PacWest Bancorp (PACW) shares are sliding more than 25 percent on Thursday morning trade after announcing a sharp loss for the first quarter and a 9.5 percent decline in deposits in a week, as an impact of the Republic Bank collapse.
The company reported a first-quarter loss attributable to stockholders of $1.205 billion or $10.22 per share compared to profit of $120.13 million or $1.01 per share.
In an SEC filing, the company noted that the closure of Republic Bank had an impact on its stock price and declined around 41 percent on April 28. During the week ended May 5 PacWest's deposits declined approximately 9.5 percent, with most of that decline on May 4th and May 5th. PacWest funded this decline in deposits with available on-balance sheet liquidity.
The bank revealed that as of May 10, immediately available liquidity was $15.0 billion, which exceeded uninsured deposits of $5.2 billion, representing a coverage ratio of 288 percent.
Currently, shares are at $4.93, down 18.90 percent from the previous close of $6.08 on a volume of 24,645,984.
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