US Banks: Is system deposit flight being contained?
Report by Galliano's Financials Research
Deposit outflows for 1Q23 in the most affected of the mid-sized US banks were in low double digits, much less severe than the deposit collapse suffered by First Republic. In fact, since the end of 1Q23, some smaller banks have reported slightly positive deposit flows, and the recent usage of Fed and FHLB funding lines is not alarming. Victor Galliano reviews a select group of mid-sized US banks focusing in on a number of key metrics; despite the challenging times, he likes M&T Bank and Western Alliance. Victor also believes that market concerns regarding PacWest’s viability may be overdone.