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Western Alliance Bancorporation (WAL) Q2 2021 Earnings Call Transcript | The Motley Fool

Western Alliance Bancorporation (NYSE:WAL)
Q2 2021 Earnings Call
Jul 16, 2021, 12:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day, everyone and welcome to Western Alliance Bancorporation Second Quarter 2021 Earnings Call. You may also view the presentation today via webcast through the company’s website at www.westernalliancebancorporation.com. The call will be recorded and made available for the replay after 3:00 PM Eastern Time, July 16 through August 16, 2021 at 11:00 PM Eastern Time by dialing 1-800-585-8367 using conference ID 3676158.

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

Miles PondelikInvestor Relations Manager

Thank you, and welcome to the Western Alliance Bank second quarter 2021 conference call. Our speakers today are Ken Vecchione, President and Chief Executive Officer; and Dale Gibbons, Chief Financial Officer. Before I hand the call over to Ken, please note that today’s presentation contains forward-looking statements which are subject to risks, uncertainties, and assumptions. Except as required by law, the company does not undertake any obligation to update any forward-looking statements. For more complete discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements, please refer to the company’s SEC filings including the Form 8-K filed yesterday, which are available on the company’s website.

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

Kenneth A. VecchionePresident and Chief Executive Officer

Thanks, Miles, and good afternoon everyone. And as Miles said welcome to Western Alliance’s second quarter earnings call. This quarter’s results continue to demonstrate the unique benefits of Western Alliance’s National Commercial Business Strategy to position Western Alliance as one of the country’s premier growth commercial banks that can consistently generate leading balance sheet and earnings growth with superior asset quality across economic cycles. This quarter the bank produced record net revenues, PPNR and EPS, while expanding on net interest margin generating the highest return on tangible common equity in the bank’s history and returning asset quality to pre-pandemic levels.

For the second quarter Western Alliance earned total net revenues of $506.5 million, net income before merger and restructuring charges of $236.5 million and adjusted EPS of $2.29, an increase of 20.5% from the prior quarter. These results benefited from a $14.5 million reversal of credit loss provision consistent with our excellent asset quality results. Strong balance sheet growth continued with loans rising $2 billion excluding PPP loans or 29% on a linked quarter annualized basis and deposits by $3.5 billion or 37%. Our deposit and loan pipelines are very active and total assets now stand at $49.1 billion. Net interest income totaled $370.5 million up $53.2 million or 16.8% for the quarter as robust balance sheet growth rising NIM and access liquidity deployment significantly moves the earnings needle.

Strong loan growth led to a 5.5% or $1.5 billion increase in average loan balances quarter-over-quarter. Additionally, after closing the AmeriHome acquisition on April 7, we added $4.5 billion in held-for-sale mortgages primarily GSE qualified or 12.4% of our average interest earning assets yielding approximately 3.21% as an alternative to cash or mortgage backed securities. Optimizing our interest earning assets mix helped NIM expand from 3.37% to 3.51% in the second quarter. Fee income was a record $136 million, representing 27% of total revenue as it began to integrate and optimize AmeriHome’s mortgage banking related activities throughout the rest of Western Alliance.

Mortgage banking related income was $111.2 million in the second quarter demonstrating our ability to adjust win share as gain on sale margins fluctuate to maintain earnings. I think it’s worth reemphasizing that what most attracted us to AmeriHome’s business model was their low costs and flexible mortgage production and servicing ecosystem. Their leverages are complementary corresponded and consumer direct channels to feed and enhance value throughout Western Alliance’s commercial businesses while minimizing risk. Business-to-business correspondent mortgage lenders have several business levers and the flexibility to sustain earnings throughout the rate or throughout rate and economic cycles.

Despite the evolving mortgage sector fundamentals AmeriHome continues to meet our expectations and contributed $0.39 to EPS in Q2. We have optimized AmeriHome’s balance sheet to Western Alliance capital levels with a servicing portfolio of $57.1 billion in unpaid balances. No — yeah, UPD, sorry. Expanded the number of correspondent sellers by 57 to 819 and taken advantage of market dislocations to drive value. In the second quarter since April when the transaction closed, AmeriHome generated $20.7 billion in loan production or 25% above levels for the full quarter period a year ago and only down 3.6% from Q1 with 47% from traditional home purchases.

Gain on sale margin was 64 basis points for the quarter in line with 2019, 63 basis points. Given the flexibility of AmeriHome’s business model, we continue to stand by our full-year guidance of $1.41. Asset quality continued to improve this quarter as the economic recovery extended in breadth. Total classified assets declined $43 million in Q2 to 49 basis points of total assets which is lower than Q1 ’20s levels on both a relative and absolute dollar amount just as the pandemic impact was beginning to be felt. For the quarter, net loan charge-offs were zero.

Finally, Western Alliance is one of the most profitable banks in the industry with a return on average assets and a record return an average tangible common equity of 1.86%, 28.1% respectively which will continue to support capital accumulation to strong capital levels. Tangible book value per share modestly declined to $32.86 from $33.2 as goodwill and intangibles doubled to $611 million in Q2 mainly from recognizing the AMH platform value.

At this time, Dale will take you through the financial performance.

Dale GibbonsVice Chairman and Chief Financial Officer

Thanks. Thank you, Ken. For the quarter, Western Alliance generated adjusted net income of $236 million or $229 million adjusted earnings per share up 22.9% and 20.5% from the prior quarter. This is inclusive of a reversal credit provisions that Ken mentioned of $14.5 million. It excludes pre-merger — pre-tax merger and restructuring expenses of $15.7 million related to AmeriHome. Additionally, pre-provision net revenue of $277 million rose 37% quarter over quarter, excluding those same charges. After the AmeriHome acquisition, total net revenue grew $169.5 million during the quarter to $506.5 million, an increase of over 50% from the prior quarter.

Net interest income rose $53 million during the quarter to $370.5 million, an increase of 24% year-over-year, primarily a result of our significant balance sheet growth and deployment of liquidity into higher yielding assets. Average earning assets increased $4.1 million, while lower yielding cash proportion held at the Fed fell to 4.4% from 15%. Non-interest income increased $116.3 million to $136 million from the prior quarter and now represents 27% of total revenue due to mortgage banking-related income of $111 million from AmeriHome. Within this category, net loan servicing revenue was a negative $20.8 million, as high refinance activity drove accelerated amortization of servicing rights but was far exceeded by gain on sale of mortgage loans.

