$PacWest Bancorp(PACW)$ Their 10K states: "For purposes of the consolidated statements of cash flows, cash and cash equivalents consist of: (1) cash and due from banks, (2) interest‑earning deposits in financial institutions, and (3) securities purchased under resale agreements. Interest‑earning deposits in financial institutions represent mostly cash held at the FRBSF, the majority of which is immediately available."
It would make sense to hold it in reserves get interest offset. Which is a on cash drag, but doesnt address NIM pressure from lost deposits.
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