PacWest Bancorp in Los Angeles cut its dividend to a penny.
The $44.3 billion-asset company said late Friday that it had lowered the quarterly payout, which previously was 25 cents a share.
The reduction is a “prudent step” that reflects economic uncertainty, banking sector volatility and potential regulatory changes to capital requirements, CEO Paul Taylor said in a press release.
“Our business remains fundamentally sound,” he added.
PacWest has faced wild swings in its stock price since the March failures of Silicon Valley Bank and Signature Bank. Last month, the company disclosed a large decline in deposits, along with a plan to shrink its assets by 20%.
The company recently said it is having “ongoing” discussions about its strategic options after being approached by several potential partners.