PacWest Bancorp, which is currently exploring strategic options, climbed 7.2% and was set to build on a 22% gain recorded for the week till Wednesday.

Shares of Western Alliance climbed 7.2%, also poised to extend their near 27% surge this week after the Phoenix-based lender reported strong deposit growth in an attempt to reassure investors of its financial health after three regional lenders failed in recent months.

U.S. regional banks have found some reprieve this week thanks to bullish brokerage actions, Western Alliance's disclosure on deposit growth as well as hopes that Washington will reach a deal to raise the U.S. debt ceiling.

The KBW Regional Banking Index jumped 7.2% on Wednesday, recording its biggest percentage gain in nearly two years. The index has risen nearly 11% from a 2-1/2-year low hit earlier this month.

Among other movers on Thursday, Zion Bancorp climbed 2.6% and First Horizon added 2.4%.

Meanwhile, Charles Schwab Corp edged 1.1% lower after the financial services firm said it is looking to raise $2.5 billion in debt.

(Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath)