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PacWest Bancorp Announces Results for the Second Quarter 2017

Highlights

  • Net Earnings of $93.6 Million, or $0.77 Per Diluted Share
  • New Loan and Lease Production of $1.1 Billion
  • Core Deposits Increase of $449 Million and Represent 78% of Total Deposits
  • Tax Equivalent Net Interest Margin Increased Five Basis Points to 5.21%
  • Classified Loans and Leases Reduced by 20%

LOS ANGELES, July 18, 2017 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq:PACW) today announced net earnings for the second quarter of 2017 of $93.6 million, or $0.77 per diluted share, compared to net earnings for first quarter of 2017 of $78.7 million, or $0.65 per diluted share. The increase in net earnings from the prior quarter was primarily due to an increase in interest income from higher average balances of interest-earning assets and a lower provision for credit losses.

Matt Wagner, President and CEO, commented, “We delivered outstanding performance in the second quarter and continued to demonstrate our earning power. Our strong second quarter results produced a return on assets of 1.71% and a return on tangible equity of 16.06%. We also continue to proactively manage credit risk. During the second quarter we sold or contracted to sell loans totaling $221.1 million, including $159.4 million of healthcare cash flow loans. All of these sales have since closed. As a result, our healthcare cash flow loan portfolio today includes only one non-pass rated loan.”

Patrick Rusnak, Executive Vice President and CFO stated, “Our second quarter tax equivalent NIM increased five basis points to 5.21%. While the NIM benefitted from the repricing of variable-rate loans, this was partially offset by higher rates on non-core interest-bearing deposits and borrowings.”

Mr. Wagner continued, “We continue to look forward to closing the CU Bancorp acquisition in the fourth quarter of 2017, as we expect regulatory and shareholder approvals to come in the normal course. The date of the CU Bancorp special shareholders meeting has been set and management of both organizations are working on the integration plan.”

FINANCIAL HIGHLIGHTS

At or For the Three Months Ended At or For the Six Months Ended
June 30, March 31, June 30,
Financial Highlights 2017 2017 Change 2017 2016 Change
(Dollars in thousands, except per share data)
Net earnings$ 93,647 $ 78,668 $ 14,979 $ 172,315 $ 172,624 $ (309)
Diluted earnings per share$ 0.77 $ 0.65 $ 0.12 $ 1.42 $ 1.42 $ -
Return on average assets 1.71% 1.47% 0.24 1.59% 1.65% (0.06)
Return on average
tangible equity (1) 16.06% 13.90% 2.16 15.00% 15.52% (0.52)
Net interest margin
(tax equivalent) 5.21% 5.16% 0.05 5.19% 5.43% (0.24)
Efficiency ratio 40.3% 41.4% (1.1) 40.8% 39.5% 1.3
Total assets$ 22,246,877 $ 21,927,254 $ 319,623 $ 22,246,877 $ 21,147,139 $ 1,099,738
Loans and leases held
for investment, net of
deferred fees$ 15,543,457 $ 15,556,689 $ (13,232) $ 15,543,457 $ 14,641,460 $ 901,997
Noninterest-bearing
deposits$ 6,701,039 $ 6,789,808 $ (88,769) $ 6,701,039 $ 6,222,696 $ 478,343
Core deposits$ 13,217,574 $ 12,769,073 $ 448,501 $ 13,217,574 $ 11,411,992 $ 1,805,582
Total deposits$ 16,874,977 $ 16,331,008 $ 543,969 $ 16,874,977 $ 15,148,009 $ 1,726,968
Noninterest-bearing
deposits as percentage
of total deposits 40% 42% (2) 40% 41% (1)
Core deposits as
percentage of total
deposits 78% 78% - 78% 75% 3
Equity to assets ratio 20.50% 20.56% (0.06) 20.50% 21.34% (0.84)
Tangible common equity
ratio (1) 11.75% 11.67% 0.08 11.75% 12.12% (0.37)
Book value per share$ 37.55 $ 37.13 $ 0.42 $ 37.55 $ 37.05 $ 0.50
Tangible book value per
share (1)$ 19.40 $ 18.95 $ 0.45 $ 19.40 $ 18.83 $ 0.57
(1) Non-GAAP measure.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased by $10.0 million to $242.5 million in the second quarter of 2017 compared to $232.5 million in the first quarter of 2017 due to higher average yields and balances of loans and leases. The loan and lease yield for the second quarter of 2017 was 6.07% compared to 5.94% for the first quarter of 2017. The increase in the loan and lease yield was principally due to the higher yields on average loans and leases as a result of the repricing of variable-rate loans due to the increase in market rates during the first half of 2017.

The tax equivalent NIM for the second quarter of 2017 was 5.21% compared to 5.16% for the first quarter of 2017. The increase in the NIM was mostly due to higher yields on loans and leases due to the upward repricing of variable-rate loans, partially offset by a higher cost of interest-bearing liabilities.

The cost of total deposits increased to 0.25% in the second quarter of 2017 from 0.21% in the first quarter of 2017 due to a higher cost and average balance of non-core deposits.

Noninterest Income

Noninterest income increased by $0.2 million to $35.3 million in the second quarter of 2017 compared to $35.1 million in the first quarter of 2017 due mainly to a $2.2 million increase in leased equipment income due to higher gains on early lease terminations, a $1.8 million increase in gain on sale of securities, and a $0.7 million increase in warrant income, offset by a $4.5 million decrease in other income attributable mainly to a $5.0 million legal settlement with a former borrower recorded in the first quarter of 2017.

