PacWest Bancorp (PACWP) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
PacWest Bancorp (PACWP) trades at $20.94. PacWest Bancorp, operating as Pacific Western Bank's holding company, provides diverse banking products and services. Market cap: $905M, Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 16, 2026Analyst Coverage for PACWP: PACWP does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PACWP against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
Not enough scored data yet to form a council read on PACWP.
How is this calculated? →PacWest Bancorp (PACWP) Financial Services Profile
PacWest Bancorp (PACWP) is a regional bank holding company providing diverse financial services, including real estate, SBA, and venture capital lending. With a focus on small and mid-sized businesses and a branch network concentrated in California, PacWest operates in a competitive banking landscape, marked by evolving fintech solutions.
What Is the Investment Thesis for PACWP?
PacWest Bancorp presents a mixed investment case. The company's P/E ratio of 2.09 and a dividend yield of 3.71% may attract value investors. A profit margin of 32.9% indicates operational efficiency. Growth catalysts include expansion of its venture capital lending and strategic partnerships with fintech companies. However, a beta of 1.43 suggests higher volatility compared to the market. Potential risks include interest rate sensitivity and competition from larger banks and fintech firms. Investors should closely monitor loan portfolio performance and regulatory changes impacting regional banks.
Based on FMP financials and quantitative analysis
PACWP Key Highlights
Market capitalization of $905M indicates its position as a mid-sized regional bank.
- P/E ratio of 2.09 suggests the company may be undervalued compared to its earnings.
- Profit Margin of 32.9% reflects efficient operations and profitability.
- Dividend Yield of 3.71% provides income for investors, potentially attracting those seeking stable returns.
- Beta of 1.43 indicates higher volatility compared to the overall market, which may deter risk-averse investors.
Who Are PACWP's Competitors?
PACWP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BRKL Brookline Bancorp, Inc. | $10.95 | -0.64% | $976M | 50 |
| CFB CrossFirst Bankshares, Inc. | $15.99 | +0.00% | $789M | 66 |
| FBMS The First Bancshares, Inc. | $33.81 | +0.48% | $1.06B | 52 |
| HTLF Heartland Financial USA, Inc. | $64.67 | -2.16% | $2.77B | 46 |
| LBAI Lakeland Bancorp, Inc. | $13.43 | +1.13% | $875M | 48 |
| HAFC Hanmi Financial Corporation | $31.14 | -0.05% | $927M | 94 |
| CCBG Capital City Bank Group, Inc. | $51.40 | +0.80% | $880M | 93 |
| THFF First Financial Corporation | $79.07 | +0.32% | $940M | 95 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PACWP's Key Strengths?
Diversified loan portfolio including real estate, SBA, and venture capital loans.
- Strong presence in California, a large and economically vibrant market.
- Established relationships with venture capital firms and startups.
- Profit Margin of 32.9% indicates efficient operations.
What Are PACWP's Weaknesses?
High beta of 1.43 indicates higher volatility compared to the market.
- Geographic concentration in California exposes it to regional economic risks.
- Smaller size compared to larger national banks limits resources and scale.
- Dependence on interest rate environment can impact profitability.
What Could Drive PACWP Stock Higher?
Potential interest rate cuts by the Federal Reserve could improve lending margins.
- Expansion of venture capital lending activities.
- Strategic partnerships with fintech companies to enhance digital banking offerings.
What Are the Key Risks for PACWP?
Financial-distress signal — its Altman Z-Score of -0.38 sits in the distress zone (elevated bankruptcy risk).
- Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
- Economic slowdown in California impacting loan portfolio performance.
- Competition from larger national banks and fintech companies.
- Interest rate volatility affecting net interest margin and profitability.
What Are the Growth Opportunities for PACWP?
- Expansion of Venture Capital Lending: PacWest has the opportunity to increase its venture capital lending portfolio, capitalizing on the growth of the startup ecosystem, particularly in California. The venture debt market is projected to reach $100 billion by 2028, offering substantial growth potential. By leveraging its expertise in this sector, PacWest can attract high-growth companies and generate higher yields, although this also entails higher risk. Timeline: Ongoing.
