PACW
I bought some PACW Today at $36.49 Avg. What I like about this bank is obvious.
Loan Growth- PACW for a somewhat larger bank almost 10% annual loan Growth is a pretty impressive, and I see that as positive.
Dividend- This Company Dividend appears very safe, and Yields a whopping 6.55%, so you are getting paid nicely while you wait.
Earnings- Earnings although were $1.07, I would use .94 (Ignoring .13 gain) which was in line with analyst estimates despite the fact they took a much larger provision of loan losses than q1, which did cost them a couple of cents, and probably a slightly higher tax rate also cost them another .01 this quarter as well. I expect earnings to head toward $1.00 in the coming quarters.
Asset Quality- NPA have actually declined 9 Million sequentially, and NPA are significantly pretty low levels for the company, plus the Allowance is waaaaaaaaaaaaaaaaaaaaay more than the NPA, so that is a positive.
Conclusion: I think this stock Should trade at about 12-13 times. And I Personally think FY 20 earnings will be in the $4.10-4.20 level, and FY 19 will be in the $3.80-3.85 range. I see FV around $50 over the next 6-12 months. Meanwhile we get paid over 6.5% to wait, have decent loan growth, impressive Asset quality, as very few loans are going bad, and a relatively attractive stock. Not saying this stock will make you rich (Although I think there is roughly 35-40% upside on the Share price, not counting the divy's), but I do think buying in the mid 36's will be rewarded, and quite frankly you get paid decently to wait. All is just my opinion, and I could always be wrong though.
