PacWest Bancorp
Market Cap
US$2.2b
Last Updated
2020/04/09 00:15 UTC
Data Sources
Company Financials +
Executive Summary
PacWest Bancorp operates as the holding company for Pacific Western Bank, a state chartered bank that provides commercial banking products and services.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -15% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet 6 star dividend payer.
Similar Companies
Share Price & News
How has PacWest Bancorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PACW's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.5%
PACW
14.6%
US Banks
9.4%
US Market
1 Year Return
-51.2%
PACW
-24.3%
US Banks
-6.8%
US Market
Return vs Industry: PACW underperformed the US Banks industry which returned -26% over the past year.
Return vs Market: PACW underperformed the US Market which returned -8.1% over the past year.
Shareholder returns
| PACW | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.5% | 14.6% | 9.4% |
| 30 Day | -32.5% | -4.4% | -3.9% |
| 90 Day | -47.4% | -33.9% | -16.5% |
| 1 Year | -47.9%-51.2% | -22.0%-24.3% | -4.8%-6.8% |
| 3 Year | -54.8%-61.5% | -8.3%-15.1% | 23.4%15.2% |
| 5 Year | -46.1%-58.2% | 16.7%3.3% | 41.3%25.7% |
Price Volatility Vs. Market
How volatile is PacWest Bancorp's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Sliding Share Price Has Us Looking At PacWest Bancorp's (NASDAQ:PACW) P/E Ratio3 weeks ago | Simply Wall St
How Does PacWest Bancorp's (NASDAQ:PACW) P/E Compare To Its Industry, After The Share Price Drop?Valuation
Is PacWest Bancorp undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PACW ($19.27) is trading below our estimate of fair value ($39.25)
Significantly Below Fair Value: PACW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PACW is good value based on its PE Ratio (4.9x) compared to the Banks industry average (8.8x).
PE vs Market: PACW is good value based on its PE Ratio (4.9x) compared to the US market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: PACW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PACW is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is PacWest Bancorp forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
-15.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PACW's earnings are forecast to decline over the next 3 years (-15% per year).
Earnings vs Market: PACW's earnings are forecast to decline over the next 3 years (-15% per year).
High Growth Earnings: PACW's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PACW's revenue is expected to decline over the next 3 years (-3.1% per year).
High Growth Revenue: PACW's revenue is forecast to decline over the next 3 years (-3.1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PACW's Return on Equity is forecast to be low in 3 years time (6.9%).
Next Steps
Past Performance
How has PacWest Bancorp performed over the past 5 years?
14.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PACW has high quality earnings.
Growing Profit Margin: PACW's current net profit margins (40.8%) are higher than last year (40.2%).
Past Earnings Growth Analysis
Earnings Trend: PACW's earnings have grown by 14.4% per year over the past 5 years.
Accelerating Growth: PACW's earnings growth over the past year (0.7%) is below its 5-year average (14.4% per year).
Earnings vs Industry: PACW earnings growth over the past year (0.7%) underperformed the Banks industry 10.8%.
Return on Equity
High ROE: PACW's Return on Equity (9.5%) is considered low.
Next Steps
Financial Health
How is PacWest Bancorp's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: PACW's level of assets compared to its equity is low.
Allowance for Bad Loans: PACW has a sufficient allowance for bad loans.
Low Risk Liabilities: PACW's liabilities are made up of primarily low risk sources of funding.
Loan Level: PACW has an acceptable proportion of non-loan assets held.
Low Risk Deposits: PACW's loans are broadly funded by customer deposits.
Level of Bad Loans: PACW has an appropriate level of bad loans (0.49%)
Next Steps
Dividend
What is PacWest Bancorp's current dividend yield, its reliability and sustainability?
12.45%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PACW's dividend (12.45%) is higher than the bottom 25% of dividend payers in the US market (1.89%).
High Dividend: PACW's dividend (12.45%) is in the top 25% of dividend payers in the US market (5.26%)
Stability and Growth of Payments
Stable Dividend: PACW's dividends per share have been stable in the past 10 years.