Pre-AmeriHome WAL contributed 18% Non-interest income or $24.8 million in the second quarter compared to $19.7 million in the first quarter, supported by $7 million of income from equity investments. Non-interest expense, including merger and restructuring charges increased $94.5 million mainly due to the acquisition of AmeriHome which increased compensation costs as we added approximately 1,000 new members to the WAL team, as well as new costs related to loan servicing and origination expenses.

Turning now to our net interest drivers, you can begin to see the benefit of AmeriHome to our strategy to expedite and optimize the deployment of excess liquidity into higher yielding assets as we added $4.5 billion in loans held for sale yielding 3.2% as opposed to cash yielding 10 basis points. Investment yields improved to 10 basis points from the prior quarter to 2.47 while on a linked quarter basis loan yields excluding HFS declined 11 basis points following ongoing mix shift toward residential loans and a slight reduction in non-commercial real estate loan returns. Interest bearing deposit costs were flat from the prior quarter at 22 basis points.

The total cost of funds increased 8 basis points to 27 based on the — due to issuance of $600 million of subordinated debt and the assumption of AmeriHome borrowings. The spot rate for total deposits, which includes non-interest bearing was 11 basis points. We expect funding costs have generally stabilized at these levels. As a result net interest income grew $53.2 million to $370.5 million during the quarter or 24% year-over-year as average earning assets increased $4.1 billion. Cash as a portion of the average interest earning assets fell to 4.4% from 15% in the quarter, which drove expansion by 14 basis points to 3.51%.

Additionally excluding the impact of PPP loans the margin would have increased 22 basis points. Our efficiency ratio rose to 44.5% from 39 in the first quarter mainly driven by the addition of AmeriHome employees and increase in incentive compensation costs. As mentioned on our first quarter call we expected the efficiency ratio to rise to the mid-40s as a result of the acquisition. Preprovision net revenue increased $75 million or 37% from the prior quarter and 35.4% from the same period last year. This resulted in preprovision net revenue of return on assets of $231 million for the quarter an increase of 28 basis points compared to $203 million in the first quarter.

This continued strong performance and leading capital generation provides a significant flexibility to fund ongoing balance sheet growth, capital management actions or meet credit demands. Balance sheet momentum continued during the quarter as loans held for investment increased to $1.3 billion or 4.6% to $30 billion and deposit growth of $3.5 billion brought balances to $41.9 billion at quarter end. In all, total assets have grown 54% year-over-year as we approach the $50 billion asset level. Borrowings increased $1.2 billion over the prior quarter to $1.8 billion primarily due to $600 million subordinated debt issuance as well as the assumption of AmeriHome borrowings.

Finally tangible book value per share decreased $0.16 over the prior quarter to $0.3286 but increased 18% year-over-year again driven by the AmeriHome acquisition of intangible assets that were largely offset by Q2 earnings and the issuance of common stock from our ATM of 700,000 shares for $70 million. Despite heightened competition and pricing pressure we continue to generate consistent strong organic loan growth from our flexible national commercial business strategy. Loans held for investments grew $1.3 billion in the quarter or $2 billion excluding PPP payoffs of approximately $700 million.

A majority of growth this quarter was driven by an increase in residential real estate loans of $2 billion, which now comprise 17% of total loans as we look to deploy excess liquidity and integrated new flow arrangements from the recent Galton and AmeriHome transactions. This was supplemented by growth in capital call lines of $162 million and construction and land loans of $89 million. Turning to deposits, we continue to see broad-based core deposit growth across business channels. Deposits grew $3.5 billion or 9.2% in the second quarter driven by increases in non-interest bearing DDA of $2.6 billion, which now comprise 48% of our deposit base and savings in money market deposits of $534 million.

Market share gains in mortgage warehouse continue to be significant drivers of deposit growth during the quarter along with strong performance from regional commercial clients, robust fund raising activity and tech innovation and seasonal inflows from the HOA banking relationships. Our asset quality continued to significantly improve this quarter. Total classified assets fell $43 million in the second quarter to $238 million to 49 basis points of total assets. While our total classified assets ratio declined 16 basis points to 49 basis points due to continued improvement in COVID impacted clients. Finally, special mention loans declined $69 million during the quarter to 1.35% of funded loans.

Similarly, quarterly net credit losses were negligible at $100,000 for the quarter or zero basis points of average loans compared to a $1.4 million net loss in the first quarter. Our loan allowance for credit losses fell $16 million from the prior quarter to $264 million due to continued improvement in credit trends and macroeconomic forecasts and loan growth in portfolio segments with low expected loss rates. In all, total loan ACL to funded loans declined 9 basis points to 88 basis points or 91 basis points when excluding PPP loans.

For comparison purposes the loan allowance for credit losses to funded loans was 84 basis points at year end 2019 before CECL was adopted. Finally, given our industry-leading return on equity and assets, we continue to generate significant capital to fund organic growth and maintain regulatory capital ratios. Our tangible common equity to total assets of 7.1% and Common Equity Tier 1 ratio of 9.2% were weighted down this quarter by the AmeriHome acquisition and strong asset growth.

However we issued 700,000 shares under our ATM shelf during this quarter and completed a $242 million in credit linked note transaction that reduced risk-weighted assets as we continue to look for ways to optimize our capital levels to support ongoing growth. Additionally we completed $844 million in mortgage servicing rights dispositions and have already completed our expected Q3 mortgage servicing sales. Capital levels should build from here. Inclusive of our quarterly cash dividend payment of $0.25 per share our tangible book value per share declined $0.16 for the quarter to $0.3286 compared to an increase of 18% over the past 12 months.

I’ll now hand the call back to Ken for closing comments.

Kenneth A. VecchionePresident and Chief Executive Officer

Thanks, Dale. At the midpoint of the year I thought I would take this opportunity to reflect back upon our performance. We deployed excess liquidity and turbo charged our net interest income. Year-to-date non PPP loans have grown $3.6 billion and deposits have grown $10 billion or 2.75 times the amount of loan growth providing us an opportunity to deploy liquidity and growth and grow net interest income AmeriHome’s past Q2 guidance and is tracking to full year projections. Asset quality improved with substandard special mention and non-accrual loans tracking downward with nearly no net charge-offs for the quarter.

