Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 267

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 267
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; 2) cash flows used in investing activities; and 3) cash flows provided by financing activities. Net cash provided by or used in operating activities consists primarily of net income, adjusted for changes in certain other asset and liability accounts and certain non-cash income and expense items, such as the provision for credit losses, investment and other amortization and depreciation. For the three months ended March 31, 2025 and 2024, net cash used in operating activities totaled $1.7 billion and $306.5 million, respectively.

The Company's primary investing activities are the origination of real estate and commercial loans, the collection of repayments of these loans, and the purchase and sale of securities. The Company's net cash used in investing activities has been primarily influenced by its loan and securities activities. During the three months ended March 31, 2025, the Company's cash balance decreased by $1.1 billion as a result of a net increase in loans, compared to a decrease in cash of $525.7 million during the three months ended March 31, 2024 from a smaller net increase in loans. A net increase in investment securities drove a $629.1 million cash outflow for the three months ended March 31, 2025, which contributed to the decrease in the Company's cash balance during the period. A net increase in investment securities drove $3.3 billion of cash outflows for the three months ended March 31, 2024.

Net cash provided by financing activities was impacted significantly by deposit levels. During the three months ended March 31, 2025, net deposits increased $3.0 billion, compared to an increase of $6.9 billion during the three months ended March 31, 2024. 

Fluctuations in core deposit levels may increase the Company's need for liquidity as certificates of deposit mature or are withdrawn before maturity, and as non-maturity deposits, such as checking and savings account balances, are withdrawn. Additionally, the Company is exposed to the risk that customers with large deposit balances will withdraw all or a portion of such deposits, due in part to the FDIC limitations on the amount of insurance coverage provided to depositors. To partially mitigate uninsured deposit risk, the Company participates in reciprocal deposit programs, such as CDARS and ICS, which allow an individual customer to invest up to $50 million and $265 million, respectively, through one participating financial institution or, a combined total of $315 million per individual