: Western Alliance says it has not seen unusual deposit flows since sale of First Republic, says bank is sound and stable

Western Alliance Bancorp. WAL posted updated financial information late Wednesday, in an effort to reassure investors of its strength, soundness and stability, after the stock was caught up in a selloff of regional banks. The selling was sparked by the distress sale of First Republic Bank to JPMorgan Chase & Co. JPM as well as a report from Bloomberg on Wednesday that PacWest’s leaders were considering strategic alternatives of their own, which could include a sale. Phoenix-based Western Alliance said it has not experienced unusual deposit flows since the sale of First Republic and other industry news. “Total Deposits were $48.8 billion as of Tuesday, May 2, up from $48.2 billion as of Monday, May 1, and flat to Friday, April 28,” the bank said in a statement. “Quarter to date, deposits are up $1.2 billion from $47.6 billion as of March 31.” Insured deposits account for 74% of total deposits, and among its 20 biggest deposit relationships, more than 88% are insured. A previously announced balance sheet repositioning remains on track and the bank has a strong capital base with a CET1 ratio of about 9.7% as of April 30 compared with 9.4% as of March 31. The CET1 ratio, or common equity Tier 1 ratio, compares a bank’s capital against its risk-weighted assets to determine its ability to withstand financial distress. The shares were down 22% premarket.

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