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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