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CST: 18/11/2019 10:17:28   

PacWest Bancorp Announces Results for the Third Quarter 2019

33 Days ago

Highlights

  • Net Earnings of $110.0 Million, or $0.92 Per Diluted Share
  • Loan and Lease Production of $1.2 Billion; $263 Million of Net Loan Growth
  • Core Deposits Growth of $854 million; Represent 84% of Total Deposits
  • Net Charge-offs to Average Loans of 10 basis points in Third Quarter; 12 basis points Year-To-Date

LOS ANGELES, Oct. 16, 2019 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the third quarter of 2019 of $110.0 million, or $0.92 per diluted share, compared to net earnings for the second quarter of 2019 of $128.1 million, or $1.07 per diluted share. The decrease in net earnings in the third quarter of 2019 was due primarily to a $22.2 million pre-tax gain on the sale of securities in the second quarter of 2019 that contributed $0.13 per diluted share.

Matt Wagner, President and CEO, commented, “We had a solid quarter highlighted by very strong core deposits growth, another quarter of consistent loan production from all of our business groups, and the continuation of our trend of lower credit costs. Our third quarter of 2019 results produced a return on assets of 1.65% and a return on tangible equity of 19.01%.”

Mr. Wagner continued, “In a very competitive market, we achieved our largest core deposit growth quarter ever with growth of $854 million in the third quarter. Core deposits generation, with an emphasis on noninterest-bearing deposits, remains a priority in this declining-rate environment. We achieved solid loan and lease production of $1.2 billion in the third quarter bringing our net loan growth to $778 million, or 6% annualized, for the first nine months of 2019.”

FINANCIAL HIGHLIGHTS

  At or For the 
          At or For the 
       
  Three Months Ended
          Nine Months Ended 
       
    September 30,       June 30,
      Increase
    September 30, 
    Increase
 
Financial Highlights 
  2019       2019       (Decrease)       2019
      2018       (Decrease)
 
                                               
  (Dollars in thousands, except per share data)
Net earnings $   110,026     $   128,125     $   (18,099 )   $   350,755     $   350,298     $   457  
Diluted earnings per share $   0.92     $   1.07     $   (0.15 )   $   2.91     $   2.79     $   0.12  
Return on average assets 1.65 %   1.99 %     (0.34 )   1.80 %   1.94 %     (0.14 )
Return on average                                  
tangible equity (1)  19.01 %   23.15 %     (4.14 )   20.90 %   21.22 %     (0.32 )
                                   
Net interest margin ("NIM")                                  
(tax equivalent) 4.46 %   4.72 %     (0.26 )   4.62 %   5.09 %     (0.47 )
Yield on average loans and                                   
leases (tax equivalent) 5.91 %   6.26 %     (0.35 )   6.11 %   6.20 %     (0.09 )
Cost of average total                                   
deposits 0.83 %   0.81 %     0.02     0.79 %   0.38 %     0.41  
Efficiency ratio 42.3 %   41.6 %     0.7     42.1 %   40.8 %     1.3  
                                   
Total assets $   26,724,627     $   26,344,414     $   380,213     $   26,724,627     $   24,782,126     $   1,942,501  
Loans and leases held                                   
for investment,                                   
net of deferred fees $   18,735,543     $   18,472,852     $   262,691     $   18,735,543     $   17,230,146     $   1,505,397  
Noninterest-bearing                                   
demand deposits $   7,441,185     $   7,299,213     $   141,972     $   7,441,185     $   7,834,480     $   (393,295 )
Core deposits $   16,471,264     $   15,617,488     $   853,776     $   16,471,264     $   15,512,742     $   958,522  
Total deposits $   19,733,203     $   18,805,756     $   927,447     $   19,733,203     $   17,879,543     $   1,853,660  
                                   
As percentage of total                                  
deposits:                                  
Noninterest-bearing                                   
demand deposits 38 %   39 %     (1 )   38 %   44 %     (6 )
Core deposits  84 %   83 %     1     84 %   87 %     (3 )
                                   
Equity to assets ratio  18.41 %   18.42 %     (0.01 )   18.41 %   19.13 %     (0.72 )
Tangible common equity                                   
ratio (1) 9.65 %   9.50 %     0.15     9.65 %   9.61 %     0.04  
Book value per share $   41.06     $   40.49     $   0.57     $   41.06     $   38.46     $   2.60  
Tangible book value per                                   
share (1) $   19.43     $   18.83     $   0.60     $   19.43     $   17.28     $   2.15  
                                   
(1) Non-GAAP measure.                                  


INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $8.7 million to $252.2 million for the third quarter of 2019 compared to $260.9 million for the second quarter of 2019 due mainly to a lower yield on average loans and leases, offset partially by a higher balance of average loans and leases and one more day in the third quarter of 2019. The tax equivalent yield on average loans and leases was 5.91% for the third quarter of 2019 compared to 6.26% for the second quarter of 2019. The decrease in the yield on average loans and leases was due principally to the repricing of variable-rate loans causing lower coupon interest in addition to lower loan prepayment fees in the third quarter compared to the second quarter. The prepayment fees added five basis points to the third quarter loan and lease yield and 14 basis points to the second quarter loan and lease yield.

The tax equivalent NIM was 4.46% for the third quarter of 2019 compared to 4.72% for the second quarter of 2019. The decrease in the NIM was due mainly to lower coupon interest, lower loan prepayment fees, and lower loan fee income.

The cost of average total deposits increased to 0.83% for the third quarter of 2019 from 0.81% for the second quarter of 2019 due to a higher average balance of core interest-bearing deposits combined with a lower average balance of noninterest-bearing deposits. The cost of average interest-bearing deposits declined by one basis point in the third quarter and the cost of average total deposits for the month of September was 0.80%, reflecting actions taken to reduce certain deposit rates in light of the fed funds target rate cuts during the third quarter.

