WAL - Western Alliance takes additional steps to bolster liquidity

2023-03-13 16:18:15 ET

• Western Alliance Bank ( NYSE: WAL ) President and CEO Kenneth Vecchione said Monday it has taken addition steps to strengthen the bank's liquidity "to ensure that we are in a position to meet all of our client funding needs, including increasing our borrowing capacity."
• As of Monday morning, Western Alliance ( WAL ) cash reserves exceeded $25B "and are growing, while deposit outflows have been moderate." He noted that insured deposits exceed 50% of total deposits.
• Vecchione added that although the company has had no sales of securities to date, if adjusted to reflect unrealizes losses in its held-to-maturity and available for sale investment book, the company's CET1 capital ratio as of Dec. 31, 2022 would be ~7.9%, "which compares very favorably to peers."
• Western Alliance ( WAL ) stock tumbled 47% in Monday trading.
• SA contributor The Value Investor said Western Alliance's ( WAL ) lower deposits, lower equity, and concerns on the asset book are of concern.

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