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

Three Months Ended
June 30, March 31, Increase
Noninterest Income 2017 2017 (Decrease)
(In thousands)
Service charges on deposit accounts$ 3,510 $ 3,758 $ (248)
Other commissions and fees 10,583 10,390 193
Leased equipment income 11,635 9,475 2,160
Gain on sale of loans and leases 649 712 (63)
Gain (loss) on sale of securities 1,651 (99) 1,750
Other income:
Dividends and realized gains on equity investments 1,587 1,345 242
Warrant income 815 155 660
Other 4,852 9,378 (4,526)
Total noninterest income $ 35,282 $ 35,114 $ 168

Noninterest Expense

Noninterest expense increased by $1.2 million to $117.7 million in the second quarter of 2017 compared to $116.5 million in the first quarter of 2017 due mostly to a $1.2 million increase in acquisition, integration, and reorganization costs and a $1.1 million charge related to the sale of the unfunded commitments portion of the healthcare loan sale.

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

Three Months Ended
June 30, March 31, Increase
Noninterest Expense 2017 2017 (Decrease)
(In thousands)
Compensation$ 65,288 $ 64,880 $ 408
Occupancy 11,811 11,608 203
Data processing 6,337 7,015 (678)
Other professional services 3,976 3,378 598
Insurance and assessments 4,856 4,791 65
Intangible asset amortization 3,065 3,064 1
Leased equipment depreciation 5,232 5,625 (393)
Foreclosed assets (income) expense, net (157) 143 (300)
Acquisition, integration and reorganization costs 1,700 500 1,200
Other expense:
Loan expense 3,884 3,387 497
Other 11,715 12,153 (438)
Total noninterest expense$ 117,707 $ 116,544 $ 1,163

Income Taxes

The overall effective income tax rate was 37.0% in the second quarter of 2017 and 37.7% in the first quarter of 2017. The estimated effective tax rate for the full year 2017 is approximately 38%.

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Total loans and leases held for investment decreased by $13.2 million in the second quarter to $15.5 billion at June 30, 2017. The net decrease was driven by principal repayments of $843.1 million, an increase in loans held for sale of $175.2 million, and loan sales of $46.0 million, partially offset by second quarter new production of $1.1 billion. In the second quarter, we sold $46.0 million of loans consisting primarily of loans from our healthcare portfolios. Additionally, we entered into two agreements to sell loans with balances totaling $175.2 million and the associated unfunded commitments of $19.3 million, primarily from our healthcare portfolios. The $175.2 million of loans were reported as held for sale at June 30, 2017 and the sales were completed in July. As a result of the second quarter loan sales and transfers to loans held for sale, our healthcare cash flow portfolio held for investment decreased from $740.6 million at March 31, 2017 to $514.7 million, including one non-pass rated credit of $19.2 million, at June 30, 2017.

The following table presents a roll forward of loans and leases held for investment for the periods indicated:

Three Months Ended
June 30, March 31,
Loan and Lease Roll Forward (1) 2017 2017
(Dollars in thousands)
Loans and leases held for investment, start of period$ 15,556,689 $ 15,455,954
New production 1,077,929 1,048,841
Existing loans and leases:
Principal repayments, net (2) (843,115) (888,409)
Loan sales (45,976) (36,461)
Transfers to foreclosed assets (502) (78)
Charge-offs (26,410) (23,158)
Transfers to loans held for sale (175,158) -
Loans and leases held for investment, end of period$ 15,543,457 $ 15,556,689
Weighted average rate on new production 4.93% 4.91%
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.
(2) Includes principal disbursements/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 loans and leases held for investment as of the dates indicated:

June 30, March 31, December 31, June 30,
Loan and Lease Portfolio 2017 2017 2016 2016
(In thousands)
Real estate mortgage:
Commercial$ 4,418,463 $ 4,420,923 $ 4,396,696 $ 4,519,209
Residential 1,719,269 1,554,946 1,314,036 1,164,784
Total real estate mortgage 6,137,732 5,975,869 5,710,732 5,683,993
Real estate construction and land:
Commercial 691,828 668,510 581,246 417,144
Residential 473,282 442,051 384,001 281,788
Total real estate construction and land 1,165,110 1,110,561 965,247 698,932
Total real estate loans 7,302,842 7,086,430 6,675,979 6,382,925
Commercial:
Cash flow 2,834,966 3,138,196 3,112,890 3,048,439
Asset-based 2,392,203 2,391,161 2,611,796 2,683,913
Venture capital 2,001,427 1,934,949 1,987,900 1,666,352
Equipment finance 613,550 623,237 691,967 646,940
Total commercial 7,842,146 8,087,543 8,404,553 8,045,644
Consumer 398,469 382,716 375,422 212,891
Total loans and leases held for
investment, net of deferred fees$ 15,543,457 $ 15,556,689 $ 15,455,954 $ 14,641,460
Total unfunded loan commitments$ 4,926,743 $ 4,497,373 $ 4,166,703 $ 3,888,686

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 2017 2017 2016 2016
(Dollars in thousands)
Noninterest-bearing demand deposits$ 6,701,039 $ 6,789,808 $ 6,659,016 $ 6,222,696
Interest checking deposits 1,762,016 1,509,902 1,448,394 1,035,395
Money market deposits 4,033,471 3,758,962 3,705,385 3,392,811
Savings deposits 721,048 710,401 711,039 761,090
Total core deposits 13,217,574 12,769,073 12,523,834 11,411,992
Non-core non-maturity deposits 1,329,324 1,154,070 1,174,487 972,820
Total non-maturity deposits 14,546,898 13,923,143 13,698,321 12,384,812
Time deposits $250,000 and under 1,940,872 1,998,597 1,758,434 2,226,066
Time deposits over $250,000 387,207 409,268 413,856 537,131
Total time deposits 2,328,079 2,407,865 2,172,290 2,763,197
Total deposits$ 16,874,977 $ 16,331,008 $ 15,870,611 $ 15,148,009
Noninterest-bearing demand deposits
as percentage of total deposits 40% 42% 42% 41%
Core deposits as percentage of total deposits 78% 78% 79% 75%

