"Western Alliance is not exploring a sale, nor has it hired an advisor to explore strategic options," the lender said.

The bank added that it was weighing legal options against the newspaper.

Earlier in the day, the Financial Times reported that Western Alliance was exploring strategic options including a potential sale of all or part of its business, citing two people briefed on the matter.

Three U.S. regional banks have failed in the last two months, spurring widespread worries about the sector's stability and deepened concerns about lenders as nervous clients moved their money to bigger financial institutions.