Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 147

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 147
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)(1.4)(0.7)(0.9)(1.6)Total interest expense42.3 (76.4)(34.1)91.2 (136.4)(45.2)Net change$61.3 $(20.3)$41.0 $142.0 $(49.3)$92.7 

(1)    Changes attributable to both volume and rate are designated as volume changes.

Comparison of interest income, interest expense and net interest margin

The Company's primary source of revenue is interest income. For the three months ended June 30, 2025, interest income totaled $1.2 billion, an increase of $6.9 million, or 0.6%, compared to $1.1 billion for the three months ended June 30, 2024. This increase was primarily the result of increases in interest income from loans HFS and investment securities of $31.0 million and $11.0 million, respectively, resulting from increases in the average balances of these assets of $2.0 billion and $1.1 billion, respectively. These increases were partially offset by a decrease in interest income from loans HFI of $13.4 million as lower loan yields outweighed the increase in the average balance of $4.1 billion. 

For the six months ended June 30, 2025, interest income was $2.3 billion, an increase of $47.5 million, or 2.2%, compared to $2.2 billion for the six months ended June 30, 2024. This increase was primarily the result of an increase in interest income from loans HFS of $58.4 million driven by a higher average balance of $1.9 billion and a $35.0 million increase in interest income from investment securities primarily due to an increase in the average investment balance of $1.7 billion. These increases were partially offset by a $31.7 million decrease in interest income from loans HFI driven by lower yields net of a $3.9 billion increase in the average balance.

For the three months ended June 30, 2025, interest expense totaled $456.8 million, a decrease of $34.1 million, or 4.8%, compared to $490.9 million for the three months ended June 30, 2024. The decrease in interest expense related to decreases in interest expense on deposits of $32.5 million due to