Another midsize bank faced a crisis of confidence on Thursday, as Pacific Western Bank said that it had lost nearly 10 percent of its deposits over the last week, sparking a renewed plunge in its already depressed share price.
The deposit flight, which amounts to billions of dollars, was detailed in a regulatory filing that suggested new trouble at the Los Angeles-based lender. The bank’s stock fell 23 percent, a much steeper decline than other banks that have been the focus of investors’ worries after the recent collapses of Silicon Valley Bank, Signature Bank and First Republic Bank.
PacWest, with $44 billion in assets and branches primarily in California, grew fast as a lender in the technology world, a similarity to some of the fallen banks that has proved unfortunate of late. In its regulatory filing Thursday, PacWest said that the seizure and sale of First Republic at the beginning of May “heightened market and customer fears of additional bank failures, including…
This article was written by Rob Copeland and originally published on www.nytimes.com