Attached files
| file | filename |
|---|---|
| 8-K - 8-K - PACWEST BANCORP | a14-17465_18k.htm |
Exhibit 99.1
PRESS RELEASE
|
PacWest Bancorp |
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|
(Nasdaq: PACW) |
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|
Contact: |
Matthew P. Wagner |
Victor R. Santoro |
|
|
President and CEO |
Executive Vice President and CFO |
|
|
10250 Constellation Boulevard |
10250 Constellation Boulevard |
|
|
Suite 1640 |
Suite 1640 |
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|
Los Angeles, CA 90067 |
Los Angeles, CA 90067 |
|
|
|
|
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Phone: |
310-728-1020 |
310-728-1021 |
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Fax: |
310-201-0498 |
310-201-0498 |
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FOR IMMEDIATE RELEASE |
July 22, 2014 |
PACWEST BANCORP ANNOUNCES RESULTS
FOR THE SECOND QUARTER OF 2014
Highlights
· CapitalSource Merger Closed April 7, 2014; Deposit System Converted April 12, 2014
· Net Earnings of $10.6 Million or $0.10 Per Diluted Share; Adjusted Net Earnings of $63.8 Million or $0.64 Per Diluted Share
· Net Interest Margin at 6.24%
· Loan and Lease Production of $881.3 Million; $143.0 Million of Organic Loan and Lease Growth in the Quarter
· Demand Deposits Increased $0.3 Billion in the Second Quarter and are 23% of Total Deposits
· Core Deposits Increased $1.0 Billion in the Second Quarter and are 49% of Total Deposits
Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the second quarter of 2014 of $10.6 million, or $0.10 per diluted share, compared to net earnings for the first quarter of 2014 of $25.1 million, or $0.55 per diluted share. When certain income and expense items described below are excluded, adjusted net earnings are $63.8 million, or $0.64 per diluted share.
Matt Wagner, President and CEO, commented, “The benefits of the CapitalSource merger are apparent in our second quarter results: record adjusted net earnings of $64 million, new loan and lease fundings of $881 million, organic loan and lease growth of $143 million, and significant progress in meeting our deposit transformation and cost savings targets. Our loan fundings were strong across both divisions, with the national lending platform embodied in the CapitalSource division originating $745 million in loans and leases and our Community Bank division originating $137 million in loans. Loan refinancings by other lenders as liberal pricing metrics continued, and the improving economy in our market areas enabled borrowers to either sell their properties or use excess cash balances to reduce outstandings. Nevertheless, our pipelines are robust and we expect continued high levels of loan and lease fundings.”
Mr. Wagner continued, “PacWest Bancorp is a very strong and well-positioned company. Our second quarter adjusted return on assets and adjusted return on tangible equity stood at 1.70% and 16.05%. Our tangible common equity ratio was 12.14% at June 30, well above the 10% target we set when we initiated the CapitalSource merger. The strengths of these financial metrics position us to support asset growth and produce solid earnings.”
Vic Santoro, Executive Vice President and CFO, stated “Our core net interest margin was 5.74% for the quarter, right about where we expected it to be. We have made great strides in reaching our cost savings targets, with our adjusted efficiency ratio at 43%. Our Deposit Solutions Team, which concentrates on generating core deposits from legacy CapitalSource borrowers, has achieved significant success so far with new core deposits of $95 million and a pipeline of almost $175 million. Overall, organic core deposit growth was $200 million in the second quarter, and our teams remain focused on gathering new deposits from all sources.”
FINANCIAL HIGHLIGHTS
|
|
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At or For the Three Months Ended |
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At or For the Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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|
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2014 |
|
2014 |
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Change |
|
2014 |
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2013 |
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Change |
| ||||||
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(Dollars in thousands, except per share data) |
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Financial Highlights: (1) |
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Total Assets |
|
$ |
15,684,866 |
|
$ |
6,517,853 |
|
$ |
9,167,013 |
|
$ |
15,684,866 |
|
$ |
6,709,102 |
|
$ |
8,975,764 |
|
|
Gross Loans and Leases |
|
11,200,524 |
|
4,161,085 |
|
7,039,439 |
|
11,200,524 |
|
4,420,619 |
|
6,779,905 |
| ||||||
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Total Deposits |
|
11,667,797 |
|
5,369,408 |
|
6,298,389 |
|
11,667,797 |
|
5,523,000 |
|
6,144,797 |
| ||||||
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Net Earnings |
|
10,555 |
|
25,080 |
|
(14,525 |
) |
35,635 |
|
17,843 |
|
17,792 |
| ||||||
|
Diluted Earnings Per Share |
|
$ |
0.10 |
|
$ |
0.55 |
|
$ |
(0.45 |
) |
$ |
0.49 |
|
$ |
0.47 |
|
$ |
0.02 |
|
|
Annualized Return on Average Assets |
|
0.28 |
% |
1.56 |
% |
(1.28 |
) |
0.67 |
% |
0.65 |
% |
0.02 |
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|
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Adjusted Net Earnings (2) |
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$ |
63,814 |
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$ |
22,570 |
|
$ |
41,244 |
|
$ |
86,384 |
|
$ |
33,797 |
|
$ |
52,587 |
|
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Adjusted Diluted Earnings Per Share |
|
$ |
0.64 |
|
$ |
0.48 |
|
$ |
0.16 |
|
$ |
1.18 |
|
$ |
0.90 |
|
$ |
0.28 |
|
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Annualized Adjusted Return on Average Assets (2) |
|
1.70 |
% |
1.41 |
% |
0.29 |
|
1.61 |
% |
1.22 |
% |
0.39 |
| ||||||
|
Annualized Return on Average Tangible Equity(2) |
|
2.65 |
% |
17.10 |
% |
(14.45 |
) |
6.55 |
% |
6.97 |
% |
(0.42 |
) | ||||||
|
Annualized Adjusted Return on Average Tangible Equity(2) |
|
16.05 |
% |
15.39 |
% |
0.66 |
|
15.88 |
% |
13.21 |
% |
2.67 |
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Noninterest-Bearing Deposits as a Percentage of Total Deposits |
|
23 |
% |
45 |
% |
(22 |
) |
23 |
% |
41 |
% |
(18 |
) | ||||||
|
Core Deposits as a Percentage of Total Deposits |
|
49 |
% |
88 |
% |
(39 |
) |
49 |
% |
85 |
% |
(36 |
) | ||||||
|
Tangible Common Equity Ratio (2) |
|
12.14 |
% |
9.68 |
% |
2.46 |
|
12.14 |
% |
8.83 |
% |
3.31 |
| ||||||
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Tangible Book Value Per Share(2) |
|
$ |
16.43 |
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$ |
13.31 |
|
$ |
3.12 |
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$ |
16.43 |
|
$ |
12.42 |
|
$ |
4.01 |
|
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Net Interest Margin |
|
6.24 |
% |
5.95 |
% |
0.29 |
|
6.14 |
% |
5.30 |
% |
0.84 |
| ||||||
|
Core Net Interest Margin (2) |
|
5.74 |
% |
5.42 |
% |
0.32 |
|
5.64 |
% |
5.27 |
% |
0.37 |
| ||||||
|
Efficiency Ratio |
|
84.5 |
% |
56.1 |
% |
28.4 |
|
75.7 |
% |
79.0 |
% |
(3.3 |
) | ||||||
|
Adjusted Efficiency Ratio (2) |
|
43.1 |
% |
57.1 |
% |
(14.0 |
) |
47.4 |
% |
62.9 |
% |
(15.5 |
) | ||||||
|
Annualized Operating Expense as a Percentage of Average Assets |
|
2.14 |
% |
3.15 |
% |
(1.01 |
) |
2.44 |
% |
3.26 |
% |
(0.82 |
) | ||||||
(1) Includes the acquisition of First California Financial Group, Inc. on May 31, 2013 and CapitalSource Inc. on April 7, 2014.
(2) Non-GAAP measure.
ADJUSTED EARNINGS
In evaluating its earnings, the Company removes certain items to arrive at Adjusted Net Earnings and Adjusted Diluted Earnings Per Share, as detailed below:
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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June 30, |
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2014 |
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2014 |
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2013 |
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2014 |
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2013 |
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(Dollars in thousands) |
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Reported net earnings |
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$ |
10,555 |
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$ |
25,080 |
|
$ |
4,349 |
|
$ |
35,635 |
|
$ |
17,843 |
|
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Subtract: Tax benefit on discontinued operations |
|
(476 |
) |
(588 |
) |
(34 |
) |
(1,064 |
) |
(34 |
) | |||||
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Add: Tax expense on continuing operations |
|
14,846 |
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14,576 |
|
1,906 |
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29,422 |
|
9,625 |
| |||||
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Reported pre-tax earnings |
|
24,925 |
|
39,068 |
|
6,221 |
|
63,993 |
|
27,434 |
| |||||
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Add: Acquisition, integration and reorganization costs |
|
86,242 |
|
2,200 |
|
17,997 |
|
88,442 |
|
18,689 |
| |||||
|
Subtract: FDIC loss sharing expense, net |
|
(8,525 |
) |
(11,430 |
) |
(5,410 |
) |
(19,955 |
) |
(8,547 |
) | |||||
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(Loss) gain on sale of loans and leases |
|
(485 |
) |
106 |
|
279 |
|
(379 |
) |
504 |
| |||||
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Gain on securities |
|
89 |
|
4,752 |
|
— |
|
4,841 |
|
409 |
| |||||
|
Covered OREO income, net |
|
185 |
|
1,615 |
|
94 |
|
1,800 |
|
907 |
| |||||
|
Gain on sale of owned office building |
|
— |
|
1,570 |
|
— |
|
1,570 |
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— |
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Adjusted pre-tax earnings before accelerated discount accretion on acquired loan payoffs |
|
119,903 |
|
44,655 |
|
29,255 |
|
164,558 |
|
52,850 |
| |||||
|
Subtract: Accelerated discount accretion resulting from payoffs of acquired loans |
|
15,290 |
|
7,655 |
|
177 |
|
22,945 |
|
854 |
| |||||
|
Adjusted pre-tax earnings |
|
104,613 |
|
37,000 |
|
29,078 |
|
141,613 |
|
51,996 |
| |||||
|
Tax expense (1) |
|
(40,799 |
) |
(14,430 |
) |
(10,177 |
) |
(55,229 |
) |
(18,199 |
) | |||||
|
Adjusted net earnings |
|
$ |
63,814 |
|
$ |
22,570 |
|
$ |
18,901 |
|
$ |
86,384 |
|
$ |
33,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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Annualized adjusted return on average assets |
|
1.70 |
% |
1.41 |
% |
1.31 |
% |
1.61 |
% |
1.22 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Adjusted diluted earnings per share |
|
$ |
0.64 |
|
$ |
0.48 |
|
$ |
0.48 |
|
$ |
1.18 |
|
$ |
0.90 |
|
(1) Full-year expected effective rate of 39% used in 2014 periods and actual effective rate of 35% used in 2013 periods.
INCOME STATEMENT HIGHLIGHTS
Net Interest Income
Net interest income increased by $106.5 million to $192.5 million for the second quarter of 2014 compared to $86.0 million for the first quarter of 2014 due to the significant increase in interest-earning assets from the CapitalSource merger. Net interest margin (“NIM”) for the second quarter of 2014 was 6.24%, compared to 5.95% for the first quarter of 2014. The 29 basis point increase in NIM was driven by the increase in interest-earning assets, which resulted from loans and leases added with the CapitalSource merger and organic loan growth during the quarter. Loan yield for the second quarter of 2014 was 7.34%, compared to 7.42% for the first quarter of 2014. The impact on the loan yield from accelerated discount accretion resulting from acquired loan payoffs was 58 basis points in the second quarter compared to 74 basis points in the first quarter. The total cost of deposits increased to 0.26% from 0.09% in the prior quarter due primarily to the higher-cost time deposits acquired in the CapitalSource merger.