At June 30, 2017, core deposits totaled $13.2 billion, or 78% of total deposits, including $6.7 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; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds at June 30, 2017 were $1.8 billion, of which $1.6 billion was managed by S1AM.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

A provision for credit losses of $11.5 million was recorded in the second quarter of 2017 compared to $24.7 million in the first quarter of 2017. The second quarter provision consisted of $12.5 million for non-purchased credit impaired (“Non-PCI”) loans and leases and a $1.0 negative provision for PCI loans; this compares to provisions of $24.5 million and $0.2 million, respectively, for the first quarter of 2017. The lower provision for the second quarter of 2017 was mainly attributable to lower general reserves being required because of the decreased levels of classified loans and healthcare cash flow loans, both of which carry greater than average general reserve levels due to charge-off experience. In addition, the prior quarter provision was higher due to general provisions from increased general reserve loss factors which were influenced by net charge-off experience. The allowance for Non-PCI credit losses to Non-PCI loans and leases held for investment coverage ratio was 1.02% and 1.08% at June 30, 2017 and March 31, 2017.

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

Three Months Ended June 30, 2017
Non-PCI
Allowance for Credit Loans and Unfunded Total PCI
Losses RollforwardLeases Commitments Non-PCI Loans Total
(In thousands)
Beginning balance$ 149,826 $ 17,763 $ 167,589 $ 11,481 $ 179,070
Charge-offs (22,951) - (22,951) (3,459) (26,410)
Recoveries 2,004 - 2,004 58 2,062
Net charge-offs (20,947) - (20,947) (3,401) (24,348)
Provision 10,000 2,500 12,500 (1,001) 11,499
Ending balance$ 138,879 $ 20,263 $ 159,142 $ 7,079 $ 166,221
Three Months Ended March 31, 2017
Non-PCI
Allowance for Credit Loans and Unfunded Total PCI
Losses RollforwardLeases Commitments Non-PCI Loans Total
(In thousands)
Beginning balance$ 143,755 $ 17,523 $ 161,278 $ 13,483 $ 174,761
Charge-offs (20,928) - (20,928) (2,230) (23,158)
Recoveries 2,739 - 2,739 - 2,739
Net charge-offs (18,189) - (18,189) (2,230) (20,419)
Provision 24,260 240 24,500 228 24,728
Ending balance$ 149,826 $ 17,763 $ 167,589 $ 11,481 $ 179,070

The gross charge-offs for the second quarter of 2017 included approximately $10.9 million for venture capital loans and $7.2 million related to the recording of the healthcare portfolio loans at the lower of cost or market value at the time of transfer to loans held for sale. The transfer of loans to held for sale also decreased reported nonaccrual loans by $5.3 million and classified loans by $44.8 million. The annualized ratio of net charge-offs to total average loans for the quarter ended June 30, 2017 was 0.54%.

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 2017 2017
(Dollars in thousands)
Nonaccrual loans and leases (1)$ 172,576 $ 173,030
Classified loans and leases (1) 339,977 424,399
Performing troubled debt restructured loans 55,910 56,501
Allowance for credit losses 159,142 167,589
Net charge-offs (for the quarter) 20,947 18,189
Provision for credit losses (for the quarter) 12,500 24,500
Allowance for credit losses to loans and leases
held for investment 1.02% 1.08%
Allowance for credit losses to nonaccrual loans
and leases held for investment 92.2% 96.9%
Nonaccrual loans and leases held for investment
to loans and leases held for investment 1.11% 1.11%
Nonperforming assets to loans and leases
held for investment and foreclosed assets 1.20% 1.20%
Classified loans and leases held for investment
to loans and leases held for investment 2.19% 2.73%
(1) Includes loans and leases held for investment; excludes loans held for sale carried at lower of cost or fair value.

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, 2017 March 31, 2017 30-89 Days Past Due
% of % of June 30, March 31,
Loan Loan 2017 2017
AmountCategory AmountCategory Amount Amount
(Dollars in thousands)
Real estate mortgage:
Commercial$ 65,5991.5% $ 66,2161.5% $ 3,734 $ 7,383
Residential 5,2290.3% 5,8260.4% 46 640
Total real estate mortgage 70,8281.2% 72,0421.2% 3,780 8,023
Real estate construction and land:
Commercial -0.0% -0.0% - -
Residential -0.0% 3620.1% - -
Total real estate
construction and land -0.0% 3620.0% - -
Commercial:
Cash flow 43,1691.5% 53,6111.7% 201 394
Asset-based 1,7180.1% 1,1650.0% - -
Venture capital 25,2781.3% 15,2890.8% 23,171 13,265
Equipment finance 31,1115.1% 30,3884.9% - 115
Total commercial 101,2761.3% 100,4531.2% 23,372 13,774
Consumer 4720.1% 1730.0% - 49
Total (1)$ 172,5761.1% $ 173,0301.1% $ 27,152 $ 21,846
(1) Includes loans and leases held for investment; excludes loans held for sale carried at lower of cost or fair value.

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

June 30, March 31,
Nonperforming Assets 2017 2017
(Dollars in thousands)
Nonaccrual Non-PCI loans and leases (1)$ 172,576 $ 173,030
Nonaccrual PCI loans 1,980 2,404
Total nonaccrual loans and leases 174,556 175,434
Foreclosed assets, net 13,278 12,842
Total nonperforming assets$ 187,834 $ 188,276
Nonaccrual loans and leases held for investment
to loans and leases held for investment 1.12% 1.12%
Nonperforming assets to loans and leases
held for investment and foreclosed assets 1.20% 1.20%
(1) Includes loans and leases held for investment; excludes loans held for sale carried at lower of cost or fair value.

