Western Alliance's De-Risking Strategy Boosts Stock and Earnings.
Western Alliance's announcement of a $2 billion deposit inflow since the end of Q1 caused its stock to surge by 24%, lifting other regional lenders such as First Republic and PacWest. The bank had lost $6 billion in deposits during Q1, but executives stated that depositors had returned to a "lot more calm" state. Western Alliance is now less dependent on funding from depositors, with 73% of its deposits covered by the FDIC. However, the bank is bracing for more loan losses and a potential fall in margins as banks begin to pay more aggressively for deposits.