Pacific Western Bank Provides Further Update and Details on Financial Strength - Seite 2

Adding to the stabilized deposit levels, the Bank has proactively taken a number of steps to bolster its liquidity. These steps include having drawn on available federal facilities, including $3.7 billion of borrowings from the FHLB, $10.5 billion of borrowings from the Federal Reserve Discount Window, and $2.1 billion in Bank Term Funding Program borrowings, in each case as of March 20, 2023. The Bank has seen validation from the private sector as well, having secured $1.4 billion in fully funded cash proceeds from ATLAS SP Partners through a new senior asset-backed financing facility, which unlocked liquidity from unencumbered, high-quality assets in an expeditious manner. The Bank has also experienced increased account opening in its Venture Banking business line with approximately 130 new accounts opened since March 9, 2023.

Market developments and strategic positioning also have affected the Bank favorably, with the Bank’s accumulated other comprehensive loss declining from $791 million at December 31, 2022 to $704 million at March 17, 2023. Through February 28, 2023, the Bank estimates net income of $48.9 million, which includes $8.2 million of pre-tax severance expense primarily related to the previously announced restructuring of Civic Financial Services, a lending subsidiary, and stockholders’ equity of $4.0 billion at February 28, 2023. As previously previewed, gross loans have intentionally decreased to $28.6 billion as of March 20, 2023, and asset quality remains excellent with no significant changes since year-end, including classified assets, non-performing assets, and charge-offs.

In addition to these liquidity-enhancing measures, and as part of its proactive approach to capital and liquidity management, the Company has explored a capital raise with potential investors. In light of the current volatility in the market and depressed market prices for regional bank stocks, as well as the availability of other options to enhance capital, the Company determined it would not be prudent to move forward with a transaction at this time. This decision reflects the Company’s confidence in its financial strength and commitment to ensuring the long-term stability and profitability of the institution.