Provision for Credit Losses

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

  Three Months Ended
       
  September 30,     June 30,     Increase  
Provision for Credit Losses 2019     2019     (Decrease)  
          (In thousands)          
Addition to allowance for loan and lease losses $   8,000     $   10,000     $   (2,000 )
Reduction to reserve for unfunded loan commitments   (1,000 )     (2,000 )     1,000  
Total provision for credit losses $   7,000     $   8,000     $   (1,000 )


Noninterest Income

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

  Three Months Ended        
  September 30,   June 30,     Increase  
Noninterest Income 2019   2019     (Decrease)  
        (In thousands)          
Service charges on deposit accounts $   3,525   $   3,771     $   (246 )
Other commissions and fees   10,855     11,590       (735 )
Leased equipment income   9,615     9,182       433  
Gain on sale of loans and leases   765     326       439  
Gain on sale of securities   908     22,192       (21,284 )
Other income:              
Dividends and gains (losses) on equity investments   14     (83 )     97  
Warrant income   3,936     1,214       2,722  
Other   3,811     2,701       1,110  
Total noninterest income  $   33,429   $   50,893     $   (17,464 )


Noninterest income decreased by $17.5 million to $33.4 million for the third quarter of 2019 compared to $50.9 million for the second quarter of 2019 due primarily to a $21.3 million decrease in the gain on sale of securities attributable to a $0.9 million net gain on sales of $143 million in the third quarter of 2019 compared to a $22.2 million net gain on sales of $980 million in the second quarter of 2019. We re-positioned a portion of our securities portfolio in the second quarter to shorten the duration of the portfolio and to enhance liquidity. Partially offsetting the decrease in the gain on sale of securities was a $2.7 million increase in warrant income and a $1.1 million increase in other income for the third quarter of 2019. The increase in warrant income was due to higher gains resulting from exercised warrants. The increase in other income was mainly due to higher gains from lease terminations.

Noninterest Expense

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

  Three Months Ended        
  September 30,   June 30,     Increase  
Noninterest Expense 2019   2019     (Decrease)  
        (In thousands)          
Compensation $   71,424   $   68,956     $   2,468  
Occupancy    14,089     14,457       (368 )
Data processing   7,044     6,817       227  
Other professional services   4,400     4,629       (229 )
Insurance and assessments   4,100     4,098       2  
Intangible asset amortization   4,833     4,870       (37 )
Leased equipment depreciation   5,951     5,558       393  
Foreclosed assets expense (income), net   8     (146 )     154  
Loan expense   3,628     3,451       177  
Other   11,332     12,737       (1,405 )
Total noninterest expense $   126,809   $   125,427     $   1,382  

 

Noninterest expense increased by $1.4 million to $126.8 million for the third quarter of 2019 compared to $125.4 million for the second quarter of 2019 attributable primarily to a $2.5 million increase in compensation expense, offset partially by a $1.4 million decrease in other expense. Compensation expense increased due mainly to higher incentives expense and higher stock compensation expense, partially offset by lower payroll taxes and benefits expense. Other expense decreased primarily due to lower business development expense and a loss on the early termination of an office lease in the second quarter.

Income Taxes

The overall effective income tax rate was 27.5% for the third quarter of 2019 and 28.2% for the second quarter of 2019. The effective tax rate for the full year 2019 is estimated to be in the range of 27-28%.

BALANCE SHEET HIGHLIGHTS

Loans and Leases

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

  Three Months Ended     Nine Months Ended
Roll Forward of Loans and Leases Held September 30,      June 30,      September 30, 
for Investment, Net of Deferred Fees (1) 2019     2019     2019
          (Dollars in thousands)          
Balance, beginning of period $   18,472,852     $   18,307,697     $   17,957,713  
Additions:                
Production   1,230,817       1,436,299       3,841,954  
Disbursements   1,288,111       1,293,747       3,774,830  
Total production and disbursements   2,518,928       2,730,046       7,616,784  
Reductions:                
Payoffs   (1,390,883 )     (1,529,213 )     (3,853,396 )
Paydowns   (837,551 )     (979,987 )     (2,856,502 )
Total payoffs and paydowns   (2,228,434 )     (2,509,200 )     (6,709,898 )
Sales    (21,302 )     (38,054 )     (76,292 )
Transfers to foreclosed assets   -       -       (37 )
Charge-offs   (6,501 )     (17,637 )     (27,603 )
Transfers to loans held for sale   -       -       (25,124 )
Total reductions   (2,256,237 )     (2,564,891 )     (6,838,954 )
Net increase    262,691       165,155       777,830  
Balance, end of period $   18,735,543     $   18,472,852     $   18,735,543  
                 
Weighted average rate on production (2) 5.45 %   5.15 %   5.21 %
                 
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.
(2) The weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees. Amortized fees added approximately 30 basis points to loan yields in 2019 and 31 basis points to loan yields in 2018.


Loans and leases held for investment, net of deferred fees, increased by $262.7 million, or 6% annualized, in the third quarter of 2019 to $18.7 billion at September 30, 2019. The net loan growth in the third quarter was primarily from the asset-based loan portfolio class and residential real estate construction loan portfolio class.

