Pacific Western Bank announced on Thursday that it is exploring all strategic options after the bank’s recent shares decreasing by 50 percent, following in the footsteps of the recently collapsed First Republic Bank.
“In accordance with normal practices the company and its board of directors continuously review strategic options. Recently, the company has been approached by several potential partners and investors, discussions are ongoing. The company will continue to evaluate all options to maximise shareholder value,” said PacWest in a statement.
The value of PacWest’s loans and bond holdings has plunged, as interest rates hiked. Customers cashed out their deposits in March out of fear that the bank could fail.
PacWest reported last week that customers have stopped withdrawing their money and 73 percent of the bank’s deposits were insured, on Thursday, it said 75 percent of its deposits were insured as of May 2.
“The bank has not experienced out-of-the-ordinary deposit flows following the sale of First Republic Bank and other news. In addition, the company recently paid down $1 billion of borrowings with our excess liquidity. Our cash and available liquidity remains solid and exceeded our uninsured deposits, representing 188 percent,” said the bank in a statement.
