April 14, 2016 - 7:01 AM EDT
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PacWest Bancorp Announces Results for the First Quarter 2016

Highlights

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

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

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

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

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

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

FINANCIAL HIGHLIGHTS

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

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

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

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

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

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

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

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

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

Noninterest Income

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

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

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

Noninterest Expense

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

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

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

Income Taxes

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

BALANCE SHEET HIGHLIGHTS

Loans and Leases

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

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

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

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

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

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

Credit Exposure Affected by Low Oil Prices

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

Deposits and Client Investment Funds

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

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

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

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

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

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

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

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

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

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

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

CREDIT QUALITY

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

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

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

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

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

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

ABOUT PACWEST BANCORP

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

FORWARD LOOKING STATEMENTS

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

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

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

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

 

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


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


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


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


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


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


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

GAAP TO NON-GAAP RECONCILIATION

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

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

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

 

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


Contact: Matthew P. Wagner
President and CEO
Phone: 310-887-8520

Patrick J. Rusnak
Executive Vice President and CFO
714-989-4705

Source: GlobeNewswire (April 14, 2016 - 7:01 AM EDT)

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