The current banking crisis is based in California Pacific Western Banka community bank owned by Pakwest Bancorp Focuses on real estate and commercial loans.
following the collapse of silvergate bank, Silicon Valley Bank and signature bank Over the past few weeks, financial institution deposits fell to $27 billion as of March 20, down 20% from the end of December.
Pacific Western Bank said Wednesday that it has acted to ensure more liquidity through private and federal facilities but is ruling out the possibility of raising capital at this time.
The company secured $1.4 billion in fully-owned cash proceeds from a global investment firm. Atlas SP Partner Through the new Senior Asset-Backed Lending Facility.Additionally, it drew $3.7 billion from federal mortgage bank$10.5 billion borrowing from federal reserve Discount window and $2.1 billion Bank Term Funding Program borrowings.
Pacific Western Bank also considered raising capital with potential investors. However, amid market volatility and weak stock prices, “it would be unwise to proceed with trading at this time,” the bank said.
Pakwest Bancorp stock On Wednesday afternoon, it was trading at $10.94, down 10.4% from its previous close.
“We continue to be encouraged by clear messages from industry leaders, including government officials, regulators and secretaries. [Janet] President Yellen’s recent remarks on protecting small bank depositors,” said Paul Taylor, president and CEO of the bank, in a statement.
Pacific Western Bank reported $11.4 billion in available cash as of March 20, exceeding $9.5 billion in uninsured deposits.
The bank’s investment loans and leases increased $950 million to $28.6 billion in 2018. 4th quarter The increase was primarily driven by the residential and real estate mortgage and construction portfolio, which represented 70% of the total portfolio in Q4 2022.
In 2021, the bank acquired citizen financial servicesa private moneylender catering to real estate investors, is a strategic move into the non-QM market specialization. Wedgwoodwas a real estate investment firm and seller focused on distressed properties.
In February, PacWest Bancorp restructuring Civil Financial will cut 200 positions active in the second quarter of 2023. This saves the company $30 million to $40 million annually.
