PACW
$37.05
Pacwest Bancorp
$.45
1.23%
Earnings Details
4th Quarter December 2019
Tuesday, January 21, 2020 7:00:00 AM
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Summary

Pacwest Bancorp (PACW) Recent Earnings

Pacwest Bancorp (PACW) reported 4th Quarter December 2019 earnings of $0.98 per share on revenue of $320.8 million. The consensus earnings estimate was $0.88 per share on revenue of $284.2 million. Revenue fell 4.6% compared to the same quarter a year ago.

PacWest Bancorp is bank holding company providing banking product and services. It offers commercial banking services, demand deposits, consumer loans, term loans, home equity loans to individuals, professionals & small to mid-sized businesses.

Results
Reported Earnings
$0.98
Earnings Whisper
-
Consensus Estimate
$0.88
Reported Revenue
$320.8 Mil
Revenue Estimate
$284.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

PacWest Bancorp Announces Results for the Fourth Quarter and Full Year 2019

Fourth Quarter 2019 Highlights

  • Net Earnings of $117.9 Million, or $0.98 Per Diluted Share
  • Loan and Lease Production of $1.0 Billion; $111 Million of Net Loan Growth
  • Core Deposits Represents 84% of Total Deposits
  • Cost of Average Total Deposits Decreased 12 Basis Points from Q3 to 71 Basis Points
  • Net Charge-offs to Average Loans of Two Basis Points

Full Year 2019 Highlights

  • Net Earnings of $468.6 Million, or $3.90 Per Diluted Share
  • Loan and Lease Production of $4.9 Billion; $889 Million of Net Loan Growth or 5%
  • Net Charge-offs to Average Loans of Nine Basis Points; 62% Lower for 2019 Compared to 2018

LOS ANGELES, Jan. 21, 2020 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the fourth quarter of 2019 of $117.9 million, or $0.98 per diluted share, compared to net earnings for the third quarter of 2019 of $110.0 million, or $0.92 per diluted share.  The increase in net earnings in the fourth quarter was primarily due to lower income tax expense, of which $9.1 million related to benefits from changes in state apportionment. Net earnings for the full year 2019 were $468.6 million, or $3.90 per diluted share, compared to net earnings for the full year 2018 of $465.3 million, or $3.72 per diluted share.

Matt Wagner, President and CEO, commented, “We finished the year with strong earnings and continued improvement in our credit quality metrics and credit costs reflected by our fourth quarter net charge-offs ratio of two basis points. Our fourth quarter results produced a return on assets of 1.77% and a return on tangible equity of 19.98%.”

Mr. Wagner continued, “The strong fourth quarter capped a year of profitable growth and continued our solid operating performance resulting in a 2019 return on assets of 1.80% and return on tangible equity of 20.66%. The de-risking strategy initiated in 2017 has proven to be successful as our net charge-offs ratio decreased from 40 basis points in 2017 to nine basis points in 2019, while the provision for credit losses declined by 63% from $59.0 million for non-PCI loans in 2017 to $22.0 million in 2019. Our strategy and these outstanding operating results allowed us to return $444 million to our stockholders in 2019 through stock repurchases and dividends. Our earnings per share for the full year 2019 increased by 5% over the prior year to $3.90.”  

Mr. Wagner added, “In 2019, we successfully completed the rebranding of all of our operating groups under one brand as Pacific Western Bank. As we head into 2020, we will continue to focus on profitable growth and increasing the value of our franchise for our stockholders.”   

FINANCIAL HIGHLIGHTS

 At or For the    At or For the   
 Three Months Ended   Year Ended  
 December 31, September 30, Increase December 31, Increase
Financial Highlights  2019   2019  (Decrease)  2019   2018  (Decrease)
  
 (Dollars in thousands, except per share data)
Net earnings$117,881  $110,026  $7,855  $468,636  $465,339  $3,297 
Diluted earnings per share$0.98  $0.92  $0.06  $3.90  $3.72  $0.18 
Return on average assets 1.77%  1.65%  0.12   1.80%  1.91%  (0.11)
Return on average           
tangible equity (1) 19.98%  19.01%  0.97   20.66%  21.22%  (0.56)
            
Net interest margin ("NIM")          
(tax equivalent) 4.33%  4.46%  (0.13)  4.54%  5.05%  (0.51)
Yield on average loans and           
leases (tax equivalent) 5.67%  5.91%  (0.24)  6.00%  6.22%  (0.22)
Cost of average total           
deposits 0.71%  0.83%  (0.12)  0.77%  0.44%  0.33 
Efficiency ratio 44.8%  42.3%  2.5   42.7%  41.0%  1.7 
            
Total assets$26,770,806  $26,724,627  $46,179  $26,770,806  $25,731,354  $1,039,452 
Loans and leases held           
for investment,           
net of deferred fees$18,846,872  $18,735,543  $111,329  $18,846,872  $17,957,713  $889,159 
Noninterest-bearing           
demand deposits$7,243,298  $7,441,185  $(197,887) $7,243,298  $7,888,915  $(645,617)
Core deposits$16,187,287  $16,471,264  $(283,977) $16,187,287  $16,346,671  $(159,384)
Total deposits$19,233,036  $19,733,203  $(500,167) $19,233,036  $18,870,501  $362,535 
            
As percentage of total           
deposits:           
Noninterest-bearing           
demand deposits 38%  38%  -   38%  42%  (4)
Core deposits 84%  84%  -   84%  87%  (3)
            
Equity to assets ratio 18.51%  18.41%  0.10   18.51%  18.75%  (0.24)
Tangible common equity           
ratio (1) 9.79%  9.65%  0.14   9.79%  9.60%  0.19 
Book value per share$41.36  $41.06  $0.30  $41.36  $39.17  $2.19 
Tangible book value per           
share (1)$19.77  $19.43  $0.34  $19.77  $18.02  $1.75 
            
(1) Non-GAAP measure.           

