Pacific Western Bank, the primary subsidiary of PacWest Bancorp, issued the following statement reaffirming its financial strength.

Pacific Western Bank continues to have solid liquidity, with over $10.8 billion in available cash as of March 17. Available cash exceeds total uninsured deposits. Following the announcement of the Silicon Valley Bank and Signature Bank closures, the bank experienced elevated net deposit outflows, concentrated primarily in our Venture Banking business line. Since March 13, net outflows have fallen sharply, with deposit balance fluctuations substantially stabilizing.

As of March 16, insured deposits exceed 62 percent of total deposits, including accounts eligible for pass-through insurance. Additionally, as of March 16, insured venture-specific deposits account for more than 77 percent of total venture deposits, including accounts eligible for pass-through insurance. The bank continues to have a diversified deposit base that includes commercial, community banking, homeowners associations, retail, and venture deposits, with venture deposits representing approximately 25 percent of total deposits as of March 16.

As previously disclosed, our risk-based capital ratios, including CET1, have been increasing for the past three quarters, including a tier 1 risk-based capital ratio of 10.61 percent, which is well in excess of regulatory requirements, as of December 31, 2022. Additionally, asset quality remains excellent, and the bank has experienced no significant asset quality changes since year-end, including classified assets, non-performing assets, and charge-offs.

“After a challenging week, we are encouraged that much of the volatility seems to have calmed over the past several days. We have taken numerous steps, including leveraging available collateral, over the past week to enhance and fortify our liquidity during this time. Pacific Western Bank remains a diversified bank prepared to continue delivering for our customers,” said Paul W. Taylor, Pacific Western Bank President and CEO.

He continued, “We are also encouraged by the distinct message that government officials, regulatory agencies, and industry leaders have been communicating, expressing a clear commitment to the banking system and its depositors. We deeply appreciate our strong relationships with our customers and are well-positioned to continue meeting their needs.”