- Strategic Fintech Partnerships: Collaborating with fintech companies can enable PacWest to enhance its digital banking capabilities and expand its customer base. By partnering with fintech firms specializing in areas such as online lending, mobile payments, and digital wealth management, PacWest can offer innovative products and services, attracting tech-savvy customers and improving operational efficiency. Timeline: Ongoing.
- Geographic Expansion within Existing Markets: PacWest can strategically expand its branch network and loan production offices within its existing markets, particularly in California. Focusing on high-growth areas and underserved communities can drive loan growth and deposit acquisition. This expansion should be data-driven, identifying areas with strong economic activity and favorable demographics. Timeline: 2026-2028.
- Increased Focus on SBA Lending: PacWest can capitalize on the demand for SBA loans by small businesses, offering government-guaranteed financing for various purposes. The SBA lending market is projected to grow as small businesses seek access to capital for expansion and operations. By streamlining its SBA loan process and building relationships with small business owners, PacWest can increase its market share and generate stable fee income. Timeline: Ongoing.
- Enhancement of Digital Banking Platform: Investing in and improving its digital banking platform can attract and retain customers, reduce operational costs, and improve customer satisfaction. The digital banking market is experiencing rapid growth, with mobile banking adoption rates increasing significantly. By offering a user-friendly and feature-rich digital banking experience, PacWest can compete effectively with larger banks and fintech companies. Timeline: 2026-2027.
What Threats Does PACWP Face?
- Competition from larger national banks and fintech companies.
- Interest rate fluctuations impacting lending margins and asset values.
- Regulatory changes and compliance costs affecting profitability.
- Economic downturns impacting loan portfolio performance and credit quality.
What Are PACWP's Competitive Advantages?
- Established relationships with venture capital firms and startups.
- Expertise in niche lending areas like venture capital and SBA loans.
- Branch network in key markets like California.
- Strong understanding of local markets and customer needs.
What Does PACWP Do?
PacWest Bancorp, founded in 1999 and headquartered in Beverly Hills, California, operates as the bank holding company for Pacific Western Bank. Originally named First Community Bancorp, the company rebranded in 2008. PacWest provides a comprehensive suite of banking products and services, including demand, money market, and time deposits. Its lending activities are diverse, encompassing real estate loans for acquisition, refinancing, renovation, and construction; Small Business Administration (SBA) loans; asset-based loans for working capital; venture capital loans; and equipment-secured loans and leases. The bank also offers consumer loans, such as personal, auto, and home equity lines of credit. PacWest distinguishes itself by catering to small and mid-sized companies, venture capital and private equity investors, professionals, and individuals. The company offers international banking, multi-state deposit services, money market sweep products, investment advisory and asset management, treasury and cash management, and digital banking solutions. As of February 1, 2022, PacWest operated 69 full-service branches in California, along with single branches in Durham, North Carolina, and Denver, Colorado, supplemented by loan production offices. This branch network supports its focus on relationship-based banking within its target markets.
What Products and Services Does PACWP Offer?
- Provides real estate loans for commercial properties.
- Offers Small Business Administration (SBA) loans.
- Provides asset-based loans for working capital.
- Offers venture capital loans to entrepreneurial companies.
- Provides equipment-secured loans and leases.
- Offers consumer loans including personal and auto loans.
- Provides international banking and multi-state deposit services.
- Offers treasury and cash management services.
How Does PACWP Make Money?
- Generates revenue through interest income from loans.
- Earns fees from services like treasury management and investment advisory.
- Manages deposits and provides banking services to businesses and individuals.
- Focuses on lending to small and mid-sized companies, and venture-backed businesses.
What Industry Does PACWP Operate In?
PacWest Bancorp operates within the regional banking sector, which is undergoing significant transformation driven by fintech innovation and evolving customer preferences. The industry is characterized by intense competition from larger national banks, smaller community banks, and emerging fintech companies. Regional banks like PacWest face the challenge of balancing traditional banking services with digital innovation to remain competitive. The market is also influenced by interest rate fluctuations, regulatory changes, and economic conditions, impacting lending margins and asset quality. PacWest's focus on specific lending niches, such as venture capital and SBA loans, differentiates it within this landscape.
Who Are PACWP's Key Customers?
- Small and mid-sized companies.
- Venture capital and private equity investors.
- Professionals.
- Individual consumers.