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

  September 30, 2019     June 30, 2019     September 30, 2018  
    % of        % of        % of   
Loan and Lease Portfolio  Amount Total     Amount Total     Amount Total  
          (In thousands)          
Real estate mortgage:                      
Commercial $   4,300,566 23 %   $   4,435,274 24 %   $   4,932,823 28 %
Income producing and other                       
residential   3,596,358 19 %     3,640,752 20 %     2,745,837 16 %
Total real estate mortgage   7,896,924 42 %     8,076,026 44 %     7,678,660 44 %
Real estate construction and land:                      
Commercial   1,009,362 6 %     972,891 5 %     854,346 5 %
Residential   1,542,112 8 %     1,403,239 8 %     1,146,611 7 %
Total real estate construction                       
and land   2,551,474 14 %     2,376,130 13 %     2,000,957 12 %
Total real estate    10,448,398 56 %     10,452,156 57 %     9,679,617 56 %
Commercial:                      
Asset-based   3,810,741 20 %     3,606,007 19 %     3,222,311 19 %
Venture capital   2,209,649 12 %     2,194,743 12 %     2,031,895 12 %
Other commercial   1,858,167 10 %     1,773,564 10 %     1,897,852 11 %
Total commercial   7,878,557 42 %     7,574,314 41 %     7,152,058 42 %
Consumer   408,588 2 %     446,382 2 %     398,471 2 %
Total loans and leases held for                       
investment, net of deferred fees $   18,735,543 100 %   $   18,472,852 100 %   $   17,230,146 100 %
                       
Total unfunded loan commitments $   7,790,796       $   7,610,899       $   7,055,833    


Allowance for Credit Losses

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

  Three Months Ended September 30, 2019
  Allowance for     Reserve for      Total  
Allowance for Credit  Loan and      Unfunded Loan     Allowance for  
Losses Rollforward Lease Losses     Commitments     Credit Losses  
        (In thousands)        
Beginning balance $   135,037     $   34,861     $   169,898  
Charge-offs   (6,501 )     -       (6,501 )
Recoveries   2,016       -       2,016  
Net charge-offs   (4,485 )     -       (4,485 )
Provision    8,000       (1,000 )     7,000  
Ending balance $   138,552     $   33,861     $   172,413  


  Three Months Ended June 30, 2019 
  Allowance for     Reserve for      Total  
Allowance for Credit  Loan and      Unfunded Loan     Allowance for  
Losses Rollforward Lease Losses     Commitments     Credit Losses  
        (In thousands)        
Beginning balance $   136,281     $   36,861     $   173,142  
Charge-offs   (17,637 )     -       (17,637 )
Recoveries   6,393       -       6,393  
Net charge-offs   (11,244 )     -       (11,244 )
Provision    10,000       (2,000 )     8,000  
Ending balance $   135,037     $   34,861     $   169,898  


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

Gross charge-offs for the third quarter of 2019 were $6.5 million and included $4.4 million for venture capital loans and $1.7 million for other commercial loans compared to gross charge-offs for the second quarter of 2019 of $17.6 million that included $11.8 million for a single asset-based loan, $3.7 million for other commercial loans, and $1.5 million for venture capital loans.

Recoveries for the third quarter of 2019 were $2.0 million and included $1.2 million for other commercial loans and $0.4 million for venture capital loans compared to recoveries for the second quarter of 2019 of $6.4 million that included $4.8 million for venture capital loans and $1.0 million for other commercial loans.

For the third quarter of 2019 and second quarter of 2019, annualized net charge-offs to average loans and leases were 0.10% and 0.25%.

Deposits and Client Investment Funds

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

  September 30, 2019     June 30, 2019     September 30, 2018  
    % of        % of        % of   
Deposit Composition Amount Total     Amount Total     Amount Total  
          (Dollars in thousands)          
Noninterest-bearing demand $   7,441,185 38 %   $   7,299,213 39 %   $   7,834,480 44 %
Interest checking    3,645,660 18 %     3,220,353 17 %     2,277,537 13 %
Money market    4,870,344 25 %     4,578,083 24 %     4,782,724 27 %
Savings    514,075 3 %     519,839 3 %     618,001 3 %
Total core deposits   16,471,264 84 %     15,617,488 83 %     15,512,742 87 %
Non-core non-maturity deposits   479,732 2 %     436,833 2 %     483,528 3 %
Total non-maturity deposits   16,950,996 86 %     16,054,321 85 %     15,996,270 90 %
Time deposits $250,000 and under   2,282,976 12 %     2,284,023 12 %     1,509,214 8 %
Time deposits over $250,000   499,231 2 %     467,412 3 %     374,059 2 %
Total time deposits   2,782,207 14 %     2,751,435 15 %     1,883,273 10 %
Total deposits $   19,733,203 100 %   $   18,805,756 100 %   $   17,879,543 100 %


At September 30, 2019, core deposits totaled $16.5 billion, or 84% of total deposits, including $7.4 billion of noninterest-bearing demand deposits, or 38% of total deposits. The $854 million increase in core deposits for the third quarter of 2019 included strong growth in both our Venture Banking and Community Banking groups.

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds at September 30, 2019 were $1.8 billion, of which $1.5 billion was managed by PWAM.

CREDIT QUALITY

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

  September 30,     June 30,     Increase  
Credit Quality Metrics  2019     2019     (Decrease)  
        (Dollars in thousands)        
NPAs and Performing TDRs:                
Nonaccrual loans and leases held for investment (1) $   99,113     $   81,265     $   17,848  
Accruing loans contractually past due 90 days or more   -       -       -  
Foreclosed assets, net   1,366       1,472       (106 )
  Total nonperforming assets ("NPAs") $   100,479     $   82,737     $   17,742  
                 
Nonaccrual loans and leases held for investment                 
to loans and leases held for investment 0.53 %   0.44 %      
Nonperforming assets to loans and leases                 
held for investment and foreclosed assets 0.54 %   0.45 %      
                 
Nonaccrual loans and leases held for investment (1) $   99,113     $   81,265     $   17,848  
Performing TDRs held for investment   16,329       16,464       (135 )
Total impaired loans and leases $   115,442     $   97,729     $   17,713  
                 
