Western Alliance Bancorporation (WAL) 19 Apr 232023 Q1 Earnings call transcript

Good day everyone. Welcome to Western Alliance Bancorporation's First Quarter 2023 Earnings Call.

You may also view the presentation today via webcast through the company's website at www.westernalliancebancorporation.com.

I would now like to turn the call over to Miles Pondelik, Director of Investor Relations and Corporate Development. Please go ahead.

to Bancorporation's welcome conference quarter and call. you Western first Alliance XXXX Thank

are and Bruckner, Vecchione, and speakers Ken Our today President Chief Officer; Officer. Dale Financial Chief and Credit Tim Chief Gibbons, Officer; Executive

to I the presentation forward-looking uncertainties, company undertake today's and does the note to as Except obligation are contains over Ken, not statements, to Before please update hand required statements. that assumptions. subject which any forward-looking risks, call by any law,

that company's could of materially X-K discussion the including available uncertainties company's are to statements, risks complete on the which actual more differ website. cause and from please For results refer SEC Form forward-looking any yesterday, the to filed the filings,

opening remarks, like for the I'd Vecchione. call turn Now, Ken to over to

start to mid-March, bankers by in month. Alliance the to meet like would Since thanking our they clients for over collapse the people I competitor has Miles. Alliance their of you banking Western in of for worked needs. placed last clients' relentlessly our the to team trust and the Western efforts our extraordinary Thank three

banking our Flexibility the of in with of industry. our recent and variety in a commercial contributed customer value-added strategy deep in national diversified of wide a broad relationships all geography, the banking sectors firm's deposit and resilience of to range commercial turbulence face

this liquidity through our focus navigate the over levels past and time. quality, asset helped several capital us believe We have rebuilding on sound stable financial and quarters all fundamentals, challenging

core will to non-operating immediate charges an capital, impact, and included relationships management surgical relationships we Balance repositioning deposit, return holistic resulted continue of strong in lending, prioritize well-positioned As with assets and to needs. accretive profile. forward treasury have we to and expand allow net renewed $XXX move regulatory and loan of million, our client a us are with client after-tax perspective, sheet reclassifications sales achieve

increasing ratio X.X%. tangible these $XX.XX end share $X.XX X.X% share, book million $XXX quarter, to through the for and value net from achieved of charges CET of earned earnings per the per Company and year income of to

Immediately outflows our to after few levels. in mid-March, strategy groups events inform will experienced going WAL returned concentrated Outflows soon a forward. net were deposit exogenous that normalized funding of key the elevated client that

taint relationships. approximately given $X.X billion deposits the were SVB's technology of less XX% anticipated of and from our Suffering also XX% failure, withdrawn, lending have or than that innovation

warehouse on a stable mortgage net with fairly Our to we single a that to more Alliance return remained stable loss the only customer base, with Western business of expect deposits.

quarter. normalized from settlement Balances very While were quickly. volatility lows stable clients, recently quarter experienced some services acquired initial over

Our regional only divisions, of a deposit and the strong source saw business as modest relationships local brands metro strength and small, attrition. core mid-sized acted

acted are included we Non-core regions, forward. other reflexively, that approximately stock $X.X market withdrew non-deposit fiduciaries, more and title going volatility, billion. companies and These prioritizing are which we

our XXth, stabilized to March of returned of deposit as deposits Since to healthy April $X.X billion and $XX.X a flow XXth. with growth trajectory billion

XXth. April deposits excuse to of Some were million beginning HOA to business -- including beginning $XXX never the since since the of with higher the me, lines by impacted, year year

that management, relationships. with on and deemphasizing Our than more model already treasury while or business product models service flexible to banking segments monoline credit customer service one concentrated worth banking while credit-only its or failed. fulsome customers will include have of depended single diversified with proved our and XX% client QX, prioritize continue us in types needs industries we

XX% deposit to represented crisis. and channel we'll onset which deposits Overall, solutions deposit than continue of the like greater and we'll a successfully do management of for those these. proprietary of retain offer that at deep-rooted It ours is HOA not worth of more treasury integrated also relationships total the mentioning technology we single

year the taken as of end, market our grow XX% of We desire concrete to to to our deposits place banks. the insured April protection. steps and XX This the largest decile XX% of Since for US we total deposits surrounding have approximately deposit XXth. responded client's us among scrutiny top dramatically in enhanced well

uninsured shift coverage of as have results and This their XXth, at now deposits stands to April insured accommodate from resulted towards funds desires XXX%. protected. deposit Also depositors' safe to the

We will these safety deposit provide continue times. client accentuate to alternatives uneasy in that

earnings XXXX important navigate experienced volatility on since through QX to WAL advance a than in CETX growth, I of these achieving and the initiated faster think deposits described greater it's an developments liquidity our slowdown, mid-March. and than strategies in our as offer in industry thoughts XX% and growth calls, loan QX loan ratio. on deemphasizing in initially through some economic such growing

of lessons moved by recent stress have to a to medium [ph] XX% system, we loan up the are term deposit learned in CETX targeting we the and banking ratio. mid-XXs goal our Formed

this measured, but we onset engaged our operations. of acted decisively source stakeholders with business through turmoil, normal maintained updates financial At impactful various the and liquidity position to to tap enhance

deposit on will Looking forward, our diversification we our building [Indiscernible] deposit-led focused and liquidity and also are strategic increased while top capital streams additional strategy. additional growth reaffirming remain goals.

to over To capital than our greater XX% of end medium to but term, ensure will we loan aim to before by expeditiously the deeper deposit quarter. rebuild relationships. second We to drive client the adequate the cultivating organically, mid-XXs with the look ratio liquidity

is target CETX XX%. term medium Our

environment will Emulating sustained that likely become response banks an efficiency in growth recent to regulatory have industry the to stricter deposit larger core typically capital step that be important will in turmoil. drive larger

to ratings. liquidity, on moderate lower hopefully investment-grade Higher dependence capital, higher should core more funding rate attract lead and and deposits higher

book, Accelerating sales. planned. our held reclassification and from balance HQLA specific and reposition of certain loans something to liquidity investment non-core and for to assets chose also sheet held through capital, assets WAL total we in targeted very for sale that we securities growth

adjustment $X approximately million $XX.X impacts. of after-tax value reclassified HFI includes P&L fair approximately an recognizing future X% capital We expected billion and that loans, of

the relationships lending, full and deposit, are as regulatory needs. accretive management After-tax treasury liquidated capital and develop to to to us loans charge with will client allows be efforts immediately

made sales quarter loan X/XX. $X $XXX were We adds with contract, to executing with under that before another already progress significant points CETX. not by this million billion but in close executed basis of actions strategy XX already QX end

$XXX sales fund reclassification unwind warehouse select of million, CLMs high time charge. all of contributed on resource HFI the cost security sales mortgage help MSR the million, of $XXX equity and to offset

In addition, losses HFS the Difficulty] expeditiously QX the execute $X our [Technical loans of remaining smaller sales remaining we are Note realized loan incorporated sales. are on we moving Such expected. to HFS than into numbers. billion

still ratio to X sheet June CETX These X.XX%. actions to basis our by capital XXth. adjustments repositioning, the with advanced reaffirmed CETX points we our XX% mark-to-market surpass Even from plans balance

locked should When the HFS unwind CETX subscription our EFR, the CLM, this remainder of for [Technical loan contracted considering sales sales month X.XX% and we've the already which Difficulty] lines, of before considering CETX the organic above XX%. ratio generation above loans, ultimately in of capital or and push our completing

to sources billion BTFP and contingent liquidity, normal be and contractually greater capacity used has needs. Western higher be Finally, HFS of the significantly near-term loan agreed operating Access Alliance and $XX sales, cash customer billion pay balancing and to accessed sources with cost to completion to increases $XX billion $X of return to to down financing. of more will of borrowing than are than short-term to and which in FHLB asset borrowings more unused

to sources. opportunities from additional evaluate to establish secured continue borrowing other facilities We

I'll take financial time, through the At Dale this let you results.

