Financial Data and Key Metrics Changes - Western Alliance Bancorporation reported record net revenue of $938 million and pre-provision net revenue of $394 million for Q3 2025, reflecting a healthy business momentum [5][6] - Net interest income increased by $53 million or 8% quarter-over-quarter to $750 million, driven by solid organic loan growth and higher average earning asset balances [14][19] - The company generated EPS of $2.28, with a return on average assets of 1.13% and return on average tangible common equity of 15.6% [6][20] - The adjusted efficiency ratio improved to 48%, a decline of 400 basis points from the prior quarter, indicating positive operating leverage [19][20] Business Line Data and Key Metrics Changes - Commercial and Industrial loans led loan growth momentum, while construction loans decreased by $460 million as they converted to term financing [21] - Mortgage banking revenue rose significantly to $95 million, an increase of $17 million or 21% from the previous quarter, supported by lower mortgage rates [41] - Non-interest income increased nearly 27% from Q2 to $188 million, bolstered by firming mortgage banking results [14][15] Market Data and Key Metrics Changes - Total assets increased by $4.2 billion from Q2 to $91 billion, driven by healthy loan and deposit growth [19][20] - Deposits grew by $6.1 billion in Q3, with significant contributions from non-interest bearing and savings accounts [21][22] - The allowance for loan losses increased from 67 to 78 basis points over the past year, reflecting the company's proactive approach to credit quality [20][26] Company Strategy and Development Direction - The company aims to maintain a loan growth outlook of $5 billion and raised year-end deposit growth expectations to $8.5 billion [30] - Western Alliance is focused on enhancing its underwriting practices and portfolio monitoring to mitigate risks associated with credit migrations [7][10] - The company plans to issue subordinated debt and utilize a portion of the proceeds for its share repurchase program, which is expected to be accretive to EPS [28][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality, stating that criticized assets have declined and are expected to continue performing well [35][36] - The economic backdrop is viewed positively, with GDP growth around 3.8% to 3.9% and stable employment rates [73][74] - The company anticipates continued momentum in mortgage revenue due to favorable interest rates, despite seasonal declines expected in Q4 [42][56] Other Important Information - The company has a strong capital position with a CET1 ratio of 11.3%, comfortably above the target of 11% [30][45] - Total equity increased to $7.7 billion, and tangible book value per share rose 13% year-over-year [20][28] - The company has been a consistent leader in creating shareholder value, with tangible book value per share growth exceeding peers by five times over the past decade [28][29] Q&A Session Summary Question: Credit quality and loss potential on Cantor exposures - Management feels comfortable with asset quality and does not foresee losses related to Cantor V, supported by sufficient collateral and guarantees [35][36] Question: Expectations on ECR deposit beta - The loaded beta for ECR deposits is expected to be around 70%, with a focus on reducing deposit costs [38][40] Question: Seasonal deposit flows and mortgage banking - Management expects a seasonal decline in mortgage revenues in Q4 but remains optimistic about maintaining momentum [56] Question: Loan to deposit ratio and liquidity - The company aims to increase the loan to deposit ratio, indicating a desire to put liquidity to work through safe and sound loans [67][68] Question: Corporate trust market share growth - The company has gained market share in corporate trust services and expects continued growth in this area [62][64]