Net interest margin information is presented in the following table for the periods indicated:
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|
|
Three Months Ended |
| ||||
|
|
|
June 30, |
|
March 31, |
| ||
|
Net Interest Margin |
|
2014 |
|
2014 |
| ||
|
|
|
(Dollars in thousands) |
| ||||
|
Average Assets: |
|
|
|
|
| ||
|
Loans and leases |
|
$ |
10,500,521 |
|
$ |
4,231,319 |
|
|
Investment securities |
|
1,606,848 |
|
1,512,694 |
| ||
|
Deposits in financial institutions |
|
276,095 |
|
118,682 |
| ||
|
Average interest-earning assets |
|
12,383,464 |
|
5,862,695 |
| ||
|
Other assets |
|
2,653,637 |
|
650,681 |
| ||
|
Average total assets |
|
$ |
15,037,101 |
|
$ |
6,513,376 |
|
|
|
|
|
|
|
| ||
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Average Liabilities: |
|
|
|
|
| ||
|
Interest-bearing deposits |
|
$ |
8,629,482 |
|
$ |
2,968,994 |
|
|
Borrowings |
|
39,931 |
|
18,176 |
| ||
|
Subordinated debentures |
|
409,934 |
|
132,696 |
| ||
|
Average interest-bearing liabilities |
|
9,079,347 |
|
3,119,866 |
| ||
|
Noninterest-bearing demand deposits |
|
2,546,540 |
|
2,374,325 |
| ||
|
Other liabilities |
|
178,196 |
|
198,937 |
| ||
|
Average total liabilities |
|
11,804,083 |
|
5,693,128 |
| ||
|
Average stockholders’ equity |
|
3,233,018 |
|
820,248 |
| ||
|
Average liabilities and stockholders’ equity |
|
$ |
15,037,101 |
|
$ |
6,513,376 |
|
|
|
|
|
|
|
| ||
|
Average time deposits |
|
$ |
5,613,601 |
|
$ |
666,463 |
|
|
Average total deposits |
|
$ |
11,176,022 |
|
$ |
5,343,319 |
|
|
Average funding sources |
|
$ |
11,625,887 |
|
$ |
5,494,191 |
|
|
|
|
|
|
|
| ||
|
Yield on: |
|
|
|
|
| ||
|
Average loans and leases |
|
7.34 |
% |
7.42 |
% | ||
|
Average investment securities |
|
2.99 |
% |
2.90 |
% | ||
|
Average interest-earning assets |
|
6.62 |
% |
6.11 |
% | ||
|
|
|
|
|
|
| ||
|
Cost of: |
|
|
|
|
| ||
|
Average total deposits cost |
|
0.26 |
% |
0.09 |
% | ||
|
Average time deposits |
|
0.42 |
% |
0.31 |
% | ||
|
Average interest-bearing deposits |
|
0.34 |
% |
0.17 |
% | ||
|
Average borrowings |
|
2.00 |
% |
1.76 |
% | ||
|
Average subordinated debentures |
|
4.22 |
% |
3.18 |
% | ||
|
Average interest-bearing liabilities |
|
0.52 |
% |
0.30 |
% | ||
|
Average funding sources |
|
0.41 |
% |
0.17 |
% | ||
|
|
|
|
|
|
| ||
|
Net interest rate spread |
|
6.10 |
% |
5.81 |
% | ||
|
Net interest margin |
|
6.24 |
% |
5.95 |
% | ||
The NIM and loan and lease yield are impacted by accelerated accretion of acquisition discounts resulting from acquired loan payoffs that cause volatility. The effects of this item are shown in the following table for the periods indicated:
|
|
|
Three Months Ended |
|
Three Months Ended |
| ||||
|
|
|
June 30, 2014 |
|
March 31, 2014 |
| ||||
|
|
|
|
|
Loan and |
|
|
|
Loan and |
|
|
|
|
NIM |
|
Lease Yield |
|
NIM |
|
Lease Yield |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
6.24 |
% |
7.34 |
% |
5.95 |
% |
7.42 |
% |
|
Less: Accelerated accretion of acquisition discounts resulting from acquired loan payoffs |
|
(0.50 |
)% |
(0.58 |
)% |
(0.53 |
)% |
(0.74 |
)% |
|
Core (non-GAAP measure) |
|
5.74 |
% |
6.76 |
% |
5.42 |
% |
6.68 |
% |
Noninterest Income
Noninterest income increased by $3.8 million to $8.5 million for the second quarter of 2014 from $4.7 million for the first quarter of 2014. The increase was due mostly to income streams gained in the CapitalSource merger, including certain other commissions and fees and leased equipment income, and lower FDIC loss sharing expense offset by lower gain on asset sales and other income. The increase in other commissions and fees is due to higher unused commitment fees, letter of credit fees and prepayment fees of $3.1 million, all attributed to the added CapitalSource operations. FDIC loss sharing expense, which relates to four loss sharing agreements with the FDIC, decreased due to lower gain on sales of covered OREO and lower losses on the FDIC loss sharing asset. Covered assets totaled $399.0 million at June 30, 2014 and $421.2 million at March 31, 2014.
The following table presents details of noninterest income for the periods indicated:
|
|
|
Three Months Ended |
| |||||||
|
|
|
June 30, |
|
March 31, |
|
Increase |
| |||
|
Noninterest Income |
|
2014 |
|
2014 |
|
(Decrease) |
| |||
|
|
|
(In thousands) |
| |||||||
|
|
|
|
|
|
|
|
| |||
|
Service charges on deposit accounts |
|
$ |
2,719 |
|
$ |
3,002 |
|
$ |
(283 |
) |
|
Other commissions and fees |
|
5,743 |
|
1,932 |
|
3,811 |
| |||
|
Leased equipment income |
|
5,672 |
|
— |
|
5,672 |
| |||
|
(Loss) gain on sale of loans and leases |
|
(485 |
) |
106 |
|
(591 |
) | |||
|
Gain on securities |
|
89 |
|
4,752 |
|
(4,663 |
) | |||
|
FDIC loss sharing expense, net |
|
(8,525 |
) |
(11,430 |
) |
2,905 |
| |||
|
Other income: |
|
|
|
|
|
|
| |||
|
Income recognized on early repayment of leases |
|
961 |
|
3,505 |
|
(2,544 |
) | |||
|
Gain on sale of owned office building |
|
— |
|
1,570 |
|
(1,570 |
) | |||
|
Other |
|
2,305 |
|
1,254 |
|
1,051 |
| |||
|
Total noninterest income |
|
$ |
8,479 |
|
$ |
4,691 |
|
$ |
3,788 |
|
The following table presents the details of FDIC loss sharing expense for the periods indicated:
|
|
|
Three Months Ended |
| |||||||
|
|
|
June 30, |
|
March 31, |
|
Increase |
| |||
|
FDIC Loss Sharing Expense, Net |
|
2014 |
|
2014 |
|
(Decrease) |
| |||
|
|
|
(In thousands) |
| |||||||
|
|
|
|
|
|
|
|
| |||
|
Gain (loss) on FDIC loss sharing asset |
|
$ |
(991 |
) |
$ |
(2,206 |
) |
$ |
1,215 |
|
|
FDIC loss sharing asset amortization, net |
|
(7,270 |
) |
(7,912 |
) |
642 |
| |||
|
Net reimbursement (to) from FDIC for covered OREOs |
|
(175 |
) |
(1,224 |
) |
1,049 |
| |||
|
Other |
|
(89 |
) |
(88 |
) |
(1 |
) | |||
|
FDIC loss sharing expense, net |
|
$ |
(8,525 |
) |
$ |
(11,430 |
) |
$ |
2,905 |
|
Noninterest Expense
Noninterest expense increased by $119.0 million to $169.9 million for the second quarter of 2014 compared to $50.9 million for the first quarter of 2014. The increase was due mostly to higher acquisition, integration and reorganization costs related to the CapitalSource merger, which increased $84.0 million, and higher operating expenses of $29.5 million. The second quarter acquisition, integration and reorganization costs of $86.2 million included CapitalSource merger expenses, such as investment banking, legal and accounting fees, lease terminations, and change in control payments, as well as $7.5 million to write off goodwill and other intangibles relating to the reorganization of the legacy PacWest asset financing segment, which included the sale of certain of its assets.
Operating expenses increased to $80.1 million for the second quarter of 2014 compared to $50.5 million for the first quarter of 2014 due to including the CapitalSource operations after the April 7, 2014 merger date. As a result of the merger, the number of employees increased to approximately 1,450 at June 30 from approximately 1,100 at March 31, and nine branch locations and administrative offices were added.
The following table presents details of noninterest expense for the periods indicated:
|
|
|
Three Months Ended |
| |||||||
|
|
|
June 30, |
|
March 31, |
|
Increase |
| |||
|
Noninterest Expense |
|
2014 |
|
2014 |
|
(Decrease) |
| |||
|
|
|
(In thousands) |
| |||||||
|
|
|
|
|
|
|
|
| |||
|
Compensation |
|
$ |
45,081 |
|
$ |
28,627 |
|
$ |
16,454 |
|
|
Occupancy |
|
11,078 |
|
7,595 |
|
3,483 |
| |||
|
Data processing |
|
4,099 |
|
2,540 |
|
1,559 |
| |||
|
Other professional services |
|
2,843 |
|
1,523 |
|
1,320 |
| |||
|
Insurance and assessments |
|
3,179 |
|
1,593 |
|
1,586 |
| |||
|
Intangible asset amortization |
|
1,677 |
|
1,364 |
|
313 |
| |||
|
Other expense: |
|
|
|
|
|
|
| |||
|
Loan expense |
|
3,024 |
|
1,194 |
|
1,830 |
| |||
|
Communications |
|
1,421 |
|
737 |
|
684 |
| |||
|
Other |
|
7,670 |
|
5,357 |
|
2,313 |
| |||
|
Total operating expense |
|
80,072 |
|
50,530 |
|
29,542 |
| |||
|
Leased equipment depreciation |
|
3,095 |
|
— |
|
3,095 |
| |||
|
Foreclosed assets expense (income), net |
|
497 |
|
(1,861 |
) |
2,358 |
| |||
|
Acquisition, integration and reorganization costs |
|
86,242 |
|
2,200 |
|
84,042 |
| |||
|
Total noninterest expense |
|
$ |
169,906 |
|
$ |
50,869 |
|
$ |
119,037 |
|
Income Taxes
Our overall effective income tax rate was 57.7% for the second quarter of 2014 and 35.8% for the first quarter of 2014. The second quarter effective tax rate was driven higher than normal by the non-deductibility and tax treatment of certain acquisition, integration and reorganization costs. When these items are excluded, our adjusted effective tax rate was 40.2% for the second quarter.
BALANCE SHEET HIGHLIGHTS
Loans and Leases
Total loans and leases increased $7.0 billion in the second quarter to $11.2 billion at June 30, 2014. Excluding the $6.9 billion of loans and leases acquired in the CapitalSource merger, loans and leases increased by $143.0 million in the second quarter.
