Western Alliance Bancorporation Headquarters
By Russ Wiles || The Arizona Republic
After losing a massive amount of its stock-market value, Phoenix-based Western Alliance Bancorporation says it has taken additional steps to strengthen its available cash or liquidity position following a run on deposits suffered by other banks.
Customers withdrawing substantial funds led to the collapse of Silicon Valley Bank late last week, a fate Western Alliance has sought to avoid. Other regional banks have faced similar pressures.
The recent announcements, and a new investment by a hedge fund, have helped to stabilize the stock price of Arizona’s largest banking group, which was founded by former Phoenix Suns head Robert Sarver. The stock had lost more than 80% of its value in just three days before partially bouncing back.
“Western Alliance has taken additional steps to strengthen its liquidity position to ensure that we are in a position to meet all of our client funding needs, including increasing our borrowing capacity,” said Kenneth Vecchione, Western Alliance’s president and CEO, in a statement filed March 13 with the Securities and Exchange Commission.
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That was followed March 14 by an announcement that Miami-based hedge fund Citadel Advisors has purchased a 5.3% beneficial stake in Western Alliance, which operates banks in Arizona, California and Nevada.
Western Alliance’s stock closed March 14 at just under $30 a share, after trading as low as $8 or so the prior day. The stock had traded above $71 a share as recently as last week.
Western Alliance stock closed March 15 at $32.35 a share, up $2.48 a share for the day, despite a down day for the overall stock market.
