Highlights
PacWest Bancorp (Nasdaq:PACW) today announced net
earnings for the first quarter of 2016 of $90.5 million, or $0.74
per diluted share, compared to net earnings for the fourth quarter
of 2015 of $71.8 million, or $0.60 per diluted share. The $0.14
increase in diluted earnings per share was due mostly to higher
accretion on acquired loans and leases ($0.06 per share), higher
noninterest income from higher gain on securities and lower
dividends and gains on equity investments ($0.02 per share), and
lower acquisition, integration and reorganization costs ($0.09 per
share), and a higher provision for credit losses ($0.03 per share)
as compared to the fourth quarter of 2015.
Matt Wagner, President and CEO, commented, “We continued to
deliver outstanding performance in the first quarter and
demonstrate our earning power despite competitive and market
challenges. Our strong first quarter results produced a return on
assets of 1.72%, a return on tangible equity of 16.45% and a
quarter over quarter 23% increase in diluted earnings per share. We
are also pleased with the continued transformation of our deposit
portfolio as core deposits were 71% of total deposits compared to
52% a year ago. With flat net loan growth for the first quarter due
to the sale of Pacific Western Equipment Finance unit leases, we
expect mid to upper single digit loan growth for the year.”
Patrick Rusnak, Executive Vice President and CFO stated, “Our
first quarter core tax equivalent net interest margin (NIM)
remained steady at 5.10% and the NIM excluding all purchase
accounting items increased 5 basis points to 4.93%. The first
quarter NIM was helped by the combination of the 25 basis point
rate hike in December and higher-yielding assets were a higher
percentage of average interest-earning assets.”
Mr. Rusnak continued, “We continue to control operating expenses
as shown by our efficiency ratio, which declined to 38.5% in the
first quarter. We are pleased with our solid start to 2016 and
believe our talented teams will continue to deliver strong
results.”
Mr. Wagner continued, “Now that we have completed the
integration of the Square 1 Bank employees and business units, we
are focused on two important corporate initiatives for 2016. We
will be converting our core processing systems beginning in the
second quarter. Also, later this year, we will submit our first
DFAST capital stress test to our regulators.”
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
|
March 31, |
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
|
(Dollars in thousands, except per share
data) |
|
Financial
Highlights: |
|
|
|
|
|
|
Net Earnings |
$ |
90,456 |
|
|
$ |
71,841 |
|
|
$ |
18,615 |
|
|
Diluted Earnings Per Share |
$ |
0.74 |
|
|
$ |
0.60 |
|
|
$ |
0.14 |
|
|
Return on Average Assets |
|
1.72 |
% |
|
|
1.37 |
% |
|
|
0.35 |
|
|
Return on Average |
|
|
|
|
|
|
Tangible Equity (1) |
|
16.45 |
% |
|
|
13.14 |
% |
|
|
3.31 |
|
|
|
|
|
|
|
|
|
Net Interest Margin (tax
equivalent) |
|
5.53 |
% |
|
|
5.22 |
% |
|
|
0.31 |
|
|
Core Net Interest Margin (tax
equivalent) (1) |
|
5.10 |
% |
|
|
5.10 |
% |
|
|
- |
|
|
Efficiency Ratio |
|
38.5 |
% |
|
|
39.3 |
% |
|
|
(0.8 |
) |
|
|
|
|
|
|
|
|
Total Assets |
$ |
21,031,009 |
|
|
$ |
21,288,490 |
|
|
$ |
(257,481 |
) |
|
Loans and Leases, Net
of Deferred Fees |
$ |
14,483,517 |
|
|
$ |
14,478,254 |
|
|
$ |
5,263 |
|
|
Total Deposits |
$ |
15,441,375 |
|
|
$ |
15,666,182 |
|
|
$ |
(224,807 |
) |
|
|
|
|
|
|
|
|
Noninterest-Bearing
Deposits as Percentage of Total Deposits |
|
40 |
% |
|
|
39 |
% |
|
|
1 |
|
|
Core Deposits as Percentage of
Total Deposits |
|
71 |
% |
|
|
67 |
% |
|
|
4 |
|
|
Tangible Common Equity Ratio
(1) |
|
11.87 |
% |
|
|
11.38 |
% |
|
|
0.49 |
|
|
Tangible Book Value Per Share
(1) |
$ |
18.33 |
|
|
$ |
17.86 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT HIGHLIGHTS
Net Interest Income
Net interest income increased by $15.4 million to $244.6 million
for the first quarter of 2016 compared to $229.2 million for the
fourth quarter of 2015 due to higher accretion on acquired loans
and a higher average loan and lease balance offset by a lower
average investment securities balance. Total accretion on acquired
loans was $27.9 million in the first quarter of 2016 (77 basis
points on the loan and lease yield) compared to $16.1 million in
the fourth quarter of 2015 (46 basis points on the loan and lease
yield). The increase in accretion was due primarily to higher
accelerated accretion from payoffs on acquired loans, including
$12.1 million from the payoff of a nonaccrual purchased credit
impaired (“PCI”) loan. The loan and lease yield for the first
quarter of 2016 was 6.57% compared to 6.21% for the fourth quarter
of 2015. The increase in the loan and lease yield was due to the
higher accretion on acquired loans offset by the yield on new
originations being lower than the current portfolio yield.
Excluding accelerated accretion, the core loan and lease yield was
6.03% in the first quarter compared to 6.05% in the fourth
quarter.
The tax equivalent net interest margin (“NIM”) for the first
quarter of 2016 was 5.53% compared to 5.22% for the fourth quarter
of 2015. The increase in the NIM was due to higher accretion on
acquired loans and a higher percentage of average higher-yielding
assets in the mix. Accretion on acquired loans contributed 62 basis
points to the NIM in the first quarter of 2016 and 36 basis points
to the NIM in the fourth quarter of 2015. Excluding accelerated
accretion, the core NIM was 5.10% for both the first and fourth
quarters.
The cost of total deposits decreased to 0.23% in the first
quarter of 2016 from 0.24% in the fourth quarter of 2015 due to the
increased average balance of noninterest-bearing deposits and a
lower level of higher-cost time deposits.
The tax equivalent NIM and loan and lease yield are impacted by
volatility in accelerated accretion of acquisition discounts due to
the prepayment of acquired loans and leases. The effects of this
item are shown in the following table for the periods
indicated:
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
March 31, 2016 |
|
December 31, 2015 |
|
|
|
|
Loan and |
|
|
Loan and |
|
|
|
NIM |
Lease Yield |
|
NIM |
Lease Yield |
|
Reported |
|
5.53 |
% |
|
6.57 |
% |
|
|
5.22 |
% |
|
6.21 |
% |
|
Less: |
Accelerated accretion of acquisition discounts from early payoffs
of acquired loans |
|
(0.43 |
)% |
|
(0.54 |
)% |
|
|
(0.12 |
)% |
|
(0.16 |
)% |
|
Core |
|
|
5.10 |
% |
|
6.03 |
% |
|
|
5.10 |
% |
|
6.05 |
% |
|
|
|
|
|
|
|
|
|
The impact on the tax equivalent net interest income and NIM
from all purchase accounting items is set forth in the table below
for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
March 31, 2016 |
|
December 31, 2015 |
|
|
|
|
Impact on |
|
|
Impact on |
|
|
|
Amount |
NIM |
|
Amount |
NIM |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Net
interest income/NIM |
$ |
249,610 |
|
|
5.53 |
% |
|
$ |
233,959 |
|
|
5.22 |
% |
|
|
Less: |
Accelerated accretion of acquisition discounts from early payoffs
of acquired loans |
|
(19,465 |
) |
|
(0.43 |
)% |
|
|
(5,511 |
) |
|
(0.12 |
)% |
|
|
|
Remaining accretion of Non-PCI loan acquisition discounts |
|
(8,403 |
) |
|
(0.19 |
)% |
|
|
(10,553 |
) |
|
(0.24 |
)% |
|
|
|
Total accretion of loan acquisition
discounts |
|
(27,868 |
) |
|
(0.62 |
)% |
|
|
(16,064 |
) |
|
(0.36 |
)% |
|
|
|
Amortization of TruPS discount |
|
1,395 |
|
|
0.03 |
% |
|
|
1,397 |
|
|
0.03 |
% |
|
|
|
Accretion of time deposits premium |
|
(270 |
) |
|
(0.01 |
)% |
|
|
(384 |
) |
|
(0.01 |
)% |
|
|
|
|
|
(26,743 |
) |
|
(0.60 |
)% |
|
|
(15,051 |
) |
|
(0.34 |
)% |
|
|
Net interest income/NIM - excluding purchase accounting |
$ |
222,867 |
|
|
4.93 |
% |
|
$ |
218,908 |
|
|
4.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
Noninterest income increased by $6.5 million to $34.5 million
for the first quarter of 2016 compared to $28.1 million for the
fourth quarter of 2015 due mostly to higher gains on sales of
securities of $8.1 million and lower FDIC loss sharing expense of
$1.9 million, offset by lower dividends and gains on equity
investments of $4.6 million. The gain on securities resulted from
the sale of $335 million of securities in the first quarter due to
ongoing portfolio management activities. The lower FDIC loss
sharing expense is due to a fewer number and decreased balance of
covered assets combined with fewer asset resolutions this quarter
compared to the previous quarter. Dividends and gains from equity
investments decreased as this item fluctuates from period to period
based upon dividends received and number of sales of equity
investments. Other income in the first quarter included a loan
syndication fee ($0.9 million), a death benefit received on a BOLI
policy ($0.6 million) and a loss on the sale of the Pacific Western
Equipment Finance (“PWEF”) leasing unit ($0.7 million); there are
no similar items in the other periods presented.
