Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 67

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 taxable municipal and trust preferred securities. The Company is continuing to receive timely principal and interest payments on its taxable municipal securities, these securities continue to be highly rated and the number of days of cash on hand is strong. The Company's trust preferred securities are investment grade and the issuers continue to make timely principal and interest payments.The following table presents a rollforward of the ACL based on the Company's impairment analysis of AFS debt securities:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in millions)Balance, beginning of period$0.3 $0.8 $0.4 $1.4 Recovery of credit losses(0.3)(0.4)(0.4)(1.0)Charge-offs— — — — Recoveries— — — — Balance, end of period$— $0.4 $— $0.4 The credit loss model under ASC 326-20, applicable to HTM debt securities, requires recognition of lifetime expected credit losses through an allowance account at the time the security is purchased. The following table presents a rollforward of the ACL on the Company's HTM tax-exempt debt securities:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in millions)Balance, beginning of period$11.6 $8.7 $16.4 $7.8 Provision for (recovery of) credit losses0.4 0.9 (4.4)1.8 Charge-offs— — — — Recoveries— — — — Balance, end of period$12.0 $9.6 $12.0 $9.6 No allowance has been recognized on the Company's HTM private label residential MBS as losses are not expected due to the Company holding a senior position in these securities. 

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Accrued interest receivable on HTM debt securities totaled $5 million at September 30, 2025 and December 31, 2024 and is excluded from the estimate of expected credit losses.The following tables summarize the carrying amount of the Company’s investment ratings position, which are updated quarterly and used to monitor the credit quality of the Company's securities: September 30, 2025AAASplit-rated AAA/AA+AA+ to AA-A+ to A