Highlights
PacWest Bancorp (Nasdaq:PACW) today announced net
earnings for the third quarter of 2017 of $101.5 million, or $0.84
per diluted share, compared to net earnings for the second quarter
of 2017 of $93.6 million, or $0.77 per diluted share. The increase
in net earnings from the prior quarter was primarily due to lower
income tax expense partially offset by lower noninterest income and
a higher provision for credit losses. Income tax expense for the
third quarter was lower due to a $13.6 million reversal of a
valuation allowance related to tax credits which, based on our
latest analysis, are more likely than not to be utilized before
they expire.
Matt Wagner, President and CEO, commented, “We delivered solid
performance in the third quarter and continue to demonstrate our
earning power. Our strong third quarter results produced a return
on assets of 1.82% and a return on tangible equity of 16.85%.”
Mr. Wagner continued, “All required approvals have been received
and we look forward to closing the CU Bancorp acquisition this
week. We are excited about the exceptional core deposit franchise
and opportunities for increased operating efficiencies provided by
this transaction.”
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
At or For the Nine Months Ended |
|
September 30, |
|
June 30, |
|
|
|
September 30, |
|
|
Financial
Highlights |
|
2017 |
|
|
|
2017 |
|
|
Change |
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
Net earnings |
$ |
101,466 |
|
|
$ |
93,647 |
|
|
$ |
7,819 |
|
|
$ |
273,781 |
|
|
$ |
266,519 |
|
|
$ |
7,262 |
|
Diluted earnings per
share |
$ |
0.84 |
|
|
$ |
0.77 |
|
|
$ |
0.07 |
|
|
$ |
2.26 |
|
|
$ |
2.19 |
|
|
$ |
0.07 |
|
Return on average
assets |
|
1.82 |
% |
|
|
1.71 |
% |
|
|
0.11 |
|
|
|
1.67 |
% |
|
|
1.69 |
% |
|
|
(0.02 |
) |
Return on average |
|
|
|
|
|
|
|
|
|
|
|
tangible
equity (1) |
|
16.85 |
% |
|
|
16.06 |
% |
|
|
0.79 |
|
|
|
15.63 |
% |
|
|
15.74 |
% |
|
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
|
|
|
|
|
|
(tax
equivalent) |
|
5.08 |
% |
|
|
5.21 |
% |
|
|
(0.13 |
) |
|
|
5.15 |
% |
|
|
5.37 |
% |
|
|
(0.22 |
) |
Efficiency ratio |
|
40.4 |
% |
|
|
40.3 |
% |
|
|
0.1 |
|
|
|
40.7 |
% |
|
|
39.7 |
% |
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
$ |
(3,945 |
) |
|
$ |
22,242,932 |
|
|
$ |
21,315,291 |
|
|
$ |
927,641 |
|
Loans and leases
held |
|
|
|
|
|
|
|
|
|
|
|
for
investment, net of |
|
|
|
|
|
|
|
|
|
|
|
deferred
fees |
$ |
15,690,517 |
|
|
$ |
15,543,457 |
|
|
$ |
147,060 |
|
|
$ |
15,690,517 |
|
|
$ |
14,742,846 |
|
|
$ |
947,671 |
|
Noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
deposits |
$ |
6,911,874 |
|
|
$ |
6,701,039 |
|
|
$ |
210,835 |
|
|
$ |
6,911,874 |
|
|
$ |
6,521,946 |
|
|
$ |
389,928 |
|
Core deposits |
$ |
13,531,300 |
|
|
$ |
13,217,574 |
|
|
$ |
313,726 |
|
|
$ |
13,531,300 |
|
|
$ |
12,010,639 |
|
|
$ |
1,520,661 |
|
Total deposits |
$ |
16,773,245 |
|
|
$ |
16,874,977 |
|
|
$ |
(101,732 |
) |
|
$ |
16,773,245 |
|
|
$ |
15,645,668 |
|
|
$ |
1,127,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
deposits
as percentage |
|
|
|
|
|
|
|
|
|
|
|
of total
deposits |
|
41 |
% |
|
|
40 |
% |
|
|
1 |
|
|
|
41 |
% |
|
|
42 |
% |
|
|
(1 |
) |
Core deposits as |
|
|
|
|
|
|
|
|
|
|
|
percentage of total |
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
81 |
% |
|
|
78 |
% |
|
|
3 |
|
|
|
81 |
% |
|
|
77 |
% |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets
ratio |
|
20.73 |
% |
|
|
20.50 |
% |
|
|
0.23 |
|
|
|
20.73 |
% |
|
|
21.31 |
% |
|
|
(0.58 |
) |
Tangible common
equity |
|
|
|
|
|
|
|
|
|
|
|
ratio
(1) |
|
12.02 |
% |
|
|
11.75 |
% |
|
|
0.27 |
|
|
|
12.02 |
% |
|
|
12.19 |
% |
|
|
(0.17 |
) |
Book value per
share |
$ |
37.96 |
|
|
$ |
37.55 |
|
|
$ |
0.41 |
|
|
$ |
37.96 |
|
|
$ |
37.29 |
|
|
$ |
0.67 |
|
Tangible book value
per |
|
|
|
|
|
|
|
|
|
|
|
share
(1) |
$ |
19.84 |
|
|
$ |
19.40 |
|
|
$ |
0.44 |
|
|
$ |
19.84 |
|
|
$ |
19.12 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT HIGHLIGHTS
Net Interest Income
Net interest income decreased by $0.8 million to $241.7 million
for the third quarter of 2017 compared to $242.5 million for the
second quarter of 2017 due mainly to interest expense growth
exceeding interest income growth for the quarter. The loan and
lease yield was 6.01% for the third quarter of 2017 compared to
6.07% for the second quarter of 2017. The decrease in the
loan and lease yield was principally due to the decrease in
discount accretion on acquired loans and lower loan fee
income. Total discount accretion on acquired loans was $5.5
million in the third quarter of 2017 compared to $7.5 million in
the second quarter of 2017.
The tax equivalent NIM was 5.08% for the third quarter of 2017
compared to 5.21% for the second quarter of 2017. The
decrease in the NIM was mostly due to the decrease in discount
accretion on acquired loans and loan fee income and a higher cost
of average interest-bearing liabilities. Total discount accretion
on acquired loans contributed 11 basis points to the NIM for the
third quarter of 2017 and 16 basis points for the second quarter of
2017.
The cost of average total deposits increased to 0.31% for the
third quarter of 2017 from 0.25% for the second quarter of 2017 due
to higher rates paid for non-core deposits and select large-balance
deposit customers.
Noninterest Income
Noninterest income decreased by $3.9 million to $31.4 million
for the third quarter of 2017 compared to $35.3 million for the
second quarter of 2017 due mainly to a $3.3 million decrease in
leased equipment income due to lower gains on early lease
terminations and a $1.9 million decrease in other income as the
second quarter included a BOLI death benefit and higher recoveries
from third parties, offset by an increase in gain on sale of loans
and leases of $2.2 million.
The following table presents details of noninterest income for
the periods indicated:
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
Increase |
Noninterest
Income |
2017 |
|
|
2017 |
|
(Decrease) |
|
|
|
|
|
|
|
(In thousands) |
Service charges on
deposit accounts |
$ |
3,465 |
|
$ |
3,510 |
|
$ |
(45 |
) |
Other commissions and
fees |
|
9,944 |
|
|
10,583 |
|
|
(639 |
) |
Leased equipment
income |
|
8,332 |
|
|
11,635 |
|
|
(3,303 |
) |
Gain on sale of loans
and leases |
|
2,848 |
|
|
649 |
|
|
2,199 |
|
Gain on sale of
securities |
|
1,236 |
|
|
1,651 |
|
|
(415 |
) |
Other income: |
|
|
|
|
|
Dividends
and realized gains on equity investments |
|
1,845 |
|
|
1,587 |
|
|
258 |
|
Warrant
income |
|
731 |
|
|
815 |
|
|
(84 |
) |
Other |
|
2,981 |
|
|
4,852 |
|
|
(1,871 |
) |
Total
noninterest income |
$ |
31,382 |
|
$ |
35,282 |
|
$ |
(3,900 |
) |
|
|
|
|
|
|
Noninterest Expense
Noninterest expense increased by $0.8 million to $118.5 million
for the third quarter of 2017 compared to $117.7 million for the
second quarter of 2017 due mostly to a $2.3 million increase in
foreclosed assets expense offset by decreases in several expense
categories. The increase in foreclosed assets expense was due to a
write-down of $2.1 million on foreclosed property.
The following table presents details of noninterest expense for
the periods indicated:
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
Increase |
Noninterest
Expense |
2017 |
|
|
2017 |
|
|
(Decrease) |
|
|
|
|
|
|
|
(In thousands) |
Compensation |
$ |
64,413 |
|
$ |
65,288 |
|
|
$ |
(875 |
) |
Occupancy |
|
12,729 |
|
|
11,811 |
|
|
|
918 |
|
Data processing |
|
6,459 |
|
|
6,337 |
|
|
|
122 |
|
Other professional
services |
|
4,213 |
|
|
3,976 |
|
|
|
237 |
|
Insurance and
assessments |
|
4,702 |
|
|
4,856 |
|
|
|
(154 |
) |
Intangible asset
amortization |
|
3,049 |
|
|
3,065 |
|
|
|
(16 |
) |
Leased equipment
depreciation |
|
4,862 |
|
|
5,232 |
|
|
|
(370 |
) |
Foreclosed assets
expense (income), net |
|
2,191 |
|
|
(157 |
) |
|
|
2,348 |
|
Acquisition,
integration and reorganization costs |
|
1,450 |
|
|
1,700 |
|
|
|
(250 |
) |
Loan expense |
|
3,421 |
|
|
3,884 |
|
|
|
(463 |
) |
Other |
|
11,053 |
|
|
11,715 |
|
|
|
(662 |
) |
Total
noninterest expense |
$ |
118,542 |
|
$ |
117,707 |
|
|
$ |
835 |
|
|
|
|
|
|
|
Income Taxes
The overall effective income tax rate was 27.2% for the third
quarter of 2017 and 37.0% for the second quarter of 2017. The
effective rate for the third quarter was lower due to the $13.6
million reversal of a valuation allowance related to tax credits
which, based on our latest analysis, are more likely than not to be
utilized before they expire. The estimated effective tax rate for
the full year 2017 is approximately 35%.
