Shares of PacWest Bancorp. (PACW) and many other regional banks slid double-digits in intra-day trading over concerns that the turmoil in regional banking is far from over.
PacWest shares sank to an intra-day low of $5.26, down more than 40% from the prior day's close. Trading was halted multiple times in the day. At about 1:30 p.m. Eastern Standard Time, shares were down 24%.
Shares of Western Alliance Bancorp. (WAL) were trading down about 20%, while Comerica (CMA), Zions Bancorp. (ZION), and KeyCorp (KEY) shares dropped about 12% each. The SPDR S&P Regional Banking ETF (KRE), was down about 7%.
Regional bank stocks are plummeting after First Republic Bank was seized by regulators and sold to JPMorgan Monday. The bank had lost almost $100 billion in deposits despite receiving an infusion of $30 billion from other banks. Its stock went from trading at about $120 per share in January to $3.50 per share in recent days.
Fears of contagion or similarly shaky financials are impacting other regional banks, as some analysts, investors, and depositors are worried this banking crisis is still unfolding in slow motion.
The collapse of Silicon Valley Bank and Signature Bank initially triggered the upheaval in the regional banking sector as concerns over liquidity saw depositors pull out money and investors dump stocks.