Company: WAL-PA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001212545-25-000090
Chunk: 37

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 37
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(1)    There is no investment policy limit for purchases of U.S. Treasury securities with maturities less than 1 year.

The Company's policies also govern the use of derivatives, and provide that the Company prudently use derivatives in accordance with applicable regulations as a risk management tool to reduce the overall exposure to interest rate risk, and not for speculative purposes.

The Company's investment securities portfolio includes debt and equity securities. Debt securities are classified as AFS or HTM pursuant to ASC Topic 320, Investments and ASC Topic 825, Financial Instruments. Equity securities are reported at fair value in accordance with ASC Topic 321, Equity Securities. For further discussion of significant accounting policies related to the Company's investment securities portfolio refer to "Note 1. Summary of Significant Accounting Policies" in Item 8 of this Form 10-K.

As of December 31, 2024, the Company's investment securities portfolio totaled $15.1 billion, representing approximately 19% of the Company's total assets, with a significant portion of the portfolio invested in AAA/AA+ rated securities. The average duration, which is a measure of the interest rate sensitivity of the Company's debt securities portfolio, is 3.4 years as of December 31, 2024.

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

December 31,20242023AmountPercentAmountPercent(dollars in millions)Debt securitiesResidential MBS issued by GSEs$5,831 38.6 %$1,972 15.5 %U.S. Treasury securities4,383 29.0 4,853 38.2 Tax-exempt2,195 14.5 2,101 16.5 Private label residential MBS1,123 7.4 1,303 10.2 CLO570 3.8 1,399 11.0 Commercial MBS issued by GSEs437 2.9 530 4.2 Corporate debt securities386 2.6 367 2.9 Other69 0.4 69 0.5 Total debt securities$14,994 99.2 %$12,594 99.0 %Equity securitiesPreferred stock$91 0.6 %$100 0.8 %CRA investments26 0.2