Pacific Western Bank recently received a capital infusion of 1.4B from Atlas Financial Holdings to maintain sufficient liquidity as they feel the effects of the coronavirus pandemic. Pacific Western Bank’s subsidiary, Pacific Western Bank, is a full-service commercial bank which provides lending programs and cash management services to businesses and organizations across the country.
Pacific Western Bank’s deposits decreased by 20% over the past few months due to the prolonged stay-at-home orders and the resulting economic instability. The new funding will help the bank maintain its liquidity and serve its clients during this time.
The investment by Atlas brings $600 million of capital, $165 million of subordinated debt, and $640 million in common stock subject to certain conditions. As part of this investment, Atlas will appoint three of Pacific Western Bank’s Board of Directors and will appoint three additional Board members at a later date. The Board and management are confident that this additional capital will provide long-term value and better serve its clientele’s needs.
Overall, the influx of capital invested by Atlas Financial Holdings has provided much needed liquidity to Pacific Western Bank in response to the economic downturn caused by the coronavirus pandemic. As a result, Pacific Western Bank will maintain sufficient capital which will allow the bank to continue providing services and lending to its clients despite difficult economic times. The Board and management of Pacific Western Bank remain confident in the long-term value of its operations and the success of its investments.
You can read this full article at: https://www.housingwire.com/articles/pacific-western-bank-gets-1-4b-from-atlas-after-20-decline-in-deposits/(subscription required)
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