Pacwest (PACW) plunges after saying deposits fell 9.5% during week to May 5

PacWest Bancorp (NASDAQ: PACW) shares trade 15% lower in pre-market Thursday after the bank said deposits fell about 9.5% in a week that ended May 05.

The bank witnessed strong outflows on May 04 and May 05 after news reports emerged that it is “exploring all of its options and having talks with potential investors and partners".

Shares of the company fell 41% from April 28 to May 05.

“The news headlines increased our customers fears of the safety of their deposits,” PacWest said in the update.

The company also said that its immediately-available liquidity was $15 billion as of May 10.

PacWest also said it plans to complete strategic asset sales in the second quarter of 2023 to improve our liquidity position and capital ratios.

By Senad Karaahmetovic

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