The statement from Western Alliance came after reports that PacWest Bancorp was exploring strategic options including a sale or capital raising.
The news sent shares of several regional lenders tumbling in after-market trading, led by a 52% plunge at PacWest and 23% decline at Western Alliance.
The late-day drop in regional bank shares added to losses in Wednesday's regular trading session, despite reassurances by U.S. Federal Reserve Chair Jerome Powell that the country's banking system remained resilient. JPMorgan agreed on Monday to acquire a majority of First Republic's assets in a $10.6 billion deal after regulators seized the lender, which became the largest U.S. bank failure since the 2008 financial crisis.
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