Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 167

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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 driven primarily by the redemption of $225 million of subordinated debt during the six months ended June 30, 2025.

82

Capital Resources

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items (discussed in "Note 15. Commitments and Contingencies" to the Unaudited Consolidated Financial Statements) as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

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 in 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.

As of June 30, 2025 and December 31, 2024, the Company and the Bank exceeded the capital levels necessary to be classified as well-capitalized, as defined by the various banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables:

Total CapitalTier 1 CapitalRisk-Weighted AssetsTangible Average AssetsTotal Capital RatioTier 1 Capital RatioTier 1 Leverage RatioCommon Equity Tier 1(dollars in millions)June 30, 2025WAL$8,277 $7,237 $58,655 $86,368 14.1 %12.3 %8.4 %11.2 %WAB7,885 7,440 58,574 86,258 13.5 12.7 8.6 12.2 Well-capitalized ratios10.0 8.0 5.0 6.5 Minimum capital ratios8.0 6.0 4.0 4.5 December 31, 2024WAL$7,922