Shares of U.S. regional lenders rose premarket on Wednesday, buoyed by an update on Western Alliance Bancorp’s deposit levels. Western Alliance shares jumped 11% to $35.18, on course to erase losses recorded over the last two weeks. The bank reported deposits growth of over $2 billion as of May 12, while Bank of America Global Research resumed coverage of the bank with a “buy” rating and a $42 price target.
Other regional lenders such as PacWest Bancorp, Comerica Inc, Zions Bancorp and KeyCorp also saw their stock valuations rise between 1.3% and 3.5%. Investors have been closely monitoring deposit flows at U.S. banks for signs of distress, which climbed to $17.16 trillion in the week ended May 3, marking the first increase in four weeks.
The update on Western Alliance’s deposit levels has soothed concerns that the U.S. banking crisis was getting worse, and has given investors hope that regional lenders can break out of range-bound trading.