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $5.6 million to $246.6 million for the fourth quarter of 2019 compared to $252.2 million for the third quarter of 2019 due mainly to a lower yield on average loans and leases and a lower balance of average loans and leases. The tax equivalent yield on average loans and leases was 5.67% for the fourth quarter of 2019 compared to 5.91% for the third quarter of 2019. The decrease in the yield on average loans and leases was due principally to the repricing of variable-rate loans causing lower coupon interest in addition to lower loan fee income in the fourth quarter compared to the third quarter, offset partially by higher loan prepayment fees. The prepayment fees added seven basis points to the fourth quarter yield on average loans and leases and five basis points to the third quarter yield on average loans and leases.

The tax equivalent NIM was 4.33% for the fourth quarter of 2019 compared to 4.46% for the third quarter of 2019. The decrease in the NIM was due mainly to the repricing of variable-rate loans causing lower coupon interest and lower loan fee income, offset partially by the lower cost of interest-bearing liabilities.            

The cost of average total deposits decreased to 0.71% for the fourth quarter of 2019 from 0.83% for the third quarter of 2019 due mainly to a lower cost of average interest-bearing deposits, offset partially by a lower average balance of noninterest-bearing deposits. Our cost of average total deposits has declined from a 2019 peak of 86 basis points in the month of July to a 2019 low of 66 basis points in the month of December. The lower cost of average interest-bearing deposits reflected actions taken to reduce deposit rates in light of the fed funds target rate cuts during the second half of 2019.

Provision for Credit Losses

The following table presents details of the provision for credit losses for the periods indicated:

 Three Months Ended  
 December 31, September 30, Increase
Provision for Credit Losses 2019   2019  (Decrease)
          
  
 (In thousands)
Addition to allowance for loan and lease losses$1,000  $8,000  $(7,000)
Addition (reduction) to reserve for unfunded     
loan commitments 2,000   (1,000)  3,000 
Total provision for credit losses$3,000  $7,000  $(4,000)

The increase in the provision for unfunded commitments was the result of significant growth in unfunded construction loan commitments in the fourth quarter of 2019.

Noninterest Income

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

 Three Months Ended  
 December 31, September 30, Increase
Noninterest Income 2019   2019  (Decrease)
  
 (In thousands)
Service charges on deposit accounts$3,611  $3,525  $86 
Other commissions and fees 10,170   10,855   (685)
Leased equipment income 10,648   9,615   1,033 
Gain on sale of loans and leases 23   765   (742)
Gain on sale of securities 184   908   (724)
Other income:     
Dividends and (losses) gains on equity investments (794)  14   (808)
Warrant income 1,240   3,936   (2,696)
Other 2,094   3,811   (1,717)
Total noninterest income$27,176  $33,429  $(6,253)

Noninterest income decreased by $6.3 million to $27.2 million for the fourth quarter of 2019 compared to $33.4 million for the third quarter of 2019 due primarily to a $2.7 million decrease in warrant income, a $1.7 million decrease in other income, a $0.8 million decrease in dividends and gains on equity investments, a $0.7 million decrease in gain on sale of loans and leases, and a $0.7 million decrease in gain on sale of securities, offset partially by a $1.0 million increase in leased equipment income.  The decrease in warrant income was due to lower gains resulting from exercised warrants. The decrease in other income was due mainly to lower gains from lease terminations. The decreases in gain on sale of loans and leases and gain on sale of securities were attributable to a lower level of sales activity in the fourth quarter of 2019 as compared to the third quarter of 2019. The increase in leased equipment income was due primarily to a higher average balance of leased equipment in the fourth quarter compared to the third quarter.

Noninterest Expense

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

 Three Months Ended  
 December 31, September 30, Increase
Noninterest Expense 2019   2019  (Decrease)
  
 (In thousands)
Compensation$74,637  $71,424  $3,213 
Occupancy 14,541   14,089   452 
Data processing 6,770   7,044   (274)
Other professional services 4,261   4,400   (139)
Insurance and assessments 4,168   4,100   68 
Intangible asset amortization 4,153   4,833   (680)
Leased equipment depreciation 6,856   5,951   905 
Foreclosed assets (income) expense, net (3,446)  8   (3,454)
Acquisition, integration and reorganization costs (269)  -   (269)
Customer related expense 3,952   3,539   413 
Loan expense 2,967   3,628   (661)
Other 5,138   7,793   (2,655)
Total noninterest expense$123,728  $126,809  $(3,081)
      

Noninterest expense decreased by $3.1 million to $123.7 million for the fourth quarter of 2019 compared to $126.8 million for the third quarter of 2019 attributable primarily to a $3.5 million increase in foreclosed assets income and a $2.7 million decrease in other expense, offset partially by a $3.2 million increase in compensation expense. Foreclosed assets income increased due to a $3.3 million gain on the sale of a repossessed asset. Other expense decreased due primarily to a $1.7 million reversal of previously accrued merger costs and a $1.1 million credit adjustment to franchise tax expense for refunds related to state apportionment changes. Compensation expense increased due mainly to higher bonus expense of $2.9 million.  

Income Taxes

The overall effective income tax rate was 19.8% for the fourth quarter of 2019 and 27.5% for the third quarter of 2019. The fourth quarter 2019 effective tax rate was lower due primarily to $9.1 million of benefits related to changes in state apportionment net of the federal tax effect. The effective tax rate for the year ended December 31, 2019 was 26.0% and for the full year 2020 is currently estimated to be in the range of 26-28%.   