Return on tangible common equity was 28.1% for the quarter. PPNR, a key metric for the company earnings power was 37.1% — grew 37.1% and we executed several capital raising transactions that Dale just mentioned. So, for the second half of the year I think you can expect loan and deposits to continue to grow between $1 billion and $1.5 billion per quarter. Net interest income to grow quarter-to-quarter with incremental liquidity deployed into loans and investments to overcome the interest drag of the new sub debt and credit linked note issuances.

NIM will continue to see some pressure as competition, interest rates and loan mix nudge loan yields downward. PPNR will follow net interest income and fee income growth and will continue to rise throughout the year. Asset quality will remain steady although with net charge-offs tracking to prior year — prior year’s performance or prior quarter’s performance. We continue to believe we will exit the year at a $9 EPS run rate level. And lastly, we will deploy growth based capital strategy to support above trend balance sheet growth. And finally, I would be remiss in the outlook section of the presentation if I didn’t predict the Suns in six.

At this time, Dale, Tim Bruckner who is sitting to my left here, our Chief Credit Officer and I are happy to take your questions.

Questions and Answers:

Operator

[Operator Instructions] For our first question we have Brock Vandervliet from UBS. Brooke, your line is open.

Brock VandervlietUBS Securities LLC — Analyst

Oh, thank you. Hey, Ken, does that $1.5 billion loan guide include AmeriHome or is that like a stand-alone?

Kenneth A. VecchionePresident and Chief Executive Officer

That’s net loan growth for the company.

Dale GibbonsVice Chairman and Chief Financial Officer

We don’t really expect loan growth from AmeriHome. I mean AmriHome has their held-for-sale piece that can’t fluctuate some. So I mean we’re talking about held-for-investment loans, core loan growth. That’s the $30 billion, that’s what the $1.5 billion is attributable to.

Brock VandervlietUBS Securities LLC — Analyst

Okay. Got it. And just shifting to AmeriHome and the biggest question is just overall origination volume and gain on sale. Is this — and obviously that the parts of the sector are under pretty heavy pressure. How do you look at things the remainder of the year for volumes and gain-on-sale margin?

Kenneth A. VecchionePresident and Chief Executive Officer

So I’ll take half the question, I’ll give the other half to Dale. First, we don’t see any change to the guidance that we gave which is a $1.41. Of course we made $0.39 for this quarter. You know we do think there is some pressure in the marketplace on volumes and on margins as you’ve seen. But, Brock, you gave me an opportunity here to answer the question in a larger way. And I’d like to frame it the way we think about it here for everyone on the on the call. So I’m going to take advantage of your question with a 1 minute answer here.

Brock VandervlietUBS Securities LLC — Analyst

Great.

Kenneth A. VecchionePresident and Chief Executive Officer

First AMH contributed only 17% of our operating EPS. So it’s not the majority of our earnings of our company although today I assume it’s going to be the majority of the questions, OK. We believe that you shouldn’t consider evaluate or compare AMH to other stand-alone mortgage companies and for the following reasons. One AMH has many tributaries that feed into the banks’ net interest income. And this is, this is the acquisition rationale that we had for making this purchase. So of course, they held for investment mortgages which absorbed excess liquidity and help us generate constant loan growth. That’s one.

Number two, MSR loans. We’ll be able to generate MSR loans that will accompany MSR sales. In addition, we expect custodial deposits not bundled along with MSR sales that will help us fund in the future investments and loans again helping our net interest income grow. We pay down the AMH outstanding credit lines with our excess liquidity. And once again that relates back to net interest income lower interest expense. We are going to be able to mine we think our HOA book for consumer direct mortgage opportunities.

We’ve purchased EBO loans, that’s early buyout loans, that produce a positive carry for us when we buy them but also produce a future gain on sale, that’s more equivalent to our consumer direct business i.e., a much larger gain on sale when we execute against this. And then also AmeriHome has 800 warehousing lending clients and we haven’t even begun yet to scratch the surface of cross-selling into those warehouse lending clients, which in turn once again back to net interest income will generate a greater net interest income for us.

So because of the interconnectivity with the bank, we kind of see AmeriHome as a provider of not only loan growth, but really a provider of incremental net interest income for us. And the acquisition of AmeriHome was designed to unlock and capture many of the revenue streams that are generally hidden inside of a mortgage company. And I hope that kind of gives you a larger perspective on how we think about AmeriHome and how we think it’s going to help enhance our earnings going forward.

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. Brock, I know we had a conversation during the quarter about [Indecipherable] seeing the volatility in this sector and what that might mean for us. And we view AmeriHome is really a low cost producer. And that’s an enviable place to be, because that puts them in a position such that when there is a musical chairs game going on, and I think there is in this space at this time they have the ability, capacity to expand their win rate and their buy rate. So that they were doing 7% in 2020 that number is about 12% to 13% today.

It could go higher still. And so you saw this pivot. It’s like OK, well, if the margins are under duress then we can make up — make it up in volume. And so the gain on sale number was higher than we thought it would be obviously in part mitigated by this acceleration of amortization that we had and the charge we ended up taking, in the servicing revenue side. So we’re confident that that gain can continue and again just to echo Ken’s comment — I mean the real power to AmeriHome is not just what they can do on their own, but how much better they make the bank perform because of this go-to-class to fill up our liquidity that we have.

Brock VandervlietUBS Securities LLC — Analyst

Great. Great color. Thank you. I’ll jump back in the queue.

Kenneth A. VecchionePresident and Chief Executive Officer

Thanks.

Operator

For the next question we have Casey Haire from Jefferies. Casey your line is open.

Casey HaireJefferies LLC — Analyst

Yeah. Thanks. Good morning, everyone.

Kenneth A. VecchionePresident and Chief Executive Officer

Good morning.

Casey HaireJefferies LLC — Analyst

Dale, just wanted to follow-up on the um on the AmeriHome side — specifically that — the mortgage servicing drag that you mentioned — can you just think about — give us a way to think about how that — how that line should run going forward and what the MSR impairment was in the quarter — apologies if I missed that.

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. So I wouldn’t — I’m not going to really rephrase it as an impairment that took place. I mean, so these models are trying to predict human behavior. There’s a lot of lot of things that go into human behavior that aren’t necessarily picked up in these models. And I think in particular what you had in the first quarter and second quarter coming in — is you had very substantial volatility in their tenure. So everyone thought, oh gosh, we missed the bottom of the rates. And so that actually you know based on the models — it should see a slowdown in prepayment behavior because rates are higher. But no that’s not what happened.

