- 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.
For further details see:
PacWest Bancorp - Solid Outlook In Loan Growth Boosts Strong Profitability Story