PacWest, Western Alliance Depositors Sit Tight in Stock Turmoil

Investors have punished a handful of US regional banks amid fears the turmoil will ensnare more lenders. But depositors at some — at least for now — appear to be sitting tight.

Take Western Alliance, the Phoenix, Arizona-based bank whose shares tanked as much as 27% on Tuesday, the day after JPMorgan Chase & Co.’s emergency rescue of First Republic Bank. While the deal failed to quell investor concerns the upheaval would spread, depositors were a little less fazed: Between Monday and Tuesday, they added $600 million of cash to the bank.

“The bank has not experienced unusual deposit ...