The following table presents details of noninterest income for
the periods indicated:
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
Increase |
|
Noninterest Income |
|
2016 |
|
|
|
2015 |
|
|
(Decrease) |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
$ |
3,856 |
|
|
$ |
3,901 |
|
|
$ |
(45 |
) |
|
Other
commissions and fees |
|
11,489 |
|
|
|
12,691 |
|
|
|
(1,202 |
) |
|
Leased
equipment income |
|
8,244 |
|
|
|
7,791 |
|
|
|
453 |
|
|
Gain on
sale of loans and leases |
|
245 |
|
|
|
183 |
|
|
|
62 |
|
|
Gain on
securities |
|
8,110 |
|
|
|
- |
|
|
|
8,110 |
|
|
FDIC
loss sharing expense, net |
|
(2,415 |
) |
|
|
(4,291 |
) |
|
|
1,876 |
|
|
Other
income: |
|
|
|
|
|
|
Dividends and realized gains on
equity investments |
|
246 |
|
|
|
4,886 |
|
|
|
(4,640 |
) |
|
Foreign currency translation net
gains (losses) |
|
606 |
|
|
|
(661 |
) |
|
|
1,267 |
|
|
Income recognized on early
repayment of leases |
|
922 |
|
|
|
802 |
|
|
|
120 |
|
|
Other |
|
3,236 |
|
|
|
2,756 |
|
|
|
480 |
|
|
Total noninterest income |
$ |
34,539 |
|
|
$ |
28,058 |
|
|
$ |
6,481 |
|
|
|
|
|
|
|
|
|
Noninterest Expense
Noninterest expense decreased by $11.6 million to $110.7 million
for the first quarter of 2016 compared to $122.3 million for the
fourth quarter of 2015. The decrease was due mostly to lower
acquisition, integration and reorganization costs of $17.4 million
offset by lower foreclosed assets income and higher compensation
expense. Foreclosed assets income is lower by $2.6 million due to
lower gains on foreclosed asset sales compared to the prior
quarter. Compensation expense increased $2.1 million due to higher
payroll taxes from the timing of the annual employment tax cycle
and higher stock-based compensation due to awards granted in the
first quarter offset partially by lower commission and incentive
expense.
The following table presents details of noninterest expense for
the periods indicated:
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
Increase |
|
Noninterest Expense |
|
2016 |
|
|
|
2015 |
|
|
(Decrease) |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
Compensation |
$ |
61,065 |
|
|
$ |
58,992 |
|
|
$ |
2,073 |
|
|
Occupancy |
|
12,632 |
|
|
|
12,194 |
|
|
|
438 |
|
|
Data
processing |
|
5,904 |
|
|
|
5,585 |
|
|
|
319 |
|
|
Other
professional services |
|
3,572 |
|
|
|
3,811 |
|
|
|
(239 |
) |
|
Insurance and assessments |
|
4,965 |
|
|
|
5,450 |
|
|
|
(485 |
) |
|
Intangible asset amortization |
|
4,746 |
|
|
|
4,910 |
|
|
|
(164 |
) |
|
Leased
equipment depreciation |
|
5,024 |
|
|
|
4,235 |
|
|
|
789 |
|
|
Foreclosed assets (income) expense, net |
|
(561 |
) |
|
|
(3,185 |
) |
|
|
2,624 |
|
|
Acquisition, integration and reorganization costs |
|
200 |
|
|
|
17,600 |
|
|
|
(17,400 |
) |
|
Other
expense: |
|
|
|
|
|
|
Loan expense |
|
2,155 |
|
|
|
2,745 |
|
|
|
(590 |
) |
|
Other |
|
10,986 |
|
|
|
9,927 |
|
|
|
1,059 |
|
|
Total noninterest expense |
$ |
110,688 |
|
|
$ |
122,264 |
|
|
$ |
(11,576 |
) |
|
|
|
|
|
|
|
|
Income Taxes
Our overall effective income tax rate was 39.0% in the first
quarter of 2016 and 40.7% for the fourth quarter of 2015. The first
quarter effective tax rate approximates the expected effective tax
rate for calendar year 2016.
BALANCE SHEET HIGHLIGHTS
Loans and Leases
Average total loans and leases for the first quarter of 2016
increased by $440 million compared to the fourth quarter while
period-end total loans and leases increased by $5.3 million in the
first quarter to $14.5 billion at March 31, 2016. The loan and
lease production of $842 million was largely offset by repayment
activity and the sale of the PWEF leases.
The following table presents a roll forward of the loan and
lease portfolio for the periods indicated:
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
Loan and Lease
Roll Forward (1) |
|
2016 |
|
|
|
2015 |
|
|
|
(In thousands) |
|
|
|
|
|
Beginning balance |
$ |
14,478,254 |
|
|
$ |
12,452,205 |
|
|
New production |
|
842,064 |
|
|
|
1,403,611 |
|
|
Existing loans and
leases: |
|
|
|
|
Principal repayments, net (2) |
|
(665,281 |
) |
|
|
(910,445 |
) |
|
Loan and lease sales (3) |
|
(26,657 |
) |
|
|
(19,610 |
) |
|
Transfers to foreclosed assets |
|
(129 |
) |
|
|
- |
|
|
Charge-offs |
|
(5,536 |
) |
|
|
(1,227 |
) |
|
Sale of PWEF |
|
(139,198 |
) |
|
|
- |
|
|
Loans acquired through
Square 1 acquisition |
|
- |
|
|
|
1,553,720 |
|
|
Ending balance |
$ |
14,483,517 |
|
|
$ |
14,478,254 |
|
|
|
|
|
|
|
Weighted average yields
on new production |
|
5.29 |
% |
|
|
5.29 |
% |
|
|
|
|
|
|
(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), loan
participation sales and other changes within the loan
portfolio. |
|
(3)
Includes $15.1 million of PWEF leases sold to third parties during
the three months ended March 31, 2016. |
|
|
|
|
|
|
The following table presents the composition of our loan and
lease portfolio as of the dates indicated:
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Loan and Lease
Portfolio |
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(In thousands) |
|
Real estate
mortgage: |
|
|
|
|
|
|
Commercial |
$ |
4,640,419 |
|
|
$ |
4,642,088 |
|
|
$ |
4,851,038 |
|
|
Residential |
|
1,149,998 |
|
|
|
1,211,209 |
|
|
|
959,364 |
|
|
Total real estate mortgage |
|
5,790,417 |
|
|
|
5,853,297 |
|
|
|
5,810,402 |
|
|
Real estate
construction and land: |
|
|
|
|
|
|
Commercial |
|
308,192 |
|
|
|
349,436 |
|
|
|
212,738 |
|
|
Residential |
|
269,965 |
|
|
|
184,382 |
|
|
|
122,338 |
|
|
Total real estate construction and
land |
|
578,157 |
|
|
|
533,818 |
|
|
|
335,076 |
|
|
Total real estate loans |
|
6,368,574 |
|
|
|
6,387,115 |
|
|
|
6,145,478 |
|
|
Commercial: |
|
|
|
|
|
|
Cash flow |
|
3,173,424 |
|
|
|
3,073,965 |
|
|
|
3,004,304 |
|
|
Asset-based |
|
2,589,598 |
|
|
|
2,547,665 |
|
|
|
2,114,411 |
|
|
Venture capital |
|
1,507,788 |
|
|
|
1,458,013 |
|
|
|
- |
|
|
Equipment finance |
|
733,228 |
|
|
|
890,349 |
|
|
|
914,015 |
|
|
Total commercial |
|
8,004,038 |
|
|
|
7,969,992 |
|
|
|
6,032,730 |
|
|
Consumer |
|
110,905 |
|
|
|
121,147 |
|
|
|
93,958 |
|
|
Total loans and leases, net
of deferred fees |
$ |
14,483,517 |
|
|
$ |
14,478,254 |
|
|
$ |
12,272,166 |
|
|
|
|
|
|
|
|
|
Total unfunded loan
commitments |
$ |
3,812,554 |
|
|
$ |
3,580,655 |
|
|
$ |
2,122,748 |
|
|
|
|
|
|
|
|
|
Loan growth in the first quarter came primarily from the cash
flow, construction and venture capital portfolios. These same
portfolios also accounted for most of the growth in our unfunded
commitments during the quarter.
Credit Exposure Affected by Low Oil Prices
At March 31, 2016, PacWest had 19 outstanding loan and lease
relationships totaling $127.7 million to borrowers involved in the
oil and gas services industry, down from $137.3 million at December
31, 2015. The collateral for this credit exposure includes
primarily equipment, such as drilling equipment and transportation
vehicles. The reserves related to this credit exposure total
approximately 15%. At March 31, 2016, three relationships totaling
$45.5 million were on nonaccrual status and were classified, down
from $47.1 million at December 31, 2015. The largest of these
relationships had an aggregate outstanding balance of $39.9 million
at March 31, 2016.
Deposits and Client Investment Funds
The following table presents the composition of our deposit
portfolio as of the dates indicated:
|
March 31, |
|
December 31, |
|
March 31, |
|
Deposit
Category |
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits |
$ |
6,139,963 |
|
|
$ |
6,171,455 |
|
|
$ |
3,029,463 |
|
|
Interest checking
deposits |
|
921,189 |
|
|
|
874,349 |
|
|
|
739,073 |
|
|
Money market
deposits |
|
3,144,843 |
|
|
|
2,782,974 |
|
|
|
1,682,123 |
|
|
Savings deposits |
|
764,323 |
|
|
|
742,795 |
|
|
|
746,741 |
|
|
Total core deposits |
|
10,970,318 |
|
|
|
10,571,573 |
|
|
|
6,197,400 |
|
|
Brokered non-maturity
deposits |
|
985,784 |
|
|
|
942,253 |
|
|
|
155,976 |
|
|
Total non-maturity deposits |
|
11,956,102 |
|
|
|
11,513,826 |
|
|
|
6,353,376 |
|
|
Time deposits under
$100,000 |
|
1,357,598 |
|
|
|
1,656,227 |
|
|
|
2,562,078 |
|
|
Time deposits of
$100,000 and over |
|
2,127,675 |
|
|
|
2,496,129 |
|
|
|
3,018,721 |
|
|
Total time deposits |
|
3,485,273 |
|
|
|
4,152,356 |
|
|
|
5,580,799 |
|
|
Total deposits |
$ |
15,441,375 |
|
|
$ |
15,666,182 |
|
|
$ |
11,934,175 |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits as percentage of total
deposits |
|
40 |
% |
|
|
39 |
% |
|
|
26 |
% |
|
Core
deposits as percentage of total deposits |
|
71 |
% |
|
|
67 |
% |
|
|
52 |
% |
|
|
|
|
|
|
|
|
At March 31, 2016, core deposits totaled $11.0 billion, or 71%
of total deposits, including $6.1 billion of noninterest-bearing
demand deposits, or 40% of total deposits.
