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Pacific Western Bank faced 'elevated' withdrawals after bank failures

Published 03/17/2023, 09:56 PM
Updated 03/17/2023, 10:00 PM
© Reuters. FILE PHOTO: A street sign marks Wall Street outside the New York Stock Exchange (NYSE) in New York City, where markets roiled after Russia continues to attack Ukraine, in New York, U.S., February 24, 2022. REUTERS/Caitlin Ochs

(Reuters) - Pacific Western Bank, a unit of PacWest Bankcorp, said on Friday it had witnessed 'elevated' withdrawals following the collapses of Silicon Valley Bank and Signature Bank (NASDAQ:SBNY), but deposit movements had stabilized since Monday.

The Los Angeles-based bank gave no details on the sum of the withdrawals but said they were mainly from its venture banking business line.

In a statement, Pacific Western Bank said it still maintained solid liquidity, with available cash exceeding $10.8 billion as of Friday.

The statement late on Friday came after PacWest's shares had slumped 19%, ending the week that was dominated by an unfolding crisis in the banking sector.

"Since Monday, March 13, 2023, net outflows have fallen sharply, with deposit balance fluctuations substantially stabilizing," it said in a statement.

Pacific Western Bank said that as of March 16, insured deposits accounted for over 62% of total deposits, while insured venture-specific deposits made up more than 77% of total venture deposits.

© Reuters. FILE PHOTO: A street sign marks Wall Street outside the New York Stock Exchange (NYSE) in New York City, where markets roiled after Russia continues to attack Ukraine, in New York, U.S., February 24, 2022. REUTERS/Caitlin Ochs

The bank also said it had a diversified deposit base with venture deposits comprising approximately 25% of total deposits.

Pacific Western Bank's announcement came after Reuters reported on Thursday that PacWest was in talks about a liquidity boost with Atlas (NYSE:ATCO) SP Partners and other investment firms.

Latest comments

billions outflows to where? I would love to know . I take it other banks or stocks or bonds or where. it's not like billions in cashed to where?
No one is very clear, because most banks in the United States have serious problems now.
No one is very clear, because most banks in the United States have serious problems now.
Yeah, let's bail out a few banks, primarily those in the VC business and pause rate hikes. That way we save a handful of incompetents and open the door for millions to be affected by hyperinflation. Makes total sense!
But if we stop raising interest rates now, inflation will continue to rise instead of falling as expected.
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