You have acceleration of prepayment behavior. And to me my closest analogy is it’s like last call. It’s like you know what. It’s 2:00 AM you got to get in here. Otherwise you’re going to miss out on the lowest rates — in a generation. But then what happened — while we saw the — the 10 year get up to $190 million and now we’re back to — in the$1.30 range. And so are you getting an even an echo wave of that. So these prepayment speeds have come in higher than we thought. That resulted in accelerated amortization. I’m not going to necessarily call these impairments, but getting to your point in a more normalized level, we would be looking for about a $10 million quarterly positive in that servicing line.

You can’t just say, oh, gosh it’s under by $30 million on a run rate basis though because of the comment I just made in terms of the gain on sale number is better probably because the because the servicing revenue was impaired. Servicing revenue being impaired means there’s a lot of refi business going on. There’s a lot more activity generating in the system. And so the GOS opportunity — the gain on sale opportunities is a bit higher. So it’s not kind of a one for one deal. But, yeah, in a steady state, we’d look for about a plus-10 in that. I mean it’s in the revenue. It’s the contra revenue for a reason because it’s not supposed to be a contract.

Casey HaireJefferies LLC — Analyst

Okay, got you. So I mean you’re standing by the $1.41 and so that implies basically this AmeriHome contribution is running around $0.50 in the back half of ’21, correct?

Dale GibbonsVice Chairman and Chief Financial Officer

Correct.

Casey HaireJefferies LLC — Analyst

Okay. All right. And then just on your comments there that capital will build from here. What does that — what does that assume, like, if you guys beat — continue to beat your loan growth guide, will you just continue to use the at the market offering or how should we think about is that capital build line, is that — does that just assume that loans and deposits grow $1.5 billion or you just use the ATM to true it up?

Dale GibbonsVice Chairman and Chief Financial Officer

Perhaps a little bit of both. But I think that I think the balance year growth number is going to be higher — to be higher than $1.5 billion and not even need to touch the ATM because if you saw this last quarter we’re overwhelmingly our loan growth was in residential. I don’t think it’s going to be that high proportionately to the other categories going forward. But it will be — it will be preponderant. And that is a 50% asset class assignment.

And so based on that if you grow — if it was just that you could grow $3 billion to get to $1.5 billion risk weighted asset increases which would be the same. So, our earnings this year were $230 million based on that that would support $2.3 billion. It was all 50%. You can do the math on that. So, I think we’ve got more capacity with just capital generation than we have going on irrespective of ATM which we could, we will tap as needed. But right now we don’t think that’s going to be significant.

Casey HaireJefferies LLC — Analyst

Okay, great. And just last one for me. The borrowings that you assume from AmeriHome if I’m reading the margin tables right, it appears there is about $595 million left at period end. Is that correct?

Dale GibbonsVice Chairman and Chief Financial Officer

Correct.

Casey HaireJefferies LLC — Analyst

And so that’s a lever that you also have to pull to help. I mean I’m assuming you are going to continue to pay that down to zero.

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. Some of those, a good chunk of those borrowings have — have high rates and — and are not comparable for an extended period of time. So, don’t look for that to drop off to zero as much as we’d like it to.

Casey HaireJefferies LLC — Analyst

Understood. Thank you.

Dale GibbonsVice Chairman and Chief Financial Officer

Thanks.

Operator

For the next question we have Brad Milsaps from Piper Sandler. Brad, your line is open.

Brad MilsapsPiper Sandler & Co. — Analyst

Hey, guys. Good morning.

Kenneth A. VecchionePresident and Chief Executive Officer

Good morning.

Brad MilsapsPiper Sandler & Co. — Analyst

Dale, just wanted to follow up sort of around the loan growth guidance commentary, last quarter you mentioned getting to a 90% loan deposit ratio you mentioned getting to a 90% loan-to-deposit ratio. Maybe by the end of this year or early next, I don’t know if that contemplated another $3.5 billion of deposit growth as you saw this quarter. But just kind of curious, how to think about that 90% loan-to-deposit ratio number. And maybe as that pertains to the held-for-sale loans those came in a bit higher than I was looking for. And then, is there incremental a merit home production that you plan to retain above and beyond the $1.2 to $1.5 billion loan growth guide.

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah, so I mean a few things going on there. So yeah, we’re here, we wanted to get to kind of 90-ish or whatever and we actually faded back a little bit because of the deposit growth was so robust. I don’t have a timeline of exactly the kind of when we’re going to get there. I do believe that we’ve got quarters in front of us where loan growth is going to exceed deposit growth and that’ll pull that up. When I talk about loan-to-deposit ratio, I do not include the held-for-sale loans. I think held for sale is a much better comparison to the cash in investment portfolio. Those are — the average life of those loans is only a few weeks, and so it has a much more liquidity relative to those other categories away from loans.

So I do think that there — I’d like to held-for-sale portfolio because basically you get the note rate on those loans predominantly, and yet, they flip every three weeks. And so, it’s a very sensitive asset at the same time. But we will have to have a situation. To do that we’re going to have loan growth and AmeriHome is going to be the primary conduit for this kind of well in excess of deposit growth. Right now, deposit growth is — can just iterated. It looks — continues to look strong. So I’m not exactly sure when that’s going to be. But we do have several things going on. One is we are — we have feeds from AmeriHome today that go on our balance sheet for higher yielding and origination activity as they have.

These are things like vacation homes. They’re going to be coming out this quarter with a jumbo product that they had years ago reintroducing that can come up on our balance sheet too — because it’s a higher yield low LTV. Great credit quality as well as non-qualified mortgages. So we’re getting these from the Galton relationships. We’re getting these from our own warehouse clients. And as Ken said, we’re going to start mining warehouse clients among the 800 clients that AmeriHome has that they buy from and with that, we can put in our own direct conduit to feed our appetite for high quality low LTV high yielding — because they’re not suitable to the GSEs resi mortgages.

Brad MilsapsPiper Sandler & Co. — Analyst

Okay. Great thanks. And then just switching gears a little bit maybe to the expense side of the equation — what type of expense flexibility should we think about as the mortgage business sort of ebbs-and-flows over the next several quarters.