In addition to deposit products, we also offer alternative
non-depository cash investment options for select clients,
including investments managed by Square 1 Asset Management, Inc.
(“S1AM”) our registered investment advisor subsidiary and
third-party sweep products. Total client investment funds at March
31, 2016 were $1.6 billion, of which $1.3 billion was managed by
S1AM. Approximately $184 million of client investment funds were
shifted into on-balance sheet deposit products during the first
quarter of 2016.
PROVISION AND ALLOWANCE FOR CREDIT LOSSES
A provision for credit losses of $20.1 million was recorded in
the first quarter of 2016 compared to $13.8 million in the fourth
quarter of 2015. The first quarter provision related almost
entirely to Non-PCI loans and leases and increased due in part to
additions to our oil and gas portfolio reserves. The allowance for
Non-PCI credit losses to Non-PCI loans and leases coverage ratio
increased to 0.96% at March 31, 2016 from 0.85% at December 31,
2015.
The following tables show roll forwards of the allowance for
credit losses for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2016 |
|
Non-PCI |
|
|
|
|
|
|
|
|
Allowance for
Credit |
Loans and |
|
Unfunded |
|
Total |
|
PCI |
|
|
Losses
Rollforward |
Leases |
|
Commitments |
|
Non-PCI |
|
Loans |
|
Total |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
105,534 |
|
|
$ |
16,734 |
|
|
$ |
122,268 |
|
|
$ |
9,577 |
|
|
$ |
131,845 |
|
Charge-offs |
|
(5,373 |
) |
|
|
- |
|
|
|
(5,373 |
) |
|
|
(163 |
) |
|
|
(5,536 |
) |
Recoveries |
|
1,481 |
|
|
|
- |
|
|
|
1,481 |
|
|
|
- |
|
|
|
1,481 |
|
Net charge-offs |
|
(3,892 |
) |
|
|
- |
|
|
|
(3,892 |
) |
|
|
(163 |
) |
|
|
(4,055 |
) |
Provision |
|
19,165 |
|
|
|
835 |
|
|
|
20,000 |
|
|
|
140 |
|
|
|
20,140 |
|
Ending balance |
$ |
120,807 |
|
|
$ |
17,569 |
|
|
$ |
138,376 |
|
|
$ |
9,554 |
|
|
$ |
147,930 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2015 |
|
Non-PCI |
|
|
|
|
|
|
|
|
Allowance for
Credit |
Loans and |
|
Unfunded |
|
Total |
|
PCI |
|
|
Losses
Rollforward |
Leases |
|
Commitments |
|
Non-PCI |
|
Loans |
|
Total |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
92,316 |
|
|
$ |
8,374 |
|
|
$ |
100,690 |
|
|
$ |
10,955 |
|
|
$ |
111,645 |
|
Fair value of acquired reserve for
unfunded commitments |
|
- |
|
|
|
4,746 |
|
|
|
4,746 |
|
|
|
- |
|
|
|
4,746 |
|
Charge-offs |
|
(1,153 |
) |
|
|
- |
|
|
|
(1,153 |
) |
|
|
(74 |
) |
|
|
(1,227 |
) |
Recoveries |
|
2,871 |
|
|
|
- |
|
|
|
2,871 |
|
|
|
38 |
|
|
|
2,909 |
|
Net recoveries |
|
1,718 |
|
|
|
- |
|
|
|
1,718 |
|
|
|
(36 |
) |
|
|
1,682 |
|
Provision (negative provision) |
|
11,500 |
|
|
|
3,614 |
|
|
|
15,114 |
|
|
|
(1,342 |
) |
|
|
13,772 |
|
Ending balance |
$ |
105,534 |
|
|
$ |
16,734 |
|
|
$ |
122,268 |
|
|
$ |
9,577 |
|
|
$ |
131,845 |
|
|
|
|
|
|
|
|
|
|
|
All acquired loans are recorded initially at their estimated
fair value including an estimate of credit losses. The table below
presents two alternative views of credit risk coverage ratios for
Non-PCI loans reflecting adjustments for acquired loans and
associated purchase accounting discounts:
|
|
|
|
|
|
|
|
|
|
March 31, 2016 |
|
December 31, 2015 |
|
|
Non-PCI |
|
|
|
Non-PCI |
|
|
|
|
Loans and |
Allowance/ |
Coverage |
|
Loans and |
Allowance/ |
Coverage |
|
Credit Risk
Coverage Ratios |
Leases |
Discount |
Ratio |
|
Leases |
Discount |
Ratio |
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
Ending balance |
$ |
14,365,915 |
|
$ |
138,376 |
|
|
0.96 |
% |
|
$ |
14,339,070 |
|
$ |
122,268 |
|
|
0.85 |
% |
|
Acquired loans |
|
(5,468,875 |
) |
|
(34,231 |
) |
(1 |
) |
|
|
|
|
|
(6,030,921 |
) |
|
(19,127 |
) |
(1 |
) |
|
|
|
|
Adjusted balance |
$ |
8,897,040 |
|
$ |
104,145 |
|
|
1.17 |
% |
|
$ |
8,308,149 |
|
$ |
103,141 |
|
|
1.24 |
% |
|
|
|
|
|
|
|
|
|
|
Ending balance |
$ |
14,365,915 |
|
$ |
138,376 |
|
|
0.96 |
% |
|
$ |
14,339,070 |
|
$ |
122,268 |
|
|
0.85 |
% |
|
Unamortized net
discount |
|
78,761 |
|
|
78,761 |
|
(2 |
) |
|
|
|
|
|
92,192 |
|
|
92,192 |
|
(2 |
) |
|
|
|
|
Adjusted balance |
$ |
14,444,676 |
|
$ |
217,137 |
|
|
1.50 |
% |
|
$ |
14,431,262 |
|
$ |
214,460 |
|
|
1.49 |
% |
|
|
|
|
|
|
|
|
|
|
(1)
Allowance attributed to $5.5 billion and $6.0 billion of acquired
Non-PCI loans at March 31, 2016 and December 31, 2015, 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 $5.5 billion and $6.0 billion
of acquired Non-PCI loans at March 31, 2016 and December 31,
2015, and is assigned specifically to those loans only. Such
discount represents the acquisition date fair value adjustment
based on market, liquidity, interest rate risk and credit risk and
is being accreted to interest income over the remaining life
of the respective loans using the interest method. Use of the
interest method results in steadily declining amounts being
taken into income in each reporting period. The remaining
discount of $78.8 million at March 31, 2016, is expected to be
substantially accreted to income by the end of 2018. |
|
|
|
|
Non-PCI loans and leases at March 31, 2016 included $8.9 billion
of originated loans and leases that were not obtained through
acquisitions. The related allowance for loan and lease losses
totaled $90.5 million, or 1.02% of the outstanding balance.
