PacWest, Western Alliance lead rebound in US regional lenders
Battered shares of PacWest Bancorp and Western Alliance Bancorp edged higher premarket on Thursday as the U.S. midsize lenders looked to sustain a recent rebound powered by bets that the worst of the regional banking turmoil was over.
PacWest Bancorp, which is currently exploring strategic options, climbed 7.2 percent and was set to build on a 22-percent gain recorded for the week till Wednesday.
Shares of Western Alliance climbed 7.2 percent, also poised to extend their near 27 percent surge this week after the Phoenix-based lender reported strong deposit growth in an attempt to reassure investors of its financial health after three regional lenders failed in recent months.
PacWest confirms strategic options talks after US bank shares plunge
U.S. regional banks have found some reprieve this week thanks to bullish brokerage actions, Western Alliance’s disclosure on deposit growth as well as hopes that Washington will reach a deal to raise the U.S. debt ceiling.
The KBW Regional Banking Index jumped 7.2 percent on Wednesday, recording its biggest percentage gain in nearly two years. The index has risen nearly 11 percent from a 2-1/2-year low hit earlier this month.
Among other movers on Thursday, Zion Bancorp climbed 2.6 percent and First Horizon added 2.4 percent.
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Meanwhile, Charles Schwab Corp edged 1.1 percent lower after the financial services firm said it is looking to raise $2.5 billion in debt