Dale GibbonsVice Chairman and Chief Financial Officer

Well, we see — I mean there can be some flexibility within this. We think that the AmeriHome pivoted really well and the volatility that took place in the second quarter — in terms of finding ways to increase gain on sale even though we had increased amortization. We’re looking for that to continue. We’re looking for the kind of the total contribution which you mentioned on the previous call a $0.50 in Q3, a $0.50 in Q4 plus $0.40 that puts a $1.41 and that’s the same run rate that we have for getting to that number that we had for 2022. So I think there’s multiple channels to manage through that process. with the levers that, that can enumerate it. And so, I’m not too concerned about that. We’re looking at kind of the total. I think we are going to stay in the mid-40s. And I think that’s, I think that’s pretty reasonable.

Brad MilsapsPiper Sandler & Co. — Analyst

Okay, great. Just final follow for me. Can you comment on the change in bond yields linked quarter? You guys had some nice improvement there and just kind of curious are you kind of things you might be buying. You saw some nice improvement there and just curious you could provide any color?

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. Maybe a couple of things. One of them we do have in our bond portfolio of low income housing bonds. We think that’s a growing sector likely to continue. Those yields are higher than certainly the average in our book. And in the first quarter, again you know volatility same, same issue comes out a little bit of a different animal. But we had, we had increased amortization of premium on MVS bonds that we had purchased that slowed down in the second quarter. And so we had less of a debit to hold against that. And so that helped build up bond yields pick-up.

Brad MilsapsPiper Sandler & Co. — Analyst

Great. Thank you, guys.

Operator

For our next question we have Brandon King from Truist Securities. Brandon, your line is open.

Brandon KingTruist Securities, Inc. — Analyst

Thank you. Hi. So loan growth was once I mean deposit growth was once again strong this quarter. Could I get a break down of the verticals on a dollar basis where deposit growth came from?

Kenneth A. VecchionePresident and Chief Executive Officer

Did you say deposits?

Brandon KingTruist Securities, Inc. — Analyst

Yes, deposit growth.

Kenneth A. VecchionePresident and Chief Executive Officer

Well, warehouse lending grew about a $1.07 billion. Our new deposit verticals grew a little over $300 million. HOA business where the first quarter is very seasonally strong, still had a good quarter. This quarter grew $210 million. And technology, which is awash in liquidity was up $936 million. So I would take a little exception that we didn’t have a great quarter, I mean, $3.5 billion. Oh yeah, oh, I’m sorry, it came across — I’ll take it back. Sorry, it came across a little fuzzy. So that’s how a $3.5 billion. But basically when you look at all the sectors, it was pretty much broad based throughout our or our silos and all our regions.

Brandon KingTruist Securities, Inc. — Analyst

Okay. Thank you. And for mortgage warehouse. Obviously, you continued to grow deposits there, but it looks like the loan growth is softening there. What is the outlook for warehouse balances for the remainder of the year.

Kenneth A. VecchionePresident and Chief Executive Officer

So yeah, I agree with you, it was a little bit softer this quarter. When we think about warehouse lending, we have a couple of other business lines to get wrapped in there. Our MSR lending and our note financing should offset some of the weakness in warehouse lending overall or warehouse lending proper. But we think going forward as we begin to roll out our cross-sell activity, which will be toward the end of the year to be quite honest. We think we’ll be able to gain or hold market share going forward.

Brandon KingTruist Securities, Inc. — Analyst

Okay. And just lastly, the reserve came down again. In the face of loan growth, do you think we could have bottomed on an absolute dollar basis of the reserve going forward? Or do you see continuably down, even though we’re still getting growth in those lower costs — credit costs business lines.

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah, I don’t think I’ll call it bottom. I mean, I appreciate that we are going to hit the bottom on the reserve in dollars certainly sooner than we are going to hit the bottom on the ratio. I mean negligible charge-offs, this past quarter throughout this recession and admittedly a very odd recession in terms of credit quality behavior primarily driven by federal intervention, but that would point you that our reserve could still be very substantial. We had 7 basis points of losses. The average remaining life on our loan book is 2.4 years. If you said well, I can needle 2.4 years or for a duration on 7 basis points, that’s a 20 basis point reserve if that were to be the math.

Obviously, we’re not getting anywhere near to there. But you could see how even on a dollar basis it could continue to ebb, most significantly is that even compared to our balance sheet pre-CECL is we’ve been growing in these categories that have had historically zero and prospectively low if not zero anticipated losses in low LTV residential loans, capital call lines, mortgage warehouse, public finance. And as that proportion is growing larger and larger that also tends to push the numbers lower. I personally don’t think that the outlook for the economy is going to improve in the near term as dramatically is the forecasted whether it was Moody’s, whether it was Blue Chip in the second quarter. So, I don’t know if we’re at the bottom or not, but I do think that certainly the preponderance of the reserve releases are behind us.

Brandon KingTruist Securities, Inc. — Analyst

Okay. Thanks for all the answers.

Kenneth A. VecchionePresident and Chief Executive Officer

Thanks.

Operator

Next, we have Chris McGratty from KBW. Chris, your line is open.

Chris McGrattyKeefe, Bruyette & Woods, Inc. — Analyst

Great. Thanks for the question. Maybe talking about the mortgage business little bit differently Dale. The proportion that you’re holding on your balance sheet the proportion that you’re holding on your balance sheet, around 17% and I think we all agree that’s a great trade relative to buying up a bond at these levels. I’m interested in kind of where you see that taking away your comfort range is from that proportional piece of a loan book?

Dale GibbonsVice Chairman and Chief Financial Officer

Well, so I mean, I think I first want to address this from our interest rate risk profile. So we have a very naturally asset sensitive balance sheet compared to most. C&I loans are a big piece of what we’ve got. Even some of the securities we’ve been purchasing have a variable rate element to them. And then our funding structure 48% DDA is very low in terms of CDs. And the administered rate category is like money markets are our client relationships. And I think they’re going to have lower than kind of mean beat what you’d see.

So we start from a position that we can tolerate higher levels of residential. We’ve been below the peer group for a longtime which I’m going to hang it about 30% now at 17%, it has moved up significantly obviously. And I think we’re going to go to that 30% number and kind of see where we are. And I think we see a lot of opportunity in front of us in terms of improving yield. These are in low risk credit rates and with the deposit growth we can kind of do this. And this can — but I do think it’s not going to be as sharply climbing as it certainly did this last quarter. We are seeing increased breadth in terms of credit demand we believe. And so I think we’re going to see a little more balanced growth prospectively, but yeah, we’re going to be moving up to 30%.