CU BANCORP MERGER ANNOUNCEMENT

On April 6, 2017, PacWest announced the signing of a definitive agreement and plan of merger (the “Agreement”) whereby PacWest will acquire CU Bancorp in a transaction valued at approximately $705 million.

CU Bancorp, headquartered in Los Angeles, California, is the parent of California United Bank, a California state-chartered non-member bank, with approximately $3.1 billion in assets and nine branches located in Los Angeles, Orange, Ventura, and San Bernardino counties at March 31, 2017. In connection with the transaction, California United Bank will be merged into Pacific Western Bank, the principal operating subsidiary of PacWest Bancorp.

The transaction, which was approved by the PacWest and CU Bancorp boards of directors, is expected to close in the fourth quarter of 2017 and is subject to customary closing conditions, including obtaining approval by CU Bancorp’s shareholders and bank regulatory authorities.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $22 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. We provide commercial banking services, including real estate, construction, and commercial loans, and comprehensive deposit and treasury management services to small and medium-sized businesses. We offer additional products and services through our CapitalSource and Square 1 Bank divisions. Our CapitalSource Division provides cash flow, asset-based, equipment and real estate loans and treasury management services to established middle market businesses on a national basis. Our Square 1 Bank Division 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 forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results and metrics and including statements about our expectations regarding our pending merger between the Company and CU Bancorp. 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. These risks and uncertainties include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; the impact of changes in interest rates or levels of market activity, especially on our loan and investment portfolios; deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business (including the levels of IPOs and M&A activities); changes in credit quality and the effect of credit quality on our provision for loan and lease losses and allowance for loan and leases losses; our ability to attract deposits and other sources of funding or liquidity; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; the Company’s ability to complete the proposed CU Bancorp transaction, including by obtaining regulatory approvals and approval by the shareholders of CU Bancorp, or any future transaction, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected timeframes or at all; changes in the Company’s stock price before completion of the CU Bancorp merger, including as a result of the financial performance of the Company or CU Bancorp before closing; and our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including the Annual Report on Form 10-K for the year ended December 31, 2016, and particularly the discussion of risk factors within that document.

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.

ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION AND WHERE TO FIND IT

Investors and security holders are urged to carefully review and consider each of PacWest’s and CU Bancorp’s public filings with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Current Reports on Form 8-K and their Quarterly Reports on Form 10-Q. The documents filed by PacWest with the SEC may be obtained free of charge at PacWest’s website at www.pacwestbancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from PacWest by requesting them in writing to PacWest Bancorp, 9701 Wilshire Boulevard, Suite 700, Beverly Hills, CA 90212; Attention: Investor Relations, by submitting an email request to investor-relations@pacwestbancorp.com or by telephone at (310) 887-8521.

The documents filed by CU Bancorp with the SEC may be obtained free of charge at CU Bancorp’s website at www.cubancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from CU Bancorp by requesting them in writing to CU Bancorp, 818 W. 7th Street, Suite 220, Los Angeles, CA 90017; Attention: Investor Relations, or by telephone at 818-257-7700.

PacWest has filed a registration statement with the SEC which includes a proxy statement of CU Bancorp and a prospectus of PacWest, and each party will file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision, investors and security holders of CU Bancorp are urged to carefully read the entire registration statement and proxy statement/prospectus, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. A definitive proxy statement/prospectus will be sent to the shareholders of CU Bancorp seeking any required shareholder approvals. Investors and security holders are able to obtain the registration statement and the proxy statement/prospectus free of charge from the SEC’s website or from PacWest or CU Bancorp by writing to the addresses provided for each company set forth in the paragraphs above.

PacWest, CU Bancorp, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from CU Bancorp shareholders in favor of the approval of the transaction. Information about the directors and executive officers of PacWest and their ownership of PacWest common stock is set forth in the proxy statement for PacWest’s 2017 annual meeting of stockholders, as previously filed with the SEC. Information about the directors and executive officers of CU Bancorp and their ownership of CU Bancorp common shares is set forth in the proxy statement for CU Bancorp’s 2016 annual meeting of shareholders, as previously filed with the SEC. Shareholders may obtain additional information regarding the interests of such participants by reading the registration statement and the proxy statement/prospectus.

