PacWest Bancorp reported its earnings results for the fourth quarter of the year and it does not look promising for shareholders. Is the banking crisis over?
Following the failure of First Republic Bank, another bank raises concerns about a possible bankruptcy. This time it’s about PacWest Bancorp that they sank 28% this Tuesday on Wall Street after reporting its fourth-quarter 2022 earnings.
PacWest Bancorp reported its earnings results for the fourth quarter of the year and it does not look promising for shareholders.
The financial services provider revealed that produced earnings per share (EPS) of $0.86 during this period, below what analysts previously predicted by a staggering 15 cents. This poor performance has serious implications, especially given that the company’s revenue for the quarter came in much lower than financial experts had expected: just $353.29 million compared to consensus estimates of $378.60. millions.
In addition to this disappointing news, PacWest Bancorp posted a negative net margin of 48.43%, which will have far-reaching consequences going forward. Encouragingly, however, the company managed to generate a positive return on equity (ROE) of 13.91%.
Adding potential fuel to the fire is recent news that insiders within PacWest Bancorp have been buying shares in large numbers recently, specifically Director C William Hosler purchased 3,750 shares at an average cost per share of $26.48 in February and EVP William J Black bought 13,000 shares. in March for a total value close to $270,000.
Those internal acquisitions totaling more than 55,000 shares valued at around $1 million in the last three months alone They were interpreted as signs of concern.
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