Western Alliance Stock Is Trading Higher Wednesday: What's Driving The Action?

Western Alliance Bancorp WAL shares are trading higher Wednesday after the company released an investor update showing deposit growth has climbed above $2 billion in the current quarter.

What Happened: Western Alliance said deposit balances stabilized in March and have since resumed growth trajectory. 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 over the last week. 

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.

Other regional bank stocks moving Wednesday include PacWest Bancorp PACW, which was last up 13.3% at $5.18, Zions Bancorp ZION, which was up 7.62% at $25.56 and First Horizon Corp FHN, which was up 4.88% at $10.75, per Benzinga Pro.

See Also: Jamie Dimon Says JPMorgan's Stint Of Buying Struggling Regional Banks Is Likely Over

WAL Price Action: Western Alliance shares were up 12.3% at $35.48 at the time of publication, according to Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.