PacWest Bancorp ( PACW ) declined by ~8% after the holding company for Pacific Western Bank reported a miss on its Q2 consensus EPS and showed no optimism on the H2 results.
PACW reported a Q2 GAAP EPS of $1.02, misses by $0.04; revenue of $358.27M (+16.8% Y/Y), beats by $4.13M; and loan growth of $2.1B or 8.8% from Q1.
Higher rates, slower economic growth and greater uncertainty are expected to slow loan growth in H2, according to the company's Q2 earnings presentation.
On deposits, CEO Matt Wagner said, "We continued to see net outflows in the venture banking business as private fundraising and capital market activities for late stage companies continues to be muted. With venture banking deposits down $1.9B during the quarter, we used wholesale deposits to fund the loan growth, which increased deposit costs."
The company said it expects flat to down core deposit activity in H2, depending on the venture banking activity.
For Q3, consensus EPS estimate stands at $1.07 (-8.93% Y/Y), while revenue estimate is $368.20M (+11.20% Y/Y).
PACW has declining growth and decelerating momentum when compared to other financials stocks, according to a report by Seeking Alpha, with the Quant Rating system giving the stocks a Sell rating.
The stocks have lost ~44% of value in the last six months.
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PacWest Bancorp falls after Q2 consensus EPS miss, not-so-optimistic H2 guidance