PacWest Bancorp Announces Estimated Net Operating Earnings for the Second Quarter of 2008 and Declaration of Cash Dividend
08 Juli 2008 - 4:00PM
PR Newswire (US)
- Estimated Net Operating Earnings of $12.0 Million to $13.0
Million for the Second Quarter of 2008 - SAN DIEGO, July 8
/PRNewswire-FirstCall/ -- PacWest Bancorp (NASDAQ:PACW) today
announced estimated net operating earnings for the second quarter
of 2008 of between $12.0 million and $13.0 million, or $0.44 and
$0.48 per diluted common share. Net operating earnings do not
include a goodwill write-off of $486.7 million, a legal settlement
of $452,000 (after-tax), and reorganization costs of $150,000
(after-tax). When these items are included, the net loss for the
second quarter of 2008 is expected to range from $475.3 million to
$474.3 million, or $17.50 and $17.46 per diluted common share.
Since the goodwill write-off has no impact on regulatory capital,
the Company and the Bank remain well capitalized at June 30, 2008.
PacWest Bancorp also announced that its Board of Directors has
declared a cash dividend of $0.32 per common share payable on
August 29, 2008, to shareholders of record at the close of business
on August 15, 2008. Matt Wagner, CEO of PacWest Bancorp, stated,
"We expect a strong quarter from a net operating earnings
standpoint of between $12.0 million and $13.0 million. PacWest
Bancorp's performance is a direct result of the Company's solid
core franchise, healthy net interest margin of 5.44% for the
quarter and strong credit culture." Mr. Wagner continued, "We
continue to manage credit aggressively. Almost half of our
nonperforming assets are SBA loans for which we have limited loss
exposure, and the loss potential for nonperforming loans is
incorporated into our allowance for credit losses. The strength of
our net operating earnings coupled with our well-capitalized
regulatory ratios support the continued cash dividend on common
stock." During the second quarter, the remaining balance of
goodwill, totaling $486.7 million, was written off in response to
the continued volatility throughout the banking industry and the
effect such volatility has had on the market prices of banking
stocks, including PacWest Bancorp's. The goodwill write-off had no
effect on the Company's or Pacific Western Bank's cash balances or
liquidity. In addition, because goodwill and other intangible
assets are not included in the calculation of regulatory capital,
the Company's and the Bank's well-capitalized regulatory ratios are
not affected by the non-cash goodwill write-off. Also during the
second quarter the Company settled a litigation matter regarding
insurance coverage on a defaulted loan at an after tax cost of
$452,000 and incurred after tax reorganization costs of $150,000
resulting from the Company's reincorporation in Delaware. At June
30, 2008, nonperforming assets totaled $74.8 million and
represented 1.91% of total loans and other real estate owned.
Nonperforming SBA 504, 7(a) and other guaranteed SBA loans included
in nonperforming assets totaled $35.3 million and represented 47%
of nonperforming assets at quarter end. The allowance for credit
losses totaled $67.4 million at June 30 2008, and represented 1.73%
of total loans. Net chargeoffs and the provision for credit losses
were $4.9 million and $3.5 million during the second quarter. The
Company's portfolio of nonowner-occupied residential construction
loans declined to $259.3 million at June 30, 2008, from $287.5
million at March 31, 2008. PacWest currently expects to release its
actual earnings for the second quarter the week of July 14, 2008.
