Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 243

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 243
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 and interest rate contracts.Fair Value HedgesAs of June 30, 2025 and December 31, 2024, the following amounts are reflected on the Consolidated Balance Sheet related to cumulative basis adjustments for outstanding fair value hedges:June 30, 2025December 31, 2024Carrying Value of Hedged Assets (1)Cumulative Fair Value Hedging Adjustment (2)Carrying Value of Hedged Assets (1)Cumulative Fair Value Hedging Adjustment (2)(in millions)Loans HFI, net of deferred loan fees and costs (3)$3,818 $(5)$4,320 $(96)Investment securities - AFS2,130 40 — — (1)Represents the amortized cost basis of the hedged assets.(2)Included in the carrying value of the hedged assets.(3)Included portfolio layer method derivative instruments with $3.5 billion and $4.0 billion designated as the hedged amount (from a closed portfolio of prepayable fixed rate loans with a carrying value of $7.4 billion and $8.7 billion) as of June 30, 2025 and December 31, 2024, respectively. The cumulative basis adjustment included in the carrying value of these hedged items totaled $4 million and $78 million as of June 30, 2025 and December 31, 2024, respectively.For the Company's derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current period earnings. The loss or gain on the hedged item is recognized in the same line item as the offsetting loss or gain on the related interest rate swaps. For loans and AFS debt securities, the gain or loss on the hedged item is included in interest income, as shown in the table below.Three Months Ended June 30,20252024Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item(in millions)Interest income on loans, including fees$(31.6)$31.6 $11.2 $(11.4)Interest income on investment securities(38.4)40.2 — — Six Months Ended