Western Alliance Bancorporation (WAL) shares jumped after the struggling regional bank said deposits have risen so far this quarter, which also boosted shares of other regional lenders.
Despite volatility in the banking sector, deposits at the bank as of May 12 had increased more than $2 billion from March 31, when they totaled $47.6 billion. Over 79% of deposits were insured, up from 68% at the end of the first quarter, Western Alliance said in a regulatory filing.
As with many of its rivals, concerns had been raised about the lender's ability to stay in business following the collapse of Silicon Valley, Signature, and First Republic banks earlier this year.
After the report, Bank of America reinstated coverage of Western Alliance, giving the stock a buy rating and noting that its business model was "more resilient than perceived."
Western Alliance shares spiked 14% today, although they’re still down 40% year-to-date. This compares to a 32% decline in the SPDR S&P Regional Banking ETF (KRE), a proxy for the performance of regional banks, so far this year.