As their deposits dropped 20% in three months, Pacific Western Bank expanded its liquidity.
According to a news release released on Wednesday, PacWest Bancorp’s subsidiary borrowed $3.7 billion from the Federal Home Loan Bank (FHLB), $10.5 billion through the Federal Reserve Discount Window, and $2.1 billion from the Bank Term Financing Program (March 22).
The news release also mentions that it has a fresh senior asset-backed financing agreement from Atlas SP Partners.
Paul W., president and chief executive officer of Pacific Western Bank, stated, “I am happy with the work made by the whole PacWest team in these challenging conditions to increase our liquidity and retain franchise value.
Taylor made a statement in the news item. “We are grateful for their support and devotion, and we have remained devoted to our consumers and communities.”
On March 20, 2022, the bank’s deposits were down to $27.1 billion from $33.9 billion on December 31, 2022.
This information is released while local banks struggle on account of worries of bank runs.
According to Pacific Western Bank, as of March 20, it has $11.4 billion in cash on hand, which was more than its whole amount of uninsured deposits ($9.5 billion); its deposit base is broad; and 65% of its total deposits are covered by the Federal Deposit Insurance Corporation (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.”
