PacWest Bancorp Is Not Pursuing a Capital Raise, but Shares Are Falling Today
Shares of PacWest Bancorp (NASDAQ: PACW) traded roughly 10% lower as of 12:08 p.m. ET on Wednesday after the bank provided an update on deposit flows and announced that it would not pursue a capital raise, despite exploring the idea.
PacWest has been one of the banks that investors have been watching very closely following the collapse of SVB Financial due to its exposure to the venture capital (VC) space, which made up about a third of the bank's total deposits at the end of 2022.
In its update, PacWest said deposits have declined from about $34 billion at the end of 2022 to roughly $27.1 billion as of March 20. About $5 billion of that decline was associated with PacWest's VC clients, while the bank also saw about a $1.8 billion decline among its community-banking customers.
Source Fool.com