The following table presents a roll forward of the loan and lease portfolio for the periods indicated:
|
|
|
Three Months Ended |
| ||||
|
Loan and Lease Roll Forward (1) |
|
June 30, 2014 |
|
March 31, 2014 |
| ||
|
|
|
(In thousands) |
| ||||
|
|
|
|
|
|
| ||
|
Beginning balance |
|
$ |
4,161,067 |
|
$ |
4,312,352 |
|
|
Loans and leases originated and purchased |
|
881,281 |
|
167,986 |
| ||
|
Existing loans and leases: |
|
|
|
|
| ||
|
Principal repayments, net (2) |
|
(715,422 |
) |
(316,686 |
) | ||
|
Loan and lease sales |
|
(21,371 |
) |
(1,022 |
) | ||
|
Transfers to foreclosed assets |
|
(655 |
) |
(13 |
) | ||
|
Charge-offs |
|
(830 |
) |
(1,550 |
) | ||
|
Loans and leases acquired through acquisition |
|
6,886,035 |
|
— |
| ||
|
Ending balance |
|
$ |
11,190,105 |
|
$ |
4,161,067 |
|
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.
(2) Includes principal repayments on existing loans, changes in revolving lines of credit (repayments and draws) and other changes within the loan portfolio.
The following table presents a roll forward of the loan and lease portfolio by segment for the period indicated:
|
|
|
Three Months Ended June 30, 2014 |
| |||||||
|
|
|
Community |
|
National |
|
|
| |||
|
Loan and Lease Roll Forward by Segment |
|
Banking |
|
Lending |
|
Total |
| |||
|
|
|
(In thousands) |
| |||||||
|
Beginning balance |
|
$ |
4,161,067 |
|
$ |
— |
|
$ |
4,161,067 |
|
|
|
|
|
|
|
|
|
| |||
|
Loans and leases originated and purchased |
|
136,724 |
|
744,557 |
|
881,281 |
| |||
|
Existing loans and leases: |
|
|
|
|
|
|
| |||
|
Transfers between segments |
|
(523,416 |
) |
523,416 |
|
— |
| |||
|
Principal repayments, net |
|
(243,382 |
) |
(472,040 |
) |
(715,422 |
) | |||
|
Loan and lease sales |
|
(8,675 |
) |
(12,696 |
) |
(21,371 |
) | |||
|
Transfers to foreclosed assets |
|
(655 |
) |
— |
|
(655 |
) | |||
|
Charge-offs |
|
(296 |
) |
(534 |
) |
(830 |
) | |||
|
Loans and leases acquired through acquisition |
|
— |
|
6,886,035 |
|
6,886,035 |
| |||
|
Ending balance |
|
$ |
3,521,367 |
|
$ |
7,668,738 |
|
$ |
11,190,105 |
|
The following table presents the composition of our loan and lease portfolio as of the dates indicated:
|
Loan and Lease Portfolio |
|
June 30, 2014 |
|
March 31, 2014 |
| ||
|
|
|
(In thousands) |
| ||||
|
Real estate mortgage: |
|
|
|
|
| ||
|
Hospitality |
|
$ |
560,832 |
|
$ |
172,012 |
|
|
SBA |
|
352,492 |
|
42,318 |
| ||
|
Other |
|
4,682,258 |
|
2,427,756 |
| ||
|
Total real estate mortgage |
|
5,595,582 |
|
2,642,086 |
| ||
|
Real estate construction: |
|
|
|
|
| ||
|
Residential |
|
73,488 |
|
62,115 |
| ||
|
Commercial |
|
235,018 |
|
187,804 |
| ||
|
Total real estate construction |
|
308,506 |
|
249,919 |
| ||
|
Commercial: |
|
|
|
|
| ||
|
Collateralized |
|
446,754 |
|
580,742 |
| ||
|
Unsecured |
|
145,632 |
|
143,624 |
| ||
|
Asset-based |
|
1,488,267 |
|
200,574 |
| ||
|
Cash flow |
|
2,167,135 |
|
— |
| ||
|
Equipment finance |
|
932,554 |
|
249,736 |
| ||
|
SBA |
|
42,333 |
|
27,339 |
| ||
|
Total commercial |
|
5,222,675 |
|
1,202,015 |
| ||
|
Consumer |
|
63,342 |
|
67,047 |
| ||
|
Total Loans and Leases |
|
$ |
11,190,105 |
|
$ |
4,161,067 |
|
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
|
|
|
June 30, 2014 |
|
March 31, 2014 |
| ||||||
|
|
|
|
|
% of |
|
|
|
% of |
| ||
|
Deposit Category |
|
Amount |
|
Total |
|
Amount |
|
Total |
| ||
|
|
|
(Dollars in thousands) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||
|
Noninterest-bearing demand deposits |
|
$ |
2,701,434 |
|
23 |
% |
$ |
2,391,609 |
|
45 |
% |
|
Interest checking deposits |
|
587,418 |
|
5 |
% |
613,144 |
|
11 |
% | ||
|
Money market deposits |
|
1,688,773 |
|
14 |
% |
1,489,068 |
|
28 |
% | ||
|
Savings deposits |
|
760,553 |
|
7 |
% |
226,012 |
|
4 |
% | ||
|
Total core deposits |
|
5,738,178 |
|
49 |
% |
4,719,833 |
|
88 |
% | ||
|
Time deposits under $100,000 |
|
2,251,473 |
|
19 |
% |
209,512 |
|
4 |
% | ||
|
Time deposits of $100,000 and over |
|
3,678,146 |
|
32 |
% |
440,063 |
|
8 |
% | ||
|
Total time deposits |
|
5,929,619 |
|
51 |
% |
649,575 |
|
12 |
% | ||
|
Total deposits |
|
$ |
11,667,797 |
|
100 |
% |
$ |
5,369,408 |
|
100 |
% |
The following table summarizes the maturities of our time deposits as of the date indicated:
|
|
|
June 30, 2014 |
| |||||||||||
|
|
|
Time Deposits |
|
Time Deposits |
|
Total |
|
|
|
Estimated |
| |||
|
|
|
Under |
|
$100,000 |
|
Time |
|
Contractual |
|
Effective |
| |||
|
Time Deposit Maturities |
|
$100,000 |
|
or More |
|
Deposits |
|
Rate |
|
Rate |
| |||
|
|
|
(Dollars in thousands) |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Due in three months or less |
|
$ |
842,413 |
|
$ |
1,467,897 |
|
$ |
2,310,310 |
|
0.84 |
% |
0.62 |
% |
|
Due in over three months through six months |
|
548,254 |
|
845,683 |
|
1,393,937 |
|
0.88 |
% |
0.70 |
% | |||
|
Due in over six months through twelve months |
|
630,769 |
|
983,575 |
|
1,614,344 |
|
0.91 |
% |
0.78 |
% | |||
|
Due in over 12 months through 24 months |
|
169,043 |
|
264,693 |
|
433,736 |
|
1.05 |
% |
0.73 |
% | |||
|
Due in over 24 months |
|
60,994 |
|
116,298 |
|
177,292 |
|
1.02 |
% |
0.72 |
% | |||
|
Total |
|
$ |
2,251,473 |
|
$ |
3,678,146 |
|
$ |
5,929,619 |
|
0.89 |
% |
0.69 |
% |
At June 30, 2014, core deposits totaled $5.7 billion, or 49% of total deposits, and noninterest-bearing demand deposits, which totaled $2.7 billion, were 23% of total deposits. Total deposits increased $6.3 billion during the second quarter to $11.7 billion at June 30, 2014, including an increase in core deposits of $1.0 billion. The increase in the quarter was due to $6.2 billion of deposits acquired in the CapitalSource merger, including $5.3 billion of time deposits with a weighted average rate of 98 basis points and a weighted average effective cost of 70 basis points. The purchase accounting discount on acquired time deposits totaled $17.2 million, and the remaining unamortized time deposit discount at June 30, 2014 was $11.6 million with a weighted average life of seven months.
ALLOWANCE FOR CREDIT LOSSES
The allowance for Non-PCI credit losses was $72.4 million or 0.67% of Non-PCI loans and leases at June 30, 2014, compared to $67.0 million, or 1.75% of Non-PCI loans and leases at March 31, 2014. We made a provision for credit losses of $5.0 million in the second quarter of 2014 in accordance with our loan methodology, which takes into consideration new loan and lease fundings, commitments to make loans and leases, and underlying credit quality trends. The decrease in the credit loss ratio was due to the loans acquired in the CapitalSource merger for which there is no initial credit loss allowance. All acquired loans are initially recorded at their estimated fair value with such initial fair value including an estimate of credit losses. We present the two additional credit coverage ratios shown in the table below to give an indication of overall credit risk coverage:
|
|
|
June 30, 2014 |
|
March 31, 2014 |
| ||||||||||||
|
|
|
Non-PCI |
|
|
|
|
|
Non-PCI |
|
|
|
|
| ||||
|
Credit Risk Coverage Ratios |
|
Loans and |
|
Allowance/ |
|
Coverage |
|
Loans and |
|
Allowance/ |
|
Coverage |
| ||||
|
(Excludes PCI Loans) |
|
Leases |
|
Discount |
|
Ratio |
|
Leases |
|
Discount |
|
Ratio |
| ||||
|
|
|
(Dollars in thousands) |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Ending balance |
|
$ |
10,791,634 |
|
$ |
72,367 |
|
0.67 |
% |
$ |
3,828,569 |
|
$ |
66,955 |
|
1.75 |
% |
|
Acquired loans |
|
(7,327,541 |
) |
(500 |
)(1) |
|
|
(1,001,248 |
) |
(737 |
)(1) |
|
| ||||
|
Adjusted balance |
|
$ |
3,464,093 |
|
$ |
71,867 |
|
2.07 |
% |
$ |
2,827,321 |
|
$ |
66,218 |
|
2.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Ending Balance |
|
$ |
10,791,634 |
|
$ |
72,367 |
|
0.67 |
% |
$ |
3,828,569 |
|
$ |
66,955 |
|
1.75 |
% |
|
Unamortized net discount |
|
184,927 |
|
184,927 |
(2) |
|
|
31,607 |
|
31,607 |
(2) |
|
| ||||
|
Adjusted balance |
|
$ |
10,976,561 |
|
$ |
257,294 |
|
2.34 |
% |
$ |
3,860,176 |
|
$ |
98,562 |
|
2.55 |
% |
(1) Allowance attributed to $7.3 billion and $1.0 billion of acquired Non-PCI loans at June 30, 2014 and March 31, 2014, based on the allowance calculation that includes an amount for credit deterioration on acquired loans and leases since their acquisition dates.
(2) Unamortized net discount relates to $7.3 billion and $1.0 billion of acquired loans at June 30, 2014 and March 31, 2014, and is assigned specifically to those loans only. Such discount represents the acquisition date fair value adjustment based on market, liquidity and interest rate risk in addition to credit risk and is being accreted to interest income over the remaining life of the respective loans.
CREDIT QUALITY
The following table presents our Non-PCI loan and lease credit quality metrics as of the dates indicated:
|
|
|
June 30, |
|
March 31, |
| ||
|
Non-PCI Credit Quality Metrics |
|
2014 |
|
2014 |
| ||
|
|
|
(Dollars in thousands) |
| ||||
|
|
|
|
|
|
| ||
|
Allowance for credit losses |
|
$ |
72,367 |
|
$ |
66,955 |
|
|
Nonaccrual loans and leases (1) |
|
96,802 |
|
58,121 |
| ||
|
Classified loans and leases (2) |
|
304,627 |
|
150,517 |
| ||
|
Performing restructured loans |
|
33,741 |
|
35,101 |
| ||
|
Net charge-offs (recoveries) (for the quarter) |
|
(412 |
) |
861 |
| ||
|
Provision for credit losses (for the quarter) |
|
5,000 |
|
— |
| ||
|
Allowance for credit losses to loans and leases |
|
0.67 |
% |
1.75 |
% | ||
|
Allowance for credit losses to nonaccrual loans and leases |
|
74.8 |
% |
115.2 |
% | ||
|
Nonperforming assets to loans and leases and foreclosed assets |
|
1.39 |
% |
2.81 |
% | ||
|
Classified loans and leases to loans and leases |
|
2.82 |
% |
3.93 |
% | ||
(1) At June 30, 2014, includes $37,515 of acquired loans and leases with no allowance due to fair value accounting.