Chris McGrattyKeefe, Bruyette & Woods, Inc. — Analyst

Okay. It’s good color. In terms of the liquidity, you guys, I think were one of the more aggressive in deploying it With cash around 4% to 5%, I mean, what’s the reasonable level that you need to run proportional to the balance sheet?

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. So as of right now, we have $3.4 billion in cash. So we’ve got money to deploy today. I don’t think that number needs to be very large. And in part I look to the held for sale portfolio to drive that. That portfolio from AmeriHome, the large preponderance in there as well has those are, those clear out in two to three weeks. And so that is a near cash element that we can use. So I’m comfortable what’s kind of with where we are. I think that number could drop down a bit more to 1% to 2% with liquidity behind it from loans that have already been pledged for delivery to the GSEs.

Chris McGrattyKeefe, Bruyette & Woods, Inc. — Analyst

Okay.

Dale GibbonsVice Chairman and Chief Financial Officer

Chris, I might also mention, we have an $8 billion credit line with the federal home loan bank that is unused. We’ve got a multibillion dollar credit line with the Federal Reserve that is unused. We’ve got multibillion dollar credit lines, credit frontlines with other institutions. They’re not necessarily committed but we think that they’re certainly there that are also new. So we’ve got well over $10 billion that we could drop on as needed.

Chris McGrattyKeefe, Bruyette & Woods, Inc. — Analyst

Great. And then if I could just sneak in a housekeeping. I think when you announced AmeriHome you talked about the tax rate maybe going up 100 basis points, so looking for a little guidance on there. And then the card income was strong this quarter. I’m wondering if that’s a, if that’s a run rate? Thanks.

Dale GibbonsVice Chairman and Chief Financial Officer

So on the tax rate, I think — I am expecting that number to ebb up a little bit from where we are at 2019. I think it’s — I can see 19%, I think it’s — I could see it climbing closer to 20%. The card income there has been kind of a difference in activity versus really a P card. I don’t know that I would expect that to extrapolate from there but I think business levels are getting better.

Chris McGrattyKeefe, Bruyette & Woods, Inc. — Analyst

Great. Thank you very much.

Kenneth A. VecchionePresident and Chief Executive Officer

Thanks.

Operator

Great. The next question we have Timur Braziler from Wells Fargo. Timur, your line is open.

Timur BrazilerWells Fargo Securities LLC — Analyst

Hi. Good morning. Maybe just circling back on the expense side, I think you have said that the American deal added a thousand employees to the organization. I know you mentioned that the efficiency ratio is likely to be maintained in the mid-40s or at least the near term. I’m just wondering as that business is fully integrated and run kind of the Western alliance way. Is there an opportunity to optimize that business at some point or are the two different enough where you can’t really touch the expense side of the AmeriHome.

Kenneth A. VecchionePresident and Chief Executive Officer

I think for the company overall, you need to think about the efficiency ratio being just about where it is 44.5% and 45%. And that’s where we’re going to probably run the company that will allow us to continue to invest in new products and services, look to bring on new business teams. Maybe you look to develop, organically, new business silos. And also, as we continue to grow at the pace that we’re growing. So we’re a $50 billion asset-based company today. We need to also ensure that we put the right investment into the technology and onto the risk management side of the business. So and on to the risk management side of the business. So when we think about our numbers, when we think about the guidance leaving this year and the $9 EPS run rate, we don’t have it moving off of 45%. That allows us to grow EPS earnings the way we think we need to grow and also invest at the same time.

Timur BrazilerWells Fargo Securities LLC — Analyst

Okay, that’s helpful. And then just one last one on AmeriHome origination and you said the run rate now is 12% to 13%, up from 7%. I think historically or previously you had mentioned that that number could go as high as 20%. And it doesn’t really sound like the non-Q1 component is really ramping up the add. So as that ramps up, is that going to go through the production and increase of the gain on sale volume, is more of that going to be portfolioed in the near term and then kind of corollary to that if you can just talk about where the revenue yield that were put on the books today are and where those can go once you start bringing down some of the non-Q1 paper?

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. So I mean the primary goal of increasing or broadening what they’re buying is to give the bank another channel of growth in residential with again low LTV, better yielding — better yielding assets. So AmeriHome for the most part now has generated product that we like the business. But we’d like it going to the GSEs because the yields aren’t necessarily high enough for what we think the best kind of risk adjusted returns would be. And so — but they add that in, we’ll be able to pick up even more from AmeriHome to kind of put on our balance sheet. I think that number is going to be around 3% what we can do kind of going forward.

Kenneth A. VecchionePresident and Chief Executive Officer

I mean this is what we get paid for. There is a lot of interconnectivity between the AmeriHome and on the banking side. If we have strong loan demand on the banking side we will not hold on to as much on the residential mortgage side and the AmeriHome will have a higher gain on sale. If there is any soft demand or more excess liquidity than what we anticipated we will take — we’ll take loans from AmeriHome and we’ll keep them on our balance sheet. And the gain on sale will be less for AmeriHome but you’ll see a higher flowing net interest income for the bank. And so that’s what we balance out every day here.

Timur BrazilerWells Fargo Securities LLC — Analyst

Okay. And then so as you start bringing on more non-QM paper, I guess how that should we expect to see the win rates to elevate. I mean they are going to say that — that’s 12%, 13% level for now and the mixed shift is what’s going to change or do you see the non-QM channel being added at what’s currently being produced.

Kenneth A. VecchionePresident and Chief Executive Officer

So, I’m hesitant to give you a forecast going forward what the win rate is because you’ve got to add a few other factors in there. What’s the margin? What’s happening with — overall with the 10 year. But what I’ll say is and what we learned when we were doing the due diligence for AmeriHome is that they have the ability to expand the win rate in order to keep the gain on sale income high enough to achieve what we want to achieve in terms of our EPS guidance. And so that’s going to be balanced between margin and between the win rates and as we said it was — we are at 12%. They’ve been as high as about 17%. So, we’ve got room there to move that around.

Timur BrazilerWells Fargo Securities LLC — Analyst

Okay. Thank you for taking the question.

Kenneth A. VecchionePresident and Chief Executive Officer

Thank you.

Operator

For the next question we have Jon Arfstrom from RBC Capital Markets. Jon, your line is open.