BALANCE SHEET HIGHLIGHTS

Loans and Leases

The following table presents roll forwards of loans and leases held for investment, net of deferred fees, for the periods indicated:

 Three Months Ended Year Ended
Roll Forward of Loans and Leases HeldDecember 31,  September 30,  December 31,
for Investment, Net of Deferred Fees (1) 2019   2019   2019 
  
 (Dollars in thousands)
Balance, beginning of period$18,735,543  $18,472,852  $17,957,713 
Additions:     
Production 1,021,334   1,230,817   4,863,288 
Disbursements 1,317,389   1,288,111   5,092,219 
Total production and disbursements 2,338,723   2,518,928   9,955,507 
Reductions:     
Payoffs (816,134)  (1,390,883)  (4,669,530)
Paydowns (1,406,475)  (837,551)  (4,262,977)
Total payoffs and paydowns (2,222,609)  (2,228,434)  (8,932,507)
Sales (43)  (21,302)  (76,335)
Transfers to foreclosed assets (83)  -   (120)
Charge-offs (4,659)  (6,501)  (32,262)
Transfers to loans held for sale -   -   (25,124)
Total reductions (2,227,394)  (2,256,237)  (9,066,348)
Net increase 111,329   262,691   889,159 
Balance, end of period$18,846,872  $18,735,543  $18,846,872 
      
Weighted average rate on production (2) 4.73%  5.28%  5.06%
      
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.  
(2) The weighted average rate on production presents contractual rates on a tax equivalent basis  
and excludes amortized fees. Amortized fees added approximately 22 basis points to loan  
yields in 2019.     

Loans and leases held for investment, net of deferred fees, increased by $111.3 million, or 2.4% annualized, in the fourth quarter of 2019 to $18.8 billion at December 31, 2019.  The net loan growth in the fourth quarter was primarily from the income producing and other residential real estate mortgage loan portfolio class and the residential real estate construction loan portfolio class. For the year ended December 31, 2019, loans and leases held for investment, net of deferred fees, increased by $889.2 million or 5.0%.

The following table presents the composition of loans and leases held for investment by loan portfolio segment and class, net of deferred fees, as of the dates indicated:

            
 December 31, 2019 September 30, 2019 December 31, 2018
  % of   % of   % of
Loan and Lease Portfolio AmountTotal AmountTotal AmountTotal
  
 (In thousands)
Real estate mortgage:           
Commercial$4,202,68722% $4,300,56623% $4,824,29827%
Income producing and other           
residential3,770,06020% 3,596,35819% 3,093,84317%
Total real estate mortgage7,972,74742% 7,896,92442% 7,918,14144%
Real estate construction and land:           
Commercial1,082,3686% 1,009,3626% 912,5835%
Residential1,655,4349% 1,542,1128% 1,321,0738%
Total real estate construction           
and land2,737,80215% 2,551,47414% 2,233,65613%
Total real estate10,710,54957% 10,448,39856% 10,151,79757%
Commercial:           
Asset-based3,748,40720% 3,810,74120% 3,305,42118%
Venture capital2,179,42212% 2,209,64912% 2,038,74811%
Other commercial1,767,6679% 1,858,16710% 2,060,42612%
Total commercial7,695,49641% 7,878,55742% 7,404,59541%
Consumer440,8272% 408,5882% 401,3212%
Total loans and leases held for           
investment, net of deferred fees$18,846,872100% $18,735,543100% $17,957,713100%
            
Total unfunded loan commitments$8,183,158   $7,790,796   $7,528,248  

Allowance for Credit Losses

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

 Three Months Ended December 31, 2019
 Allowance for Reserve for  Total
Allowance for Credit Loan and  Unfunded Loan Allowance for
Losses RollforwardLease Losses Commitments Credit Losses
  
 (In thousands)
Beginning balance$138,552  $33,861  $172,413 
Charge-offs (4,659)  -   (4,659)
Recoveries 3,892   -   3,892 
Net charge-offs (767)  -   (767)
Provision 1,000   2,000   3,000 
Ending balance$138,785  $35,861  $174,646 
      
      
 Three Months Ended September 30, 2019
 Allowance for Reserve for  Total
Allowance for Credit Loan and  Unfunded Loan Allowance for
Losses RollforwardLease Losses Commitments Credit Losses
  
 (In thousands)
Beginning balance$135,037  $34,861  $169,898 
Charge-offs (6,501)  -   (6,501)
Recoveries 2,016   -   2,016 
Net charge-offs (4,485)  -   (4,485)
Provision 8,000   (1,000)  7,000 
Ending balance$138,552  $33,861  $172,413 
      
      
Allowance for Credit Year Ended December 31,   
Losses Rollforward 2019   2018   
    
 (In thousands)  
Beginning balance$169,333  $168,091   
Charge-offs (32,262)  (59,042)  
Recoveries 15,575   15,284   
Net charge-offs (16,687)  (43,758)  
Provision 22,000   45,000   
Ending balance$174,646  $169,333   

The allowance for credit losses as a percentage of loans and leases held for investment was 0.93% at December 31, 2019 and 0.92% at September 30, 2019.

Gross charge-offs for the fourth quarter of 2019 were $4.7 million and included $3.2 million for venture capital loans and $1.0 million for other commercial loans compared to gross charge-offs for the third quarter of 2019 of $6.5 million that included $4.4 million for venture capital loans and $1.7 million for other commercial loans.

Recoveries for the fourth quarter of 2019 were $3.9 million and included $1.8 million for other commercial loans, $0.9 million for asset-based loans, and $0.6 million for venture capital loans compared to recoveries for the third quarter of 2019 of $2.0 million that included $1.2 million for other commercial loans and $0.4 million for venture capital loans.

For the fourth quarter of 2019 and third quarter of 2019, annualized net charge-offs to average loans and leases were 0.02% and 0.10%.

For the full year 2019, net charge-offs were $16.7 million, of which $10.9 million related to one asset-based loan, while $1.2 million related to venture capital loans, a decrease from the full year 2018 net charge-offs of $43.8 million that included $24.2 million for venture capital loans.  This resulted in a decrease in net charge-offs to average loans for the venture capital portfolio from 1.17% in 2018 to 0.06% in 2019.   

For the full years 2019 and 2018, net charge-offs to average loans and leases declined to 0.09% from 0.26%.

Deposits and Client Investment Funds

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

            
 December 31, 2019
 September 30, 2019
 December 31, 2018
  % of   % of   % of
Deposit CompositionAmountTotal AmountTotal AmountTotal
  
 (Dollars in thousands)
Noninterest-bearing demand$7,243,29838% $7,441,18538% $7,888,91542%
Interest checking3,753,97819% 3,645,66018% 2,842,46315%
Money market4,690,42024% 4,870,34425% 5,043,87127%
Savings499,5913% 514,0753% 571,4223%
Total core deposits16,187,28784% 16,471,26484% 16,346,67187%
Non-core non-maturity deposits496,4073% 479,7322% 518,1923%
Total non-maturity deposits16,683,69487% 16,950,99686% 16,864,86390%
Time deposits $250,000 and under2,065,73311% 2,282,97612% 1,593,4538%
Time deposits over $250,000483,6092% 499,2312% 412,1852%
Total time deposits2,549,34213% 2,782,20714% 2,005,63810%
Total deposits$19,233,036100% $19,733,203100% $18,870,501100%

At December 31, 2019, core deposits totaled $16.2 billion, or 84% of total deposits, including $7.2 billion of noninterest-bearing demand deposits, or 38% of total deposits. For the year ended December 31, 2019, total deposits increased by $362.5 million, or 2%, while core deposits decreased by $159.4 million, or 1%. 

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at December 31, 2019 were $1.5 billion, of which $1.2 billion was managed by PWAM.

CREDIT QUALITY  

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

 December 31, September 30, Increase
Credit Quality Metrics  2019   2019  (Decrease)
  
 (Dollars in thousands)
NPAs and Performing TDRs: 
Nonaccrual loans and leases held for investment (1)$92,353  $99,113  $(6,760)
Accruing loans contractually past due 90 days or more -   -   - 
Foreclosed assets, net 440   1,366   (926)
  Total nonperforming assets ("NPAs")$92,793  $100,479  $(7,686)
  
Nonaccrual loans and leases held for investment     
to loans and leases held for investment 0.49%  0.53%  
Nonperforming assets to loans and leases     
held for investment and foreclosed assets 0.49%  0.54%  
  
Nonaccrual loans and leases held for investment (1)$92,353  $99,113  $(6,760)
Performing TDRs held for investment 12,257   16,329   (4,072)
Total impaired loans and leases$104,610  $115,442  $(10,832)
      
Loan and Lease Credit Risk Ratings:     
Pass$18,348,004  $18,279,011  $68,993 
Special mention 322,956   267,925   55,031 
Classified 175,912   188,607   (12,695)
Total loans and leases held for investment,     
net of deferred fees$18,846,872  $18,735,543  $111,329 
      
Classified loans and leases held for investment     
to loans and leases held for investment 0.93%  1.01%  
      
Allowance for Credit Losses:     
Allowance for credit losses$174,646  $172,413  $2,233 
Provision for credit losses (for the quarter)$3,000  $7,000  $(4,000)
Net charge-offs (for the quarter)$767  $4,485  $(3,718)
Net charge-offs to average loans and leases     
(for the quarter) 0.02%  0.10%  
Allowance for credit losses to loans and leases     
held for investment 0.93%  0.92%  
Allowance for credit losses to nonaccrual loans     
and leases held for investment 189.1%  174.0%  
      
(1) Nonaccrual loans include guaranteed amounts of $17.5 million at December 31, 2019 and $15.4 million
at September 30, 2019.     

Nonaccrual, classified, and special mention loans and leases fluctuate from period to period as a result of loan repayments and our ongoing active portfolio monitoring.

During the fourth quarter of 2019, nonaccrual loans and leases decreased by $6.8 million, while classified loans and leases decreased by $12.7 million and special mention loans and leases increased by $55.0 million. There were no individually significant loan movements in the nonaccrual and classified loans and leases categories. The increase in special mention loans and leases in the fourth quarter was attributable to the downgrade of two security monitoring loans for $77.3 million, offset partially by the payoff of one security monitoring loan for $14.9 million and the net decrease in all other loans and leases of $7.4 million

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

          
 Nonaccrual Loans and Leases  Accruing and
 December 31, 2019 September 30, 2019 30-89 Days Past Due
  % of   % of  December 31, September 30,
  Loan   Loan   2019  2019
 AmountCategory AmountCategory Amount Amount
  
 (Dollars in thousands)
Real estate mortgage:         
Commercial$18,3460.4% $19,5150.5% $1,735 $-
Income producing and other         
residential 2,4780.1%  2,8680.1%  2,094  3,750
Total real estate mortgage 20,8240.3%  22,3830.3%  3,829  3,750
Real estate construction and land:        
Commercial 3640.0%  3770.0%  -  -
Residential -0.0%  -0.0%  1,429  2,622
Total real estate         
construction and land 3640.0%  3770.0%  1,429  2,622
Commercial:         
Asset-based 30,1620.8%  33,0150.9%  19  48
Venture capital 12,9160.6%  20,1310.9%  -  -
Other commercial 27,5941.6%  22,5541.2%  2,258  4,068
Total commercial 70,6720.9%  75,7001.0%  2,277  4,116
Consumer 4930.1%  6530.2%  1,006  795
Total held for investment$92,3530.5% $99,1130.5% $8,541 $11,283
          

STOCK REPURCHASE PROGRAM

During the fourth quarter of 2019, there were no stock repurchases. At December 31, 2019, the remaining amount that could be used to repurchase shares under the $225 million Stock Repurchase Program was $124.7 million.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $26 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located in California, one branch located in Durham, North Carolina, and one branch located in Denver, Colorado. Our Community Banking group provides lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices and Denver, Colorado branch office. We offer additional products and services through our National Lending and Venture Banking groups. National Lending provides asset-based, equipment, and real estate loans and treasury management services to established middle-market businesses on a national basis. Venture Banking offers a comprehensive suite of financial services focused on entrepreneurial or venture-backed businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States.  For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.

FORWARD LOOKING STATEMENTS

This communication contains certain forward-looking information about PacWest that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the Securities and Exchange Commission.

