Earnings of PacWest Bancorp (NASDAQ: PACW) will likely surge this year due to net reversals of provisions for loan losses. The considerable improvement in California's market, high allowance level, and an absence of loan modifications will likely
PacWest Bancorp: Net Reversals Of Provisions To Drive Earnings
Summary
- A high allowance level and an improvement in the Californian market will likely keep the provision expense for loan losses subdued in the year ahead.
- The vaccine-driven economic recovery will likely drive loan growth in the year ahead.
- The heightened liquidity will likely continue to pressurize the net interest margin in the remainder of the year.
- The year-end target price suggests a decent upside from the current market price. Further, PacWest is offering a modest dividend yield.
Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.
Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.