As shares of a Los Angeles-based bank with a location in Fresno have plummeted, its leaders are considering putting Pacific Western Bank up for sale.
Similar to the situations at Silicon Valley Bank and First Republic Bank, the high concentration of large, uninsured deposits at Pacific Western Bank prompted a sell-off of the bank’s stock, the Associated Press reported.
Analysts with UBS estimate that 23% of PacWest’s deposits come from venture capital and tech companies.
The bank has a branch in Fresno at 776 E. Shaw Ave., near Fashion Fair Mall. The bank’s $140 million in local deposits make up .66% of the market share in the Fresno metro, according to the Federal Deposit Insurance Corp.
Bank Shares Fall 51% After Announcement
Shares for the bank fell 51% after a statement Wednesday saying it was considering putting itself up for sale.
A press release from the bank Thursday said it “has not experienced out-of-the-ordinary deposit flows following the sale of First Republic Bank and other news.”
Assets at the bank have increased $3.1 billion since December 2022 to a total of $44.3 billion in March. At the same time, shareholders have lost $1.2 billion.
Investors have also been watching Western Alliance Bancorp, based in Phoenix, Arizona. Shares fell 36% Thursday, but the bank denied rumors it was trying to put itself up for sale.