(2) Classified loans and leases are those with a credit risk rating of substandard or doubtful.
The following table presents our nonperforming assets as of the dates indicated:
|
|
|
June 30, |
|
March 31, |
| ||
|
|
|
2014 |
|
2014 |
| ||
|
|
|
(Dollars in thousands) |
| ||||
|
|
|
|
|
|
| ||
|
Nonaccrual Non-PCI loans and leases |
|
$ |
96,802 |
|
$ |
58,121 |
|
|
Nonaccrual PCI loans (1) |
|
38,467 |
|
— |
| ||
|
Foreclosed assets, net |
|
53,821 |
|
50,895 |
| ||
|
Total nonperforming assets |
|
$ |
189,090 |
|
$ |
109,016 |
|
|
Nonperforming assets to loans and leases and foreclosed assets |
|
1.68 |
% |
2.64 |
% | ||
(1) Represents four legacy CapitalSource borrowing relationships placed on nonaccrual status as of the acquisition date.
The following table presents our 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:
|
|
|
Nonaccrual Loans and Leases |
|
Accruing and |
| ||||||||||||
|
|
|
June 30, 2014 |
|
March 31, 2014 |
|
30 - 89 Days Past Due |
| ||||||||||
|
|
|
|
|
% of |
|
|
|
% of |
|
June 30, |
|
March 31, |
| ||||
|
|
|
|
|
Loan |
|
|
|
Loan |
|
2014 |
|
2014 |
| ||||
|
|
|
Balance |
|
Category |
|
Balance |
|
Category |
|
Balance |
|
Balance |
| ||||
|
|
|
(Dollars in thousands) |
| ||||||||||||||
|
Real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Hospitality |
|
$ |
6,552 |
|
1 |
% |
$ |
6,639 |
|
4 |
% |
$ |
— |
|
$ |
— |
|
|
SBA |
|
8,032 |
|
2 |
% |
2,519 |
|
6 |
% |
1,233 |
|
1,092 |
| ||||
|
Other |
|
28,098 |
|
1 |
% |
29,701 |
|
1 |
% |
1,427 |
|
1,831 |
| ||||
|
Total real estate mortgage |
|
42,682 |
|
1 |
% |
38,859 |
|
2 |
% |
2,660 |
|
2,923 |
| ||||
|
Real estate construction: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Residential |
|
927 |
|
1 |
% |
387 |
|
1 |
% |
— |
|
— |
| ||||
|
Commercial |
|
2,737 |
|
1 |
% |
3,353 |
|
2 |
% |
— |
|
— |
| ||||
|
Total real estate construction |
|
3,664 |
|
1 |
% |
3,740 |
|
2 |
% |
— |
|
— |
| ||||
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Collateralized |
|
11,247 |
|
3 |
% |
7,797 |
|
1 |
% |
575 |
|
140 |
| ||||
|
Unsecured |
|
322 |
|
— |
% |
411 |
|
— |
% |
145 |
|
— |
| ||||
|
Asset-based |
|
4,874 |
|
— |
% |
558 |
|
— |
% |
— |
|
— |
| ||||
|
Cash flow |
|
15,793 |
|
1 |
% |
— |
|
— |
% |
— |
|
— |
| ||||
|
Equipment finance |
|
10,576 |
|
1 |
% |
220 |
|
— |
% |
— |
|
4,075 |
| ||||
|
SBA |
|
4,096 |
|
10 |
% |
2,993 |
|
11 |
% |
75 |
|
387 |
| ||||
|
Total commercial |
|
46,908 |
|
1 |
% |
11,979 |
|
1 |
% |
795 |
|
4,602 |
| ||||
|
Consumer |
|
3,548 |
|
6 |
% |
3,543 |
|
5 |
% |
128 |
|
307 |
| ||||
|
Total Non-PCI loans and leases |
|
96,802 |
|
1 |
% |
58,121 |
|
2 |
% |
3,583 |
|
7,832 |
| ||||
|
PCI loans |
|
38,467 |
|
10 |
% |
— |
|
— |
% |
* |
(1) |
* |
(1) | ||||
|
Total loans and leases |
|
$ |
135,269 |
|
1 |
% |
$ |
58,121 |
|
1 |
% |
$ |
3,583 |
|
$ |
7,832 |
|
(1) PCI loans, regardless of the underlying payment status of the borrower, are generally considered accruing and performing when reasonably estimable cash flows support the carrying amount of the loans. At June 30, 2014, the amount of PCI loans with borrowers past due 30-89 days totaled $53.9 million, of which $24.2 million were on nonaccrual status, and the amount past due 90 or more days totaled $64.0 million of which $14.2 million were on nonaccrual status. At March 31, 2014, the amount of PCI loans with borrowers past due 30-89 days and past due 90 or more days totaled $3.1 million and $39.5 million, respectively, and none of which were on nonaccrual status.
CAPITALSOURCE MERGER
On April 7, 2014, PacWest Bancorp (“PacWest”) completed the merger with CapitalSource Inc. (“CapitalSource”). The combined company is called PacWest Bancorp. As part of the merger, CapitalSource Bank, a wholly-owned subsidiary of CapitalSource, merged with and into PacWest’s wholly-owned banking subsidiary, Pacific Western Bank, and the combined subsidiary bank is called Pacific Western Bank.
Upon closing, PacWest created the CapitalSource division of Pacific Western Bank. This division operates under the CapitalSource name and continues to serve businesses nationwide with a full spectrum of middle-market lending. Pacific Western Bank, through its combined network of 81 branches throughout California, continues to serve small and medium-sized businesses with financing solutions, cash management and deposit services.
In the merger with CapitalSource, each share of CapitalSource common stock was converted into the right to receive $2.47 in cash and 0.2837 of a share of PacWest Bancorp common stock. PacWest issued an aggregate of approximately 56.7 million shares of PacWest common stock to CapitalSource stockholders. Based on the closing price of PacWest’s common stock on April 7, 2014 of $45.83 per share, the aggregate consideration paid to CapitalSource common stockholders and holders of equity awards to acquire CapitalSource common stock was approximately $3.1 billion.
The integration of CapitalSource Bank’s deposit system and the conversion of CapitalSource Bank’s branches to Pacific Western Bank’s operating platform were completed over the weekend of April 12, 2014. CapitalSource had 21 branches, 12 of which were closed in the consolidation with Pacific Western Bank at the close of business on April 11, 2014. One overlapping Pacific Western branch was closed on April 11, 2014 as well. All remaining branches re-opened on Monday April 14, 2014 as Pacific Western Bank branches.
The following table shows the various purchase accounting adjustments at the merger date by category along with accretion/amortization periods:
|
|
|
Purchase |
|
|
| |
|
|
|
Accounting |
|
Estimated Accretion/ |
| |
|
Description |
|
Adjustment |
|
Amortization Method |
| |
|
|
|
(In thousands) |
|
|
| |
|
|
|
Debit (Credit) |
|
|
| |
|
|
|
|
|
|
| |
|
Loans and non-operating leases |
|
$ |
(215,019 |
) |
60 months using a level yield method |
|
|
Equipment leased to others under operating leases |
|
$ |
(10,352 |
) |
48 months using a level yield method |
|
|
Investment in trust preferred securities |
|
$ |
(3,352 |
) |
Straight line over 280 months |
|
|
Core deposit intangible |
|
$ |
6,720 |
|
Straight line over 84 months |
|
|
Time deposit premium |
|
$ |
(17,183 |
) |
60 months using an accelerated method |
|
|
Subordinated debentures |
|
$ |
111,235 |
|
Straight line over 280 months |
|
ABOUT PACWEST BANCORP
PacWest Bancorp is a bank holding company with over $15 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (“Pacific Western”). Through 81 full-service branches located throughout the state of California, Pacific Western provides commercial banking services, including real estate, construction, and commercial loans, to small and medium-sized businesses. Its national lending divisions CapitalSource and Pacific Western Equipment Finance, and its subsidiary CapitalSource Business Finance Group (formerly known as BFI Business Finance), deliver the full spectrum of financing solutions nationwide across numerous industries and property types. For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.
FORWARD LOOKING STATEMENTS
This release contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our profitability, return on assets, and Pacific Western Bank loan and lease portfolio growth and production. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such forward-looking statements for a variety of factors, including without limitation:
· changes in economic or competitive market conditions could negatively impact investment or lending opportunities or product pricing and services;
· deteriorations in credit and other markets;
· higher than anticipated loan losses;
· sustained reduction in real estate markets could negatively impact the value of our collateral and our borrowers’ ability to repay loans;
· a change in the interest rate environment reduces interest margins;
· loan repayments higher than expected;
· lower than expected revenues;
· asset/liability repricing risks and liquidity risks reduces interest margins and the value of investments;
· increased costs to manage and sell foreclosed assets;
· higher mix of cash and investments;
· reduced demand for our services;
· our inability to grow deposits and access wholesale funding sources;
· legislative or regulatory requirements or changes adversely affected the Company’s business, including an increase to capital requirements;
· regulatory approvals for any capital activities cannot be obtained on the terms expected or on the anticipated schedule; and
· other risk factors described in documents filed by PacWest with the U.S. Securities and Exchange Commission (“SEC”).
All forward-looking statements included in this release are based on information available at the time of the release.
