On Wednesday, shares of Western Alliance Bancorp recovered from steep losses after the regional bank released a new update showing that deposit outflows had stabilized.
The Phoenix-based lender revealed that its net outflows had returned to normal levels by March 17 and total deposits had grown by $1.2 billion this month.
This relieved investors, who had been worried about the bank’s balance sheet issues following the collapse of Silicon Valley Bank and Signature Bank last month.
Western Alliance said it had experienced a total of $6 billion net deposit outflows in the first quarter, mostly from its tech and innovation and settlement services groups.
The bank also noted that its total insured deposits had increased to 68% of total deposits, compared to 50% at the end of 2020.