Western Alliance is one of the regional banks that's been square in the crosshairs of short sellers in the past month. Shares fell to as low as $7.46 from +$80 in February.
With that, how much money do you think would have fled from the bank?
Well there's no need to guess as the company just revealed the answer. Deposits at the end of Q1 were $47.6B compared to $53.6B at year end. A $6B loss hardly sounds irrecoverable. They also said outflows dwindled since March 20.
There are some knock-ons for the stock if held-to-maturity bonds need to be sold but if this is a glimpse into the deposit flight of one of the worst-hit regional banks, then it hardly sounds like something devastating for the sector.
Shares of WAL were halted after jumping on the headlines and you can see how the KRE regional bank ETF is doing.
Update: The KRE has given much of that pop back.
