WESTERN ALLIANCE BANCORPORATIONWAL
WESTERN ALLIANCE BANCORPORATION Segments Disclosure
24. SEGMENTS
Beginning with the annual period ending December 31, 2024, the Company adopted the guidance within ASU 2023-07, Segment Reporting (Topic 280), which expanded disclosure requirements for significant segment expenses and other segment items. In connection with the adoption of this guidance, the components that comprise net interest income, which include interest income, interest expense and funds transfer pricing adjustments, are presented in separate line items in the reportable segment income statement tables below. Salaries and employee benefits are also presented separately as these expenses were previously included within total non-interest expense. Income statement information for prior periods was recast to conform to the current presentation.
The Company's operating segments are aggregated with a focus on products and services offered and consist of three reportable segments:
•Commercial: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry.
•Consumer Related: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking.
•Corporate & Other: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to other reportable segments, and inter-segment eliminations.
The Company's chief operating decision maker is the Chief Executive Officer. The chief operating decision maker assesses overall segment performance based on pre-tax income and uses this metric to allocate resources for each segment, focusing on budgeting and forecasting.
The Company's segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 25% during the year. Any excess or deficient equity not allocated to segments based on risk is assigned to the Corporate & Other segment.
Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segments to the extent the amounts are directly attributable to those segments. Net interest income is recorded in each segment on a TEB with a corresponding increase in income tax expense, which is eliminated in the Corporate & Other segment.
Further, net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. A net user of funds has lending/investing in excess of deposits/borrowings and a net provider of funds has deposits/borrowings in excess of lending/investing. A segment that is a user of funds is charged for the use of funds, while a provider of funds is credited through funds transfer pricing, which is determined based on the average estimated life of the assets or liabilities in the portfolio. Residual funds transfer pricing mismatches are allocable to the Corporate & Other segment and presented in net interest income.
The net income amount for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, number of transactions processed for loans and deposits, and average loan and deposit balances. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.
Income taxes are applied to each segment based on estimated effective tax rates. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.
The assignment and allocation methodologies used in the segment reporting process discussed above change from time to time as systems are enhanced, methods for evaluating segment performance or product lines change or as business segments are realigned.
The following is a summary of reportable segment balance sheet information:
| Consolidated Company | Commercial | Consumer Related | Corporate & Other | |||||||||||||||||||||||
| At December 31, 2025: | (in millions) | |||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 24,034 | $ | 16 | $ | — | $ | 24,018 | ||||||||||||||||||
| Loans HFS | 3,498 | 67 | 3,431 | — | ||||||||||||||||||||||
| Loans HFI, net of deferred fees and costs | 58,677 | 34,784 | 23,893 | — | ||||||||||||||||||||||
| Less: allowance for credit losses | (461) | (390) | (71) | — | ||||||||||||||||||||||
| Net loans HFI | 58,216 | 34,394 | 23,822 | — | ||||||||||||||||||||||
| Goodwill and other intangible assets, net | 649 | 290 | 359 | — | ||||||||||||||||||||||
| Other assets | 6,377 | 352 | 2,237 | 3,788 | ||||||||||||||||||||||
| Total assets | $ | 92,774 | $ | 35,119 | $ | 29,849 | $ | 27,806 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Deposits | $ | 77,159 | $ | 30,806 | $ | 40,466 | $ | 5,887 | ||||||||||||||||||
| Borrowings and qualifying debt | 6,316 | — | 48 | 6,268 | ||||||||||||||||||||||
| Other liabilities | 1,353 | 91 | 336 | 926 | ||||||||||||||||||||||
| Total liabilities | 84,828 | 30,897 | 40,850 | 13,081 | ||||||||||||||||||||||
| Allocated equity: | 7,946 | 3,400 | 2,570 | 1,976 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 92,774 | $ | 34,297 | $ | 43,420 | $ | 15,057 | ||||||||||||||||||
| Excess funds provided (used) | — | (822) | 13,571 | (12,749) | ||||||||||||||||||||||
| At December 31, 2024: | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 19,191 | $ | 14 | $ | — | $ | 19,177 | ||||||||||||||||||
| Loans HFS | 2,286 | — | 2,286 | — | ||||||||||||||||||||||
