Bernard Gizycki's questions to WESTERN ALLIANCE BANCORPORATION (WAL) leadership • Q3 2025
Question
Bernard Gizycki asked about expectations for ECR-related balances and costs, given they represent over a third of deposits and 30% of total expenses, and CFO Dale Gibbons' new role focusing on deposit initiatives. He also inquired if the Q3 equity income uptick was due to a reversal of Q1 losses and the outlook for this line item.
Answer
CFO Dale Gibbons explained that ECR is driven by mortgage warehouse and HOA deposits. He expects HOA deposits to grow slower than overall footings, reducing their proportion, and costs to decrease with lower rates. President and CEO Ken Vecchione clarified that the Q3 equity income uptick was not due to a Q1 reversal, and while the $8 million figure is higher than usual, a "haircut" is expected going forward, with no dramatic changes indicated.