Jon ArfstromRBC Capital Markets LLC — Analyst

Hey. Thank you. Good morning everyone.

Kenneth A. VecchionePresident and Chief Executive Officer

Good morning.

Jon ArfstromRBC Capital Markets LLC — Analyst

Hey. One of your quotes in the releases, you begin to unlock value from AmeriHome I’m just curious what’s next. Is it the things you reference like mining the warehouse in HOA or is there something else that’s more near-term and right in front of us when you say you’re, you’re just beginning to unlock value?

Kenneth A. VecchionePresident and Chief Executive Officer

Yeah. Thanks, Jon. It’s really everything I mentioned as a little bit of a prelude on the earnings call here. So, we’ve got a list of things that we’re just going down and executing upon. Certainly, the easiest one was let’s unlock the value by paying down their outstanding credit lines done. As we’re selling MSRs, let’s see if we can give loan commitments to the, to the buyers which we’ve done this quarter. Let’s see if we can hold on to deposits, which we’ve done this quarter, but it’s not a one and done thing of course, we’re going to continue to work on that as we go forward. A little further down as the is the cross-sell into the warehouse lending line, that’s going to take a little bit longer as you can expect we were focused on legal day-1 and legal day-90. But the warehouse lending cross-sell will happen toward the end of the year. We’ve got the AmeriHome folks working on the jumbo mortgage program. We haven’t working on the non-QM program. So and those are just some of the things I can — I reference. So we’ve got a lot of things going on here. What we’re trying to do is find the value that we can unlock AmeriHome which translates over into our net interest income which just gives us greater value and in terms of valuation on the banking side. And that’s how we’ve always thought about the deal, Jon.

Jon ArfstromRBC Capital Markets LLC — Analyst

Okay. Any of the stuff new have you found more synergies or things that you think could be larger than you originally anticipated?

Kenneth A. VecchionePresident and Chief Executive Officer

Yeah, actually the first place where we saw one of the bigger opportunities where we said, oh my God we weren’t thinking about this, it was on the EBO side. That’s the early buyout of loans from Ginnie Mae. You’re able to buy them at par and then turn around and sell them at very close to consumer — direct margins spreads which is in that 500 basis point range. The reason why AmeriHome was active, but not overly active was that — they had a negative carry to that because their cost of funds was probably all-in around LIBOR 200. Well we took 10 basis point money and we put it against a large purchase of EBO loans and now we’re able to carry that EBO loans out — in a positive carry until we’re ready to sell the loans down the road. So I think that one really surprised us — at how quickly that opportunity appeared — and frankly it wasn’t really discussed much during the due diligence period where we were doing more of the normal blocking and tackling conversations during due diligence.

Jon ArfstromRBC Capital Markets LLC — Analyst

Okay. Two more questions here. I understand why you’re breaking out the profitability now, but is this something you plan to do or you want to do in the future? Is breaking out the profitability or do we expect this to eventually be very much integrated in the consumer piece of the business.

Kenneth A. VecchionePresident and Chief Executive Officer

Yeah, a good question — for this year we’re going to continue to kind of give you the guidance of the $1.41 because it’s a new business line but we don’t breakout any of the other business lines. As I said this is a 17% of total net income, so as we start giving you the guidance — you can see we’re doing it now — we’re giving you the guidance that existing the year at $9, that’s the number we’re focused on for the whole company exiting at $9. This year we’re talking to a little bit more about the $1.41 because we want to make sure the comfort level is there that that we’re executing upon that acquisition upon that trade, if you will. But all longer term we’re just going to talk about our total EPS.

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. I mean, the mortgage continued integrated is the more marquee and difficult it is to try to distill it all. I mean, if we’re cross-selling into their warehouse clients now and then we’re getting direct sales to our mortgage portfolio holdings. What are — what does AmeriHome get allocated to that? We’re not into that game. We’re more interested in moving the whole ball rather than trying to see who gets how many piece each side of the plate.

Kenneth A. VecchionePresident and Chief Executive Officer

Yeah. This thing is you hit on a hotspot here for us as we were thinking about this not too long ago. If we take more mortgages from AmeriHome and we keep it on the balance sheet of course we’ve just lowered AmeriHome’s gain on sale. So this is the murkiness that Dale talks about. Is that good or bad? Well, I kind of think it’s kind of good that we’re keeping it on our balance sheet. We’re getting that net interest income and it’s going to stay out there for an extended period of time. Others could say well, gee, I would have liked that game to happen immediately because I want that immediate recognition. So we try to balance this stuff. And that’s why we think it’s much better to look at the overall total EPS number than it is just to look at a segment of the EPS.

Jon ArfstromRBC Capital Markets LLC — Analyst

Yeah. That’s good. I was going to ask that but I thought it was too deep for this call but just in terms of the allocations. But just one more for you Dale not everyone that hold your stock as a mortgage expert and this is probably annoying and a simple question, but how would you think about the main inputs into that that gain on loan origination and sale line that $132 million just big picture what should we be thinking about when we model that line?

Dale GibbonsVice Chairman and Chief Financial Officer

Well, so, yeah, I mean AmeriHome has been a large producer in this space. I think that their activity level can continue at what they have been running. That’s their core business. We think that’s certainly an opportunity. We think they can expand that as we’ve talked about in terms of some of these other business lines. We think there is maybe a cross-sell into HOA business and things like this. But again that’s going to get kind of overwhelmed by the benefit we get. So, I mean AmeriHome’s numbers they have $15 million of net interest income in the quarter from mostly hoping their held for sale loans the other $38 million was core Western Alliance on net interest income, and that was in part because of the liquidity deployment. So, I am looking for AmeriHome to continue to deliver as they have and but again these cross sells I think are really where the key is in terms of driving higher EPS.

Jon ArfstromRBC Capital Markets LLC — Analyst

Okay. Okay. Thanks for everything. I think Suns in seven you have to win it at home, you would have to be a little dramatic. So, that’s my call.

Kenneth A. VecchionePresident and Chief Executive Officer

Well, we have like 3,000 Suns championship T-shirts on order. So, we’re already heavily vested into that. If not we’ll be selling them very cheaply to anyone who wants them.

Jon ArfstromRBC Capital Markets LLC — Analyst

All right. Thanks.

Operator

For the next question, we have Gary Tenner from D. A. Davidson. Gary, your line is open.