BALANCE SHEET HIGHLIGHTS
Loans and Leases
Total loans and leases held for investment, net of deferred
fees, increased by $147.1 million in the third quarter to $15.7
billion at September 30, 2017. The net increase was driven
mainly by third quarter new production of $1.0 billion and
disbursements of $722.8 million, offset partially by payoffs of
$903.4 million and paydowns of $637.7 million.
The following table presents a roll forward of
loans and leases held for investment, net of deferred fees, for the
periods indicated:
|
Three Months Ended |
Loans and
Leases |
September 30, |
|
June 30, |
Held for
Investment Roll Forward (1) |
|
2017 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Balance, beginning of
period |
$ |
15,543,457 |
|
|
$ |
15,556,689 |
|
New
production |
|
1,002,887 |
|
|
|
1,077,929 |
|
Existing
loans and leases: |
|
|
|
Payoffs |
|
(903,395 |
) |
|
|
(956,322 |
) |
Paydowns |
|
(637,674 |
) |
|
|
(587,000 |
) |
Disbursements |
|
722,777 |
|
|
|
700,207 |
|
Sales
(2) |
|
(31,528 |
) |
|
|
(45,976 |
) |
Transfers
to foreclosed assets |
|
- |
|
|
|
(502 |
) |
Charge-offs |
|
(6,007 |
) |
|
|
(26,410 |
) |
Transfers
to loans held for sale |
|
- |
|
|
|
(175,158 |
) |
Balance, end of
period |
$ |
15,690,517 |
|
|
$ |
15,543,457 |
|
|
|
|
|
Weighted average rate
on new production |
|
5.04 |
% |
|
|
4.93 |
% |
|
|
|
|
(1)
Includes direct financing leases but excludes equipment leased to
others under operating leases. |
(2) Sales
for the three months ended September 30, 2017 exclude sales of
loans that were classified |
as loans
held for sale at June 30, 2017. |
|
|
|
The following table presents the composition of loans and leases
held for investment, net of deferred fees, as of the dates
indicated:
|
September 30, |
|
June 30, |
|
March 31, |
|
September 30, |
Loan and Lease
Portfolio |
|
2017 |
|
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Real estate
mortgage: |
|
|
|
|
|
|
|
Commercial |
$ |
4,338,933 |
|
$ |
4,418,463 |
|
$ |
4,420,923 |
|
$ |
4,327,565 |
Residential |
|
1,850,324 |
|
|
1,719,269 |
|
|
1,554,946 |
|
|
1,242,254 |
Total
real estate mortgage |
|
6,189,257 |
|
|
6,137,732 |
|
|
5,975,869 |
|
|
5,569,819 |
Real estate
construction and land: |
|
|
|
|
|
|
|
Commercial |
|
680,950 |
|
|
691,828 |
|
|
668,510 |
|
|
510,831 |
Residential |
|
568,273 |
|
|
473,282 |
|
|
442,051 |
|
|
323,104 |
Total
real estate construction and land |
|
1,249,223 |
|
|
1,165,110 |
|
|
1,110,561 |
|
|
833,935 |
Total
real estate |
|
7,438,480 |
|
|
7,302,842 |
|
|
7,086,430 |
|
|
6,403,754 |
Commercial: |
|
|
|
|
|
|
|
Cash
flow |
|
2,734,454 |
|
|
2,834,966 |
|
|
3,138,196 |
|
|
3,071,606 |
Asset-based |
|
2,577,470 |
|
|
2,392,203 |
|
|
2,391,161 |
|
|
2,573,437 |
Venture
capital |
|
1,959,489 |
|
|
2,001,427 |
|
|
1,934,949 |
|
|
1,766,509 |
Equipment
finance |
|
594,473 |
|
|
613,550 |
|
|
623,237 |
|
|
670,783 |
Total
commercial |
|
7,865,886 |
|
|
7,842,146 |
|
|
8,087,543 |
|
|
8,082,335 |
Consumer |
|
386,151 |
|
|
398,469 |
|
|
382,716 |
|
|
256,757 |
Total
loans and leases held for |
|
|
|
|
|
|
|
investment, net of deferred fees (1) |
$ |
15,690,517 |
|
$ |
15,543,457 |
|
$ |
15,556,689 |
|
$ |
14,742,846 |
|
|
|
|
|
|
|
|
Total unfunded loan
commitments |
$ |
5,037,084 |
|
$ |
4,926,743 |
|
$ |
4,497,373 |
|
$ |
4,156,147 |
|
|
|
|
|
|
|
|
(1)
Excludes loans held for sale carried at lower of cost or fair value
at June 30, 2017. |
Deposits and Client Investment Funds
The following table presents the composition of our deposit
portfolio as of the dates indicated:
|
September 30, |
|
June 30, |
|
March 31, |
|
September 30, |
Deposit
Category |
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Noninterest-bearing
demand deposits |
$ |
6,911,874 |
|
|
$ |
6,701,039 |
|
|
$ |
6,789,808 |
|
|
$ |
6,521,946 |
|
Interest checking
deposits |
|
1,957,485 |
|
|
|
1,762,016 |
|
|
|
1,509,902 |
|
|
|
1,184,350 |
|
Money market
deposits |
|
3,967,224 |
|
|
|
4,033,471 |
|
|
|
3,758,962 |
|
|
|
3,532,050 |
|
Savings deposits |
|
694,717 |
|
|
|
721,048 |
|
|
|
710,401 |
|
|
|
772,293 |
|
Total
core deposits |
|
13,531,300 |
|
|
|
13,217,574 |
|
|
|
12,769,073 |
|
|
|
12,010,639 |
|
Non-core non-maturity
deposits |
|
1,118,694 |
|
|
|
1,329,324 |
|
|
|
1,154,070 |
|
|
|
1,082,114 |
|
Total
non-maturity deposits |
|
14,649,994 |
|
|
|
14,546,898 |
|
|
|
13,923,143 |
|
|
|
13,092,753 |
|
Time deposits $250,000
and under |
|
1,770,439 |
|
|
|
1,940,872 |
|
|
|
1,998,597 |
|
|
|
2,091,747 |
|
Time deposits over
$250,000 |
|
352,812 |
|
|
|
387,207 |
|
|
|
409,268 |
|
|
|
461,168 |
|
Total
time deposits |
|
2,123,251 |
|
|
|
2,328,079 |
|
|
|
2,407,865 |
|
|
|
2,552,915 |
|
Total
deposits |
$ |
16,773,245 |
|
|
$ |
16,874,977 |
|
|
$ |
16,331,008 |
|
|
$ |
15,645,668 |
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits |
|
|
|
|
|
|
|
as
percentage of total deposits |
|
41 |
% |
|
|
40 |
% |
|
|
42 |
% |
|
|
42 |
% |
Core deposits as
percentage of total deposits |
|
81 |
% |
|
|
78 |
% |
|
|
78 |
% |
|
|
77 |
% |
At September 30, 2017, core deposits totaled $13.5 billion, or
81% of total deposits, including $6.9 billion of
noninterest-bearing demand deposits, or 41% of total
deposits.
In addition to deposit products, we also offer alternative
non-depository cash investment options for select clients; these
alternatives include investments managed by Square 1 Asset
Management, Inc. (“S1AM”), our registered investment advisor
subsidiary, and third-party sweep products. Total off-balance
sheet client investment funds at September 30, 2017 were $1.9
billion, of which $1.6 billion was managed by S1AM.
PROVISION AND ALLOWANCE FOR CREDIT LOSSES
A provision for credit losses of $15.1 million was recorded in
the third quarter of 2017 compared to $11.5 million in the second
quarter of 2017. The third quarter provision consisted of
$15.5 million for non-purchased credit impaired (“Non-PCI”) loans
and leases and a $0.4 million negative provision for PCI loans;
this compares to a provision of $12.5 million and a negative
provision of $1.0 million, respectively, for the second quarter of
2017. The higher provision for the third quarter of 2017 was
due mainly to loan risk rating downgrades combined with net
portfolio growth. The allowance for Non-PCI credit losses to
Non-PCI loans and leases held for investment coverage ratio was
1.11% and 1.02% at September 30, 2017 and June 30, 2017.
The following tables show roll forwards of the allowance for
credit losses for the periods indicated:
|
Three Months Ended September 30,
2017 |
|
Non-PCI |
|
|
|
|
|
|
|
|
Allowance for
Credit |
Loans and |
|
Unfunded |
|
Total |
|
PCI |
|
|
Losses
Rollforward |
Leases |
|
Commitments |
|
Non-PCI |
|
Loans |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Beginning balance |
$ |
138,879 |
|
|
$ |
20,263 |
|
$ |
159,142 |
|
|
$ |
7,079 |
|
|
$ |
166,221 |
|
Charge-offs |
|
(5,928 |
) |
|
|
- |
|
|
(5,928 |
) |
|
|
(79 |
) |
|
|
(6,007 |
) |
Recoveries |
|
4,865 |
|
|
|
- |
|
|
4,865 |
|
|
|
217 |
|
|
|
5,082 |
|
Net
charge-offs |
|
(1,063 |
) |
|
|
- |
|
|
(1,063 |
) |
|
|
138 |
|
|
|
(925 |
) |
Provision |
|
14,954 |
|
|
|
546 |
|
|
15,500 |
|
|
|
(381 |
) |
|
|
15,119 |
|
Ending balance |
$ |
152,770 |
|
|
$ |
20,809 |
|
$ |
173,579 |
|
|
$ |
6,836 |
|
|
$ |
180,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017 |
|
Non-PCI |
|
|
|
|
|
|
|
|
Allowance for
Credit |
Loans and |
|
Unfunded |
|
Total |
|
PCI |
|
|
Losses
Rollforward |
Leases |
|
Commitments |
|
Non-PCI |
|
Loans |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Beginning balance |
$ |
149,826 |
|
|
$ |
17,763 |
|
$ |
167,589 |
|
|
$ |
11,481 |
|
|
$ |
179,070 |
|
Charge-offs |
|
(22,951 |
) |
|
|
- |
|
|
(22,951 |
) |
|
|
(3,459 |
) |
|
|
(26,410 |
) |
Recoveries |
|
2,004 |
|
|
|
- |
|
|
2,004 |
|
|
|
58 |
|
|
|
2,062 |
|
Net
charge-offs |
|
(20,947 |
) |
|
|
- |
|
|
(20,947 |
) |
|
|
(3,401 |
) |
|
|
(24,348 |
) |
Provision |
|
10,000 |
|
|
|
2,500 |
|
|
12,500 |
|
|
|
(1,001 |
) |
|
|
11,499 |
|
Ending balance |
$ |
138,879 |
|
|
$ |
20,263 |
|
$ |
159,142 |
|
|
$ |
7,079 |
|
|
$ |
166,221 |
|
|
|
|
|
|
|
|
|
|
|
The gross charge-offs for the third quarter of 2017 included
$3.4 million for venture capital loans. Recoveries for the quarter
included $2.6 million related to venture capital loans previously
charged off in 2017. The annualized ratio of total net charge-offs
to total average loans was 0.02% for the quarter ended September
30, 2017 and 0.40% for the nine months ended September 30, 2017.
