Insider Trading under Consideration: PacWest Bancorp (PACW)

PacWest Bancorp (NASDAQ:PACW) insider has recently participated in insider trading activity. Director, EGGEMEYER JOHN M III bought 3,500 shares for $103,016 via one transaction Feb 11. Another notable insider trading was done by MOLVAR ROGER H on Feb 11, who is the Director of the company. The insider acquired 2,000 shares at an average price of $30.65. Moreover, an insider buying of 5,500 shares was carried out by STINE ROBERT A, Director at the company, on Feb 01. Following the transaction, the insider now owns 37,204 shares in total. Director, PLATT DANIEL B bought 425 shares for $14,807 through one transaction Jan 26. Following this sale, this insider’s stake in the company comprises 3,370 shares, priced at $104470 as of Friday.

The stock has experienced a total of 18 insider trades in the past three months. These trades include 2 sell activities and 16 buy trades. Furthermore, over the past 12 months, the stock was traded 73 times by insiders. In 39 of these trades, the insider was a seller while an employee of the company was the buyer in thirty four instances.

PacWest Bancorp (PACW) on February 1, 2016 announced that its Board of Directors has declared a quarterly cash dividend of $0.50 per common share. The cash dividend is payable on February 29, 2016 to stockholders of record at the close of business on February 16, 2016.

In separate news, on January 21, 2016, the company announced net earnings for the fourth quarter of 2015 of $71.8 million, or $0.60 per diluted share, compared to net earnings for the third quarter of 2015 of $69.6 million, or $0.68 per diluted share.  Net earnings for the full year 2015 were $299.6 million, or $2.79 per diluted share, compared to net earnings of $168.9 million for the full year 2014, or $1.92 per diluted share.  The increase in annual net earnings was due mostly to including the operations of CapitalSource for all of 2015 compared to including its operations in 2014 only from the April 7, 2014 merger date.

Net interest income increased by $36.7 million to $229.2 million for the fourth quarter of 2015 compared to $192.5 million for the third quarter of 2015 due to higher average investment and loan balances offset by lower discount accretion on acquired loans.  The loan and lease yield for the fourth quarter of 2015 was 6.21% compared to 6.34% for the third quarter of 2015.  The decrease in the loan and lease yield was due to lower discount accretion on acquired loans and the yield on new originations being lower than the current portfolio yield. Total discount accretion on acquired loans was $16.1 million in the fourth quarter of 2015 (46 basis points on the loan and lease yield) compared to $17.1 million in the third quarter of 2015 (57 basis points on the loan and lease yield). The decrease in discount accretion was due primarily to lower accelerated accretion from early payoffs.