We are under no obligation (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    
      
 December 31, September 30, December 31,
  2019   2019   2018 
  
 (Dollars in thousands, except per share data)
ASSETS:     
Cash and due from banks$172,585  $252,596  $175,830 
Interest-earning deposits in financial institutions 465,039   483,405   209,937 
Total cash and cash equivalents  637,624   736,001   385,767 
      
Securities available-for-sale, at estimated fair value 3,797,187   3,817,348   4,009,431 
Federal Home Loan Bank stock, at cost 40,924   26,865   32,103 
Total investment securities 3,838,111   3,844,213   4,041,534 
      
Loans held for sale -   -   - 
      
Gross loans and leases held for investment 18,910,740   18,796,011   18,026,365 
Deferred fees, net (63,868)  (60,468)  (68,652)
Total loans and leases held for investment,     
net of deferred fees 18,846,872   18,735,543   17,957,713 
Allowance for loan and lease losses (138,785)  (138,552)  (132,472)
Total loans and leases held for investment, net 18,708,087   18,596,991   17,825,241 
      
Equipment leased to others under operating leases 324,084   295,854   292,677 
Premises and equipment, net 38,585   37,926   34,661 
Foreclosed assets, net 440   1,366   5,299 
Goodwill 2,548,670   2,548,670   2,548,670 
Core deposit and customer relationship intangibles, net 38,394   42,547   57,120 
Other assets 636,811   621,059   540,385 
Total assets$26,770,806  $26,724,627  $25,731,354 
      
LIABILITIES:     
Noninterest-bearing deposits$7,243,298  $7,441,185  $7,888,915 
Interest-bearing deposits 11,989,738   12,292,018   10,981,586 
Total deposits 19,233,036   19,733,203   18,870,501 
Borrowings 1,759,008   1,253,031   1,371,114 
Subordinated debentures 458,209   456,145   453,846 
Accrued interest payable and other liabilities 365,856   362,140   210,305 
Total liabilities 21,816,109   21,804,519   20,905,766 
STOCKHOLDERS' EQUITY (1) 4,954,697   4,920,108   4,825,588 
Total liabilities and stockholders’ equity$26,770,806  $26,724,627  $25,731,354 
      
Book value per share$41.36  $41.06  $39.17 
Tangible book value per share (2)$19.77  $19.43  $18.02 
Shares outstanding 119,781,605   119,831,192   123,189,833 
      
(1) Includes net unrealized gain (loss) on securities     
available-for-sale, net$78,658  $95,887  $(6,075)
(2) Non-GAAP measure.     
      


            
PACWEST BANCORP AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS 
               
 Three Months Ended
 Year Ended
 December 31, September 30, December 31, December 31,
 2019 2019 2018 2019 2018
    
Interest income:(Dollars in thousands, except per share data) 
Loans and leases$263,402  $275,978  $272,522  $1,097,845  $1,047,969 
Investment securities28,135  28,806  29,690  115,569  111,619 
Deposits in financial institutions2,056  2,424  527  6,479  2,082 
Total interest income293,593  307,208  302,739  1,219,893  1,161,670 
               
Interest expense:              
Deposits34,802  40,703  28,834  148,460  80,140 
Borrowings5,189  6,852  4,602  26,961  11,985 
Subordinated debentures6,983  7,417  7,538  29,843  28,631 
Total interest expense46,974  54,972  40,974  205,264  120,756 
               
Net interest income246,619  252,236  261,765  1,014,629  1,040,914 
Provision for credit losses3,000  7,000  12,000  22,000  45,000 
Net interest income after              
provision for credit losses243,619  245,236  249,765  992,629  995,914 
               
Noninterest income:              
Service charges on deposit accounts3,611  3,525  4,091  14,637  16,509 
Other commissions and fees10,170  10,855  11,114  43,623  45,543 
Leased equipment income10,648  9,615  9,384  38,727  37,881 
Gain on sale of loans and leases23  765  -  1,114  4,675 
Gain on sale of securities184  908  786  25,445  8,176 
Other income2,540  7,761  8,151  19,016  35,851 
Total noninterest income27,176  33,429  33,526  142,562  148,635 
               
Noninterest expense:              
Compensation74,637  71,424  69,299  285,862  282,568 
Occupancy14,541  14,089  13,356  57,407  53,223 
Data processing6,770  7,044  6,930  27,556  27,225 
Other professional services4,261  4,400  6,198  17,803  21,952 
Insurance and assessments4,168  4,100  4,202  16,404  20,705 
Intangible asset amortization4,153  4,833  4,986  18,726  22,506 
Leased equipment depreciation6,856  5,951  5,758  24,016  21,371 
Foreclosed assets (income) expense, net(3,446) 8  (311) (3,555) (751)
Acquisition, integration and              
reorganization costs(269) -  970  349  1,770 
Customer related expense3,952  3,539  2,933  13,839  10,353 
Loan expense2,967  3,628  2,991  12,931  10,569 
Other expense5,138  7,793  11,923  30,913  39,741 
Total noninterest expense123,728  126,809  129,235  502,251  511,232 
               
Earnings before income taxes147,067  151,856  154,056  632,940  633,317 
Income tax expense29,186  41,830  39,015  164,304  167,978 
Net earnings $117,881  $110,026  $115,041  $468,636  $465,339 
               
Basic and diluted earnings per share$0.98  $0.92  $0.93  $3.90  $3.72 
Dividends declared and paid per share$0.60  $0.60  $0.60  $2.40  $2.30 
               


PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS        
          
 Three Months Ended Year Ended
 December 31, September 30, December 31, December 31,
  2019   2019   2018   2019   2018 
  
 (In thousands, except per share data)
Basic Earnings Per Share:         
Net earnings$117,881  $110,026  $115,041  $468,636  $465,339 
Less: earnings allocated to unvested         
restricted stock (1) (1,458)  (1,369)  (1,219)  (5,182)  (5,119)
Net earnings allocated to common         
shares$116,423  $108,657  $113,822  $463,454  $460,220 
          
Weighted-average basic shares and         
unvested restricted stock outstanding 119,804   119,831   123,238   120,468   125,100 
Less: weighted-average unvested         
restricted stock outstanding (1,566)  (1,622)  (1,426)  (1,502)  (1,460)
Weighted-average basic shares         
outstanding 118,238   118,209   121,812   118,966   123,640 
          
Basic earnings per share$0.98  $0.92  $0.93  $3.90  $3.72 
          
Diluted Earnings Per Share:         
Net earnings allocated to common         
shares$116,423  $108,657  $113,822  $463,454  $460,220 
          
Weighted-average diluted shares         
outstanding 118,238   118,209   121,812   118,966   123,640 
          
Diluted earnings per share$0.98  $0.92  $0.93  $3.90  $3.72 
          
  
 
(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
 December 31, 2019 September 30, 2019 December 31, 2018
  InterestAverage  InterestAverage  InterestAverage
 Average Income/Yield/ Average Income/Yield/ Average Income/Yield/
 BalanceExpenseCost BalanceExpenseCost BalanceExpenseCost
  
 (Dollars in thousands)
Assets:           
Loans and leases (1)(2)$18,470,583$263,7835.67% $18,539,281$276,3095.91% $17,275,343$272,8246.27%
Investment securities (3) 3,811,216 29,5093.07%  3,809,243 32,2133.36%  3,899,520 30,9923.15%
Deposits in financial           
institutions 498,068 2,0561.64%  445,152 2,4242.16%  94,500 5272.21%
Total interest-earning           
assets (1) 22,779,867 295,3485.14%  22,793,676 310,9465.41%  21,269,363 304,3435.68%
Other assets 3,600,872    3,612,927    3,515,099  
Total assets$26,380,739   $26,406,603   $24,784,462  
            
Liabilities and            
Stockholders' Equity:       
Interest checking$3,731,696 10,0311.07% $3,598,698 11,9421.32% $2,785,702 7,9321.13%
Money market 5,117,553 12,0630.94%  5,121,856 14,8071.15%  5,107,468 13,6211.06%
Savings 509,497 2040.16%  515,649 2180.17%  597,259 2730.18%
Time 2,744,156 12,5041.81%  2,795,573 13,7361.95%  1,932,332 7,0081.44%
Total interest-bearing           
deposits 12,102,902 34,8021.14%  12,031,776 40,7031.34%  10,422,761 28,8341.10%
Borrowings 1,179,220 5,1891.75%  1,181,313 6,8522.30%  764,039 4,6022.39%
Subordinated debentures 456,997 6,9836.06%  456,011 7,4176.45%  452,998 7,5386.60%
Total interest-bearing           
liabilities 13,739,119 46,9741.36%  13,669,100 54,9721.60%  11,639,798 40,9741.40%
Noninterest-bearing           
demand deposits 7,338,888    7,487,555    8,163,699  
Other liabilities 372,550    359,202    222,564  
Total liabilities 21,450,557    21,515,857    20,026,061  
Stockholders' equity 4,930,182    4,890,746    4,758,401  
Total liabilities and           
stockholders' equity$26,380,739   $26,406,603   $24,784,462  
Net interest income (1) $248,374   $255,974   $263,369 
Net interest spread (1)  3.78%   3.81%   4.28%
Net interest margin (1)  4.33%   4.46%   4.91%
            
Total deposits (4)$19,441,790$34,8020.71% $19,519,331$40,7030.83% $18,586,460$28,8340.62%
            
?(1) Tax equivalent. 
?(2) Includes discount accretion on acquired loans of $3.0 million, $2.6 million, and $6.9 million for the three months ended
December 31, 2019, September 30, 2019, and December 31, 2018, respectively.
(3) Includes tax-equivalent adjustments of $1.4 million, $3.4 million, and $1.3 million for the three months ended  
December 31, 2019, September 30, 2019, and December 31, 2018 related to tax-exempt income on 
investment securities. The federal statutory tax rate utilized was 21%.
(4) 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 total deposits divided by average total 
deposits.
            


 
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER BALANCE SHEET
          
 December 31, September 30, June 30, March 31, December 31,
  2019   2019   2019   2019   2018 
  
 (Dollars in thousands, except per share data)
ASSETS:         
Cash and due from banks$172,585  $252,596  $185,075  $224,758  $175,830 
Interest-earning deposits in financial         
institutions 465,039   483,405   422,663   332,124   209,937 
Total cash and cash equivalents  637,624   736,001   607,738   556,882   385,767 
          
Securities available-for-sale 3,797,187   3,817,348   3,807,244   3,994,708   4,009,431 
Federal Home Loan Bank stock 40,924   26,865   43,146   29,430   32,103 
  Total investment securities 3,838,111   3,844,213   3,850,390   4,024,138   4,041,534 
          
Loans held for sale -   -   -   25,124   - 
          
Gross loans and leases held for investment 18,910,740   18,796,011   18,532,740   18,371,295   18,026,365 
Deferred fees, net (63,868)  (60,468)  (59,888)  (63,598)  (68,652)
Total loans and leases held for         
investment, net of deferred fees 18,846,872   18,735,543   18,472,852   18,307,697   17,957,713 
Allowance for loan and lease losses (138,785)  (138,552)  (135,037)  (136,281)  (132,472)
Total loans and leases held for         
investment, net 18,708,087   18,596,991   18,337,815   18,171,416   17,825,241 
          
Equipment leased to others under         
operating leases 324,084   295,854   300,668   293,853 - 292,677 
Premises and equipment, net 38,585   37,926   38,162   37,783   34,661 
Foreclosed assets, net 440   1,366   1,472   3,291   5,299 
Goodwill 2,548,670   2,548,670   2,548,670   2,548,670   2,548,670 
Core deposit and customer relationship         
intangibles, net 38,394   42,547   47,380   52,250   57,120 
Other assets 636,811   621,059   612,119   610,731   540,385 
Total assets$26,770,806  $26,724,627  $26,344,414  $26,324,138  $25,731,354 
          
