PacWest Bancorp (PACW.US), US mid-size bank, is one of the best performing US stocks today, trading around 15% higher on the day. This comes after the company released Q1 2023 earnings yesterday and assured investors' that deposit flows have stabilized after the bank was hit by deposit flight amid recent US banking turmoil.
PacWest reported Q1 loss per share at $10.22. However, such a deep loss was due to a large goodwill impairment charge of $1.38 billion recorded during the quarter. Adjusted for this one-off event, EPS was positive and reached $0.66 (exp. $0.51). While the company recorded a 17% QoQ decline in deposits, to $28.19 billion (exp. $28.53), it also said that the situation stabilized towards the end of March and began to increase in April. Loans and leases at the end of March stood at $25.67 billion, down 10% QoQ and below $28.46 billion expected by the market. Common equity Tier1 ratio came in at 9.22% in Q1 2023, beating analysts' estimate of 8.57%. PacWest said that it has reclassified part of its loan portfolio as held-for-sale in order to boost liquidity position. Unrealized losses on company's investment portfolio dropped from $791 million at the end of Q4 2022 to $736 million at the end of Q1 2023.
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Open account Try demo Download mobile app Download mobile appTaking a look at PacWest chart at D1 interval, we can see that shares of the bank traded sideways in the $9.00-12.00 range following recent banking turmoil. Stock is trading around 15% higher today and testing the upper limit of the range after company assured that deposits stabilized by the end of March and began to rise in April.
Source: xStation5
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