Bank Reports $20 Billion in Available Liquidity
As of March 16, 2023, the bank maintains a strong position with over $20 billion in immediately available liquidity. Following the Signature Bank closure announcement on March 12, the bank experienced elevated net deposit outflows on March 13, primarily in its Technology & Innovation group. Since then, net outflows have dropped, with deposit balance fluctuations normalizing, significant inflows, and new account openings.
Insured Deposits Exceed 55% of Total Deposits
As of March 16, 2023, insured deposits make up over 55% of total deposits, including deposits eligible for "pass-through" deposit insurance.
Key Strengths: Strong Capital Base and Diversified Deposit Base
The bank emphasizes two crucial strengths for the current environment: a strong capital base and a diversified deposit base. The CET1 ratio was 9.3% at the end of 2022, and after adjusting for $1.1 billion in unrealized losses, the bank's CET1 ratio would be 7.9%. Western Alliance Bank also serves a diverse national and regional commercial customer base, with deposits in its Technology and Innovation group making up less than 8% of total deposits as of March 16, 2023.
CEO Highlights Financial Stability and Responsible Risk Management
Kenneth A. Vecchione, President and CEO, reaffirms the bank's long history of financial stability and cautious risk management, appreciating the support from banking agencies, government officials, and industry leaders during this challenging time.
About Western Alliance Bancorporation
Western Alliance Bancorporation (NYSE: WAL) has more than $65 billion in assets, making it one of the top-performing banking companies in the United States. Its primary subsidiary, Western Alliance Bank, provides tailored banking solutions and outstanding service for business clients.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements based on current information and is subject to risks, uncertainties, assumptions, and changes in circumstances. Factors that could cause actual results to differ from historical or expected results are discussed, including risk factors from the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The bank does not intend and disclaims any duty or obligation to update or revise forward-looking statements.