PacWest is down 40%, hours after reports of the bank weighing the sale

Pacific Western Bank branch in Los Angeles, California, United States, on Friday, March 10, 2023.

Eric Thayer | bloomberg | Getty Images

Backwest Bancorp shares fell 56% in extended trade on Wednesday after a report that the bank is considering a sale.

The regional bank was weighing options, including a break-up or a capital increase, according to a Bloomberg report, citing familiar sources.

Shares of several West Coast regional banks have been hit particularly hard since the Silicon Valley bank collapse in March, in part because of concerns that their customer bases are similar. PacWest is headquartered in Los Angeles. The stock is down 72% this year.

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PacWest stock for a day

PacWest reported that total deposits fell by more than $5 billion in the first quarter to $28.2 billion as of March 31. However, the company said it saw a net gain of $1.1 billion in deposits from March 20 through the end of the quarter.

PacWest also said that deposits grew by another $700 million from March 31 through April 24.

Other regional banks fell in extended trade after the report. The SBDR S&P Regional Banking Index fell 4.4%, while Western Alliance Bancorp shares fell 24%.

A PacWest spokesperson did not immediately respond to a request for comment.

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