8)17.1 (21.9)Other income9.2 4.3 4.9 Total non-interest income$127.4 $129.9 $(2.5)

Total non-interest income for the three months ended March 31, 2025 compared to the same period in 2024 decreased $2.5 million. The decrease in non-interest income from the three months ended March 31, 2024 was primarily driven by a decrease in net loan servicing revenue and a loss from equity investments. The decrease in net loan servicing revenue of $24.6 million resulted from fair value losses on MSRs and lower servicing income. The decrease in income from equity investments of $21.9 million was primarily due to the timing of income recognition on an equity investment that is expected to be recovered over time. These decreases were partially offset by increases in service charges and loan fees and income from bank owned life insurance. Service charges and loan fees increased $20.8 million primarily from service charges related to insured deposit products. Income from bank owned