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PacWest Bancorp Announces Results for the Second Quarter 2016

Highlights

  • Net Earnings of $82.2 Million, or $0.68 Per Diluted Share
  • New Loan and Lease Production of $931 Million for the Quarter; $158 Million of Net Loan Growth
  • Core Deposits Increased $442 Million during the Quarter and Represented 75% of Total Deposits
  • Core Tax Equivalent Net Interest Margin of 5.11%

LOS ANGELES, July 15, 2016 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq:PACW) today announced net earnings for the second quarter of 2016 of $82.2 million, or $0.68 per diluted share, compared to net earnings for the first quarter of 2016 of $90.5 million, or $0.74 per diluted share. The decrease in net earnings was due mostly to lower accretion on acquired loans and leases, lower gain on sales of securities and the cost of terminating FDIC loss sharing agreements offset by lower credit loss provision as compared to the first quarter of 2016.

Matt Wagner, President and CEO, commented, “We are very pleased with our strong second quarter results which produced a return on assets of 1.57% and a return on tangible equity of 14.61%. This performance was driven by our above-peer net interest margin, an efficiency ratio of 40.6% and strong asset quality which resulted in minimal charge-offs.”

Patrick Rusnak, Executive Vice President and CFO stated, “Our second quarter core tax equivalent net interest margin (NIM) remained relatively steady at 5.11% and excluding all purchase accounting items increased 7 basis points to 5.00%. The second quarter NIM benefited from an improved average earning asset mix and a 3 basis point decrease in the cost of deposits.”

Mr. Rusnak continued, “We are also pleased with the continued transformation of our deposit portfolio as core deposits were 75% of total deposits compared to 52% a year ago. With $158 million of net loan growth for the second quarter, we continue to expect mid-single digit loan growth for the year.”

Mr. Wagner continued, “We continue to be focused on two important corporate initiatives for 2016. These are the conversion of our core processing systems, the first phase of which was completed during the second quarter, and the submission of our first DFAST stress test to our regulators, after which we expect to more actively evaluate plans to reduce capital levels.”

FINANCIAL HIGHLIGHTS

At or For the Three Months Ended At or For the Six Months Ended
June 30, March 31, June 30,
2016 2016 Change 2016 2015 Change
(Dollars in thousands, except per share data)
Financial Highlights:
Net Earnings$82,168 $90,456 $(8,288) $172,624 $158,162 $14,462
Diluted Earnings Per Share$0.68 $0.74 $(0.06) $1.42 $1.54 $(0.12)
Return on Average Assets 1.57% 1.72% (0.15) 1.65% 1.95% (0.30)
Return on Average
Tangible Equity (1) 14.61% 16.45% (1.84) 15.52% 17.71% (2.19)
Net Interest Margin
(tax equivalent) 5.33% 5.53% (0.20) 5.43% 5.92% (0.49)
Core Net Interest Margin
(tax equivalent) (1) 5.11% 5.10% 0.01 5.10% 5.38% (0.28)
Efficiency Ratio 40.6% 38.5% 2.1 39.5% 37.4% 2.1
Total Assets$21,147,139 $21,031,009 $116,130 $21,147,139 $16,697,020 $4,450,119
Loans and Leases, Net
of Deferred Fees$14,641,460 $14,483,517 $157,943 $14,641,460 $12,034,189 $2,607,271
Noninterest-Bearing
Deposits$6,222,696 $6,139,963 $82,733 $6,222,696 $3,396,688 $2,826,008
Core Deposits$11,411,992 $10,970,318 $441,674 $11,411,992 $6,584,606 $4,827,386
Total Deposits$15,148,009 $15,441,375 $(293,366) $15,148,009 $12,581,816 $2,566,193
Noninterest-Bearing
Deposits as Percentage
of Total Deposits 41% 40% 1 41% 26% 15
Core Deposits as
Percentage of Total
Deposits 75% 71% 4 75% 52% 23
Tangible Common Equity
Ratio (1) 12.12% 11.87% 0.25 12.12% 12.10% 0.02
Tangible Book Value Per
Share (1)$18.83 $18.33 $0.50 $18.83 $17.55 $1.28
(1) Non-GAAP measure.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $10.8 million to $233.8 million in the second quarter of 2016 compared to $244.6 million for the first quarter of 2016 due to lower accretion on acquired loans. The decrease in accretion was related mostly to lower accelerated accretion from the payoff of one purchased credit impaired (“PCI”) loan in the first quarter. Total accretion on acquired loans was $16.2 million in the second quarter of 2016 (45 basis points on the loan and lease yield) compared to $27.9 million in the first quarter of 2016 (77 basis points on the loan and lease yield). The loan and lease yield for the second quarter of 2016 was 6.24% compared to 6.57% for the first quarter of 2016. The decrease in the loan and lease yield was due to the lower accretion on acquired loans and the yield on new production being lower than the current portfolio yield. Excluding accelerated accretion, the core loan and lease yield was 5.97% in the second quarter compared to 6.03% in the first quarter.

The tax equivalent NIM for the second quarter of 2016 was 5.33% compared to 5.53% for the first quarter of 2016. The decrease in the NIM was due to lower accretion on acquired loans. Such accretion contributed 36 basis points to the NIM in the second quarter of 2016 and 62 basis points to the NIM in the first quarter of 2016. Excluding accelerated accretion, the core tax equivalent NIM was 5.11% for the second quarter compared to 5.10% for the first quarter.