CREDIT QUALITY
The following table presents Non-PCI loan and lease credit
quality metrics as of the dates indicated:
|
September 30, |
|
June 30, |
|
Increase |
Non-PCI Credit
Quality Metrics |
|
2017 |
|
|
|
2017 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Nonaccrual loans and
leases held for investment (1) |
$ |
157,697 |
|
|
$ |
172,576 |
|
|
$ |
(14,879 |
) |
Classified loans and
leases held for investment (1) |
|
344,777 |
|
|
|
339,977 |
|
|
|
4,800 |
|
Performing troubled
debt restructured loans |
|
|
|
|
|
held for
investment |
|
56,552 |
|
|
|
55,910 |
|
|
|
642 |
|
Allowance for credit
losses |
|
173,579 |
|
|
|
159,142 |
|
|
|
14,437 |
|
Net charge-offs (for
the quarter) |
|
1,063 |
|
|
|
20,947 |
|
|
|
(19,884 |
) |
Provision for credit
losses (for the quarter) |
|
15,500 |
|
|
|
12,500 |
|
|
|
3,000 |
|
Allowance for credit
losses to loans and leases |
|
|
|
|
|
held for
investment |
|
1.11 |
% |
|
|
1.02 |
% |
|
|
Allowance for credit
losses to nonaccrual loans |
|
|
|
|
|
and
leases held for investment |
|
110.1 |
% |
|
|
92.2 |
% |
|
|
Nonaccrual loans and
leases held for investment |
|
|
|
|
|
to loans
and leases held for investment |
|
1.00 |
% |
|
|
1.11 |
% |
|
|
Nonperforming assets to
loans and leases |
|
|
|
|
|
held for
investment and foreclosed assets |
|
1.08 |
% |
|
|
1.20 |
% |
|
|
Classified loans and
leases held for investment |
|
|
|
|
|
to loans
and leases held for investment |
|
2.20 |
% |
|
|
2.19 |
% |
|
|
|
|
|
|
|
|
(1)
Excludes loans held for sale carried at lower of cost or fair value
at June 30, 2017. |
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 |
|
September 30, 2017 |
|
June 30, 2017 |
|
30-89 Days Past Due |
|
|
% of |
|
|
% of |
|
September 30, |
|
June 30, |
|
|
Loan |
|
|
Loan |
|
|
2017 |
|
|
2017 |
|
Amount |
Category |
|
Amount |
Category |
|
Amount |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Real estate
mortgage: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
63,096 |
1.5 |
% |
|
$ |
65,599 |
1.5 |
% |
|
$ |
1,446 |
|
$ |
3,734 |
Residential |
|
3,186 |
0.2 |
% |
|
|
5,229 |
0.3 |
% |
|
|
282 |
|
|
46 |
Total
real estate mortgage |
|
66,282 |
1.1 |
% |
|
|
70,828 |
1.2 |
% |
|
|
1,728 |
|
|
3,780 |
Real estate
construction and land: |
|
|
|
|
|
|
|
|
|
Commercial |
|
- |
0.0 |
% |
|
|
- |
0.0 |
% |
|
|
- |
|
|
- |
Residential |
|
- |
0.0 |
% |
|
|
- |
0.0 |
% |
|
|
- |
|
|
- |
Total
real estate |
|
|
|
|
|
|
|
|
|
construction and land |
|
- |
0.0 |
% |
|
|
- |
0.0 |
% |
|
|
- |
|
|
- |
Commercial: |
|
|
|
|
|
|
|
|
|
Cash
flow |
|
33,514 |
1.2 |
% |
|
|
43,169 |
1.5 |
% |
|
|
72 |
|
|
201 |
Asset-based |
|
3,977 |
0.2 |
% |
|
|
1,718 |
0.1 |
% |
|
|
- |
|
|
- |
Venture
capital |
|
22,686 |
1.2 |
% |
|
|
25,278 |
1.3 |
% |
|
|
2,720 |
|
|
23,171 |
Equipment
finance |
|
30,942 |
5.2 |
% |
|
|
31,111 |
5.1 |
% |
|
|
- |
|
|
- |
Total
commercial |
|
91,119 |
1.2 |
% |
|
|
101,276 |
1.3 |
% |
|
|
2,792 |
|
|
23,372 |
Consumer |
|
296 |
0.1 |
% |
|
|
472 |
0.1 |
% |
|
|
286 |
|
|
- |
Total
held for investment (1) |
$ |
157,697 |
1.0 |
% |
|
$ |
172,576 |
1.1 |
% |
|
$ |
4,806 |
|
$ |
27,152 |
|
|
|
|
|
|
|
|
|
|
(1)
Excludes loans held for sale carried at lower of cost or fair value
at June 30, 2017. |
The following table presents nonperforming assets as of the
dates indicated:
|
September 30, |
|
June 30, |
|
Increase |
Nonperforming
Assets |
|
2017 |
|
|
|
2017 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Nonaccrual Non-PCI
loans and leases |
|
|
|
|
|
held for
investment (1) |
$ |
157,697 |
|
|
$ |
172,576 |
|
|
$ |
(14,879 |
) |
Nonaccrual PCI loans
held for investment |
|
1,761 |
|
|
|
1,980 |
|
|
|
(219 |
) |
Total nonaccrual loans
and leases |
|
159,458 |
|
|
|
174,556 |
|
|
|
(15,098 |
) |
Foreclosed assets,
net |
|
11,630 |
|
|
|
13,278 |
|
|
|
(1,648 |
) |
Total nonperforming
assets |
$ |
171,088 |
|
|
$ |
187,834 |
|
|
$ |
(16,746 |
) |
|
|
|
|
|
|
Nonaccrual loans and
leases held for investment |
|
|
|
|
|
to loans
and leases held for investment |
|
1.01 |
% |
|
|
1.12 |
% |
|
|
Nonperforming assets to
loans and leases |
|
|
|
|
|
held for
investment and foreclosed assets |
|
1.09 |
% |
|
|
1.20 |
% |
|
|
|
|
|
|
|
|
(1)
Excludes loans held for sale carried at lower of cost or fair value
at June 30, 2017. |
CU BANCORP MERGER ANNOUNCEMENT
On April 6, 2017, PacWest announced the signing of a definitive
agreement and plan of merger (the “Agreement”) whereby PacWest will
acquire CU Bancorp (“CUB”) in a transaction valued at approximately
$705 million as of the announcement date.
CUB, headquartered in Los Angeles, California, is the parent of
California United Bank (“CU Bank”), a California state-chartered
non-member bank, with approximately $3.0 billion in assets and nine
branches located in Los Angeles, Orange, Ventura, and San
Bernardino counties at June 30, 2017. In connection with the
acquisition, CU Bank will be merged into Pacific Western Bank, the
principal operating subsidiary of PacWest.
The acquisition, which has been approved by the PacWest and CUB
boards of directors and bank regulatory authorities, is expected to
close on October 20, 2017.
ABOUT PACWEST BANCORP
PacWest Bancorp (“PacWest”) is a bank holding company with over
$22 billion in assets with one wholly-owned banking subsidiary,
Pacific Western Bank (the “Bank”). The Bank has 74 full-service
branches located throughout the state of California and one branch
in Durham, North Carolina. We provide commercial banking services,
including real estate, construction, and commercial loans, and
comprehensive deposit and treasury management services to small and
medium-sized businesses. We offer additional products and
services through our CapitalSource and Square 1 Bank divisions. Our
CapitalSource Division provides cash flow, asset-based, equipment
and real estate loans and treasury management services to
established middle market businesses on a national basis. Our
Square 1 Bank Division offers a comprehensive suite of financial
services focused on entrepreneurial businesses and their venture
capital and private equity investors, with offices located in key
innovation hubs across the United States. For more
information about PacWest Bancorp, visit www.pacwestbancorp.com, or
to learn more about Pacific Western Bank, visit
www.pacificwesternbank.com.
