Western Alliance Bancorporation (NYSE:WAL) Q3 2022 Earnings Conference Call October 21, 2022 12:00 PM ET

Company Participants

Miles Pondelik - Director of IR and Corporate Development

Ken Vecchione - President and CEO

Dale Gibbons - CFO

Conference Call Participants

Casey Haire - Jefferies

Ebrahim Poonawala - Bank of America

Steven Alexopoulos - JPMorgan

Brad Milsaps - Piper Sandler

Tim Braziler - Wells Fargo

Chris McGratty - KBW

Andrew Terrell - Stephens Inc.

Brandon King - Truist Security

Jon Arfstrom - RBC Capital Markets

Operator

Good day, everyone. Welcome to the Western Alliance Bancorporation Third Quarter 2022 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.

Miles Pondelik

Thank you and welcome to Western Alliance Banks third quarter 2022 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 take any obligation to update any forward-looking statements. For a 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 opening remarks, I'd like to turn the call over to Ken Vecchione.

Ken Vecchione

Thanks, Miles.

This quarter, the company continued its strong financial performance as our diversified national commercial bank again delivered record net interest income, PPNR and earnings, complemented by strong deposit and loan growth, supporting higher net interest margin with stable asset quality.

For the third quarter, Western Alliance generated record total net revenues of $664 million, net income of $264 million and EPS of $2.42. Earnings were propelled by accelerating net interest income quarterly growth of $77 million or 15% from the prior quarter to $602 million as the rising rate environment expanded our net interest margin 24 basis points to 3.78%.

We made industry-leading performance with return on average assets and return on average tangible common equity of 1.53% and 24.9%, respectively, which will continue to support building capital levels in the quarters to come.