The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

PacWest: Deposits fell 9.5% last week

PacWest Bancorp in Los Angeles reported another large outflow of deposits.

The $44.3 billion-asset company disclosed in its quarterly filing that deposit balances fell by 9.5% last week.

While First Republic Bank in San Francisco failed on May 1, PacWest said that most of the outflows took place on May 4-5 after news reports said it was “exploring all of its options and having talks with potential investors and partners.”

PacWest said last month that it was looking to shed about a fifth of its assets, including its lender finance loan portfolio. The company later disclosed that it was having “ongoing” discussions after being approached by several potential partners.

“The company will continue to evaluate all options to maximize shareholder value,” PacWest said.

PacWest said in its filing that it had $15 billion of immediately available liquidity on May 10, or nearly triple the $5.2 billion of uninsured deposits on its balance sheet.

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