The Bank Slate


Western Alliance, PacWest among banks touting health

Several banks have issued statements showing their overall financial health and sources of liquidity in the wake of two high-profile bank failures in recent days.

Western Alliance Bancorp. in Phoenix, which had recently touted its financial stability, announced additional steps it had taken to improve its position.

The company said in a statement that it increased its borrowing capacity, adding that its cash reserves exceed $25 billion and are growing. Deposit outflows “have been moderate” and insured deposits exceed 50% of total deposits.

“We also welcome the banking agencies’ statement yesterday expressing their commitment to ensuring liquidity within the banking system, and their confidence in the strength of the banking industry,” Kenneth Vecchione, Western Alliance’s president and CEO, said in the statement.

PacWest Bancorp in Los Angeles touted its “diversified relationship-based commercial” banking model that includes its deposit base. The company noted that its deposits are down just 2% since the end of 2022.

The company said it has $1.9 billion of cash on its balance sheet, a fully collateralized facility from the Federal Home Loan Bank of San Francisco totaling $4.9 billion, Federal Reserve Discount Window availability of $2 billion and $5.3 billion of unpledged liquid securities.

“We have taken numerous strategic steps over the past four quarters to improve the balance sheet, including exiting non-core products, executing bond sales, a preferred stock offering and a credit-linked notes transaction,” PacWest said.

The company added that it began a cost-reduction initiative designed to increase earnings.

Columbia Financial in Fair Lawn, N.J., said in a press release that it is a community bank with “a diverse depositor base with over 210,000 accounts” and an average depositor account balance of about $37,000.

“Columbia Financial does not have any significant depositor concentrations,” the company said in a press release. “The company is neither exposed to cryptocurrency loans, deposits or services in any way, nor is the company involved with the venture capital or early-stage company space.”

Columbia also provided a long list detailing its sources of liquidity.

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