2023-07-25 17:08:22 ET
PacWest Bancorp ( NASDAQ: PACW ), which has been at the center of recent fears about the regional banking sector, delivered Q2 earnings on Tuesday that slightly surpassed Wall Street expectations and fell sequentially and from a year ago.
Moments before publishing its quarterly financials, PacWest agreed to merge with Banc of California ( BANC ) in an all-stock deal.
Q2 adjusted EPS of $0.22 (excluding the effect of loan sales), vs. $0.19 average analyst estimate, fell from $0.66 in Q1 and from $1.02 in the year-earlier quarter.
The bank suffered $277.7M of losses on the sale of loans and unfunded commitments, Civic loan sale charge-offs of $22.4M, and $12.4M of reorganization costs. Since the start of 2023, PACW has reduced its headcount by 560 staffers., primarily at its Civic unit, said President and CEO Paul Taylor.
Total deposits stood at $27.9B for the three months ended June 30 compared with $28.2B for the three months ended March 31. Total insured deposits represented some 81% of total deposits as of June 30, up from 48% at Dec. 31, 2022.
Provision for credit losses slipped to $2M from $3M in Q1 and from $11.5M in Q2 of last year.
PACW jumped roughly 20% in after-hours trading.
More on PacWest Bancorp:
- SA's Quant system rates PACW a Sell
- Archives of PacWest's financial statements
- PacWest: Speculative Buy Heading Into Q2 (Rating Upgrade)
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PacWest Bancorp Q2 results hurt by losses on loan sales