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Regional-bank stocks rose Wednesday as hard-hit PacWest Bancorp agreed to be acquired by Banc of California in a sign that the hangover from bank failures earlier this year may be receding.
“The implied take out price of $9.60 is higher than many estimated, with ‘[PacWest] resolution’ a net positive for the banking sector,” KBW analyst Christopher McGratty said in a research note.
The SPDR S&P Regional Banking exchange-traded fund
KRE,
moved up by 3.8%, with 136 of 139 equity components moving into positive territory.
The KBW Nasdaq Bank Index
BKX,
advanced by 1.9% and the Financial Select SPDR ETF
XLF,
moved up by 0.4%. The Ivesco KBW Bank Index
KBWB,
advanced by 1.9%.
Among individual names, PacWest Bancorp
PACW,
rallied 28% after it agreed to be acquired by Banc of California Inc.
BANC,
Banc of California’s stock rose 0.4%.
Among individual issues, Western Alliance Bancorp.
WAL,
gained 10.3%, East West Bancorp Inc.
EWBC,
moved up by 4.7%, First Horizon Corp.
FHN,
rose 5.7%, Citizens Financial Group Inc.
CFG,
rose 4.2%, Zions Bancorp
ZION,
moved up by 6.5% and Comerica Inc.
CMA,
advanced by nearly 7%.
KeyCorp
KEY,
rose 7.7% and Metropolitan Bank Holding Corp.
MCB,
went up by 4.7%.
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