PacWest Bancorp (NASDAQ:PACW) jumped Wednesday after PacWest said it has seen deposit inflows over the past month. The regional bank said deposits fell more than 16% during the first quarter to roughly $28.2 billion, but that it has added about $1.8 billion in deposits since March 20, when it last updated investors. It saw $700 million in deposits in April. On Tuesday, PacWest also reported a net loss of $1.21 billion for the quarter, due largely to a goodwill impairment charge.
Q1 adj. EPS was $0.66 vs. $0.54 in Q1 2022, and revenue increased 94.7% Y/Y to $315.69M. Net interest income declined 13.5% sequentially to $279.3M due to higher interest expense on deposits and borrowings.
Total deposits increased $1.1B to $28.2B at March 31, from the lender's recent update of $27.1B as of March 20. Deposit balances further grew ~$700M as of April 24.
Total insured deposits, including accounts eligible for pass-through insurance, represented ~73% of total deposits as of April 24, up from 48% at December 31, 2022.
Immediately available liquidity stood at $12.4B, which exceeded uninsured deposits of $8.1B, with a coverage ratio of 153% at March 31.
PacWest recorded a goodwill impairment of $1.38B due to the recent stock selloff. This is a non-cash charge and has no impact on regulatory capital ratios or liquidity position.
PACW shares rumbled higher $1.20, or 11.6%, to $11.51.