FORWARD LOOKING STATEMENTS
This release contains certain “forward-looking statements” about
the Company and its subsidiaries within the meaning of the Private
Securities Litigation Reform Act of 1995, including forward-looking
statements relating to the Company’s current business plans and
expectations regarding future operating results and metrics and
including statements about our expectations regarding our pending
merger between the Company and CUB. All statements contained in
this release that are not clearly historical in nature are
forward-looking, and the words “anticipate,” “assume,” “intend,”
“believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,”
“will,” “should,” “look forward” and similar expressions are
generally intended to identify forward-looking statements. All
forward-looking statements (including statements regarding future
financial and operating results and future transactions and their
results) involve risks, uncertainties and contingencies, many of
which are beyond our control, which may cause actual results,
performance, or achievements to differ materially from anticipated
results, performance or achievements. These risks and uncertainties
include, but are not limited to, our ability to compete effectively
against other financial institutions in our banking markets; the
impact of changes in interest rates or levels of market activity,
especially on our loan and investment portfolios; deterioration,
weaker than expected improvement, or other changes in the state of
the economy or the markets in which we conduct business (including
the levels of IPOs and M&A activities); changes in credit
quality and the effect of credit quality on our provision for loan
and lease losses and allowance for loan and leases losses; our
ability to attract deposits and other sources of funding or
liquidity; our capital requirements and our ability to generate
capital internally or raise capital on favorable terms; the costs
and effects of legal, compliance and regulatory actions, changes
and developments, including the impact of adverse judgments or
settlements in litigation, the initiation and resolution of
regulatory or other governmental inquiries or investigations,
and/or the results of regulatory examinations or reviews; the
Company’s ability to complete the pending CUB acquisition, or any
future acquisition, successfully integrate such acquired entities,
or achieve expected beneficial synergies and/or operating
efficiencies, in each case within expected timeframes or at all;
and our success at managing the risks involved in the foregoing
items and all other factors set forth in the Company’s public
reports, including the Annual Report on Form 10-K for the year
ended December 31, 2016, and particularly the discussion of risk
factors within that document.
All forward-looking statements included in this release are
based on information available at the time of the release. We are
under no obligation to (and expressly disclaim any such obligation
to) update or alter our forward-looking statements, whether as a
result of new information, future events or otherwise except as
required by law.
PACWEST BANCORP
AND SUBSIDIARIES |
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
ASSETS: |
|
|
|
|
|
Cash and due from
banks |
$ |
147,579 |
|
|
$ |
180,330 |
|
|
$ |
337,965 |
|
Interest-earning
deposits in financial institutions |
|
122,439 |
|
|
|
107,150 |
|
|
|
81,705 |
|
Total cash and cash equivalents |
|
270,018 |
|
|
|
287,480 |
|
|
|
419,670 |
|
|
|
|
|
|
|
Securities
available-for-sale, at estimated fair value |
|
3,532,230 |
|
|
|
3,474,560 |
|
|
|
3,223,830 |
|
Federal Home Loan Bank
stock, at cost |
|
17,250 |
|
|
|
22,059 |
|
|
|
21,870 |
|
Total investment securities |
|
3,549,480 |
|
|
|
3,496,619 |
|
|
|
3,245,700 |
|
|
|
|
|
|
|
Loans held for
sale |
|
- |
|
|
|
175,158 |
|
|
|
- |
|
|
|
|
|
|
|
Non-PCI loans and
leases |
|
15,693,776 |
|
|
|
15,536,735 |
|
|
|
15,412,092 |
|
PCI loans |
|
62,509 |
|
|
|
72,445 |
|
|
|
108,445 |
|
Total
gross loans and leases held for investment |
|
15,756,285 |
|
|
|
15,609,180 |
|
|
|
15,520,537 |
|
Deferred fees, net |
|
(65,768 |
) |
|
|
(65,723 |
) |
|
|
(64,583 |
) |
Total
loans and leases held for investment, |
|
|
|
|
|
net of
deferred fees |
|
15,690,517 |
|
|
|
15,543,457 |
|
|
|
15,455,954 |
|
Allowance for loan and
lease losses |
|
(159,606 |
) |
|
|
(145,958 |
) |
|
|
(157,238 |
) |
Total loans and leases held for investment,
net |
|
15,530,911 |
|
|
|
15,397,499 |
|
|
|
15,298,716 |
|
|
|
|
|
|
|
Equipment leased to
others under operating leases |
|
233,866 |
|
|
|
203,212 |
|
|
|
229,905 |
|
Premises and equipment,
net |
|
28,910 |
|
|
|
29,108 |
|
|
|
38,594 |
|
Foreclosed assets,
net |
|
11,630 |
|
|
|
13,278 |
|
|
|
12,976 |
|
Deferred tax asset,
net |
|
65,321 |
|
|
|
70,354 |
|
|
|
94,112 |
|
Goodwill |
|
2,173,949 |
|
|
|
2,173,949 |
|
|
|
2,173,949 |
|
Core deposit and
customer |
|
|
|
|
|
relationship intangibles, net |
|
27,188 |
|
|
|
30,237 |
|
|
|
36,366 |
|
Other assets |
|
351,659 |
|
|
|
369,983 |
|
|
|
319,779 |
|
Total assets |
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
$ |
21,869,767 |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
6,911,874 |
|
|
$ |
6,701,039 |
|
|
$ |
6,659,016 |
|
Interest-bearing
deposits |
|
9,861,371 |
|
|
|
10,173,938 |
|
|
|
9,211,595 |
|
Total deposits |
|
16,773,245 |
|
|
|
16,874,977 |
|
|
|
15,870,611 |
|
Borrowings |
|
250,399 |
|
|
|
217,454 |
|
|
|
905,812 |
|
Subordinated
debentures |
|
448,126 |
|
|
|
445,743 |
|
|
|
440,744 |
|
Accrued interest
payable and other liabilities |
|
160,494 |
|
|
|
148,798 |
|
|
|
173,545 |
|
Total liabilities |
|
17,632,264 |
|
|
|
17,686,972 |
|
|
|
17,390,712 |
|
STOCKHOLDERS'
EQUITY (1) |
|
4,610,668 |
|
|
|
4,559,905 |
|
|
|
4,479,055 |
|
Total liabilities and stockholders’ equity |
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
$ |
21,869,767 |
|
|
|
|
|
|
|
Book value per
share |
$ |
37.96 |
|
|
$ |
37.55 |
|
|
$ |
36.93 |
|
Tangible book value per
share (2) |
$ |
19.84 |
|
|
$ |
19.40 |
|
|
$ |
18.71 |
|
Shares outstanding |
|
121,449,794 |
|
|
|
121,448,321 |
|
|
|
121,283,669 |
|
|
|
|
|
|
|
(1) Includes net
unrealized gain on securities |
|
|
|
|
|
available-for-sale, net |
$ |
33,613 |
|
|
$ |
29,729 |
|
|
$ |
5,982 |
|
(2) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
|
|
|
|
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
235,666 |
|
|
$ |
234,618 |
|
|
$ |
225,370 |
|
|
$ |
694,462 |
|
|
$ |
686,071 |
|
|
|
|
|
Investment
securities |
|
24,762 |
|
|
|
24,689 |
|
|
|
22,187 |
|
|
|
72,490 |
|
|
|
67,154 |
|
|
|
|
|
Deposits in financial
institutions |
|
538 |
|
|
|
237 |
|
|
|
298 |
|
|
|
967 |
|
|
|
914 |
|
|
|
|
|
Total interest income |
|
260,966 |
|
|
|
259,544 |
|
|
|
247,855 |
|
|
|
767,919 |
|
|
|
754,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
13,071 |
|
|
|
10,205 |
|
|
|
7,247 |
|
|
|
31,653 |
|
|
|
24,143 |
|
|
|
|
|
Borrowings |
|
188 |
|
|
|
1,066 |
|
|
|
695 |
|
|
|
2,272 |
|
|
|
1,628 |
|
|
|
|
|
Subordinated
debentures |
|
6,017 |
|
|
|
5,800 |
|
|
|
5,278 |
|
|
|
17,379 |
|
|
|
15,382 |
|
|
|
|
|
Total interest expense |
|
19,276 |
|
|
|
17,071 |
|
|
|
13,220 |
|
|
|
51,304 |
|
|
|
41,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
241,690 |
|
|
|
242,473 |
