Kenneth Vecchione on fiscal policy
From Western Alliance Bancorp WAL CEO Kenneth Vecchione on Q1 2020 Results · · Daily Earnings Calls
“We are very pleased that Congress and the entire federal government came together to expeditiously pass the CARES Act and stimulus measures; additionally we applaud the Fed's actions to reduce interest rates and support liquidity in the financial markets through quantitative easing and new lending programs.”
On , Kenneth Vecchione, Chief Executive Officer, President & Director at WESTERN ALLIANCE BANCORP, spoke about fiscal policy during Western Alliance Bancorp WAL CEO Kenneth Vecchione on Q1 2020 Results on Daily Earnings Calls.
About Kenneth Vecchione
Kenneth Vecchione, CEO of Western Alliance Bancorp, discussed the company's response to the COVID-19 pandemic during the first quarter 2020 earnings call. He stated that the bank began assessing risks in mid-January and accelerated plans in mid-February to prioritize asset quality, capital, and liquidity management. Vecchione noted that the bank dedicated over a quarter of its workforce to the Paycheck Protection Program, approving over 2,600 applications totaling $1.5 billion. He described the bank's approach to loan modifications as seeking to partner with clients by asking them to contribute liquidity, capital, or equity. Vecchione reported that the bank generated $163.4 million in operating pre-provision net revenue for the quarter, up 10% year-over-year, and recorded a provision for credit losses of $51.2 million. Vecchione stated that the bank had no direct energy or large retail mall exposure and that its construction and land development portfolio was under 9% of its loan book. He noted that the bank had direct dialogue with all borrowers with over $3 million in exposure, covering 86% of the portfolio. Vecchione expressed that his outlook had become more pessimistic since early March, citing the recent unemployment filings, and said he believed the downturn would be "deeper than I've ever experienced." He also commended the federal government's passage of the CARES Act and the Federal Reserve's actions to support liquidity.