Company: WAL-PA
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001212545-25-000214
Chunk: 154

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 154
---
, or trading based upon various factors, including asset/liability management strategies, liquidity and profitability objectives, and regulatory requirements. HTM securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. AFS securities are carried at fair value with unrealized gains or losses on these securities recorded in AOCI in stockholders’ equity, net of tax. Trading securities are reported at fair value, with unrealized gains and losses on these securities included in current period earnings.

The Company's investment securities portfolio may be utilized as collateral for borrowings, required collateral for public deposits and repurchase agreements, and to manage liquidity, capital, and interest rate risk. 

The following table summarizes the carrying value of the Company's investment securities portfolio: 

June 30, 2025December 31, 2024Increase (Decrease)(in millions)Debt securitiesResidential MBS issued by GSEs and GNMA$6,719 $5,831 $888 U.S. Treasury securities5,504 4,383 1,121 Tax-exempt2,165 2,195 (30)CLO1,901 570 1,331 Private label residential MBS1,161 1,123 38 Commercial MBS issued by GSEs and GNMA599 437 162 Corporate debt securities374 386 (12)Other68 69 (1)Total debt securities$18,491 $14,994 $3,497 Equity securitiesPreferred stock$63 $91 $(28)Common stock32 — 32 CRA investments27 26 1 Total equity securities$122 $117 $5 

The increase in total debt securities of $3.5 billion from December 31, 2024 was primarily driven by increases in CLOs, U.S. Treasury securities, and Residential MBS issued by GSEs and GNMA. Investments in CLOs increased $1.3 billion from December 31, 2024 as the Company shifted its investment mix towards higher yielding securities amid favorable market conditions. Growth in U.S. Treasury securities and Residential MBS issued by GSEs and GNMA from December 31, 2024 reflects the Company's continued efforts to boost holdings of high-quality liquid assets.

73

Loans HFS

The Company purchases and originates residential mortgage loans that are held for sale or securitization