CREDIT QUALITY
The following table presents Non-PCI loan and lease credit
quality metrics as of the dates indicated:
|
|
|
|
|
|
March 31, |
|
December 31, |
|
Non-PCI Credit
Quality Metrics |
|
2016 |
|
|
|
2015 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
Nonaccrual loans and
leases (1) |
$ |
130,418 |
|
|
$ |
129,019 |
|
|
Classified loans and
leases |
|
384,698 |
|
|
|
391,754 |
|
|
Performing restructured
loans |
|
66,829 |
|
|
|
40,182 |
|
|
Allowance for credit
losses |
|
138,376 |
|
|
|
122,268 |
|
|
Net charge-offs
(recoveries) (for the quarter) |
|
3,892 |
|
|
|
(1,718 |
) |
|
Provision for credit
losses (for the quarter) |
|
20,000 |
|
|
|
15,114 |
|
|
Allowance for credit
losses to loans and leases |
|
0.96 |
% |
|
|
0.85 |
% |
|
Allowance for credit losses to nonaccrual loans and leases
(1) |
|
106.1 |
% |
|
|
94.8 |
% |
|
Nonaccrual loans and
leases to loans and leases |
|
0.91 |
% |
|
|
0.90 |
% |
|
Nonperforming assets to loans and leases and foreclosed
assets |
|
1.05 |
% |
|
|
1.06 |
% |
|
Classified loans and
leases to loans and leases |
|
2.68 |
% |
|
|
2.73 |
% |
|
|
|
|
|
|
(1) The March 31, 2016 and December
31, 2015 amounts include $16.2 million and $85.2 million of
acquired loans and leases with no allowance due to the effects of
fair value accounting. |
|
|
|
The following table presents Non-PCI nonaccrual loans and leases
and accruing loans and leases past due between 30 and 89 days by
portfolio segment and class as of the dates indicated:
|
Non-PCI Nonaccrual Loans and
Leases |
|
Non-PCI Accruing and |
|
|
March 31, 2016 |
|
December 31, 2015 |
|
30-89 Days Past Due |
|
|
|
% of |
|
|
% of |
|
March 31, |
|
December 31, |
|
|
|
Loan |
|
|
Loan |
|
|
2016 |
|
|
|
2015 |
|
|
|
Amount |
Category |
|
Amount |
Category |
|
Amount |
|
Amount |
|
|
(Dollars in thousands) |
|
Real estate
mortgage: |
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
30,357 |
|
|
0.7 |
% |
|
$ |
52,363 |
|
|
1.2 |
% |
|
$ |
4,968 |
|
|
$ |
1,498 |
|
|
Residential |
|
5,807 |
|
|
0.5 |
% |
|
|
4,914 |
|
|
0.4 |
% |
|
|
730 |
|
|
|
3,174 |
|
|
Total real estate mortgage |
|
36,164 |
|
|
0.6 |
% |
|
|
57,277 |
|
|
1.0 |
% |
|
|
5,698 |
|
|
|
4,672 |
|
|
Real estate
construction and land: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Residential |
|
370 |
|
|
0.1 |
% |
|
|
372 |
|
|
0.2 |
% |
|
|
- |
|
|
|
- |
|
|
Total real estate construction
and land |
|
370 |
|
|
0.1 |
% |
|
|
372 |
|
|
0.1 |
% |
|
|
- |
|
|
|
- |
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Cash flow |
|
39,665 |
|
|
1.3 |
% |
|
|
15,800 |
|
|
0.5 |
% |
|
|
639 |
|
|
|
1,118 |
|
|
Asset-based |
|
2,046 |
|
|
0.1 |
% |
|
|
2,505 |
|
|
0.1 |
% |
|
|
- |
|
|
|
1 |
|
|
Venture capital |
|
- |
|
|
- |
|
|
|
124 |
|
|
- |
|
|
|
9,554 |
|
|
|
250 |
|
|
Equipment finance (1) |
|
51,247 |
|
|
7.0 |
% |
|
|
51,410 |
|
|
5.8 |
% |
|
|
1,870 |
|
|
|
360 |
|
|
Total commercial |
|
92,958 |
|
|
1.2 |
% |
|
|
69,839 |
|
|
0.9 |
% |
|
|
2,063 |
|
|
|
1,729 |
|
|
Consumer |
|
926 |
|
|
0.8 |
% |
|
|
1,531 |
|
|
1.3 |
% |
|
|
30 |
|
|
|
628 |
|
|
Total Non-PCI loans and
leases |
$ |
130,418 |
|
|
0.9 |
% |
|
$ |
129,019 |
|
|
0.9 |
% |
|
$ |
17,791 |
|
|
$ |
7,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes nonaccrual leases and loans to companies
involved in the oil and gas industries of $45.5 million and $47.1
million at March 31, 2016 and December 31, 2015,
respectively. |
|
|
|
|
|
|
|
|
|
|
The following table presents nonperforming assets as of the
dates indicated:
|
|
|
|
|
|
March 31, |
|
December 31, |
|
Nonperforming
Assets |
|
2016 |
|
|
|
2015 |
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
Nonaccrual Non-PCI
loans and leases |
$ |
130,418 |
|
|
$ |
129,019 |
|
|
Nonaccrual PCI Loans
(1) |
|
3,241 |
|
|
|
4,596 |
|
|
Total nonaccrual loans and
leases |
|
133,659 |
|
|
|
133,615 |
|
|
Non-PCI
accruing loan contractually past due 90 days or more |
|
2,538 |
|
|
|
700 |
|
|
Foreclosed assets,
net |
|
18,310 |
|
|
|
22,120 |
|
|
Total nonperforming assets |
$ |
154,507 |
|
|
$ |
156,435 |
|
|
|
|
|
|
|
Nonaccrual loans and
leases to loans and leases |
|
0.92 |
% |
|
|
0.92 |
% |
|
Nonperforming assets to
loans and leases and foreclosed assets |
|
1.06 |
% |
|
|
1.08 |
% |
|
|
|
|
|
|
(1)
Represents legacy CapitalSource borrowing relationships placed on
nonaccrual status as of the acquisition date. |
|
|
|
|
|
|
ABOUT PACWEST BANCORP
PacWest Bancorp (“PacWest”) is a bank holding company with $21
billion in assets with one wholly-owned banking subsidiary, Pacific
Western Bank (“Pacific Western”). The Bank has 80 full-service
branches located throughout the state of California and one branch
in Durham, North Carolina. Pacific Western provides commercial
banking services, including real estate, construction, and
commercial loans, and comprehensive deposit and treasury management
services to small and medium-sized businesses. Pacific
Western offers additional products and services under the brands of
its business groups, CapitalSource and Square 1 Bank. CapitalSource
provides cash flow, asset-based, equipment and real estate loans
and treasury management services to established middle market
businesses on a national basis. Square 1 Bank offers a
comprehensive suite of financial services focused on
entrepreneurial businesses and their venture capital and private
equity investors, with offices located in key innovation hubs
across the United States. For more information about PacWest
Bancorp, visit www.pacwestbancorp.com, or to learn more about
Pacific Western Bank, visit www.pacificwesternbank.com.
FORWARD LOOKING STATEMENTS
This release contains certain “forward-looking statements” about
the Company and its subsidiaries within the meaning of the Private
Securities Litigation Reform Act of 1995, including certain plans,
strategies, goals, and projections and including statements about
our expectations regarding our loan and lease portfolio growth,
profitability, and effective tax rates. 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;
- credit quality deterioration or pronounced and sustained
reduction in market values or other economic factors which
adversely affect our borrowers’ ability to repay loans and
leases;
- higher than anticipated delinquencies, charge-offs, and loan
losses;
- compression of spreads on newly originated loans and
leases;
- the impact of asset/liability repricing risk and liquidity risk
on net interest margin and the value of investments;
- higher than anticipated increases in operating expenses;
- increased costs to manage and sell foreclosed assets;
- reduced demand for our services due to strategic or regulatory
reasons;
- our inability to grow deposits or access wholesale funding
sources;
- legislative or regulatory requirements or changes could
negatively impact our business including an increase to capital
requirements;
- loan repayments higher than expected;
- changes in tax laws or regulations affecting our business;
- our inability to generate sufficient earnings;
- tax planning or disallowance of tax benefits by tax
authorities;
- changes in tax filing jurisdictions or entity classifications;
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 |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands, except per share
data) |
|
ASSETS: |
|
|
|
|
|
|
Cash and due from
banks |
$ |
161,977 |
|
|
$ |
161,020 |
|
|
$ |
140,873 |
|
|
Interest-earning
