The team at PacWest Bancorp have updated on the situation at the bank after reports that its advisors were considering all options, including a complete sale of the financial institution.
In a press release late Wednesday. PacWest Bancorp stated that the company remained committed to earlier plans of selling strategic assets. It stated:
Our message remains consistent with what was conveyed last week with earnings. As previously announced, the Company has explored strategic asset sales, including moving the $2.7 billion Lender Finance loan portfolio to held for sale in 1Q23. This planned sale remains on track and upon completion will accelerate our CET1 capital ratio to 10%+ (from 9.21% at 1Q23).
PacWest Bancorp Deposits Remain Solid
In addition, the team at PacWest Bancorp stated that customer deposits remained strong and were yet to show any abnormal activity.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.The bank has not experienced out-of-the-ordinary deposit flows following the sale of First Republic Bank and other news. Core customer deposits have increased since March 31, 2023, with total deposits totaling $28 billion as of May 2, 2023 with insured deposits totaling 75% vs. 71% at quarter end and 73% as of April 24, 2023.
In addition, the company recently paid down $1 billion of borrowings with our excess liquidity. Our cash and available liquidity remains solid and exceeded our uninsured deposits, representing 188% as of May 2, 2023.