Battered shares of PacWest Bancorp and Western Alliance Bancorp edged higher in premarket trading on Thursday as investors bet that the worst of the regional banking turmoil was over. PacWest Bancorp, which is currently exploring strategic options, climbed 7.9%, while Western Alliance climbed 4.2%.
The U.S. regional banks have found some reprieve this week thanks to favorable brokerage actions following Western Alliance’s deposit disclosure, along with hopes that Washington will reach a deal to raise the U.S. debt ceiling. Fund managers and billionaire investors have also doubled down on mid-sized lenders, hoping to buy the dip.
The KBW Regional Banking Index jumped 7.2% on Wednesday, recording its biggest percentage gain in nearly two years. Among other movers on Thursday, Zion Bancorp climbed 1.3% and First Horizon added 2.4%. Charles Schwab Corp edged about 1% lower after the financial services firm said it was looking to raise $2.5 billion in debt.