Pacwest Bancorp (PACW)

PacWest Bancorp Stock (PACW) dropped by 5.21% from $7.30 to $6.92 in the trading on Tuesday October 24, 2023. The reason why PACW stock down today is due to its week Q3 2023 earnings. PacWest delivered results in Q3 2023, but the company missed the consensus for its revenue and earnings, seemed to weigh on the stock as did the broader market sell-off, causing PACW stock down today.

• Q3 Non-GAAP EPS of -$0.31, misses the consensus by $0.31. Revenue of $174.54M, misses the consensus by $32.67M, down 53.3% Y/Y.
• Adjusted EPS excludes the effect of $9.9 million of merger-related costs related to the pending merger with Banc of California, Inc. and a $14.5 million credit related to a legal settlement gain.

Being affected after the Sillicone Valley Bank fall out, Pacific Western Bank reported that customers had withdrawn 20% of their deposits. The bank experienced a decline in its stock price after announcing measures to raise cash in order to strengthen its balance sheet. The bank's shares closed down 17 percent on Wednesday, and the stock has lost more than 50 percent of its market value over the past month. Previously, the bank had been in discussions to raise funds by selling a portion of its ownership, but it has now decided that it would not be wise to move forward with this transaction due to market volatility and low valuations for regional bank stocks. This suggests that the bank is facing significant challenges and may be struggling to attract investor interest, potentially due to concerns about its financial stability or the broader economic environment.