PacWest: signs of recovery in deposits, stock up 12%

PacWest Bancorp shares advanced 12% after the institution said deposits stabilized in late March and increased in April. Although the bank’s total deposits in the first quarter fell short of estimates, analysts are positive about PacWest’s improved capital position and improved net interest income.

Specifically, “Deposits leveled off in the latter part of March and rebounded in April, increasing approximately $700 million after the quarter’s end,” said chairman and CEO Paul Taylor.

“Also, in light of recent events, management has taken immediate steps to maximize liquidity, including exploring divestitures of strategic assets,” such as the $2.7 billion Lender Finance loan portfolio.

At yesterday’s close, the stock was down 55% year-to-date.