|
|
|
234,635 |
|
|
|
716,615 |
|
|
|
712,986 |
|
|
|
|
|
Provision for credit
losses |
|
15,119 |
|
|
|
11,499 |
|
|
|
8,471 |
|
|
|
51,346 |
|
|
|
42,514 |
|
|
|
|
|
Net interest income after provision |
|
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses |
|
226,571 |
|
|
|
230,974 |
|
|
|
226,164 |
|
|
|
665,269 |
|
|
|
670,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
3,465 |
|
|
|
3,510 |
|
|
|
3,488 |
|
|
|
10,733 |
|
|
|
10,977 |
|
|
|
|
|
Other commissions and
fees |
|
9,944 |
|
|
|
10,583 |
|
|
|
12,528 |
|
|
|
30,917 |
|
|
|
35,090 |
|
|
|
|
|
Leased equipment
income |
|
8,332 |
|
|
|
11,635 |
|
|
|
8,538 |
|
|
|
29,442 |
|
|
|
25,305 |
|
|
|
|
|
Gain on sale of loans
and leases |
|
2,848 |
|
|
|
649 |
|
|
|
157 |
|
|
|
4,209 |
|
|
|
790 |
|
|
|
|
|
Gain on sale of
securities |
|
1,236 |
|
|
|
1,651 |
|
|
|
382 |
|
|
|
2,788 |
|
|
|
8,970 |
|
|
|
|
|
FDIC loss sharing
expense, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(8,917 |
) |
|
|
|
|
Other income |
|
5,557 |
|
|
|
7,254 |
|
|
|
1,827 |
|
|
|
23,689 |
|
|
|
11,365 |
|
|
|
|
|
Total noninterest income |
|
31,382 |
|
|
|
35,282 |
|
|
|
26,920 |
|
|
|
101,778 |
|
|
|
83,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
64,413 |
|
|
|
65,288 |
|
|
|
62,661 |
|
|
|
194,581 |
|
|
|
185,900 |
|
|
|
|
|
Occupancy |
|
12,729 |
|
|
|
11,811 |
|
|
|
12,010 |
|
|
|
36,148 |
|
|
|
36,835 |
|
|
|
|
|
Data processing |
|
6,459 |
|
|
|
6,337 |
|
|
|
6,234 |
|
|
|
19,811 |
|
|
|
17,782 |
|
|
|
|
|
Other professional
services |
|
4,213 |
|
|
|
3,976 |
|
|
|
4,625 |
|
|
|
11,567 |
|
|
|
11,598 |
|
|
|
|
|
Insurance and
assessments |
|
4,702 |
|
|
|
4,856 |
|
|
|
4,324 |
|
|
|
14,349 |
|
|
|
14,240 |
|
|
|
|
|
Intangible asset
amortization |
|
3,049 |
|
|
|
3,065 |
|
|
|
4,224 |
|
|
|
9,178 |
|
|
|
13,341 |
|
|
|
|
|
Leased equipment
depreciation |
|
4,862 |
|
|
|
5,232 |
|
|
|
5,298 |
|
|
|
15,719 |
|
|
|
15,608 |
|
|
|
|
|
Foreclosed assets
expense (income), net |
|
2,191 |
|
|
|
(157 |
) |
|
|
(248 |
) |
|
|
2,177 |
|
|
|
(812 |
) |
|
|
|
|
Acquisition,
integration and |
|
|
|
|
|
|
|
|
|
|
|
|
|
reorganization costs |
|
1,450 |
|
|
|
1,700 |
|
|
|
- |
|
|
|
3,650 |
|
|
|
200 |
|
|
|
|
|
Loan expense |
|
3,421 |
|
|
|
3,884 |
|
|
|
1,931 |
|
|
|
10,692 |
|
|
|
6,231 |
|
|
|
|
|
Other expense |
|
11,053 |
|
|
|
11,715 |
|
|
|
9,651 |
|
|
|
34,921 |
|
|
|
30,556 |
|
|
|
|
|
Total noninterest expense |
|
118,542 |
|
|
|
117,707 |
|
|
|
110,710 |
|
|
|
352,793 |
|
|
|
331,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes |
|
139,411 |
|
|
|
148,549 |
|
|
|
142,374 |
|
|
|
414,254 |
|
|
|
422,573 |
|
|
|
|
|
Income tax expense |
|
(37,945 |
) |
|
|
(54,902 |
) |
|
|
(48,479 |
) |
|
|
(140,473 |
) |
|
|
(156,054 |
) |
|
|
|
|
Net earnings |
$ |
101,466 |
|
|
$ |
93,647 |
|
|
$ |
93,895 |
|
|
$ |
273,781 |
|
|
$ |
266,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share |
$ |
0.84 |
|
|
$ |
0.77 |
|
|
$ |
0.77 |
|
|
$ |
2.26 |
|
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
NET
EARNINGS PER SHARE CALCULATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
|
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
|
|
|
|
|
Basic Earnings
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings |
$ |
101,466 |
|
|
$ |
93,647 |
|
|
$ |
93,895 |
|
|
$ |
273,781 |
|
|
$ |
266,519 |
|
|
|
|
|
Less:
earnings allocated to unvested |
|
|
|
|
|
|
|
|
|
|
|
|
|
restricted stock (1) |
|
(1,149 |
) |
|
|
(1,080 |
) |
|
|
(1,048 |
) |
|
|
(3,239 |
) |
|
|
(2,983 |
) |
|
|
|
|
Net
earnings allocated to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
shares |
$ |
100,317 |
|
|
$ |
92,567 |
|
|
$ |
92,847 |
|
|
$ |
270,542 |
|
|
$ |
263,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average basic shares and |
|
|
|
|
|
|
|
|
|
|
|
|
|
unvested
restricted stock outstanding |
|
121,447 |
|
|
|
121,422 |
|
|
|
121,818 |
|
|
|
121,405 |
|
|
|
121,739 |
|
|
|
|
|
Less:
weighted-average unvested |
|
|
|
|
|
|
|
|
|
|
|
|
|
restricted stock outstanding |
|
(1,394 |
) |
|
|
(1,455 |
) |
|
|
(1,401 |
) |
|
|
(1,450 |
) |
|
|
(1,425 |
) |
|
|
|
|
Weighted-average basic shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding |
|
120,053 |
|
|
|
119,967 |
|
|
|
120,417 |
|
|
|
119,955 |
|
|
|
120,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.84 |
|
|
$ |
0.77 |
|
|
$ |
0.77 |
|
|
$ |
2.26 |
|
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings allocated to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
shares |
$ |
100,317 |
|
|
$ |
92,567 |
|
|
$ |
92,847 |
|
|
$ |
270,542 |
|
|
$ |
263,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average basic shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding |
|
120,053 |
|
|
|
119,967 |
|
|
|
120,417 |
|
|
|
119,955 |
|
|
|
120,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
0.84 |
|
|
$ |
0.77 |
|
|
$ |
0.77 |
|
|
$ |
2.26 |
|
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
September 30, 2017 |
|
June 30, 2017 |
|
September 30, 2016 |
|
|
Interest |
Average |
|
|
Interest |
Average |
|
|
Interest |
Average |
|
Average |
Income/ |
Yield/ |
|
Average |
Income/ |
Yield/ |
|
Average |
Income/ |
Yield/ |
|
Balance |
Expense |
Cost |
|
Balance |
Expense |
Cost |
|
Balance |
Expense |
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
PCI loans |
$ |
60,126 |
$ |
3,308 |
21.83 |
% |
|
$ |
68,759 |
$ |
4,643 |
27.08 |
% |
|
$ |
117,781 |
$ |
5,868 |
19.82 |
% |
Non-PCI loans and
leases |
|
15,514,904 |
|
232,510 |
5.95 |
% |
|
|
15,429,162 |
|
229,975 |
5.98 |
% |
|
|
14,417,170 |
|
219,502 |
6.06 |
% |
Total
loans and leases (1) |
|
15,575,030 |
|
235,818 |
6.01 |
% |
|
|
15,497,921 |
|
234,618 |
6.07 |
% |
|
|
14,534,951 |
|
225,370 |
6.17 |
% |
Investment securities
(2) |
|
3,510,956 |
|
29,495 |
3.33 |
% |
|
|
3,436,785 |
|
29,538 |
3.45 |
% |
|
|
3,338,209 |
|
27,025 |
3.22 |
% |
Deposits in
financial |
|
|
|
|
|
|
|
|
|
|
|
institutions |
|
171,455 |
|
538 |
1.24 |
% |
|
|
96,087 |
|
237 |
0.99 |
% |
|
|
238,425 |
|
298 |
0.50 |
% |
Total
interest-earning |
|
|
|
|
|
|
|
|
|
|
|
assets |
|
19,257,441 |
|
265,851 |
5.48 |
% |
|
|
19,030,793 |
|
264,393 |
5.57 |
% |
|
|
18,111,585 |
|
252,693 |
5.55 |
% |
Other assets |
|
2,880,433 |
|
|
|
|
2,905,809 |
|
|
|
|
2,960,468 |
|
|
Total
assets |
$ |
22,137,874 |
|
|
|
$ |
21,936,602 |
|
|
|
$ |
21,072,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
Interest checking |
$ |
2,146,125 |
|
2,960 |
0.55 |
% |
|
$ |
1,709,699 |
|
1,697 |
0.40 |
% |
|
$ |
1,161,931 |
|
604 |
0.21 |
% |
Money market |
|
4,914,803 |
|
6,307 |
0.51 |
% |
|
|
4,907,865 |
|
4,993 |
0.41 |
% |
|
|
4,514,525 |
|
3,303 |
0.29 |
% |
Savings |
|
707,367 |
|
289 |
0.16 |
% |
|
|
708,389 |
|
296 |
0.17 |
% |
|
|
764,415 |
|
341 |
0.18 |
% |
Time |
|
2,256,259 |
|
3,515 |
0.62 |
% |
|
|
2,366,399 |
|
3,219 |
0.55 |
% |
|
|
2,666,434 |
|
2,999 |
0.45 |
% |
Total
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
10,024,554 |
|
13,071 |
0.52 |
% |
|
|
9,692,352 |
|
10,205 |
0.42 |
% |
|
|
9,107,305 |
|
7,247 |
0.32 |
% |
Borrowings |
|
61,071 |
|
188 |
1.22 |
% |
|
|
457,774 |
|
1,066 |
0.93 |
% |
|
|
583,982 |
|
695 |
0.47 |
% |
Subordinated
debentures |
|
447,012 |
|
6,017 |
5.34 |
% |
|
|
443,756 |
|
5,800 |
5.24 |
% |
|
|
439,970 |
|
5,278 |
4.77 |
% |
Total
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