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
June 30, March 31, December 31,
2017 2017 2016
(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks$ 180,330 $ 184,608 $ 337,965
Interest-earning deposits in financial institutions 107,150 111,892 81,705
Total cash and cash equivalents 287,480 296,500 419,670
Securities available-for-sale, at estimated fair value 3,474,560 3,336,992 3,223,830
Federal Home Loan Bank stock, at cost 22,059 17,901 21,870
Total investment securities 3,496,619 3,354,893 3,245,700
Loans held for sale 175,158 - -
Non-PCI loans and leases 15,536,735 15,526,518 15,412,092
PCI loans 72,445 96,353 108,445
Total gross loans and leases held for investment 15,609,180 15,622,871 15,520,537
Deferred fees, net (65,723) (66,182) (64,583)
Total loans and leases held for investment,
net of deferred fees 15,543,457 15,556,689 15,455,954
Allowance for loan and lease losses (145,958) (161,307) (157,238)
Total loans and leases held for investment, net 15,397,499 15,395,382 15,298,716
Equipment leased to others under operating leases 203,212 224,580 229,905
Premises and equipment, net 29,108 28,908 38,594
Foreclosed assets, net 13,278 12,842 12,976
Deferred tax asset, net 70,354 88,765 94,112
Goodwill 2,173,949 2,173,949 2,173,949
Core deposit and customer
relationship intangibles, net 30,237 33,302 36,366
Other assets 369,983 318,133 319,779
Total assets$ 22,246,877 $ 21,927,254 $ 21,869,767
LIABILITIES:
Noninterest-bearing deposits$ 6,701,039 $ 6,789,808 $ 6,659,016
Interest-bearing deposits 10,173,938 9,541,200 9,211,595
Total deposits 16,874,977 16,331,008 15,870,611
Borrowings 217,454 460,609 905,812
Subordinated debentures 445,743 442,516 440,744
Accrued interest payable and other liabilities 148,798 185,015 173,545
Total liabilities 17,686,972 17,419,148 17,390,712
STOCKHOLDERS' EQUITY (1) 4,559,905 4,508,106 4,479,055
Total liabilities and stockholders’ equity$ 22,246,877 $ 21,927,254 $ 21,869,767
Book value per share$ 37.55 $ 37.13 $ 36.93
Tangible book value per share (2)$ 19.40 $ 18.95 $ 18.71
Shares outstanding 121,448,321 121,408,133 121,283,669
(1) Includes net unrealized gain on securities
available-for-sale, net$ 29,729 $ 12,718 $ 5,982
(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,
2017 2017 2016 2017 2016
(Dollars in thousands, except per share data)
Interest income:
Loans and leases$ 234,618 $ 224,178 $ 224,326 $ 458,796 $ 460,701
Investment securities 24,689 23,039 22,420 47,728 44,967
Deposits in financial institutions 237 192 308 429 616
Total interest income 259,544 247,409 247,054 506,953 506,284
Interest expense:
Deposits 10,205 8,377 7,823 18,582 16,896
Borrowings 1,066 1,018 352 2,084 933
Subordinated debentures 5,800 5,562 5,122 11,362 10,104
Total interest expense 17,071 14,957 13,297 32,028 27,933
Net interest income 242,473 232,452 233,757 474,925 478,351
Provision for credit losses 11,499 24,728 13,903 36,227 34,043
Net interest income after provision
for credit losses 230,974 207,724 219,854 438,698 444,308
Noninterest income:
Service charges on deposit accounts 3,510 3,758 3,633 7,268 7,489
Other commissions and fees 10,583 10,390 11,073 20,973 22,562
Leased equipment income 11,635 9,475 8,523 21,110 16,767
Gain on sale of loans and leases 649 712 388 1,361 633
Gain (loss) on sale of securities 1,651 (99) 478 1,552 8,588
FDIC loss sharing expense, net - - (6,502) - (8,917)
Other income 7,254 10,878 4,528 18,132 9,538
Total noninterest income 35,282 35,114 22,121 70,396 56,660
Noninterest expense:
Compensation 65,288 64,880 62,174 130,168 123,239
Occupancy 11,811 11,608 12,193 23,419 24,825
Data processing 6,337 7,015 5,644 13,352 11,548
Other professional services 3,976 3,378 3,401 7,354 6,973
Insurance and assessments 4,856 4,791 4,951 9,647 9,916
Intangible asset amortization 3,065 3,064 4,371 6,129 9,117
Leased equipment depreciation 5,232 5,625 5,286 10,857 10,310
Foreclosed assets (income) expense, net (157) 143 (3) (14) (564)
Acquisition, integration and
reorganization costs 1,700 500 - 2,200 200
Other expense 15,599 15,540 12,064 31,139 25,205
Total noninterest expense 117,707 116,544 110,081 234,251 220,769
Earnings before income taxes 148,549 126,294 131,894 274,843 280,199
Income tax expense (54,902) (47,626) (49,726) (102,528) (107,575)
Net earnings $ 93,647 $ 78,668 $ 82,168 $ 172,315 $ 172,624
Basic and diluted earnings per share$ 0.77 $ 0.65 $ 0.68 $ 1.42 $ 1.42


PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
2017 2017 2016 2017 2016
(In thousands, except per share data)
Basic Earnings Per Share:
Net earnings $ 93,647 $ 78,668 $ 82,168 $ 172,315 $ 172,624
Less: earnings allocated to unvested
restricted stock (1) (1,080) (999) (863) (2,082) (1,933)
Net earnings allocated to common
shares$ 92,567 $ 77,669 $ 81,305 $ 170,233 $ 170,691
Weighted-average basic shares and
unvested restricted stock outstanding 121,422 121,346 121,799 121,384 121,698
Less: weighted-average unvested
restricted stock outstanding (1,455) (1,503) (1,481) (1,479) (1,436)
Weighted-average basic shares
outstanding 119,967 119,843 120,318 119,905 120,262
Basic earnings per share$ 0.77 $ 0.65 $ 0.68 $ 1.42 $ 1.42
Diluted Earnings Per Share:
Net earnings allocated to common
shares$ 92,567 $ 77,669 $ 81,305 $ 170,233 $ 170,691
Weighted-average basic shares
outstanding 119,967 119,843 120,318 119,905 120,262
Diluted earnings per share$ 0.77 $ 0.65 $ 0.68 $ 1.42 $ 1.42
(1) Represents cash dividends paid to holders of unvested stock, net of 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, 2017 March 31, 2017 June 30, 2016
InterestAverage InterestAverage InterestAverage
Average Income/Yield/ Average Income/Yield/ Average Income/Yield/
BalanceExpenseCost BalanceExpenseCost BalanceExpenseCost
(Dollars in thousands)
Assets:
PCI loans$ 68,759 $ 4,643 27.08% $ 89,335 $ 4,250 19.29% $ 147,270 $ 8,484 23.17%
Non-PCI loans and leases 15,429,162 229,975 5.98% 15,207,709 219,928 5.86% 14,321,320 215,842 6.06%
Total loans and leases 15,497,921 234,618 6.07% 15,297,044 224,178 5.94% 14,468,590 224,326 6.24%
Investment securities (1) 3,436,785 29,538 3.45% 3,257,448 27,822 3.46% 3,288,819 27,330 3.34%
Deposits in financial
institutions 96,087 237 0.99% 100,751 192 0.77% 245,666 308 0.50%
Total interest-earning
assets 19,030,793 264,393 5.57% 18,655,243 252,192 5.48% 18,003,075 251,964 5.63%
Other assets 2,905,809 2,990,291 2,996,867
Total assets$ 21,936,602 $ 21,645,534 $ 20,999,942
Liabilities and
Stockholders' Equity:
Interest checking$ 1,709,699 1,697 0.40% $ 1,505,439 1,167 0.31% $ 1,024,763 501 0.20%
Money market 4,907,865 4,993 0.41% 4,866,720 4,410 0.37% 4,321,533 2,886 0.27%
Savings 708,389 296 0.17% 711,529 298 0.17% 766,309 412 0.22%
Time 2,366,399 3,219 0.55% 2,246,547 2,502 0.45% 3,086,492 4,024 0.52%
Total interest-bearing
deposits 9,692,352 10,205 0.42% 9,330,235 8,377 0.36% 9,199,097 7,823 0.34%
Borrowings 457,774 1,066 0.93% 596,903 1,018 0.69% 300,428 352 0.47%
Subordinated debentures 443,756 5,800 5.24% 441,521 5,562 5.11% 439,081 5,122 4.69%
Total interest-bearing
liabilities 10,593,882 17,071 0.65% 10,368,659 14,957 0.59% 9,938,606 13,297 0.54%
Noninterest-bearing
demand deposits 6,646,349 6,595,346 6,437,720
Other liabilities 151,095 177,854 140,023
Total liabilities 17,391,326 17,141,859 16,516,349
Stockholders' equity 4,545,276 4,503,675 4,483,593
Total liabilities and
stockholders' equity$ 21,936,602 $ 21,645,534 $ 20,999,942
Net interest income (2) $ 247,322 $ 237,235 $ 238,667
Net interest spread (2) 4.92% 4.89% 5.09%
Net interest margin (2) 5.21% 5.16% 5.33%
Total deposits (3)$ 16,338,701 $ 10,205 0.25% $ 15,925,581 $ 8,377 0.21% $ 15,636,817 $ 7,823 0.20%
Funding sources (4)$ 17,240,231 $ 17,071 0.40% $ 16,964,005 $ 14,957 0.36% $ 16,376,326 $ 13,297 0.33%
(1) Includes tax equivalent adjustments of $4.9 million, $4.8 million, and $4.9 million for the three months ended June 30, 2017, March 31, 2017, and June 30, 2016 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 total 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 total 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,
2017 2017 2016 2016 2016
(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks$ 180,330 $ 184,608 $ 337,965 $ 286,371 $ 226,471
Interest-earning deposits in financial
institutions 107,150 111,892 81,705 253,994 218,882
Total cash and cash equivalents 287,480 296,500 419,670 540,365 445,353
Securities available-for-sale 3,474,560 3,336,992 3,223,830 3,341,335 3,347,546
Federal Home Loan Bank stock 22,059 17,901 21,870 19,386 24,214
Total investment securities 3,496,619 3,354,893 3,245,700 3,360,721 3,371,760
Loans held for sale 175,158 - - - -
Non-PCI loans and leases 15,536,735 15,526,518 15,412,092 14,686,206 14,566,425
PCI loans 72,445 96,353 108,445 120,221 136,901
Total gross loans and leases
held for investment 15,609,180 15,622,871 15,520,537 14,806,427 14,703,326
Deferred fees, net (65,723) (66,182) (64,583) (63,581) (61,866)
Total loans and leases held for
investment, net of deferred fees 15,543,457 15,556,689 15,455,954 14,742,846 14,641,460
Allowance for loan and lease losses (145,958) (161,307) (157,238) (147,976) (143,289)
Total loans and leases held for
investment, net 15,397,499 15,395,382 15,298,716 14,594,870 14,498,171
Equipment leased to others under
operating leases 203,212 224,580 229,905 198,931 204,062
Premises and equipment, net 29,108 28,908 38,594 38,977 38,718
Foreclosed assets, net 13,278 12,842 12,976 15,113 16,181
Deferred tax asset, net 70,354 88,765 94,112 27,073 24,413
Goodwill 2,173,949 2,173,949 2,173,949 2,173,949 2,175,791
Core deposit and customer
relationship intangibles, net 30,237 33,302 36,366 39,542 43,766
Other assets 369,983 318,133 319,779 325,750 328,924
Total assets$ 22,246,877 $ 21,927,254 $ 21,869,767 $ 21,315,291 $ 21,147,139
LIABILITIES:
Noninterest-bearing deposits$ 6,701,039 $ 6,789,808 $ 6,659,016 $ 6,521,946 $ 6,222,696
Interest-bearing deposits 10,173,938 9,541,200 9,211,595 9,123,722 8,925,313
Total deposits 16,874,977 16,331,008 15,870,611 15,645,668 15,148,009
Borrowings 217,454 460,609 905,812 541,011 918,208
Subordinated debentures 445,743 442,516 440,744 441,112 439,322
Accrued interest payable and other
liabilities 148,798 185,015 173,545 144,905 128,296
Total liabilities 17,686,972 17,419,148 17,390,712 16,772,696 16,633,835
STOCKHOLDERS' EQUITY (1) 4,559,905 4,508,106 4,479,055 4,542,595 4,513,304
Total liabilities and stockholders’
equity$ 22,246,877 $ 21,927,254 $ 21,869,767 $ 21,315,291 $ 21,147,139
Book value per share$ 37.55 $ 37.13 $ 36.93 $ 37.29 $ 37.05
Tangible book value per share (2)$ 19.40 $ 18.95 $ 18.71 $ 19.12 $ 18.83
Shares outstanding 121,448,321 121,408,133 121,283,669 121,817,524 121,819,849
(1) Includes net unrealized gain on
securities available-for-sale, net$ 29,729 $ 12,718 $ 5,982 $ 72,073 $ 81,744
(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,
2017 2017 2016 2016 2016
(Dollars in thousands, except per share data)
Interest income:
Loans and leases$ 234,618 $ 224,178 $ 238,223 $ 225,370 $ 224,326
Investment securities 24,689 23,039 23,403 22,187 22,420
Deposits in financial institutions 237 192 147 298 308
Total interest income 259,544 247,409 261,773 247,855 247,054
Interest expense:
Deposits 10,205 8,377 7,369 7,247 7,823
Borrowings 1,066 1,018 631 695 352
Subordinated debentures 5,800 5,562 5,468 5,278 5,122
Total interest expense 17,071 14,957 13,468 13,220 13,297
Net interest income 242,473 232,452 248,305 234,635 233,757
Provision for credit losses 11,499 24,728 23,215 8,471 13,903
Net interest income after provision
for credit losses 230,974 207,724 225,090 226,164 219,854
Noninterest income:
Service charges on deposit accounts 3,510 3,758 3,557 3,488 3,633
Other commissions and fees 10,583 10,390 12,036 12,528 11,073
Leased equipment income 11,635 9,475 8,614 8,538 8,523
Gain on sale of loans and leases 649 712 119 157 388
Gain (loss) on sale of securities 1,651 (99) 515 382 478
FDIC loss sharing expense, net - - - - (6,502)
Other income 7,254 10,878 4,054 1,827 4,528
Total noninterest income 35,282 35,114 28,895 26,920 22,121
Noninterest expense:
Compensation 65,288 64,880 66,013 62,661 62,174
Occupancy 11,811 11,608 12,076 12,010 12,193
Data processing 6,337 7,015 6,574 6,234 5,644
Other professional services 3,976 3,378 4,880 4,625 3,401
Insurance and assessments 4,856 4,791 4,124 4,324 4,951
Intangible asset amortization 3,065 3,064 3,176 4,224 4,371
Leased equipment depreciation 5,232 5,625 5,291 5,298 5,286
Foreclosed assets (income) expense, net (157) 143 2,693 (248) (3)
Acquisition, integration and
reorganization costs 1,700 500 - - -
Other expense 15,599 15,540 13,795 11,582 12,064
Total noninterest expense 117,707 116,544 118,622 110,710 110,081
Earnings before income taxes 148,549 126,294 135,363 142,374 131,894
Income tax expense (54,902) (47,626) (49,716) (48,479) (49,726)
Net earnings $ 93,647 $ 78,668 $ 85,647 $ 93,895 $ 82,168
Basic and diluted earnings per share$ 0.77 $ 0.65 $ 0.71 $ 0.77 $ 0.68


