NEW YORK: Western Alliance Bancorp reels in more deposits in the second quarter – at a cost.

       The bank’s interest expense jumped more than eight-fold to US$451mil (RM2.04bil) from a year earlier, and was up 25% from the first quarter, according to a statement.

       That left the firm’s profit at US$1.96 (RM8.90) per share, a penny short of analysts’ estimates.

       The figures show the Phoenix-based lender made headway in rebuilding deposits, boosting them 7.3% from the end of March after a flurry of withdrawals rocked midsize US banks.

       But the hunt for cash is taking a bite out of profit, with the bank’s total cost of funds increasing 58 basis points to 2.85% “due to higher costs on deposits and borrowings”, executives wrote in a presentation.

       Western Alliance is among the first major US regional banks to post results from the period with investors closely watching the industry’s health.

       The company’s stock slipped after the close of trading in New York, paring what had been an 8.1% jump during the day’s session. Among firms in the KBW Bank Index, Western Alliance has the highest consensus rating, according to data compiled by Bloomberg. — Bloomberg

       StarPicks

       Embracing emerging Accounting Technology