NasdaqGS:PACW

Stock Analysis Report

Executive Summary

PacWest Bancorp operates as the holding company for Pacific Western Bank, a state chartered bank that provides commercial banking products and services.

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.


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


Market Performance


7 Day Return

6.4%

NasdaqGS:PACW

6.7%

US Banks

1.3%

US Market


1 Year Return

-22.7%

NasdaqGS:PACW

-3.7%

US Banks

2.0%

US Market

PACW underperformed the Banks industry which returned -3.7% over the past year.

PACW underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

PACWIndustryMarket
7 Day6.4%6.7%1.3%
30 Day13.7%9.9%3.9%
90 Day-0.9%7.1%3.4%
1 Year-17.6%-22.7%-1.0%-3.7%4.2%2.0%
3 Year4.5%-9.9%57.4%46.6%47.2%37.6%
5 Year13.3%-11.2%62.8%45.1%60.5%42.9%

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

Valuation

Is PacWest Bancorp undervalued based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

PacWest Bancorp's share price is below the future cash flow value, and at a moderate discount (> 20%).

PacWest Bancorp's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

PacWest Bancorp is good value based on earnings compared to the US Banks industry average.

PacWest Bancorp is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

PacWest Bancorp earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

PacWest Bancorp is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is PacWest Bancorp expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

-4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PacWest Bancorp's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).

PacWest Bancorp's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

PacWest Bancorp's revenue growth is positive but not above the United States of America market average.

PacWest Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

PacWest Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if PacWest Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has PacWest Bancorp performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PacWest Bancorp has delivered over 20% year on year earnings growth in the past 5 years.

PacWest Bancorp's 1-year earnings growth is less than its 5-year average (12.6% vs 20.6%)

PacWest Bancorp's earnings growth has not exceeded the US Banks industry average in the past year (12.6% vs 31.7%).


Return on Equity

PacWest Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PacWest Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if PacWest Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

PacWest Bancorp has an acceptable proportion of non-loan assets held.

PacWest Bancorp has a sufficient allowance for bad loans.

PacWest Bancorp's liabilities are made up of primarily low risk sources of funding.

PacWest Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at PacWest Bancorp are broadly funded by customer deposits.

PacWest Bancorp has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is PacWest Bancorp's current dividend yield, its reliability and sustainability?

6.35%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PacWest Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

PacWest Bancorp's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of PacWest Bancorp's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Matt Wagner (62yo)

19yrs

Tenure

US$6,238,560

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

Matt's remuneration is about average for companies of similar size in United States of America.

Matt's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.1yrs

Average Tenure

56.5yo

Average Age

The tenure for the PacWest Bancorp management team is about average.


Board Age and Tenure

12.8yrs

Average Tenure

62yo

Average Age

The average tenure for the PacWest Bancorp board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$397,18729 Nov 18
James Pieczynski
EntityIndividual
Role
Member of the Board of Directors
Executive VP & Vice Chairman
Shares10,000
Max PriceUS$39.72
BuyUS$412,30602 Nov 18
John Eggemeyer
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$41.23
BuyUS$816,20130 Oct 18
Matthew Wagner
EntityIndividual
Role
Chief Executive Officer
President
Shares20,925
Max PriceUS$39.01

Ownership Breakdown


Management Team

  • Mark Yung (45yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$142.99k
  • Pat Rusnak (55yo)

    Executive VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$2.43m
  • Bryan Corsini (57yo)

    Chief Credit Officer & Executive VP

    • Tenure: 5.7yrs
    • Compensation: US$1.73m
  • Christopher Blake (59yo)

    Executive VP

    • Tenure: 1.7yrs
    • Compensation: US$2.03m
  • Matt Wagner (62yo)

    President

    • Tenure: 19yrs
    • Compensation: US$6.24m
  • Jim Pieczynski (56yo)

    Executive VP & Vice Chairman

    • Tenure: 5.4yrs
    • Compensation: US$2.81m
  • Laird Boulden (61yo)

    Executive VP & President of National Lending Group

    • Tenure: 5.4yrs
    • Compensation: US$1.66m
  • Kori Ogrosky (49yo)

    Executive VP

    • Tenure: 0yrs
  • Rebecca Cordes (63yo)

    Executive Vice President of Human Resources

    • Tenure: 0.8yrs
  • Bart Olson (50yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 2.6yrs

Board Members

  • Mark Yung (45yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$142.99k
  • Bill Hosler (56yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$182.99k
  • Robert Stine (72yo)

    Director

    • Tenure: 19.7yrs
    • Compensation: US$182.99k
  • John Eggemeyer (73yo)

    Chairman of the Board

    • Tenure: 19.3yrs
    • Compensation: US$291.98k
  • Matt Wagner (62yo)

    President

    • Tenure: 19yrs
    • Compensation: US$6.24m
  • Jim Pieczynski (56yo)

    Executive VP & Vice Chairman

    • Tenure: 5.4yrs
    • Compensation: US$2.81m
  • Susan Lester (62yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$182.99k
  • Daniel Platt (72yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$142.99k
  • Paul Burke (56yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$182.99k
  • Craig Carlson (69yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$182.99k

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$4.455b
  • Shares outstanding: 116.59m
  • Website: https://www.pacwestbancorp.com

Number of Employees


Location

  • PacWest Bancorp
  • 9701 Wilshire Boulevard
  • Suite 700
  • Beverly Hills
  • California
  • 90212
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PACWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2000
F8BDB (Deutsche Boerse AG)YesCommon StockDEEURJun 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 d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:04
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.