Loan and Lease Credit Risk Ratings:                
Pass  $   18,279,011     $   18,042,569     $   236,442  
Special mention   267,925       239,304       28,621  
Classified    188,607       190,979       (2,372 )
Total loans and leases held for investment,                 
net of deferred fees $   18,735,543     $   18,472,852     $   262,691  
                 
Classified loans and leases held for investment                 
to loans and leases held for investment 1.01 %   1.03 %      
                 
Allowance for Credit Losses:                
Allowance for credit losses $   172,413     $   169,898     $   2,515  
Provision for credit losses (for the quarter) $   7,000     $   8,000     $   (1,000 )
Net charge-offs (for the quarter) $   4,485     $   11,244     $   (6,759 )
Net charge-offs to average loans and leases                
(for the quarter) 0.10 %   0.25 %      
Allowance for credit losses to loans and leases                
held for investment 0.92 %   0.92 %      
Allowance for credit losses to nonaccrual loans                 
and leases held for investment 174.0 %   209.1 %      
                 
(1) Nonaccrual loans include guaranteed amounts of $15.4 million at September 30, 2019 and $13.0 million at June 30, 2019.


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

During the third quarter of 2019, nonaccrual loans and leases increased by $17.8 million, while classified loans and leases decreased by $2.4 million and special mention loans and leases increased by $28.6 million. The increase in nonaccrual loans was primarily attributable to one previously classified $14.9 million security monitoring commercial loan. The increase in special mention loans and leases was due primarily to the downgrade of two security monitoring commercial loans totaling $49 million, partially offset by a net decrease from other activity.

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

  Nonaccrual Loans and Leases    Accruing and
  September 30, 2019     June 30, 2019     30-89 Days Past Due 
    % of        % of      September 30,   June 30,
    Loan        Loan      2019   2019
  Amount Category     Amount Category     Amount   Amount
          (Dollars in thousands)          
Real estate mortgage:                      
Commercial $   19,515 0.5 %   $   17,012 0.4 %    $ -   $   3,948
Income producing and other                       
residential   2,868 0.1 %     2,883 0.1 %     3,750     3,262
Total real estate mortgage   22,383 0.3 %     19,895 0.2 %     3,750     7,210
Real estate construction and land:                      
Commercial   377 0.0 %     390 0.0 %     -     -
Residential   - 0.0 %     - 0.0 %     2,622     4,672
Total real estate                       
construction and land   377 0.0 %     390 0.0 %     2,622     4,672
Commercial:                      
Asset-based   33,015 0.9 %     32,236 0.9 %     48     12,382
Venture capital   20,131 0.9 %     22,501 1.0 %     -     -
Other commercial   22,554 1.2 %     5,799 0.3 %     4,068     439
Total commercial   75,700 1.0 %     60,536 0.8 %     4,116     12,821
Consumer   653 0.2 %     444 0.1 %     795     964
Total held for investment  $   99,113 0.5 %   $   81,265 0.4 %   $   11,283   $   25,667


STOCK REPURCHASE PROGRAM

During the third quarter of 2019, there were no stock repurchases. At September 30, 2019, the remaining amount that could be used to repurchase shares under the $225 million Stock Repurchase Program was $124.7 million.

ABOUT PACWEST BANCORP

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

FORWARD LOOKING STATEMENTS

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

We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
                 
  September 30,     June 30,     December 31,  
  2019     2019     2018  
                 
   (Dollars in thousands, except per share data) 
ASSETS:                
Cash and due from banks $   252,596     $   185,075     $   175,830  
Interest-earning deposits in financial institutions   483,405       422,663       209,937  
Total cash and cash equivalents    736,001       607,738       385,767  
                 
Securities available-for-sale, at estimated fair value   3,817,348       3,807,244       4,009,431  
Federal Home Loan Bank stock, at cost   26,865       43,146       32,103  
Total investment securities   3,844,213       3,850,390       4,041,534  
                 
Loans held for sale   -       -       -  
                 
Gross loans and leases held for investment   18,796,011       18,532,740       18,026,365  
Deferred fees, net   (60,468 )     (59,888 )     (68,652 )
Total loans and leases held for investment,                
net of deferred fees   18,735,543       18,472,852       17,957,713  
Allowance for loan and lease losses   (138,552 )     (135,037 )     (132,472 )
Total loans and leases held for investment, net   18,596,991       18,337,815       17,825,241  
                 
Equipment leased to others under operating leases   295,854       300,668       292,677  
Premises and equipment, net   37,926       38,162       34,661  
Foreclosed assets, net   1,366       1,472       5,299  
Deferred tax asset, net   -       -       17,489  
Goodwill   2,548,670       2,548,670       2,548,670  
Core deposit and customer relationship intangibles, net   42,547       47,380       57,120  
Other assets   621,059       612,119       522,896  
Total assets $   26,724,627     $   26,344,414     $   25,731,354  
                 
LIABILITIES:                
Noninterest-bearing deposits $   7,441,185     $   7,299,213     $   7,888,915  
Interest-bearing deposits   12,292,018       11,506,543       10,981,586  
Total deposits   19,733,203       18,805,756       18,870,501  
Borrowings   1,253,031       1,913,059       1,371,114  
Subordinated debentures   456,145       456,112       453,846  
Accrued interest payable and other liabilities   362,140       317,477       210,305  
Total liabilities   21,804,519       21,492,404       20,905,766  
STOCKHOLDERS' EQUITY (1)   4,920,108       4,852,010       4,825,588  
Total liabilities and stockholders’ equity $   26,724,627     $   26,344,414     $   25,731,354  
                 
