Western Alliance has hit back at an article published by the Financial Times.
The Financial Times’ report on 4 May that Western Alliance is considering a potential sale of all or part of its business is categorically false in all respects says the bank.
“There is not a single element of the article that is true. Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options.
It is shameful and irresponsible that the Financial Times has allowed itself to be used as an instrument of short sellers and as a conduit for spreading false narratives about a financially sound and profitable bank.
We are considering all of our legal options in response to today’s article.”
With more than $65bn in assets, Western Alliance says that it offers a “full spectrum of tailored solutions and outstanding service delivered by banking and mortgage experts who put customers first.”
On 3 May, the bank reported that it had not experienced unusual deposit flows following the sale of First Republic Bank and other recent industry news. Total deposits were $48.8bn as of Tuesday, 2 May, up from $48.2bn as of 1 May and flat to 28 April.
Quarter to date, deposits are up $1.2bn from $47.6bn as of 31 March. The bank reaffirmed its $2bn quarter-over-quarter deposit growth rate guidance, as stated in its Q1 2023 earnings call.
Western Alliance share price down by 69% YTD
At $18.20, the Western Alliance share price is down by 51% in the past five days. For the year to date, the share price is down by 69%.
For the three months to end March, the bank posted net income of $142.2m, down 40.8% y-o-y.
Net revenue of $551.9m for the first quarter is down by 0.7%. Higher rates boosted the bank’s net interest margin to 3.79% in the first quarter from 3.32% in the year ago quarter.
Established in 2003, the bank operates 38 branches and is headquartered in Arizona.