Why Western Alliance Stock Is Moving Higher After The Close

Western Alliance Bancorp WAL shares are trading higher in Tuesday's after-hours session after the bank said deposits stabilized in March and have since resumed growth trajectory.

What To Know: Western Alliance said deposit balances stabilized by March 20 and have grown since. As of May 12, quarter-to-date deposit growth had exceeded $2 billion and 79% of deposits were insured, up from 68% at the end of March. 

The news comes just days after Western Alliance provided a deposit update, noting that quarter-to-date deposits had reached $1.8 billion. It appears the bank has added at least another $200 million in deposits in just the last few days. 

Regional bank stocks have faced heavy selling pressure since the failure of Silicon Valley Bank and Signature Bank. At the beginning of the month, JPMorgan acquired a substantial majority of assets and assumed deposits and other liabilities of First Republic from the FDIC.

First Republic’s collapse marked the largest bank collapse since the 2008 financial crisis. Broader concerns around the banking sector have continued to pressure several names including Western Alliance.

From Last Week: EXCLUSIVE: Wedbush Downgraded SVB Prior To Collapse, Other Regional Banks Present Opportunities

WAL Price Action: Western Alliance shares are down more than 58% over the last three months.

The stock was up 9.81% after hours at $34.69 at the time of writing, according to Benzinga Pro.

Photo: Thomas Breher from Pixabay.