deposits in financial institutions |
|
357,541 |
|
|
|
235,466 |
|
|
|
250,981 |
|
|
Total cash and cash
equivalents |
|
519,518 |
|
|
|
396,486 |
|
|
|
391,854 |
|
|
|
|
|
|
|
|
|
Securities
available-for-sale, at estimated fair value |
|
3,240,586 |
|
|
|
3,559,437 |
|
|
|
1,595,409 |
|
|
Federal Home Loan Bank
stock, at cost |
|
17,250 |
|
|
|
19,710 |
|
|
|
28,905 |
|
|
Total investment
securities |
|
3,257,836 |
|
|
|
3,579,147 |
|
|
|
1,624,314 |
|
|
|
|
|
|
|
|
|
Non-PCI loans and
leases |
|
14,365,915 |
|
|
|
14,339,070 |
|
|
|
12,047,946 |
|
|
PCI loans |
|
176,607 |
|
|
|
189,095 |
|
|
|
254,346 |
|
|
Total gross loans and leases |
|
14,542,522 |
|
|
|
14,528,165 |
|
|
|
12,302,292 |
|
|
Deferred fees and
costs |
|
(59,005 |
) |
|
|
(49,911 |
) |
|
|
(30,126 |
) |
|
Total loans and leases, net of
deferred fees |
|
14,483,517 |
|
|
|
14,478,254 |
|
|
|
12,272,166 |
|
|
Allowance for loan and
lease losses |
|
(130,361 |
) |
|
|
(115,111 |
) |
|
|
(92,378 |
) |
|
Total loans and leases,
net |
|
14,353,156 |
|
|
|
14,363,143 |
|
|
|
12,179,788 |
|
|
|
|
|
|
|
|
|
Equipment leased to
others under operating leases |
|
205,163 |
|
|
|
197,452 |
|
|
|
119,959 |
|
|
Premises and equipment,
net |
|
39,713 |
|
|
|
39,197 |
|
|
|
36,022 |
|
|
Foreclosed assets,
net |
|
18,310 |
|
|
|
22,120 |
|
|
|
35,940 |
|
|
Deferred tax asset,
net |
|
91,126 |
|
|
|
126,389 |
|
|
|
236,065 |
|
|
Goodwill |
|
2,175,791 |
|
|
|
2,176,291 |
|
|
|
1,728,380 |
|
|
Core
deposit and customer relationship intangibles, net |
|
48,137 |
|
|
|
53,220 |
|
|
|
15,703 |
|
|
Other assets |
|
322,259 |
|
|
|
335,045 |
|
|
|
275,915 |
|
|
Total assets |
$ |
21,031,009 |
|
|
$ |
21,288,490 |
|
|
$ |
16,643,940 |
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
6,139,963 |
|
|
$ |
6,171,455 |
|
|
$ |
3,029,463 |
|
|
Interest-bearing
deposits |
|
9,301,412 |
|
|
|
9,494,727 |
|
|
|
8,904,712 |
|
|
Total
deposits |
|
15,441,375 |
|
|
|
15,666,182 |
|
|
|
11,934,175 |
|
|
Borrowings |
|
551,401 |
|
|
|
621,914 |
|
|
|
618,156 |
|
|
Subordinated
debentures |
|
438,723 |
|
|
|
436,000 |
|
|
|
431,448 |
|
|
Accrued interest
payable and other liabilities |
|
142,918 |
|
|
|
166,703 |
|
|
|
126,800 |
|
|
Total
liabilities |
|
16,574,417 |
|
|
|
16,890,799 |
|
|
|
13,110,579 |
|
|
STOCKHOLDERS'
EQUITY (1) |
|
4,456,592 |
|
|
|
4,397,691 |
|
|
|
3,533,361 |
|
|
Total liabilities and
stockholders’ equity |
$ |
21,031,009 |
|
|
$ |
21,288,490 |
|
|
$ |
16,643,940 |
|
|
|
|
|
|
|
|
|
(1)
Includes net unrealized gain on securities available-for-sale,
net |
$ |
48,479 |
|
|
$ |
27,828 |
|
|
$ |
28,744 |
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
36.60 |
|
|
$ |
36.22 |
|
|
$ |
34.29 |
|
|
Tangible book value per
share |
$ |
18.33 |
|
|
$ |
17.86 |
|
|
$ |
17.36 |
|
|
|
|
|
|
|
|
|
Shares
outstanding |
|
121,771,252 |
|
|
|
121,413,727 |
|
|
|
103,044,257 |
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENT OF
EARNINGS |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands, except per share
data) |
Interest
income: |
|
|
|
|
|
|
Loans and leases |
$ |
236,375 |
|
|
$ |
219,677 |
|
|
$ |
202,097 |
|
|
Investment
securities |
|
22,547 |
|
|
|
23,648 |
|
|
|
12,195 |
|
|
Deposits in financial
institutions |
|
308 |
|
|
|
172 |
|
|
|
22 |
|
|
Total interest
income |
|
259,230 |
|
|
|
243,497 |
|
|
|
214,314 |
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
Deposits |
|
9,073 |
|
|
|
9,391 |
|
|
|
10,479 |
|
|
Borrowings |
|
581 |
|
|
|
159 |
|
|
|
235 |
|
|
Subordinated
debentures |
|
4,982 |
|
|
|
4,748 |
|
|
|
4,525 |
|
|
Total interest
expense |
|
14,636 |
|
|
|
14,298 |
|
|
|
15,239 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
244,594 |
|
|
|
229,199 |
|
|
|
199,075 |
|
|
Provision for credit
losses |
|
20,140 |
|
|
|
13,772 |
|
|
|
16,434 |
|
|
Net interest income after
provision for credit losses |
|
224,454 |
|
|
|
215,427 |
|
|
|
182,641 |
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
Service charges on
deposit accounts |
|
3,856 |
|
|
|
3,901 |
|
|
|
2,574 |
|
|
Other commissions and
fees |
|
11,489 |
|
|
|
12,691 |
|
|
|
5,396 |
|
|
Leased equipment
income |
|
8,244 |
|
|
|
7,791 |
|
|
|
5,382 |
|
|
Gain on sale of loans
and leases |
|
245 |
|
|
|
183 |
|
|
|
- |
|
|
Gain on securities |
|
8,110 |
|
|
|
- |
|
|
|
3,275 |
|
|
FDIC loss sharing
expense, net |
|
(2,415 |
) |
|
|
(4,291 |
) |
|
|
(4,399 |
) |
|
Other income |
|
5,010 |
|
|
|
7,783 |
|
|
|
8,643 |
|
|
Total noninterest
income |
|
34,539 |
|
|
|
28,058 |
|
|
|
20,871 |
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
Compensation |
|
61,065 |
|
|
|
58,992 |
|
|
|
47,737 |
|
|
Occupancy |
|
12,632 |
|
|
|
12,194 |
|
|
|
10,600 |
|
|
Data processing |
|
5,904 |
|
|
|
5,585 |
|
|
|
4,308 |
|
|
Other professional
services |
|
3,572 |
|
|
|
3,811 |
|
|
|
3,221 |
|
|
Insurance and
assessments |
|
4,965 |
|
|
|
5,450 |
|
|
|
3,025 |
|
|
Intangible asset
amortization |
|
4,746 |
|
|
|
4,910 |
|
|
|
1,501 |
|
|
Leased equipment
depreciation |
|
5,024 |
|
|
|
4,235 |
|
|
|
3,103 |
|
|
Foreclosed assets
(income) expense, net |
|
(561 |
) |
|
|
(3,185 |
) |
|
|
336 |
|
|
Acquisition, integration and reorganization costs |
|
200 |
|
|
|
17,600 |
|
|
|
2,000 |
|
|
Other expense |
|
13,141 |
|
|
|
12,672 |
|
|
|
8,529 |
|
|
Total noninterest
expense |
|
110,688 |
|
|
|
122,264 |
|
|
|
84,360 |
|
|
|
|
|
|
|
|
|
Earnings before income
taxes |
|
148,305 |
|
|
|
121,221 |
|
|
|
119,152 |
|
|
Income tax
expense |
|
(57,849 |
) |
|
|
(49,380 |
) |
|
|
(46,073 |
) |
|
Net
earnings |
$ |
90,456 |
|
|
$ |
71,841 |
|
|
$ |
73,079 |
|
|
|
|
|
|
|
|
|
Basic and diluted earnings
per share |
$ |
0.74 |
|
|
$ |
0.60 |
|
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
NET EARNINGS PER SHARE CALCULATIONS |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
(Dollars in thousands, except per share
data) |
Basic Earnings
Per Share: |
|
|
|
|
|
Net earnings |
$ |
90,456 |
|
|
$ |
71,841 |
|
|
$ |
73,079 |
|
Less: earnings allocated to
unvested restricted stock (1) |
|
(1,067 |
) |
|
|
(690 |
) |
|
|
(819 |
) |
Net earnings allocated to common
shares |
$ |
89,389 |
|
|
$ |
71,151 |
|
|
$ |
72,260 |
|
|
|
|
|
|
|
Weighted-average basic shares
and unvested restricted stock outstanding |
|
121,598 |
|
|
|
120,385 |
|
|
|
103,035 |
|
Less: weighted-average
unvested restricted stock outstanding |
|
(1,392 |
) |
|
|
(1,133 |
) |
|
|
(1,122 |
) |
Weighted-average basic shares
outstanding |
|
120,206 |
|
|
|
119,252 |
|
|
|
101,913 |
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.74 |
|
|
$ |
0.60 |
|
|
$ |
0.71 |
|
|
|
|
|
|
|
Diluted
Earnings Per Share: |
|
|
|
|
|
Net earnings allocated to common
shares |
$ |
89,389 |
|
|
$ |
71,151 |
|
|
$ |
72,260 |
|
|
|
|
|
|
|
Weighted-average basic shares
outstanding |
|
120,206 |
|
|
|
119,252 |
|
|
|
101,913 |
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.74 |
|
|
$ |
0.60 |
|
|
$ |
0.71 |
|
|
|
|
|
|
|
(1)
Represents cash dividends paid to holders of unvested stock, net of
estimated 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 |
|
|
March 31, 2016 |
|
December 31, 2015 |
|
March 31, 2015 |
|
|
|
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 |
$ |
167,626 |
|
$ |
20,072 |
|
|
48.16 |
% |
|
$ |
169,772 |
|
$ |
6,345 |
|
|
14.83 |
% |
|
$ |
260,648 |
|
$ |
10,165 |
|
|
15.82 |
% |
|
Non-PCI loans and
leases |
|
14,303,539 |
|
|
216,303 |
|
|
6.08 |
% |
|
|
13,861,330 |
