Western Alliance cuts back on emergency funding
As deposits return, regional lender repays FHLB advances and other costly funding
Western Alliance Bank raced to salvage its thinning interest margin in the second quarter, using deposits to repay the costly stop-gap funding that helped it weather March’s banking crisis.
The bank’s borrowing liabilities shrank 40% in Q2, from $15.9 billion to $9.6 billion, as it funnelled deposits to paydowns of advances from the Federal Home Loan Bank (FHLB) of San Francisco.
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