Thanks Ken.

the Turning adjusted net of was excluding million million. Western charges. income $XXX was Alliance results, $XXX revenue earned while first Net adjusted to quarter net $XXX total income non-operating million,

to an with EPS $X.XX was adjusted transferred loans was share as decline per $X million billion. Earnings deposit $X.X. of matching of decreased HFS the $X.X $X billion Quarterly

adversely return or on on basis quarterly loan charge-offs average average [ph] annualized. common of sustainable earnings. Operating go-forward and increased million $XX Total net XX.X% assets assets and graded $X points tangible equity were million provides X.XX% five and return

net pre-provision In for revenue group of the quarter, Total was million XX% an $XXX million. $X.X and adjusted $XXX was quarter. increase net Western of revenue the increase of Alliance an million, year-over-year generated

from assets assets, quarter X.X% on a Average during lower Net interest $XXX yielding decreased X% earning interest to of $X.X the billion, million. creating income cash while the earning grew new. increased drag

income banking shoots non-interest prior while the $XX.X to $XX.X million from to continues quarterly GAAP negative $XXX adjusted non-interest operating environment. decreased Mortgage $XX in AmeriHome million, the its see green to increased $XX as million million revenue million quarter. grew income

basis Production paved win from bank margins have and the normalized Retreat XX capacity widened rates. for industry margins center points has and of has higher to rationalized. been of lending levels more market the way money historically large the a corresponding

to asset and quality servicing to produce strong speeds, attract from investors. assets the underlying continue rights attractive prepayment lower given interest The continue returns,

million to come again. to life to $X end. MSRs at par provides Held at billion $XX.X of Investment and million decreased quarter for our $X.X $XXX before [Indiscernible] of deposits sale path and a million market with the we decreased QX million $XX.X long flexibility

million. to short-term of MSR balances $X.X credit $XX.X of increase lien to decreased $XXX an $X.X, billion over in Total million. due notes to $XXX quarter the offset prior $XXX partially billion quarter redemptions borrowings of borrowings million in by the increased

$X.XX of the Finally our the over go-forward investment or interest approximately and $X.X credit to securities per our go-forward million We value decomposition year. the and X.X% sold quarterly million grew as $XXX tangible over predominantly CLOs. billion of book share to $XX.XX quarter $XXX up announced we increased drivers, XX% prior prior nearly portfolio debt securities

such assets further primarily treasury $XXX million, as part to approximately strategy our of increased quality liquid bills, position. high enhance consists investments Other liquidity our which of

end from Investment X.XX% quarter to the an of yields spot of basis increased with XX third X.XX%. rate points quarter

least spreads. relationship from economic accelerated the as sales existing March end uncertain credits -- reclassification balance to credit growth loan slowdown loan we loan $XX.X billion. the in with quarter. at targeted or environment, sale credit limited in for early lowered actions to primarily held Given and $X credit through This balances limited we billion, period approximately in These curtailed first right-sized our of

of overall Loan repricing of environment yields higher spread end X.XX% and continue rate of with to quarter into average rate rate an to wider X.XX%. benefit spot an the compared from

is portfolio of loan Our XX.X%. residential billion non-interest match-funded bearing with deposits $XX of

margin. of a HFS subscription the credits loans funded lend for mentioned now support, guide. were quarter FHLB are Areas our X.X% which sale lines. a our would transaction, we deemphasizing. cost we buoyancy Leading margin call syndicated resulting sales to decomposition end nearly of Turning current net have be X.XX%, held interest spot of capital in portfolio held with transferred and and modest billion spot for loan half previously a yield the and loan investment reclassification, $X.X X.XX%, by to had to borrowings

of XX% billion end cost XX% non-interest to This our by Total at cash a CDs of deposits, was bearing driven XX to of no compared average primarily comprise of in while rates quarter $X.X total X.XX% of an deposit credits. XX% basis mix DDAs points that which increased deposit to earnings increase payment of spot X.XX%. now comprised

Notably, rate. than at for the average DDA for lower migration rate bearing the is lower from non-interest than bearing the was interest interest checking rates spot average as quarter the accomplished checking

But the quarter basis points compared from was money to deposits. spot rates and accounts. as split also savings larger to demand billion accounts increased The X.XX%. between roughly attrition deposits interest XX the rate market be decline tended and bearing cost and money higher to were in $X ending deposits balance the lower X.XX% market of evenly for quarter during

Overall, nearly the or actions balance to of to and million in quarter the light two the in days due net interest repositioning $XX due prior remainder X.X% half decreased income the sheet deposit over fewer loss. quarter,

of we $XX contributed points. ensure liquidity, XX cash liquidate compression borrowings, we had as to million, to sale to sheet decline balance Held these and X.XX% increased loans due assets. XX points margin an compressed on Net which excess short-term the for basis basis drag interest incremental will

we up income forward, that is interest than rate sensitivities X%. with less or estimate neutral down, changing shock net by balance Going either our only fairly sheet rate interest

in to was XX% increased quarter the and ratio efficiency year-over-year. flat adjusted Our XX% from

$XXX of deposit $X decrease assets quarter. on the million of of This in PPNR the to seasonality the revenue return related a or XX cost points prior credit from basis the quarter, QX a fourth X% Higher decrease and Pre-provision higher a from for rates was XX% during resulted in million increase $XX the primary increase of period were net last same the year, million X% quarter, from and quarter. QX. drivers normal earnings the of

million migration credits in The modest this quarter. is We aggregate nothing of $XX graded significant our increased adversely deterioration in to widespread looming. indicate see this

of loans in points basis were increased charge assets net or points quarter. XX non-performing or Really $X Total $XX one basis million loan million, the fourth loan five compared points net charge-off total basis of assets. to million $X.X offs average

million $X these to the release decreased if were prior the credits as for held from loan in total were marked million quarter loans sale. transferred Our ACL to ACL $XXX down

basis to funded some rate and of loss XX to ACL warehouse in transferred assumptions, low capital points had XX increased subscription loans lines the call credits. as to Loan and QX mortgage compared loans leaving

associated Additionally, the with economic real the estate softened. commercial outlook was reserve increased as

ratio equity common Tier should equity quarter, to expect tangible were in dividend income. quarter $X.XX total common per X assets second Tangible X.X% ratio [ph] $XX.XX.. increase the quarterly equity both bolstered of Inclusive net rise per in book we share share, in the of X.X% to tandem. cash tangible payment the CETX Like common of increased our our of and by $X.XX value for

from the benefited bank's as ascent a power rates AOCI fell Tangible of when book as the value share last impact surpassed TBV with crimping charges after company reduced repositioning. continued rose. the long earnings also associated book balance prices year bonds of value per its

the return will back call Ken. I to

Thanks Okay. Dale.

the guidance to of priorities QX the earnings out our rest driven calls informed by strategies for by be Our recent banking continues QX XXXX XXXX disruptions. and laid and in the and

In will equal these to ratio, our deposits to we more continue our loan levels, clients, serve by rebuilding our our deepening country's -- aligned largest client to sophisticated banks deposit depositors' capital banks relationships. these to be the commercial to insured want from lowering as with bank We order peer to enhancing our liquidity, be seen and and best perspective. aim

intimacy, compete what where call, Suite relationships. to performance, drive and on I us service, can relationships management allows banking differences C deeper these Eliminating more

as sheet slower growth earnings to balance reposition economic the potential we ahead repositioning, Organic capital we'll company grow continue for a of slowdown.

tell what me let going you So, this means forward.

