Western Alliance Bancorp Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Andrew Terrell - Stephens Inc., Research Division - Analyst : Just one quick one for me. I wanted to ask on Page 11 of the presentation, the earnings at risk disclosure that you provide. In the down 100 scenario, the up 2.2% for earnings there, can you talk about just your comfortability with that level? Is that where you would like the company to holistically REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 20, 2023 / 4:00PM, WAL.N - Q3 2023 Western Alliance Bancorp Earnings Call be at? Or any changes you'd like to make to that position? And then can you also talk about what the underlying mortgage assumptions are in the down 100 scenario from a gain on sale margin and volume perspective?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : I want to just follow-up to make sure I was following the warehouse commentary correctly and just kind of piece it together from last quarter. So I think you were up $3 billion in July during the last conference call, and it looks like you ended up $1.6 billion for this quarter. And so it came down at the end of the quarter, and then we're expecting another $2 billion of potential runoff from there in the fourth quarter just on a seasonal and a low point. Am I following that math correctly, Dale?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. I appreciate the clarification. And then I wanted to just ask on the spot loan yields. I think if I remember in the slide correctly, it was 6.99% on the spot rate for the yield, which I guess I wanted to relate that to the residential portfolio to kind of get towards that spot yield. It implies that you have to get more expansion in that residential yield. And so how should we be thinking about residential loan yields going forward?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Yes. It just cut out there for a minute. I guess, that makes sense. It's just that the loan yields jumped up a bit this quarter on the resi book, and that kind of caught me by surprise.