The cost of total deposits decreased to 0.20% in the second quarter from 0.23% in the first quarter of 2016 due to the increased average balance of noninterest-bearing deposits combined with a lower average cost and balance of 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
June 30, 2016 March 31, 2016
Loan and Loan and
NIMLease Yield NIMLease Yield
Reported 5.33% 6.24% 5.53% 6.57%
Less:Accelerated accretion of acquisition
discounts from early payoffs of
acquired loans (0.22)% (0.27)% (0.43)% (0.54)%
Core 5.11% 5.97% 5.10% 6.03%

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
June 30, 2016 March 31, 2016
Impact on Impact on
AmountNIM AmountNIM
(Dollars in thousands)
Net interest income/NIM$238,667 5.33% $249,540 5.53%
Less:Accelerated accretion of acquisition
discounts from early payoffs of
acquired loans (9,780) (0.22)% (19,465) (0.43)%
Remaining accretion of Non-PCI loan
acquisition discounts (6,407) (0.14)% (8,403) (0.19)%
Total accretion of loan acquisition
discounts (16,187) (0.36)% (27,868) (0.62)%
Amortization of TruPS discount 1,393 0.03% 1,395 0.03%
Accretion of time deposits premium (172) 0.00% (270) (0.01)%
(14,966) (0.33)% (26,743) (0.60)%
Net interest income/NIM - excluding purchase
accounting$223,701 5.00% $222,797 4.93%

Noninterest Income

Noninterest income decreased by $12.4 million to $22.1 million for the second quarter of 2016 due mostly to a $7.6 million decrease in net gains on sales of securities and a $4.1 million increase in FDIC loss sharing expense. The second quarter of 2016 included minimal sales of securities compared to $335 million of securities sales in the first quarter resulting in the lower net gains. The higher FDIC loss sharing expense was due mainly to the $6.0 million pre-tax charge related to the early termination of our loss share agreements with the FDIC. In addition, dividends and gains on equity investments increased by $1.9 million and other income decreased by $1.2 million. First quarter other income 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 were no similar items in the second quarter.

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

Three Months Ended
June 30, March 31, Increase
Noninterest Income 2016 2016 (Decrease)
(In thousands)
Service charges on deposit accounts$3,633 $3,856 $(223)
Other commissions and fees 11,073 11,489 (416)
Leased equipment income 8,523 8,244 279
Gain on sale of loans and leases 388 245 143
Gain on securities 478 8,110 (7,632)
FDIC loss sharing expense, net (6,502) (2,415) (4,087)
Other income:
Dividends and realized gains on equity investments 2,185 246 1,939
Foreign currency translation net gains 324 606 (282)
Income recognized on early repayment of leases 27 922 (895)
Other 1,992 3,236 (1,244)
Total noninterest income$22,121 $34,539 $(12,418)

Noninterest Expense

Noninterest expense decreased by $0.6 million to $110.1 million for the second quarter compared to $110.7 million for the first quarter of 2016. Noninterest expense decreased in most expense categories in the second quarter due partly to the sale of the PWEF leasing unit at the end of the first quarter. Compensation expense increased $1.1 million due mostly to higher stock-based compensation and incentive expense offset by lower payroll tax expense. Foreclosed assets income is lower by $0.6 million due to lower gains on foreclosed asset sales compared to the prior quarter.

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

Three Months Ended
June 30, March 31, Increase
Noninterest Expense 2016 2016 (Decrease)
(In thousands)
Compensation$62,174 $61,065 $1,109
Occupancy 12,193 12,632 (439)
Data processing 5,644 5,904 (260)
Other professional services 3,223 3,572 (349)
Insurance and assessments 4,951 4,965 (14)
Intangible asset amortization 4,371 4,746 (375)
Leased equipment depreciation 5,286 5,024 262
Foreclosed assets (income), net (3) (561) 558
Acquisition, integration and reorganization costs - 200 (200)
Other expense:
Loan expense 2,323 2,155 168
Other 9,919 10,986 (1,067)
Total noninterest expense$110,081 $110,688 $(607)

Income Taxes

The overall effective income tax rate was 37.7% in the second quarter of 2016 and 39.0% in the first quarter of 2016. Although the second quarter benefited from a lower effective tax rate, the expected effective tax rate for the calendar year 2016 remains around 39%.

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Average total loans and leases for the second quarter of 2016 was relatively unchanged from the first quarter while period-end total loans and leases increased by $157.9 million in the second quarter to $14.6 billion at June 30, 2016. The net increase was driven by second quarter originations and purchases of $931.4 million, offset partially by principal repayments of $720.0 million.

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

Three Months Ended
June 30, March 31,
Loan and Lease Roll Forward (1) 2016 2016
(In thousands)
Beginning balance$14,483,517 $14,478,254
New production 931,423 842,064
Existing loans and leases:
Principal repayments, net (2) (720,003) (665,281)
Loan and lease sales (51,597) (26,657)
Transfers to foreclosed assets - (129)
Charge-offs (1,880) (5,536)
Sale of PWEF - (139,198)
Ending balance$14,641,460 $14,483,517
Weighted average yields on new production 5.06% 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.