sales our end in that by imminent to X. HFS QX we capital growth. X% capital, and planned the to loan through of organic and lift expect exceed discussed CETX Regarding we XX%

capital CETX which medium tangible by equity be term, common we continued will generation. the an XX% Over will driven our and strong average ratio, on target return

expected over As sales, we lower target. and loan bank our to time loan muted payoff are more will to grow loan This approximately HFS at a deposit to and short-term more traditional mid-XX% towards borrowings complete we our planned ratio growth. billion quarter Deposits return $X exceed will funding. a

Net and interest deposits. anticipated is to loan X.XX% increasing price the in expected competition for rate margin compress to XXXX slower X.XX% to growth flat slightly given environment,

further in grows, As accelerate our will securities enhance to our flexibility. we liquidity liquidity look growth HQI book to

partially deposit efficiency of should leverage costs, slightly to operating excluding by increase ratio, given the the our Our impact mid of our XXs to the high offset smaller loan business. inherent book,

remains steady Asset to expect XX net charge five to range first begin maybe environment, charge could she goes. And points economic quarter's and quality and to offs offs net the basis. we future well-positioned as then up normalize basis on between

interest XX% for the to earning small levels XXXX expect year X% from down PPNR assets we higher due to costs. borrowing Overall, full of to be and XXXX

our core well-positioned continue sheet Alliance even a we the to better better reestablish as execute deposit institution and for we see repositioning Western balance and future. growth as efforts our However, trajectory,

Tim, Dale, and take your happy time, I this to At are questions.

Instructions] you. Thank [Operator

today of line please go question Steven, ahead. Alexopoulos with from First comes Steven the JPMorgan.

I wanted the to Hi, start first. picture everyone. question with big

So, focus When now do just one, get on of done is repositioning more you past over of these to when down company terms to in from on the primarily you're fair the get shrinking exiting. more in there, you following-up down the relationships? right, right? a shrinking fuller segments, years your non-core balance core bank quarter, to relationships, the has which these few With growth come sheet portion the

still you Alliance a after is X.X? even Do ROE, profitability? Alliance that? Are bank? then growth West on more What what important, like focus Western look And you does

there. couple of A Okay. things

and One, to Let me exited the interest what that had let's we that's we company excess Again, there. it non-core and basis $X we asset Fed those net EFR they were alternative unpack some when at excellent them have in was points, reflected we did there that of exited. to the loans XXXX income liquidity good back lines we sitting and that had and billion to our was a all. XX in quality the cash earning of go days syndication $X all the billion increase

we continue as to from not We're reemerge this.

first, up that growth on things and is First want and levels million. focus near-term $XXX ratio on our to muted the and concentration in and plus focus about we're also that moving say, loans more do down again to I capital deposit a moving growth going heavy a with deposit

hit emerge and to ourselves CETX the XXXX we ratios. we QX liquidity about from and As our into for just should as into ratios multi our we hit deposit position XXXX, enter ready be

Now, here grow. we've to got plenty of opportunity

see that have with us, to some you'll have go past. the helped that always always us strengths think us in core of I our grow been

warehouse still loans of lending is C&I active. out

Florida to economically strong been in in driven well. going banking. Now, be hotel of book. good Note be is We've going had CRE, our performance to lot as out always financing We've especially is there.

of it's to all into the is end the dependent year, number remainder the in we well. we lines go the very also want at I Again, the clearly upon developing. have that things course to we've are the to working picture, that of where during will back say different of But on big XXXX a this moving But some XXXX. business of economy we done of

loan some we we've lines we've of to business a are as those out on deposit done And on are new and of every Some the them sure half, the propel growth. opportunities year and side side. and year, rolled make

is to to what grown be both got loans to past, that XX% on say, you've But more per if cautious and and we're do the to XXXX from paid on back deposits go loan going I growth, XX% we've we've in look a right? been accelerating going about deposit we're that. And never will but average again -- little year, on you Steve, seen to the side. I XXXX, think backwards We

So, that information never point steady in with which the one, but that I to marketplace, very going another a we get we was inappropriate, I grower. a have think disruption some to time. we're to be was put experience in But think can

peer to for don't we've that's the I don't end necessary should going always I we're we to at grow trend, think able trend very top peer above think grow just had. of us. be I think like

really taking these that might here we're I surgical of add things. a types on strike

to we call, a we're into we liquidity. as it's to stuff exiting still relationship. but that way of from be is when for syndications muted. the example, mean thinly kind step Ken that entirely, that going received space deals I a really are continue of can bilateral So, the marginal really fairly we that's got we fields complete cost we away from said Those marginal a We're do where did And capital where that here, not no deposits. had lot and priced benefit and

you. Got one maybe it. That's helpful. Thank follow-up. And just

decline billion many from $X.X Bank. of Innovation out through that segment. So, if the the of Tech the heard the quarter, deposit & March, of out We the I this beneficiaries they point you're Valley Silicon at were in look banks the flight calling at regional

them they customers accounts or just which What bank. of the just and to Thanks. was through you did beneficiary level? I balances your they bring this but also, from watching And deposits stock have they hear did have price a you down been drove take insured close could out it? panicking. your thought to What would your period,

didn't deposits out. One, they accounts, Okay. moved they close

of to company, Tech and technology up of XX% outflow. Bridge And arm was our kind the Bank, area. of deposit out So, is as our deposit which outflow, challenger down billion Science let's set a $X SVB. came and always the innovation of Innovation break Life the

what during said, the morning of people I XXth, the So, think most like Well, panic looks Monday SVB. Alliance. looked is Western and here

of innovation interesting, and But in XX% price. our the was what lot our Now, our total was on pressure right? of tech stock sector, deposits was still, and only of there about a put loans XX%

I'm through social click heavy stock shareholders price a social some nervous, a you larger the to management that my treasury sorry, too, down corporates what right? which money, and the talk click And move be saw had moving the forced little a we send better which got their I funds stock later, about bank I'm can run, received commentary -- of saw drove point price down, to the You out, and safe media and sorry. which that was this and modern-day but media, then phone mouse, we then see systems going call said, to we

the come we're doubt that center but said dollars the crisis our banks. that And lost come and happens. see same to see right? back. going it, these haven't went and should went of with because over, larger out out, When we'll money everyone the banks, all And to we come all if wait XX% is dollar-for-dollar. they touch wait And back folks, we'll they if back thing. I

the second relates question we to XXth -- during to and the and as pulled fighting the of On of Tech deposits XXth fight, the on were it the March. Innovation, part still on your

Now, we begun happen has say $X bit our comfortable we quarter. why us that more Tech informs begin change per and in growing and to feel with kind to a are deposit of to that Innovation, that billion optimistic and will growth little

it. Go Okay. Dale. appreciate ahead I

the In really, of did think with original we business. for get And Bank. question of Silicon Valley -- think the Bank, basically caught is to our so this? terms I us, and Silicon only we of competitor prime XX% Bridge their stock have entire the kind that for it situation relationship in we versus starts the is of how But was up because Valley the it's tie total

quickly is SVB, that but looked into the happened perception else metastasize in narrative. is think when that they who short what they but run around issue I on started a -- So, -- so space,

And put. X,XXX stock bought days, that we at what activity, Mind times lot of issue we most you, this the somebody volume. you Friday, if $XX. But look And is our normal is March on a trade trading at at $XX wouldn't about our all. was traded common options our we XXth, options

and they got that on $XX money, March expired had at an and week, XXth the they're agenda, A.M. then before morning, opens next So, the market the Monday week. somebody X:XX

it's around down, New And and premarket it selling. session down. there us, Times, nobody the pretty was to York down, push easy a treats move price premarket stock so

And a so Monday opened $XX on we've morning.

that's was. what Well, the print

And over so you're depositors my that an that down when hence saw $X oh XX% they withdrawal say, weekend, Monday. the gosh, billion triggered on

