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

2.0%

PACW

1.4%

US Banks

1.0%

US Market


1 Year Return

-19.5%

PACW

0.2%

US Banks

6.7%

US Market

Return vs Industry: PACW underperformed the US Banks industry which returned 0.2% over the past year.

Return vs Market: PACW underperformed the US Market which returned 6.7% over the past year.


Share holder returns

PACWIndustryMarket
7 Day2.0%1.4%1.0%
30 Day-5.2%-2.6%-1.8%
90 Day-2.9%0.8%-1.8%
1 Year-14.2%-19.5%3.1%0.2%9.1%6.7%
3 Year1.3%-12.6%52.0%41.5%46.1%36.6%
5 Year16.2%-8.9%69.7%51.2%66.9%48.6%

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?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: PACW ($36.23) is trading below our estimate of fair value ($48.74)

Significantly Undervalued: PACW is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: PACW is good value based on its PE Ratio (9.4x) compared to the Banks industry average (12.5x).

PE vs Market: PACW is good value based on its PE Ratio (9.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: PACW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: PACW is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is PacWest Bancorp expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

-5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PACW's earnings are forecast to decline over the next 3 years (-5.9% per year).

Earnings vs Market: PACW's earnings are forecast to decline over the next 3 years (-5.9% per year).

High Growth Earnings: PACW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PACW's revenue (0.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PACW's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if PACW's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: PACW's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: PACW's earnings growth over the past year (12.6%) is below its 5-year average (20.6% per year).

Earnings vs Industry: PACW earnings growth over the past year (12.6%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: PACW's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: PACW has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PACW's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: PACW has a low level of unsold assets or inventory.

Debt Coverage by Assets: PACW's debt is not covered by short term assets (assets are 0.3x debt).


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 (0.44%)


Next Steps

Dividend

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

6.67%

Expected Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years6.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PACW's dividend (6.62%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: PACW's dividend (6.62%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: PACW's dividend payments have been volatile 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 (62.1%), PACW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Matt Wagner (62yo)

19.1yrs

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

Compensation vs. Market: Matt's total compensation ($USD6.24M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

56.5yo

Average Age

Experienced Management: PACW's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

12.8yrs

Average Tenure

62yo

Average Age

Experienced Board: PACW's board of directors are seasoned and experienced ( 12.8 years average tenure).


Insider Trading

Insider Buying: PACW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$359,95217 Sep 19
Mark Christian
EntityIndividual
Shares9,500
Max PriceUS$37.89
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: 2.4yrs
    • Compensation: US$142.99k
  • Pat Rusnak (55yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$2.43m
  • Bryan Corsini (57yo)

    Chief Credit Officer & Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$1.73m
  • Christopher Blake (59yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$2.03m
  • Matt Wagner (62yo)

    President

    • Tenure: 19.1yrs
    • Compensation: US$6.24m
  • Jim Pieczynski (56yo)

    Executive VP & Vice Chairman

    • Tenure: 5.5yrs
    • Compensation: US$2.81m
  • Laird Boulden (61yo)

    Executive VP & President of National Lending Group

    • Tenure: 5.5yrs
    • 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: 2.7yrs

Board Members

  • Mark Yung (45yo)

    Executive VP

    • Tenure: 2.4yrs
    • Compensation: US$142.99k
  • Bill Hosler (56yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$182.99k
  • Robert Stine (72yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$182.99k
  • John Eggemeyer (73yo)

    Chairman of the Board

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

    President

    • Tenure: 19.1yrs
    • Compensation: US$6.24m
  • Jim Pieczynski (56yo)

    Executive VP & Vice Chairman

    • Tenure: 5.5yrs
    • Compensation: US$2.81m
  • Susan Lester (62yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$182.99k
  • Daniel Platt (72yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$142.99k
  • Paul Burke (56yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$182.99k
  • Craig Carlson (69yo)

    Independent Director

    • Tenure: 8.9yrs
    • 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$4.224b
  • 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 Analysis2019/10/14 02:11
End of Day Share Price2019/10/11 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.

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