PacWest Bancorp (NYSE: PACW) reported earnings after the close and beat EPS estimates, sending the stock higher. The move comes after the stock traded down more than 8% in Tuesday’s regular session as banking crisis fears crept back into the market following First Republic Bank’s (NYSE: FRC) worrisome earnings call.
PACW EPS came in at $0.66 a share, higher than the estimates of $0.61 a share, according to Benzinga Pro. PacWest says total deposits increased $1.1 billion to $28.2 billion on March 31, vs. the most recent update of $27.1 billion as of March 20, 2023.
PacWest’s stock traded up more than 20% at one point in the after-hours session Tuesday following its earnings report.
First Republic’s stock dropped nearly 50% after the company announced a big drop in deposits following Silicon Valley Bank’s collapse, and fears regarding regional banks swept through the market. But PacWest seemed less impacted and added subsequent deposits last quarter.
View more earnings on PACW
First Republic’s drastic move to the downside on Tuesday dragged down a handful of regional banking names, including PacWest Bancorp and Western Alliance Bank (NYSE: WAL). The SPDR S&P Regional Banking Fund (NYSEARCA: KRE) traded down more than 4% in Tuesday’s regular session but moved higher by more than 1% after hours on PacWest’s earnings call.
Read Also: Why First Republic Bank Stock Is Falling After Hours
For many investors, First Republic’s earnings call put a renewed focus on the financial condition of regional banks. Silicon Valley Bank purchased bonds and treasuries that have depreciated in value as interest rates have risen, and failed to hedge properly. But, because Silicon Valley Bank dealt primarily with high-growth, pre-revenue tech companies, it likely faced a much higher withdrawal rate than other banks such as PacWest or Western Alliance.
Price Action: PACW shares are up 13.3% at $11.68 in the after-hours session on the last check Tuesday
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This article Why PacWest Bancorp Shares Are Jumping Tuesday Evening originally appeared on Benzinga.com
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