PacWest Bancorp - Solid Outlook In Loan Growth Boosts Strong Profitability Story

Aug. 02, 2021 1:07 PM ETPacWest Bancorp (PACW)8 Comments
Stephen Simpson profile picture
Stephen Simpson


  • PacWest's second quarter was only in line for pre-provision profits, but loan growth is improving at an improving rate and management has been developing more opportunities to deploy its excess liquidity.
  • Excess liquidity hurt spreads by 73bp in the quarter, but the acquisition of Civic gives the bank an attractive long-term loan growth opportunity above and beyond asset-backed and fund lending.
  • Adding better credit and loan growth to an already very profitable bank significantly expands the long-term growth outlook, and high single-digit long-term core growth can support double-digit returns from here.

The Pacwest center offices in Portland, Oregon
csfotoimages/iStock Editorial via Getty Images

Excess liquidity continues to weigh on PacWest Bancorp’s (NASDAQ:PACW) profitability, but management has made some strong moves to build the business toward even more long-term loan growth. Add more loan growth to an already-strong

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

Recommended For You

Comments (8)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.