PacWest Bancorp Announces Early Termination of All FDIC Loss Share Agreements
13 Mai 2016 - 10:45PM
PacWest Bancorp (the “Company”) (Nasdaq:PACW) announced today that
Pacific Western Bank (the “Bank”), a wholly-owned subsidiary of the
Company, had entered into an agreement with the Federal Deposit
Insurance Corporation (the “FDIC”) to terminate all existing loss
share agreements with the FDIC as of May 12, 2016. These loss share
agreements were entered into by the Bank in 2009 and 2010 in
conjunction with the Bank acquiring substantially all the assets
and assuming substantially all the liabilities of two failed banks
in FDIC-assisted acquisitions and in conjunction with the Bank
assuming the loss share agreements of two failed banks pursuant to
its acquisition of First California Bank in May 2013. The Company
paid the FDIC $7.9 million to terminate the agreements. The Company
will record an after-tax charge of approximately $3.7 million in
the second quarter to write-off the remaining loss sharing asset,
relieve the claw-back liability and recognize the payment to the
FDIC.
The termination of the FDIC loss share agreements has no effect
on the yields of the loans that were previously covered under these
agreements. Further, the Bank will be solely responsible for all
future charge-offs, recoveries, gains, losses and expenses related
to the previously covered assets because the FDIC will no longer
share in those amounts.
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 79 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 through its CapitalSource
and Square 1 Bank divisions. CapitalSource provides cash flow,
asset-based, equipment and real estate loans and leases 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 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.pacificwesternbank.com.
Contact information:
Matt Wagner, Chief Executive Officer, (310) 887-8520
Pat Rusnak, Executive Vice President and CFO, (714) 989-4705
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