PacWest Bancorp Stock Is Rising: What's Going On?

PacWest Bancorp PACW shares are trading higher Monday after the company provided an update on its liquidity position. 

What Happened: PacWest highlighted its liquidity position, headlined by more than $10.8 billion in cash late Friday as part of an investor update. The bank noted that available cash exceeds total uninsured deposits.

Following the collapse of SVB Financial Group SIVB and Signature Bank SBNY, PacWest experienced elevated net deposit outflows, but those outflows have since "fallen sharply" and deposit fluctuations have stabilized, the bank said in the update.

"After a challenging week, we are encouraged that much of the volatility seems to have calmed over the past several days. We have taken numerous steps, including leveraging available collateral, over the past week to enhance and fortify our liquidity during this time," said Paul Taylor, president and CEO of PacWest Bancorp.

As of March 16, insured deposits represented more than 62% of total deposits. Venture deposits represented approximately 25% of total deposits.

The news comes after a series of bank runs ultimately led to the biggest banking collapse since the 2008 financial crisis. The U.S. government has since stepped in and injected liquidity into the situation, accompanied by plans to create a new Bank Term Funding Program centered around protecting institutions.

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PACW Price Action: PacWest shares were up 19.5% at $11.05 at time of publication, according to Benzinga Pro.

Photo: Klarinette71 from Pixabay.