Shares of Western Alliance Bancorp surged over 24% Wednesday after the regional bank posted stronger-than-expected earnings and said its deposits had stabilized, helping allay fears that last month's banking crisis could envelop more lenders.

The Phoenix, Arizona bank was among several regional players punished by stock investors last month as consumers shifted their deposits into bigger institutions following the collapse of Silicon Valley Bank.

Western Alliance said late on Tuesday that total deposits fell 11% to $47.6 billion in the first quarter from the previous three months, but that deposits steadied late in the quarter and grew $2 billion from March 31 to April 14.

Balance sheet repositioning, which included selling some assets and reclassifying loans, resulted in non-operating charges of $110 million.

"We are seeing positive news from a regional bank that was in the crosshairs of the whole crisis. We aren't fully out of the woods yet, but things are a whole lot brighter for the financial sector and likely will only get better as confidence returns," Ryan Detrick, chief market strategist at Carson Group in Omaha, said in an email following Western Alliance's report.

Wedbush raised its rating on Western Alliance to "outperform" from "neutral" and added the bank to its "Best ideas list," among stocks including Apple and Microsoft .

Western Alliance's results soothed concerns about the stability of regional banks following worst U.S. banking crisis since 2008. PacWest Bancorp and First Republic Bank each soared over 12%. Zions Bancorp jumped nearly 8% ahead of its report due after the bell, while the SPDR S&P Regional Banking ETF surged about 4%.

The rally in Western Alliance following its report stands out among several regional banks that have posted their quarterly results this week.

Citizens Financial Group Inc. was trading near flat after reporting a quarterly profit early on Wednesday that missed Wall Street's estimates.

U.S. Bancorp rose 1.5% after beating estimates for first-quarter profit, while increasing its rainy-day funds to $427 million from $112 million last year. Charles Schwab Corp's climbed 3.6%, extending this week's gain to about 10% after the brokerage's quarterly profit surpassed estimates on Monday, while its slump in deposits was not as severe as expected.

Western Alliance's stock remains down over 40% from early March, before Silicon Valley Bank's implosion.