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

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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 capital adequacy; therefore, management believes it is useful to assess financial condition and capital adequacy using this same basis. Specifically, the CET1, tier 1 capital, and total capital ratios take into consideration the risk levels of assets and off-balance sheet financial instruments. In addition, management believes that the classified assets to CET1 plus allowance measure is an important regulatory metric for assessing asset quality. 

As permitted by the regulatory capital rules, the Company elected the CECL transition option that delayed the estimated impact on regulatory capital resulting from the adoption of CECL over a five-year transition period that ended December 31, 2024. Accordingly, capital ratios and amounts for 2024 included a 25% capital benefit that resulted from the increased ACL related to the adoption of ASC 326. This capital benefit was fully phased out beginning in 2025. 

September 30, 2025December 31, 2024(dollars in millions)Common equity tier 1:Common equity$7,102 $6,425 Less:Non-qualifying goodwill and intangibles633 644 Disallowed deferred tax asset142 4 AOCI related adjustments(406)(535)Unrealized gain on changes in fair value liabilities(3)1 Common equity tier 1$6,736 $6,311 Divided by: Risk-weighted assets$59,637 $56,019 Common equity tier 1 ratio11.3 %11.3 %Common equity tier 1$6,736 $6,311 Plus: Preferred stock, trust preferred securities, and noncontrolling interest669 376 Tier 1 capital$7,405 $6,687 Divided by: Tangible average assets$91,131 $82,691 Tier 1 leverage ratio8.1 %8.1 %Total capital:Tier 1 capital$7,405 $6,687 Plus:Subordinated debt595 819 Adjusted allowances for credit losses495 416 Tier 2 capital$1,090 $1,235 Total capital$8,495 $7,922 Total capital ratio14.2 %14.1 %Classified assets to tier 1 capital plus allowance:Classified assets$1,129 $1,009 Divided by: Tier 1 capital7,405 6,687 Plus: Adjusted allowances for credit losses495