We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
|
|
|
June 30, |
|
March 31, |
|
December 31, |
| |||
|
|
|
2014 |
|
2014 |
|
2013 |
| |||
|
|
|
(Dollars in thousands, except per share data) |
| |||||||
|
ASSETS |
|
|
|
|
|
|
| |||
|
Cash and due from banks |
|
$ |
243,583 |
|
$ |
113,508 |
|
$ |
96,424 |
|
|
Interest-earning deposits in financial institutions |
|
119,782 |
|
228,579 |
|
50,998 |
| |||
|
Total cash and cash equivalents |
|
363,365 |
|
342,087 |
|
147,422 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Securities available-for-sale, at estimated fair value |
|
1,552,115 |
|
1,477,473 |
|
1,494,745 |
| |||
|
Federal Home Loan Bank stock, at cost |
|
49,983 |
|
25,000 |
|
27,939 |
| |||
|
Total investment securities |
|
1,602,098 |
|
1,502,473 |
|
1,522,684 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Gross loans and leases |
|
11,200,524 |
|
4,161,085 |
|
4,313,335 |
| |||
|
Unearned income |
|
(10,419 |
) |
(18 |
) |
(983 |
) | |||
|
Allowance for loan and lease losses |
|
(82,149 |
) |
(81,180 |
) |
(82,034 |
) | |||
|
Total loans and leases, net |
|
11,107,956 |
|
4,079,887 |
|
4,230,318 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Equipment leased to others under operating leases |
|
127,289 |
|
— |
|
— |
| |||
|
Premises and equipment, net |
|
40,440 |
|
29,908 |
|
32,435 |
| |||
|
Foreclosed assets, net |
|
53,821 |
|
50,895 |
|
55,891 |
| |||
|
FDIC loss sharing asset |
|
28,834 |
|
34,628 |
|
45,524 |
| |||
|
Deferred tax asset, net |
|
342,105 |
|
72,683 |
|
77,924 |
| |||
|
Goodwill |
|
1,725,153 |
|
208,743 |
|
208,743 |
| |||
|
Core deposit and customer relationship intangibles, net |
|
20,431 |
|
15,884 |
|
17,248 |
| |||
|
Other assets |
|
273,374 |
|
180,665 |
|
195,174 |
| |||
|
Total assets |
|
$ |
15,684,866 |
|
$ |
6,517,853 |
|
$ |
6,533,363 |
|
|
|
|
|
|
|
|
|
| |||
|
LIABILITIES |
|
|
|
|
|
|
| |||
|
Noninterest-bearing demand deposits |
|
$ |
2,701,434 |
|
$ |
2,391,609 |
|
$ |
2,318,446 |
|
|
Interest-bearing deposits |
|
8,966,363 |
|
2,977,799 |
|
2,962,541 |
| |||
|
Total deposits |
|
11,667,797 |
|
5,369,408 |
|
5,280,987 |
| |||
|
Borrowings |
|
4,596 |
|
5,748 |
|
113,726 |
| |||
|
Subordinated debentures |
|
434,878 |
|
132,790 |
|
132,645 |
| |||
|
Accrued interest payable and other liabilities |
|
139,663 |
|
176,205 |
|
196,912 |
| |||
|
Total liabilities |
|
12,246,934 |
|
5,684,151 |
|
5,724,270 |
| |||
|
|
|
|
|
|
|
|
| |||
|
STOCKHOLDERS’ EQUITY (1) |
|
3,437,932 |
|
833,702 |
|
809,093 |
| |||
|
Total liabilities and stockholders’ equity |
|
$ |
15,684,866 |
|
$ |
6,517,853 |
|
$ |
6,533,363 |
|
|
(1) Includes net unrealized gain (loss) on securities available-for-sale, net |
|
$ |
20,121 |
|
$ |
6,825 |
|
$ |
(3,347 |
) |
|
|
|
|
|
|
|
|
| |||
|
Book value per share |
|
$ |
33.37 |
|
$ |
18.21 |
|
$ |
17.66 |
|
|
Tangible book value per share |
|
$ |
16.43 |
|
$ |
13.31 |
|
$ |
12.73 |
|
|
|
|
|
|
|
|
|
| |||
|
Shares outstanding (includes unvested restricted shares of 1,121,850 at June 30, 2014, 1,087,436 at March 31, 2014 and 1,216,524 at December 31, 2013) |
|
103,033,449 |
|
45,777,580 |
|
45,822,834 |
| |||
PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
|
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
| |||||
|
|
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands, except per share data |
| |||||||||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loans and leases |
|
$ |
192,201 |
|
$ |
77,463 |
|
$ |
63,168 |
|
$ |
269,664 |
|
$ |
124,178 |
|
|
Investment securities |
|
11,986 |
|
10,823 |
|
8,414 |
|
22,809 |
|
16,630 |
| |||||
|
Deposits in financial institutions |
|
176 |
|
74 |
|
49 |
|
250 |
|
92 |
| |||||
|
Total interest income |
|
204,363 |
|
88,360 |
|
71,631 |
|
292,723 |
|
140,900 |
| |||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposits |
|
7,313 |
|
1,225 |
|
2,077 |
|
8,538 |
|
4,726 |
| |||||
|
Borrowings |
|
199 |
|
79 |
|
199 |
|
278 |
|
343 |
| |||||
|
Subordinated debentures |
|
4,318 |
|
1,041 |
|
882 |
|
5,359 |
|
1,665 |
| |||||
|
Total interest expense |
|
11,830 |
|
2,345 |
|
3,158 |
|
14,175 |
|
6,734 |
| |||||
|
Net interest income |
|
192,533 |
|
86,015 |
|
68,473 |
|
278,548 |
|
134,166 |
| |||||
|
Provision (negative provision) for credit losses |
|
5,030 |
|
(644 |
) |
(1,842 |
) |
4,386 |
|
1,295 |
| |||||
|
Net interest income after provision for credit losses |
|
187,503 |
|
86,659 |
|
70,315 |
|
274,162 |
|
132,871 |
| |||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Service charges on deposit accounts |
|
2,719 |
|
3,002 |
|
2,767 |
|
5,721 |
|
5,630 |
| |||||
|
Other commissions and fees |
|
5,743 |
|
1,932 |
|
2,154 |
|
7,675 |
|
4,087 |
| |||||
|
Leased equipment income |
|
5,672 |
|
— |
|
— |
|
5,672 |
|
— |
| |||||
|
(Loss) gain on sale of loans and leases |
|
(485 |
) |
106 |
|
279 |
|
(379 |
) |
504 |
| |||||
|
Gain on securities |
|
89 |
|
4,752 |
|
— |
|
4,841 |
|
409 |
| |||||
|
FDIC loss sharing expense, net |
|
(8,525 |
) |
(11,430 |
) |
(5,410 |
) |
(19,955 |
) |
(8,547 |
) | |||||
|
Other income |
|
3,266 |
|
6,329 |
|
413 |
|
9,595 |
|
960 |
| |||||
|
Total noninterest income |
|
8,479 |
|
4,691 |
|
203 |
|
13,170 |
|
3,043 |
| |||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Compensation |
|
45,081 |
|
28,627 |
|
26,057 |
|
73,708 |
|
51,407 |
| |||||
|
Occupancy |
|
11,078 |
|
7,595 |
|
7,480 |
|
18,673 |
|
14,078 |
| |||||
|
Data processing |
|
4,099 |
|
2,540 |
|
2,455 |
|
6,639 |
|
4,688 |
| |||||
|
Other professional services |
|
2,843 |
|
1,523 |
|
1,599 |
|
4,366 |
|
3,078 |
| |||||
|
Insurance and assessments |
|
3,179 |
|
1,593 |
|
1,267 |
|
4,772 |
|
2,528 |
| |||||
|
Intangible asset amortization |
|
1,677 |
|
1,364 |
|
1,284 |
|
3,041 |
|
2,460 |
| |||||
|
Other expense |
|
12,115 |
|
7,288 |
|
6,091 |
|
19,403 |
|
11,985 |
| |||||
|
Total operating expense |
|
80,072 |
|
50,530 |
|
46,233 |
|
130,602 |
|
90,224 |
| |||||
|
Leased equipment depreciation |
|
3,095 |
|
— |
|
— |
|
3,095 |
|
— |
| |||||
|
Foreclosed assets expense (income), net |
|
497 |
|
(1,861 |
) |
(14 |
) |
(1,364 |
) |
(514 |
) | |||||
|
Acquisition, integration and reorganization costs |
|
86,242 |
|
2,200 |
|
17,997 |
|
88,442 |
|
18,689 |
| |||||
|
Total noninterest expense |
|
169,906 |
|
50,869 |
|
64,216 |
|
220,775 |
|
108,399 |
| |||||
|
Earnings from continuing operations before income taxes |
|
26,076 |
|
40,481 |
|
6,302 |
|
66,557 |
|
27,515 |
| |||||
|
Income tax expense |
|
(14,846 |
) |
(14,576 |
) |
(1,906 |
) |
(29,422 |
) |
(9,625 |
) | |||||
|
Net earnings from continuing operations |
|
11,230 |
|
25,905 |
|
4,396 |
|
37,135 |
|
17,890 |
| |||||
|
Loss from discontinued operations before income taxes |
|
(1,151 |
) |
(1,413 |
) |
(81 |
) |
(2,564 |
) |
(81 |
) | |||||
|
Income tax benefit |
|
476 |
|
588 |
|
34 |
|
1,064 |
|
34 |
| |||||
|
Net loss from discontinued operations |
|
(675 |
) |
(825 |
) |
(47 |
) |
(1,500 |
) |
(47 |
) | |||||
|
Net earnings |
|
$ |
10,555 |
|
$ |
25,080 |
|
$ |
4,349 |
|
$ |
35,635 |
|
$ |
17,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net earnings from continuing operations |
|
$ |
0.11 |
|
$ |
0.57 |
|
$ |
0.11 |
|
$ |
0.51 |
|
$ |
0.47 |
|
|
Net earnings |
|
$ |
0.10 |
|
$ |
0.55 |
|
$ |
0.11 |
|
$ |
0.49 |
|
$ |
0.47 |
|
PACWEST BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
|
|
|
Three Months Ended |
| ||||||||||||||||||||||
|
|
|
June 30, 2014 |
|
March 31, 2014 |
|
June 30, 2013 |
| ||||||||||||||||||
|
|
|
|
|
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 |
|
$ |
375,194 |
|
$ |
14,104 |
|
15.08 |
% |
$ |
339,329 |
|
$ |
18,270 |
|
21.84 |
% |
$ |
472,090 |
|
$ |
10,435 |
|
8.87 |
% |
|
Non-PCI loans and leases |
|
10,125,327 |
|
178,098 |
|
7.06 |
% |
3,891,990 |
|
59,193 |
|
6.17 |
% |
3,293,625 |
|
52,733 |
|
6.42 |
% | ||||||
|
Total loans and leases |
|
10,500,521 |
|
192,201 |
|
7.34 |
% |
4,231,319 |
|
77,463 |
|
7.42 |
% |
3,765,715 |
|
63,168 |
|
6.73 |
% | ||||||
|
Investment securities (1) |
|
1,606,848 |
|
11,986 |
|
2.99 |
% |
1,512,694 |
|
10,823 |
|
2.90 |
% |
1,424,804 |
|
8,414 |
|
2.37 |
% | ||||||
|
Deposits in financial institutions |
|
276,095 |
|
176 |
|
0.26 |
% |
118,682 |
|
74 |
|
0.25 |
% |
75,739 |
|
49 |
|
0.26 |
% | ||||||
|
Total interest-earning assets |
|
12,383,464 |
|
204,363 |
|
6.62 |
% |
5,862,695 |
|
88,360 |
|
6.11 |
% |
5,266,258 |
|
71,631 |
|
5.46 |
% | ||||||
|
Noninterest-earning assets |
|
2,653,637 |
|
|
|
|
|
650,681 |
|
|
|
|
|
511,633 |
|
|
|
|
| ||||||
|
Total assets |
|
$ |
15,037,101 |
|
|
|
|
|
$ |
6,513,376 |
|
|
|
|
|
$ |
5,777,891 |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Interest-bearing checking |
|
$ |
601,958 |
|
77 |
|
0.05 |
% |
$ |
627,493 |
|
78 |
|
0.05 |
% |
$ |
557,438 |
|
75 |
|
0.05 |
% | |||
|
Money market |
|
1,691,115 |
|
874 |
|
0.21 |
% |
1,451,964 |
|
618 |
|
0.17 |
% |
1,307,386 |
|
587 |
|
0.18 |
% | ||||||
|
Savings |
|
722,808 |
|
548 |
|
0.30 |
% |
223,074 |
|
14 |
|
0.03 |
% |
184,055 |
|
22 |
|
0.05 |
% | ||||||
|
Time |
|
5,613,601 |
|
5,814 |
|
0.42 |
% |
666,463 |
|
515 |
|
0.31 |
% |
756,008 |
|
1,393 |
|
0.74 |
% | ||||||
|
Total interest-bearing deposits |
|
8,629,482 |
|
7,313 |
|
0.34 |
% |
2,968,994 |
|
1,225 |
|
0.17 |
% |
2,804,887 |
|
2,077 |
|
0.30 |
% | ||||||
|
Borrowings |
|
39,931 |
|
199 |
|
2.00 |
% |
18,176 |
|
79 |
|
1.76 |
% |
20,554 |
|
199 |
|
3.88 |
% | ||||||
|
Subordinated debentures |
|
409,934 |
|
4,318 |
|
4.22 |
% |
132,696 |
|
1,041 |
|
3.18 |
% |
116,998 |
|
882 |
|
3.02 |
% | ||||||
|
Total interest-bearing liabilities |
|
9,079,347 |
|
$ |
11,830 |
|
0.52 |
% |
3,119,866 |
|
$ |
2,345 |
|
0.30 |
% |
2,942,439 |
|
$ |
3,158 |
|
0.43 |
% | |||
|
Noninterest-bearing demand deposits |
|
2,546,540 |
|
|
|
|
|
2,374,325 |
|
|
|
|
|
2,072,923 |
|
|
|
|
| ||||||
|
Other liabilities |
|
178,196 |
|
|
|
|
|
198,937 |
|
|
|
|
|
96,104 |
|
|
|
|
| ||||||
|
Total liabilities |
|
11,804,083 |
|
|
|
|
|
5,693,128 |
|
|
|
|
|
5,111,466 |
|
|
|
|
| ||||||
|
Stockholders’ equity |
|
3,233,018 |
|
|
|
|
|
820,248 |
|
|
|
|
|
666,425 |
|
|
|
|
| ||||||
|
Total liabilities and shareholders’ equity |
|
$ |
15,037,101 |
|
|
|
|
|
$ |
6,513,376 |
|
|
|
|
|
$ |
5,777,891 |
|
|
|
|
| |||
|
Net interest income |
|
|
|
$ |
192,533 |
|
|
|
|
|
$ |
86,015 |
|
|
|
|
|
$ |
68,473 |
|
|
| |||
|
Net interest spread |
|
|
|
|
|
6.10 |
% |
|
|
|
|
5.81 |
% |
|
|
|
|
5.03 |
% | ||||||
|
Net interest margin |
|
|
|
|
|
6.24 |
% |
|
|
|
|
5.95 |
% |
|
|
|
|
5.22 |
% | ||||||
(1) The tax-equivalent yield on investment securities was 3.39%, 3.35%, and 2.74% for the three months ended June 30, 2014, March 31, 2014, and June 30, 2013, respectively.
