PacWest Bancorp in Los Angeles said deposit volatility has “calmed” in recent days.
The $41.2 billion-asset company said in a press release that it had elevated net deposit outflows after regulators closed Silicon Valley Bank and Signature Bank, with a concentration in its venture banking business.
Net outflows “have fallen sharply” since March 13, with “deposit balance fluctuations substantially stabilizing,” PacWest said.
The company said its bank has solid liquidity, with over $10.8 billion of available cash on Friday. Insured deposits comprise nearly two-thirds of total deposits. Venture deposits made up roughly a quarter of all deposits on Thursday.
“After a challenging week, we are encouraged that much of the volatility seems to have calmed over the past several days,” Paul Taylor, PacWest’s president and CEO, said in the release.
“We have taken numerous steps, including leveraging available collateral, over the past week to enhance and fortify our liquidity during this time,” Taylor added.