Written by StockNews.com

PacWest Bancorp (NASDAQ:PACW) early Monday posted worse-than-expected first quarter earnings results, as its provision for credit losses widened.

The Brea, CA-based regional banker reported:

• Q1 earnings per share (EPS) of $0.65, which was $0.07 worse than the Wall Street consensus estimate of $0.72.
• Net interest income fell by $15.9 million to $232.5 million in the latest period, down from $248.3 million sequentially from the fourth quarter.
• The company’s provision for credit losses rose in Q1 to $24.7 million, while its tax equivalent NIM was 5.16%, down from 5.47% in Q4.

PacWest commented via press release:

“First quarter 2017 earnings were below our expectations due mostly to an elevated credit provision and significant loan repayment activity.

While the higher than expected provision was not driven by newly classified or impaired loans, it was a disappointment.

We remain focused on driving high quality growth and minimizing credit costs.”

Founded in 1999, PacWest operates 79 full-service banking branches in California, along with a single branch in North Carolina. The company was formerly known as First Community Bancorp prior to changing its name in 2008.

Year-to-date, PACW has declined -7.19%, versus a 4.47% rise in the benchmark S&P 500 index during the same period.

PACW currently has a StockNews.com POWR Rating of B (Buy), and is ranked #11 of 47 stocks in the Pacific Regional Banks category.