A Pacific Western Bank branch in Los Angeles, California, US, on Friday, March 10, 2023.
Eric Thayer | Bloomberg | Getty Images
PacWest Bancorp shares tumbled 56% 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 down 72% this year.
PacWest shares 1-day
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.
Other regional banks declined in extended trading following the report. The SPDR S&P Regional Banking ETF shed 4.4%, while shares of Western Alliance Bancorp dropped 24%.
A PacWest spokesperson did not immediately respond to a request for comment.
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