PacWest Bancorp (NASDAQ:PACW) Q1 2023 Earnings Conference Call April 26, 2023 11:00 AM ET

Company Participants

William Black - Executive Vice President, Strategy and Corporate Development

Paul Taylor - President and Chief Executive Officer

Kevin Thompson - Executive Vice President and Chief Financial Officer

Mark Yung - Executive Vice President and Chief Operating Officer

Conference Call Participants

Christopher McGratty - KBW

Matthew Clark - Piper Sandler

Jared Shaw - Wells Fargo Securities

Andrew Terrell - Stephens

Christopher Marinac - Janney Montgomery Scott

Brandon King - Truist Securities

Gary Tenner - D.A. Davidson

Jon Arfstrom - RBC Capital Markets

Operator

Good day and welcome to the PacWest Bancorp First Quarter 2023 Earnings Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Bill Black from PacWest Bancorp.

William Black

Thank you. Good morning and welcome to PacWest First Quarter 2023 Earnings Conference Call. With me today are Paul Taylor, President and CEO; and Kevin Thompson, our CFO.

Before I hand the call over to Paul, please note that we may make forward-looking statements during today's call that are subject to risks, uncertainties and assumptions. For a more complete discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements, see our company's SEC filings, including the 8-K filed yesterday afternoon, which is also available on the company's website.

I'd like to turn the call over to our CEO, Paul Taylor.

Paul Taylor

Thank you, Bill, and good morning, everyone. I'd like to start by thanking our clients and team for their dedication to PacWest especially over these last six weeks, which have been a very challenging period of time for the banking industry, including PacWest Bancorp.

Like many other banks, PacWest had an outflow of deposits immediately following the closure of the two large regional banks in early March. In response, we took swift action to enhance our liquidity and capital positions.

To withstand the deposit outflows we saw in March, we focused on maximizing our balance sheet liquidity by accessing various resources. Deposits stabilized in the latter part of March and have rebounded nicely in April, increasing approximately $600 million subsequent to quarter end with over 80% of that in our community bank.

Immediately available liquidity now exceeds our uninsured deposits with a coverage ratio of approximately 153%. Deposit growth has benefited from deposit campaigns in the community bank focused on savings accounts and CDs as well as over 140 new business accounts opened in the Venture Bank since March 9.