Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 249

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 249
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 fair market value of AFS securities. Although realization is not assured, the Company believes realization of the recognized net DTA of $313 million at June 30, 2025 is more-likely-than-not based on expectations regarding future taxable income and based on available tax planning strategies that could be implemented if necessary to prevent a carryover from expiring.At June 30, 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 $588 million and $606 million as of June 30, 2025 and December 31, 2024, respectively. Unfunded LIHTC and renewable energy obligations are included in Other liabilities on the Consolidated Balance Sheet and totaled $266 million and $320 million as of June 30, 2025 and December 31, 2024, respectively. The Company recognized tax credits related to LIHTC investments of $22.1 million and $21.2 million during the three months ended June 30, 2025 and 2024, respectively, and $39.7 million and $40.9 million during the six months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025 and 2024, amortization related to LIHTC investments of $19.0 million and $17.1 million, respectively, was recognized as a component of income tax expense, compared to $34.1 million and $35.7 million for the six months ended June 30, 2025 and 2024, respectively.

15. COMMITMENTS AND CONTINGENCIES Unfunded Commitments and Letters of CreditThe Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. They involve, to varying degrees, elements of credit risk in excess of amounts recognized on the Consolidated Balance Sheet.Lines of credit are obligations to lend money to a borrower. Credit risk arises when the borrower's current financial condition may indicate less ability to pay than when the commitment was originally made. In the case of letters of credit, the risk arises