"Taking a 5% to 10% haircut on its insured deposit base of $16.13B as of 31 December 2022, we assumed that $PacWest Bancorp(PACWP)$ PACW posted an insured deposit base of about $14.92B at the midpoint of the haircut range. Since $PacWest Bancorp(PACWP)$ PACW highlighted that insured deposits accounted for more than 62% of its total base, uninsured deposits have likely dropped to less than $9.14B, for a total deposit base of about $24.06B."
I am using below two method based on the company recently published numbers with as little assumption as possible.
Method 1) In PACW's two recent updates (March 10 and March 17), the company states in March 10 update: '..As of 3/9/23, total deposits were $33.2 billion and the company had 14.1 Billion available liquidity, as of March 17 $PacWest Bancorp(PACWP)$ PACW has 10.1 available cash. So availability of cash only reduced 4 billion, I assumed it used to pay withdrawal from deposit outflow. So its deposit base is around 29 billion or little below as of 3/17/2023.
Method 2) In the company's March 17's update -
'With over $10.8 billion in available cash as of March 17, 2023...
Available cash exceeds total uninsured deposits' and 'As of March 16, 2023, insured deposits exceed 62% of total deposits'. So it is safe to assume as of March 17, 2023, insured deposits would be more than 62%. As we know March 17, Friday was a very bad day for the company in stock price movement.
If we take uninsued deposits is 38% of the total, it is a simple math to calculate
the total deposits as of March 17: 10.8 billion divided by 38% = 28.42 billion.
So the above two methods get almost the same total deposites as of March 17 (Last Friday).
Please note the above two methods used the different data published by the company.
I know I could be wrong. Any comments welcomed in advance.
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