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

June 30, March 31, December 31, June 30,
Loan and Lease Portfolio 2016 2016 2015 2015
(In thousands)
Real estate mortgage:
Commercial$4,519,209 $4,640,419 $4,642,088 $4,596,301
Residential 1,164,784 1,149,998 1,211,209 1,026,239
Total real estate mortgage 5,683,993 5,790,417 5,853,297 5,622,540
Real estate construction and land:
Commercial 417,144 308,192 349,436 230,372
Residential 281,788 269,965 184,382 119,825
Total real estate construction and land 698,932 578,157 533,818 350,197
Total real estate loans 6,382,925 6,368,574 6,387,115 5,972,737
Commercial:
Cash flow 3,048,439 3,173,424 3,073,965 2,857,928
Asset-based 2,683,913 2,589,598 2,547,665 2,212,467
Venture capital 1,666,352 1,507,788 1,458,013 -
Equipment finance 646,940 733,228 890,349 904,488
Total commercial 8,045,644 8,004,038 7,969,992 5,974,883
Consumer 212,891 110,905 121,147 86,569
Total loans and leases, net of
deferred fees$14,641,460 $14,483,517 $14,478,254 $12,034,189
Total unfunded loan commitments$3,888,686 $3,812,554 $3,580,655 $2,111,637

Loan growth in the second quarter came primarily from the consumer, construction and venture capital portfolios. The construction and venture capital portfolios also accounted for most of the growth in our unfunded commitments during the quarter.

Credit Exposure Affected by Low Oil Prices

At June 30, 2016, we had 19 outstanding loan and lease relationships totaling $116.9 million to borrowers involved in the oil and gas services industry, down from $127.7 million at March 31, 2016. 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 18%. At June 30, 2016, five relationships totaling $48.5 million were on nonaccrual status and were classified, up from three relationships totaling $45.5 million at March 31, 2016. The largest of these relationships had an aggregate outstanding balance of $39.9 million at June 30, 2016.

Deposits and Client Investment Funds

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

June 30, March 31, December 31, June 30,
Deposit Category 2016 2016 2015 2015
(Dollars in thousands)
Noninterest-bearing demand deposits$6,222,696 $6,139,963 6,171,455 $3,396,688
Interest checking deposits 1,035,395 921,189 874,349 722,231
Money market deposits 3,392,811 3,144,843 2,782,974 1,722,633
Savings deposits 761,090 764,323 742,795 743,054
Total core deposits 11,411,992 10,970,318 10,571,573 6,584,606
Brokered non-maturity deposits 972,820 985,784 942,253 651,925
Total non-maturity deposits 12,384,812 11,956,102 11,513,826 7,236,531
Time deposits under $100,000 1,114,074 1,357,598 1,656,227 2,328,109
Time deposits of $100,000 and over 1,649,123 2,127,675 2,496,129 3,017,176
Total time deposits 2,763,197 3,485,273 4,152,356 5,345,285
Total deposits$15,148,009 $15,441,375 $15,666,182 $12,581,816
Noninterest-bearing demand deposits
as percentage of total deposits 41% 40% 39% 26%
Core deposits as percentage of total deposits 75% 71% 67% 52%

At June 30, 2016, core deposits totaled $11.4 billion, or 75% of total deposits, including $6.2 billion of noninterest-bearing demand deposits, or 41% 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 June 30, 2016 were $1.5 billion, of which $1.2 billion was managed by S1AM.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

A provision for credit losses of $13.9 million was recorded in the second quarter of 2016 compared to $20.1 million in the first quarter of 2016. The second quarter provision consisted of $12.0 million for Non-PCI loans and leases and $1.9 million for PCI loans and leases. The allowance for Non-PCI credit losses to Non-PCI loans and leases coverage ratio increased to 1.03% at June 30, 2016 from 0.96% at March 31, 2016.

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

Three Months Ended June 30, 2016
Non-PCI
Allowance for Credit Loans and Unfunded Total PCI
Losses Rollforward Leases Commitments Non-PCI Loans Total
(In thousands)
Beginning balance $120,807 $17,569 $138,376 $9,554 $147,930
Charge-offs (1,712) - (1,712) (168) (1,880)
Recoveries 1,280 - 1,280 - 1,280
Net charge-offs (432) - (432) (168) (600)
Provision 11,625 375 12,000 1,903 13,903
Ending balance $132,000 $17,944 $149,944 $11,289 $161,233
Three Months Ended March 31, 2016
Non-PCI
Allowance for Credit Loans and Unfunded Total PCI
Losses Rollforward Leases 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

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:

June 30, 2016 March 31, 2016
Non-PCI Non-PCI
Credit Risk Loans andAllowance/Coverage Loans andAllowance/Coverage
Coverage RatiosLeasesDiscountRatio LeasesDiscountRatio
(Dollars in thousands)
Ending balance$14,566,425 $149,944 1.03% $14,365,915 $138,376 0.96%
Acquired loans (5,131,674) (37,440) (1) (5,468,875) (34,231) (1)
Adjusted balance$9,434,751 $112,504 1.19% $8,897,040 $104,145 1.17%
Ending balance$14,566,425 $149,944 1.03% $14,365,915 $138,376 0.96%
Unamortized net discount 65,391 65,391 (2) 78,761 78,761 (2)
Adjusted balance$14,631,816 $215,335 1.47% $14,444,676 $217,137 1.50%
(1) Allowance attributed to $5.1 billion and $5.5 billion of acquired Non-PCI loans at June 30, 2016 and March 31, 2016,
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 $5.1 billion and $5.5 billion of acquired Non-PCI loans at June 30, 2016 and
March 31, 2016, 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 $65.4 million at
June 30, 2016, is expected to be substantially accreted to income by the end of 2018.

