Shares of East West Bancorp Inc. EWBC plummeted 23.2% in morning trading Monday, toward their second-biggest one-day selloff, in the wake of recent bank failures, prompting the Pasadena, Calif.-based bank to reiterate its “capital and balance sheet strength.” The stock, which has now sunk 33.9% in three days, since SVB Financial Group’s SIVB troubles became public, was headed for the lowest close since December 2020. The stock’s biggest one-day selloff was 26.2% on March 5, 2009, in the midst of the financial crisis. “In light of recent industry events and market volatility, we reiterate that East West Bank’s business model is diversified, our balance sheet is managed conservatively, and our liquidity is strong,” said Chief Executive Dominic Ng. The company said the $55.3 billion in deposits held as of March 10, down from $56.0 billion as of Dec. 31, were “well diversified” by industry and depositor type with “no significant customer” or sector concentrations. The company said deposits from venture capital customers were about $1 billion, or 1.8% of total deposits. The stock has dropped 26.9% year to date, while the SPDR S&P Regional Banking exchange-traded fund KRE has slid 22.1% and the S&P 500 SPX has tacked on 1.1%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.