Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 139

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 139
---
 on page 64.

Asset Quality

For all banks and bank holding companies, asset quality plays a significant role in the overall financial condition of the institution and results of operations. The Company measures asset quality in terms of nonaccrual loans as a percentage of gross loans and net charge-offs as a percentage of average loans. Net charge-offs are calculated as the difference between charged-off loans and recovery payments received on previously charged-off loans. The following table summarizes the Company's key asset quality metrics for loans HFI: 

September 30, 2025December 31, 2024(dollars in millions)Nonaccrual loans$522 $476 Repossessed assets130 52 Non-performing assets809 656 Nonaccrual loans to funded loans0.92 %0.89 %Nonaccrual and repossessed assets to total assets0.72 0.65 Allowance for loan losses to funded loans0.78 0.70 Allowance for credit losses to funded loans0.85 0.77 Allowance for loan losses to nonaccrual loans84 79 Allowance for credit losses to nonaccrual loans92 87 Net charge-offs to average loans outstanding (1)0.22 0.18 

(1)Annualized on an actual/actual basis for the three months ended September 30, 2025. Actual year-to-date for the year ended December 31, 2024.

62

Asset and Deposit Growth

The Company’s assets and liabilities are comprised primarily of loans and deposits. Therefore, the ability to originate new loans and attract new deposits is fundamental to the Company’s growth. 

Total assets increased to $91.0 billion at September 30, 2025, an increase of $10.0 billion, or 12.4%, from $80.9 billion at December 31, 2024. Higher deposit levels supported increases in investment securities and cash of $3.7 billion and $1.7 billion, respectively, and also funded HFI and HFS loan growth of $3.0 billion and $1.2 billion, respectively.

Loans HFI increased $3.0 billion, or 5.5%, to $56.6 billion as of September 30, 2025, compared to $53.7 billion as of December 31, 2024. By loan type, commercial and industrial, commercial real estate