Growing Dividend: PACW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61.6%), PACW's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PACW's dividends in 3 years are forecast to be covered by earnings (86% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Matt Wagner (62yo)
19.58s
Tenure
US$7,061,107
Compensation
Mr. Matthew P. Wagner, also known as Matt, has been President and Chief Executive Officer of PacWest Bancorp and Pacific Western Bank. Mr. Wagner is a Director of PacWest Bancorp since 2000. Mr. Wagner als ...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD7.06M) is above average for companies of similar size in the US market ($USD4.69M).
Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 19.58yrs | US$7.06m | 0.61% $13.7m | |
| Executive VP & CFO | 4.67yrs | US$3.03m | 0.10% $2.3m | |
| Executive VP | 2.92yrs | US$3.66m | 0.074% $1.7m | |
| Executive VP | 2.25yrs | US$2.34m | 0.066% $1.5m | |
| Executive VP & Vice Chairman - Pacific Western Bank | 6yrs | US$2.37m | 0.062% $1.4m | |
| Executive VP & Chief Accounting Officer | 3.17yrs | no data | 0.028% $620.2k | |
| Executive VP | no data | no data | 0.061% $1.4m | |
| Executive Vice President of Human Resources | 1.33yrs | no data | 0.022% $490.2k | |
| Executive VP | 6yrs | US$2.81m | 0.16% $3.6m | |
| Executive VP & President of the Venture Banking Group | 5.25yrs | US$1.64m | 0.049% $1.1m |
4.7yrs
Average Tenure
55.5yo
Average Age
Experienced Management: PACW's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 19.58yrs | US$7.06m | 0.61% $13.7m | |
| Executive VP | 2.92yrs | US$3.66m | 0.074% $1.7m | |
| Executive VP | 6yrs | US$2.81m | 0.16% $3.6m | |
| Lead Independent Director | 2.92yrs | US$182.97k | 0.040% $907.7k | |
| Independent Director | 20.25yrs | US$182.97k | 0.027% $609.6k | |
| Independent Chairman of the Board | 19.83yrs | US$291.98k | 0.19% $4.2m | |
| Independent Director | 17.25yrs | US$182.97k | 0.023% $521.4k | |
| Independent Director | 17.25yrs | US$142.97k | 0.024% $541.4k | |
| Independent Director | 4.5yrs | US$182.97k | 0.032% $719.6k | |
| Independent Director | 9.42yrs | US$182.97k | 0.011% $249.6k |
13.3yrs
Average Tenure
62yo
Average Age
Experienced Board: PACW's board of directors are seasoned and experienced ( 13.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PACW insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
PacWest Bancorp's company bio, employee growth, exchange listings and data sources
Key Information
- Name: PacWest Bancorp
- Ticker: PACW
- Exchange: NasdaqGS
- Founded: 1999
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$2.245b
- Shares outstanding: 116.48m
- Website: https://www.pacwestbancorp.com
Number of Employees
Location
- PacWest Bancorp
- 9701 Wilshire Boulevard
- Suite 700
- Beverly Hills
- California
- 90212
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PACW | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 2000 |
| F8B | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 2000 |
Biography
PacWest Bancorp operates as the holding company for Pacific Western Bank, a state chartered bank that provides commercial banking products and services. The company accepts demand, money market, and time deposits. It also provides real estate loans to professional developers and real estate investors for the acquisition, refinancing, and construction of commercial real estate properties; small business administration loans; asset-based loans for working capital needs; venture capital loans to support the start-up operations of entrepreneurial companies; and equipment-secured loans and leases. In addition, the company offers consumer loans comprising personal loans, auto loans, home equity lines of credit, revolving lines of credit, and other loans. Further, it provides international banking and multi-state deposit services; money market sweep products; investment advisory and asset management services; treasury and cash management services; telephone banking, and online and mobile banking services; and foreign exchange and ATM services. The company offers its products and services to small and mid-sized companies, entrepreneurial businesses and their venture capital, private equity investors, professionals, and other individuals. As of January 31, 2019, it had 74 full-service branches located throughout the state of California; and 1 branch in Durham, North Carolina. The company was formerly known as First Community Bancorp and changed its name to PacWest Bancorp in April 2008. PacWest Bancorp was founded in 1999 and is headquartered in Beverly Hills, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 00:15 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.