Regional bank Western Alliance said business is pretty much back to normal after concerns about Silicon Valley Bank's collapse sent shockwaves through the banking sector.
Western Alliance has $20 billion of cash on hand and the amount of withdrawals from accounts has plunged in recent days. The bank said it has a "significant" amount of money coming in from deposits, and a large number of new accounts were opened.
That's a sharp contrast from Monday, when customers had been yanking deposits out of the bank in fear that Western Alliance may be the next bank to fail. Other regional banks, including First Republic and PacWest, have also struggled mightily to reassure customers and investors that they're healthy.
Still, Western Alliance's stock fell 15% Friday.
The bank said as of yesterday, 55% of its deposits were insured. That compares to just 7% at SVB, where many tech companies stored millions of dollars of cash — well in excess of the FDIC's $250,000-per-account insurance limit. In an extraordinary action Sunday, the FDIC guaranteed all Silicon Valley Bank customers' deposits.
“We have a long history of financial stability and responsible, cautious risk management," said Kenneth Vecchione, CEO of Western Alliance Bank, in a statement. "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.”