Why Is PacWest Bancorp Stock Trading Lower Today?

PacWest Bancorp PACW shares are trading lower on Wednesday after the company provided a further update and details on its financial strength.

Pacwest Bancorp said, consistent with its announcement on March 17, 2023, the bank continues to benefit from solid liquidity and stabilized deposit balances, with over $11.4 billion in available cash as of March 20, 2023, which exceeds total uninsured deposits of $9.5 billion as of March 20, 2023.

In total, as of March 20, 2023, FDIC-insured deposits exceeded 65% of total deposits, including accounts eligible for pass-through insurance, and FDIC-insured venture-specific deposits accounted for more than 82% of total venture-specific deposits, including accounts eligible for pass-through insurance. The bank also has $600 million of deposits that are backed by other tradeable securities. PacWest Bancorp said it would not be prudent to move forward with capital raise at this time.

"As we look ahead, we have continued confidence in the strength of PacWest and are encouraged by the stability we have seen in our deposits and liquidity over the past week. Additionally, we continue to be encouraged by the clear message from government officials, regulatory agencies, and industry leaders, including Secretary Yellen's recent remarks regarding the protection of smaller bank depositors,” said Paul W. Taylor, Pacific Western Bank President and CEO.

PacWest is a bank holding company headquartered in Los Angeles, California, with one wholly-owned banking subsidiary, Pacific Western Bank.

Price Action: PacWest has a 52-week high of $46.75 and a 52-week low of $5.

PacWest shares are down 10.0% at $10.99 at the time of writing, according to Benzinga Pro.