This Regional Bank Is Going to Surprise the Skeptics
Regional banks as a group have been beaten down by pessimistic investors ever since mid-March, when Silicon Valley Bank imploded. Silicon Valley Bank was an unusual case in that it was not managing its interest rate risk properly and lost a lot of money on Treasuries and mortgage-backed securities it bought when interest rates were close to zero. Western Alliance (NYSE: WAL) was one of the regional banks that was lumped in with Silicon Valley Bank, but it is a much better-run business. Here's why it is different.
Western Alliance has been under pressure ever since the collapse of Silicon Valley Bank. The regional banks with tech industry exposure and large uninsured deposits were subjected to rapid deposit outflows. Since Western Alliance owns a tech bank called Bridge Bank, which provides banking services for tech and life science companies, it experienced deposit withdrawals and the stock was sold off hard.
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Source Fool.com
