PacWest Bancorp
stock tumbled in early trading Thursday after the regional bank said deposits fell 9.5% last week.
The Beverly Hills-based bank (ticker: PACW) said the majority of that decline occurred on May 4 and May 5 after news reports that PacWest was exploring all of its options and holding talks with potential investors and partners. PacWest itself confirmed that it continues to evaluate all options in an update last week.
The bank said it funded the withdrawals with available on-balance sheet liquidity.
“The news headlines increased our customers’ fears of the safety of their deposits,” the bank said in an SEC filing.
PacWest said that as of May 10, it had $15 billion in immediately available liquidity–more than enough to cover its $5.2 billion in uninsured deposits.
Last week, the lender said it had not experienced “out-of-the-ordinary deposit outflows” following the sale of
First Republic Bank
and other news. Well, deposit outflows resumed last week and it’s spooking investors.
The stock was around 19% lower at $4.93 in morning trading. Other regional bank stocks were impacted too, as shares in
Western Alliance
(WAL) fell around 2%,
Comerica
(CMA) stock declined 5%,
Bank of Hawaii
(BOH) was also down 5% and
Zions Bancorp
(ZION) was close to 4% lower. The
SPDR S&P Regional Banking ETF
(KRE) was 2.3% down.
Write to Callum Keown at [email protected]
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