HomeFinancial MarketsWestern Alliance Stock Jumps 21% After Positive Deposits Update

Western Alliance Stock Jumps 21% After Positive Deposits Update

Western Alliance Bancorp has seen its shares surge more than 21% in after-hours trading on Tuesday. The jump was prompted by a positive update from the Phoenix, Arizona, headquartered bank that indicated its deposits are stabilizing.

Following the collapse of mid-size banks like Silicon Valley Bank and Signature Bank in March, clients feared the same might happen to Western Alliance and went on to move their deposits to larger banks. This resulted in Western Alliance having $47.6 billion in deposits in the first quarter of 2023, which represents an 11.3% drop compared to the previous quarter. 

The positive thing for Western Alliance is that the deposits bounced back in the first half of April, seeing a $2 million increase during this period. The bank also revealed that the percentage of deposits insured by the Federal Deposit Insurance Corporation (FDIC) is now at 73%.

“While we experienced elevated net deposit outflows immediately following the closure of other banks, deposit balances quickly stabilized,” said Western Alliance’s CEO Kenneth Vecchione.

Western Alliance shares closed on Tuesday at $32.51 per share, representing a 44.45% drop year-to-date. However, after the deposits news, the bank’s shares started surging and reached a price of $39.37 at one point.

Chemical Giant DuPont Will Split in 3 Companies, Replace CEO Ed Breen

Chemical giant DuPont is heading towards some major changes. The company announced on Wednesday that it will be splitting into three separate companies while...

Zoom Tops Estimates, Raises Full-Year Forecast

Zoom Video Communications reported its earnings for the first quarter of 2024 on Monday and topped the estimates of Wall Street analysts. The communications...

Reddit Stock Jumps on the Back of Open AI Partnership

Social media platform Reddit announced earlier this week that it is partnering up with artificial intelligence start-up Open AI to improve the experience of...