Struggling PacWest Bank Faces Further Decline with 9.5% Drop in Deposits

Shares of PacWest were down 21 percent in premarket trading after the bank reported a 9.5 percent decline in deposits during the week of May 5th. Most of the outflows of the struggling regional bank came after media reports that said the it was exploring strategic options. The bank also said it was able to fund those withdrawals with available liquidity of $15 billion. The update marked a change from May 4, when PacWest said it was not experiencing "out-of-the-ordinary deposit flows" and that total deposits had increased since the end of March. The regional banking sector has been under pressure since early March due to concerns about higher interest rates leading to a run on deposits.