Company: WAL-PA
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-047883
Chunk: 257

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 257
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C and renewable energy obligations are included in Other liabilities on the Consolidated Balance Sheet and totaled $242 million and $320 million as of September 30, 2025 and December 31, 2024, respectively. 

The Company recognized tax credits related to LIHTC investments of $24.7 million and $21.0 million during the three months ended September 30, 2025 and 2024, respectively, and $64.4 million and $59.7 million during the nine months ended September 30, 2025 and 2024, respectively. For the three months ended September 30, 2025 and 2024, amortization related to LIHTC investments of $21.2 million and $19.6 million, respectively, was recognized as a component of income tax expense, compared to $55.3 million for the nine months ended September 30, 2025 and 2024.

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the borrower's current financial condition may indicate a diminished ability to pay compared to when the commitment was originally made.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. A summary of the contractual amounts for unfunded commitments and letters of credit are as follows:  September 30, 2025December 31, 2024 (in millions)Commitments to extend credit, including unsecured loan commitments of $1,062 at September 30, 2025 and