Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 109

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 109
---
 Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected replacement value of the contracts. Management enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. Additionally, management monitors counterparty credit risk exposure on each contract to determine appropriate limits on the Company's total credit exposure across all product types, which may require the Company to post collateral to counterparties when these contracts are in a net liability position and conversely, for counterparties to post collateral to the Company when these contracts are in a net asset position. Management reviews the Company's collateral positions on a daily basis and exchanges collateral with counterparties in accordance with standard ISDA documentation and other related agreements. The Company generally posts or holds collateral in the form of cash deposits or highly rated securities issued by the U.S. Treasury or government-sponsored enterprises (FNMA and FHLMC), or guaranteed by GNMA. At June 30, 2025, December 31, 2024, and June 30, 2024 collateral pledged by the Company to counterparties for its derivatives totaled $399 million, $117 million, and $130 million, respectively. 

13. EARNINGS PER SHARE Diluted EPS is calculated using the weighted average outstanding common shares during the period, including common stock equivalents. Basic EPS is calculated using the weighted average outstanding common shares during the period.The following table presents the calculation of basic and diluted EPS:  Three Months Ended June 30,Six Months Ended June 30, 2025202420252024 (in millions, except per share amounts)Weighted average shares - basic109.0 108.6 108.9 108.6 Dilutive effect of stock awards0.6 0.5 0.7 0.5 Weighted average shares - diluted109.6 109.1 109.6 109.1 Net income available to common stockholders$227.2 $190.4 $423.1 $364.6 Earnings per Common Share:Basic$2.08 $1.75 $3.89 $3.36 Diluted2.07 1.75 3.86 3.34 

45

14. INCOME TAXES The Company's effective tax rate was 18.4% and 21.9% for the three months ended