Western Alliance's Growing Deposits Propel Regional Bank Stocks to Soar

Regional bank stocks surged on Wednesday after Western Alliance reported that customer deposits are growing.

Western Alliance said in a regulatory filing Tuesday that its deposit balances stabilized by late March, and that its deposit growth exceeded $2 billion between March 31 and May 12 to around $50 billion. That’s up from $46.7 billion as of the end of last quarter.

Western Alliance shares rose roughly 13%, recouping its losses and then some from the last two weeks.

Shares of other beaten-down regional lenders rallied on the news. The SPDR S&P Regional Banking exchange-traded fund rose about 6%. PacWest shares rose about 18%, KeyCorp added 7% and Comerica marched up 11%.

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