PacWest Bancorp, a key player in the US regional banking landscape, is reportedly examining various strategic options, including selling its business. This news led to a 52.5% drop in the bank's share price to $3.05 per share during after-hours trading on Wednesday. The US banking sector has been shaken by three major bank collapses over recent months.
Not many buyers are interested in purchasing the entire enterprise of PacWest due to potential issues with such an acquisition. However, CEO John Smith attempted to calm customer anxieties during the company's first-quarter earnings call on April 26th before stabilizing later that month.
PacWest did not respond immediately when reached for comment outside regular business hours.
In addition to considering selling its business outright, PacWest Bancorp is exploring asset sales strategies such as transferring their $2.7 billion lender finance loan portfolio into held-for-sale status within Q1 of this year.
The bank has experienced no unusual deposit flows following JPMorgan Chase & Co.'s acquisition of First Republic Bank or other recent events affecting the industry at large.
As part of their efforts to find suitable partners and investors amid this tumultuous time, PacWest representatives confirmed they are engaged in ongoing discussions with several potential collaborators who share similar interests and visions for growth and innovation within their field.
Despite facing significant headwinds from both internal struggles and broader market turmoil within the financial sector, it appears that PacWest Bancorp remains focused on finding the best path forward for their business and customers alike.