$Xs quadruple Now, and we on. trading goes That's into closed traded down and then on of the typical not nearly what terms at $XX per bank share. in

depositors think uptrend flat. I stock of a and then terms But down again. so drop it price on been week, after -- the had basically calmed kind Tuesday XX% sharp entire on we've since recovery and about withdrawals that we And this of been in

I it. Got the color. all appreciate

The Ebrahim Poonawala Please go next of Bank question line of comes ahead. with from America. the

Thank incremental around cost of you you. sort terms how to talk just given to I And the of guess maybe segments? growth we thinking in us deposit new come forward-looking, your the where the can start the what's you bank? Yes, about are if deposit thinking business coming of expect growth about just that's and there? perspective, outlook, into from -- deposit

this get I'll and the put first half Dale take up. second the I'll Okay, half. I'll

technology, year segment, which back use and That's deposit here, from company's those learned way, of to move. accounts deposit the technology, conversion. see unaffected terms they our coming one or lessons of connect take when then In growth the can't dollars office connect and HOA management was our a by you the nine-month and we growth, to to technology to APIs HOAs a the

at that deeply can rooted clients. find And and very of so us the what one expect to where looking else do one be channels just place the our of into growth. where is offices has things we we HOA we're that is back and informed But

also actually brand take while then back warehouse early new And Our the stronger the and XXXX just we group services, settlement services, year. building I the would natural of building contribute trust. during regions XXXX, those have have you very than the to corporate have should launched and escrow All build strong we course I'll lending thought. lines, recognition, business

range Bank, during the Bridge Arizona, a First only Bank that of Alliance the the regional we saw Torrey and outflow, bank Pines, of Bank And for on X% Bank in so Nevada, Independent to non-tech X% side. brands,

metro is we're deposits, to also make deeper us, bring effort there going like because that more commitment concerted that, banking our a for consumer so okay? to in of a And and

that Tuesday. And mostly and really, conversation, client. a on to had Monday the consumer learned, conversation those said it not can was just on were interesting, on? called your Steve's that nine was you, And of from hold before, but right, of be with is if Monday, we shop, honest we've a the and we very We're that up going someone and If deposits and us question sticky. that Tuesday, things what's to to one really question this combine with the crisis Monday said, out during XX times,

are out did it and rationalize money of if into. a a a really quick, rationalize corporate they themselves larger But is person hard you move to that your you position not

it's So, to person. hard decision fear, to that of you get we -- if move made out a if

banking that, every and them that couple a who weeks. our that's clients of conversation know, they depositors. to all Well, metro called That's a grow. Dale way on right? They given trusted And

our development of more specific give felt. and specifically data, business that to very very one X-K things put is important learned the it of more officers really times could the we out certainly specific information trouble in market, the they them we is our talk better so was but think data. to the I But really, and clients for helpful. were done very Additionally, finite, terms that also of The more concrete

here sorry, do your to to is I'm If in have? like How and and then great. XX very customer you clients, was insured into all they you believe -- for what your needed could that what much we is uninsured? talk helpful. When data that coverage put you taken marketplace have BDOs to service the the loan then see said, gee, years, But we've things and been that, and

Dale So, just question I this side on went the there. let a here little I'll on cost your than further take

Yes. Yes.

know last as because year, beta We costs, we're was the that the all others raising talked not were where was along, funding perhaps market the than is. we were terms say trying beta playing our better Regarding were how we're and to doing that We our we the cost. game. there we price fast where lower in of is what

today, so where are. kind we that's And of

I funds. Well, in different really at meaningly pull many think can something as don't in effective much than banks deposits

so do And can of divisions, whereby a think that, we've weeks. current by we on for that's deposit initiatives array what have past our and done but continue of variety we've terms of we what we can the I well dialed gathering these in, demonstrated execute do, what three -- to as in that's as

And quarter guess, do is the Fed if you XXXX? exit I from maybe, done the rates at the look margin sale how expect where to think NIM the and X.XX%, different way, with outlook, X.XX%, when a Dale, flat you do next you rate hike about there, remain

where where it's kind really mean, of that that guide is -- I Yes, is.

ramp. X%, in volatility we is have different our less rate As nil, than net down, environments I margin around up or mentioned, shock whether or the interest almost income

little that we terms are that's I bit what things it's that in X.XX% So, think a that, of it has revert depressing go important number. this this X.XX% from a intact. that than just guide of to of mean couple to lower in I

FRB very down the an and points. on I basically, at weeks at took and whereby billion. caused dollars mean sheet from our spread. ended our for days, to That FHLB a we we in cash. basis quarter was billion cash the has three we balance some had it XX that is by That large position March, those was down large of One the margin it had $XX we upside close $XX or of

talk loans out we X.X%. are addition, of of In about the HFS spread have that a that here coming

You basis margin rises our our take of X.XX%, points. that about out XX margin at

is So, the depressed. X.XX% already

slightly, with And so declining I going modeling. level think helps or that holding the -- maybe that

leave I'll Understood. Thank here. you.

question Casey Haire ahead. go Jefferies. next comes Our from Please with

Can by excess to as continue end to grow math, deposits you get if to there you XXXX. I and -- the morning the Good by use what thanks. $XXX By wanted the paydown. touch million, Yes, guys. ratably to the to loans, guys borrowing respectively, level? billion, you guys mid-XXs the borrowing on -- $X of expect be summer get at we you that liquidity my

Yes, I I obviously, lower your mean a dollar a down. in kind year But are we'll mean, be down, you, I of for take going them mid-single-digits, think position bottoms level. to borrowing Casey. come the to I could operated with yes, the last that. we have than don't figure

FHLB and we accordion to for and be But people come are a the deposits still basically is liquidity also in using like good as day-to-day withdraw, expect this. things

operating so And for want to don't standard just FHLB do we source is that's don't the pretty do want rely we What to something liquidity. a that. like stable to on

job, we it about sooner. right. I right. do a think informed quicker. your But think numbers are be our better come direction -- activity, bit little your will right? to get to loan We a maybe your I will if deposit numbers is That that about So, could down ratio deposit by

obviously, ratio or -- last got the that. guide, just lot in going the I Okay, the And I a month. there's great. near-term on on efficiency in

the rate an starting you give for second wondering quarter Just as expense run point? if a just could

-- the many the rate yes, out I've mid say the And expense what guide or is rather high XXs. said calls, from I'd for run business. comes really -- to I the I'd the think ratio, us is that exhaust say rather is efficiency this the on fumes in

and we you of we doing sacrifice. get of so in We're we've that programs We technology kind technology it management [ph], had certain know can into and itself money want way And fail. risk things really to the So, our technology, build where not been going was put we payment because then by won't work terms systems, sacrifice the much to and to well. all we back in EPS. into no our

So, we're with pleased very that.

go-forward on deposit in we able some new side. from XXXX, the growth And the is -- the have also have around the reason to since why cultivated XXXX deposit and businesses that specifically confidence going we're

to things those going are So, continue.

put sustainable If then into have going we deposits you're not company money loan sustainable and don't the grow, to growth. to

of overall telling give is the answer I presented. QX, to inside but very XXs didn't just do going you, high outlook I'm a to to you we're mid I what that specific So,

guys rates about the sound for layer ROA I that HFS then Got you. ROE. you and X.X% XXs spot me. right? an of take and And for sales just credit the the you efficiency tangible XX% in Does about last deck provided one give slide high that and If that all in I ratio, get

the year, said the -- X.X% mean, or ROA, for you less? for more you

to balance spot you like all then rate with the yes, run of Well, that give the $X fully guys and credit giving the restructuring, offloaded. Yes. sheet a X.XX% billion rates

Yes.

efficiency a think And you're high the don't So, maybe said, a know ratio because instantly. what you're you off I and little it's means. jumping bit to high, I

Exactly. Yes.

