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Here's What Key Metrics Tell Us About PacWest (PACW) Q2 Earnings

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For the quarter ended June 2023, PacWest Bancorp reported revenue of $228.82 million, down 36.1% over the same period last year. EPS came in at $0.22, compared to $1.02 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $188.3 million, representing a surprise of +21.52%. The company delivered an EPS surprise of +22.22%, with the consensus EPS estimate being $0.18.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how PacWest performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Interest Margin: 1.82% versus the five-analyst average estimate of 1.92%.
  • Average balance - Total interest-earning assets: $41.01 billion versus the four-analyst average estimate of $39.05 billion.
  • Net charge-offs to average loans and leases: 0.46% compared to the 0.13% average estimate based on four analysts.
  • Efficiency Ratio: 527% versus the three-analyst average estimate of 78.87%.
  • Tier 1 Leverage Capital Ratio: 7.76% versus 9.07% estimated by two analysts on average.
  • Net Interest Income (FTE): $186.08 million versus the four-analyst average estimate of $187.62 million.
  • Net Interest Income: $186.08 million versus the four-analyst average estimate of $180.12 million.
  • Service charges and fees on deposit accounts: $4.32 million versus $3.54 million estimated by three analysts on average.
  • Leased equipment income: $22.39 million versus the three-analyst average estimate of $14 million.
  • Total Non-Interest Income: -$128.08 million compared to the $31.99 million average estimate based on three analysts.
  • Other commissions and fees: $11.24 million versus $10.82 million estimated by three analysts on average.
  • Other income: $2.27 million versus $3.50 million estimated by two analysts on average.
View all Key Company Metrics for PacWest here>>>

Shares of PacWest have returned +40.2% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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