PacWest Bancorp (NASDAQ:PACW) shares are tumbling in early trading Thursday after the bank said deposits declined last week.
What Happened: In a new regulatory filing, PacWest said deposits fell 9.5% last week on the heels of media reports indicating the regional bank was “exploring all of its options and having talks with potential investors and partners.”
“The news headlines increased our customers fears of the safety of their deposits,” PacWest said in the filing.
PacWest said it funded the deposit decline with available liquidity. As of May 10, immediately-available liquidity was $15 billion and uninsured deposits totaled $5.2 billion, representing a coverage ratio of 288%.
The entire regional banking sector has faced heavy selling pressure since March when rising rates led to a bank run on Silicon Valley Bank, which ultimately collapsed. Signature Bank went under soon after and at the beginning of the month, JP Morgan Chase & Co (NYSE:JPM) acquired a substantial majority of assets and assumed deposits of First Republic from the FDIC.
Several regional bank stocks continue to face selling pressure Thursday.
Check This Out: EXCLUSIVE: Wedbush Downgraded SVB Prior To Collapse, Other Regional Banks Present Opportunities
PACW Price Action: PacWest shares were down 20.1% at $4.85 at the time of publication, per Benzinga Pro.
Photo: pablovandenbosch from Pixabay.