I yes. mean --

still little a more linger in terms of is dispositions, probably that's already bit. this these remember, coming will quarter going that's $X in to But So, to we're as of -- some lot well. going billion have a the contracted,

And an with tie so doesn't it. that that would -- is a have really source revenue expense

little be jumping may So, quickly. -- too bit you a you may be up

Thank understood. you. Okay,

next The Brad. with Brad Sandler. ahead from Piper comes go Please Milsaps question

thanks for I Hey just Ken. questions. my taking -- to wanted hey Dale,

think wanted rates the expect spot to the on discussion. a the see Do up at rate quarter. And follow accelerate again? you would of on of you onetime encouraged do was to sort those the deposit lower end you those Just phenomenon? that's of I to sort --

your from your spot the squaring get would versus goals? growth deposit environment just thought to of deposit sense with but mentioned of come you growth you think of on in those a sort higher-cost I sources, going wanted what's mostly rates kind

mean do of mean, I here. two -- that sources growth yes, I I think we so deposit Well, have

at and more kind is recovery weeks them new is be going last of And of the to three marginal funds I other One in of pull March. out of the from cost, believe. kind that's that money, a of clients funds

of terms from, space. We've kind both them money bit to the have where come when it space. They lower little a And lot of calmness I stability cost they're success want just to reenter tech these back. say, came enterprises. see in and to that the of where to the categories a on of think talked going in of those we're And it going really predominantly was

track I on think so we're that. And to

what So, going you're I see. think that's of to a portion

for a maybe you're throughout ECR And mean thinking how basically growth? linked-quarter. deposit that were percentage the have growth be Okay. flat do would kind you what I those sense year? of about Is that -- of

of with division insurance, growth ECR different can those go HOA about our and heavy well I mortgage too. is of well. that optimistic I going And title related CRs as think this as them. our and and that comes as lot interest climb we're to think in A taxes operation from funds elements principal Yes, escrow deposit warehouse to and how year,

Okay. And rates the loan on slide just spot on a XX. then you out follow-up that disclosed

But average You sale of loans X.XX%. assume gave you at that the of to that moved held the quarter. the for I the end includes

to I the that over able the way is to assume average. If would of you the so X.XX%, held it sale, right fairly for it? those spot I materially Is back those that With that were be that about exclude -- would think loans loans move. out up

piece right kind reverse I'll entire disposition. and $XX we took Yes. way HFS where is about think the the engineer spot what -- the up on we've the It it. of with and million And associated that to in in was quarter coming spread that say, XX, yields page the revenue with for is hence

guess, just of you And I sales, have I for credit it. you mean, link out why additional And of that know $X maybe non-contracted notes that, then might is billion there? plan me, -- is busy, why hold extremely in that anything term there yet? would under isn't unwinding your then finally appetite guys bucket any or is XC, the been that the mind, contract have Got up that I you that for further that

think and I we've to just it's towards cemented April. the we're of So, XX% got that of want already say waiting end close that to

conversations The were other billion active in $X with.

drag into conversations with with why done And reason any QX, mean, the so us. we're going it into a get by parties now, something I -- encouraged maybe. end we the of we're little But right QX. see from having we're could across table to don't the the bit not

great. else anything in that think Okay, regard? unwinding And CLN kind and of on you're done

net to Well, there we're part that as into $X more -- And our that's unwind looking have. be will sell. CLNs as we side we that billion the that CETX of factored some all

net-net, them, of but rid side, accretive assets you lose Of getting the us. these are you you're course, to unwind the all transactions on capital capital other efficiency when

contracted. day. which is Yes, one CLN, It's of They're and the about talking capital daily. already is every subscription out we're call unwind in loans being that the taking

so And it's down. whittling just

by end it's so to think gone. this that and I month be will going over the of be

are have other CLNs have those. residential. we to In dismantle terms plans have, of don't we -- that have We the we still three all or unwind

Okay, great. guys. Thank you

Timur. Please Our Wells next Braziler comes with from Fargo. go question Timur ahead

good morning. Hi

to HQLA be the build provide current additive while securities is HQLA to of flat like us additional balances to maybe process, tell the at that or HQLA quarter, total that going out, build keeps kind in can you the repositioning that are some is securities in where Looking you grows? book assets? continue the we And to there as that

Yes.

taking limit to $XXX be we're billion. that I there's I you. associated HQLA a for don't So, demand going surpass as with I mean have mean, up. you

trajectory to of going be book I the it or and kind that so in could something we're on time, But over have we -- else that displace a whatever So, have think to rise. presently. AFS

our something we're got leg into. that as not that that's wouldn't we're some step -- I kind look be substantial But you've to that of know, for to to not to going to deposit going to things variable that's kind be ratio. -- way climbing this. It's loan going -- any as be I -- in be But disturb going that substantial or ratio jump we're margin don't to to to descends, like we're of, not going going it's

to those say then volatility a number that's informed higher again, Yes, then their to of uninsured dollars And large and we dollars some would HQLA. one. level, corporates hold if that's our sign to learned, going need be insured bring some if back of those by we level in money, back I -- to lessons to

the deposits to going So, to the will of composition have coming new mix in part we're that be that also determine. of fabric

can looks what if there you unfunded that and balances funding what clip. to like for Okay. year? continue the in And at grow rest schedule then the of loans provide a construction nice the current the Curious are book

here. Hi. Tim Bruckner Sure.

Tim. Hey

The Okay. $XXX funding the of rolls about schedule million a the at out for year quarter. rest

that's this forward So, projections, trajectory volume. within the unfunded of loan year. for our accounted and in That balances the funded represents the

question. then great. Okay, one And last maybe me, Steve's going to one for back

On Silicon that the innovation sector to going picture role see ultimately Valley quite into a lot technology assuming larger playing there's see a here, Alliance Alliance do bigger you recovers, in you be dislocation sector? falling clients. once where of broader from do that front the Western And ultimately Western

I be think against going to we other it's that positioned sector that's growth be areas going a have. the to

that's So, the something seen. not going deposit we've to the going to be overwhelm -- it's not composition, or loan composition

bank. do a tech been tech very SVB, the So, there we're be others that that not strongly feel and new of number going picking to have of the I the people out up are But banks.

here, think it's the review. into and one, us consistency And banks stay important us the because performance innovation, to of only credit the and consistency have not our you time deal they and is very of jumped over with tech migrate and people here, C&I with, lending. a consistent granting to going process are that people the credit that think seen I we've

you're Tim, possible pick time, against loan. lending put against over C&I commitments is in Tim jump Bruckner clearly they all can money second, pick And negative up and here see, hey, you're credit. that? on minute, we've But flows to if And this I'm wait lending people a you seen a to it up to cash provide do like. different flows, or sudden, of it's you VC's cash in not. say, you negative want a a in on

respect recognize Ken. the Thanks plan got today the the space, to we've in with change respect is. landscape Yes. we've strategy And a VC. our to indicates, landscape we lenders involved. And environment. In with adapt a discussed got It as tech and changing competitive to a changing and

So, we've got that in evaluation.

by space, moving well that and fully presented have but think we space themselves. are the we changes have and of deep suited that we're understanding in a seeing what we've this forward We that are advised seen the

larger forward. balance So, hold I as sheet don't significantly expect our on move that position we this a will

Okay. for Thank color. you that

Our ahead next Ben. from Hovde with Group. question comes Ben Please go Gerlinger

And and philosophically Hey, side entrepreneurial good it speaking, right curious of mean, the kind if has was just the you afternoon. I the always sheet. of been I balance Alliance like given seems you're Western little and guys side, both on -- left are in the left the sticking core the clients, also then brakes you're partially sure you volatility tapping your just a -- guys retrenching economically with bit. speaking, I'm

of a or kind we come changed and as just market recession left, reenter longer operates? guys how where Western you've from? you that thinking But beyond side, DNA the go growth the that we could on Alliance term Could shift has through one and get see the through other

about let or culturally, And side, that. on the we being think people development think ourselves Many if say, business growth. pride loan Yes. in me you're whether first, we on it's you I say, deposits would correct, entrepreneurial. yes, in bring Well,

entrepreneurial excel of with -- to and we crisis in in working is where of in behavior think transactions I our times times clients. out

billion. $X of see COVID probably which We back So, you and million from $X and Go book, look book, projections to right? back at that at want billion look was us to entrepreneurial our behavior. our in anywhere $XXX losing hotel then had

