: Pacific West says it has ‘solid liquidity’ with $10.8 billion in available cash Friday
Pacific Western Bank became the latest bank seeking to reassure investors of its positioning, saying late Friday that it “continues to have solid liquidity.”
The bank, a subsidiary of PacWest Bancorp
had over $10.8 billion in available cash as of Friday, according to the update, with available cash exceeding uninsured deposits.
After it was announced that Silicon Valley Bank and Signature Bank were closing, “the bank experienced elevated net deposit outflows,” Pacific West said. These were mainly in the company’s venture-banking line. But since Monday, “net outflows have fallen sharply, with deposit balance fluctuations substantially stabilizing,” the company added.
As of March 16, the company’s insured deposits exceeded 62% of total deposits, per the latest update.
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“After a challenging week, we are encouraged that much of the volatility seems to have calmed over the past several days,” Chief Executive Paul Taylor said. “We have taken numerous steps, including leveraging available collateral, over the past week to enhance and fortify our liquidity during this time. Pacific Western Bank remains a diversified bank prepared to continue delivering for our customers.”
Taylor added that he was “encouraged by the distinct message that government officials, regulatory agencies, and industry leaders have been communicating, expressing a clear commitment to the banking system and its depositors.”
Charles Schwab Corp.
also issued an update earlier Friday, with that company citing “strong” client inflows. Western Alliance Bancorp
issued an update as well, saying that while it “experienced elevated net deposit outflows” Monday, “net outflows have fallen sharply.”
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Shares of PacWest have declined 65% since the close of trading March 8, when Silicon Valley Bank’s problems blew open. The stock closed down 19% in Friday’s session.