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. These non-GAAP
financial measures are presented for supplemental informational
purposes only for understanding the Company's operating results and
should not be considered a substitute for financial information
presented in accordance with GAAP. The following table presents a
reconciliation of the non-GAAP financial measurements to the GAAP
financial measurements. Estimated Earnings (Loss) Range Quarter
Ended June 30, 2008 In thousands, except per share data Low High
Estimated net loss $(475,303) $(474,303) Legal settlement, net of
tax 452 452 Reorganization costs, net of tax 150 150 Goodwill
write-off 486,701 486,701 Estimated net operating earnings $12,000
$13,000 GAAP basic shares outstanding 27,166.8 27,166.8 Effect of
restricted stock and dilutive stock options (a) - - GAAP diluted
shares outstanding 27,166.8 27,166.8 Operating earnings basic
shares outstanding 27,166.8 27,166.8 Effect of restricted stock and
dilutive stock options 11.5 11.5 Operating earnings diluted shares
outstanding 27,178.3 27,178.3 GAAP basic and diluted earnings
(loss) per share $(17.50) $(17.46) Net operating diluted earnings
per share $0.44 $0.48 (a) Anti-dilutive for the quarter ended June
30, 2008. ABOUT PACWEST BANCORP PacWest Bancorp, formerly First
Community Bancorp, is a bank holding company with approximately
$4.3 billion in assets as of June 30, 2008, with one wholly-owned
banking subsidiary, Pacific Western Bank. Through 60 full-service
community banking branches, Pacific Western provides commercial
banking services, including real estate, construction and
commercial loans, to small and medium-sized businesses. Pacific
Western's branches are located in Los Angeles, Orange, Riverside,
San Diego and San Bernardino Counties. Through its subsidiary BFI
Business Finance and its divisions First Community Financial and
Pacific Western SBA Lending, Pacific Western also provides working
capital financing to growing companies located throughout the
Southwest, primarily in the states of Arizona, California and
Texas. Additional information regarding PacWest Bancorp is
available on the Internet at http://www.pacwestbancorp.com/.
Information regarding Pacific Western Bank is also available on the
Internet at http://www.pacificwesternbank.com/. FORWARD-LOOKING
STATEMENTS This press release contains certain forward-looking
information about PacWest Bancorp that is intended to be covered by
the safe harbor for "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact are forward-looking
statements. Such statements involve inherent risks and
uncertainties, many of which are difficult to predict and are
generally beyond the control of the Company. We caution readers
that a number of important factors could cause actual results to
differ materially from those estimated in, expressed in, implied or
projected by, such forward-looking statements. Risks and
uncertainties include, but are not limited to: lower than expected
revenues; credit quality deterioration which could cause an
increase in the allowance for credit losses and a reduction in net
earnings; increased competitive pressure among depository
institutions; the Company's ability to complete announced
acquisitions, to successfully integrate acquired entities, or to
achieve expected synergies and operating efficiencies within
expected time-frames or at all; planned acquisitions and related
cost savings cannot be realized or realized within the expected
time frame; the integration of acquired businesses costs more,
takes longer or is less successful than expected; the possibility
that personnel changes will not proceed as planned; the cost of
additional capital is more than expected; a change in the interest
rate environment reduces interest margins; asset/liability
repricing risks and liquidity risks; pending legal matters may take
longer or cost more to resolve or may be resolved adversely to the
Company; general economic conditions, either nationally or in the
market areas in which the Company does or anticipates doing
business, are less favorable than expected; environmental
conditions, including natural disasters, may disrupt our business,
impede our operations, negatively impact the values of collateral
securing the Company's loans or impair the ability of our borrowers
to support their debt obligations; the economic and regulatory
effects of the continuing war on terrorism and other events of war,
including the war in Iraq; legislative or regulatory requirements
or changes adversely affecting the Company's business; changes in
the securities markets; regulatory approvals for any acquisitions
cannot be obtained on the terms expected or on the anticipated
schedule; and, other risks that are described in PacWest's public
filings with the U.S. Securities and Exchange Commission (the
"SEC"). If any of these risks or uncertainties materializes or if
any of the assumptions underlying such forward-looking statements
proves to be incorrect, PacWest's results could differ materially
from those expressed in, implied or projected by such
forward-looking statements. PacWest assumes no obligation to update
such forward-looking statements. For a more complete discussion of
risks and uncertainties, investors and security holders are urged
to read PacWest Bancorp's annual report on Form 10-K, quarterly
reports on Form 10-Q and other reports filed by PacWest with the
SEC. The documents filed by PacWest with the SEC may be obtained at
PacWest Bancorp's website at http://www.pacwestbancorp.com/ or at
the SEC's website at http://www.sec.gov/. These documents may also
be obtained free of charge from PacWest by directing a request to:
PacWest Bancorp c/o Pacific Western Bank, 275 North Brea Boulevard,
Brea, CA 92821. Attention: Investor Relations. Telephone
714-671-6800. DATASOURCE: PacWest Bancorp CONTACT: Matthew P.
Wagner, Chief Executive Officer, +1-310-728-1020, or Victor R.
Santoro, Executive Vice President and Chief Financial Officer,
+1-310-728-1021, both of PacWest Bancorp, Fax, +1-310-201-0498 Web
site: http://www.pacwestbancorp.com/
http://www.pacificwesternbank.com/
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