Global Courant 2023-05-04 02:29:27
A branch of Pacific Western Bank in Los Angeles, California, U.S., on Friday, March 10, 2023.
Eric Thayer | Bloomberg | Getty Images
PacWest Bancorp Shares plunged 56% in extended trading Wednesday following a report that the bank is weighing strategic options, including a possible sale.
The regional bank has been assessing options including a breakup or a capital raise, according to a Bloomberg report citing known sources. A formal sale has yet to begin because PacWest doesn’t have many potential buyers interested in the entire company, the report said.
Shares of many West Coast regional banks have been particularly hard hit since the March collapse of Silicon Valley Bank, in part because of concerns that their customer bases are similar. PacWest is based in Los Angeles. The stock is down 72% this year.
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PacWest reported that total deposits fell more than $5 billion in the first quarter to $28.2 billion as of March 31. However, the company said it saw a net gain of $1.1 billion in deposits from March 20 through the end of the quarter.
PacWest also said deposits grew by another $700 million between March 31 and April 24.
Other regional banks fell into extended trading following the report. The SPDR S&P Regional Banking ETF lost 4.4%, while shares of Bancorp of the Western Alliance down 24%.
A PacWest spokesperson did not immediately respond to a request for comment.
This is the latest news. Check back later for updates.
— CNBC’s Jesse Pound contributed reporting.
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