PacWest Bancorp (Nasdaq:PACW) today announced that on January 3,
2012, its subsidiary, Pacific Western Bank, completed the
acquisition of Marquette Equipment Finance, or MEF, a specialty
equipment leasing company located in Midvale, Utah. MEF focuses on
business-essential equipment leases throughout the United States
with transactions primarily in the mid-ticket segment.
Pacific Western acquired all of the capital stock of MEF from
Meridian Bank, N.A. for $35 million in cash. MEF's tangible net
assets at December 31, 2011 were approximately $18 million.
At December 31, 2011, MEF had approximately $166 million in
gross leases outstanding, with no leases on nonaccrual status.
MEF's leases are spread across 18 industries, with the top three
being financial services/insurance, manufacturing, and health care
and representing 68% of the lease portfolio balance. The
weighted average yield on the lease portfolio at year end was
approximately 9% and its weighted average remaining maturity was 34
months. In addition, Pacific Western Bank assumed $154 million
in outstanding debt and other liabilities.
Matt Wagner, Chief Executive Officer of PacWest Bancorp,
commented, "Marquette Equipment Finance is a terrific fit for
Pacific Western Bank. Its conservative approach to credit and
the strength of the management team have made Marquette Equipment
Finance into a solid performing equipment leasing
company. MEF's leasing platform provides a valuable additional
growth channel for us and enhances both the categorical and
geographical diversification of our loan portfolio. We look
forward to adding their expertise to our organization and giving
them the opportunity to grow further."
Vic Santoro, Executive Vice President and Chief Financial
Officer of PacWest Bancorp, stated, "The acquisition of MEF
augments our commercial loan assets, deploys excess liquidity into
higher yielding assets and will have a positive effect on our net
interest margin. We expect that we will enhance MEF's overall
profitability through the use of our low-cost funding base."
Jim Christensen, President of Marquette Equipment Finance, said,
"MEF is thrilled to be part of the PacWest organization. The
MEF employees look forward to making a meaningful contribution to
the combined organization going forward."
MEF will continue operating under the name Marquette Equipment
Finance as a subsidiary of Pacific Western Bank on a temporary
basis. Pacific Western has committed to change MEF's name
within one year. MEF will maintain its focus on equipment
finance. Pacific Western has retained all 71 MEF
employees. MEF's president, Jim Christensen, and its executive
vice president and chief financial officer, Christian Emery, will
continue in those responsibilities with MEF.
PacWest currently operates two commercial finance companies as a
result of the acquisitions of BFI Business Finance, an asset-based
lender located in San Jose, CA, in 2007 and First Community
Financial Corp., an asset-based lender and factoring company
located in Phoenix, Arizona, in 2004.
Milestone Advisors represented Meridian Bank and Marquette
Equipment Finance in the transaction.
ABOUT PACWEST BANCORP AND PACIFIC WESTERN
BANK
PacWest Bancorp ("PacWest") is a bank holding company with $5.5
billion in assets as of September 30, 2011, with one
wholly-owned banking subsidiary, Pacific Western Bank ("Pacific
Western"). Through 76 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
throughout California in Los Angeles, Orange, Riverside, San
Bernardino, Santa Barbara, San Diego, San Francisco, San Luis
Obispo, San Mateo and Ventura Counties. Through its
subsidiaries BFI Business Finance and Marquette Equipment Finance,
and its division First Community Financial, Pacific Western also
provides working capital financing and equipment leasing to growing
companies located throughout the Southwest, primarily in Arizona,
California, Utah and Texas. Additional information regarding
PacWest Bancorp is available on the Internet at
www.pacwestbancorp.com. Information regarding Pacific Western
Bank is also available on the Internet at
www.pacificwesternbank.com.
FORWARD-LOOKING STATEMENTS
This press release 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. 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
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 or a
reduction in real estate values 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 future acquisitions, successfully
integrate such acquired entities, or achieve expected beneficial
synergies and/or operating efficiencies within expected time-frames
or at all; settlements with the FDIC related to our loss-sharing
arrangement and other adjustments related to the Los Padres Bank
and Affinity Bank acquisitions; 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 net 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 conflicts
in the Middle East; legislative or regulatory requirements or
changes adversely affecting the Company's business; changes in the
securities markets; regulatory approvals for any capital activities
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 www.pacwestbancorp.com or
at the SEC's website at 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.
CONTACT: Vic Santoro, Executive Vice President and CFO
(310) 728-1021
Jared Wolff, Executive Vice President
(310) 728-1023
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