LIABILITIES:         
Noninterest-bearing deposits$7,243,298  $7,441,185  $7,299,213  $7,712,409  $7,888,915 
Interest-bearing deposits 11,989,738   12,292,018   11,506,543   11,573,518   10,981,586 
Total deposits 19,233,036   19,733,203   18,805,756   19,285,927   18,870,501 
Borrowings 1,759,008   1,253,031   1,913,059   1,481,087   1,371,114 
Subordinated debentures 458,209   456,145   456,112   454,458   453,846 
Accrued interest payable and other         
liabilities 365,856   362,140   317,477   311,684   210,305 
Total liabilities 21,816,109   21,804,519   21,492,404   21,533,156   20,905,766 
STOCKHOLDERS' EQUITY (1) 4,954,697   4,920,108   4,852,010   4,790,982   4,825,588 
Total liabilities and stockholders’          
equity$26,770,806  $26,724,627  $26,344,414  $26,324,138  $25,731,354 
          
Book value per share$41.36  $41.06  $40.49  $39.86  $39.17 
Tangible book value per share (2)$19.77  $19.43  $18.83  $18.22  $18.02 
Shares outstanding 119,781,605   119,831,192   119,829,104   120,201,149   123,189,833 
          
         
(1) Includes net unrealized gain (loss) on        
securities available-for-sale, net$78,658  $95,887  $73,066  $37,258  $(6,075)
(2) Non-GAAP measure.         
          


         
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER STATEMENT OF EARNINGS
 
 Three Months Ended
 December 31, September 30, June 30, March 31, December 31,
  2019   2019   2019   2019   2018 
  
 (Dollars in thousands, except per share data)
Interest income:         
Loans and leases$263,402  $275,978  $284,236  $274,229  $272,522 
Investment securities 28,135   28,806   28,948   29,680   29,690 
Deposits in financial institutions 2,056   2,424   1,349   650   527 
Total interest income 293,593   307,208   314,533   304,559   302,739 
          
Interest expense:         
Deposits 34,802   40,703   38,720   34,235   28,834 
Borrowings 5,189   6,852   7,210   7,710   4,602 
Subordinated debentures 6,983   7,417   7,705   7,738   7,538 
Total interest expense 46,974   54,972   53,635   49,683   40,974 
          
Net interest income 246,619   252,236   260,898   254,876   261,765 
Provision for credit losses 3,000   7,000   8,000   4,000   12,000 
Net interest income after         
provision for credit losses 243,619   245,236   252,898   250,876   249,765 
          
Noninterest income:         
Service charges on deposit accounts 3,611   3,525   3,771   3,730   4,091 
Other commissions and fees 10,170   10,855   11,590   11,008   11,114 
Leased equipment income 10,648   9,615   9,182   9,282   9,384 
Gain on sale of loans and leases 23   765   326   -   - 
Gain on sale of securities 184   908   22,192   2,161   786 
Other income 2,540   7,761   3,832   4,883   8,151 
Total noninterest income 27,176   33,429   50,893   31,064   33,526 
          
Noninterest expense:         
Compensation 74,637   71,424   68,956   70,845   69,299 
Occupancy 14,541   14,089   14,457   14,320   13,356 
Data processing 6,770   7,044   6,817   6,925   6,930 
Other professional services 4,261   4,400   4,629   4,513   6,198 
Insurance and assessments 4,168   4,100   4,098   4,038   4,202 
Intangible asset amortization 4,153   4,833   4,870   4,870   4,986 
Leased equipment depreciation 6,856   5,951   5,558   5,651   5,758 
Foreclosed assets (income) expense, net (3,446)  8   (146)  29   (311)
Acquisition, integration and         
reorganization costs (269)  -   -   618   970 
Customer related expense 3,952   3,539   3,405   2,943   2,933 
Loan expense 2,967   3,628   3,451   2,885   2,991 
Other expense 5,138   7,793   9,332   8,650   11,923 
Total noninterest expense 123,728   126,809   125,427   126,287   129,235 
          
Earnings before income taxes 147,067   151,856   178,364   155,653   154,056 
Income tax expense 29,186   41,830   50,239   43,049   39,015 
Net earnings $117,881  $110,026  $128,125  $112,604  $115,041 
          
Basic and diluted earnings per share$0.98  $0.92  $1.07  $0.92  $0.93 
Dividends declared and paid per share$0.60  $0.60  $0.60  $0.60  $0.60 
          



         
PACWEST BANCORP AND SUBSIDIARIES        
FIVE QUARTER SELECTED FINANCIAL DATA        
          
 At or For the Three Months Ended
 December 31, September 30, June 30, March 31, December 31,
  2019   2019   2019   2019   2018 
  
 (Dollars in thousands)
Performance Ratios:         
Return on average assets (1) 1.77%  1.65%  1.99%  1.77%  1.84%
Return on average equity (1) 9.49%  8.93%  10.66%  9.48%  9.59%
Return on average tangible equity (1)(2) 19.98%  19.01%  23.15%  20.64%  21.23%
Efficiency ratio 44.8%  42.3%  41.6%  42.4%  41.7%
Noninterest expense as a percentage         
of average assets (1) 1.86%  1.91%  1.95%  1.99%  2.07%
          
Average Yields/Costs (1):         
Yield on:         
Average loans and leases (3) 5.67%  5.91%  6.26%  6.16%  6.27%
Average interest-earning assets (3) 5.14%  5.41%  5.68%  5.60%  5.68%
Cost of:         
Average interest-bearing deposits 1.14%  1.34%  1.35%  1.24%  1.10%
Average total deposits 0.71%  0.83%  0.81%  0.73%  0.62%
Average interest-bearing liabilities 1.36%  1.60%  1.64%  1.57%  1.40%
Net interest spread (3) 3.78%  3.81%  4.04%  4.03%  4.28%
Net interest margin (3) 4.33%  4.46%  4.72%  4.69%  4.91%
          
