Western Alliance Bank, the primary subsidiary of Western Alliance Bancorporation, on March 17 issued the following statement reaffirming its financial strength.

Western Alliance remains in a strong position, with immediately available liquidity of over $20 billion as of March 16. The bank experienced elevated net deposit outflows on March 13, immediately following the announcement of the Signature Bank closure on March 12, concentrated primarily in our Technology & Innovation group. Since then, net outflows have fallen sharply, with deposit balance fluctuations returning to normalized levels in recent days, including significant inflows and new account openings.

As of March 16, insured deposits represented more than 55 percent of total deposits, including deposits eligible for "pass-through" deposit insurance.

The bank again highlighted two critical strengths that positions it well in the current environment:

• Strong Capital Base: As of year-end 2022, Western Alliance’s CET1 ratio was 9.3 percent and unrealized losses on its held-to-maturity and available-for-sale investment portfolios totaled $1.1 billion. After adjusting for these losses, the bank’s CET1 ratio would be 7.9 percent, meaning that even in the unlikely event that the bank was required to recognize this charge, its capital levels would remain above those required to be considered well capitalized. This compares favorably to many of the largest banks in the country.
• Diversified Deposit Base: Western Alliance Bank serves a highly diverse national and regional commercial customer base, representing a broad range of industries, client types, and geographies, including a diversified suite of deposit channels such as Regional Commercial banking, HOA, Mortgage Warehouse, and Business Escrow Services, among others. For example, deposits within our Technology and Innovation group, which has been disproportionally impacted by the recent market turbulence, represented less than 8 percent of total deposits as of March 16. A substantial percentage of these accounts are tied to broader banking relationships that include treasury management services and/or credit facilities that have proven to make these deposits more resilient to runoff.

Kenneth A. Vecchione, President and CEO of Western Alliance Bank, concluded, "We have a long history of financial stability and responsible, cautious risk management. These sound fundamentals have served us well over the past week. We also note and appreciate the clear message the banking agencies, government officials and industry leaders have been communicating, expressing their continued confidence in the banking system, and stating their commitment to ensuring depositors at impacted institutions will be protected and will have access to their funds. This has certainly been a challenging few days for our industry and we appreciate our deep relationships with customers across the bank who continue to choose Western Alliance as their trusted banking resource."