Gary TennerD. A. Davidson & Co. — Analyst

Thanks. Good morning. I will wait for mortgage for a second, just what kind of — ask about the credit linked notes for a moment, obviously as part of that transaction you freed up a good amount of risk based capital and sector capacity for lending. I just wonder if you would draw a direct line to that capacity as it the cross sell opportunities into AHMS whereas clients are increasing the warehouse business or would you think of it more holistically is just creating additional capacity for wherever those higher risk, risk weighted assets come from?

Kenneth A. VecchionePresident and Chief Executive Officer

Yeah I think it’s more holistic in terms of what that is. I mean again we’re focused on generating strong risk adjusted returns. The warehouse space is one that not just us, but I think the industry’s experience from a credit perspective has been very strong. The credit linked note does strengthen the credit quality of the bank and provides more insulation to it. We have somebody who’s now on a first loss position not us if there’s any losses within that portfolio. So we do get a relief on the unlike you mentioned the risk weighted assets.

I think it’s warranted because somebody else away from us an investor has first loss or anything that happens there. So in that sense we’re a stronger credit profile. But if — what we look at is gosh now RWA is lower we can continue to grow. It’s from a shareholder perspective it’s much cheaper to do the credit link note than it is to issue shares on the ATM that’s obviously a substitute alternative to get there. And it reinforces the value of that business line because we can have a direct method to support the capital needs from there that is significantly less expensive than the returns that we get from our clients.

Gary TennerD. A. Davidson & Co. — Analyst

Thank you. And then just to ask about the $9 run rate that you’ve talked about over the last couple of quarters exiting this year can you give us a sense of what that contemplates from a provision line item because obviously in a given quarter that could have some volatility to it. So just any thoughts on what that contemplates or if you wanted to kind of equate that $9 run rate to a PPNR per share kind of run rate — as any additional detail.

Kenneth A. VecchionePresident and Chief Executive Officer

Well, it includes a normalized provision. It does not include releases or underfunding or nor does it include the reverse of another kind of global challenge like we had in 2020. But what it look like in terms of basis points, I don’t have a number for you, but I think if you look at the composition of our loan growth and where it comes from what would it take to support that kind of going forward I — we don’t perceive of a substantial credit losses coming at any time in the future, but it would cover charge-offs. So it would cover charge-offs, and it would cover growth in a relatively low risk growth profile as we’re putting on the books in 2021. And so I think we’re going to be looking at in 2020.

Dale GibbonsVice Chairman and Chief Financial Officer

Yeah. I would echo that, I mean, I’d look backwards, and look at what our last year’s charge-offs where — and maybe use that as a guide — as what the provision would be very clear, we don’t anticipate large releases to generate that $9 EPS run rate. That’s not included in our logic.

Gary TennerD. A. Davidson & Co. — Analyst

All right. Thanks, guys.

Kenneth A. VecchionePresident and Chief Executive Officer

Thank you.

Operator

For the next question we have David Chiaverini from Wedbush Securities. David your line is open.

David ChiaveriniWedbush Securities, Inc. — Analyst

Hi, thanks. I had a follow-up on deposits you mentioned about how the follow up deposits. You mentioned about how the mortgage warehouse deposits were up very strongly at $1.7 billion. I was curious is there any seasonality in the mortgage warehouse deposits that could be a headwind as we look out to the third quarter and fourth quarter?

Kenneth A. VecchionePresident and Chief Executive Officer

There is some seasonality. I’m going to say fourth quarter and maybe primarily driven by California, California taxes, property taxes are due. And so as you know those warehouse deposits are overwhelmingly funds held from escrow funds from servicers which people escrow their insurance payments and they escrow their tax payments. But as you get one particular state that is skews heavily for their overall. I think there are due in November. I’m not a California resident. So you’re going to see a dip whereby the servicer is writing a check drawn on us to the state or to the relevant counties they are coming in. So yeah, there is a piece with that.

David ChiaveriniWedbush Securities, Inc. — Analyst

Thanks for that. And then shifting to the resi mortgage portfolio that you’re keeping, just want to clarify that what you are keeping historically and continues to be Jumbo and non-QM?

Kenneth A. VecchionePresident and Chief Executive Officer

Yeah, it does. I mean so again, the trade that we’re making is we’re willing to give up liquidity for yield and strong asset quality. So, we’re going to compromise in a queue. But if we can give up some liquidity to get a better return we’ll do that. So what I mean by that is say you have a non-qualified mortgage something that isn’t salable to the GSCs. It’s going to trade at a lower price a higher yield. Something that is jumbo is going to trade a lower price higher yield. So these are about 65% loan trade at lower price, higher yield. So we have these are at about 65% loan-to-value loans. The debt-to-income is in the mid-30s.

The FICO scores are 760, so we think it’s pretty good quality stuff. But because it’s not saleable, it trades at a lower price, and we’re like, oh gosh, we can handle that. We want to put it on our balance sheet on kind of going forward. Just maybe note that just because it’s not liquid to the GSE, it doesn’t mean it’s not liquid to us. So for example, all of these loans we can pledge on our federal home loan bank line, and they give us advances on them. And it wouldn’t be difficult at all even if you wanted to securitize these loans and sell them to private investors.

David ChiaveriniWedbush Securities, Inc. — Analyst

Great. Thanks very much.

Kenneth A. VecchionePresident and Chief Executive Officer

Thanks.

Operator

We don’t have any further question.

Kenneth A. VecchionePresident and Chief Executive Officer

Okay. I just wanted to thank you all for attending the phone call, and we look forward to speaking to you in a couple of months from now. Thanks again, everyone.

Operator

[Operator Closing Remarks]

Duration: 66 minutes

Call participants:

Miles PondelikInvestor Relations Manager

Kenneth A. VecchionePresident and Chief Executive Officer

Dale GibbonsVice Chairman and Chief Financial Officer

Brock VandervlietUBS Securities LLC — Analyst

Casey HaireJefferies LLC — Analyst

Brad MilsapsPiper Sandler & Co. — Analyst

Brandon KingTruist Securities, Inc. — Analyst

Chris McGrattyKeefe, Bruyette & Woods, Inc. — Analyst

Timur BrazilerWells Fargo Securities LLC — Analyst

Jon ArfstromRBC Capital Markets LLC — Analyst

Gary TennerD. A. Davidson & Co. — Analyst

David ChiaveriniWedbush Securities, Inc. — Analyst

More WAL analysis

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