Beverly Hills-based PacWest Bancorp saw its shares drop dramatically following a Bloomberg report on Wednesday that the bank is contemplating strategic options.

At one point, shares were indicated down by over 60 percent.

According to the report, PacWest is in discussions with several potential investors and has also considered breaking up or raising capital.

However, Bloomberg’s unidentified sources stated that no formal auction process has been initiated.

They also noted that finding a buyer for the entire bank has been challenging, as the bank comprises Pacific Western Bank, a community lender, as well as various commercial and consumer lending businesses.

Any potential buyer may also need to book a significant loss marking down some loans.

In response to the report, PacWest sought to reassure the market, stating that its core deposits have grown since March and denying that it is facing a bank-run or liquidity shortage.

In a statement, PacWest said, “The bank has not experienced out-of-the-ordinary deposit flows following the sale of First Republic Bank and other news. Our cash and available liquidity remains solid and exceeded our uninsured deposits.”

In pre-market trading, the bank’s shares seemed to recover somewhat, with an indication of a 30 percent drop compared to the previous day’s close.

Shares of other U.S. regional banks, such as Western Alliance Bancorporation, also faced pressure on Thursday morning.

Western Alliance’s shares were indicated down by nearly 15 percent, but the company reiterated its guidance that it expects quarter-over-quarter deposit growth.

The regional bank sell-off resumed just hours after Federal Reserve Chairman Jerome Powell stated that the sale of First Republic to J.P. Morgan Chase represented “an important step toward drawing a line under that period of severe stress.”

Powell expressed his belief that the resolution of the three most troubled regional banks—Signature in New York, Silicon Valley in San Francisco, and First Republic—may have marked the end of the series of panics that hit regional banks since mid-March.

Powell said, “There were three large banks really from the very beginning that were at the heart of the stress we saw in early March.

Those have all now been resolved.” He added that depositors in each of those banks had been protected.

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