April 5 (Reuters) - Western Alliance Bancorporation (WAL.N) said on Wednesday its first-quarter deposits were 11% lower than at the end of 2022, as customers spooked by the sudden collapse of two U.S. mid-sized lenders pulled out funds.
Western Alliance said total deposits were $47.6 billion as of March 31, down from $53.6 billion at the end of 2022.
Total insured deposits represented roughly 68% of its total deposits, significantly higher than the proportion at year-end.
The collapses triggered the biggest banking crisis since 2008 and stoked heavy volatility in the sector, worsening existing jitters of an imminent recession.
Analysts at RBC Capital Markets wrote in a note that while Western Alliance has reported a large decrease in deposits it believes that "this is ultimately an acceptable and manageable outcome for the company."