Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 94

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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 as to future taxable income and based on available tax planning strategies that could be implemented if necessary to prevent a carryover from expiring.At March 31, 2025 and December 31, 2024, the Company had no deferred tax valuation allowance.LIHTC and renewable energy projectsThe Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. Investments in LIHTC and renewable energy totaled $591 million and $606 million as of March 31, 2025 and December 31, 2024, respectively. Unfunded LIHTC and renewable energy obligations are included in Other liabilities on the Consolidated Balance Sheet and totaled $317 million and $320 million as of March 31, 2025 and December 31, 2024, respectively. 

During the three months ended March 31, 2025 and 2024, the Company recognized $17.6 million and $19.7 million, respectively, of tax credits related to LIHTC investments. For the three months ended March 31, 2025 and 2024, amortization related to LIHTC investments of $15.1 million and $18.6 million, respectively, was recognized as a component of income tax expense. 

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arises when the borrower's current financial condition may indicate less ability to pay than when the commitment was originally made.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