PacWest Bancorp (PACW) will cut its quarterly dividend by 58.3 percent to $0.25 per share in 2020 because of the COVID-19 pandemic. The company last raised its quarterly dividend by 20 percent to $0.60 per share in the second quarter of 2018.

The next dividend is payable on May 29, 2020 to stockholders of record at the close of business on May 20, 2020. A new annual dividend of $1.00 per share yields 5.4% at a stock price of $18.52.

In the company's press release dated May 1, 2020 the company explains the dividend cut. Matt Wagner, President and CEO, commented, “Our board’s decision to reduce the dividend was based upon the careful consideration of several factors, most notably the economic effects of the COVID-19 pandemic on the US economy and our first quarter financial results. Given the high level of economic uncertainty, we view reducing the dividend as a prudent step to preserve capital at this time. Our business remains fundamentally sound and we are actively processing PPP loans, with over $1.34 billion of total SBA approvals already received.”

PacWest Bancorp is a bank holding company for Pacific Western Bank. The company provides commercial banking services, and deposit and treasury management services to small and middle-market businesses. PacWest Bancorp is focused on relationship-based business banking to small, middle-market and venture-backed businesses. The company has paid a quarterly dividend every year since the fourth quarter of 2000.