Average Balances:         
Assets:         
Loans and leases, net of deferred fees$18,470,583  $18,539,281  $18,239,690  $18,064,230  $17,275,343 
Interest-earning assets 22,779,867   22,793,676   22,258,828   22,144,711   21,269,363 
Total assets 26,380,739   26,406,603   25,849,189   25,775,949   24,784,462 
Liabilities:         
Noninterest-bearing deposits 7,338,888   7,487,555   7,544,027   7,783,652   8,163,699 
Interest-bearing deposits 12,102,902   12,031,776   11,545,785   11,156,773   10,422,761 
Total deposits 19,441,790   19,519,331   19,089,812   18,940,425   18,586,460 
Borrowings 1,179,220   1,181,313   1,142,223   1,218,319   764,039 
Subordinated debentures 456,997   456,011   454,901   454,203   452,998 
Interest-bearing liabilities 13,739,119   13,669,100   13,142,909   12,829,295   11,639,798 
Stockholders' equity 4,930,182   4,890,746   4,818,889   4,815,965   4,758,401 
          
(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
 December 31, September 30, June 30, March 31, December 31,
  2019   2019   2019   2019   2018 
  
 (Dollars in thousands)
Credit Quality Ratios:         
Nonaccrual loans and leases held for         
investment to loans and leases         
held for investment 0.49%  0.53%  0.44%  0.48%  0.44%
Nonperforming assets to loans and         
leases held for investment and         
foreclosed assets 0.49%  0.54%  0.45%  0.50%  0.47%
Classified loans and leases held for         
investment to loans and leases         
held for investment 0.93%  1.01%  1.03%  1.04%  1.32%
Provision for credit losses (for the         
quarter) to average loans and leases         
held for investment (annualized) 0.06%  0.15%  0.18%  0.09%  0.28%
Net charge-offs (for the quarter) to         
average loans and leases held         
for investment (annualized) 0.02%  0.10%  0.25%  0.00%  0.46%
Trailing 12 months net charge-offs         
to average loans and leases         
held for investment 0.09%  0.20%  0.18%  0.22%  0.26%
Allowance for credit losses to loans         
and leases held for investment 0.93%  0.92%  0.92%  0.95%  0.94%
Allowance for credit losses to         
nonaccrual loans and leases         
held for investment 189.1%  174.0%  209.1%  195.6%  213.5%
          
PacWest Bancorp Consolidated          
Capital:         
Tier 1 leverage ratio (1) 9.74%  9.50%  9.49%  9.38%  10.13%
Common equity tier 1 capital ratio (1) 9.78%  9.55%  9.53%  9.48%  10.01%
Tier 1 capital ratio (1) 9.78%  9.55%  9.53%  9.48%  10.01%
Total capital ratio (1) 12.41%  12.16%  12.18%  12.15%  12.72%
Risk-weighted assets (1)$23,582,495  $23,579,614  $23,117,199  $22,939,074  $22,525,096 
          
Equity to assets ratio 18.51%  18.41%  18.42%  18.20%  18.75%
Tangible common equity ratio (2) 9.79%  9.65%  9.50%  9.23%  9.60%
Book value per share$41.36  $41.06  $40.49  $39.86  $39.17 
Tangible book value per share (2)$19.77  $19.43  $18.83  $18.22  $18.02 
          
Pacific Western Bank Capital:         
Tier 1 leverage ratio (1) 10.95%  10.72%  10.76%  10.57%  10.80%
Common equity tier 1 capital ratio (1) 11.00%  10.79%  10.80%  10.69%  10.68%
Tier 1 capital ratio (1) 11.00%  10.79%  10.80%  10.69%  10.68%
Total capital ratio (1) 11.74%  11.52%  11.53%  11.45%  11.44%
          
(1) Capital information for December 31, 2019 is preliminary.      
(2) Non-GAAP measure.         
          

GAAP TO NON-GAAP RECONCILIATIONS

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 tables below present the reconciliations of these GAAP financial measures to the related non-GAAP financial measures:

          
          
 Three Months Ended Year Ended
 December 31, September 30, December 31, December 31,
Return on Average Tangible Equity 2019   2019   2018   2019   2018 
  
 (Dollars in thousands)
Net earnings$117,881  $110,026  $115,041  $468,636  $465,339 
          
Average stockholders' equity$4,930,182  $4,890,746  $4,758,401  $4,864,332  $4,809,667 
Less: Average intangible assets 2,589,217   2,593,925   2,608,497   2,596,389   2,616,820 
Average tangible common equity$2,340,965  $2,296,821  $2,149,904  $2,267,943  $2,192,847 
          
Return on average equity (1) 9.49%  8.93%  9.59%  9.63%  9.68%
Return on average tangible equity (2) 19.98%  19.01%  21.23%  20.66%  21.22%
          
(1) Annualized net earnings divided by average stockholders' equity.      
(2) Annualized net earnings divided by average tangible common equity.      
          


          
          
Tangible Common Equity Ratio/December 31, September 30, June 30, March 31, December 31,
Tangible Book Value Per Share 2019   2019   2019   2019   2018 
  
 (Dollars in thousands, except per share data)
Stockholders' equity$4,954,697  $4,920,108  $4,852,010  $4,790,982  $4,825,588 
Less: Intangible assets 2,587,064   2,591,217   2,596,050   2,600,920   2,605,790 
Tangible common equity$2,367,633  $2,328,891  $2,255,960  $2,190,062  $2,219,798 
          
Total assets$26,770,806  $26,724,627  $26,344,414  $26,324,138  $25,731,354 
Less: Intangible assets 2,587,064   2,591,217   2,596,050   2,600,920   2,605,790 
Tangible assets$24,183,742  $24,133,410  $23,748,364  $23,723,218  $23,125,564 
          
Equity to assets ratio 18.51%  18.41%  18.42%  18.20%  18.75%
Tangible common equity ratio (1) 9.79%  9.65%  9.50%  9.23%  9.60%
          
Book value per share$41.36  $41.06  $40.49  $39.86  $39.17 
Tangible book value per share (2)$19.77  $19.43  $18.83  $18.22  $18.02 
Shares outstanding 119,781,605   119,831,192   119,829,104   120,201,149   123,189,833 
          
(1) Tangible common equity divided by tangible assets.        
(2) Tangible common equity divided by shares outstanding.      
          


   
Contact:Matthew P. WagnerPatrick J. Rusnak
 President and CEOExecutive Vice President and CFO
Phone:310-887-8520714-989-4705

Source: PacWest Bancorp