Western Alliance Bancorp at BancAnalysts Association Of Boston Conference Transcript

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

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : I just wanted to follow up on that. So like the guidance that you guys have laid out with the $500 million loans, the $2 billion of deposits, that leaves $1.5 billion per quarter extra. And so obviously, you're building HQLA, you're paying down borrowings. Those are the 2 kind of sources of what you're going to do with that excess funding. But where do you need or think you need cash and securities to assets to get to, Dale, before you can kind of just maintain that level going forward? And how quickly do you think you get there?

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And so if I think about the trajectory of your capital ratios and the fact that your RWA is going to be continuing to slow relative to the growth of your actual balance sheet, you should have a decent amount of excess capital generation just given the ROTCE by the time you get to the back half of next year. And so how do you think about deploying excess capital into share repurchases once you hit that 11% CET1? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 02, 2023 / 7:50PM, WAL.N - Western Alliance Bancorp at BancAnalysts Association Of Boston Conference

Question: Broderick Dyer Preston - UBS Investment Bank, Research Division - Analyst : Kind of along the lines of that question. You highlighted the 17% return on tangible common equity that you generated this quarter in the aftermath of the March Madness, very impressive. The title of the conference, can the industry achieve an ROE above this cost of capital? I would argue 17% is probably a bigger cost of capital, but the market doesn't seem like that's the case today with you guys trading at onetime tangible book or something along those lines? Is there a risk in your mind or what would be the biggest risk in your mind to not being able to sustain that kind of high teens type of or mid-teens type of ROE as you go forward?