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PacWest Corp. is reportedly in talks with Atlas SP Partners and other investment firms for more liquidity, flagging other regional US banks considering that option after Silicon Valley Bank failed on Friday.
The bank based in Beverly Hills, California is looking at a number of options to increase its liquidity, Reuters reported, citing unnamed sources. There is no guarantee that a deal will happen, they saying.
PacWest shares gained 0.7% in regular-session trading Thursday, but fell 7.4% in trading after hours.
The bank in an update on Friday said it had $33.2 billion in total deposits as of March 9, 2023, up from $33.9 billion on December 31, 2022. It also said it had $1.9 billion in cash on its balance sheet, fully credit secured $4.9 billion Federal Bank of San Francisco Home Loan facility, $2.0 billion Federal Reserve discount window availability, and uncommitted liquid securities of ~$5.3 billion.
D. A. Davidson updated PacWest (NASDAQ:PACW) on Monday to Buy, calling the stock sell-off a “more attractive entry point.”
PacWest (PACW) shares fell 7.9% last week and 59% last month.
On Tuesday, SA contributor InsiderInsights said insider stock trading indicates PacWest (PACW) and other banks are overreacting.