PacWest and Western Alliance lead US regional lenders’ rebound.

PacWest Bancorp and Western Alliance Bancorp Shares Rise on Regional Banking Rebound

Shares of PacWest Bancorp and Western Alliance Bancorp are on the rise premarket as midsize lenders look to sustain a recent rebound. Both banks have seen gains this week, with PacWest Bancorp climbing 7.2% and Western Alliance Bancorp surging nearly 27%. The regional banking industry has found some relief thanks to bullish brokerage actions, strong deposit growth from Western Alliance, and hopes that Washington will reach a deal to raise the U.S. debt ceiling. The KBW Regional Banking Index has jumped 7.2% and is up nearly 11% from a 2-1/2-year low earlier this month.

PacWest Bancorp

• Currently exploring strategic options
• Recorded a 22% gain for the week till Wednesday

Western Alliance Bancorp

• Reported strong deposit growth to reassure investors of its financial health
• Surged nearly 27% this week

Other movers on Thursday include Zion Bancorp, up 2.6%, and First Horizon, up 2.4%. However, Charles Schwab Corp edged 1.1% lower after announcing plans to raise $2.5 billion in debt.

Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath