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PacWest Bancorp Announces Results for the First Quarter 2016

Highlights

  • Net Earnings of $90.5 Million, or $0.74 Per Diluted Share
  • New Loan and Lease Production of $842.1 Million for the Quarter
  • Core Deposits Increased $399 Million during the Quarter and Represented 71% of Total Deposits
  • Core Tax Equivalent Net Interest Margin of 5.10%

LOS ANGELES, April 14, 2016 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq:PACW) today announced net earnings for the first quarter of 2016 of $90.5 million, or $0.74 per diluted share, compared to net earnings for the fourth quarter of 2015 of $71.8 million, or $0.60 per diluted share. The $0.14 increase in diluted earnings per share was due mostly to higher accretion on acquired loans and leases ($0.06 per share), higher noninterest income from higher gain on securities and lower dividends and gains on equity investments ($0.02 per share), and lower acquisition, integration and reorganization costs ($0.09 per share), and a higher provision for credit losses ($0.03 per share) as compared to the fourth quarter of 2015.

Matt Wagner, President and CEO, commented, “We continued to deliver outstanding performance in the first quarter and demonstrate our earning power despite competitive and market challenges. Our strong first quarter results produced a return on assets of 1.72%, a return on tangible equity of 16.45% and a quarter over quarter 23% increase in diluted earnings per share. We are also pleased with the continued transformation of our deposit portfolio as core deposits were 71% of total deposits compared to 52% a year ago. With flat net loan growth for the first quarter due to the sale of Pacific Western Equipment Finance unit leases, we expect mid to upper single digit loan growth for the year.”

Patrick Rusnak, Executive Vice President and CFO stated, “Our first quarter core tax equivalent net interest margin (NIM) remained steady at 5.10% and the NIM excluding all purchase accounting items increased 5 basis points to 4.93%. The first quarter NIM was helped by the combination of the 25 basis point rate hike in December and higher-yielding assets were a higher percentage of average interest-earning assets.”

Mr. Rusnak continued, “We continue to control operating expenses as shown by our efficiency ratio, which declined to 38.5% in the first quarter. We are pleased with our solid start to 2016 and believe our talented teams will continue to deliver strong results.”

Mr. Wagner continued, “Now that we have completed the integration of the Square 1 Bank employees and business units, we are focused on two important corporate initiatives for 2016. We will be converting our core processing systems beginning in the second quarter. Also, later this year, we will submit our first DFAST capital stress test to our regulators.”

FINANCIAL HIGHLIGHTS

At or For the Three Months Ended
March 31, December 31,
2016 2015 Change
(Dollars in thousands, except per share data)
Financial Highlights:
Net Earnings$ 90,456 $ 71,841 $ 18,615
Diluted Earnings Per Share$ 0.74 $ 0.60 $ 0.14
Return on Average Assets 1.72% 1.37% 0.35
Return on Average
Tangible Equity (1) 16.45% 13.14% 3.31
Net Interest Margin (tax equivalent) 5.53% 5.22% 0.31
Core Net Interest Margin (tax equivalent) (1) 5.10% 5.10% -
Efficiency Ratio 38.5% 39.3% (0.8)
Total Assets$ 21,031,009 $ 21,288,490 $ (257,481)
Loans and Leases, Net of Deferred Fees$ 14,483,517 $ 14,478,254 $ 5,263
Total Deposits$ 15,441,375 $ 15,666,182 $ (224,807)
Noninterest-Bearing Deposits as Percentage of Total Deposits 40% 39% 1
Core Deposits as Percentage of Total Deposits 71% 67% 4
Tangible Common Equity Ratio (1) 11.87% 11.38% 0.49
Tangible Book Value Per Share (1)$ 18.33 $ 17.86 $ 0.47
(1) Non-GAAP measure.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased by $15.4 million to $244.6 million for the first quarter of 2016 compared to $229.2 million for the fourth quarter of 2015 due to higher accretion on acquired loans and a higher average loan and lease balance offset by a lower average investment securities balance. Total accretion on acquired loans was $27.9 million in the first quarter of 2016 (77 basis points on the loan and lease yield) compared to $16.1 million in the fourth quarter of 2015 (46 basis points on the loan and lease yield). The increase in accretion was due primarily to higher accelerated accretion from payoffs on acquired loans, including $12.1 million from the payoff of a nonaccrual purchased credit impaired (“PCI”) loan. The loan and lease yield for the first quarter of 2016 was 6.57% compared to 6.21% for the fourth quarter of 2015. The increase in the loan and lease yield was due to the higher accretion on acquired loans offset by the yield on new originations being lower than the current portfolio yield. Excluding accelerated accretion, the core loan and lease yield was 6.03% in the first quarter compared to 6.05% in the fourth quarter.

The tax equivalent net interest margin (“NIM”) for the first quarter of 2016 was 5.53% compared to 5.22% for the fourth quarter of 2015. The increase in the NIM was due to higher accretion on acquired loans and a higher percentage of average higher-yielding assets in the mix. Accretion on acquired loans contributed 62 basis points to the NIM in the first quarter of 2016 and 36 basis points to the NIM in the fourth quarter of 2015. Excluding accelerated accretion, the core NIM was 5.10% for both the first and fourth quarters.

The cost of total deposits decreased to 0.23% in the first quarter of 2016 from 0.24% in the fourth quarter of 2015 due to the increased average balance of noninterest-bearing deposits and a lower level of higher-cost time deposits.

The tax equivalent NIM and loan and lease yield are impacted by volatility in accelerated accretion of acquisition discounts due to the prepayment of acquired loans and leases. The effects of this item are shown in the following table for the periods indicated:

Three Months Ended Three Months Ended
March 31, 2016 December 31, 2015
Loan and Loan and
NIMLease Yield NIMLease Yield
Reported 5.53% 6.57% 5.22% 6.21%
Less: Accelerated accretion of acquisition discounts from early payoffs of acquired loans (0.43)% (0.54)% (0.12)% (0.16)%
Core 5.10% 6.03% 5.10% 6.05%

The impact on the tax equivalent net interest income and NIM from all purchase accounting items is set forth in the table below for the periods indicated:

Three Months Ended Three Months Ended
March 31, 2016 December 31, 2015
Impact on Impact on
AmountNIM AmountNIM
(Dollars in thousands)
Net interest income/NIM $ 249,610 5.53% $ 233,959 5.22%
Less: Accelerated accretion of acquisition discounts from early payoffs of acquired loans (19,465) (0.43)% (5,511) (0.12)%
Remaining accretion of Non-PCI loan acquisition discounts (8,403) (0.19)% (10,553) (0.24)%
Total accretion of loan acquisition discounts (27,868) (0.62)% (16,064) (0.36)%
Amortization of TruPS discount 1,395 0.03% 1,397 0.03%
Accretion of time deposits premium (270) (0.01)% (384) (0.01)%
(26,743) (0.60)% (15,051) (0.34)%
Net interest income/NIM - excluding purchase accounting$ 222,867 4.93% $ 218,908 4.88%

Noninterest Income

Noninterest income increased by $6.5 million to $34.5 million for the first quarter of 2016 compared to $28.1 million for the fourth quarter of 2015 due mostly to higher gains on sales of securities of $8.1 million and lower FDIC loss sharing expense of $1.9 million, offset by lower dividends and gains on equity investments of $4.6 million. The gain on securities resulted from the sale of $335 million of securities in the first quarter due to ongoing portfolio management activities. The lower FDIC loss sharing expense is due to a fewer number and decreased balance of covered assets combined with fewer asset resolutions this quarter compared to the previous quarter. Dividends and gains from equity investments decreased as this item fluctuates from period to period based upon dividends received and number of sales of equity investments. Other income in the first quarter included a loan syndication fee ($0.9 million), a death benefit received on a BOLI policy ($0.6 million) and a loss on the sale of the Pacific Western Equipment Finance (“PWEF”) leasing unit ($0.7 million); there are no similar items in the other periods presented.

The following table presents details of noninterest income for the periods indicated:

Three Months Ended
March 31, December 31, Increase
Noninterest Income 2016 2015 (Decrease)
(In thousands)
Service charges on deposit accounts$ 3,856 $ 3,901 $ (45)
Other commissions and fees 11,489 12,691 (1,202)
Leased equipment income 8,244 7,791 453
Gain on sale of loans and leases 245 183 62
Gain on securities 8,110 - 8,110
FDIC loss sharing expense, net (2,415) (4,291) 1,876
Other income:
Dividends and realized gains on equity investments 246 4,886 (4,640)
Foreign currency translation net gains (losses) 606 (661) 1,267
Income recognized on early repayment of leases 922 802 120
Other 3,236 2,756 480
Total noninterest income $ 34,539 $ 28,058 $ 6,481

Noninterest Expense

Noninterest expense decreased by $11.6 million to $110.7 million for the first quarter of 2016 compared to $122.3 million for the fourth quarter of 2015. The decrease was due mostly to lower acquisition, integration and reorganization costs of $17.4 million offset by lower foreclosed assets income and higher compensation expense. Foreclosed assets income is lower by $2.6 million due to lower gains on foreclosed asset sales compared to the prior quarter. Compensation expense increased $2.1 million due to higher payroll taxes from the timing of the annual employment tax cycle and higher stock-based compensation due to awards granted in the first quarter offset partially by lower commission and incentive expense.

The following table presents details of noninterest expense for the periods indicated:

Three Months Ended
March 31, December 31, Increase
Noninterest Expense 2016 2015 (Decrease)
(In thousands)
Compensation$ 61,065 $ 58,992 $ 2,073
Occupancy 12,632 12,194 438
Data processing 5,904 5,585 319
Other professional services 3,572 3,811 (239)
Insurance and assessments 4,965 5,450 (485)
Intangible asset amortization 4,746 4,910 (164)
Leased equipment depreciation 5,024 4,235 789
Foreclosed assets (income) expense, net (561) (3,185) 2,624
Acquisition, integration and reorganization costs 200 17,600 (17,400)
Other expense:
Loan expense 2,155 2,745 (590)
Other 10,986 9,927 1,059
Total noninterest expense$ 110,688 $ 122,264 $ (11,576)

Income Taxes

Our overall effective income tax rate was 39.0% in the first quarter of 2016 and 40.7% for the fourth quarter of 2015. The first quarter effective tax rate approximates the expected effective tax rate for calendar year 2016.

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Average total loans and leases for the first quarter of 2016 increased by $440 million compared to the fourth quarter while period-end total loans and leases increased by $5.3 million in the first quarter to $14.5 billion at March 31, 2016. The loan and lease production of $842 million was largely offset by repayment activity and the sale of the PWEF leases.

The following table presents a roll forward of the loan and lease portfolio for the periods indicated:

Three Months Ended
March 31, December 31,
Loan and Lease Roll Forward (1) 2016 2015
(In thousands)
Beginning balance$ 14,478,254 $ 12,452,205
New production 842,064 1,403,611
Existing loans and leases:
Principal repayments, net (2) (665,281) (910,445)
Loan and lease sales (3) (26,657) (19,610)
Transfers to foreclosed assets (129) -
Charge-offs (5,536) (1,227)
Sale of PWEF (139,198) -
Loans acquired through Square 1 acquisition - 1,553,720
Ending balance$ 14,483,517 $ 14,478,254
Weighted average yields on new production 5.29% 5.29%
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.
(2) Includes principal repayments on existing loans, changes in revolving lines of credit (repayments and draws), loan participation sales and other changes within the loan portfolio.
(3) Includes $15.1 million of PWEF leases sold to third parties during the three months ended March 31, 2016.

The following table presents the composition of our loan and lease portfolio as of the dates indicated:

March 31, December 31, March 31,
Loan and Lease Portfolio 2016 2015 2015
(In thousands)
Real estate mortgage:
Commercial$ 4,640,419 $ 4,642,088 $ 4,851,038
Residential 1,149,998 1,211,209 959,364
Total real estate mortgage 5,790,417 5,853,297 5,810,402
Real estate construction and land:
Commercial 308,192 349,436 212,738
Residential 269,965 184,382 122,338
Total real estate construction and land 578,157 533,818 335,076
Total real estate loans 6,368,574 6,387,115 6,145,478
Commercial:
Cash flow 3,173,424 3,073,965 3,004,304
Asset-based 2,589,598 2,547,665 2,114,411
Venture capital 1,507,788 1,458,013 -
Equipment finance 733,228 890,349 914,015
Total commercial 8,004,038 7,969,992 6,032,730
Consumer 110,905 121,147 93,958
Total loans and leases, net of deferred fees$ 14,483,517 $ 14,478,254 $ 12,272,166
Total unfunded loan commitments$ 3,812,554 $ 3,580,655 $ 2,122,748

Loan growth in the first quarter came primarily from the cash flow, construction and venture capital portfolios. These same portfolios also accounted for most of the growth in our unfunded commitments during the quarter.

Credit Exposure Affected by Low Oil Prices

At March 31, 2016, PacWest had 19 outstanding loan and lease relationships totaling $127.7 million to borrowers involved in the oil and gas services industry, down from $137.3 million at December 31, 2015. The collateral for this credit exposure includes primarily equipment, such as drilling equipment and transportation vehicles. The reserves related to this credit exposure total approximately 15%. At March 31, 2016, three relationships totaling $45.5 million were on nonaccrual status and were classified, down from $47.1 million at December 31, 2015. The largest of these relationships had an aggregate outstanding balance of $39.9 million at March 31, 2016.

Deposits and Client Investment Funds

The following table presents the composition of our deposit portfolio as of the dates indicated:

March 31, December 31, March 31,
Deposit Category 2016 2015 2015
(Dollars in thousands)
Noninterest-bearing demand deposits$ 6,139,963 $ 6,171,455 $ 3,029,463
Interest checking deposits 921,189 874,349 739,073
Money market deposits 3,144,843 2,782,974 1,682,123
Savings deposits 764,323 742,795 746,741
Total core deposits 10,970,318 10,571,573 6,197,400
Brokered non-maturity deposits 985,784 942,253 155,976
Total non-maturity deposits 11,956,102 11,513,826 6,353,376
Time deposits under $100,000 1,357,598 1,656,227 2,562,078
Time deposits of $100,000 and over 2,127,675 2,496,129 3,018,721
Total time deposits 3,485,273 4,152,356 5,580,799
Total deposits$ 15,441,375 $ 15,666,182 $ 11,934,175
Noninterest-bearing demand deposits as percentage of total deposits 40% 39% 26%
Core deposits as percentage of total deposits 71% 67% 52%

At March 31, 2016, core deposits totaled $11.0 billion, or 71% of total deposits, including $6.1 billion of noninterest-bearing demand deposits, or 40% of total deposits.

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients, including investments managed by Square 1 Asset Management, Inc. (“S1AM”) our registered investment advisor subsidiary and third-party sweep products. Total client investment funds at March 31, 2016 were $1.6 billion, of which $1.3 billion was managed by S1AM. Approximately $184 million of client investment funds were shifted into on-balance sheet deposit products during the first quarter of 2016.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

A provision for credit losses of $20.1 million was recorded in the first quarter of 2016 compared to $13.8 million in the fourth quarter of 2015. The first quarter provision related almost entirely to Non-PCI loans and leases and increased due in part to additions to our oil and gas portfolio reserves. The allowance for Non-PCI credit losses to Non-PCI loans and leases coverage ratio increased to 0.96% at March 31, 2016 from 0.85% at December 31, 2015.

The following tables show roll forwards of the allowance for credit losses for the periods indicated:

Three Months Ended March 31, 2016
Non-PCI
Allowance for Credit Loans and Unfunded Total PCI
Losses RollforwardLeases Commitments Non-PCI Loans Total
(In thousands)
Beginning balance$ 105,534 $ 16,734 $ 122,268 $ 9,577 $ 131,845
Charge-offs (5,373) - (5,373) (163) (5,536)
Recoveries 1,481 - 1,481 - 1,481
Net charge-offs (3,892) - (3,892) (163) (4,055)
Provision 19,165 835 20,000 140 20,140
Ending balance$ 120,807 $ 17,569 $ 138,376 $ 9,554 $ 147,930
Three Months Ended December 31, 2015
Non-PCI
Allowance for Credit Loans and Unfunded Total PCI
Losses RollforwardLeases Commitments Non-PCI Loans Total
(In thousands)
Beginning balance$ 92,316 $ 8,374 $ 100,690 $ 10,955 $ 111,645
Fair value of acquired reserve for unfunded commitments - 4,746 4,746 - 4,746
Charge-offs (1,153) - (1,153) (74) (1,227)
Recoveries 2,871 - 2,871 38 2,909
Net recoveries 1,718 - 1,718 (36) 1,682
Provision (negative provision) 11,500 3,614 15,114 (1,342) 13,772
Ending balance$ 105,534 $ 16,734 $ 122,268 $ 9,577 $ 131,845

All acquired loans are recorded initially at their estimated fair value including an estimate of credit losses. The table below presents two alternative views of credit risk coverage ratios for Non-PCI loans reflecting adjustments for acquired loans and associated purchase accounting discounts:

March 31, 2016 December 31, 2015
Non-PCI Non-PCI
Loans andAllowance/Coverage Loans andAllowance/Coverage
Credit Risk Coverage RatiosLeasesDiscountRatio LeasesDiscountRatio
(Dollars in thousands)
Ending balance$ 14,365,915 $ 138,376 0.96% $ 14,339,070 $ 122,268 0.85%
Acquired loans (5,468,875) (34,231) (1) (6,030,921) (19,127) (1)
Adjusted balance$ 8,897,040 $ 104,145 1.17% $ 8,308,149 $ 103,141 1.24%
Ending balance$ 14,365,915 $ 138,376 0.96% $ 14,339,070 $ 122,268 0.85%
Unamortized net discount 78,761 78,761 (2) 92,192 92,192 (2)
Adjusted balance$ 14,444,676 $ 217,137 1.50% $ 14,431,262 $ 214,460 1.49%
(1) Allowance attributed to $5.5 billion and $6.0 billion of acquired Non-PCI loans at March 31, 2016 and December 31, 2015, based on the allowance calculation that includes an amount for credit deterioration on acquired loans and leases since their acquisition dates.
(2) Unamortized net discount relates to $5.5 billion and $6.0 billion of acquired Non-PCI loans at March 31, 2016 and December 31, 2015, and is assigned specifically to those loans only. Such discount represents the acquisition date fair value adjustment based on market, liquidity, interest rate risk and credit risk and is being accreted to interest income over the remaining life of the respective loans using the interest method. Use of the interest method results in steadily declining amounts being taken into income in each reporting period. The remaining discount of $78.8 million at March 31, 2016, is expected to be substantially accreted to income by the end of 2018.

Non-PCI loans and leases at March 31, 2016 included $8.9 billion of originated loans and leases that were not obtained through acquisitions. The related allowance for loan and lease losses totaled $90.5 million, or 1.02% of the outstanding balance.

CREDIT QUALITY

The following table presents Non-PCI loan and lease credit quality metrics as of the dates indicated:

March 31, December 31,
Non-PCI Credit Quality Metrics 2016 2015
(Dollars in thousands)
Nonaccrual loans and leases (1)$ 130,418 $ 129,019
Classified loans and leases 384,698 391,754
Performing restructured loans 66,829 40,182
Allowance for credit losses 138,376 122,268
Net charge-offs (recoveries) (for the quarter) 3,892 (1,718)
Provision for credit losses (for the quarter) 20,000 15,114
Allowance for credit losses to loans and leases 0.96% 0.85%
Allowance for credit losses to nonaccrual loans and leases (1) 106.1% 94.8%
Nonaccrual loans and leases to loans and leases 0.91% 0.90%
Nonperforming assets to loans and leases and foreclosed assets 1.05% 1.06%
Classified loans and leases to loans and leases 2.68% 2.73%
(1) The March 31, 2016 and December 31, 2015 amounts include $16.2 million and $85.2 million of acquired loans and leases with no allowance due to the effects of fair value accounting.

The following table presents Non-PCI nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by portfolio segment and class as of the dates indicated:

Non-PCI Nonaccrual Loans and Leases Non-PCI Accruing and
March 31, 2016 December 31, 2015 30-89 Days Past Due
% of % of March 31, December 31,
Loan Loan 2016 2015
AmountCategory AmountCategory Amount Amount
(Dollars in thousands)
Real estate mortgage:
Commercial$ 30,357 0.7% $ 52,363 1.2% $ 4,968 $ 1,498
Residential 5,807 0.5% 4,914 0.4% 730 3,174
Total real estate mortgage 36,164 0.6% 57,277 1.0% 5,698 4,672
Real estate construction and land:
Commercial - - - - - -
Residential 370 0.1% 372 0.2% - -
Total real estate construction and land 370 0.1% 372 0.1% - -
Commercial:
Cash flow 39,665 1.3% 15,800 0.5% 639 1,118
Asset-based 2,046 0.1% 2,505 0.1% - 1
Venture capital - - 124 - 9,554 250
Equipment finance (1) 51,247 7.0% 51,410 5.8% 1,870 360
Total commercial 92,958 1.2% 69,839 0.9% 2,063 1,729
Consumer 926 0.8% 1,531 1.3% 30 628
Total Non-PCI loans and leases $130,418 0.9% $129,019 0.9% $17,791 $7,029
(1) Includes nonaccrual leases and loans to companies involved in the oil and gas industries of $45.5 million and $47.1 million at March 31, 2016 and December 31, 2015, respectively.

The following table presents nonperforming assets as of the dates indicated:

March 31, December 31,
Nonperforming Assets 2016 2015
(Dollars in thousands)
Nonaccrual Non-PCI loans and leases$ 130,418 $ 129,019
Nonaccrual PCI Loans (1) 3,241 4,596
Total nonaccrual loans and leases 133,659 133,615
Non-PCI accruing loan contractually past due 90 days or more 2,538 700
Foreclosed assets, net 18,310 22,120
Total nonperforming assets$ 154,507 $ 156,435
Nonaccrual loans and leases to loans and leases 0.92% 0.92%
Nonperforming assets to loans and leases and foreclosed assets 1.06% 1.08%
(1) Represents legacy CapitalSource borrowing relationships placed on nonaccrual status as of the acquisition date.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with $21 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (“Pacific Western”). The Bank has 80 full-service branches located throughout the state of California and one branch in Durham, North Carolina. Pacific Western provides commercial banking services, including real estate, construction, and commercial loans, and comprehensive deposit and treasury management services to small and medium-sized businesses. Pacific Western offers additional products and services under the brands of its business groups, CapitalSource and Square 1 Bank. CapitalSource provides cash flow, asset-based, equipment and real estate loans and treasury management services to established middle market businesses on a national basis. Square 1 Bank offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovation hubs across the United States. For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

FORWARD LOOKING STATEMENTS

This release contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our expectations regarding our loan and lease portfolio growth, profitability, and effective tax rates. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such forward-looking statements for a variety of factors, including without limitation:

  • changes in economic or competitive market conditions could negatively impact investment or lending opportunities or product pricing and services;
  • credit quality deterioration or pronounced and sustained reduction in market values or other economic factors which adversely affect our borrowers’ ability to repay loans and leases;
  • higher than anticipated delinquencies, charge-offs, and loan losses;
  • compression of spreads on newly originated loans and leases;
  • the impact of asset/liability repricing risk and liquidity risk on net interest margin and the value of investments;
  • higher than anticipated increases in operating expenses;
  • increased costs to manage and sell foreclosed assets;
  • reduced demand for our services due to strategic or regulatory reasons;
  • our inability to grow deposits or access wholesale funding sources;
  • legislative or regulatory requirements or changes could negatively impact our business including an increase to capital requirements;
  • loan repayments higher than expected;
  • changes in tax laws or regulations affecting our business;
  • our inability to generate sufficient earnings;
  • tax planning or disallowance of tax benefits by tax authorities;
  • changes in tax filing jurisdictions or entity classifications; and
  • other risk factors described in documents filed by PacWest with the U.S. Securities and Exchange Commission (“SEC”).

All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
March 31, December 31, March 31,
2016 2015 2015
(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks$ 161,977 $ 161,020 $ 140,873
Interest-earning deposits in financial institutions 357,541 235,466 250,981
Total cash and cash equivalents 519,518 396,486 391,854
Securities available-for-sale, at estimated fair value 3,240,586 3,559,437 1,595,409
Federal Home Loan Bank stock, at cost 17,250 19,710 28,905
Total investment securities 3,257,836 3,579,147 1,624,314
Non-PCI loans and leases 14,365,915 14,339,070 12,047,946
PCI loans 176,607 189,095 254,346
Total gross loans and leases 14,542,522 14,528,165 12,302,292
Deferred fees and costs (59,005) (49,911) (30,126)
Total loans and leases, net of deferred fees 14,483,517 14,478,254 12,272,166
Allowance for loan and lease losses (130,361) (115,111) (92,378)
Total loans and leases, net 14,353,156 14,363,143 12,179,788
Equipment leased to others under operating leases 205,163 197,452 119,959
Premises and equipment, net 39,713 39,197 36,022
Foreclosed assets, net 18,310 22,120 35,940
Deferred tax asset, net 91,126 126,389 236,065
Goodwill 2,175,791 2,176,291 1,728,380
Core deposit and customer relationship intangibles, net 48,137 53,220 15,703
Other assets 322,259 335,045 275,915
Total assets$ 21,031,009 $ 21,288,490 $ 16,643,940
LIABILITIES:
Noninterest-bearing deposits$ 6,139,963 $ 6,171,455 $ 3,029,463
Interest-bearing deposits 9,301,412 9,494,727 8,904,712
Total deposits 15,441,375 15,666,182 11,934,175
Borrowings 551,401 621,914 618,156
Subordinated debentures 438,723 436,000 431,448
Accrued interest payable and other liabilities 142,918 166,703 126,800
Total liabilities 16,574,417 16,890,799 13,110,579
STOCKHOLDERS' EQUITY (1) 4,456,592 4,397,691 3,533,361
Total liabilities and stockholders’ equity$ 21,031,009 $ 21,288,490 $ 16,643,940
(1) Includes net unrealized gain on securities available-for-sale, net$ 48,479 $ 27,828 $ 28,744
Book value per share$ 36.60 $ 36.22 $ 34.29
Tangible book value per share$ 18.33 $ 17.86 $ 17.36
Shares outstanding 121,771,252 121,413,727 103,044,257

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended
March 31, December 31, March 31,
2016 2015 2015
(Dollars in thousands, except per share data)
Interest income:
Loans and leases$ 236,375 $ 219,677 $ 202,097
Investment securities 22,547 23,648 12,195
Deposits in financial institutions 308 172 22
Total interest income 259,230 243,497 214,314
Interest expense:
Deposits 9,073 9,391 10,479
Borrowings 581 159 235
Subordinated debentures 4,982 4,748 4,525
Total interest expense 14,636 14,298 15,239
Net interest income 244,594 229,199 199,075
Provision for credit losses 20,140 13,772 16,434
Net interest income after provision for credit losses 224,454 215,427 182,641
Noninterest income:
Service charges on deposit accounts 3,856 3,901 2,574
Other commissions and fees 11,489 12,691 5,396
Leased equipment income 8,244 7,791 5,382
Gain on sale of loans and leases 245 183 -
Gain on securities 8,110 - 3,275
FDIC loss sharing expense, net (2,415) (4,291) (4,399)
Other income 5,010 7,783 8,643
Total noninterest income 34,539 28,058 20,871
Noninterest expense:
Compensation 61,065 58,992 47,737
Occupancy 12,632 12,194 10,600
Data processing 5,904 5,585 4,308
Other professional services 3,572 3,811 3,221
Insurance and assessments 4,965 5,450 3,025
Intangible asset amortization 4,746 4,910 1,501
Leased equipment depreciation 5,024 4,235 3,103
Foreclosed assets (income) expense, net (561) (3,185) 336
Acquisition, integration and reorganization costs 200 17,600 2,000
Other expense 13,141 12,672 8,529
Total noninterest expense 110,688 122,264 84,360
Earnings before income taxes 148,305 121,221 119,152
Income tax expense (57,849) (49,380) (46,073)
Net earnings $ 90,456 $ 71,841 $ 73,079
Basic and diluted earnings per share$ 0.74 $ 0.60 $ 0.71


PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
Three Months Ended
March 31, December 31, March 31,
2016 2015 2015
(Dollars in thousands, except per share data)
Basic Earnings Per Share:
Net earnings $ 90,456 $ 71,841 $ 73,079
Less: earnings allocated to unvested restricted stock (1) (1,067) (690) (819)
Net earnings allocated to common shares$ 89,389 $ 71,151 $ 72,260
Weighted-average basic shares and unvested restricted stock outstanding 121,598 120,385 103,035
Less: weighted-average unvested restricted stock outstanding (1,392) (1,133) (1,122)
Weighted-average basic shares outstanding 120,206 119,252 101,913
Basic earnings per share$ 0.74 $ 0.60 $ 0.71
Diluted Earnings Per Share:
Net earnings allocated to common shares$ 89,389 $ 71,151 $ 72,260
Weighted-average basic shares outstanding 120,206 119,252 101,913
Diluted earnings per share$ 0.74 $ 0.60 $ 0.71
(1) Represents cash dividends paid to holders of unvested stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.


PACWEST BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
Three Months Ended
March 31, 2016 December 31, 2015 March 31, 2015
InterestAverage InterestAverage InterestAverage
Average Income/Yield/ Average Income/Yield/ Average Income/Yield/
BalanceExpenseCost BalanceExpenseCost BalanceExpenseCost
(Dollars in thousands)
Assets:
PCI loans$ 167,626 $ 20,072 48.16% $ 169,772 $ 6,345 14.83% $ 260,648 $ 10,165 15.82%
Non-PCI loans and leases 14,303,539 216,303 6.08% 13,861,330 213,332 6.11% 11,795,034 191,932 6.60%
Total loans and leases 14,471,165 236,375 6.57% 14,031,102 219,677 6.21% 12,055,682 202,097 6.80%
Investment securities (1) 3,460,293 27,563 3.20% 3,492,124 28,408 3.23% 1,613,422 13,980 3.51%
Deposits in financial institutions 230,293 308 0.54% 254,308 172 0.27% 32,761 22 0.27%
Total interest-earning assets 18,161,751 264,246 5.85% 17,777,534 248,257 5.54% 13,701,865 216,099 6.40%
Other assets 3,036,843 3,047,714 2,594,775
Total assets$ 21,198,594 $ 20,825,248 $ 16,296,640
Liabilities and Stockholders' Equity:
Interest checking$ 926,256 383 0.17% $ 889,035 345 0.15% $ 726,748 194 0.11%
Money market 3,848,753 2,415 0.25% 3,557,364 1,543 0.17% 1,836,094 945 0.21%
Savings 753,371 444 0.24% 747,054 445 0.24% 756,578 571 0.31%
Time 3,860,272 5,831 0.61% 4,439,940 7,058 0.63% 5,481,886 8,769 0.65%
Total interest-bearing deposits 9,388,652 9,073 0.39% 9,633,393 9,391 0.39% 8,801,306 10,479 0.48%
Borrowings 494,725 581 0.47% 206,236 159 0.31% 424,061 235 0.22%
Subordinated debentures 436,535 4,982 4.59% 435,293 4,748 4.33% 432,603 4,525 4.24%
Total interest-bearing liabilities 10,319,912 14,636 0.57% 10,274,922 14,298 0.55% 9,657,970 15,239 0.64%
Noninterest-bearing demand deposits 6,273,249 6,043,900 2,949,719
Other liabilities 166,831 160,264 155,608
Total liabilities 16,759,992 16,479,086 12,763,297
Stockholders' equity 4,438,602 4,346,162 3,533,343
Total liabilities and stockholders' equity$ 21,198,594 $ 20,825,248 $ 16,296,640
Net interest income (2) $ 249,610 $ 233,959 $ 200,860
Net interest spread (2) 5.28% 4.99% 5.76%
Net interest margin (2) 5.53% 5.22% 5.95%
Total deposits (3)$ 15,661,901 $ 9,073 0.23% $ 15,677,293 $ 9,391 0.24% $ 11,751,025 $ 10,479 0.36%
Funding sources (4)$ 16,593,161 $ 14,636 0.35% $ 16,318,822 $ 14,298 0.35% $ 12,607,689 $ 15,239 0.49%
(1) Includes tax equivalent adjustments of $5.0 million, $4.8 million, and $1.8 million for the three months ended March 31, 2016, December 31, 2015, and March 31, 2015 related to tax exempt income on municipal securities. The federal statutory tax rate utilized was 35% for the periods.
(2) Tax equivalent.
(3) Total deposits is the sum of interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
(4) Funding sources is the sum of interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated as annualized total interest expense divided by average funding sources.


PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER BALANCE SHEET
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks$ 161,977 $ 161,020 $ 154,652 $ 207,598 $ 140,873
Interest-earning deposits in financial institutions 357,541 235,466 81,642 433,033 250,981
Total cash and cash equivalents 519,518 396,486 236,294 640,631 391,854
Securities available-for-sale 3,240,586 3,559,437 1,809,364 1,698,158 1,595,409
Federal Home Loan Bank stock 17,250 19,710 17,250 17,250 28,905
Total investment securities 3,257,836 3,579,147 1,826,614 1,715,408 1,624,314
Non-PCI loans and leases 14,365,915 14,339,070 12,300,057 11,846,314 12,047,946
PCI loans 176,607 189,095 193,340 222,691 254,346
Total gross loans and leases 14,542,522 14,528,165 12,493,397 12,069,005 12,302,292
Deferred fees and costs (59,005) (49,911) (41,192) (34,816) (30,126)
Total loans and leases, net of deferred fees 14,483,517 14,478,254 12,452,205 12,034,189 12,272,166
Allowance for loan and lease losses (130,361) (115,111) (103,271) (99,375) (92,378)
Total loans and leases, net 14,353,156 14,363,143 12,348,934 11,934,814 12,179,788
Equipment leased to others under operating leases 205,163 197,452 161,508 117,182 119,959
Premises and equipment, net 39,713 39,197 36,475 35,984 36,022
Foreclosed assets, net 18,310 22,120 33,216 31,668 35,940
Deferred tax asset, net 91,126 126,389 169,760 211,556 236,065
Goodwill 2,175,791 2,176,291 1,728,380 1,728,380 1,728,380
Core deposit and customer relationship intangibles, net 48,137 53,220 12,704 14,201 15,703
Other assets 322,259 335,045 260,220 267,196 275,915
Total assets$ 21,031,009 $ 21,288,490 $ 16,814,105 $ 16,697,020 $ 16,643,940
LIABILITIES:
Noninterest-bearing deposits$ 6,139,963 $ 6,171,455 $ 3,508,682 $ 3,396,688 $ 3,029,463
Interest-bearing deposits 9,301,412 9,494,727 8,607,081 9,185,128 8,904,712
Total deposits 15,441,375 15,666,182 12,115,763 12,581,816 11,934,175
Borrowings 551,401 621,914 552,497 2,751 618,156
Subordinated debentures 438,723 436,000 435,417 433,944 431,448
Accrued interest payable and other liabilities 142,918 166,703 128,724 127,019 126,800
Total liabilities 16,574,417 16,890,799 13,232,401 13,145,530 13,110,579
STOCKHOLDERS' EQUITY (1) 4,456,592 4,397,691 3,581,704 3,551,490 3,533,361
Total liabilities and stockholders’ equity$ 21,031,009 $ 21,288,490 $ 16,814,105 $ 16,697,020 $ 16,643,940
(1) Includes net unrealized gain on securities available-for-sale$ 48,479 $ 27,828 $ 24,459 $ 16,255 $ 28,744
Book value per share$ 36.60 $ 36.22 $ 34.76 $ 34.46 $ 34.29
Tangible book value per share$ 18.33 $ 17.86 $ 17.86 $ 17.55 $ 17.36
Shares outstanding 121,771,252 121,413,727 103,053,694 103,051,989 103,044,257


PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER STATEMENT OF EARNINGS
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Dollars in thousands, except per share data)
Interest income:
Loans and leases$ 236,375 $ 219,677 $ 193,539 $ 203,781 $ 202,097
Investment securities 22,547 23,648 13,955 14,570 12,195
Deposits in financial institutions 308 172 178 104 22
Total interest income 259,230 243,497 207,672 218,455 214,314
Interest expense:
Deposits 9,073 9,391 10,400 11,233 10,479
Borrowings 581 159 72 88 235
Subordinated debentures 4,982 4,748 4,680 4,582 4,525
Total interest expense 14,636 14,298 15,152 15,903 15,239
Net interest income 244,594 229,199 192,520 202,552 199,075
Provision for credit losses 20,140 13,772 8,746 6,529 16,434
Net interest income after provision for credit losses 224,454 215,427 183,774 196,023 182,641
Noninterest income:
Service charges on deposit accounts 3,856 3,901 2,601 2,612 2,574
Other commissions and fees 11,489 12,691 6,376 7,123 5,396
Leased equipment income 8,244 7,791 5,475 5,375 5,382
Gain on sale of loans and leases 245 183 27 163 -
Gain (loss) on securities 8,110 - 655 (186) 3,275
FDIC loss sharing expense, net (2,415) (4,291) (4,449) (5,107) (4,399)
Other income 5,010 7,783 5,073 9,643 8,643
Total noninterest income 34,539 28,058 15,758 19,623 20,871
Noninterest expense:
Compensation 61,065 58,992 48,152 49,033 47,737
Occupancy 12,632 12,194 10,762 10,588 10,600
Data processing 5,904 5,585 4,322 4,402 4,308
Other professional services 3,572 3,811 3,396 3,332 3,221
Insurance and assessments 4,965 5,450 3,805 4,716 3,025
Intangible asset amortization 4,746 4,910 1,497 1,502 1,501
Leased equipment depreciation 5,024 4,235 3,162 3,103 3,103
Foreclosed assets (income) expense, net (561) (3,185) 4,521 (2,340) 336
Acquisition, integration and reorganization costs 200 17,600 747 900 2,000
Other expense 13,141 12,672 9,775 10,040 8,529
Total noninterest expense 110,688 122,264 90,139 85,276 84,360
Earnings before income taxes 148,305 121,221 109,393 130,370 119,152
Income tax expense (57,849) (49,380) (39,777) (45,287) (46,073)
Net earnings $ 90,456 $ 71,841 $ 69,616 $ 85,083 $ 73,079
Basic and diluted earnings per share$ 0.74 $ 0.60 $ 0.68 $ 0.83 $ 0.71


PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
At or For the Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Dollars in thousands)
Performance Ratios - GAAP:
Return on average assets (1) 1.72% 1.37% 1.65% 2.07% 1.82%
Return on average equity (1) 8.20% 6.56% 7.73% 9.62% 8.39%
Yield on average loans and leases 6.57% 6.21% 6.34% 6.75% 6.80%
Yield on average interest-earning assets (2) 5.85% 5.54% 5.88% 6.35% 6.40%
Cost of average total deposits 0.23% 0.24% 0.33% 0.37% 0.36%
Cost of average time deposits 0.61% 0.63% 0.66% 0.68% 0.65%
Cost of average interest-bearing liabilities 0.57% 0.55% 0.63% 0.66% 0.64%
Cost of average funding sources 0.35% 0.35% 0.46% 0.50% 0.49%
Net interest rate spread (2) 5.28% 4.99% 5.25% 5.69% 5.76%
Net interest margin (2) 5.53% 5.22% 5.46% 5.89% 5.95%
Noninterest expense as a percentage of average assets (1) 2.10% 2.33% 2.14% 2.08% 2.10%
Efficiency ratio 38.5% 39.3% 39.6% 38.0% 36.9%
Performance Ratios - Non-GAAP:
Return on average tangible equity (1) 16.45% 13.14% 15.09% 18.90% 16.50%
Core net interest margin (2) 5.10% 5.10% 5.19% 5.33% 5.44%
Average Balances:
Loans and leases$ 14,471,165 $ 14,031,102 $ 12,112,881 $ 12,108,016 $ 12,055,682
Interest-earning assets 18,161,751 17,777,534 14,198,482 13,942,289 13,701,865
Total assets 21,198,594 20,825,248 16,690,177 16,463,311 16,296,640
Noninterest-bearing deposits 6,273,249 6,043,900 3,486,780 3,157,129 2,949,719
Interest-bearing deposits 9,388,652 9,633,393 8,993,681 9,107,937 8,801,306
Total deposits 15,661,901 15,677,293 12,480,461 12,265,066 11,751,025
Borrowings and subordinated debentures 931,260 641,529 504,591 513,820 856,664
Interest-bearing liabilities 10,319,912 10,274,922 9,498,272 9,621,757 9,657,970
Funding sources 16,593,161 16,318,822 12,985,052 12,778,886 12,607,689
Stockholders' equity 4,438,602 4,346,162 3,572,765 3,548,748 3,533,343
(1) Annualized.
(2) Tax equivalent.


PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
At or For the Three Months Ended
March 31, December 31, September 30, June 30, March 31,
2016 2015 2015 2015 2015
(Dollars in thousands)
Non-PCI Credit Quality:
Allowance for credit losses to loans and leases 0.96% 0.85% 0.82% 0.78% 0.72%
Allowance for credit losses to nonaccrual loans and leases 106% 95% 94% 71% 62%
Nonaccrual loans and leases to loans and leases 0.91% 0.90% 0.87% 1.11% 1.16%
Nonperforming assets to loans and leases and foreclosed assets 1.05% 1.06% 1.14% 1.37% 1.45%
Nonperforming assets to total assets 0.72% 0.71% 0.84% 0.98% 1.05%
Trailing twelve month net charge-offs to average loans and leases 0.10% 0.06% 0.04% 0.06% 0.07%
PacWest Bancorp Consolidated Capital:
Tier 1 leverage ratio (1) 11.58% 11.67% 12.04% 11.96% 11.74%
Common equity tier 1 capital ratio (1) 12.70% 12.58% 12.74% 12.87% 12.27%
Tier 1 capital ratio (1) 12.70% 12.60% 12.74% 12.87% 12.27%
Total capital ratio (1) 16.04% 15.65% 16.32% 16.53% 15.80%
Tangible common equity ratio (non-GAAP measure) 11.87% 11.38% 12.21% 12.10% 12.01%
Risk-weighted assets (1)$ 17,226,658 $ 17,170,292 $ 14,038,839 $ 13,569,369 $ 13,776,106
Pacific Western Bank Capital:
Tier 1 leverage ratio (1) 11.10% 11.40% 11.56% 11.65% 11.53%
Common equity tier 1 capital ratio (1) 12.19% 12.03% 12.25% 12.55% 12.07%
Tier 1 capital ratio (1) 12.19% 12.03% 12.25% 12.55% 12.07%
Total capital ratio (1) 13.06% 12.80% 13.05% 13.35% 12.80%
Tangible common equity ratio (non-GAAP measure) 11.27% 10.80% 11.53% 11.46% 11.32%
(1) Capital information for March 31, 2016 is preliminary.

GAAP TO NON-GAAP RECONCILIATION

This press release contains certain non-GAAP financial disclosures for return on average tangible equity, tangible common equity amounts and ratios, tangible book value per share, and core net interest margin. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. We provide non-GAAP measures for return on average tangible equity, tangible common equity amounts and ratios, and tangible book value per share. Given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to return on average assets, return on average equity, equity-to-assets ratio, and book value per share, respectively.

Please refer to the following tables for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
Three Months Ended
March 31, December 31, March 31,
Return on Average Tangible Equity 2016 2015 2015
(Dollars in thousands)
Net earnings$ 90,456 $ 71,841 $ 73,079
Average stockholders' equity$ 4,438,602 $ 4,346,162 $ 3,533,343
Less: Average intangible assets 2,227,520 2,177,631 1,737,441
Average tangible common equity$ 2,211,082 $ 2,168,531 $ 1,795,902
Return on average equity (1) 8.20% 6.56% 8.39%
Return on average tangible equity (2) 16.45% 13.14% 16.50%
(1) Annualized net earnings divided by average stockholders' equity.
(2) Annualized net earnings divided by average tangible common equity.

PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
March 31, December 31, September 30, June 30, March 31,
Tangible Common Equity Ratio 2016 2015 2015 2015 2015
(Dollars in thousands)
PacWest Bancorp Consolidated:
Stockholders' equity$ 4,456,592 $ 4,397,691 $ 3,581,704 $ 3,551,490 $ 3,533,361
Less: Intangible assets 2,223,928 2,229,511 1,741,084 1,742,581 1,744,083
Tangible common equity$ 2,232,664 $ 2,168,180 $ 1,840,620 $ 1,808,909 $ 1,789,278
Total assets$ 21,031,009 $ 21,288,490 $ 16,814,105 $ 16,697,020 $ 16,643,940
Less: Intangible assets 2,223,928 2,229,511 1,741,084 1,742,581 1,744,083
Tangible assets$ 18,807,081 $ 19,058,979 $ 15,073,021 $ 14,954,439 $ 14,899,857
Equity to assets ratio 21.19% 20.66% 21.30% 21.27% 21.23%
Tangible common equity ratio (1) 11.87% 11.38% 12.21% 12.10% 12.01%
Book value per share$ 36.60 $ 36.22 $ 34.76 $ 34.46 $ 34.29
Tangible book value per share (2)$ 18.33 $ 17.86 $ 17.86 $ 17.55 $ 17.36
Shares outstanding 121,771,252 121,413,727 103,053,694 103,051,989 103,044,257
Pacific Western Bank:
Stockholders' equity$ 4,331,841 $ 4,276,279 $ 3,466,817 $ 3,440,715 $ 3,410,276
Less: Intangible assets 2,223,928 2,229,511 1,741,084 1,742,581 1,744,083
Tangible common equity$ 2,107,913 $ 2,046,768 $ 1,725,733 $ 1,698,134 $ 1,666,193
Total assets$ 20,928,105 $ 21,180,689 $ 16,707,072 $ 16,555,610 $ 16,458,591
Less: Intangible assets 2,223,928 2,229,511 1,741,084 1,742,581 1,744,083
Tangible assets$ 18,704,177 $ 18,951,178 $ 14,965,988 $ 14,813,029 $ 14,714,508
Equity to assets ratio 20.70% 20.19% 20.75% 20.78% 20.72%
Tangible common equity ratio 11.27% 10.80% 11.53% 11.46% 11.32%
(1) Tangible common equity divided by tangible assets.
(2) Tangible common equity divided by shares outstanding.


Contact: Matthew P. Wagner President and CEO Phone: 310-887-8520 Patrick J. Rusnak Executive Vice President and CFO 714-989-4705

Source:PacWest Bancorp