Western Alliance Stock Recovers on Deposit Stability Update

Western Alliance's stock fell by as much as 17% on Wednesday after releasing a preview of its first-quarter results, which showed that its percentage of deposits covered by the Federal Deposit Insurance Corporation was 68%, "significantly higher" than at the end of 2022. The bank released a second update on Wednesday afternoon, stating that deposits fell by $6 billion during the first quarter. The stock was down closer to 10% near 2:20 p.m. ET following this second update for investors. The bank's CEO, Kenneth Vecchione, said that Western Alliance's "uniquely flexible, diversified business model positioned us to weather the liquidity tightness that enveloped the industry over the past month."