Wednesday, May 3, 2023

PacWest falls 40% after hours on report bank is weighing sale

A Pacific Western Bank branch in Los Angeles, California, US, on Friday, March 10, 2023.

Eric Thayer | Bloomberg | Getty Images

PacWest Bancorp shares tumbled 44% in extended trading on Wednesday following a report that the bank is weighing a sale.

The regional bank has been assessing options, including a breakup or a capital raise, according to a Bloomberg report citing sources familiar.

The shares of many West Coast regional banks have been hit particularly hard since the collapse of Silicon Valley Bank in March, in part because of concerns that their customer bases are similar. PacWest is based in Los Angeles. The stock is gaming down 72% this year.

PacWest reported that total deposits declined more than $5 billion in the first quarter to $28.2 billion as of March 31. However, the company said that it saw a net gain of $1.1 billion in deposits from March 20 until quarter end.

PacWest also said that deposits grew by another $700 million from March 31 through April 24.

This is breaking news. Please check back for updates.

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