Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 111

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 111
---
 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arises when the borrower's current financial condition may indicate less ability to pay than when the commitment was originally made.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 from the potential failure of the customer to perform according to the terms of a contract. In such a situation, the third party might draw on the letter of credit to pay for completion of the contract and the Company would look to its customer to repay these funds with interest. To minimize the risk, the Company uses the same credit policies in making commitments and conditional obligations as it would for a loan to that customer.Letters of credit and financial guarantees are commitments issued by the Company to guarantee the performance of a customer to a third party in borrowing arrangements. The Company generally has recourse to recover from the customer any amounts paid under the guarantees. 

46

A summary of the contractual amounts for unfunded commitments and letters of credit are as follows:  June 30, 2025December 31, 2024 (in millions)Commitments to extend credit, including unsecured loan commitments of $1,063 at June 30, 2025 and $860 at December 31, 2024$13,612 $13,546 Credit card commitments and financial guarantees702 585 Letters of credit, including unsecured letters of credit of $2 at June 30, 2025 and December 31, 2024512 437 Total$14,826 $14,568 Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. As commitments may