Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 99

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 consider the servicing release premium and loan pricing adjustment specific to each loan. The base value is then adjusted for estimated pull-through rates. The pull-through rate and servicing fee multiple are unobservable inputs based on historical experience. Equity warrants are measured using a Black-Scholes option pricing model based on contractual strike price, expected term, the risk-free interest rate, and volatility, which may be adjusted for a lack of marketability. The volatility input is considered Level 3 as the underlying equity is not publicly traded and is determined using comparable publicly traded companies.

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Junior subordinated debt: The Company estimates the fair value of its junior subordinated debt using a discounted cash flow model which incorporates the effect of the Company’s own credit risk in the fair value of the liabilities (Level 3). The Company’s cash flow assumptions are based on contractual cash flows as the Company anticipates it will pay the debt according to its contractual terms. The fair value of assets and liabilities measured at fair value on a recurring basis was determined using the following inputs: Fair Value Measurements at the End of the Reporting Period Using:Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Fair ValueMarch 31, 2025(in millions)Assets:Available-for-sale debt securitiesResidential MBS issued by GSEs and GNMA$— $6,555 $— $6,555 U.S. Treasury securities4,016 — — 4,016 Private label residential MBS— 958 — 958 CLO— 876 — 876 Tax-exempt— 825 — 825 Commercial MBS issued by GSEs and GNMA— 546 — 546 Corporate debt securities— 385 — 385 Other30 40 — 70 Total AFS debt securities$4,046 $10,185 $— $14,231 Equity securitiesPreferred stock$86 $— $— $86 CRA investments27 — — 27 Total equity securities$113 $— $— $113 Loans HFS (2)$— $3,175 $3 $3,178 Mortgage servicing rights— — 1,241 1,241 Derivative assets (1)— 84 45 129 Li