Shares of PacWest Bancorp tumbled Thursday after the regional bank reported that customers had recently drawn down about 9.5% of total deposits. Following the collapse of First Republic Bank last week, PacWest saw a rush of withdrawals of uninsured deposits, prompting it to pledge more of its assets as collateral to shore up its cash position, the bank said in a regulatory filing Thursday. The update marked a notable change from a week ago, when PacWest said it had not experienced “out-of-the-ordinary deposit flows” after First Republic’s hastily arranged sale to JPMorgan Chase. At the end of March, PacWest’s total deposits stood at more than $28 billion, down from about $34 billion at the end of 2022. Other regional bank shares, including Western Alliance and Zions, were also down Thursday morning.

Source: CNN May 11, 2023 16:31 UTC