liabilities |
|
10,532,637 |
|
19,276 |
0.73 |
% |
|
|
10,593,882 |
|
17,071 |
0.65 |
% |
|
|
10,131,257 |
|
13,220 |
0.52 |
% |
Noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
demand
deposits |
|
6,858,816 |
|
|
|
|
6,646,349 |
|
|
|
|
6,274,294 |
|
|
Other liabilities |
|
153,932 |
|
|
|
|
151,095 |
|
|
|
|
135,801 |
|
|
Total
liabilities |
|
17,545,385 |
|
|
|
|
17,391,326 |
|
|
|
|
16,541,352 |
|
|
Stockholders'
equity |
|
4,592,489 |
|
|
|
|
4,545,276 |
|
|
|
|
4,530,701 |
|
|
Total
liabilities and |
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity |
$ |
22,137,874 |
|
|
|
$ |
21,936,602 |
|
|
|
$ |
21,072,053 |
|
|
Net interest income
(3) |
|
$ |
246,575 |
|
|
|
$ |
247,322 |
|
|
|
$ |
239,473 |
|
Net interest spread
(3) |
|
|
4.75 |
% |
|
|
|
4.92 |
% |
|
|
|
5.03 |
% |
Net interest margin
(3) |
|
|
5.08 |
% |
|
|
|
5.21 |
% |
|
|
|
5.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits (4) |
$ |
16,883,370 |
$ |
13,071 |
0.31 |
% |
|
$ |
16,338,701 |
$ |
10,205 |
0.25 |
% |
|
$ |
15,381,599 |
$ |
7,247 |
0.19 |
% |
Funding sources
(5) |
$ |
17,391,453 |
$ |
19,276 |
0.44 |
% |
|
$ |
17,240,231 |
$ |
17,071 |
0.40 |
% |
|
$ |
16,405,551 |
$ |
13,220 |
0.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Starting with the third quarter of 2017, includes tax-equivalent
adjustments related to tax-exempt interest on loans. |
|
|
(2)
Includes tax-equivalent adjustments of $4.7 million, $4.8 million,
and $4.8 million for the three months ended September 30, 2017,
June 30, 2017, |
|
and September 30, 2016 related to tax-exempt income on
municipal securities. The federal statutory tax rate utilized
was 35% for the periods. |
|
(3) Tax
equivalent. |
|
|
|
|
|
|
|
|
|
|
|
(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 deposits divided by average
total deposits. |
|
|
|
|
|
|
(5)
Funding sources is the sum of total interest-bearing liabilities
and noninterest-bearing demand deposits. The cost of funding
sources is calculated |
|
as annualized total interest expense divided by average
funding sources. |
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
FIVE QUARTER
BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
ASSETS: |
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
147,579 |
|
|
$ |
180,330 |
|
|
$ |
184,608 |
|
|
$ |
337,965 |
|
|
$ |
286,371 |
|
Interest-earning
deposits in financial |
|
|
|
|
|
|
|
|
|
institutions |
|
122,439 |
|
|
|
107,150 |
|
|
|
111,892 |
|
|
|
81,705 |
|
|
|
253,994 |
|
Total cash and cash equivalents |
|
270,018 |
|
|
|
287,480 |
|
|
|
296,500 |
|
|
|
419,670 |
|
|
|
540,365 |
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale |
|
3,532,230 |
|
|
|
3,474,560 |
|
|
|
3,336,992 |
|
|
|
3,223,830 |
|
|
|
3,341,335 |
|
Federal Home Loan Bank
stock |
|
17,250 |
|
|
|
22,059 |
|
|
|
17,901 |
|
|
|
21,870 |
|
|
|
19,386 |
|
Total investment securities |
|
3,549,480 |
|
|
|
3,496,619 |
|
|
|
3,354,893 |
|
|
|
3,245,700 |
|
|
|
3,360,721 |
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale |
|
- |
|
|
|
175,158 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Non-PCI loans and
leases |
|
15,693,776 |
|
|
|
15,536,735 |
|
|
|
15,526,518 |
|
|
|
15,412,092 |
|
|
|
14,686,206 |
|
PCI loans |
|
62,509 |
|
|
|
72,445 |
|
|
|
96,353 |
|
|
|
108,445 |
|
|
|
120,221 |
|
Total
gross loans and leases |
|
|
|
|
|
|
|
|
|
held for
investment |
|
15,756,285 |
|
|
|
15,609,180 |
|
|
|
15,622,871 |
|
|
|
15,520,537 |
|
|
|
14,806,427 |
|
Deferred fees, net |
|
(65,768 |
) |
|
|
(65,723 |
) |
|
|
(66,182 |
) |
|
|
(64,583 |
) |
|
|
(63,581 |
) |
Total
loans and leases held for |
|
|
|
|
|
|
|
|
|
investment, net of deferred fees |
|
15,690,517 |
|
|
|
15,543,457 |
|
|
|
15,556,689 |
|
|
|
15,455,954 |
|
|
|
14,742,846 |
|
Allowance for loan and
lease losses |
|
(159,606 |
) |
|
|
(145,958 |
) |
|
|
(161,307 |
) |
|
|
(157,238 |
) |
|
|
(147,976 |
) |
Total loans and leases held for |
|
|
|
|
|
|
|
|
|
investment, net |
|
15,530,911 |
|
|
|
15,397,499 |
|
|
|
15,395,382 |
|
|
|
15,298,716 |
|
|
|
14,594,870 |
|
|
|
|
|
|
|
|
|
|
|
Equipment leased to
others under |
|
|
|
|
|
|
|
|
|
operating
leases |
|
233,866 |
|
|
|
203,212 |
|
|
|
224,580 |
|
|
|
229,905 |
|
|
|
198,931 |
|
Premises and equipment,
net |
|
28,910 |
|
|
|
29,108 |
|
|
|
28,908 |
|
|
|
38,594 |
|
|
|
38,977 |
|
Foreclosed assets,
net |
|
11,630 |
|
|
|
13,278 |
|
|
|
12,842 |
|
|
|
12,976 |
|
|
|
15,113 |
|
Deferred tax asset,
net |
|
65,321 |
|
|
|
70,354 |
|
|
|
88,765 |
|
|
|
94,112 |
|
|
|
27,073 |
|
Goodwill |
|
2,173,949 |
|
|
|
2,173,949 |
|
|
|
2,173,949 |
|
|
|
2,173,949 |
|
|
|
2,173,949 |
|
Core deposit and
customer |
|
|
|
|
|
|
|
|
|
relationship intangibles, net |
|
27,188 |
|
|
|
30,237 |
|
|
|
33,302 |
|
|
|
36,366 |
|
|
|
39,542 |
|
Other assets |
|
351,659 |
|
|
|
369,983 |
|
|
|
318,133 |
|
|
|
319,779 |
|
|
|
325,750 |
|
Total assets |
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
$ |
21,927,254 |
|
|
$ |
21,869,767 |
|
|
$ |
21,315,291 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
6,911,874 |
|
|
$ |
6,701,039 |
|
|
$ |
6,789,808 |
|
|
$ |
6,659,016 |
|
|
$ |
6,521,946 |
|
Interest-bearing
deposits |
|
9,861,371 |
|
|
|
10,173,938 |
|
|
|
9,541,200 |
|
|
|
9,211,595 |
|
|
|
9,123,722 |
|
Total deposits |
|
16,773,245 |
|
|
|
16,874,977 |
|
|
|
16,331,008 |
|
|
|
15,870,611 |
|
|
|
15,645,668 |
|
Borrowings |
|
250,399 |
|
|
|
217,454 |
|
|
|
460,609 |
|
|
|
905,812 |
|
|
|
541,011 |
|
Subordinated
debentures |
|
448,126 |
|
|
|
445,743 |
|
|
|
442,516 |
|
|
|
440,744 |
|
|
|
441,112 |
|
Accrued interest
payable and other |
|
|
|
|
|
|
|
|
|
liabilities |
|
160,494 |
|
|
|
148,798 |
|
|
|
185,015 |
|
|
|
173,545 |
|
|
|
144,905 |
|
Total liabilities |
|
17,632,264 |
|
|
|
17,686,972 |
|
|
|
17,419,148 |
|
|
|
17,390,712 |
|
|
|
16,772,696 |
|
STOCKHOLDERS'
EQUITY (1) |
|
4,610,668 |
|
|
|
4,559,905 |
|
|
|
4,508,106 |
|
|
|
4,479,055 |
|
|
|
4,542,595 |
|
Total liabilities and stockholders’ |
|
|
|
|
|
|
|
|
|
equity |
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
$ |
21,927,254 |
|
|
$ |
21,869,767 |
|
|
$ |
21,315,291 |
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
37.96 |
|
|
$ |
37.55 |
|
|
$ |
37.13 |
|
|
$ |
36.93 |
|
|
$ |
37.29 |
|
Tangible book value per
share (2) |
$ |
19.84 |
|
|
$ |
19.40 |
|
|
$ |
18.95 |
|
|
$ |
18.71 |
|
|
$ |
19.12 |
|
Shares outstanding |
|
121,449,794 |
|
|
|
121,448,321 |
|
|
|
121,408,133 |
|
|
|
121,283,669 |
|
|
|
121,817,524 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes net
unrealized gain on |
|
|
|
|
|
|
|
|
|
securities available-for-sale, net |
$ |
33,613 |
|
|
$ |
29,729 |
|
|
$ |
12,718 |
|
|
$ |
5,982 |
|
|
$ |
72,073 |
|
(2) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
FIVE QUARTER STATEMENT OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
235,666 |
|
|
$ |
234,618 |
|
|
$ |
224,178 |
|
|
$ |
238,223 |
|
|
$ |
225,370 |
|
Investment
securities |
|
24,762 |
|
|
|
24,689 |
|
|
|
23,039 |
|
|
|
23,403 |
|
|
|
22,187 |
|
Deposits in financial
institutions |
|
538 |
|
|
|
237 |
|
|
|
192 |
|
|
|
147 |
|
|
|
298 |
|
Total interest income |
|
260,966 |
|
|
|
259,544 |
|
|
|
247,409 |
|
|
|
261,773 |
|
|
|
247,855 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
13,071 |
|
|
|
10,205 |
|
|
|
8,377 |
|
|
|
7,369 |
|
|
|
7,247 |
|
