Lede

Western Alliance Bancorp's stock experiences a sharp rebound as the bank confirms that its deposit outflows have stabilized following the banking crisis.

Summary

• The bank's net outflows have decreased sharply and returned to normal levels by March 17, with deposit balances growing by $900 million by quarter-end since March 30.
• The lack of detail in Tuesday evening's update initially disappointed investors, resulting in a more than 12% decline in the bank's stock price. However, Wednesday's update provided reassurance.
• Western Alliance experienced $6 billion in net deposit outflows in Q1, primarily in its tech and innovation and settlement services groups.
• The bank has seen deposits grow by $1.2 billion this month, and total insured deposits now stand at 68% of total deposits, significantly higher than year-end's 50%.
• The bank's stock is down more than 50% this year and 66% off from its record high.