We was you order money in to I a get to deferral, We place think bank which put had moved use, in a up. one other put maybe quickly. program that only

deferral of put to a you every So, month wanted, up actually of had month you cash.

not almost projecting program? new uptake losses, on commit What's so And understood that the commit in to sit to late well with immediately of program. get Everyone while was they them that and Once wanted to payment. that our XXX% deals projects, do sponsors. seem had that benefit large to not to were then do. we we we trying any Then to what did that they could their

not clear, be me Let one late payment.

rush on Monday. we're we late of had okay, here Tuesday, liquidity the you So, down a have you of will did of out sell moving to already afternoon, plan basis bank what talking by this in to about that you saw tell here, the non-core we run assets. for of the I terms today

weakness and moving call -- way, everyone may our have finance lines connected capital believe road. which and kind we and this of EFR some the credits, out coming told what the by -- was QX out We to thought loans, of in potential we corporate down subscription some very of also quickly credit also getting out of and QX moving

quickly our have low you in for that to so deck. early entrepreneurial marks here. deals slide here lock moved we we allowed that we part us the that, But see the of up behavior that that the That's noted

better you we're now, behavior make yes, Right entrepreneurial we to we're have a build to sure a that so And good franchise, all retrenching. deposit using capital say franchise. could deposit

by it that, saw something, gets minds done inside the insured deposit XX% move. You XX% from our put of do five very way, we When from quickly. We moving our level weeks. to to

as sure I make liquidity everyone do. understands QX, of perhaps sheet. to And so I'm yes, of one so emerge one, that all this one to assuming But Yes, balance that's want going of other sort of we to And on begin that the out you're questions we're and track all the see we QX QX, with of former QX, sorry, -- the capital want flattish type from other to analysts. the job that. just

be again full into DNA Our in view as XXXX. we will build

don't I'll for to in we thing environment as rewarded only weren't what's and And stands okay? where be and right? I'll grow say fast. we informed the other macro the Again, going The by factors, growing say, happening thing economy need fast, to is economic as all the again it's

it, is color. is I'm curious, that in know best that is under only capital anything but of great this fly price trying on to I like of The of share seeing in Yes, just it. a confidence tangible you're repurchases. the end? so where kind had snowman your would share just appetite in face question is today. Phoenix. I that's kind just book build wall I capital, of environment. your the The appreciate other Seeing

Yes, other XX%. economic economy then dependent that's upon capital contemplated is in cross not the not the the here be conversation the over alternatives and something at the discussed. We'll at that's that be conversation decision not it will that's But until it we moment. reassess will then And even or be in even events management will -- time.

Got you. guys. color. Appreciate the Thanks

you. Thank

go question with The comes King Truist. Please ahead Brandon Brandon. next

Hey.

normalization So, process wanted how will and this I wanted to appreciate sense particularly I year? play this touch on credit, and you for get Western out the guidance, to for Alliance, a think I of better credit

it's Sure. Tim Bruckner. Hi

I'd foundation, we We're doing our performing mezzanine exactly now, with a as where our forth. do don't bank. at at into that we First, say wanted we're what so economy. it's and relationship foundation, and our in lender debt a at we And to right we're and look transactions and direct portfolio this complicated sub enter

our customers with each of dialogue sense. ongoing and straightforward that frank, direct, got we've in So,

we when dialogue. that's how how So, relate, about talk we're we active this informed doing, by

now segments the as dialogue out the can in So, front expect you of we're present in like with office, right discussing. in environment customer

active stability or and having. chance to the a see to we're expect holds we all there with in. I that dialogue us on is true any you downturn. mention, that see So, That the that segments significant migration we some also I based expect for relationship criticized across direct lend economic migration don't that special

the uptick is was far follow-up there classified as my that And the that as as Okay. general in of story assets, kind well?

Yes. Exactly.

with more the AmeriHome the outlook Okay. forward that, Within one the All year? right. the guidance. follow-up And PPNR for just is rest of going what for

good quarter. current It to what improved into you end is continues and overall, AmeriHome historic here. have several normalized the a more actually, production margins I is So, QX quietly, happened having that levels. of has would tell weeks And the towards it

Wells center would forward. the And mortgage say earned us right say I win large here market, just in what's don't bank. the combined rationalization the industry we that I is with but move QX towards paved correspondent has And of and we to income path helped higher don't as about lending the is retreat rates. margins higher money retreat of why Wells, of of that probably capacity we know kind

seems -- itself. like market we'd little would have so than knew a the to there like. taken getting And bit now. we it's it But right-size has It's longer it

so the around that's And at the moment. AmeriHome color

Got you.

base good first of So, a the to grow quarter rest for is the year?

less. or more Yes,

Okay. for my questions. taking Thanks

comes question Davidson. Gary ahead D.A. Tenner with next The from go Please Gary.

to of morning. I deposits question net use ask just the to few of of regard good another over inflows kind with Thanks, the quarters. next wanted

level historically most time? at question Is already portfolio, $X.X finished terms X% of was level securities trends the in that, equivalents, sort cash Or total been it it, the you've quarters that do you towards think your call of It's in kind X% of where I of think over that you'd quarter but about that's double billion target asked over you sheet. about least. the at and balance time? X.X%, a back of that

presently. that We're than more holding bit think over cash a we I usually time. can do hold

trend can I probably think lower. that think -- I that

recovery has the them. of we But will robust. look I that remains as mean, as -- that terms be of what again, profile volatility associated overall to position I funds return what coverage and our liquidity uninsured continued inform in liquidity assuming like And with get think indicated, -- might and here, what deposit Ken it

the mix the in ECR the of quarter, we bit fourth the had have or more, expense quarter assumed first the terms item hikes in costs in full ECR kind then in were would of given the since would deposits up moved And the quarter Thanks. I that flat quarter, Okay. a that, little deposit have quarter. and essentially

just to was or lines? any anything were rates there the structurally if I wondering changes along those So, ECR

a of that It's counterintuitive. we were lost, the interesting maybe transpired what's lot somewhat is funds larger. But and they

consequently, they so higher. And were

highest And were deposits that we we made. lost among that ECR so the

because funds. mean And relative say, spread the went under actual of to, increase Fed the so rate down

Okay.

little the have you recovering flowed environment separate bit as of that about number potentially, a from some those of out, some volatility of talk have period for time? maybe So, could deposits rate it that ECR to

is It possible.