Borrowings |
|
188 |
|
|
|
1,066 |
|
|
|
1,018 |
|
|
|
631 |
|
|
|
695 |
|
Subordinated
debentures |
|
6,017 |
|
|
|
5,800 |
|
|
|
5,562 |
|
|
|
5,468 |
|
|
|
5,278 |
|
Total interest expense |
|
19,276 |
|
|
|
17,071 |
|
|
|
14,957 |
|
|
|
13,468 |
|
|
|
13,220 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
241,690 |
|
|
|
242,473 |
|
|
|
232,452 |
|
|
|
248,305 |
|
|
|
234,635 |
|
Provision for credit
losses |
|
15,119 |
|
|
|
11,499 |
|
|
|
24,728 |
|
|
|
23,215 |
|
|
|
8,471 |
|
Net interest income after provision |
|
|
|
|
|
|
|
|
|
for credit losses |
|
226,571 |
|
|
|
230,974 |
|
|
|
207,724 |
|
|
|
225,090 |
|
|
|
226,164 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
3,465 |
|
|
|
3,510 |
|
|
|
3,758 |
|
|
|
3,557 |
|
|
|
3,488 |
|
Other commissions and
fees |
|
9,944 |
|
|
|
10,583 |
|
|
|
10,390 |
|
|
|
12,036 |
|
|
|
12,528 |
|
Leased equipment
income |
|
8,332 |
|
|
|
11,635 |
|
|
|
9,475 |
|
|
|
8,614 |
|
|
|
8,538 |
|
Gain on sale of loans
and leases |
|
2,848 |
|
|
|
649 |
|
|
|
712 |
|
|
|
119 |
|
|
|
157 |
|
Gain (loss) on sale of
securities |
|
1,236 |
|
|
|
1,651 |
|
|
|
(99 |
) |
|
|
515 |
|
|
|
382 |
|
FDIC loss sharing
expense, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other income |
|
5,557 |
|
|
|
7,254 |
|
|
|
10,878 |
|
|
|
4,054 |
|
|
|
1,827 |
|
Total noninterest income |
|
31,382 |
|
|
|
35,282 |
|
|
|
35,114 |
|
|
|
28,895 |
|
|
|
26,920 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Compensation |
|
64,413 |
|
|
|
65,288 |
|
|
|
64,880 |
|
|
|
66,013 |
|
|
|
62,661 |
|
Occupancy |
|
12,729 |
|
|
|
11,811 |
|
|
|
11,608 |
|
|
|
12,076 |
|
|
|
12,010 |
|
Data processing |
|
6,459 |
|
|
|
6,337 |
|
|
|
7,015 |
|
|
|
6,574 |
|
|
|
6,234 |
|
Other professional
services |
|
4,213 |
|
|
|
3,976 |
|
|
|
3,378 |
|
|
|
4,880 |
|
|
|
4,625 |
|
Insurance and
assessments |
|
4,702 |
|
|
|
4,856 |
|
|
|
4,791 |
|
|
|
4,124 |
|
|
|
4,324 |
|
Intangible asset
amortization |
|
3,049 |
|
|
|
3,065 |
|
|
|
3,064 |
|
|
|
3,176 |
|
|
|
4,224 |
|
Leased equipment
depreciation |
|
4,862 |
|
|
|
5,232 |
|
|
|
5,625 |
|
|
|
5,291 |
|
|
|
5,298 |
|
Foreclosed assets
expense (income), net |
|
2,191 |
|
|
|
(157 |
) |
|
|
143 |
|
|
|
2,693 |
|
|
|
(248 |
) |
Acquisition,
integration and |
|
|
|
|
|
|
|
|
|
reorganization costs |
|
1,450 |
|
|
|
1,700 |
|
|
|
500 |
|
|
|
- |
|
|
|
- |
|
Loan expense |
|
3,421 |
|
|
|
3,884 |
|
|
|
3,387 |
|
|
|
3,140 |
|
|
|
1,931 |
|
Other expense |
|
11,053 |
|
|
|
11,715 |
|
|
|
12,153 |
|
|
|
10,655 |
|
|
|
9,651 |
|
Total noninterest expense |
|
118,542 |
|
|
|
117,707 |
|
|
|
116,544 |
|
|
|
118,622 |
|
|
|
110,710 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes |
|
139,411 |
|
|
|
148,549 |
|
|
|
126,294 |
|
|
|
135,363 |
|
|
|
142,374 |
|
Income tax expense |
|
(37,945 |
) |
|
|
(54,902 |
) |
|
|
(47,626 |
) |
|
|
(49,716 |
) |
|
|
(48,479 |
) |
Net earnings |
$ |
101,466 |
|
|
$ |
93,647 |
|
|
$ |
78,668 |
|
|
$ |
85,647 |
|
|
$ |
93,895 |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share |
$ |
0.84 |
|
|
$ |
0.77 |
|
|
$ |
0.65 |
|
|
$ |
0.71 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
FIVE QUARTER SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
Return on
average assets (1) |
|
1.82 |
% |
|
|
1.71 |
% |
|
|
1.47 |
% |
|
|
1.59 |
% |
|
|
1.77 |
% |
Return on
average equity (1) |
|
8.77 |
% |
|
|
8.26 |
% |
|
|
7.08 |
% |
|
|
7.57 |
% |
|
|
8.24 |
% |
Return on
average tangible equity (1)(2) |
|
16.85 |
% |
|
|
16.06 |
% |
|
|
13.90 |
% |
|
|
14.88 |
% |
|
|
16.15 |
% |
|
|
|
|
|
|
|
|
|
|
Yield on
average loans and leases (1) |
|
6.01 |
% |
|
|
6.07 |
% |
|
|
5.94 |
% |
|
|
6.31 |
% |
|
|
6.17 |
% |
Yield on
average interest-earning |
|
|
|
|
|
|
|
|
|
assets
(1)(3) |
|
5.48 |
% |
|
|
5.57 |
% |
|
|
5.48 |
% |
|
|
5.76 |
% |
|
|
5.55 |
% |
Cost of
average total deposits (1) |
|
0.31 |
% |
|
|
0.25 |
% |
|
|
0.21 |
% |
|
|
0.19 |
% |
|
|
0.19 |
% |
Cost of
average time deposits (1) |
|
0.62 |
% |
|
|
0.55 |
% |
|
|
0.45 |
% |
|
|
0.40 |
% |
|
|
0.45 |
% |
Cost of
average interest-bearing |
|
|
|
|
|
|
|
|
|
liabilities (1) |
|
0.73 |
% |
|
|
0.65 |
% |
|
|
0.59 |
% |
|
|
0.52 |
% |
|
|
0.52 |
% |
Cost of
average funding sources (1) |
|
0.44 |
% |
|
|
0.40 |
% |
|
|
0.36 |
% |
|
|
0.32 |
% |
|
|
0.32 |
% |
Net
interest spread (1)(3) |
|
4.75 |
% |
|
|
4.92 |
% |
|
|
4.89 |
% |
|
|
5.24 |
% |
|
|
5.03 |
% |
Net
interest margin (1)(3) |
|
5.08 |
% |
|
|
5.21 |
% |
|
|
5.16 |
% |
|
|
5.47 |
% |
|
|
5.26 |
% |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
40.4 |
% |
|
|
40.3 |
% |
|
|
41.4 |
% |
|
|
40.1 |
% |
|
|
40.1 |
% |
Noninterest expense as a percentage |
|
|
|
|
|
|
|
|
|
of
average assets (1) |
|
2.15 |
% |
|
|
2.15 |
% |
|
|
2.18 |
% |
|
|
2.20 |
% |
|
|
2.09 |
% |
|
|
|
|
|
|
|
|
|
|
Average
Balances: |
|
|
|
|
|
|
|
|
|
Loans and
leases, net of deferred fees |
$ |
15,575,030 |
|
|
$ |
15,497,921 |
|
|
$ |
15,297,044 |
|
|
$ |
15,008,268 |
|
|
$ |
14,534,951 |
|
Interest-earning assets |
|
19,257,441 |
|
|
|
19,030,793 |
|
|
|
18,655,243 |
|
|
|
18,413,189 |
|
|
|
18,111,585 |
|
Total
assets |
|
22,137,874 |
|
|
|
21,936,602 |
|
|
|
21,645,534 |
|
|
|
21,427,950 |
|
|
|
21,072,053 |
|
Noninterest-bearing deposits |
|
6,858,816 |
|
|
|
6,646,349 |
|
|
|
6,595,346 |
|
|
|
6,496,221 |
|
|
|
6,274,294 |
|
Interest-bearing deposits |
|
10,024,554 |
|
|
|
9,692,352 |
|
|
|
9,330,235 |
|
|
|
9,327,080 |
|
|
|
9,107,305 |
|
Total
deposits |
|
16,883,370 |
|
|
|
16,338,701 |
|
|
|
15,925,581 |
|
|
|
15,823,301 |
|
|
|
15,381,599 |
|
Borrowings and subordinated |
|
|
|
|
|
|
|
|
|
debentures |
|
508,083 |
|
|
|
901,530 |
|
|
|
1,038,424 |
|
|
|
946,474 |
|
|
|
1,023,952 |
|
Interest-bearing liabilities |
|
10,532,637 |
|
|
|
10,593,882 |
|
|
|
10,368,659 |
|
|
|
10,273,554 |
|
|
|
10,131,257 |
|
Funding
sources |
|
17,391,453 |
|
|
|
17,240,231 |
|
|
|
16,964,005 |
|
|
|
16,769,775 |
|
|
|
16,405,551 |
|
Stockholders' equity |
|
4,592,489 |
|
|
|
4,545,276 |
|
|
|
4,503,675 |
|
|
|
4,501,948 |
|
|
|
4,530,701 |
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Non-PCI Credit
Quality: |
|
|
|
|
|
|
|
|
|
Allowance
for credit losses to loans |
|
|
|
|
|
|
|
|
|
and
leases held for investment |
|
1.11 |
% |
|
|
1.02 |
% |
|
|
1.08 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
Allowance
for credit losses to |
|
|
|
|
|
|
|
|
|
nonaccrual loans and leases held |
|
|
|
|
|
|
|
|
|
for
investment |
|
110.1 |
% |
|
|
92.2 |
% |
|
|
96.9 |
% |
|
|
94.5 |
% |
|
|
90.1 |
% |
Nonaccrual loans and leases held for |
|
|
|
|
|
|
|
|
|
investment to loans and leases held |
|
|
|
|
|
|
|
|
|
for
investment |
|
1.00 |
% |
|
|
1.11 |
% |
|
|
1.11 |
% |
|
|
1.11 |
% |
|
|
1.16 |
% |
Nonperforming assets to loans and |
|
|
|
|
|
|
|
|
|
leases
held for investment and |
|
|
|
|
|
|
|
|
|
foreclosed assets |
|
1.08 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.19 |
% |
|
|
1.27 |
% |
Nonperforming assets to total assets |
|
0.76 |
% |
|
|
0.84 |
% |
|
|
0.85 |
% |
|
|
0.84 |
% |
|
|
0.87 |
% |
Trailing
twelve month net charge-offs |
|
|
|
|
|
|
|
|
|
to
average loans and leases |
|
|
|
|
|
|
|
|
|
held for
investment |
|
0.35 |
% |
|
|
0.37 |
% |
|
|
0.24 |
% |
|
|
0.15 |
% |
|
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp
Consolidated |
|
|
|
|
|
|
|
|
|
Capital: |
|
|
|
|
|
|
|
|
