PacWest Bank shares fall 30% as crisis prompts customers to yank deposits
CNN/Stylemagazine.com Newswire | 5/11/2023, 9:29 a.m.
Following the collapse of First Republic Bank, PacWest said it saw a rush of withdrawals. Pictured is a Pacific Western Bank branch in Encino, California, on April 22.
Mandatory Credit: Morgan Lieberman/Bloomberg/Getty Images
Originally Published: 11 MAY 23 09:05 ET
Updated: 11 MAY 23 09:56 ET
By Allison Morrow, CNN
(CNN) -- Shares of PacWest Bancorp fell 30% and were halted for volatility Thursday morning after the regional bank reported that customers had recently drawn down about 9.5% of total deposits.
PacWest is one of several mid-size lenders that has been under intense scrutiny in the weeks since Silicon Valley Bank collapsed on March 10, setting off a panic around the financial stability of similarly positioned banks.
Last week, following the collapse of First Republic Bank, PacWest said it saw a rush of withdrawals of uninsured deposits, prompting it to pledge more of its assets as collateral to shore up its cash position.
Other regional bank shares, including Western Alliance and Zions, were also down Thursday morning.
PacWest's stock is down 78% this year.
This story is developing. It will be updated.
