PacWest Bancorp Stock Is Down, But Off The Lows: What's Going On?

PacWest Bancorp PACW shares are plunging Thursday after the bank said it's weighing strategic options, which reportedly includes a potential sale. 

What Happened: Late Wednesday, Bloomberg published a report suggesting that PacWest has been exploring strategic alternatives, including a sale, a breakup or a capital raise.

Thursday morning, PacWest issued an update acknowledging that the company and its board "continuously review strategic options." The bank said it has been approached by several potential partners and investors in recent days and discussions are ongoing.

The news comes just days after JPMorgan Chase & Co JPM acquired a substantial majority of assets and assumed deposits and other liabilities of First Republic from the FDIC.

First Republic’s collapse marked the largest bank failure since the 2008 financial crisis. Broader concerns around the banking sector have continued to pressure the financials. 

PacWest noted that it has not experienced "out-of-the-ordinary deposit flows" following the First Republic Bank collapse.

See Also: PacWest Bancorp Stock Thrashed After Hours As Bank Explores Strategic Options

PACW Price Action: PacWest shares traded below $2.60 in Wednesday's after-hours session before recovering some losses after the company issued the update.

The stock was down 37.2% at $4.05 at the time of publication, according to Benzinga Pro.

Photo: jenniferfgallagher from Pixabay.