2023-03-22 09:32:11 ET
Pacific Western Bancorp's ( NASDAQ: PACW ) stock dropped 9.8% in Wednesday premarket trading after the company said it explored a capital raise with potential investors but decided against moving forward with it due to current volatility and depressed prices for regional bank stocks.
Instead, it borrowed $3.7B from the Federal Home Loan Bank, $10.5B from the Federal Reserve's discount window, and $2.1B from the Fed's Bank Term Funding program. In addtion, it received $1.4B of fully funded cash proceeds from Apollo's ( NYSE: APO ) Atlas SP Partners through a new senior asset-backed financing facility, the company said.
"Consistent with its announcement on March 17, 2023, the bank continues to benefit from solid liquidity and stabilized deposit balances, with over $11.4B in available cash as of March 20, 2023, which exceeds total uninsured deposits of $9.5B as of March, 20, 2023," the company said in a business update on its liquidity.
As of March 20, FDIC-insured deposits exceeded 65% of total deposits, including accounts eligible for pass-through insurance, and FDIC-insured venture-specific deposits accounted for more than 82% of total venture-specific deposits, including accounts eligible for pass-through insurance.
It also has $600M of deposits that are backed by other tradeable securities. Its spot deposit rates increased to 2.04% at March 20 from 1.71% at Dec. 31, 2022.
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PacWest Bank gets $1.4B from Apollo's Atlas SP, borrows from FHLB, Fed