2023-03-20 10:48:29 ET
- Following the swamp of ratings received by New York Community Bancorp, PacWest Bancorp ( NASDAQ: PACW ) led the regional banks gains amid a flurry of analyst ratings.
- Analysts note that deposit outflows have stabilized after the bank issued an intra-quarter update on Friday.
- SPDR S&P Regional Banking ETF
- With an Overweight rating, Piper Sandler analyst Matthew Clark said that, "We have increased confidence that PACW can make it through this liquidity crunch now that it has enough cash to cover any additional run-off in uninsured deposits and expect the shares to regain some ground on Monday."
- He also believes that PACW may have taken advantage of the new Bank Term Funding Program to help shore up $10.8B of cash, avoiding the need to sell securities at a loss.
- D.A. Davidson assigned a Buy rating and added, "While PACW funding has been under pressure, the update indicates stabilization since Mar.13, 2023, which we think in turn should help stabilize/support the stock." Analyst Gary Tenner says the bank has weathered the liquidity storm, and notes most outflows were from VC deposits, 77% of which were insured as of last week.
- RBC Capital Markets with a Neutral rating by analyst Jon Arfstrom, "We continue to believe the messages of stability in recent days are an encouraging sign. Additionally, the company provided an update on insured deposit levels, which now comprise 62% of total deposits, compared to ~52% at year-end 2022. Unclear whether the higher insured deposit concentration is due mainly to increased insured deposits or a decline in uninsured balances or a combination of both."
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PacWest Bancorp leads the regional banks gainers' pack amid positive analysts comments