(Bloomberg) -- PacWest Bancorp. said deposits stabilized after a flurry of withdrawals in March prompted concerns about the bank’s health and forced it to shore up liquidity.
Deposits at the bank were at $28.2 billion at the end of March, rising from a previous update by the firm as of March 20, according to a statement. The Beverly Hills, California-based bank also said it has transfered its $2.7 billion lender finance loan portfolio to held for sale.
“Deposits stabilized in the latter part of March and rebounded nicely in April, increasing approximately $700 million subsequent to quarter-end,” Chief Executive Officer Paul W. Taylor said in the statement.
The shares were down 1.4% at 4:30 p.m. in late New York trading.
PacWest has been taking steps to shore up liquidity following customer withdrawals amid regional banking turmoil that shuttered three rival lenders. Last month, the bank said it obtained $1.4 billion from a financing facility from Apollo Global Management-owned investment firm Atlas SP Partners and said deposits had stabilized as it sought to assure investors over its financial stability.
Like its regional lender peers, shares in the company have tumbled this year after rising interest rates depressed the value of bonds they bought when rates were low, and a sudden surge in customer withdrawals forced some of them to sell those assets at a loss. PacWest — whose shares have fallen 51% this year — was cut to junk by Fitch Ratings earlier this month, with the decline in deposits cited as a key driver for the decision.
The bank said on March 10 that it had taken steps to get rid of non-core products and boost earnings.
PacWest had 2,438 full-time, part-time, and temporary employees at year-end, according to regulatory filings. It was established in October 1999 and focused on providing banking and treasury management services to small, middle-market, and venture-backed businesses. The bank grew in part through 31 acquisitions since 2000, with offices in California; Durham, North Carolina; and Denver, plus loan production offices around the country.
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