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER BALANCE SHEET
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
|
|
2014 |
|
2014 |
|
2013 |
|
2013 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands, except per share data) |
| |||||||||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Cash and due from banks |
|
$ |
243,583 |
|
$ |
113,508 |
|
$ |
96,424 |
|
$ |
132,467 |
|
$ |
106,237 |
|
|
Interest-earning deposits in financial institutions |
|
119,782 |
|
228,579 |
|
50,998 |
|
11,552 |
|
112,590 |
| |||||
|
Total cash and cash equivalents |
|
363,365 |
|
342,087 |
|
147,422 |
|
144,019 |
|
218,827 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Securities available-for-sale, at estimated fair value |
|
1,552,115 |
|
1,477,473 |
|
1,494,745 |
|
1,512,147 |
|
1,473,578 |
| |||||
|
Federal Home Loan Bank stock, at cost |
|
49,983 |
|
25,000 |
|
27,939 |
|
34,095 |
|
39,129 |
| |||||
|
Total investment securities |
|
1,602,098 |
|
1,502,473 |
|
1,522,684 |
|
1,546,242 |
|
1,512,707 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Gross loans and leases |
|
11,200,524 |
|
4,161,085 |
|
4,313,335 |
|
4,384,312 |
|
4,420,619 |
| |||||
|
Unearned income |
|
(10,419 |
) |
(18 |
) |
(983 |
) |
(919 |
) |
(933 |
) | |||||
|
Allowance for loan and lease losses |
|
(82,149 |
) |
(81,180 |
) |
(82,034 |
) |
(83,786 |
) |
(90,643 |
) | |||||
|
Total loans and leases, net |
|
11,107,956 |
|
4,079,887 |
|
4,230,318 |
|
4,299,607 |
|
4,329,043 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Equipment leased to others under operating leases |
|
127,289 |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Premises and equipment, net |
|
40,440 |
|
29,908 |
|
32,435 |
|
32,683 |
|
33,642 |
| |||||
|
Foreclosed assets, net |
|
53,821 |
|
50,895 |
|
55,891 |
|
55,972 |
|
64,546 |
| |||||
|
FDIC loss sharing asset |
|
28,834 |
|
34,628 |
|
45,524 |
|
55,653 |
|
66,993 |
| |||||
|
Deferred tax asset, net |
|
342,105 |
|
72,683 |
|
77,924 |
|
70,933 |
|
69,176 |
| |||||
|
Goodwill |
|
1,725,153 |
|
208,743 |
|
208,743 |
|
215,862 |
|
209,190 |
| |||||
|
Core deposit and customer relationship intangibles, net |
|
20,431 |
|
15,884 |
|
17,248 |
|
18,678 |
|
20,190 |
| |||||
|
Other assets |
|
273,374 |
|
180,665 |
|
195,174 |
|
177,206 |
|
184,788 |
| |||||
|
Total assets |
|
$ |
15,684,866 |
|
$ |
6,517,853 |
|
$ |
6,533,363 |
|
$ |
6,616,855 |
|
$ |
6,709,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Noninterest-bearing demand deposits |
|
$ |
2,701,434 |
|
$ |
2,391,609 |
|
$ |
2,318,446 |
|
$ |
2,328,688 |
|
$ |
2,291,246 |
|
|
Interest-bearing deposits |
|
8,966,363 |
|
2,977,799 |
|
2,962,541 |
|
3,104,456 |
|
3,231,754 |
| |||||
|
Total deposits |
|
11,667,797 |
|
5,369,408 |
|
5,280,987 |
|
5,433,144 |
|
5,523,000 |
| |||||
|
Borrowings |
|
4,596 |
|
5,748 |
|
113,726 |
|
8,243 |
|
9,696 |
| |||||
|
Subordinated debentures |
|
434,878 |
|
132,790 |
|
132,645 |
|
132,500 |
|
132,358 |
| |||||
|
Accrued interest payable and other liabilities |
|
139,663 |
|
176,205 |
|
196,912 |
|
226,679 |
|
242,349 |
| |||||
|
Total liabilities |
|
12,246,934 |
|
5,684,151 |
|
5,724,270 |
|
5,800,566 |
|
5,907,403 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
STOCKHOLDERS’ EQUITY (1) |
|
3,437,932 |
|
833,702 |
|
809,093 |
|
816,289 |
|
801,699 |
| |||||
|
Total liabilities and stockholders’ equity |
|
$ |
15,684,866 |
|
$ |
6,517,853 |
|
$ |
6,533,363 |
|
$ |
6,616,855 |
|
$ |
6,709,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
(1) Includes net unrealized gain (loss) on securities available-for-sale, net |
|
$ |
20,121 |
|
$ |
6,825 |
|
$ |
(3,347 |
) |
$ |
327 |
|
$ |
996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Book value per share |
|
$ |
33.37 |
|
$ |
18.21 |
|
$ |
17.66 |
|
$ |
17.71 |
|
$ |
17.40 |
|
|
Tangible book value per share |
|
$ |
16.43 |
|
$ |
13.31 |
|
$ |
12.73 |
|
$ |
12.62 |
|
$ |
12.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Shares outstanding (includes unvested restricted shares) |
|
103,033,449 |
|
45,777,580 |
|
45,822,834 |
|
46,090,742 |
|
46,080,731 |
| |||||
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER STATEMENT OF EARNINGS
|
|
|
Three Months Ended |
| |||||||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
|
|
2014 |
|
2014 |
|
2013 |
|
2013 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands, except per share data) |
| |||||||||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loans and leases |
|
$ |
192,201 |
|
$ |
77,463 |
|
$ |
73,352 |
|
$ |
75,196 |
|
$ |
63,168 |
|
|
Investment securities |
|
11,986 |
|
10,823 |
|
10,422 |
|
9,871 |
|
8,414 |
| |||||
|
Deposits in financial institutions |
|
176 |
|
74 |
|
82 |
|
91 |
|
49 |
| |||||
|
Total interest income |
|
204,363 |
|
88,360 |
|
83,856 |
|
85,158 |
|
71,631 |
| |||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Deposits |
|
7,313 |
|
1,225 |
|
1,450 |
|
1,692 |
|
2,077 |
| |||||
|
Borrowings |
|
199 |
|
79 |
|
86 |
|
108 |
|
199 |
| |||||
|
Subordinated debentures |
|
4,318 |
|
1,041 |
|
1,062 |
|
1,069 |
|
882 |
| |||||
|
Total interest expense |
|
11,830 |
|
2,345 |
|
2,598 |
|
2,869 |
|
3,158 |
| |||||
|
Net interest income |
|
192,533 |
|
86,015 |
|
81,258 |
|
82,289 |
|
68,473 |
| |||||
|
Provision (negative provision) for credit losses |
|
5,030 |
|
(644 |
) |
(1,338 |
) |
(4,167 |
) |
(1,842 |
) | |||||
|
Net interest income after provision for credit losses |
|
187,503 |
|
86,659 |
|
82,596 |
|
86,456 |
|
70,315 |
| |||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Service charges on deposit accounts |
|
2,719 |
|
3,002 |
|
3,197 |
|
2,938 |
|
2,767 |
| |||||
|
Other commissions and fees |
|
5,743 |
|
1,932 |
|
2,125 |
|
2,204 |
|
2,154 |
| |||||
|
Leased equipment income |
|
5,672 |
|
— |
|
— |
|
— |
|
— |
| |||||
|
(Loss) gain on sale of loans and leases |
|
(485 |
) |
106 |
|
683 |
|
604 |
|
279 |
| |||||
|
Gain (loss) on securities |
|
89 |
|
4,752 |
|
(272 |
) |
5,222 |
|
— |
| |||||
|
FDIC loss sharing expense, net |
|
(8,525 |
) |
(11,430 |
) |
(10,593 |
) |
(7,032 |
) |
(5,410 |
) | |||||
|
Other income |
|
3,266 |
|
6,329 |
|
934 |
|
1,191 |
|
413 |
| |||||
|
Total noninterest income (expense) |
|
8,479 |
|
4,691 |
|
(3,926 |
) |
5,127 |
|
203 |
| |||||
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Compensation |
|
45,081 |
|
28,627 |
|
27,697 |
|
27,963 |
|
26,057 |
| |||||
|
Occupancy |
|
11,078 |
|
7,595 |
|
7,553 |
|
7,828 |
|
7,480 |
| |||||
|
Data processing |
|
4,099 |
|
2,540 |
|
2,216 |
|
2,590 |
|
2,455 |
| |||||
|
Other professional services |
|
2,843 |
|
1,523 |
|
1,770 |
|
1,906 |
|
1,599 |
| |||||
|
Insurance and assessments |
|
3,179 |
|
1,593 |
|
1,572 |
|
1,496 |
|
1,267 |
| |||||
|
Intangible asset amortization |
|
1,677 |
|
1,364 |
|
1,430 |
|
1,512 |
|
1,284 |
| |||||
|
Other expense |
|
12,115 |
|
7,288 |
|
7,746 |
|
7,875 |
|
6,091 |
| |||||
|
Total operating expense |
|
80,072 |
|
50,530 |
|
49,984 |
|
51,170 |
|
46,233 |
| |||||
|
Leased equipment depreciation |
|
3,095 |
|
— |
|
— |
|
— |
|
— |
| |||||
|
Foreclosed assets expense (income), net |
|
497 |
|
(1,861 |
) |
(569 |
) |
(420 |
) |
(14 |
) | |||||
|
Acquisition, integration and reorganization costs |
|
86,242 |
|
2,200 |
|
16,673 |
|
5,450 |
|
17,997 |
| |||||
|
Total noninterest expense |
|
169,906 |
|
50,869 |
|
66,088 |
|
56,200 |
|
64,216 |
| |||||
|
Earnings from continuing operations before income taxes |
|
26,076 |
|
40,481 |
|
12,582 |
|
35,383 |
|
6,302 |
| |||||
|
Income tax expense |
|
(14,846 |
) |
(14,576 |
) |
(9,135 |
) |
(11,243 |
) |
(1,906 |
) | |||||
|
Net earnings from continuing operations |
|
11,230 |
|
25,905 |
|
3,447 |
|
24,140 |
|
4,396 |
| |||||
|
(Loss) earnings from discontinued operations before income taxes |
|
(1,151 |
) |
(1,413 |
) |
(578 |
) |
39 |
|
(81 |
) | |||||
|
Income tax benefit (expense) |
|
476 |
|
588 |
|
240 |
|
(16 |
) |
34 |
| |||||
|
Net (loss) earnings from discontinued operations |
|
(675 |
) |
(825 |
) |
(338 |
) |
23 |
|
(47 |
) | |||||
|
Net earnings |
|
$ |
10,555 |
|
$ |
25,080 |
|
$ |
3,109 |
|
$ |
24,163 |
|
$ |
4,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic and diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net earnings from continuing operations |
|
$ |
0.11 |
|
$ |
0.57 |
|
$ |
0.07 |
|
$ |
