The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Robert Andrew Terrell - Stephens Inc., Research Division - Analyst
: Question on the CET1 pickup from the dispositions. So the $3 billion of contracted sales in the second quarter gets you a 50 bps or so CET1 pickup
or 33 bps net of the CLN. I guess if there's $3 billion of loans remaining beyond that, that aren't contracted for sale just yet, but no further CLN
repositioning. I guess, should we think about the CET1 pickup from that last $3 billion pool is closer to kind of a 50 basis point lift on the CET1?
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APRIL 19, 2023 / 4:00PM, WAL.N - Q1 2023 Western Alliance Bancorp Earnings Call
Question: Robert Andrew Terrell - Stephens Inc., Research Division - Analyst
: Okay. Got it. And then apologies if you disclosed this, but how much should the MSR sale impact servicing revenues this quarter? And any expectation
for go-forward MSR sales?
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: So I have a few questions. I just wanted to ask maybe on the asset sensitivity just given that the balance sheet sensitivity is down when I layer in
the mortgage and then the deposit costs that flow through NIE. Dale, is it fair to say that the earnings stream is liability sensitive in the current rate
environment?
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APRIL 19, 2023 / 4:00PM, WAL.N - Q1 2023 Western Alliance Bancorp Earnings Call
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Got it. And within the PPNR guidance, could you share what your interest rate outlook is for Fed funds?
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Okay. Great. And then on the deposit rates, I think the interest-bearing deposit rate was 2.82% at spot versus the 2.75% at quarter end. The average
was up I think it was like 75 to 80 basis points quarter-over-quarter. So just trying to help think about the step-up in deposit costs going forward?
Do you think that the spot rate is indicative of where you would expect the 2Q deposit rate -- interest-bearing deposit costs to come in? Or do you
think it will kind of be another 70 to 80 basis point increase?
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Got it. And just on the intra-quarter deposit swings. I think it was the March 9 update you gave where you were up $8 billion for the quarter. Could
you tell us what were the categories that drove that upswing? Which ones kind of flowed out? And how much of that you could expect to maybe
get back? And if that's encompassed within your guidance for deposit growth going forward?
Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst
: Got it. And if I could sneak one last one, a little bit tiki-tak in, just on the mortgage servicing rights that you sold. Could you maybe ring fence what
the unpaid principal balance was? I mean if I just look at the valuation, it looks like it was like maybe 22-ish billion. I guess maybe if I could back
into it, but just help us ring fence that. And then I just wanted to clarify that there was no gain on that flowed through the servicing income line
item this quarter?
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