Non-PCI loans and leases at June 30, 2016 included $9.4 billion of originated loans and leases that were not obtained through acquisitions. The related allowance for loan and lease losses totaled $97.7 million, or 1.04% of the outstanding balance.

CREDIT QUALITY

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

June 30, March 31,
Non-PCI Credit Quality Metrics 2016 2016
(Dollars in thousands)
Nonaccrual loans and leases$127,655 $130,418
Classified loans and leases 441,035 384,698
Performing restructured loans 71,709 66,829
Allowance for credit losses 149,944 138,376
Net charge-offs (for the quarter) 432 3,892
Provision for credit losses (for the quarter) 12,000 20,000
Allowance for credit losses to loans and leases 1.03% 0.96%
Allowance for credit losses to nonaccrual loans
and leases 117.5% 106.1%
Nonaccrual loans and leases to loans and leases 0.88% 0.91%
Nonperforming assets to loans and leases and
foreclosed assets 0.99% 1.05%
Classified loans and leases to loans and leases 3.03% 2.68%

Classified loans and leases increased largely as a result of a $50 million healthcare real estate loan being classified due to declining operating performance.

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
June 30, 2016 March 31, 2016 30-89 Days Past Due
% of % of June 30, March 31,
Loan Loan 2016 2016
AmountCategory AmountCategory Amount Amount
(Dollars in thousands)
Real estate mortgage:
Commercial$29,183 1% $30,357 1% $2,126 $4,968
Residential 4,238 -% 5,807 1% 171 730
Total real estate mortgage 33,421 1% 36,164 1% 2,297 5,698
Real estate construction and land:
Commercial - -% - -% - -
Residential 368 -% 370 -% - -
Total real estate
construction and land 368 -% 370 -% - -
Commercial:
Cash flow 38,146 1% 39,665 1% 389 639
Asset-based 1,986 -% 2,046 -% - -
Venture capital 1,088 -% - -% 3,548 9,554
Equipment finance (1) 52,432 8% 51,247 7% - 1,870
Total commercial 93,652 1% 92,958 1% 3,937 12,063
Consumer 214 -% 926 1% - 30
Total Non-PCI loans and
leases$127,655 1% $130,418 1% $6,234 $17,791
(1) Includes nonaccrual leases and loans to companies involved in the oil and gas industries of $48.5 million and $45.5 million at
June 30, 2016 and March 31, 2016, respectively.

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

June 30, March 31,
Nonperforming Assets 2016 2016
(Dollars in thousands)
Nonaccrual Non-PCI loans and leases$127,655 $130,418
Nonaccrual PCI Loans (1) 2,025 3,241
Total nonaccrual loans and leases 129,680 133,659
Non-PCI accruing loan contractually past due
90 days or more - 2,538
Foreclosed assets, net 16,181 18,310
Total nonperforming assets$145,861 $154,507
Nonaccrual loans and leases to loans and leases 0.88% 0.92%
Nonperforming assets to loans and leases
and foreclosed assets 0.99% 1.06%
(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 79 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, allowance for loan and lease losses, capital management, including reducing excess capital, 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;
  • loan repayments higher than expected;
  • higher than anticipated delinquencies, charge-offs, and loan and lease losses;
  • 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;
  • the need to retain capital for strategic or regulatory reasons;
  • changes in economic or competitive market conditions;
  • the financial performance of the Company;
  • stock price fluctuations;
  • 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 and/or require an increased provision for loan and lease losses;
  • results of our DFAST submissions;
  • 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
June 30, March 31, December 31,
2016
2016
2015
(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks$226,471 $161,977 $161,020
Interest-earning deposits in financial institutions 218,882 357,541 235,466
Total cash and cash equivalents 445,353 519,518 396,486
Securities available-for-sale, at estimated fair value 3,347,546 3,240,586 3,559,437
Federal Home Loan Bank stock, at cost 24,214 17,250 19,710
Total investment securities 3,371,760 3,257,836 3,579,147
Non-PCI loans and leases 14,566,425 14,365,915 14,339,070
PCI loans 136,901 176,607 189,095
Total gross loans and leases 14,703,326 14,542,522 14,528,165
Deferred fees, net (61,866) (59,005) (49,911)
Total loans and leases, net of deferred fees 14,641,460 14,483,517 14,478,254
Allowance for loan and lease losses (143,289) (130,361) (115,111)
Total loans and leases, net 14,498,171 14,353,156 14,363,143
Equipment leased to others under operating leases 204,062 205,163 197,452
Premises and equipment, net 38,718 39,713 39,197
Foreclosed assets, net 16,181 18,310 22,120
Deferred tax asset, net 24,413 91,126 126,389
Goodwill 2,175,791 2,175,791 2,176,291
Core deposit and customer
relationship intangibles, net 43,766 48,137 53,220
Other assets 328,924 322,259 335,045
Total assets$21,147,139 $21,031,009 $21,288,490
LIABILITIES:
Noninterest-bearing deposits$6,222,696 $6,139,963 $6,171,455
Interest-bearing deposits 8,925,313 9,301,412 9,494,727
Total deposits 15,148,009 15,441,375 15,666,182
Borrowings 918,208 551,401 621,914
Subordinated debentures 439,322 438,723 436,000
Accrued interest payable and other liabilities 128,296 142,918 166,703
Total liabilities 16,633,835 16,574,417 16,890,799
STOCKHOLDERS' EQUITY (1) 4,513,304 4,456,592 4,397,691
Total liabilities and stockholders’ equity$21,147,139 $21,031,009 $21,288,490
Book value per share$37.05 $36.60 $36.22
Tangible book value per share (2)$18.83 $18.33 $17.86
Shares outstanding 121,819,849 121,771,252 121,413,727
(1) Includes net unrealized gain on securities
available-for-sale, net
$81,744 $48,479 $27,828
(2) Non-GAAP measure.


PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended
Six Months Ended
June 30, March 31, June 30, June 30,
2016 2016 2015 2016 2015
(Dollars in thousands, except per share data)
Interest income:
Loans and leases$224,326 $236,375 $203,781 $460,701 405,878
Investment securities 22,420 22,547 14,570 44,967 26,765
Deposits in financial institutions 308 308 104 616 126
Total interest income 247,054 259,230 218,455 506,284 432,769
Interest expense:
Deposits 7,823 9,073 11,233 16,896 21,712
Borrowings 352 581 88 933 323
Subordinated debentures 5,122 4,982 4,582 10,104 9,107
Total interest expense 13,297 14,636 15,903 27,933 31,142
Net interest income 233,757 244,594 202,552 478,351 401,627
Provision for credit losses 13,903 20,140 6,529 34,043 22,963
Net interest income after provision
for credit losses 219,854 224,454 196,023 444,308 378,664
Noninterest income:
Service charges on deposit accounts 3,633 3,856 2,612 7,489 5,186
Other commissions and fees 11,073 11,489 7,123 22,562 12,519
Leased equipment income 8,523 8,244 5,375 16,767 10,757
Gain on sale of loans and leases 388 245 163 633 163
Gain (loss) on securities 478 8,110 (186) 8,588 3,089
FDIC loss sharing expense, net (6,502) (2,415) (5,107) (8,917) (9,506)
Other income 4,528 5,010 9,643 9,538 18,286
Total noninterest income 22,121 34,539 19,623 56,660 40,494
Noninterest expense:
Compensation 62,174 61,065 49,033 123,239 96,770
Occupancy 12,193 12,632 10,588 24,825 21,188
Data processing 5,644 5,904 4,402 11,548 8,710
Other professional services 3,223 3,572 3,332 6,795 6,553
Insurance and assessments 4,951 4,965 4,716 9,916 7,741
Intangible asset amortization 4,371 4,746 1,502 9,117 3,003
Leased equipment depreciation 5,286 5,024 3,103 10,310 6,206
Foreclosed assets (income), net (3) (561) (2,340) (564) (2,004)
Acquisition, integration and
reorganization costs - 200 900 200 2,900
Other expense 12,242 13,141 10,040 25,383 18,569
Total noninterest expense 110,081 110,688 85,276 220,769 169,636
Earnings before income taxes 131,894 148,305 130,370 280,199 249,522
Income tax expense (49,726) (57,849) (45,287) (107,575) (91,360)
Net earnings$82,168 $90,456 $85,083 $172,624 $158,162
Basic and diluted earnings per share$0.68 $0.74 $0.83 $1.42 $1.54

PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
Three Months Ended
Six Months Ended
June 30, March 31, June 30, June 30,
2016 2016 2015 2016 2015
(Dollars in thousands, except per share data)
Basic Earnings Per Share:
Net earnings$82,168 $90,456 $85,083 $172,624 $158,162
Less: earnings allocated to unvested
restricted stock (1) (863) (1,067) (807) (1,933) (1,570)
Net earnings allocated to common
shares$81,305 $89,389 $84,276 $170,691 $156,592
Weighted-average basic shares and
unvested restricted stock outstanding 121,799 121,598 103,030 121,698 103,033
Less: weighted-average unvested
restricted stock outstanding (1,481) (1,392) (1,060) (1,436) (1,091)
Weighted-average basic shares
outstanding 120,318 120,206 101,970 120,262 101,942
Basic earnings per share$0.68 $0.74 $0.83 $1.42 $1.54
Diluted Earnings Per Share:
Net earnings allocated to common
shares$81,305 $89,389 $84,276 $170,691 $156,592
Weighted-average basic shares
outstanding 120,318 120,206 101,970 120,262 101,942
Diluted earnings per share$0.68 $0.74 $0.83 $1.42 $1.54
(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
June 30, 2016
March 31, 2016
June 30, 2015
InterestAverage InterestAverage InterestAverage
AverageIncome/Yield/ AverageIncome/Yield/ AverageIncome/Yield/
BalanceExpenseCost BalanceExpenseCost BalanceExpenseCost
(Dollars in thousands)
Assets:
PCI loans$147,270 $8,484 23.17% $167,626 $20,072 48.16% $228,217 $7,894 13.87%
Non-PCI loans and leases 14,321,320 215,842 6.06% 14,303,539 216,303 6.08% 11,879,799 195,887 6.61%
Total loans and leases 14,468,590 224,326 6.24% 14,471,165 236,375 6.57% 12,108,016 203,781 6.75%
Investment securities (1) 3,288,819 27,330 3.34% 3,460,293 27,493 3.20% 1,672,590 16,739 4.01%
Deposits in financial
institutions 245,666 308 0.50% 230,293 308 0.54% 161,683 104 0.26%
Total interest-earning
assets 18,003,075 251,964 5.63% 18,161,751 264,176 5.85% 13,942,289 220,624 6.35%
Other assets 2,996,867 3,036,843 2,521,022
Total assets$20,999,942 $21,198,594 $16,463,311
Liabilities and
Stockholders' Equity:
Interest checking$1,024,763 501 0.20% $926,256 383 0.17% $741,966 202 0.11%
Money market 4,321,533 2,886 0.27% 3,848,753 2,415 0.25% 2,065,190 1,088 0.21%
Savings 766,309 412 0.22% 753,371 444 0.24% 740,878 555 0.30%
Time 3,086,492 4,024 0.52% 3,860,272 5,831 0.61% 5,559,903 9,388 0.68%
Total interest-bearing
deposits 9,199,097 7,823 0.34% 9,388,652 9,073 0.39% 9,107,937 11,233 0.49%
Borrowings 300,428 352 0.47% 494,725 581 0.47% 81,164 88 0.43%
Subordinated debentures 439,081 5,122 4.69% 436,535 4,982 4.59% 432,656 4,582 4.25%
Total interest-bearing
liabilities 9,938,606 13,297 0.54% 10,319,912 14,636 0.57% 9,621,757 15,903 0.66%
Noninterest-bearing
demand deposits 6,437,720 6,273,249 3,157,129
Other liabilities 140,023 166,831 135,677
Total liabilities 16,516,349 16,759,992 12,914,563
Stockholders' equity 4,483,593 4,438,602 3,548,748
Total liabilities and
stockholders' equity$20,999,942 $21,198,594 $16,463,311
Net interest income (2) $238,667 $249,540 $204,721
Net interest spread (2) 5.09% 5.28% 5.69%
Net interest margin (2) 5.33% 5.53% 5.89%
Total deposits (3)$15,636,817 $7,823 0.20% $15,661,901 $9,073 0.23% $12,265,066 $11,233 0.37%
Funding sources (4)$16,376,326 $13,297 0.33% $16,593,161 $14,636 0.35% $12,778,886 $15,903 0.50%
(1) Includes tax equivalent adjustments of $4.9 million, $4.9 million, and $2.2 million for the three months ended June 30, 2016, March 31, 2016, and June 30, 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
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks$226,471 $161,977 $161,020 $154,652 $207,598
Interest-earning deposits in financial
institutions 218,882 357,541 235,466 81,642 433,033
Total cash and cash equivalents 445,353 519,518 396,486 236,294 640,631
Securities available-for-sale 3,347,546 3,240,586 3,559,437 1,809,364 1,698,158
Federal Home Loan Bank stock 24,214 17,250 19,710 17,250 17,250
Total investment securities 3,371,760 3,257,836 3,579,147 1,826,614 1,715,408
Non-PCI loans and leases 14,566,425 14,365,915 14,339,070 12,300,057 11,846,314
PCI loans 136,901 176,607 189,095 193,340 222,691
Total gross loans and leases 14,703,326 14,542,522 14,528,165 12,493,397 12,069,005
Deferred fees, net (61,866) (59,005) (49,911) (41,192) (34,816)
Total loans and leases, net of
deferred fees 14,641,460 14,483,517 14,478,254 12,452,205 12,034,189
Allowance for loan and lease losses (143,289) (130,361) (115,111) (103,271) (99,375)
Total loans and leases, net 14,498,171 14,353,156 14,363,143 12,348,934 11,934,814
Equipment leased to others under
operating leases 204,062 205,163 197,452 161,508 - 117,182
Premises and equipment, net 38,718 39,713 39,197 36,475 35,984
Foreclosed assets, net 16,181 18,310 22,120 33,216 31,668
Deferred tax asset, net 24,413 91,126 126,389 169,760 211,556
Goodwill 2,175,791 2,175,791 2,176,291 1,728,380 1,728,380
Core deposit and customer
relationship intangibles, net 43,766 48,137 53,220 12,704 14,201
Other assets 328,924 322,259 335,045 260,220 267,196
Total assets$21,147,139 $21,031,009 $21,288,490 $16,814,105 $16,697,020
LIABILITIES:
Noninterest-bearing deposits$6,222,696 $6,139,963 $6,171,455 $3,508,682 $3,396,688
Interest-bearing deposits 8,925,313 9,301,412 9,494,727 8,607,081 9,185,128
Total deposits 15,148,009 15,441,375 15,666,182 12,115,763 12,581,816
Borrowings 918,208 551,401 621,914 552,497 2,751
Subordinated debentures 439,322 438,723 436,000 435,417 433,944
Accrued interest payable and other
liabilities 128,296 142,918 166,703 128,724 127,019
Total liabilities 16,633,835 16,574,417 16,890,799 13,232,401 13,145,530
STOCKHOLDERS' EQUITY (1) 4,513,304 4,456,592 4,397,691 3,581,704 3,551,490
Total liabilities and stockholders’
equity$21,147,139 $21,031,009 $21,288,490 $16,814,105 $16,697,020
Book value per share$37.05 $36.60 $36.22 $34.76 $34.46
Tangible book value per share (2)$18.83 $18.33 $17.86 $17.86 $17.55
Shares outstanding 121,819,849 121,771,252 121,413,727 103,053,694 103,051,989
(1) Includes net unrealized gain on
securities available-for-sale, net$81,744 $48,479 $27,828 $24,459 $16,255
(2) Non-GAAP measure.


PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER STATEMENT OF EARNINGS
Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands, except per share data)
Interest income:
Loans and leases$224,326 $236,375 $219,677 $193,539 $203,781
Investment securities 22,420 22,547 23,648 13,955 14,570
Deposits in financial institutions 308 308 172 178 104
Total interest income 247,054 259,230 243,497 207,672 218,455
Interest expense:
Deposits 7,823 9,073 9,391 10,400 11,233
Borrowings 352 581 159 72 88
Subordinated debentures 5,122 4,982 4,748 4,680 4,582
Total interest expense 13,297 14,636 14,298 15,152 15,903
Net interest income 233,757 244,594 229,199 192,520 202,552
Provision for credit losses 13,903 20,140 13,772 8,746 6,529
Net interest income after provision
for credit losses 219,854 224,454 215,427 183,774 196,023
Noninterest income:
Service charges on deposit accounts 3,633 3,856 3,901 2,601 2,612
Other commissions and fees 11,073 11,489 12,691 6,376 7,123
Leased equipment income 8,523 8,244 7,791 5,475 5,375
Gain on sale of loans and leases 388 245 183 27 163
Gain (loss) on securities 478 8,110 - 655 (186)
FDIC loss sharing expense, net (6,502) (2,415) (4,291) (4,449) (5,107)
Other income 4,528 5,010 7,783 5,073 9,643
Total noninterest income 22,121 34,539 28,058 15,758 19,623
Noninterest expense:
Compensation 62,174 61,065 58,992 48,152 49,033
Occupancy 12,193 12,632 12,194 10,762 10,588
Data processing 5,644 5,904 5,585 4,322 4,402
Other professional services 3,223 3,572 3,811 3,396 3,332
Insurance and assessments 4,951 4,965 5,450 3,805 4,716
Intangible asset amortization 4,371 4,746 4,910 1,497 1,502
Leased equipment depreciation 5,286 5,024 4,235 3,162 3,103
Foreclosed assets (income), net (3) (561) (3,185) 4,521 (2,340)
Acquisition, integration and
reorganization costs - 200 17,600 747 900
Other expense 12,242 13,141 12,672 9,775 10,040
Total noninterest expense 110,081 110,688 122,264 90,139 85,276
Earnings before income taxes 131,894 148,305 121,221 109,393 130,370
Income tax expense (49,726) (57,849) (49,380) (39,777) (45,287)
Net earnings $82,168 $90,456 $71,841 $69,616 $85,083
Basic and diluted earnings per share$0.68 $0.74 $0.60 $0.68 $0.83


PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
At or For the Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands)
Performance Ratios:
Return on average assets (1) 1.57% 1.72% 1.37% 1.65% 2.07%
Return on average equity (1) 7.37% 8.20% 6.56% 7.73% 9.62%
Return on average tangible equity (1)(2) 14.61% 16.45% 13.14% 15.09% 18.90%
Yield on average loans and leases 6.24% 6.57% 6.21% 6.34% 6.75%
Yield on average interest-earning
assets (3) 5.63% 5.85% 5.54% 5.88% 6.35%
Cost of average total deposits 0.20% 0.23% 0.24% 0.33% 0.37%
Cost of average time deposits 0.52% 0.61% 0.63% 0.66% 0.68%
Cost of average interest-bearing
liabilities 0.54% 0.57% 0.55% 0.63% 0.66%
Cost of average funding sources 0.33% 0.35% 0.35% 0.46% 0.50%
Net interest rate spread (3) 5.09% 5.28% 4.99% 5.25% 5.69%
Net interest margin (3) 5.33% 5.53% 5.22% 5.46% 5.89%
Efficiency ratio 40.6% 38.5% 39.3% 39.6% 38.0%
Core net interest margin (2)(3) 5.11% 5.10% 5.10% 5.19% 5.33%
Noninterest expense as a percentage
of average assets (1) 2.11% 2.10% 2.33% 2.14% 2.08%
Average Balances:
Loans and leases$14,468,590 $14,471,165 $14,031,102 $12,112,881 $12,108,016
Interest-earning assets 18,003,075 18,161,751 17,777,534 14,198,482 13,942,289
Total assets 20,999,942 21,198,594 20,825,248 16,690,177 16,463,311
Noninterest-bearing deposits 6,437,720 6,273,249 6,043,900 3,486,780 3,157,129
Interest-bearing deposits 9,199,097 9,388,652 9,633,393 8,993,681 9,107,937
Total deposits 15,636,817 15,661,901 15,677,293 12,480,461 12,265,066
Borrowings and subordinated
debentures 739,509 931,260 641,529 504,591 513,820
Interest-bearing liabilities 9,938,606 10,319,912 10,274,922 9,498,272 9,621,757
Funding sources 16,376,326 16,593,161 16,318,822 12,985,052 12,778,886
Stockholders' equity 4,483,593 4,438,602 4,346,162 3,572,765 3,548,748
(1) Annualized.
(2) Non-GAAP measure.
(3) Tax equivalent.

