- PacWest Bancorp is reportedly considering various strategic options, including a sale.
- The news sent PacWest’s stock down 52.5% to $3.05 a share in after-hours trading Wednesday.
- The US banking sector has been plagued by three major bank failures in recent months.
PacWest Bancorp is the latest regional bank to face uncertainty following media reports considering various strategic options, including a sale.
The first news reported by bloomberg on wednesday, Beverly Hills-based bank The stock fell 52.5% to $3.05 per share in after-hours trading on Wednesday.
Bloomberg reported, citing people familiar with the matter, that Pakwest could be sold but has yet to initiate formal auction proceedings.
PacWest will have trouble selling the entire business outright. 69 branches, Bloomberg reported, among other lending businesses.
Wednesday’s crash in PacWest stocks sent stocks down for the fifth straight day. His share price plummeted 26% on Tuesday as regional bank stocks plunged two days after First Republic Bank collapsed and was acquired by the Federal Deposit Insurance Corporation.of the First Republic The assets were subsequently sold to JP Morgan.
The US banking sector Silicon Valley Bank And New York’s Signature Bank collapsed in March.
PacWest CEO Paul Taylor responded to those concerns by trying to assuage customers’ concerns during the company’s first quarter earnings call on April 26. Amid the banking crisis, there was an outflow of deposits at the beginning of March, but the situation stabilized later in the month. , He said, according to the transcription.
Deposits “recovered nicely” in April, Mr Taylor added.
PacWest shares closed 2% lower at $6.42 on Wednesday, down 72% so far this year.
PacWest did not immediately respond to an Insider’s request for comment sent outside of normal business hours.