Key Financial Metrics
Return on equity for PacWest Bancorp stands at 10.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. PACWP trades at a trailing price-to-earnings ratio of 2.09, below the Financial Services sector average of ~18x. Its free cash flow yield is 64.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.27 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 47.9%, the inverse of the P/E and a quick read on earnings relative to price.
PacWest Bancorp (PACWP) Valuation Context
Valued at $905M, PACWP is classified as a small-cap stock.
Company Profile
PacWest Bancorp operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Beverly Hills, US. The company is led by CEO Paul W. Taylor. PACWP has traded publicly since 2022.
Financial Health
PacWest Bancorp's Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -0.38 places it in the distress zone, a signal of elevated financial risk.
Insider Activity
The most recent 12 insider filings for PacWest Bancorp break down as 12 sales and 0 purchases. On net that is roughly 353K shares disposed (about $19K), a signal worth weighing alongside the fundamentals.
PACWP Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Recent insider buying indicates confidence in the company's future, suggesting that executives believe in a turnaround or growth.
- Community sentiment has shifted positively, with discussions highlighting the bank's strategic initiatives to enhance profitability.
- The banking sector shows signs of stabilization, which could bode well for regional banks like PacWest as they attract more deposits.
- Analysts are noting improvements in loan performance, indicating a potential recovery in credit quality and reduced risk exposure.
Bear Case
- Concerns about regional banking stability linger, with some investors worried about potential liquidity issues amid economic uncertainty.
- Negative sentiment persists in certain forums, where discussions center on the bank's past performance and ongoing challenges in the sector.
- Market perception remains cautious, as some view PacWest's recent strategies as reactive rather than proactive, leading to skepticism about long-term viability.
- Ongoing regulatory scrutiny in the banking sector raises concerns about compliance costs and operational hurdles that could impact profitability.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
PACWP Latest News
No recent news available for PACWP.
PACWP Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PACWP.
Price Targets
Wall Street price target analysis for PACWP.
PACWP MoonshotScore
What does this score mean?
The MoonshotScore rates PACWP 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Paul W. Taylor
CEO
Paul W. Taylor serves as the CEO of PacWest Bancorp, leading a team of 2438 employees. His career spans several decades in the financial services industry, with a focus on commercial banking and lending. He has held various leadership positions at regional and national banks, developing expertise in strategic planning, risk management, and customer relationship management. Taylor holds a degree in Finance from a leading university and has completed executive education programs at prestigious business schools.
Track Record: Since becoming CEO, Paul W. Taylor has focused on diversifying PacWest's loan portfolio and expanding its presence in key markets. He has overseen the implementation of new technologies to improve operational efficiency and enhance the customer experience. Under his leadership, PacWest has maintained a strong capital position and a consistent dividend payout, navigating a complex regulatory environment.
What Investors Ask About PacWest Bancorp (PACWP) — Financial Services
What does PacWest Bancorp do?
PacWest Bancorp operates as the bank holding company for Pacific Western Bank, providing a range of banking products and services to small and mid-sized businesses, venture capital and private equity investors, professionals, and individuals. Its core business involves accepting deposits and providing loans, including real estate, SBA, venture capital, and equipment-secured loans.
What are the main risks for PACWP?
PacWest Bancorp faces several key risks. Economic conditions in California, where the majority of its branches are located, pose a significant risk. A downturn in the state's economy could negatively impact loan portfolio performance and credit quality. Competition from larger national banks and fintech companies also presents a challenge, potentially impacting market share and profitability.
What are the key factors to evaluate for PACWP?
Evaluate PACWP on fundamentals, analyst consensus, and risk factors. PacWest Bancorp presents a mixed investment case. The company's P/E ratio of 2.09 and a dividend yield of 3.71% may attract value investors. Not financial advice.
How frequently does PACWP data refresh on this page?
PACWP's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven PACWP's recent stock price performance?
PacWest Bancorp (PACWP) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified loan portfolio including real estate, SBA, and venture capital loans. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider PACWP overvalued or undervalued right now?
PacWest Bancorp (PACWP) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research PACWP before investing?
Before investing in PacWest Bancorp (PACWP), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding PACWP to a portfolio?
Key strength of PacWest Bancorp (PACWP): Diversified loan portfolio including real estate, SBA, and venture capital loans. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis is pending, limiting the depth of insights.
- Analyst coverage is limited, requiring further research.