0.53 |
|
$ |
0.11 |
|
|
Net earnings |
|
$ |
0.10 |
|
$ |
0.55 |
|
$ |
0.06 |
|
$ |
0.53 |
|
$ |
0.11 |
|
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
|
|
|
At or For the Three Months Ended |
| |||||||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
|
|
2014 |
|
2014 |
|
2013 |
|
2013 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands) |
| |||||||||||||
|
Performance Ratios - GAAP: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Annualized return on average assets |
|
0.28 |
% |
1.56 |
% |
0.19 |
% |
1.44 |
% |
0.30 |
% | |||||
|
Annualized return on average equity |
|
1.31 |
% |
12.40 |
% |
1.51 |
% |
12.02 |
% |
2.62 |
% | |||||
|
Yield on loans and leases |
|
7.34 |
% |
7.42 |
% |
6.77 |
% |
6.90 |
% |
6.73 |
% | |||||
|
Yield on interest-earning assets |
|
6.62 |
% |
6.11 |
% |
5.58 |
% |
5.65 |
% |
5.46 |
% | |||||
|
Cost of total deposits |
|
0.26 |
% |
0.09 |
% |
0.11 |
% |
0.12 |
% |
0.17 |
% | |||||
|
Cost of time deposits |
|
0.42 |
% |
0.31 |
% |
0.40 |
% |
0.45 |
% |
0.74 |
% | |||||
|
Cost of interest-bearing liabilities |
|
0.52 |
% |
0.30 |
% |
0.32 |
% |
0.34 |
% |
0.43 |
% | |||||
|
Cost of funding sources |
|
0.41 |
% |
0.17 |
% |
0.18 |
% |
0.20 |
% |
0.25 |
% | |||||
|
Net interest rate spread |
|
6.10 |
% |
5.81 |
% |
5.26 |
% |
5.31 |
% |
5.03 |
% | |||||
|
Net interest margin |
|
6.24 |
% |
5.95 |
% |
5.41 |
% |
5.46 |
% |
5.22 |
% | |||||
|
Annualized operating expense as a percentage of average assets |
|
2.14 |
% |
3.15 |
% |
2.99 |
% |
3.05 |
% |
3.21 |
% | |||||
|
Annualized noninterest expense as a percentage of average assets |
|
4.53 |
% |
3.17 |
% |
3.95 |
% |
3.35 |
% |
4.46 |
% | |||||
|
Efficiency ratio |
|
84.5 |
% |
56.1 |
% |
85.5 |
% |
64.3 |
% |
93.5 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average Balances: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average loans and leases |
|
$ |
10,500,521 |
|
$ |
4,231,319 |
|
$ |
4,301,377 |
|
$ |
4,320,770 |
|
$ |
3,765,715 |
|
|
Average interest-earning assets |
|
12,383,464 |
|
5,862,695 |
|
5,962,428 |
|
5,979,811 |
|
5,266,258 |
| |||||
|
Average total assets |
|
15,037,101 |
|
6,513,376 |
|
6,632,730 |
|
6,660,854 |
|
5,777,891 |
| |||||
|
Average noninterest-bearing deposits |
|
2,546,540 |
|
2,374,325 |
|
2,397,642 |
|
2,329,197 |
|
2,072,923 |
| |||||
|
Average interest-bearing deposits |
|
8,629,482 |
|
2,968,994 |
|
3,054,880 |
|
3,169,924 |
|
2,804,887 |
| |||||
|
Average total deposits |
|
11,176,022 |
|
5,343,319 |
|
5,452,522 |
|
5,499,121 |
|
4,877,810 |
| |||||
|
Average borrowings and subordinated debentures |
|
449,865 |
|
150,872 |
|
142,421 |
|
141,425 |
|
137,552 |
| |||||
|
Average interest-bearing liabilities |
|
9,079,347 |
|
3,119,866 |
|
3,197,301 |
|
3,311,349 |
|
2,942,439 |
| |||||
|
Average funding sources |
|
11,625,887 |
|
5,494,191 |
|
5,594,943 |
|
5,640,546 |
|
5,015,362 |
| |||||
|
Average stockholders’ equity |
|
3,233,018 |
|
820,248 |
|
818,935 |
|
797,725 |
|
666,425 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Non-PCI Credit Quality: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Allowance for credit losses to loans and leases |
|
0.67 |
% |
1.75 |
% |
1.73 |
% |
1.72 |
% |
1.78 |
% | |||||
|
Allowance for credit losses to nonaccrual loans and leases |
|
75 |
% |
115 |
% |
145 |
% |
133 |
% |
135 |
% | |||||
|
Nonaccrual loans and leases to loans and leases |
|
0.90 |
% |
1.51 |
% |
1.19 |
% |
1.29 |
% |
1.32 |
% | |||||
|
Nonperforming assets to loans and leases and foreclosed assets |
|
1.39 |
% |
2.81 |
% |
2.58 |
% |
2.67 |
% |
2.91 |
% | |||||
|
Nonperforming assets to total assets |
|
0.96 |
% |
1.67 |
% |
1.57 |
% |
1.61 |
% |
1.73 |
% | |||||
|
Trailing twelve month net charge-offs to average loans and leases |
|
0.05 |
% |
0.13 |
% |
0.12 |
% |
0.21 |
% |
0.19 |
% | |||||
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
|
|
|
Three Months Ended |
| ||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
|
|
2014 |
|
2014 |
|
2013 |
|
2013 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios - Non-GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
Annualized adjusted return on average assets |
|
1.70 |
% |
1.41 |
% |
1.43 |
% |
1.14 |
% |
1.31 |
% |
|
Annualized adjusted return on average equity |
|
7.92 |
% |
11.16 |
% |
11.60 |
% |
9.54 |
% |
11.38 |
% |
|
Annualized return on average tangible equity |
|
2.65 |
% |
17.10 |
% |
2.11 |
% |
16.85 |
% |
3.25 |
% |
|
Annualized adjusted return on average tangible equity |
|
16.05 |
% |
15.39 |
% |
16.23 |
% |
13.39 |
% |
14.13 |
% |
|
Core net interest margin |
|
5.74 |
% |
5.42 |
% |
5.31 |
% |
5.29 |
% |
5.21 |
% |
|
Adjusted efficiency ratio |
|
43.1 |
% |
57.1 |
% |
58.1 |
% |
59.0 |
% |
62.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
12.40 |
% |
11.73 |
% |
11.17 |
% |
11.16 |
% |
12.75 |
% |
|
Tier 1 risk-based capital ratio |
|
13.15 |
% |
16.16 |
% |
15.06 |
% |
15.13 |
% |
15.04 |
% |
|
Total risk-based capital ratio |
|
16.25 |
% |
17.42 |
% |
16.32 |
% |
16.39 |
% |
16.30 |
% |
|
Tangible common equity ratio (non-GAAP measure) |
|
12.14 |
% |
9.68 |
% |
9.24 |
% |
9.12 |
% |
8.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Western Bank Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
11.71 |
% |
10.88 |
% |
10.83 |
% |
10.53 |
% |
12.05 |
% |
|
Tier 1 risk-based capital ratio |
|
12.58 |
% |
15.00 |
% |
14.61 |
% |
14.27 |
% |
14.16 |
% |
|
Total risk-based capital ratio |
|
13.32 |
% |
16.25 |
% |
15.87 |
% |
15.53 |
% |
15.42 |
% |
|
Tangible common equity ratio (non-GAAP measure) |
|
11.40 |
% |
10.92 |
% |
10.88 |
% |
10.54 |
% |
10.22 |
% |
PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
|
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
| |||||
|
|
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands, except per share data) |
| |||||||||||||
|
Basic Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net earnings from continuing operations |
|
$ |
11,230 |
|
$ |
25,905 |
|
$ |
4,396 |
|
$ |
37,135 |
|
$ |
17,890 |
|
|
Less: earnings allocated to unvested restricted stock (1) |
|
(290 |
) |
(500 |
) |
(212 |
) |
(424 |
) |
(351 |
) | |||||
|
Net earnings from continuing operations allocated to common shares |
|
10,940 |
|
25,405 |
|
4,184 |
|
36,711 |
|
17,539 |
| |||||
|
Net earnings (loss) from discontinued operations allocated to common shares |
|
(675 |
) |
(804 |
) |
(47 |
) |
(1,500 |
) |
(47 |
) | |||||
|
Net earnings allocated to common shares |
|
$ |
10,265 |
|
$ |
24,601 |
|
$ |
4,137 |
|
$ |
35,211 |
|
$ |
17,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Weighted-average basic shares and unvested restricted stock outstanding |
|
98,817 |
|
45,799 |
|
40,338 |
|
72,454 |
|
38,873 |
| |||||
|
Less: weighted-average unvested restricted stock outstanding |
|
(678 |
) |
(1,148 |
) |
(1,597 |
) |
(911 |
) |
(1,595 |
) | |||||
|
Weighted-average basic shares outstanding |
|
98,139 |
|
44,651 |
|
38,741 |
|
71,543 |
|
37,278 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net earnings from continuing operations |
|
$ |
0.11 |
|
$ |
0.57 |
|
$ |
0.11 |
|
$ |
0.51 |
|
$ |
0.47 |
|
|
Net earnings from discontinued operations |
|
(0.01 |
) |
(0.02 |
) |
— |
|
(0.02 |
) |
— |
| |||||
|
Net earnings |
|
$ |
0.10 |
|
$ |
0.55 |
|
$ |
0.11 |
|
$ |
0.49 |
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net earnings from continuing operations allocated to common shares |
|
$ |
10,940 |
|
$ |
25,405 |
|
$ |
4,184 |
|
$ |
36,711 |
|
$ |
17,539 |
|
|
Net earnings (loss) from discontinued operations allocated to common shares |
|
(675 |
) |
(804 |
) |
(47 |
) |
(1,500 |
) |
(47 |
) | |||||
|
Net earnings allocated to common shares |
|
$ |
10,265 |
|
$ |
24,601 |
|
$ |
4,137 |
|
$ |
35,211 |
|
$ |
17,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Weighted-average basic shares outstanding |
|
98,139 |
|
44,651 |
|
38,741 |
|
71,543 |
|
37,278 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net earnings from continuing operations |
|
$ |
0.11 |
|
$ |
0.57 |
|
$ |
0.11 |
|
$ |
0.51 |
|
$ |
0.47 |
|
|
Net earnings from discontinued operations |
|
(0.01 |
) |
(0.02 |
) |
— |
|
(0.02 |
) |
— |
| |||||
|
Net earnings |
|
$ |
0.10 |
|
$ |
0.55 |
|
$ |
0.11 |
|
$ |
0.49 |
|
$ |
0.47 |
|
(1) Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.
