PacWest Bancorp is
considering selling itself
, reports Bloomberg, citing people familiar with the matter.
The regional lender is also exploring the option of breaking up its operations and raising capital following the failure of three rival lenders.
-
Few potential buyers would be willing to acquire all of PacWest in its current state, according to the sources cited by Bloomberg.
- PacWest comprises several commercial and consumer lending businesses in addition to its core community lender, Pacific Western Bank.
- PacWest is also considering selling off its lender finance business to shrink its balance sheet.
-
The bank said in April that its
deposits had stabilized
after it shored up liquidity in response to a spike in withdrawals.
- PacWest decided not to raise capital at the time, opting instead to secure a $1.4B financing facility from Atlas SP Partners that was supported by federal programs.
-
PacWest shares have fallen by about 85% since early March, following a
spike
in customer withdrawals.
-
The withdrawals came as confidence in the banking industry was shaken by the failures of
Silicon Valley Bank
and
Signature Bank
, in March.
-
Authorities
seized
First Republic Bank earlier this week after a
run on deposits
left many regional lenders teetering.
