While all eyes have been distracted by First Republic Bank’s efforts to re-capitalize, it appears Pacific West Bank (PacWest) has also been trying to raise capital.
The bank issued an update this morning confirming that it is abandoning its plans for a capital raise:
In addition to these liquidity-enhancing measures, and as part of its proactive approach to capital and liquidity management, the Company has explored a capital raise with potential investors.
In light of the current volatility in the market and depressed market prices for regional bank stocks, as well as the availability of other options to enhance capital, the Company determined it would not be prudent to move forward with a transaction at this time.
This decision reflects the Company’s confidence in its financial strength and commitment to ensuring the long-term stability and profitability of the institution.
The bank announced that is has drawn on available federal facilities, including:
- $3.7 billion of borrowings from the FHLB,
- $10.5 billion of borrowings from the Federal Reserve Discount Window, and
- $2.1 billion in Bank Term Funding Program borrowings, in each case as of March 20, 2023.
Current stock price at 9:33 AM:
Market Summary > PacWest Bancorp
11.05 USD−1.16 (9.50%)today
Mar 22, 9:33 AM EDT
UPDATE:
10.87 USD−1.34 (10.98%)today
Mar 22, 11:43 AM EDT
Better stock up on peanut butter and jelly- lots of it. Fills your aching belly!