|
|
213,332 |
|
|
6.11 |
% |
|
|
11,795,034 |
|
|
191,932 |
|
|
6.60 |
% |
|
Total loans and leases |
|
14,471,165 |
|
|
236,375 |
|
|
6.57 |
% |
|
|
14,031,102 |
|
|
219,677 |
|
|
6.21 |
% |
|
|
12,055,682 |
|
|
202,097 |
|
|
6.80 |
% |
|
Investment securities
(1) |
|
3,460,293 |
|
|
27,563 |
|
|
3.20 |
% |
|
|
3,492,124 |
|
|
28,408 |
|
|
3.23 |
% |
|
|
1,613,422 |
|
|
13,980 |
|
|
3.51 |
% |
|
Deposits
in financial institutions |
|
230,293 |
|
|
308 |
|
|
0.54 |
% |
|
|
254,308 |
|
|
172 |
|
|
0.27 |
% |
|
|
32,761 |
|
|
22 |
|
|
0.27 |
% |
|
Total
interest-earning assets |
|
18,161,751 |
|
|
264,246 |
|
|
5.85 |
% |
|
|
17,777,534 |
|
|
248,257 |
|
|
5.54 |
% |
|
|
13,701,865 |
|
|
216,099 |
|
|
6.40 |
% |
|
Other assets |
|
3,036,843 |
|
|
|
|
|
3,047,714 |
|
|
|
|
|
2,594,775 |
|
|
|
|
Total
assets |
$ |
21,198,594 |
|
|
|
|
$ |
20,825,248 |
|
|
|
|
$ |
16,296,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
$ |
926,256 |
|
|
383 |
|
|
0.17 |
% |
|
$ |
889,035 |
|
|
345 |
|
|
0.15 |
% |
|
$ |
726,748 |
|
|
194 |
|
|
0.11 |
% |
|
Money market |
|
3,848,753 |
|
|
2,415 |
|
|
0.25 |
% |
|
|
3,557,364 |
|
|
1,543 |
|
|
0.17 |
% |
|
|
1,836,094 |
|
|
945 |
|
|
0.21 |
% |
|
Savings |
|
753,371 |
|
|
444 |
|
|
0.24 |
% |
|
|
747,054 |
|
|
445 |
|
|
0.24 |
% |
|
|
756,578 |
|
|
571 |
|
|
0.31 |
% |
|
Time |
|
3,860,272 |
|
|
5,831 |
|
|
0.61 |
% |
|
|
4,439,940 |
|
|
7,058 |
|
|
0.63 |
% |
|
|
5,481,886 |
|
|
8,769 |
|
|
0.65 |
% |
|
Total
interest-bearing deposits |
|
9,388,652 |
|
|
9,073 |
|
|
0.39 |
% |
|
|
9,633,393 |
|
|
9,391 |
|
|
0.39 |
% |
|
|
8,801,306 |
|
|
10,479 |
|
|
0.48 |
% |
|
Borrowings |
|
494,725 |
|
|
581 |
|
|
0.47 |
% |
|
|
206,236 |
|
|
159 |
|
|
0.31 |
% |
|
|
424,061 |
|
|
235 |
|
|
0.22 |
% |
|
Subordinated
debentures |
|
436,535 |
|
|
4,982 |
|
|
4.59 |
% |
|
|
435,293 |
|
|
4,748 |
|
|
4.33 |
% |
|
|
432,603 |
|
|
4,525 |
|
|
4.24 |
% |
|
Total
interest-bearing liabilities |
|
10,319,912 |
|
|
14,636 |
|
|
0.57 |
% |
|
|
10,274,922 |
|
|
14,298 |
|
|
0.55 |
% |
|
|
9,657,970 |
|
|
15,239 |
|
|
0.64 |
% |
|
Noninterest-bearing demand deposits |
|
6,273,249 |
|
|
|
|
|
6,043,900 |
|
|
|
|
|
2,949,719 |
|
|
|
|
Other liabilities |
|
166,831 |
|
|
|
|
|
160,264 |
|
|
|
|
|
155,608 |
|
|
|
|
Total liabilities |
|
16,759,992 |
|
|
|
|
|
16,479,086 |
|
|
|
|
|
12,763,297 |
|
|
|
|
Stockholders'
equity |
|
4,438,602 |
|
|
|
|
|
4,346,162 |
|
|
|
|
|
3,533,343 |
|
|
|
|
Total liabilities
and stockholders' equity |
$ |
21,198,594 |
|
|
|
|
$ |
20,825,248 |
|
|
|
|
$ |
16,296,640 |
|
|
|
|
Net interest income
(2) |
|
$ |
249,610 |
|
|
|
|
$ |
233,959 |
|
|
|
|
$ |
200,860 |
|
|
|
Net interest spread
(2) |
|
|
|
5.28 |
% |
|
|
|
|
4.99 |
% |
|
|
|
|
5.76 |
% |
|
Net interest margin
(2) |
|
|
|
5.53 |
% |
|
|
|
|
5.22 |
% |
|
|
|
|
5.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits (3) |
$ |
15,661,901 |
|
$ |
9,073 |
|
|
0.23 |
% |
|
$ |
15,677,293 |
|
$ |
9,391 |
|
|
0.24 |
% |
|
$ |
11,751,025 |
|
$ |
10,479 |
|
|
0.36 |
% |
|
Funding sources
(4) |
$ |
16,593,161 |
|
$ |
14,636 |
|
|
0.35 |
% |
|
$ |
16,318,822 |
|
$ |
14,298 |
|
|
0.35 |
% |
|
$ |
12,607,689 |
|
$ |
15,239 |
|
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes tax equivalent adjustments of $5.0 million, $4.8 million,
and $1.8 million for the three months ended March 31, 2016,
December 31, 2015, and March 31, 2015 related to tax exempt
income on municipal securities. The federal statutory tax rate
utilized was 35% for the periods. |
|
(2) Tax
equivalent. |
|
(3) Total
deposits is the sum of interest-bearing deposits and
noninterest-bearing demand deposits. The cost of total deposits is
calculated as annualized interest expense on deposits divided
by average total deposits. |
|
(4)
Funding sources is the sum of interest-bearing liabilities and
noninterest-bearing demand deposits. The cost of funding sources is
calculated as annualized total interest expense divided by
average funding sources. |
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
FIVE QUARTER BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands, except per share
data) |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
161,977 |
|
|
$ |
161,020 |
|
|
$ |
154,652 |
|
|
$ |
207,598 |
|
|
$ |
140,873 |
|
|
Interest-earning deposits in financial institutions |
|
357,541 |
|
|
|
235,466 |
|
|
|
81,642 |
|
|
|
433,033 |
|
|
|
250,981 |
|
|
Total cash and cash
equivalents |
|
519,518 |
|
|
|
396,486 |
|
|
|
236,294 |
|
|
|
640,631 |
|
|
|
391,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale |
|
3,240,586 |
|
|
|
3,559,437 |
|
|
|
1,809,364 |
|
|
|
1,698,158 |
|
|
|
1,595,409 |
|
|
Federal Home Loan Bank
stock |
|
17,250 |
|
|
|
19,710 |
|
|
|
17,250 |
|
|
|
17,250 |
|
|
|
28,905 |
|
|
Total investment
securities |
|
3,257,836 |
|
|
|
3,579,147 |
|
|
|
1,826,614 |
|
|
|
1,715,408 |
|
|
|
1,624,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-PCI loans and
leases |
|
14,365,915 |
|
|
|
14,339,070 |
|
|
|
12,300,057 |
|
|
|
11,846,314 |
|
|
|
12,047,946 |
|
|
PCI loans |
|
176,607 |
|
|
|
189,095 |
|
|
|
193,340 |
|
|
|
222,691 |
|
|
|
254,346 |
|
|
Total gross loans and leases |
|
14,542,522 |
|
|
|
14,528,165 |
|
|
|
12,493,397 |
|
|
|
12,069,005 |
|
|
|
12,302,292 |
|
|
Deferred fees and
costs |
|
(59,005 |
) |
|
|
(49,911 |
) |
|
|
(41,192 |
) |
|
|
(34,816 |
) |
|
|
(30,126 |
) |
|
Total loans and leases, net
of deferred fees |
|
14,483,517 |
|
|
|
14,478,254 |
|
|
|
12,452,205 |
|
|
|
12,034,189 |
|
|
|
12,272,166 |
|
|
Allowance for loan and
lease losses |
|
(130,361 |
) |
|
|
(115,111 |
) |
|
|
(103,271 |
) |
|
|
(99,375 |
) |
|
|
(92,378 |
) |
|
Total loans and leases,
net |
|
14,353,156 |
|
|
|
14,363,143 |
|
|
|
12,348,934 |
|
|
|
11,934,814 |
|
|
|
12,179,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment leased to others under operating leases |
|
205,163 |
|
|
|
197,452 |
|
|
|
161,508 |
|
|
|
117,182 |
|
|
|
119,959 |
|
|
Premises and equipment,
net |
|
39,713 |
|
|
|
39,197 |
|
|
|
36,475 |
|
|
|
35,984 |
|
|
|
36,022 |
|
|
Foreclosed assets,
net |
|
18,310 |
|
|
|
22,120 |
|
|
|
33,216 |
|
|
|
31,668 |
|
|
|
35,940 |
|
|
Deferred tax asset,
net |
|
91,126 |
|
|
|
126,389 |
|
|
|
169,760 |
|
|
|
211,556 |
|
|
|
236,065 |
|
|
Goodwill |
|
2,175,791 |
|
|
|
2,176,291 |
|
|
|
1,728,380 |
|
|
|
1,728,380 |
|
|
|
1,728,380 |
|
|
Core
deposit and customer relationship intangibles, net |
|
48,137 |
|
|
|
53,220 |
|
|
|
12,704 |
|
|
|
14,201 |
|
|
|
15,703 |
|
|
Other assets |
|
322,259 |
|
|
|
335,045 |
|
|
|
260,220 |
|
|
|
267,196 |
|
|
|
275,915 |
|
|
Total assets |
$ |
21,031,009 |
|
|
$ |
21,288,490 |
|
|
$ |
16,814,105 |
|
|
$ |
16,697,020 |
|
|
$ |
16,643,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
6,139,963 |
|
|
$ |
6,171,455 |
|
|
$ |
3,508,682 |
|
|
$ |
3,396,688 |
|
|
$ |
3,029,463 |
|
|
Interest-bearing
deposits |
|
9,301,412 |
|
|
|
9,494,727 |
|
|
|
8,607,081 |
|
|
|
9,185,128 |
|
|
|
8,904,712 |
|
|
Total
deposits |
|
15,441,375 |
|
|
|
15,666,182 |
|
|
|
12,115,763 |
|
|
|
12,581,816 |
|
|
|
11,934,175 |
|
|
Borrowings |
|
551,401 |
|
|
|
621,914 |
|
|
|
552,497 |
|
|
|
2,751 |
|
|
|
618,156 |
|
|
Subordinated
debentures |
|
438,723 |
|
|
|
436,000 |
|
|
|
435,417 |
|
|
|
433,944 |
|
|
|
431,448 |
|
|
Accrued
interest payable and other liabilities |
|
142,918 |
|
|
|
166,703 |
|
|
|
128,724 |
|
|
|
127,019 |
|
|
|
126,800 |
|
|
Total
liabilities |
|
