PacWest reports steady deposit growth over last several weeks

PacWest
PacWest Bancorp had total deposits of $28.2 billion at the end of the first quarter, down from $33.9 billion three months earlier.

PacWest Bancorp, which suffered large deposit outflows after last month's bank failures, has grown its deposits by $1.8 billion over the last several weeks, the bank said Tuesday.

Total deposits stood at $28.2 billion at the end of the first quarter, up from $27.1 billion on March 20. And so far in the second quarter, the bank has added about $700 million in deposits, PacWest said.

It had about $33.9 billion in deposits at the end of 2022, before customers began to withdraw funds last month.

The bank reported a loss of $1.2 billion in the first quarter, thanks to a declining stock price and reorganization costs. Still, the loss was smaller than expected by some analysts. Revenue of $315.7 million also topped expectations.

The earnings report offers the first concrete glimpse into the $43 billion-asset bank's financials after a quarter that saw significant withdrawals and a plummeting stock price amid last month's banking crisis.

The March crisis was "one of the most challenging recent periods in the banking industry," PacWest CEO Paul Taylor said in a statement Tuesday.

PacWest, the parent company of Pacific Western Bank, expects its total assets to fall to approximately $35 billion within the next few months, once it sells certain assets and its liquidity returns to a normal level, Taylor said in a statement.

The Beverly Hills, California-based bank, like peers that experienced major deposit losses last month, has increased its rate of insured deposits in recent weeks. That percentage stood at 73% as of April 24, up from 48% at the end of 2022.

PacWest shares rose as much as 24% in after-market trading, reaching $12.87 before paring some of its gains.

The bank is set to hold its quarterly earnings call Wednesday at 11 a.m. Eastern.

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