|
Tier 1
leverage ratio (1) |
|
12.02 |
% |
|
|
11.90 |
% |
|
|
11.87 |
% |
|
|
11.91 |
% |
|
|
12.13 |
% |
Common
equity tier 1 capital ratio (1) |
|
12.52 |
% |
|
|
12.28 |
% |
|
|
12.31 |
% |
|
|
12.31 |
% |
|
|
12.83 |
% |
Tier 1
capital ratio (1) |
|
12.52 |
% |
|
|
12.28 |
% |
|
|
12.31 |
% |
|
|
12.31 |
% |
|
|
12.83 |
% |
Total
capital ratio (1) |
|
15.74 |
% |
|
|
15.42 |
% |
|
|
15.56 |
% |
|
|
15.56 |
% |
|
|
16.18 |
% |
Risk-weighted assets (1) |
$ |
19,086,798 |
|
|
$ |
19,084,823 |
|
|
$ |
18,732,723 |
|
|
$ |
18,568,622 |
|
|
$ |
17,713,506 |
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets ratio |
|
20.73 |
% |
|
|
20.50 |
% |
|
|
20.56 |
% |
|
|
20.48 |
% |
|
|
21.31 |
% |
Tangible
common equity ratio (2) |
|
12.02 |
% |
|
|
11.75 |
% |
|
|
11.67 |
% |
|
|
11.54 |
% |
|
|
12.19 |
% |
Book
value per share |
$ |
37.96 |
|
|
$ |
37.55 |
|
|
$ |
37.13 |
|
|
$ |
36.93 |
|
|
$ |
37.29 |
|
Tangible
book value per share (2) |
$ |
19.84 |
|
|
$ |
19.40 |
|
|
$ |
18.95 |
|
|
$ |
18.71 |
|
|
$ |
19.12 |
|
|
|
|
|
|
|
|
|
|
|
Pacific Western
Bank Capital: |
|
|
|
|
|
|
|
|
|
Tier 1
leverage ratio (1) |
|
11.46 |
% |
|
|
11.41 |
% |
|
|
11.36 |
% |
|
|
11.40 |
% |
|
|
11.54 |
% |
Common
equity tier 1 capital ratio (1) |
|
11.95 |
% |
|
|
11.79 |
% |
|
|
11.79 |
% |
|
|
11.78 |
% |
|
|
12.21 |
% |
Tier 1
capital ratio (1) |
|
11.95 |
% |
|
|
11.79 |
% |
|
|
11.79 |
% |
|
|
11.78 |
% |
|
|
12.21 |
% |
Total
capital ratio (1) |
|
12.89 |
% |
|
|
12.66 |
% |
|
|
12.74 |
% |
|
|
12.72 |
% |
|
|
13.15 |
% |
|
|
|
|
|
|
|
|
|
|
Equity to
assets ratio |
|
20.22 |
% |
|
|
20.07 |
% |
|
|
20.11 |
% |
|
|
20.02 |
% |
|
|
20.77 |
% |
Tangible
common equity ratio (2) |
|
11.45 |
% |
|
|
11.27 |
% |
|
|
11.16 |
% |
|
|
11.02 |
% |
|
|
11.56 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Capital
information for September 30, 2017 is preliminary. |
|
|
|
|
|
|
(2) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP
RECONCILIATION
This press release contains certain non-GAAP financial
disclosures for: (1) return on average tangible equity, (2)
tangible common equity ratio, and (3) tangible book value per
share. The Company uses these non-GAAP financial measures to
provide meaningful supplemental information regarding the Company’s
operational performance and to enhance investors’ overall
understanding of such financial performance. In particular,
the use of return on average tangible equity, tangible common
equity ratio, and tangible book value per share is prevalent among
banking regulators, investors and analysts. Accordingly, we
disclose the non-GAAP measures in addition to the related GAAP
measures of: (1) return on average equity, (2) equity to assets
ratio, and (3) book value per share.
The reconciliations for the following GAAP financial measures to
the non-GAAP financial measures are presented below: (1) return on
average equity to return on average tangible equity, (2) equity to
assets ratio to tangible common equity ratio, and (3) book value
per share to tangible book value per share.
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
Return on Average Tangible Equity |
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
Net
earnings |
$ |
101,466 |
|
|
$ |
93,647 |
|
|
$ |
93,895 |
|
|
$ |
273,781 |
|
|
$ |
266,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
stockholders' equity |
$ |
4,592,489 |
|
|
$ |
4,545,276 |
|
|
$ |
4,530,701 |
|
|
$ |
4,547,472 |
|
|
$ |
4,484,468 |
|
|
|
|
|
Less: |
Average intangible
assets |
|
2,202,922 |
|
|
|
2,205,814 |
|
|
|
2,217,564 |
|
|
|
2,205,927 |
|
|
|
2,222,346 |
|
|
|
|
|
Average
tangible common equity |
$ |
2,389,567 |
|
|
$ |
2,339,462 |
|
|
$ |
2,313,137 |
|
|
$ |
2,341,545 |
|
|
$ |
2,262,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average equity (1) |
|
8.77 |
% |
|
|
8.26 |
% |
|
|
8.24 |
% |
|
|
8.05 |
% |
|
|
7.94 |
% |
|
|
|
|
Return on
average tangible equity (2) |
|
16.85 |
% |
|
|
16.06 |
% |
|
|
16.15 |
% |
|
|
15.63 |
% |
|
|
15.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Annualized net earnings divided by average stockholders'
equity. |
|
|
|
|
|
|
|
|
|
|
(2)
Annualized net earnings divided by average tangible common
equity. |
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity Ratio/ |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
Tangible Book
Value Per Share |
|
2017 |
|
|
|
2017 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
PacWest Bancorp
Consolidated: |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
4,610,668 |
|
|
$ |
4,559,905 |
|
|
$ |
4,508,106 |
|
|
$ |
4,479,055 |
|
|
$ |
4,542,595 |
|
Less:
Intangible assets |
|
2,201,137 |
|
|
|
2,204,186 |
|
|
|
2,207,251 |
|
|
|
2,210,315 |
|
|
|
2,213,491 |
|
Tangible
common equity |
$ |
2,409,531 |
|
|
$ |
2,355,719 |
|
|
$ |
2,300,855 |
|
|
$ |
2,268,740 |
|
|
$ |
2,329,104 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
$ |
21,927,254 |
|
|
$ |
21,869,767 |
|
|
$ |
21,315,291 |
|
Less:
Intangible assets |
|
2,201,137 |
|
|
|
2,204,186 |
|
|
|
2,207,251 |
|
|
|
2,210,315 |
|
|
|
2,213,491 |
|
Tangible
assets |
$ |
20,041,795 |
|
|
$ |
20,042,691 |
|
|
$ |
19,720,003 |
|
|
$ |
19,659,452 |
|
|
$ |
19,101,800 |
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets ratio |
|
20.73 |
% |
|
|
20.50 |
% |
|
|
20.56 |
% |
|
|
20.48 |
% |
|
|
21.31 |
% |
Tangible
common equity ratio (1) |
|
12.02 |
% |
|
|
11.75 |
% |
|
|
11.67 |
% |
|
|
11.54 |
% |
|
|
12.19 |
% |
|
|
|
|
|
|
|
|
|
|
Book
value per share |
$ |
37.96 |
|
|
$ |
37.55 |
|
|
$ |
37.13 |
|
|
$ |
36.93 |
|
|
$ |
37.29 |
|
Tangible
book value per share (2) |
$ |
19.84 |
|
|
$ |
19.40 |
|
|
$ |
18.95 |
|
|
$ |
18.71 |
|
|
$ |
19.12 |
|
Shares
outstanding |
|
121,449,794 |
|
|
|
121,448,321 |
|
|
|
121,408,133 |
|
|
|
121,283,669 |
|
|
|
121,817,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Western
Bank: |
|
|
|
|
|
|
|
|
|
Stockholder's equity |
$ |
4,494,876 |
|
|
$ |
4,460,911 |
|
|
$ |
4,405,770 |
|
|
$ |
4,374,478 |
|
|
$ |
4,416,623 |
|
Less:
Intangible assets |
|
2,201,137 |
|
|
|
2,204,186 |
|
|
|
2,207,251 |
|
|
|
2,210,315 |
|
|
|
2,213,491 |
|
Tangible
common equity |
$ |
2,293,739 |
|
|
$ |
2,256,725 |
|
|
$ |
2,198,519 |
|
|
$ |
2,164,163 |
|
|
$ |
2,203,132 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
22,225,420 |
|
|
$ |
22,223,320 |
|
|
$ |
21,910,720 |
|
|
$ |
21,848,644 |
|
|
$ |
21,266,705 |
|
Less:
Intangible assets |
|
2,201,137 |
|
|
|
2,204,186 |
|
|
|
2,207,251 |
|
|
|
2,210,315 |
|
|
|
2,213,491 |
|
Tangible
assets |
$ |
20,024,283 |
|
|
$ |
20,019,134 |
|
|
$ |
19,703,469 |
|
|
$ |
19,638,329 |
|
|
$ |
19,053,214 |
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets ratio |
|
20.22 |
% |
|
|
20.07 |
% |
|
|
20.11 |
% |
|
|
20.02 |
% |
|
|
20.77 |
% |
Tangible
common equity ratio (1) |
|
11.45 |
% |
|
|
11.27 |
% |
|
|
11.16 |
% |
|
|
11.02 |
% |
|
|
11.56 |
% |
|
|
|
|
|
|
|
|
|
|
(1)
Tangible common equity divided by tangible assets. |
|
|
|
|
|
|
|
|
(2)
Tangible common equity divided by shares outstanding. |
|
|
|
|
|
|
|
|
Contact:
Donald D. Destino
Executive Vice President
Corporate Development and Investor Relations
Phone: 310-887-8521
PacWest Bancorp (NASDAQ:PACW)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
PacWest Bancorp (NASDAQ:PACW)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024