Shares of PacWest Bancorp (NASDAQ: PACW) surged in pre-market trading at the time of writing on Monday after the regional bank announced that its Board of Directors have declared a quarterly cash dividend of $0.01 per common share. This cash dividend will be payable on May 31, 2023, to stockholders of record at the close of business on May 15.
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Earlier this month, the Board of Directors also declared a quarterly cash dividend of $0.4845 per depositary share on its 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A. This dividend will be payable on June 1 to stockholders of record as of May 15, 2023.
Paul Taylor, President, and CEO, commented, “Given current economic uncertainty, recent volatility in the banking sector and potential changes in regulatory capital requirements, we view reducing the dividend as a prudent step to accelerate our plans to build capital to CET1 of 10%+. Our business remains fundamentally sound, and we will continue with our strategy to focus on our relationship-based community banking model.”
This announcement by PACW also pulled up other regional stocks in pre-market trading including Western Alliance Bancorp (WAL), Comerica (CMA), and Zions Bancorp. (ZION).
Analysts, however, remain sidelined about PACW stock with a Hold consensus rating based on two Buys and six Holds.