Book value per share $   41.06     $   40.49     $   39.17  
Tangible book value per share (2) $   19.43     $   18.83     $   18.02  
Shares outstanding    119,831,192       119,829,104       123,189,833  
                 
(1) Includes net unrealized gain (loss) on securities                
available-for-sale, net $   95,887     $   73,066     $   (6,075 )
(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,
 
  2019   2019     2018     2019     2018  
                           
  (Dollars in thousands, except per share data)
Interest income:                          
Loans and leases $   275,978   $   284,236     $   264,062     $   834,443     $   775,447  
Investment securities   28,806     28,948       28,061       87,434       81,929  
Deposits in financial institutions   2,424     1,349       519       4,423       1,555  
Total interest income   307,208     314,533       292,642       926,300       858,931  
                           
Interest expense:                          
Deposits   40,703     38,720       21,121       113,658       51,306  
Borrowings   6,852     7,210       3,814       21,772       7,383  
Subordinated debentures   7,417     7,705       7,390       22,860       21,093  
Total interest expense   54,972     53,635       32,325       158,290       79,782  
                           
Net interest income   252,236     260,898       260,317       768,010       779,149  
Provision for credit losses   7,000     8,000       11,500       19,000       33,000  
Net interest income after                           
provision for credit losses   245,236     252,898       248,817       749,010       746,149  
                           
Noninterest income:                          
Service charges on deposit accounts   3,525     3,771       3,979       11,026       12,418  
Other commissions and fees   10,855     11,590       12,397       33,453       34,429  
Leased equipment income   9,615     9,182       9,120       28,079       28,497  
Gain on sale of loans and leases   765     326       -       1,091       4,675  
Gain on sale of securities   908     22,192       826       25,261       7,390  
Other income   7,761     3,832       10,590       16,476       27,700  
Total noninterest income   33,429     50,893       36,912       115,386       115,109  
                           
Noninterest expense:                          
Compensation    71,424     68,956       72,333       211,225       213,269  
Occupancy   14,089     14,457       13,069       42,866       39,867  
Data processing   7,044     6,817       6,740       20,786       20,295  
Other professional services   4,400     4,629       6,058       13,542       15,754  
Insurance and assessments   4,100     4,098       5,446       12,236       16,503  
Intangible asset amortization   4,833     4,870       5,587       14,573       17,520  
Leased equipment depreciation   5,951     5,558       5,001       17,160       15,613  
Foreclosed assets expense (income), net   8     (146 )     (257 )     (109 )     (440 )
Acquisition, integration and                           
reorganization costs    -     -       800       618       800  
Loan expense   3,628     3,451       2,249       9,964       7,578  
Other expense   11,332     12,737       11,127       35,662       35,238  
Total noninterest expense   126,809     125,427       128,153       378,523       381,997  
                           
Earnings before income taxes   151,856     178,364       157,576       485,873       479,261  
Income tax expense    41,830     50,239       41,289       135,118       128,963  
Net earnings  $   110,026   $   128,125     $   116,287     $   350,755     $   350,298  
                           
Basic and diluted earnings per share $   0.92   $   1.07     $   0.94     $   2.91     $   2.79  
Dividends declared and paid per share $   0.60   $   0.60     $   0.60     $   1.80     $   1.70  




PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
                             
  Three Months Ended
  Nine Months Ended
  September 30,     June 30,     September 30,     September 30,
  2019     2019     2018     2019     2018  
                             
  (In thousands, except per share data)
Basic Earnings Per Share:                            
Net earnings  $   110,026     $   128,125     $   116,287     $   350,755     $   350,298  
Less: earnings allocated to unvested                             
restricted stock (1)   (1,369 )     (1,190 )     (1,428 )     (3,725 )     (3,899 )
Net earnings allocated to common                             
shares $   108,657     $   126,935     $   114,859     $   347,030     $   346,399  
                             
Weighted-average basic shares and                             
unvested restricted stock outstanding   119,831       120,042       123,657       120,691       125,728  
Less: weighted-average unvested                             
restricted stock outstanding   (1,622 )     (1,462 )     (1,537 )     (1,480 )     (1,473 )
Weighted-average basic shares                             
outstanding   118,209       118,580       122,120       119,211       124,255  
                             
Basic earnings per share $   0.92     $   1.07     $   0.94     $   2.91     $   2.79  
                             
Diluted Earnings Per Share:                            
Net earnings allocated to common                             
shares $   108,657     $   126,935     $   114,859     $   347,030     $   346,399  
                             
Weighted-average basic shares                             
outstanding   118,209       118,580       122,120       119,211       124,255  
                             
Diluted earnings per share $   0.92     $   1.07     $   0.94     $   2.91     $   2.79  
                                       
(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, 2019     June 30, 2019     September 30, 2018  
    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:                            
Loans and leases (1)(2) $   18,539,281 $  276,309 5.91 %   $   18,239,690 $  284,513 6.26 %   $   16,913,792 $  264,371 6.20 %
Investment securities (3)   3,809,243   32,213 3.36 %     3,790,436   29,462 3.12 %     3,844,201   29,711 3.07 %
Deposits in financial                             
institutions   445,152   2,424 2.16 %     228,702   1,349 2.37 %     108,485   519 1.90 %
Total interest-earning                             
assets (1)   22,793,676   310,946 5.41 %     22,258,828   315,324 5.68 %     20,866,478   294,601 5.60 %
Other assets   3,612,927           3,590,361           3,491,293      
Total assets $   26,406,603         $   25,849,189         $   24,357,771      
                             
