Western Alliance Bancorp (NYSE:WAL) Q3 2020 Earnings Conference Call - Final Transcript

income to rise in Q4, aided by both an increased NIM and higher end of quarter loan balances compared to the quarterly average. Additionally, it is expected that PPP fee income will pick up next quarter as forgiveness is granted. This will however, abate during 2021 PPNR is expected to increase as net interest income growth will more than offset any increase in non-interest expense. Looking ahead, we will continue to invest in new product offerings and infrastructure to maintain operational efficiency but Q2 and Q3 efficiency ratios are temporary and will eventually return to sustainable level in the low-40s. Our long-term asset quality and loan loss reserves are informed by economic consensus forecast, which is consistent going forward, could imply reserve releases in the coming quarters. We believe that the provisions in excess of charge-offs year-to-date are more than sufficient to cover charge-offs through the cycle as we do not see any indicators that imply material losses are on the horizon. Finally, Western Alliance is one of the most prolific capital generators in the industry. Our strong capital base and access to ample liquidity will allow us to take advantage of any market dislocations to maintain leading risk adjusted returns to address any future credit demands, all while maintaining flexibility to improve shareholder returns. At this time, Dale, I and Tim, will take your questions. Operator, if you want to open up the line.