Shares of PacWest Bancorp rose 39 percent in premarket trading on Monday after the bank slashed its dividend to 1 cent per share from 25 cents per share in the previous quarter. The company's CEO reassured investors that the bank's businesses remain "fundamentally sound." Other regional banks also rebounded for a second day. The SPDR S&P Regional Banking ETF rose by 2.3 percent in premarket trading, following a 6.3 percent rally on Friday. The recent increase in interest rates has weighed on banks with long-term bond assets, causing a deposit flight, and institutions with a high proportion of uninsured deposits found themselves particularly vulnerable.