Liabilities and                             
Stockholders' Equity:                            
Interest checking $   3,598,698   11,942 1.32 %   $   3,242,960   10,644 1.32 %   $   2,433,837   5,135 0.84 %
Money market   5,121,856   14,807 1.15 %     5,046,021   14,604 1.16 %     5,270,297   10,689 0.80 %
Savings   515,649   218 0.17 %     525,648   227 0.17 %     629,241   233 0.15 %
Time   2,795,573   13,736 1.95 %     2,731,156   13,245 1.95 %     1,778,552   5,064 1.13 %
Total interest-bearing                             
deposits   12,031,776   40,703 1.34 %     11,545,785   38,720 1.35 %     10,111,927   21,121 0.83 %
Borrowings   1,181,313   6,852 2.30 %     1,142,223   7,210 2.53 %     720,449   3,814 2.10 %
Subordinated debentures   456,011   7,417 6.45 %     454,901   7,705 6.79 %     452,312   7,390 6.48 %
Total interest-bearing                             
liabilities   13,669,100   54,972 1.60 %     13,142,909   53,635 1.64 %     11,284,688   32,325 1.14 %
Noninterest-bearing                             
demand deposits   7,487,555           7,544,027           8,120,306      
Other liabilities   359,202           343,364           203,958      
Total liabilities   21,515,857           21,030,300           19,608,952      
Stockholders' equity   4,890,746           4,818,889           4,748,819      
Total liabilities and                             
stockholders' equity $   26,406,603         $   25,849,189         $   24,357,771      
Net interest income (1)   $  255,974         $  261,689         $  262,276    
Net interest spread (1)     3.81 %       4.04 %       4.46 %
Net interest margin (1)     4.46 %       4.72 %       4.99 %
                             
Total deposits (4) $   19,519,331 $   40,703 0.83 %   $   19,089,812 $   38,720 0.81 %   $   18,232,233 $   21,121 0.46 %
                                         
(1) Tax equivalent. 
(2) Includes discount accretion on acquired loans of $2.6 million, $3.5 million, and $6.1 million for the three months ended September 30, 2019, June 30, 2019, and September 30, 2018, respectively.
(3) Includes tax-equivalent adjustments of $3.4 million, $0.5 million, and $1.7 million for the three months ended September 30, 2019, June 30, 2019, and September 30, 2018 related to tax-exempt income on investment securities.
The federal statutory tax rate utilized was 21%. 
(4) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.



PACWEST BANCORP AND SUBSIDIARIES                            
FIVE QUARTER BALANCE SHEET                            
                             
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2019     2019     2019     2018     2018  
                             
  (Dollars in thousands, except per share data)
ASSETS:                            
Cash and due from banks $   252,596     $   185,075     $   224,758     $   175,830     $   196,502  
Interest-earning deposits in financial                             
institutions   483,405       422,663       332,124       209,937       185,284  
Total cash and cash equivalents    736,001       607,738       556,882       385,767       381,786  
                             
Securities available-for-sale   3,817,348       3,807,244       3,994,708       4,009,431       3,820,333  
Federal Home Loan Bank stock   26,865       43,146       29,430       32,103       31,077  
  Total investment securities   3,844,213       3,850,390       4,024,138       4,041,534       3,851,410  
                             
Loans held for sale   -        -       25,124       -       -  
                             
Gross loans and leases held for investment   18,796,011       18,532,740       18,371,295       18,026,365       17,295,589  
Deferred fees, net   (60,468 )     (59,888 )     (63,598 )     (68,652 )     (65,443 )
Total loans and leases held for                            
investment, net of deferred fees   18,735,543       18,472,852       18,307,697       17,957,713       17,230,146  
Allowance for loan and lease losses   (138,552 )     (135,037 )     (136,281 )     (132,472 )     (141,920 )
Total loans and leases held for                            
investment, net   18,596,991       18,337,815       18,171,416       17,825,241       17,088,226  
                             
Equipment leased to others under                             
operating leases   295,854       300,668       293,853       292,677       275,707  
Premises and equipment, net   37,926       38,162       37,783       34,661       34,012  
Foreclosed assets, net   1,366       1,472       3,291       5,299       4,407  
Deferred tax asset, net   -       -       -       17,489       41,280  
Goodwill   2,548,670       2,548,670       2,548,670       2,548,670       2,548,670  
Core deposit and customer relationship                            
intangibles, net   42,547       47,380       52,250       57,120       62,106  
Other assets   621,059       612,119       610,731       522,896       494,522  
Total assets $   26,724,627     $   26,344,414     $   26,324,138     $   25,731,354     $   24,782,126  
                             
LIABILITIES:                            
Noninterest-bearing deposits $   7,441,185     $   7,299,213     $   7,712,409     $   7,888,915     $   7,834,480  
Interest-bearing deposits   12,292,018       11,506,543       11,573,518       10,981,586       10,045,063  
Total deposits   19,733,203       18,805,756       19,285,927       18,870,501       17,879,543  
Borrowings   1,253,031       1,913,059       1,481,087       1,371,114       1,513,166  
Subordinated debentures   456,145       456,112       454,458       453,846       452,944  
Accrued interest payable and other                            
liabilities   362,140       317,477       311,684       210,305       194,788  
Total liabilities   21,804,519       21,492,404       21,533,156       20,905,766       20,040,441  
STOCKHOLDERS' EQUITY (1)   4,920,108       4,852,010       4,790,982       4,825,588       4,741,685  
Total liabilities and stockholders’                             
equity $   26,724,627     $   26,344,414     $   26,324,138     $   25,731,354     $   24,782,126  
                             
Book value per share $   41.06     $   40.49     $   39.86     $   39.17     $   38.46  
Tangible book value per share (2) $   19.43     $   18.83     $   18.22     $   18.02     $   17.28  
Shares outstanding   119,831,192       119,829,104       120,201,149       123,189,833       123,283,450  
                             
