Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 216

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 216
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14. INCOME TAXES The Company's effective tax rate was 19.2% and 23.5% for the three months ended March 31, 2025 and 2024, respectively. The decrease in the effective tax rate for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to a decrease in nondeductible insurance premiums and an increase in investment tax credit benefits.As of March 31, 2025, the net DTA balance totaled $272 million, a decrease of $9 million from $281 million at December 31, 2024. This overall decrease in the net DTA was primarily the result of increases in the MSR DTL and the fair market value of AFS securities, which were partially offset by an increase in credit carryovers. Although realization is not assured, the Company believes that the realization of the recognized net DTA of $272 million at March 31, 2025 is more-likely-than-not based on expectations as to future taxable income and based on available tax planning strategies that could be implemented if necessary to prevent a carryover from expiring.At March 31, 2025 and December 31, 2024, the Company had no deferred tax valuation allowance.LIHTC and renewable energy projectsThe Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. Investments in LIHTC and renewable energy totaled $591 million and $606 million as of March 31, 2025 and December 31, 2024, respectively. Unfunded LIHTC and renewable energy obligations are included in Other liabilities on the Consolidated Balance Sheet and totaled $317 million and $320 million as of March 31, 2025 and December 31, 2024, respectively. 

During the three months ended March 31, 2025 and 2024, the Company recognized $17.6 million and $19.7 million, respectively, of tax credits related to LIHTC investments. For the three months ended March 31, 2025 and 2024, amortization related to LIHTC investments of $15.1 million and $18.6 million, respectively, was recognized as a component of income tax expense. 

15. COMMITMENTS AND CONTINGENCIES Unfunded Commitments and Letters