| Loans HFI, net of deferred fees and costs | 53,676 | 31,544 | 22,132 | — | ||||||||||||||||||||||
| Less: allowance for credit losses | (374) | (320) | (54) | — | ||||||||||||||||||||||
| Net loans HFI | 53,302 | 31,224 | 22,078 | — | ||||||||||||||||||||||
| Goodwill and other intangible assets, net | 659 | 291 | 368 | — | ||||||||||||||||||||||
| Other assets | 5,496 | 367 | 1,923 | 3,206 | ||||||||||||||||||||||
| Total assets | $ | 80,934 | $ | 31,896 | $ | 26,655 | $ | 22,383 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Deposits | $ | 66,341 | $ | 25,487 | $ | 33,767 | $ | 7,087 | ||||||||||||||||||
| Borrowings and qualifying debt | 6,472 | 15 | 37 | 6,420 | ||||||||||||||||||||||
| Other liabilities | 1,414 | 72 | 476 | 866 | ||||||||||||||||||||||
| Total liabilities | 74,227 | 25,574 | 34,280 | 14,373 | ||||||||||||||||||||||
| Allocated equity: | 6,707 | 2,727 | 1,899 | 2,081 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 80,934 | $ | 28,301 | $ | 36,179 | $ | 16,454 | ||||||||||||||||||
| Excess funds provided (used) | — | (3,595) | 9,524 | (5,929) | ||||||||||||||||||||||
The following is a summary of reportable segment income statement information:
| Consolidated Company | Commercial | Consumer Related | Corporate & Other | |||||||||||||||||||||||
| Year Ended December 31, 2025: | (in millions) | |||||||||||||||||||||||||
| Interest income | $ | 4,692.9 | $ | 2,462.1 | $ | 1,228.3 | $ | 1,002.5 | ||||||||||||||||||
| Interest expense | 1,828.1 | 637.1 | 636.6 | 554.4 | ||||||||||||||||||||||
| Funds transfer pricing | — | (473.4) | 1,206.3 | (732.9) | ||||||||||||||||||||||
| Net interest income (expense) | 2,864.8 | 1,351.6 | 1,798.0 | (284.8) | ||||||||||||||||||||||
| Provision for (recovery of) credit losses | 224.1 | 207.9 | 20.2 | (4.0) | ||||||||||||||||||||||
| Net interest income (expense) after provision for credit losses | 2,640.7 | 1,143.7 | 1,777.8 | (280.8) | ||||||||||||||||||||||
| Non-interest income | 678.2 | 177.3 | 393.9 | 107.0 | ||||||||||||||||||||||
| Salaries and employee benefits | 757.5 | 143.4 | 164.5 | 449.6 | ||||||||||||||||||||||
| Other non-interest expense (1) | 1,354.2 | 557.4 | 1,204.7 | (407.9) | ||||||||||||||||||||||
| Income (loss) before provision for income taxes | 1,207.2 | 620.2 | 802.5 | (215.5) | ||||||||||||||||||||||
| Income tax expense (benefit) | 216.6 | 106.1 | 142.1 | (31.6) | ||||||||||||||||||||||
| Net income (loss) | $ | 990.6 | $ | 514.1 | $ | 660.4 | $ | (183.9) | ||||||||||||||||||
| Year Ended December 31, 2024: | ||||||||||||||||||||||||||
| Interest income | $ | 4,541.1 | $ | 2,499.6 | $ | 1,083.4 | $ | 958.1 | ||||||||||||||||||
| Interest expense | 1,922.2 | 681.3 | 611.6 | 629.3 | ||||||||||||||||||||||
| Funds transfer pricing | — | (650.7) | 994.2 | (343.5) | ||||||||||||||||||||||
| Net interest income (expense) | 2,618.9 | 1,167.6 | 1,466.0 | (14.7) | ||||||||||||||||||||||
| Provision for credit losses | 145.9 | 136.2 | 2.2 | 7.5 | ||||||||||||||||||||||
| Net interest income (expense) after provision for credit losses | 2,473.0 | 1,031.4 | 1,463.8 | (22.2) | ||||||||||||||||||||||
| Non-interest income | 543.2 | 120.9 | 354.3 | 68.0 | ||||||||||||||||||||||
| Salaries and employee benefits | 631.1 | 135.6 | 132.6 | 362.9 | ||||||||||||||||||||||
| Other non-interest expense (1) | 1,393.9 | 486.1 | 1,228.3 | (320.5) | ||||||||||||||||||||||
| Income before provision for income taxes | 991.2 | 530.6 | 457.2 | 3.4 | ||||||||||||||||||||||
| Income tax expense | 203.5 | 109.4 | 90.7 | 3.4 | ||||||||||||||||||||||
| Net income | $ | 787.7 | $ | 421.2 | $ | 366.5 | $ | — | ||||||||||||||||||
| Year Ended December 31, 2023: | ||||||||||||||||||||||||||
| Interest income | $ | 4,035.3 | $ | 2,426.6 | $ | 960.3 | $ | 648.4 | ||||||||||||||||||
| Interest expense | 1,696.4 | 485.2 | 417.9 | 793.3 | ||||||||||||||||||||||
| Funds transfer pricing | — | (554.2) | 358.3 | 195.9 | ||||||||||||||||||||||
| Net interest income | 2,338.9 | 1,387.2 | 900.6 | 51.1 | ||||||||||||||||||||||
| Provision for credit losses | 62.6 | 38.3 | 3.3 | 21.0 | ||||||||||||||||||||||
| Net interest income after provision for credit losses | 2,276.3 | 1,348.9 | 897.3 | 30.1 | ||||||||||||||||||||||
| Non-interest income | 280.7 | (23.4) | 287.0 | 17.1 | ||||||||||||||||||||||
| Salaries and employee benefits | 566.3 | 149.7 | 125.8 | 290.8 | ||||||||||||||||||||||
| Other non-interest expense (1) | 1,057.1 | 430.7 | 799.3 | (172.9) | ||||||||||||||||||||||
| Income (loss) before provision for income taxes | 933.6 | 745.1 | 259.2 | (70.7) | ||||||||||||||||||||||
| Income tax expense (benefit) | 211.2 | 174.8 | 59.5 | (23.1) | ||||||||||||||||||||||
| Net income (loss) | $ | 722.4 | $ | 570.3 | $ | 199.7 | $ | (47.6) | ||||||||||||||||||
(1) The composition of other non-interest expense is consistent with Non-interest expense as presented in the Consolidated Income Statement.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 16, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.