16,574,417 |
|
|
|
16,890,799 |
|
|
|
13,232,401 |
|
|
|
13,145,530 |
|
|
|
13,110,579 |
|
|
STOCKHOLDERS'
EQUITY (1) |
|
4,456,592 |
|
|
|
4,397,691 |
|
|
|
3,581,704 |
|
|
|
3,551,490 |
|
|
|
3,533,361 |
|
|
Total liabilities and
stockholders’ equity |
$ |
21,031,009 |
|
|
$ |
21,288,490 |
|
|
$ |
16,814,105 |
|
|
$ |
16,697,020 |
|
|
$ |
16,643,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes net unrealized gain on securities
available-for-sale |
$ |
48,479 |
|
|
$ |
27,828 |
|
|
$ |
24,459 |
|
|
$ |
16,255 |
|
|
$ |
28,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
36.60 |
|
|
$ |
36.22 |
|
|
$ |
34.76 |
|
|
$ |
34.46 |
|
|
$ |
34.29 |
|
|
Tangible book value per
share |
$ |
18.33 |
|
|
$ |
17.86 |
|
|
$ |
17.86 |
|
|
$ |
17.55 |
|
|
$ |
17.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
121,771,252 |
|
|
|
121,413,727 |
|
|
|
103,053,694 |
|
|
|
103,051,989 |
|
|
|
103,044,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
FIVE QUARTER STATEMENT OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands, except per share
data) |
|
Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
236,375 |
|
|
$ |
219,677 |
|
|
$ |
193,539 |
|
|
$ |
203,781 |
|
|
$ |
202,097 |
|
|
Investment
securities |
|
22,547 |
|
|
|
23,648 |
|
|
|
13,955 |
|
|
|
14,570 |
|
|
|
12,195 |
|
|
Deposits in financial
institutions |
|
308 |
|
|
|
172 |
|
|
|
178 |
|
|
|
104 |
|
|
|
22 |
|
|
Total interest
income |
|
259,230 |
|
|
|
243,497 |
|
|
|
207,672 |
|
|
|
218,455 |
|
|
|
214,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
9,073 |
|
|
|
9,391 |
|
|
|
10,400 |
|
|
|
11,233 |
|
|
|
10,479 |
|
|
Borrowings |
|
581 |
|
|
|
159 |
|
|
|
72 |
|
|
|
88 |
|
|
|
235 |
|
|
Subordinated
debentures |
|
4,982 |
|
|
|
4,748 |
|
|
|
4,680 |
|
|
|
4,582 |
|
|
|
4,525 |
|
|
Total interest
expense |
|
14,636 |
|
|
|
14,298 |
|
|
|
15,152 |
|
|
|
15,903 |
|
|
|
15,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
244,594 |
|
|
|
229,199 |
|
|
|
192,520 |
|
|
|
202,552 |
|
|
|
199,075 |
|
|
Provision for credit
losses |
|
20,140 |
|
|
|
13,772 |
|
|
|
8,746 |
|
|
|
6,529 |
|
|
|
16,434 |
|
|
Net interest income after
provision for credit losses |
|
224,454 |
|
|
|
215,427 |
|
|
|
183,774 |
|
|
|
196,023 |
|
|
|
182,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
3,856 |
|
|
|
3,901 |
|
|
|
2,601 |
|
|
|
2,612 |
|
|
|
2,574 |
|
|
Other commissions and
fees |
|
11,489 |
|
|
|
12,691 |
|
|
|
6,376 |
|
|
|
7,123 |
|
|
|
5,396 |
|
|
Leased equipment
income |
|
8,244 |
|
|
|
7,791 |
|
|
|
5,475 |
|
|
|
5,375 |
|
|
|
5,382 |
|
|
Gain on sale of loans
and leases |
|
245 |
|
|
|
183 |
|
|
|
27 |
|
|
|
163 |
|
|
|
- |
|
|
Gain (loss) on
securities |
|
8,110 |
|
|
|
- |
|
|
|
655 |
|
|
|
(186 |
) |
|
|
3,275 |
|
|
FDIC loss sharing
expense, net |
|
(2,415 |
) |
|
|
(4,291 |
) |
|
|
(4,449 |
) |
|
|
(5,107 |
) |
|
|
(4,399 |
) |
|
Other income |
|
5,010 |
|
|
|
7,783 |
|
|
|
5,073 |
|
|
|
9,643 |
|
|
|
8,643 |
|
|
Total noninterest
income |
|
34,539 |
|
|
|
28,058 |
|
|
|
15,758 |
|
|
|
19,623 |
|
|
|
20,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
Compensation |
|
61,065 |
|
|
|
58,992 |
|
|
|
48,152 |
|
|
|
49,033 |
|
|
|
47,737 |
|
|
Occupancy |
|
12,632 |
|
|
|
12,194 |
|
|
|
10,762 |
|
|
|
10,588 |
|
|
|
10,600 |
|
|
Data processing |
|
5,904 |
|
|
|
5,585 |
|
|
|
4,322 |
|
|
|
4,402 |
|
|
|
4,308 |
|
|
Other professional
services |
|
3,572 |
|
|
|
3,811 |
|
|
|
3,396 |
|
|
|
3,332 |
|
|
|
3,221 |
|
|
Insurance and
assessments |
|
4,965 |
|
|
|
5,450 |
|
|
|
3,805 |
|
|
|
4,716 |
|
|
|
3,025 |
|
|
Intangible asset
amortization |
|
4,746 |
|
|
|
4,910 |
|
|
|
1,497 |
|
|
|
1,502 |
|
|
|
1,501 |
|
|
Leased equipment
depreciation |
|
5,024 |
|
|
|
4,235 |
|
|
|
3,162 |
|
|
|
3,103 |
|
|
|
3,103 |
|
|
Foreclosed assets
(income) expense, net |
|
(561 |
) |
|
|
(3,185 |
) |
|
|
4,521 |
|
|
|
(2,340 |
) |
|
|
336 |
|
|
Acquisition, integration and reorganization costs |
|
200 |
|
|
|
17,600 |
|
|
|
747 |
|
|
|
900 |
|
|
|
2,000 |
|
|
Other expense |
|
13,141 |
|
|
|
12,672 |
|
|
|
9,775 |
|
|
|
10,040 |
|
|
|
8,529 |
|
|
Total noninterest
expense |
|
110,688 |
|
|
|
122,264 |
|
|
|
90,139 |
|
|
|
85,276 |
|
|
|
84,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes |
|
148,305 |
|
|
|
121,221 |
|
|
|
109,393 |
|
|
|
130,370 |
|
|
|
119,152 |
|
|
Income tax
expense |
|
(57,849 |
) |
|
|
(49,380 |
) |
|
|
(39,777 |
) |
|
|
(45,287 |
) |
|
|
(46,073 |
) |
|
Net
earnings |
$ |
90,456 |
|
|
$ |
71,841 |
|
|
$ |
69,616 |
|
|
$ |
85,083 |
|
|
$ |
73,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings
per share |
$ |
0.74 |
|
|
$ |
0.60 |
|
|
$ |
0.68 |
|
|
$ |
0.83 |
|
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
FIVE QUARTER SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands) |
|
Performance
Ratios - GAAP: |
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
1.72 |
% |
|
|
1.37 |
% |
|
|
1.65 |
% |
|
|
2.07 |
% |
|
|
1.82 |
% |
|
Return on average equity (1) |
|
8.20 |
% |
|
|
6.56 |
% |
|
|
7.73 |
% |
|
|
9.62 |
% |
|
|
8.39 |
% |
|
Yield on average loans and
leases |
|
6.57 |
% |
|
|
6.21 |
% |
|
|
6.34 |
% |
|
|
6.75 |
% |
|
|
6.80 |
% |
|
Yield on average
interest-earning assets (2) |
|
5.85 |
% |
|
|
5.54 |
% |
|
|
5.88 |
% |
|
|
6.35 |
% |
|
|
6.40 |
% |
|
Cost of average total deposits |
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.33 |
% |
|
|
0.37 |
% |
|
|
0.36 |
% |
|
Cost of average time deposits |
|
0.61 |
% |
|
|
0.63 |
% |
|
|
0.66 |
% |
|
|
0.68 |
% |
|
|
0.65 |
% |
|
Cost of average
interest-bearing liabilities |
|
0.57 |
% |
|
|
0.55 |
% |
|
|
0.63 |
% |
|
|
0.66 |
% |
|
|
0.64 |
% |
|
Cost of average funding
sources |
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.46 |
% |
|
|
0.50 |
% |
|
|
0.49 |
% |
|
Net interest rate spread (2) |
|
5.28 |
% |
|
|
4.99 |
% |
|
|
5.25 |
% |
|
|
5.69 |
% |
|
|
5.76 |
% |
|
Net interest margin (2) |
|
5.53 |
% |
|
|
5.22 |
% |
|
|
5.46 |
% |
|
|
5.89 |
% |
|
|
5.95 |
% |
|
Noninterest expense as a percentage
of average assets (1) |
|
2.10 |
% |
|
|
2.33 |
% |
|
|
2.14 |
% |
|
|
2.08 |
% |
|
|
2.10 |
% |
|
Efficiency ratio |
|
38.5 |
% |
|
|
39.3 |
% |
|
|
39.6 |
% |
|
|
38.0 |
% |
|
|
36.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios - Non-GAAP: |
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity
(1) |
|
16.45 |
% |
|
|
13.14 |
% |
|
|
15.09 |
% |
|
|
18.90 |
% |
|
|
16.50 |
% |
|
Core net interest margin (2) |
|
5.10 |
% |
|
|
5.10 |
% |
|
|
5.19 |
% |
|
|
5.33 |
% |
|
|
5.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances: |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
14,471,165 |
|
|
$ |
14,031,102 |
|
|
$ |
12,112,881 |
|
|
$ |
12,108,016 |
|
|
$ |
12,055,682 |
|
|
Interest-earning assets |
|
18,161,751 |
|
|
|
17,777,534 |
|
|
|
14,198,482 |
|
|
|
13,942,289 |
|
|
|
13,701,865 |
|
|
Total assets |
|
21,198,594 |
|
|
|
20,825,248 |
|
|
|
16,690,177 |
|
|
|
16,463,311 |
|
|
|
16,296,640 |
|
|
Noninterest-bearing deposits |
|
6,273,249 |
|
|
|
6,043,900 |
|
|
|
3,486,780 |
|
|
|
3,157,129 |
|
|
|
2,949,719 |
|
|
Interest-bearing deposits |
|
9,388,652 |
|
|
|
9,633,393 |
|
|
|
8,993,681 |
|
|
|
9,107,937 |
|
|
|
8,801,306 |
|
|
Total deposits |
|
15,661,901 |
|
|
|
15,677,293 |
|
|
|
12,480,461 |
|
|
|
12,265,066 |
|
|
|
11,751,025 |
|
|
Borrowings and
subordinated debentures |
|
931,260 |
|
|
|
641,529 |
|
|
|
504,591 |
|
|
|
513,820 |
|
|
|
856,664 |
|
|