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,
2017 2017 2016 2016 2016
(Dollars in thousands)
Performance Ratios:
Return on average assets (1) 1.71% 1.47% 1.59% 1.77% 1.57%
Return on average equity (1) 8.26% 7.08% 7.57% 8.24% 7.37%
Return on average tangible equity (1)(2) 16.06% 13.90% 14.88% 16.15% 14.61%
Yield on average loans and leases (1) 6.07% 5.94% 6.31% 6.17% 6.24%
Yield on average interest-earning
assets (1)(3) 5.57% 5.48% 5.76% 5.55% 5.63%
Cost of average total deposits (1) 0.25% 0.21% 0.19% 0.19% 0.20%
Cost of average time deposits (1) 0.55% 0.45% 0.40% 0.45% 0.52%
Cost of average interest-bearing
liabilities (1) 0.65% 0.59% 0.52% 0.52% 0.54%
Cost of average funding sources (1) 0.40% 0.36% 0.32% 0.32% 0.33%
Net interest rate spread (1)(3) 4.92% 4.89% 5.24% 5.03% 5.09%
Net interest margin (1)(3) 5.21% 5.16% 5.47% 5.26% 5.33%
Efficiency ratio 40.3% 41.4% 40.1% 40.1% 40.6%
Noninterest expense as a percentage
of average assets (1) 2.15% 2.18% 2.20% 2.09% 2.11%
Average Balances:
Loans and leases$ 15,497,921 $ 15,297,044 $ 15,008,268 $ 14,534,951 $ 14,468,590
Interest-earning assets 19,030,793 18,655,243 18,413,189 18,111,585 18,003,075
Total assets 21,936,602 21,645,534 21,427,950 21,072,053 20,999,942
Noninterest-bearing deposits 6,646,349 6,595,346 6,496,221 6,274,294 6,437,720
Interest-bearing deposits 9,692,352 9,330,235 9,327,080 9,107,305 9,199,097
Total deposits 16,338,701 15,925,581 15,823,301 15,381,599 15,636,817
Borrowings and subordinated
debentures 901,530 1,038,424 946,474 1,023,952 739,509
Interest-bearing liabilities 10,593,882 10,368,659 10,273,554 10,131,257 9,938,606
Funding sources 17,240,231 16,964,005 16,769,775 16,405,551 16,376,326
Stockholders' equity 4,545,276 4,503,675 4,501,948 4,530,701 4,483,593
(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,
2017 2017 2016 2016 2016
(Dollars in thousands)
Non-PCI Credit Quality:
Allowance for credit losses to loans
and leases held for investment 1.02% 1.08% 1.05% 1.05% 1.03%
Allowance for credit losses to
nonaccrual loans and leases held
for investment 92.2% 96.9% 94.5% 90.1% 117.5%
Nonaccrual loans and leases held for
investment to loans and leases held
for investment 1.11% 1.11% 1.11% 1.16% 0.88%
Nonperforming assets to loans and
leases held for investment and
foreclosed assets 1.20% 1.20% 1.19% 1.27% 0.99%
Nonperforming assets to total assets 0.84% 0.85% 0.84% 0.87% 0.68%
Trailing twelve month net charge-offs
to average loans and leases
held for investment 0.37% 0.24% 0.15% 0.04% 0.04%
PacWest Bancorp Consolidated
Capital:
Tier 1 leverage ratio (1) 11.90% 11.87% 11.91% 12.13% 11.92%
Common equity tier 1 capital ratio (1) 12.28% 12.31% 12.31% 12.83% 12.72%
Tier 1 capital ratio (1) 12.28% 12.31% 12.31% 12.83% 12.72%
Total capital ratio (1) 15.42% 15.56% 15.56% 16.18% 16.08%
Risk-weighted assets (1)$ 19,084,824 $ 18,732,723 $ 18,568,622 $ 17,713,506 $ 17,520,609
Equity to assets ratio 20.50% 20.56% 20.48% 21.31% 21.34%
Tangible common equity ratio (2) 11.75% 11.67% 11.54% 12.19% 12.12%
Book value per share$ 37.55 $ 37.13 $ 36.93 $ 37.29 $ 37.05
Tangible book value per share (2)$ 19.40 $ 18.95 $ 18.71 $ 19.12 $ 18.83
Pacific Western Bank Capital:
Tier 1 leverage ratio (1) 11.41% 11.36% 11.40% 11.54% 11.38%
Common equity tier 1 capital ratio (1) 11.79% 11.79% 11.78% 12.21% 12.13%
Tier 1 capital ratio (1) 11.79% 11.79% 11.78% 12.21% 12.13%
Total capital ratio (1) 12.66% 12.74% 12.72% 13.15% 13.06%
Equity to assets ratio 20.07% 20.11% 20.02% 20.77% 20.82%
Tangible common equity ratio (2) 11.27% 11.16% 11.02% 11.56% 11.51%
(1) Capital information for June 30, 2017 is preliminary.
(2) Non-GAAP measure.