GAAP TO NON-GAAP RECONCILIATION
This press release contains certain non-GAAP financial disclosures for adjusted net earnings, adjusted return on average assets, adjusted return on average equity, return on average tangible equity, adjusted return on average tangible equity, tangible common equity amounts and ratios, tangible book value per share, adjusted efficiency ratio, core net interest margin, and operating expense as a percentage of average assets. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance:
· Adjusted net earnings - as analysts and investors view this measure as an indicator of the Company’s ability to both generate earnings and absorb credit losses, we disclose this amount in addition to net earnings.
· Adjusted return on average assets, adjusted return on average equity, return on average tangible equity, adjusted return on average tangible equity, tangible common equity amounts and ratios, and tangible book value per share - given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to return on average assets, return on average equity, equity-to-assets ratio, and book value per share, respectively.
· Adjusted efficiency ratio - we disclose this measure in addition to efficiency ratio as it shows the trend in recurring overhead-related noninterest expense relative to recurring net revenues.
Please refer to the tables on the following pages for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.
PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(Unaudited)
|
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
| |||||
|
Adjusted Net Earnings and Related Ratios |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Reported net earnings |
|
$ |
10,555 |
|
$ |
25,080 |
|
$ |
4,349 |
|
$ |
35,635 |
|
$ |
17,843 |
|
|
Subtract: Tax benefit on discontinued operations |
|
(476 |
) |
(588 |
) |
(34 |
) |
(1,064 |
) |
(34 |
) | |||||
|
Add: Tax expense on continuing operations |
|
14,846 |
|
14,576 |
|
1,906 |
|
29,422 |
|
9,625 |
| |||||
|
Reported pre-tax earnings |
|
24,925 |
|
39,068 |
|
6,221 |
|
63,993 |
|
27,434 |
| |||||
|
Add: Acquisition, integration and reorganization costs |
|
86,242 |
|
2,200 |
|
17,997 |
|
88,442 |
|
18,689 |
| |||||
|
Subtract: FDIC loss sharing expense, net |
|
(8,525 |
) |
(11,430 |
) |
(5,410 |
) |
(19,955 |
) |
(8,547 |
) | |||||
|
(Loss) gain on sale of loans and leases |
|
(485 |
) |
106 |
|
279 |
|
(379 |
) |
504 |
| |||||
|
Gain on securities |
|
89 |
|
4,752 |
|
— |
|
4,841 |
|
409 |
| |||||
|
Covered OREO income, net |
|
185 |
|
1,615 |
|
94 |
|
1,800 |
|
907 |
| |||||
|
Gain on sale of owned office building |
|
— |
|
1,570 |
|
— |
|
1,570 |
|
— |
| |||||
|
Adjusted pre-tax earnings before accelerated discount accretion |
|
119,903 |
|
44,655 |
|
29,255 |
|
164,558 |
|
52,850 |
| |||||
|
Subtract: Accelerated discount accretion resulting from payoffs of acquired loans |
|
15,290 |
|
7,655 |
|
177 |
|
22,945 |
|
854 |
| |||||
|
Adjusted pre-tax earnings |
|
104,613 |
|
37,000 |
|
29,078 |
|
141,613 |
|
51,996 |
| |||||
|
Tax expense (1) |
|
(40,799 |
) |
(14,430 |
) |
(10,177 |
) |
(55,229 |
) |
(18,199 |
) | |||||
|
Adjusted net earnings |
|
$ |
63,814 |
|
$ |
22,570 |
|
$ |
18,901 |
|
$ |
86,384 |
|
$ |
33,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average assets |
|
$ |
15,037,101 |
|
$ |
6,513,376 |
|
$ |
5,777,891 |
|
$ |
10,798,982 |
|
$ |
5,578,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Average stockholders’ equity |
|
$ |
3,233,018 |
|
$ |
820,248 |
|
$ |
666,425 |
|
$ |
2,032,830 |
|
$ |
628,029 |
|
|
Less: Average intangible assets |
|
1,638,267 |
|
225,294 |
|
129,863 |
|
935,684 |
|
111,924 |
| |||||
|
Average tangible common equity |
|
$ |
1,594,751 |
|
$ |
594,954 |
|
$ |
536,562 |
|
$ |
1,097,146 |
|
$ |
516,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Annualized return on average assets (2) |
|
0.28 |
% |
1.56 |
% |
0.30 |
% |
0.67 |
% |
0.65 |
% | |||||
|
Annualized adjusted return on average assets (3) |
|
1.70 |
% |
1.41 |
% |
1.31 |
% |
1.61 |
% |
1.22 |
% | |||||
|
Annualized return on average equity (4) |
|
1.31 |
% |
12.40 |
% |
2.62 |
% |
3.54 |
% |
5.73 |
% | |||||
|
Annualized adjusted return on average equity (5) |
|
7.92 |
% |
11.16 |
% |
11.38 |
% |
8.57 |
% |
10.85 |
% | |||||
|
Annualized return on average tangible equity (6) |
|
2.65 |
% |
17.10 |
% |
3.25 |
% |
6.55 |
% |
6.97 |
% | |||||
|
Annualized adjusted return on average tangible equity (7) |
|
16.05 |
% |
15.39 |
% |
14.13 |
% |
15.88 |
% |
13.21 |
% | |||||
(1) Full-year expected effective rate of 39% used in 2014 periods and actual effective rate of 35% used in 2013 periods.
(2) Annualized net earnings divided by average assets.
(3) Annualized adjusted net earnings divided by average assets.
(4) Annualized net earnings divided by average stockholders’ equity.
(5) Annualized adjusted net earnings divided by average stockholders’ equity.
(6) Annualized net earnings divided by average tangible common equity.
(7) Annualized adjusted net earnings divided by average tangible common equity.
PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(Unaudited)
|
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
| |||||
|
Adjusted Efficiency Ratio |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands) |
| |||||||||||||
|
Noninterest expense |
|
$ |
169,906 |
|
$ |
50,869 |
|
$ |
64,216 |
|
$ |
220,775 |
|
$ |
108,399 |
|
|
Less: Acquisition, integration and reorganization costs |
|
86,242 |
|
2,200 |
|
17,997 |
|
88,442 |
|
18,689 |
| |||||
|
Covered OREO income, net |
|
(185 |
) |
(1,615 |
) |
(94 |
) |
(1,800 |
) |
(907 |
) | |||||
|
Adjusted noninterest expense |
|
$ |
83,849 |
|
$ |
50,284 |
|
$ |
46,313 |
|
$ |
134,133 |
|
$ |
90,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net interest income |
|
$ |
192,533 |
|
$ |
86,015 |
|
$ |
68,473 |
|
$ |
278,548 |
|
$ |
134,166 |
|
|
Noninterest income |
|
8,479 |
|
4,691 |
|
203 |
|
13,170 |
|
3,043 |
| |||||
|
Net revenues |
|
201,012 |
|
90,706 |
|
68,676 |
|
291,718 |
|
137,209 |
| |||||
|
Less: FDIC loss sharing expense, net |
|
(8,525 |
) |
(11,430 |
) |
(5,410 |
) |
(19,955 |
) |
(8,547 |
) | |||||
|
(Loss) gain on sale of loans and leases |
|
(485 |
) |
106 |
|
279 |
|
(379 |
) |
504 |
| |||||
|
Gain on securities |
|
89 |
|
4,752 |
|
— |
|
4,841 |
|
409 |
| |||||
|
Gain on sale of owned office building |
|
— |
|
1,570 |
|
— |
|
1,570 |
|
— |
| |||||
|
Accelerated discount accretion resulting from payoffs of acquired loans |
|
15,290 |
|
7,655 |
|
177 |
|
22,945 |
|
854 |
| |||||
|
Adjusted net revenues |
|
$ |
194,643 |
|
$ |
88,053 |
|
$ |
73,630 |
|
$ |
282,696 |
|
$ |
143,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Base efficiency ratio (1) |
|
84.5 |
% |
56.1 |
% |
93.5 |
% |
75.7 |
% |
79.0 |
% | |||||
|
Adjusted efficiency ratio (2) |
|
43.1 |
% |
57.1 |
% |
62.9 |
% |
47.4 |
% |
62.9 |
% | |||||
(1) Noninterest expense divided by net revenues.
(2) Adjusted noninterest expense divided by adjusted net revenues.
PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
(Unaudited)
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| |||||
|
Tangible Common Equity Ratio |
|
2014 |
|
2014 |
|
2013 |
|
2013 |
|
2013 |
| |||||
|
|
|
(Dollars in thousands) |
| |||||||||||||
|
PacWest Bancorp Consolidated: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Stockholder’s equity |
|
$ |
3,437,932 |
|
$ |
833,702 |
|
$ |
809,093 |
|
$ |
816,289 |
|
$ |
801,699 |
|
|
Less: Intangible assets |
|
1,745,584 |
|
224,627 |
|
225,991 |
|
234,540 |
|
229,380 |
| |||||
|
Tangible common equity |
|
$ |
1,692,348 |
|
$ |
609,075 |
|
$ |
583,102 |
|
$ |
581,749 |
|
$ |
572,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total assets |
|
$ |
15,684,866 |
|
$ |
6,517,853 |
|
$ |
6,533,363 |
|
$ |
6,616,855 |
|
$ |
6,709,102 |
|
|
Less: Intangible assets |
|
1,745,584 |
|
224,627 |
|
225,991 |
|
234,540 |
|
229,380 |
| |||||
|
Tangible assets |
|
$ |
13,939,282 |
|
$ |
6,293,226 |
|
$ |
6,307,372 |
|
$ |
6,382,315 |
|
$ |
6,479,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Equity to assets ratio |
|
21.92 |
% |
12.79 |
% |
12.38 |
% |
12.34 |
% |
11.95 |
% | |||||
|
Tangible common equity ratio (1) |
|
12.14 |
% |
9.68 |
% |
9.24 |
% |
9.12 |
% |
8.83 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Book value per share |
|
$ |
33.37 |
|
$ |
18.21 |
|
$ |
17.66 |
|
$ |
17.71 |
|
$ |
17.40 |
|
|
Tangible book value per share (2) |
|
$ |
16.43 |
|
$ |
13.31 |
|
$ |
12.73 |
|
$ |
12.62 |
|
$ |
12.42 |
|
|
Shares outstanding |
|
103,033,449 |
|
45,777,580 |
|
45,822,834 |
|
46,090,742 |
|
46,080,731 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Pacific Western Bank: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Stockholder’s equity |
|
$ |
3,298,908 |
|
$ |
910,644 |
|
$ |
911,200 |
|
$ |
906,029 |
|
$ |
890,477 |
|
|
Less: Intangible assets |
|
1,745,584 |
|
224,627 |
|
225,991 |
|
234,540 |
|
229,380 |
| |||||
|
Tangible common equity |
|
$ |
1,553,324 |
|
$ |
686,017 |
|
$ |
685,209 |
|
$ |
671,489 |
|
$ |
661,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Total assets |
|
$ |
15,376,440 |
|
$ |
6,507,288 |
|
$ |
6,523,742 |
|
$ |
6,607,926 |
|
$ |
6,699,832 |
|
|
Less: Intangible assets |
|
1,745,584 |
|
224,627 |
|
225,991 |
|
234,540 |
|
229,380 |
| |||||
|
Tangible assets |
|
$ |
13,630,856 |
|
$ |
6,282,661 |
|
$ |
6,297,751 |
|
$ |
6,373,386 |
|
$ |
6,470,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Equity to assets ratio |
|
21.45 |
% |
13.99 |
% |
13.97 |
% |
13.71 |
% |
13.29 |
% | |||||
|
Tangible common equity ratio (1) |
|
11.40 |
% |
10.92 |
% |
10.88 |
% |
10.54 |
% |
10.22 |
% | |||||
(1) Tangible common equity divided by tangible assets.
(2) Tangible common equity divided by shares outstanding.