Western Alliance Bancorporation said on Wednesday its first-quarter deposits were 11% lower than at the end of 2022, as customers spooked by the sudden collapse of two U.S. mid-sized lenders pulled out funds.

The stock slumped as much as 19% earlier Wednesday after the company gave a preliminary first-quarter update on Tuesday without disclosing its deposits, which are central to investor concerns after last month's banking crisis.

The announcement on deposits helped the company's stock regain some lost ground before it slid again late Wednesday. Shares closed 12% lower at $29.37.

Western Alliance said total deposits were $47.6 billion as of March 31, down from $53.6 billion at the end of 2022.

Total insured deposits represented roughly 68% of its total deposits, significantly higher than the proportion at year-end.

"While earnings are under material near-term pressure, we think the stabilization of deposit pressures should allay investor concerns of severe deposit outflows," analysts at Truist Securities said.

The omission of deposit data in Tuesday's disclosure was likely to frustrate investors, who would react negatively, Jefferies analysts said earlier in a note.

GRAPHC: Deposit levels at Western Alliance Bancorp

Regional banks have been trying to assure customers that their deposits are secure after recent bank runs following the failures of Silicon Valley Bank and Signature Bank last month.

The collapses triggered the biggest banking crisis since 2008, fueling volatility and exacerbating recession fears.

Policymakers have sought to emphasize that the current crisis is different from the last as lenders are better-capitalized, but Federal Reserve data showed that banks sought record amounts of emergency liquidity in mid-March.

While Western Alliance has reported a large decrease in deposits, "this is ultimately an acceptable and manageable outcome for the company," analysts at RBC Capital Markets wrote in a note.

U.S. banks will kick off first-quarter earnings next week, with investors expected to watch their balance sheets closely for any signs of stress.