GAAP TO NON-GAAP RECONCILIATION

This press release contains certain non-GAAP financial disclosures for: (1) return on average tangible equity, (2) tangible common equity ratio, and (3) tangible book value per share. The Company uses these 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. In particular, the use of return on average tangible equity, tangible common equity ratio, and tangible book value per share is prevalent among banking regulators, investors and analysts. Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) return on average equity, (2) equity to assets ratio, and (3) book value per share.

The reconciliations for the following GAAP financial measures to the non-GAAP financial measures are presented below: (1) return on average equity to return on average tangible equity, (2) equity to assets ratio to tangible common equity ratio, and (3) book value per share to tangible book value per share.

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 2017 2017 2016 2017 2016
(Dollars in thousands)
Net earnings$ 93,647 $ 78,668 $ 82,168 $ 172,315 $ 172,624
Average stockholders' equity$ 4,545,276 $ 4,503,675 $ 4,483,593 $ 4,524,591 $ 4,461,097
Less: Average intangible assets 2,205,814 2,209,112 2,222,007 2,207,454 2,224,764
Average tangible common equity$ 2,339,462 $ 2,294,563 $ 2,261,586 $ 2,317,137 $ 2,236,333
Return on average equity (1) 8.26% 7.08% 7.37% 7.68% 7.78%
Return on average tangible equity (2) 16.06% 13.90% 14.61% 15.00% 15.52%
(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
Tangible Common Equity Ratio/June 30, March 31, December 31, September 30, June 30,
Tangible Book Value Per Share 2017 2017 2016 2016 2016
(Dollars in thousands, except per share data)
PacWest Bancorp Consolidated:
Stockholders' equity$ 4,559,905 $ 4,508,106 $ 4,479,055 $ 4,542,595 $ 4,513,304
Less: Intangible assets 2,204,186 2,207,251 2,210,315 2,213,491 2,219,557
Tangible common equity$ 2,355,719 $ 2,300,855 $ 2,268,740 $ 2,329,104 $ 2,293,747
Total assets$ 22,246,877 $ 21,927,254 $ 21,869,767 $ 21,315,291 $ 21,147,139
Less: Intangible assets 2,204,186 2,207,251 2,210,315 2,213,491 2,219,557
Tangible assets$ 20,042,691 $ 19,720,003 $ 19,659,452 $ 19,101,800 $ 18,927,582
Equity to assets ratio 20.50% 20.56% 20.48% 21.31% 21.34%
Tangible common equity ratio (1) 11.75% 11.67% 11.54% 12.19% 12.12%
Book value per share$ 37.55 $ 37.13 $ 36.93 $ 37.29 $ 37.05
Tangible book value per share (2)$ 19.40 $ 18.95 $ 18.71 $ 19.12 $ 18.83
Shares outstanding 121,448,321 121,408,133 121,283,669 121,817,524 121,819,849
Pacific Western Bank:
Stockholder's equity$ 4,460,911 $ 4,405,770 $ 4,374,478 $ 4,416,623 $ 4,390,928
Less: Intangible assets 2,204,186 2,207,251 2,210,315 2,213,491 2,219,557
Tangible common equity$ 2,256,725 $ 2,198,519 $ 2,164,163 $ 2,203,132 $ 2,171,371
Total assets$ 22,223,320 $ 21,910,720 $ 21,848,644 $ 21,266,705 $ 21,084,950
Less: Intangible assets 2,204,186 2,207,251 2,210,315 2,213,491 2,219,557
Tangible assets$ 20,019,134 $ 19,703,469 $ 19,638,329 $ 19,053,214 $ 18,865,393
Equity to assets ratio 20.07% 20.11% 20.02% 20.77% 20.82%
Tangible common equity ratio (1) 11.27% 11.16% 11.02% 11.56% 11.51%
(1) Tangible common equity divided by tangible assets.
(2) Tangible common equity divided by shares outstanding.


Contact: Donald D. Destino Executive Vice President Corporate Development and Investor Relations Phone: 310-887-8521

Source:PacWest Bancorp