(1) Includes net unrealized gain (loss) on                             
securities available-for-sale, net $   95,887     $   73,066     $   37,258     $   (6,075 )   $   (43,854 )
(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,  
  2019   2019     2019   2018     2018  
                         
  (Dollars in thousands, except per share data)
Interest income:                        
Loans and leases $   275,978   $   284,236     $   274,229   $   272,522     $   264,062  
Investment securities   28,806     28,948       29,680     29,690       28,061  
Deposits in financial institutions   2,424     1,349       650     527       519  
Total interest income   307,208     314,533       304,559     302,739       292,642  
                         
Interest expense:                        
Deposits   40,703     38,720       34,235     28,834       21,121  
Borrowings   6,852     7,210       7,710     4,602       3,814  
Subordinated debentures   7,417     7,705       7,738     7,538       7,390  
Total interest expense   54,972     53,635       49,683     40,974       32,325  
                         
Net interest income   252,236     260,898       254,876     261,765       260,317  
Provision for credit losses   7,000     8,000       4,000     12,000       11,500  
Net interest income after                         
provision for credit losses   245,236     252,898       250,876     249,765       248,817  
                         
Noninterest income:                        
Service charges on deposit accounts   3,525     3,771       3,730     4,091       3,979  
Other commissions and fees   10,855     11,590       11,008     11,114       12,397  
Leased equipment income   9,615     9,182       9,282     9,384       9,120  
Gain on sale of loans and leases   765     326       -     -       -  
Gain on sale of securities   908     22,192       2,161     786       826  
Other income   7,761     3,832       4,883     8,151       10,590  
Total noninterest income   33,429     50,893       31,064     33,526       36,912  
                         
Noninterest expense:                        
Compensation    71,424     68,956       70,845     69,299       72,333  
Occupancy   14,089     14,457       14,320     13,356       13,069  
Data processing   7,044     6,817       6,925     6,930       6,740  
Other professional services   4,400     4,629       4,513     6,198       6,058  
Insurance and assessments   4,100     4,098       4,038     4,202       5,446  
Intangible asset amortization   4,833     4,870       4,870     4,986       5,587  
Leased equipment depreciation   5,951     5,558       5,651     5,758       5,001  
Foreclosed assets expense (income), net   8     (146 )     29     (311 )     (257 )
Acquisition, integration and                         
reorganization costs    -     -       618     970       800  
Loan expense   3,628     3,451       2,885     2,991       2,249  
Other expense   11,332     12,737       11,593     14,856       11,127  
Total noninterest expense   126,809     125,427       126,287     129,235       128,153  
                         
Earnings before income taxes   151,856     178,364       155,653     154,056       157,576  
Income tax expense    41,830     50,239       43,049     39,015       41,289  
Net earnings  $   110,026   $   128,125     $   112,604   $   115,041     $   116,287  
                         
Basic and diluted earnings per share $   0.92   $   1.07     $   0.92   $   0.93     $   0.94  
Dividends declared and paid per share $   0.60   $   0.60     $   0.60   $   0.60     $   0.60  

 


PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
                             
  At or For the Three Months Ended
  September 30,     June 30,     March 31,     December 31,     September 30,  
  2019     2019     2019     2018     2018  
                             
  (Dollars in thousands)
Performance Ratios:                            
Return on average assets (1) 1.65 %   1.99 %   1.77 %   1.84 %   1.89 %
Return on average equity (1) 8.93 %   10.66 %   9.48 %   9.59 %   9.72 %
Return on average tangible equity (1)(2) 19.01 %   23.15 %   20.64 %   21.23 %   21.61 %
Efficiency ratio 42.3 %   41.6 %   42.4 %   41.7 %   40.9 %
Noninterest expense as a percentage                            
of average assets (1) 1.91 %   1.95 %   1.99 %   2.07 %   2.09 %
                             
Average Yields/Costs (1):                            
Yield on:                            
Average loans and leases (3) 5.91 %   6.26 %   6.16 %   6.27 %   6.20 %
Average interest-earning assets (3) 5.41 %   5.68 %   5.60 %   5.68 %   5.60 %
Cost of:                            
Average interest-bearing deposits  1.34 %   1.35 %   1.24 %   1.10 %   0.83 %
Average total deposits  0.83 %   0.81 %   0.73 %   0.62 %   0.46 %
Average interest-bearing liabilities  1.60 %   1.64 %   1.57 %   1.40 %   1.14 %
Net interest spread (3) 3.81 %   4.04 %   4.03 %   4.28 %   4.46 %
Net interest margin (3) 4.46 %   4.72 %   4.69 %   4.91 %   4.99 %
                             
Average Balances:                            
Assets:                            
Loans and leases, net of deferred fees $   18,539,281     $   18,239,690     $   18,064,230     $   17,275,343     $   16,913,792  
Interest-earning assets   22,793,676       22,258,828       22,144,711       21,269,363       20,866,478  
Total assets   26,406,603       25,849,189       25,775,949       24,784,462       24,357,771  
Liabilities:                            
Noninterest-bearing deposits   7,487,555       7,544,027       7,783,652       8,163,699       8,120,306  
Interest-bearing deposits   12,031,776       11,545,785       11,156,773       10,422,761       10,111,927  
Total deposits   19,519,331       19,089,812       18,940,425       18,586,460       18,232,233  
Borrowings    1,181,313       1,142,223       1,218,319       764,039       720,449  
Subordinated debentures   456,011       454,901       454,203       452,998       452,312  
Interest-bearing liabilities   13,669,100       13,142,909       12,829,295       11,639,798       11,284,688  
Stockholders' equity   4,890,746       4,818,889       4,815,965       4,758,401       4,748,819  
                             
(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,  
  2019     2019     2019     2018     2018  
                             
