It was a good day in the markets for investors in Pacific West Bank (OTCMKTS:PWBK) as the company saw the stock of its holding company soar by as much as 10% for the day following a key announcement. The company came into focus yesterday after it announced that it had formed a holding company named Pacific West Bancorp Inc.
On Thursday, PWBK stock increased 10.59% to $13.05 with more than 491.04K shares, compared to its average volume of 10.29K shares. The stock moved within a range of $11.80 – 13.05 after opening trade at $11.80.
Pacific West Bank (PWBO) Announces the Formation of a Holding Company, Pacific West Bancorp (PWBK)
The formation of the holding company went into effect on January 1, 2023. Following the formation of the holding company, Pacific West Bank became a fully owned subsidiary unit of the holding company. It was a major new development and reorganization and it now remains to be seen if the stock continues to add to its gains over the course of the coming days or not.
It was back on April 28, 2022 that the shareholders of the company had approved the formation of the holding company at the 2022 Meeting of Shareholders. Eventually, the formation of the holding company had been approved by the Federal Reserve Bank of San Francisco. The Chairman of the company’s board Ed Kawasaki noted that the board believed that the formation of the holding company was going to usher in a corporate structure that would provide more flexibility in terms of operations.
“The Bank’s Board of Directors felt strongly that this new corporate structure was necessary to provide the requisite financial and operational flexibility for the Bank’s long-term strategic growth initiatives,” said Ed Kawasaki, Chairman of the Board of Pacific West Bank.