"Given current economic uncertainty, recent volatility in the banking sector and potential changes in regulatory capital requirements, we view reducing the dividend as a prudent step to accelerate our plans to build capital," Taylor said in a release.last week, resulting in the third failure of an American bank since March. A rapid increase in interest rates has weighed on banks with long-term bond assets, causing a deposit flight.
confirming it was in talks with several possible partners and investors. The California-based bank said it had not experienced "out-of-the-ordinary deposit flows" after First Republic's collapse. Shares of PacWest are down more than 40% in May and 75% for the year through Friday. The SPDR Regional Banking ETF is off by 10% in May and 35% for the year through Friday.