PacWest shares slip after it announces 20% drop in deposits
PacWest Bancorp’s shares fell about 10% Wednesday morning after the bank revealed customers had drawn down some 20% of its total deposits this year.
The bank — which has been under intense scrutiny since the collapse of Silicon Valley Bank earlier this month — had nearly $34 billion in deposits at the start of the year, versus $27.1 billion this week. PacWest said in a statement that its deposits balances had “stabilized.”
PacWest also said it had secured $1.4 billion in cash from investment firm Atlas SP Partners and would not go forward with a capital raise.
“In light of the current volatility in the market and depressed market prices for regional bank stocks, as well as the availability of other options to enhance capital, the Company determined it would not be prudent to move forward with a transaction at this time,” the bank said.