Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 312

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 312
---
 increase in the MSR DTL.

The Company had no deferred tax valuation allowance as of September 30, 2025 and December 31, 2024. 

Bank Owned Life Insurance

The carrying value of BOLI totaled $1.0 billion as of September 30, 2025, an increase of $34 million, from December 31, 2024. BOLI is used as a tax efficient method to help offset employee benefit costs.

Deposits

Deposits are the primary source for funding the Company's asset growth. Total deposits increased to $77.2 billion at September 30, 2025, from $66.3 billion at December 31, 2024, an increase of $10.9 billion, or 16.4%. By deposit type, the increase in deposits is attributable to increases of $7.8 billion in non-interest bearing deposits, $3.4 billion in savings and money market accounts, and $544 million in interest bearing demand deposits, partially offset by a decrease of $839 million in certificates of deposit.

WAB is a participant in the IntraFi Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. At September 30, 2025, the Company had $13.1 billion of these reciprocal deposits, compared to $14.0 billion at December 31, 2024. At September 30, 2025 and December 31, 2024, the Company also had wholesale brokered deposits of $5.4 billion and $6.9 billion, respectively.

In addition, deposits for which the Company provides account holders with earnings credits or referral fees totaled $28.0 billion and $20.7 billion at September 30, 2025 and December 31, 2024, respectively. Costs related to these deposits are primarily reported as Deposit costs in non-interest expense. Deposit costs included $169.2 million and $201.7 million in deposit related costs on these deposits for the three months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025 and 2024, the Company incurred $441.8 million and $500.4 million, respectively, in deposit related costs on these deposits. The decrease in these costs from the same periods in the prior year was due to a decrease in average ECR related deposits and rates.