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
At or For the Three Months Ended
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
(Dollars in thousands)
Non-PCI Credit Quality:
Allowance for credit losses to loans
and leases 1.03% 0.96% 0.85% 0.82% 0.78%
Allowance for credit losses to
nonaccrual loans and leases 118% 106% 95% 94% 71%
Nonaccrual loans and leases to loans
and leases 0.88% 0.91% 0.90% 0.87% 1.11%
Nonperforming assets to loans and
leases and foreclosed assets 0.99% 1.05% 1.06% 1.14% 1.37%
Nonperforming assets to total assets 0.68% 0.72% 0.71% 0.84% 0.98%
Trailing twelve month net charge-offs
to average loans and leases 0.04% 0.03% 0.06% 0.04% 0.06%
PacWest Bancorp Consolidated
Capital:
Tier 1 leverage ratio (1) 11.92% 11.51% 11.67% 12.04% 11.96%
Common equity tier 1 capital ratio (1) 12.75% 12.63% 12.58% 12.74% 12.87%
Tier 1 capital ratio (1) 12.75% 12.63% 12.60% 12.74% 12.87%
Total capital ratio (1) 16.11% 15.96% 15.65% 16.32% 16.53%
Tangible common equity ratio (2) 12.12% 11.87% 11.38% 12.21% 12.10%
Risk-weighted assets (1)$17,491,865 $17,226,658 $17,170,292 $14,038,839 $13,569,369
Pacific Western Bank Capital:
Tier 1 leverage ratio (1) 11.38% 11.10% 11.40% 11.56% 11.65%
Common equity tier 1 capital ratio (1) 12.15% 12.18% 12.03% 12.25% 12.55%
Tier 1 capital ratio (1) 12.15% 12.18% 12.03% 12.25% 12.55%
Total capital ratio (1) 13.08% 13.05% 12.80% 13.05% 13.35%
Tangible common equity ratio (2) 11.51% 11.27% 10.80% 11.53% 11.46%
(1) Capital information for June 30, 2016 is preliminary.
(2) Non-GAAP measure.

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, core net interest margin, and core loan and lease yield. 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 GAAP financial measures to the non-GAAP financial measures.

PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
Return on Average Tangible Equity 2016 2016 2015 2016 2015
(Dollars in thousands)
Net earnings$82,168 $90,456 $85,083 $172,624 $158,162
Average stockholders' equity$4,483,593 $4,438,602 $3,548,748 $4,461,097 $3,541,088
Less: Average intangible assets 2,222,007 2,227,520 1,743,340 2,224,764 1,740,407
Average tangible common equity$2,261,586 $2,211,082 $1,805,408 $2,236,333 $1,800,681
Return on average equity (1) 7.37% 8.20% 9.62% 7.78% 9.01%
Return on average tangible equity (2) 14.61% 16.45% 18.90% 15.52% 17.71%
(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
June 30, March 31, December 31, September 30, June 30,
Tangible Common Equity Ratio 2016 2016 2015 2015 2015
(Dollars in thousands)
PacWest Bancorp Consolidated:
Stockholders' equity$4,513,304 $4,456,592 $4,397,691 $3,581,704 $3,551,490
Less: Intangible assets 2,219,557 2,223,928 2,229,511 1,741,084 1,742,581
Tangible common equity$2,293,747 $2,232,664 $2,168,180 $1,840,620 $1,808,909
Total assets$21,147,139 $21,031,009 $21,288,490 $16,814,105 $16,697,020
Less: Intangible assets 2,219,557 2,223,928 2,229,511 1,741,084 1,742,581
Tangible assets$18,927,582 $18,807,081 $19,058,979 $15,073,021 $14,954,439
Equity to assets ratio 21.34% 21.19% 20.66% 21.30% 21.27%
Tangible common equity ratio (1) 12.12% 11.87% 11.38% 12.21% 12.10%
Book value per share$37.05 $36.60 $36.22 $34.76 $34.46
Tangible book value per share (2)$18.83 $18.33 $17.86 $17.86 $17.55
Shares outstanding 121,819,849 121,771,252 121,413,727 103,053,694 103,051,989
Pacific Western Bank:
Stockholders' equity$4,390,928 $4,331,841 $4,276,279 $3,466,817 $3,440,715
Less: Intangible assets 2,219,557 2,223,928 2,229,511 1,741,084 1,742,581
Tangible common equity$2,171,371 $2,107,913 $2,046,768 $1,725,733 $1,698,134
Total assets$21,084,950 $20,928,105 $21,180,689 $16,707,072 $16,555,610
Less: Intangible assets 2,219,557 2,223,928 2,229,511 1,741,084 1,742,581
Tangible assets$18,865,393 $18,704,177 $18,951,178 $14,965,988 $14,813,029
Equity to assets ratio 20.82% 20.70% 20.19% 20.75% 20.78%
Tangible common equity ratio 11.51% 11.27% 10.80% 11.53% 11.46%
(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 Phone: 714-989-4705

Source:PacWest Bancorp