Company: WAL-PA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001212545-25-000090
Chunk: 89

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 89
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 regulatory capital under Basel III, which includes CET1 and total capital. The FRB and other banking regulators use CET1 and total capital as a basis for assessing a bank's capital adequacy; therefore, management believes it is useful to assess financial condition and capital adequacy using this same basis. Specifically, the total capital ratio takes into consideration the risk levels of assets and off-balance sheet financial instruments. In addition, management believes the classified assets to CET1 plus allowance measure is an important regulatory metric for assessing asset quality. 

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 ending December 31, 2024. Accordingly, capital ratios and amounts for 2024 include a 25% capital benefit that resulted from the increased ACL related to the adoption of ASC 326, compared to a 50% capital benefit for 2023.

December 31,20242023(dollars in millions)Common equity tier 1:Common equity$6,425 $5,807 Less:Non-qualifying goodwill and intangibles644 658 Disallowed deferred tax asset4 3 AOCI related adjustments(535)(516)Unrealized gain on changes in fair value liabilities1 3 Common equity tier 1$6,311 $5,659 Divided by: Risk-weighted assets$56,019 $52,517 Common equity tier 1 ratio11.3 %10.8 %Common equity tier 1$6,311 $5,659 Plus: Preferred stock and trust preferred securities376 376 Tier 1 capital$6,687 $6,035 Divided by: Tangible average assets$82,691 $70,295 Tier 1 leverage ratio8.1 %8.6 %Total capital:Tier 1 capital$6,687 $6,035 Plus:Subordinated debt819 818 Adjusted allowances for credit losses416 348 Tier 2 capital$1,235 $1,166 Total capital$7,922 $7,201 Total capital ratio14.1 %13.7 %Classified assets to tier 1 capital plus allowance:Classified assets$1,009 $673 Divided by: Tier 1 capital6,687 6,035 Plus: