Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 176

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 176
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, current credit support, whether there were any mortgage principal losses resulting from defaults in payments on the underlying mortgage collateral, and the credit default rate over the last twelve months. These securities primarily carry investment grade credit ratings, principal and interest payments on these securities continue to be made on a timely basis, and credit support for these securities is considered adequate. The Company's CLO portfolio consists of highly rated securitization tranches, containing pools of medium- to large-sized corporate, high-yield loans. These are variable rate securities that have an investment grade rating of Single-A or better. Unrealized losses on these securities are primarily a function of the differential from the offer price and the valuation mid-market price as well as changes in interest rates.Unrealized losses on the Company's other securities portfolio relate to 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 tables present a rollforward by major security type of the ACL on the Company's AFS debt securities:Three Months Ended March 31, 2025Balance, December 31, 2024Recovery of Credit LossesCharge-offsRecoveriesBalance, March 31, 2025(in millions)Available-for-sale securitiesCorporate debt securities$0.4 $(0.2)$— $— $0.2 Three Months Ended March 31, 2024Balance, December 31, 2023Recovery of Credit LossesCharge-offsRecoveriesBalance March 31, 2024(in millions)Available-for-sale securitiesCorporate debt securities$1.4 $(0.1)$— $— $1.3 

15

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 by major security type of the ACL on the Company's HTM debt securities:Three Months Ended March 31, 2025Balance, December 31, 2024Recovery of Credit LossesCharge-offsRecoveriesBalance, March 31, 2025(in millions)Held-to-maturity debt securitiesTax-exempt$16.4 $(4.8)$—