After a 20% decline in deposits over a three-month period, Pacific Western Bank raised its liquidity.
According to a news release released on Wednesday, PacWest Bancorp’s subsidiary borrowed $2.1 billion via the Bank Term Financing Program, $3.7 billion from the Federal Home Loan Bank, and $10.5 billion through the Federal Reserve Discount Window (March 22).
Also, it has a new senior asset-backed loan agreement from Atlas SP Partners, according to the news release.
“I am happy with the work performed by the whole PacWest team in these trying times to increase our liquidity and retain franchise value,” stated Paul W., president and chief executive officer of Pacific Western Bank.
Taylor stated in the press release. “We have stayed committed to our consumers and communities, and we are appreciative of their support and dedication.”
Deposits at the bank fell from $33.9 billion on December 31, 2022 to $27.1 billion on March 20, 2022.
This news comes at a time when regional banks have continued to struggle amid fears of bank runs.
Pacific Western Bank said that as of March 20, it had $11.4 billion in accessible cash, which exceeded its total uninsured deposits of $9.5 billion; that its deposit base is diverse; and that the Federal Deposit Insurance Corporation insures 65% of its total deposits (FDIC).
“As we look ahead, we remain confident in PacWest’s strength and are encouraged by the stability we have observed in our deposits and liquidity over the last week,” Taylor said in a statement.
“We are also pleased by the clear message from government officials, regulatory bodies, and industry leaders, notably Secretary Yellen’s recent statements on the safety of smaller bank depositors.”
