PacWest Bankcorp shares fell 54% following the news. Bloomberg It is weighing a variety of strategic options, including selling. According to people familiar with the matter,
Since the collapse of Silicon Valley Bank in March Shares of several West Coast regional banks were also affected, with shares of PacWest down 72% so far this year.
PacWest reported total deposits fell by more than $5 billion in the first quarter to $28.2 billion as of March 31. However, the company said it had an increase of $1.1 billion in net income on deposits from March 20 through the end of the quarter.
The bank also said that Deposits increased by an additional $700 million from March 31 to April 24.
Currently, there is no guarantee that PacWest will be the next bank seized by the government. With Silicon Valley banks already in the hands of the US government, it’s a possibility, however, it all depends on how much PacWest shares will change over the coming weeks.
US regulators It took control of First Republic Bank last week. So it’s likely that PacWest suffers the same fate.
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