Interest-bearing liabilities |
|
10,319,912 |
|
|
|
10,274,922 |
|
|
|
9,498,272 |
|
|
|
9,621,757 |
|
|
|
9,657,970 |
|
|
Funding sources |
|
16,593,161 |
|
|
|
16,318,822 |
|
|
|
12,985,052 |
|
|
|
12,778,886 |
|
|
|
12,607,689 |
|
|
Stockholders' equity |
|
4,438,602 |
|
|
|
4,346,162 |
|
|
|
3,572,765 |
|
|
|
3,548,748 |
|
|
|
3,533,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Annualized. |
|
|
|
|
|
|
|
|
|
|
(2) Tax
equivalent. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
FIVE QUARTER SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands) |
|
Non-PCI Credit
Quality: |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to
loans and leases |
|
0.96 |
% |
|
|
0.85 |
% |
|
|
0.82 |
% |
|
|
0.78 |
% |
|
|
0.72 |
% |
|
Allowance for credit losses
to nonaccrual loans and leases |
|
106 |
% |
|
|
95 |
% |
|
|
94 |
% |
|
|
71 |
% |
|
|
62 |
% |
|
Nonaccrual loans and leases to
loans and leases |
|
0.91 |
% |
|
|
0.90 |
% |
|
|
0.87 |
% |
|
|
1.11 |
% |
|
|
1.16 |
% |
|
Nonperforming assets to loans
and leases and foreclosed assets |
|
1.05 |
% |
|
|
1.06 |
% |
|
|
1.14 |
% |
|
|
1.37 |
% |
|
|
1.45 |
% |
|
Nonperforming assets to total
assets |
|
0.72 |
% |
|
|
0.71 |
% |
|
|
0.84 |
% |
|
|
0.98 |
% |
|
|
1.05 |
% |
|
Trailing twelve month net
charge-offs to average loans and leases |
|
0.10 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.06 |
% |
|
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated Capital: |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio (1) |
|
11.58 |
% |
|
|
11.67 |
% |
|
|
12.04 |
% |
|
|
11.96 |
% |
|
|
11.74 |
% |
|
Common equity tier 1 capital ratio
(1) |
|
12.70 |
% |
|
|
12.58 |
% |
|
|
12.74 |
% |
|
|
12.87 |
% |
|
|
12.27 |
% |
|
Tier 1 capital ratio (1) |
|
12.70 |
% |
|
|
12.60 |
% |
|
|
12.74 |
% |
|
|
12.87 |
% |
|
|
12.27 |
% |
|
Total capital ratio (1) |
|
16.04 |
% |
|
|
15.65 |
% |
|
|
16.32 |
% |
|
|
16.53 |
% |
|
|
15.80 |
% |
|
Tangible common equity
ratio (non-GAAP measure) |
|
11.87 |
% |
|
|
11.38 |
% |
|
|
12.21 |
% |
|
|
12.10 |
% |
|
|
12.01 |
% |
|
Risk-weighted assets (1) |
$ |
17,226,658 |
|
|
$ |
17,170,292 |
|
|
$ |
14,038,839 |
|
|
$ |
13,569,369 |
|
|
$ |
13,776,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Western
Bank Capital: |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio (1) |
|
11.10 |
% |
|
|
11.40 |
% |
|
|
11.56 |
% |
|
|
11.65 |
% |
|
|
11.53 |
% |
|
Common equity tier 1 capital ratio
(1) |
|
12.19 |
% |
|
|
12.03 |
% |
|
|
12.25 |
% |
|
|
12.55 |
% |
|
|
12.07 |
% |
|
Tier 1 capital ratio (1) |
|
12.19 |
% |
|
|
12.03 |
% |
|
|
12.25 |
% |
|
|
12.55 |
% |
|
|
12.07 |
% |
|
Total capital ratio (1) |
|
13.06 |
% |
|
|
12.80 |
% |
|
|
13.05 |
% |
|
|
13.35 |
% |
|
|
12.80 |
% |
|
Tangible common equity
ratio (non-GAAP measure) |
|
11.27 |
% |
|
|
10.80 |
% |
|
|
11.53 |
% |
|
|
11.46 |
% |
|
|
11.32 |
% |
|
|
|
(1)
Capital information for March 31, 2016 is preliminary. |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP RECONCILIATION
This press release contains certain non-GAAP financial
disclosures for return on average tangible equity, tangible common
equity amounts and ratios, tangible book value per share, and core
net interest margin. 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. We provide
non-GAAP measures for 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.
Please refer to the following tables 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 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Return on Average Tangible Equity |
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
Net
earnings |
$ |
90,456 |
|
|
$ |
71,841 |
|
|
$ |
73,079 |
|
|
|
|
|
|
|
|
|
|
Average
stockholders' equity |
$ |
4,438,602 |
|
|
$ |
4,346,162 |
|
|
$ |
3,533,343 |
|
|
Less: |
Average intangible
assets |
|
2,227,520 |
|
|
|
2,177,631 |
|
|
|
1,737,441 |
|
|
Average
tangible common equity |
$ |
2,211,082 |
|
|
$ |
2,168,531 |
|
|
$ |
1,795,902 |
|
|
|
|
|
|
|
|
|
|
Return on
average equity (1) |
|
8.20 |
% |
|
|
6.56 |
% |
|
|
8.39 |
% |
|
Return on
average tangible equity (2) |
|
16.45 |
% |
|
|
13.14 |
% |
|
|
16.50 |
% |
|
|
|
|
|
|
|
|
|
(1)
Annualized net earnings divided by average stockholders'
equity. |
|
(2)
Annualized net earnings divided by average tangible common
equity. |
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
GAAP TO NON-GAAP RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
Tangible Common
Equity Ratio |
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
2015 |
|
|
|
(Dollars in thousands) |
|
PacWest Bancorp
Consolidated: |
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
$ |
4,456,592 |
|
|
$ |
4,397,691 |
|
|
$ |
3,581,704 |
|
|
$ |
3,551,490 |
|
|
$ |
3,533,361 |
|
|
Less: Intangible
assets |
|
2,223,928 |
|
|
|
2,229,511 |
|
|
|
1,741,084 |
|
|
|
1,742,581 |
|
|
|
1,744,083 |
|
|
Tangible common equity |
$ |
2,232,664 |
|
|
$ |
2,168,180 |
|
|
$ |
1,840,620 |
|
|
$ |
1,808,909 |
|
|
$ |
1,789,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
21,031,009 |
|
|
$ |
21,288,490 |
|
|
$ |
16,814,105 |
|
|
$ |
16,697,020 |
|
|
$ |
16,643,940 |
|
|
Less: Intangible
assets |
|
2,223,928 |
|
|
|
2,229,511 |
|
|
|
1,741,084 |
|
|
|
1,742,581 |
|
|
|
1,744,083 |
|
|
Tangible assets |
$ |
18,807,081 |
|
|
$ |
19,058,979 |
|
|
$ |
15,073,021 |
|
|
$ |
14,954,439 |
|
|
$ |
14,899,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets
ratio |
|
21.19 |
% |
|
|
20.66 |
% |
|
|
21.30 |
% |
|
|
21.27 |
% |
|
|
21.23 |
% |
|
Tangible common equity
ratio (1) |
|
11.87 |
% |
|
|
11.38 |
% |
|
|
12.21 |
% |
|
|
12.10 |
% |
|
|
12.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
36.60 |
|
|
$ |
36.22 |
|
|
$ |
34.76 |
|
|
$ |
34.46 |
|
|
$ |
34.29 |
|
|
Tangible book value per
share (2) |
$ |
18.33 |
|
|
$ |
17.86 |
|
|
$ |
17.86 |
|
|
$ |
17.55 |
|
|
$ |
17.36 |
|
|
Shares outstanding |
|
121,771,252 |
|
|
|
121,413,727 |
|
|
|
103,053,694 |
|
|
|
103,051,989 |
|
|
|
103,044,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Western
Bank: |
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
$ |
4,331,841 |
|
|
$ |
4,276,279 |
|
|
$ |
3,466,817 |
|
|
$ |
3,440,715 |
|
|
$ |
3,410,276 |
|
|
Less: Intangible
assets |
|
2,223,928 |
|
|
|
2,229,511 |
|
|
|
1,741,084 |
|
|
|
1,742,581 |
|
|
|
1,744,083 |
|
|
Tangible common equity |
$ |
2,107,913 |
|
|
$ |
2,046,768 |
|
|
$ |
1,725,733 |
|
|
$ |
1,698,134 |
|
|
$ |
1,666,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
20,928,105 |
|
|
$ |
21,180,689 |
|
|
$ |
16,707,072 |
|
|
$ |
16,555,610 |
|
|
$ |
16,458,591 |
|
|
Less: Intangible
assets |
|
2,223,928 |
|
|
|
2,229,511 |
|
|
|
1,741,084 |
|
|
|
1,742,581 |
|
|
|
1,744,083 |
|
|
Tangible assets |
$ |
18,704,177 |
|
|
$ |
18,951,178 |
|
|
$ |
14,965,988 |
|
|
$ |
14,813,029 |
|
|
$ |
14,714,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets
ratio |
|
20.70 |
% |
|
|
20.19 |
% |
|
|
20.75 |
% |
|
|
20.78 |
% |
|
|
20.72 |
% |
|
Tangible common equity
ratio |
|
11.27 |
% |
|
|
10.80 |
% |
|
|
11.53 |
% |
|
|
11.46 |
% |
|
|
11.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Tangible common equity divided by tangible assets. |
|
(2)
Tangible common equity divided by shares outstanding. |
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Matthew P. Wagner
President and CEO
Phone: 310-887-8520
Patrick J. Rusnak
Executive Vice President and CFO
714-989-4705
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