  (Dollars in thousands)
Credit Quality Ratios:                            
Nonaccrual loans and leases held for                             
investment to loans and leases                             
held for investment 0.53 %   0.44 %   0.48 %   0.44 %   0.66 %
Nonperforming assets to loans and                             
leases held for investment and                             
foreclosed assets 0.54 %   0.45 %   0.50 %   0.47 %   0.68 %
Classified loans and leases held for                             
investment to loans and leases                             
held for investment 1.01 %   1.03 %   1.04 %   1.32 %   1.51 %
Provision for credit losses (for the                             
quarter) to average loans and leases                             
held for investment (annualized) 0.15 %   0.18 %   0.09 %   0.28 %   0.27 %
Net charge-offs (for the quarter) to                             
average loans and leases held                             
for investment (annualized) 0.10 %   0.25 %   0.00 %   0.46 %   0.04 %
Trailing 12 months net charge-offs                             
to average loans and leases                            
held for investment 0.20 %   0.18 %   0.22 %   0.26 %   0.28 %
Allowance for credit losses to loans                             
and leases held for investment 0.92 %   0.92 %   0.95 %   0.94 %   1.03 %
Allowance for credit losses to                             
nonaccrual loans and leases                             
held for investment 174.0 %   209.1 %   195.6 %   213.5 %   156.9 %
                             
PacWest Bancorp Consolidated                             
Capital:                            
Tier 1 leverage ratio (1) 9.50 %   9.49 %   9.38 %   10.13 %   10.10 %
Common equity tier 1 capital ratio (1) 9.55 %   9.53 %   9.48 %   10.01 %   10.18 %
Tier 1 capital ratio (1) 9.55 %   9.53 %   9.48 %   10.01 %   10.18 %
Total capital ratio (1) 12.16 %   12.18 %   12.15 %   12.72 %   13.03 %
Risk-weighted assets (1) $   23,579,614     $   23,117,199     $   22,939,074     $   22,525,096     $   21,650,542  
                             
Equity to assets ratio  18.41 %   18.42 %   18.20 %   18.75 %   19.13 %
Tangible common equity ratio (2) 9.65 %   9.50 %   9.23 %   9.60 %   9.61 %
Book value per share $   41.06     $   40.49     $   39.86     $   39.17     $   38.46  
Tangible book value per share (2) $   19.43     $   18.83     $   18.22     $   18.02     $   17.28  
                             
Pacific Western Bank Capital:                            
Tier 1 leverage ratio (1) 10.72 %   10.76 %   10.57 %   10.80 %   10.78 %
Common equity tier 1 capital ratio (1) 10.79 %   10.80 %   10.69 %   10.68 %   10.87 %
Tier 1 capital ratio (1) 10.79 %   10.80 %   10.69 %   10.68 %   10.87 %
Total capital ratio (1) 11.52 %   11.53 %   11.45 %   11.44 %   11.69 %
                             
(1) Capital information for September 30, 2019 is preliminary.                            
(2) Non-GAAP measure.                            


GAAP TO NON-GAAP RECONCILIATIONS

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

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

  Three Months Ended
  Nine Months Ended
  September 30,     June 30,     September 30,     September 30,
Return on Average Tangible Equity 2019     2019     2018     2019     2018  
                             
  (Dollars in thousands)  
Net earnings $   110,026     $   128,125     $   116,287     $   350,755     $   350,298  
                             
Average stockholders' equity $   4,890,746     $   4,818,889     $   4,748,819     $   4,842,140     $   4,826,944  
Less: Average intangible assets   2,593,925       2,598,762       2,614,055       2,598,806       2,619,624  
Average tangible common equity $   2,296,821     $   2,220,127     $   2,134,764     $   2,243,334     $   2,207,320  
                             
Return on average equity (1) 8.93 %   10.66 %   9.72 %   9.68 %   9.70 %
Return on average tangible equity (2) 19.01 %   23.15 %   21.61 %   20.90 %   21.22 %
                             
(1) Annualized net earnings divided by average stockholders' equity.                      
(2) Annualized net earnings divided by average tangible common equity.                      


Tangible Common Equity Ratio/ September 30,     June 30,     March 31,     December 31,     September 30,  
Tangible Book Value Per Share 2019     2019     2019     2018     2018  
                             
  (Dollars in thousands, except per share data)                
Stockholders' equity $   4,920,108     $   4,852,010     $   4,790,982     $   4,825,588     $   4,741,685  
Less: Intangible assets   2,591,217       2,596,050       2,600,920       2,605,790       2,610,776  
Tangible common equity $   2,328,891     $   2,255,960     $   2,190,062     $   2,219,798     $   2,130,909  
                             
Total assets $   26,724,627     $   26,344,414     $   26,324,138     $   25,731,354     $   24,782,126  
Less: Intangible assets   2,591,217       2,596,050       2,600,920       2,605,790       2,610,776  
Tangible assets $   24,133,410     $   23,748,364     $   23,723,218     $   23,125,564     $   22,171,350  
                             
Equity to assets ratio 18.41 %   18.42 %   18.20 %   18.75 %   19.13 %
Tangible common equity ratio (1) 9.65 %   9.50 %   9.23 %   9.60 %   9.61 %
                             
Book value per share $   41.06     $   40.49     $   39.86     $   39.17     $   38.46  
Tangible book value per share (2) $   19.43     $   18.83     $   18.22     $   18.02     $   17.28  
Shares outstanding   119,831,192       119,829,104       120,201,149       123,189,833       123,283,450  
                             
(1) Tangible common equity divided by tangible assets.                          
(2) Tangible common equity divided by shares outstanding.                          

 

Contact: Matthew P. Wagner Patrick J. Rusnak
  President and CEO Executive Vice President and CFO
Phone: 310-887-8520 714-989-4705

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