Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 157

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 157
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 Other borrowings decreased $1.7 billion from December 31, 2024 as deposit growth facilitated a reduction in overnight borrowings.

Total equity of $7.7 billion at September 30, 2025 increased $983 million, or 14.7%, from December 31, 2024. This change was primarily attributable to net income of $697.4 million for the nine months ended September 30, 2025, the issuance of preferred stock from the Company's REIT subsidiary, and unrealized fair value gains on AFS securities, recorded net of tax in OCI. Proceeds from the REIT preferred stock issuance totaled $293 million, net of issuance costs, and was recognized as a noncontrolling interest in subsidiary. These increases were partially offset by quarterly dividends to common and preferred stockholders as well as REIT preferred stockholders.

Investment securities

Debt securities are classified at the time of acquisition as either HTM, AFS, or trading based upon various factors, including asset/liability management strategies, liquidity and profitability objectives, and regulatory requirements. HTM securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. AFS securities are carried at fair value with unrealized gains or losses on these securities recorded in AOCI in equity, net of tax. Trading securities are reported at fair value, with unrealized gains and losses on these securities included in current period earnings.

The Company's investment securities portfolio may be utilized as collateral for borrowings, required collateral for public deposits and repurchase agreements, and to manage liquidity, capital, and interest rate risk. 

The following table summarizes the carrying value of the Company's investment securities portfolio: 

September 30, 2025December 31, 2024Increase (Decrease)(in millions)Debt securitiesResidential MBS issued by GSEs and GNMA$7,065 $5,831 $1,234 U.S. Treasury securities5,388 4,383 1,005 Tax-exempt2,168 2,195 (27)CLO1,888 570 1,318 Private label residential MBS1,213 1,123 90 Commercial MBS issued by GSEs and GNMA622 437 185 Corporate debt securities350 386 (36)Other68 69 (1)Total debt securities$18,762 $14,994 $3,768