Okay. Thank you.

from comes please Chris, KBW. with next ahead. McGratty go Chris question The

thanks. Great,

Just a on that your one. the following and there's up between ETRs. correlation NIBs Obviously,

you Just how given year, see last deposit XX% progressing? mix non-interest-bearing over mix do change the in guess, the the I that

elevated it's in ECR that new non-interest-bearing. environment, This think to a fairly rate get, no say, DDA I difficult has

they're volatility here. So, bit at I still -- that mean, think a there that of little I been same through the still have the and time, dollars are

so grow, and as will continue that that to impression we outside we'll down is my of So, grow that whittle proportionately.

really dollar little that But I that mentioned, we some as most settles tech bit. be the And recovery, were dollars a space. we'll from see have And a category. those back number I said went the when of could don't exit in possibly storm of out get clients the

sure helpful. I make so that Just

Just understand. to I sure make

interpretation? dollars growth the be of of NIV the XX.X% were. the shouldn't saying the they have, the will bias same what Is other declined right So what have, nearly mix rate you're that is but as have because a

the a say. steady. fairly will -- have proportion be bias of I the have dollars a Well, the what will mix but downward, mix will That's

exactly. that's Yes,

if target. and a talk medium the of Okay, mid-XXs it. I the maybe got And kind XX% tier could, you about as then

You efficiency this for your year. give

As XXs the done all if the to one relative little asked upper it of thinking somebody two year, years? to ratio how The think of the that guy is kind mid- you bit out exit we with the efficiency think when a about I of different. kind the to you're we're company adjustments, do

how think inflated for projection rate in was That's environment plays I to lengths declining that and real I to going -- have general a in the see would the AmeriHome to XXXX election. at that getting I make. out. -- And to as bullish We'll But be indicating, seems the moment. think Ken harder rate personally going be mortgages. into a probably that's we're if environment state

And with what a than been for that, revenue And greater it's that XXs. of few could be efficiency ratio their low quarters. in is past our proportion the the

the although be meaningful. would up, keep piece would be it that something would that revenue So

Okay, that’s Thank you. helpful.

from go Terrell Our Please with Andrew next Andrew. question comes ahead Stephens.

pickup the CETX the dispositions. on from Question

think bps that billion billion that, yet, on that loans lift sales no quarter you just a pickup is guess contracted beyond $X second I pool $X CETX XX net aren't XX further contracted in of for $X XX or there's to gets closer about billion sale bps the the remaining of but so kind last the the So guess, should CETX CLN CLM. of repositioning. from we or a point pickup of I basis the CETX? if

-- question. Well, good

is going exceed here have we we we're believe be what So to XX%.

I $X the -- can't got So, all of billion billion contract go. going off is disposed that We've to be that tell second you $X in that. will quarter?

when all over it. But more give with associated you there gone, pickup tail some there just there is So, it's XX%. to there's than

sale it. servicing MSR how much quarter? And you got any for then sales? the but this disclosed this, go-forward MSR And should impact if expectation revenues Okay, apologies

Yes.

MSRs the last was the So, of the day -- MSR think, quarter. I sold, on

a did of So it a on it face And disposing didn't money $XXX really did the we of top any MSRs, the we that's top of impact mark. was our right of on bank large million. of right and that for size, in center par, QX. significant It income our servicing

off. So, pleased to get we're sizable deal very we're that a able

when a ahead the the go rush we may back we and us if the market optionality if smaller do lot do to better. to the size market be deals. There's no come gives of We come the want deals to and want pricing to That back them. could we of think to to

And also of -- pace, have get and now, the to launch if to again, to and to do have don't begins faster a my world, market any optionality so of would But pick some market mortgage going we to right sales, we that and statements going say I the when do at the we're as the retreat maybe from up to I all viewpoint sales. Dale's we mortgage deal. to have see then if one we want to some way a

manufacture We MSRs. Yes.

balance, bidding than balance could ending if that look at start you so And with balance, higher you'd million, is ending out the obviously, $XXX take that.

then fairly with I getting we them a every we're own going it's manufacturer. as day to dispose and down say up manufacture they we're stable balance so but a a will want lot to people them move and average, of as periodically. on and it's and going be reverse them to inquiries, So,

Okay, taking very good. questions. for the Thanks

from Preston ahead comes question next The Brody. UBS. Please go with Brody

Hey everyone. the time. for Thanks

rate asset just say the that in a So, earnings I to deposit the few I in through that and is liability mortgage just given have sensitive layer NIE. the when costs maybe ask sensitivity on Dale, stream the down balance sensitivity wanted is questions. environment? then that the current sheet fair I to is it the flow

potentially do pretty pickup deposit alluding showing again, And a little We close you're a sensitive to. X%. said, zero But less that to like than But here. have it's really I on think the like costs presently. it's bit asset we're you

So, it together with non-interest expense, or put is neutral. we all margin without cost it's or deposit and pretty

Got it. your And is PPNR within what outlook rate funds? the you Fed interest guidance, share could for

we November I in at then up December. cuts, yes. and Two meeting, one think this the it's two coming got we've Yes, have increase next year, in -- XX, later and

believe may that's not we that, what our We but have model. in

basically futures running the tracks of. That were off

the And X.XX% basis was interest-bearing rates, the I deposit Okay, average at points it was up to versus quarter was the X.XX% quarter-over-quarter. think great. I rate like XX end. The XX deposit spot think on then

in going of is Do So, the it step-up kind do you think costs increase? trying XX will Or XQ of that XX rate would help basis -- another expect indicative just the interest-bearing think the about come point rate be you to forward? spot costs deposit where to deposit think in? you to deposit

No. I as mean rate XXst. spot of your is No, no. March

there. from to change going what's it So,

May, one proportion through. then have XX to that's in early rate the to going what's and We XX follow increase

that, little bit than more up be a much it more. So, wouldn't could it expect be but we to

seeing levels not at that funds. these to but indexed Fed a saw of earlier, some interest lot are volatility. of kind of account We're We various

from I kind -- mean, layer more going was QX doing on an that the QX they basis. increase then had to didn't year big QX full had the think of were in it's XX for still I you to be that significant in So, back raises, you that average

they really the average to back the X.XX% moving still the held was Fed back in from the how X.XX% rate -- funds and X.XX% rate rate because was going from average XXXX. quickly from were So, late

just And it. Got on the intra-quarter swings. deposit

were you that's that that out? that quarter. And categories could how you what was Xth upswing? tell kind much And it if expect the your us think drove forward? I back? the within where $X for deposit Could maybe flowed for ones of billion Which to encompassed you gave were March going the get you update of growth guidance

Sure.

you mentioned. seen to So We to $X little billion a would bit. some down billion yes, were have quarter billion out. we lose just would little $X.X We were funds $X of for actually up instead deposits in up be of typically we're thought those warehouse we under targeting because going as -- in that that $X flow bit we'd billion go mortgage a the particular

in pulling more we we're And We fact, expected. some out. things than on had that Well, of be had also happened. some going that bit a little those dollars to dollars other we

settlement which opened in And but those had mean, in. accounts very QX just And mentioned is have off I they mean were that -- we've to particular. our single-digit a so then Monday strong place, it share come so accounts weeks think another on services, we that then here I out. they it and the I a with for and all XXth the little took and volatility been bit when they of took saw kind price division.

have of they surprised commitments coming do by we they think that they're for were those, for many of them and Now, kind this, back.

LIFO, first I as It about like brand-new had something bit last pretty So, a in sticky we're account here so little a what as to with wasn't that tenure. more optimistic mean, been was going out, there. reverse

levels on number that's future our week move. And a service we've clients of performance. was hadn't road move. how important building there our It big is pipeline and to been those understood funds them for been And and last with easy there. have just performance those But service that and settlement the They is, with out experienced us and levels it folks service didn't a meeting that clients.

So, to settlements. of of share our -- we that fair gain those hope

that. sold. one the bit that in, one, at it. little a Could you last servicing sneak valuation, unpaid I you there into I ring-fence maybe maybe And help gain was? what this through to it fence guess it, line rights I balance I Got if look wanted just I could flowed no just mean item on if looks the And like just principal maybe was income like I on the billion. back if was could clarify ticky-tack that the it servicing $XX-ish ring us then mortgage but just quarter? that that

basis points that went in -- number is was don't on dollar. but think math of me, gain yes, about front that, have your no I No, There there per that through. right, I

you Okay, my Appreciate for all guys. afternoon for great. taking Thank time it. the this questions

The Tim. comes from ahead Janney. with next question Coffey Tim go Please

Great. Thanks. Morning gentlemen.

Just before you begin, --

that? was what sorry I'm

just it that -- the last I was was going to billion were on unpaid about $XX of Sorry. okay? question, balances

needed. -- no. actually no, I was I that's something No, Thanks.

or are limits March, the to from considered of have given the in by companies just the the VCs? source deposits deposits concentration VC stress you strengthening funded industry So, in limiting

these Well, we tie is them. a our have I what credit first mean relationship we with with have deposits when

it. tweets there that accelerated was And things that several in terms so with -- and are went of there people on that think familiar I

to for others thought. committed for kind think but space, reflect to consider HQLA forward. what of we the risk that need is how we'll But of is some and And shorter of in What tech taken value space. is maybe stuff than be that the around them note and volatility kind might have we've created and we us liquidity duration we we're that there in this going in of

primary about deposits the Lessons number one. accounts loan flow to deposits a XX% learned total of were relationship. operating where be tied there, our Those we commitments third to didn't had to That's out. banking

be Number to focus challenger funds. team two, is capital the company on venture brand a was the the when goes we portfolio started back to and what I thing they to the companies original did, this -- to SVB other Bridge not and like the

flow capital accounts So, out and those funds. in than operating on to less the the likely they are dollars with venture are

that think, that something a we was started was was, that I So, that decision. continued good

may such the I think the it's documents we get in money, to and to those going to with Today, loan going a more for to more we're but pricing nuisance, do move forward, the deposits severe. severe tie they if is of keep us, commitment deposit that us. now need tie order penalty

deposits And by want experience going we the you're relationship you want need and say, that's table. the And bring, way, want if the what bring to you we that to happy a successful, across sit way, very to that's the and that your table by them we all we we business from we're to to the to do. clients make very, say, what

us. You've same got to do the for

you giving those we're if sticky relationship that So, deposits. credit, we we need deposit and need

Great.

That's thanks. back? last the in And per deposits terms on $X of is deposit of billion that then month or in outlook predicated that coming helpful. out quarter, Okay, the the bank the the how flowed so of of much

you time any to our tell lining, disruption that will opportunity gave specific mix, you. I more silver don't if number good. returning I with is whole to that's new. is I much a an know versus much with that honest us spend how give be a how can you this clients, very It's there's

heart to to allows senior wanted much access to. us them. them also to on management teams To it call we them if more certain the during the talking and of it day disruption, the clients now they But were every gave

coming give billion quarter. back overall I but $X more So, number, growth for -- quarter can't billion you we feel comfortable $X the with a per

Okay.

to back banking is And interest there looking Okay. that at minimum since old-fashioned targeting? spread you're just or here, getting relationship-based you're a

answer the said, today. as Dale at So, yes, okay? we're And is basically different categories, by pricing margin the loan

the gets funds spread. spread by offset And Fed is spread drives effective plus. net very to us. SOFR is close what that And interest So, see our overall, what you is margin

our hotel are much blend versus loan rate. that, doing those warehouse C&I spreads a construction if different the versus of you're a loan seen So, loan net in a But margin versus interest lending. pretty

Okay, Appreciate the time. questions. great. Thank my Those you. were

Our next Autonomous David from with David. ahead comes Research. go question Please Smith

late. getting We're you. Thank

out for way something capital. ones just--? base? you've plans quick it or reevaluated you've few Do credit a note you the additional here the issuance linked from ruled given existing Just Is CLN on have that

don't something forward need going this very It's expensive. it's we at And point. expensive,

so we're -- when don't need done So, that incremental cost. we

know a bank Okay. amount it that that reevaluation of talk was quarters? had decent because that what recent about done you something to led Can changed the in I

capital the capital. Well, next got benefits in and levels, level that to largest going you one them moving We're top storm whatever short was for of we're our game. risk-weighted is, mean, assets decile of situation the higher a that a from reduction to in the I with that in to so held a deposit a insured with be that relative the banks, not and XX that away

the think so don't And that scenario. avoiding I productive CLNs in were

that towards, at XX% you settles new the target, XX% able something back do come view say, after with Alliance? Western And as some is that Or think you Okay. down long-term point? to target everything for a you down

I to with think, banks. center said, competitive I money as be -- want our with we the

same least ever in company, to Western Now no as and or not JPMorgan Alliance in quarter. the next confuse one's going the one at

just me say Let that.

a here after. pause So, for

smart, talking think when a road business, but one out non-sophisticated I to learned lot don't the we But of they the people, they things spend their of banking understand very on we're time. they're

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at Money folks, to check got the I to people we're was bank they as it center could and on. tell just higher. I A well mom to us, he bank alive, said she if the very alive understood, Money my was X%, able as made and was move at and X%, her. that basic it well went better. level to let's was this over box When insured I center very if As very, meetings went was were simple math, say C we're were deposit had XX.

Got it. Thank you.

go final with RBC. Our question Jon. Please from ahead comes Jon today Arfstrom

slowing thanks. Hey comfortable provision, can it and anything quarter? credit This The driven feels it next that like But from intentionally. be by that and way it off like growth with down you're quick. provision looks charge was prevents coming a is back

mean, disclosed by of obligation in a driven We we had debt we written was off. and so I yes. a charge Well, Bank Signature it we off. actually there, have -- that had

Okay.

of provision-- terms in the Just

all. are about comments [Indiscernible] credit quality, they

guess, don't need building you you is so here, I Yes, like to be feel reserves from my--

know. don’t We

Okay.

any consistent way other Not than the that be-- would

Yes.

back about goal? the Is do think you the flesh return return to tangible you company? mid-teen out tangible guys question, Okay, mind? then that And you in helpful. on are How a your on a that's when you company? that your return high-teen Are model,

think-- tangible average return terms common equity, I In of on

tangible. on Return

think end be as a income, -- balance smaller we low XXXX. us little or I fee fingers more we're seeing a that's when the year coming we're income to a -- role trends give small say less Remember, in and plays think of with the forward sheet greater the move through from too, now, crossed into we spread this, AmeriHome. And and favor, dominant seeing Yes, to and going and XXs right that common I and got equity we we're move in the the push that's our average on ratio. return tangible going extra

That's message company? valuation. your now stresses good situations Or the Okay, like of good is -- have do then in terms question right stressful with this from dealing a mid-March? guess your last of would you abnormal at with kind good. first question. any And managing over been But a I feel you probably you're

All right.

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So, there's depositors. these a with calm

just we we there but executed right? to tell we And upon, incredibly level this me, important. us, said heightened that For to it. that, still as course, to going of sensitivity do we on is of something, you transparent, known like a that's we're make gets a call sure One, everything to company is be also do when

be to at bit right as be looking a solving little away. known and problems and trying like to to solving also We innovative more them them then

So, making we've what keeps anxiety asking we that work up me on that everything if at to here. you're hard about and night, is me sure said execute

but I been I company. there. we what think But out that hasn't ourselves impact different are I maybe to that affected that think other bit, a for yet, Republic one a events me happened where whatever completely think the asking was we've separated us. we've There that you're or there now shown First from now the two could could point them little be solved separated If from industry and

on but lower And one agency they've saw do notch that We And is the something or Fitch grade the of a execution we other gave kept us since outflow on just is now, item rating Fitch, impact then any or watch. also probably have thing other that zero. execution passed incoming about and that. that no to this we're plan no waiting two. waiting still But working be for on right And we're presented for growth. that investment one we the zero, it's it's here and still to we to want last saw that you had with calls, going us all -- just or

whole the that's times. okay question here and well. in and center I've crisis can what Jon. we I'd several few a is what's I do think them course end. management's Board dexterity. appreciate the minds did our to that front of here these in to through days, things, air think at this you big like the during our and crisis the I balance We few So, this saw said a keep

for Yes, okay. Thanks everything.

you. Thank

we That's Ken turn the I'll to call Vecchione remarks. all closing the back for have. questions

all this forward probably call to talk And time our Listen, some call. ever. look for your next questions. is Yes. I would Thank longest We'll your today. Not earnings you answered we we hope more. the surprising. all

us may you This Thank disconnect lines. concludes our and joining today. you your everyone for call now