Highlights
PacWest Bancorp (Nasdaq:PACW) today announced net
earnings for the second quarter of 2018 of $115.7 million, or $0.92
per diluted share, compared to net earnings for the first quarter
of 2018 of $118.3 million, or $0.93 per diluted share. The
decrease in net earnings from the prior quarter was due primarily
to a higher provision for credit losses offset partially by higher
net interest income and higher noninterest income.
The provision for credit losses increased by $13.5 million in
the second quarter of 2018 compared to the first quarter of 2018
due mainly to higher net charge-offs. Net interest income
increased by $5.8 million in the second quarter of 2018 due mostly
to a higher yield on average loans and leases and one more day in
the current quarter, partially offset by an increase in the cost of
average total deposits and borrowings.
Matt Wagner, President and CEO, commented, “While the credit
provision was higher than expected, we were pleased with the
increase in loan and lease production and net loan growth in the
second quarter. The second quarter efficiency ratio improved
to 39.8% as a result of higher revenues combined with lower
operating expenses. Our second quarter results produced a return on
assets of 1.93% and a return on tangible equity of 20.98%.”
Mr. Wagner continued, “Our second quarter tax equivalent NIM
increased by seven basis points to 5.18%. While the NIM benefitted
from the repricing of variable-rate loans and higher recapture of
nonaccrual interest, this was partially offset by higher rates on
deposits and higher balances and rates on borrowings. The
growth in loans outstanding and unfunded commitments during the
quarter should be a catalyst for increased interest income in the
second half of the year.”
FINANCIAL HIGHLIGHTS
|
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At or For the |
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|
|
At or For the |
|
|
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Three Months Ended |
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|
|
Six Months Ended |
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|
|
June 30, |
|
March 31, |
|
Increase |
|
June 30, |
|
Increase |
Financial
Highlights |
2018 |
|
2018 |
|
(Decrease) |
|
2018 |
|
2017 |
|
(Decrease) |
|
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|
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|
(Dollars in thousands, except per share
data) |
Net earnings |
$ |
115,735 |
|
|
$ |
118,276 |
|
|
$ |
(2,541 |
) |
|
$ |
234,011 |
|
|
$ |
172,315 |
|
|
$ |
61,696 |
|
Diluted earnings per
share |
$ |
0.92 |
|
|
$ |
0.93 |
|
|
$ |
(0.01 |
) |
|
$ |
1.85 |
|
|
$ |
1.42 |
|
|
$ |
0.43 |
|
Return on average
assets |
|
1.93 |
% |
|
|
1.99 |
% |
|
|
(0.06 |
) |
|
|
1.96 |
% |
|
|
1.59 |
% |
|
|
0.37 |
|
Return on average |
|
|
|
|
|
|
|
|
|
|
|
tangible
equity (1) |
|
20.98 |
% |
|
|
21.08 |
% |
|
|
(0.10 |
) |
|
|
21.03 |
% |
|
|
15.00 |
% |
|
|
6.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
("NIM") |
|
|
|
|
|
|
|
|
|
|
|
(tax
equivalent) |
|
5.18 |
% |
|
|
5.11 |
% |
|
|
0.07 |
|
|
|
5.15 |
% |
|
|
5.19 |
% |
|
|
(0.04 |
) |
Yield on average loans
and |
|
|
|
|
|
|
|
|
|
|
|
leases
(tax equivalent) |
|
6.30 |
% |
|
|
6.11 |
% |
|
|
0.19 |
|
|
|
6.21 |
% |
|
|
6.01 |
% |
|
|
0.20 |
|
Cost of average total
deposits |
|
0.37 |
% |
|
|
0.31 |
% |
|
|
0.06 |
|
|
|
0.34 |
% |
|
|
0.23 |
% |
|
|
0.11 |
|
Efficiency ratio |
|
39.8 |
% |
|
|
41.7 |
% |
|
|
(1.9 |
) |
|
|
40.7 |
% |
|
|
40.8 |
% |
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
24,529,557 |
|
|
$ |
24,149,330 |
|
|
$ |
380,227 |
|
|
$ |
24,529,557 |
|
|
$ |
22,246,877 |
|
|
$ |
2,282,680 |
|
Loans and leases
held |
|
|
|
|
|
|
|
|
|
|
|
for
investment, |
|
|
|
|
|
|
|
|
|
|
|
net of
deferred fees |
$ |
16,885,192 |
|
|
$ |
16,455,285 |
|
|
$ |
429,907 |
|
|
$ |
16,885,192 |
|
|
$ |
15,543,457 |
|
|
$ |
1,341,735 |
|
Noninterest-bearing
deposits |
$ |
8,126,153 |
|
|
$ |
8,232,140 |
|
|
$ |
(105,987 |
) |
|
$ |
8,126,153 |
|
|
$ |
6,701,039 |
|
|
$ |
1,425,114 |
|
Core deposits |
$ |
15,586,238 |
|
|
$ |
15,661,529 |
|
|
$ |
(75,291 |
) |
|
$ |
15,586,238 |
|
|
$ |
13,217,574 |
|
|
$ |
2,368,664 |
|
Total deposits |
$ |
17,929,192 |
|
|
$ |
18,078,788 |
|
|
$ |
(149,596 |
) |
|
$ |
17,929,192 |
|
|
$ |
16,874,977 |
|
|
$ |
1,054,215 |
|
|
|
|
|
|
|
|
|
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|
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Noninterest-bearing |
|
|
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|
|
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|
|
deposits
as percentage |
|
|
|
|
|
|
|
|
|
|
|
of total
deposits |
|
45 |
% |
|
|
46 |
% |
|
|
(1 |
) |
|
|
45 |
% |
|
|
40 |
% |
|
|
5 |
|
Core deposits as |
|
|
|
|
|
|
|
|
|
|
|
percentage of total |
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
87 |
% |
|
|
87 |
% |
|
|
- |
|
|
|
87 |
% |
|
|
78 |
% |
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets
ratio |
|
19.48 |
% |
|
|
20.16 |
% |
|
|
(0.68 |
) |
|
|
19.48 |
% |
|
|
20.50 |
% |
|
|
(1.02 |
) |
Tangible common
equity |
|
|
|
|
|
|
|
|
|
|
|
ratio
(1) |
|
9.86 |
% |
|
|
10.43 |
% |
|
|
(0.57 |
) |
|
|
9.86 |
% |
|
|
11.75 |
% |
|
|
(1.89 |
) |
Book value per
share |
$ |
38.36 |
|
|
$ |
38.47 |
|
|
$ |
(0.11 |
) |
|
$ |
38.36 |
|
|
$ |
37.55 |
|
|
$ |
0.81 |
|
Tangible book value
per |
|
|
|
|
|
|
|
|
|
|
|
share
(1) |
$ |
17.35 |
|
|
$ |
17.75 |
|
|
$ |
(0.40 |
) |
|
$ |
17.35 |
|
|
$ |
19.40 |
|
|
$ |
(2.05 |
) |
|
|
|
|
|
|
|
|
|
|
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|
(1) Non-GAAP
measure. |
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INCOME STATEMENT HIGHLIGHTS
Net Interest Income
Net interest income increased by $5.8 million to $262.3 million
for the second quarter of 2018 compared to $256.5 million for the
first quarter of 2018 due mainly to a higher yield on average loans
and leases and one additional day in the second quarter. The
tax equivalent yield on average loans and leases was 6.30% for the
second quarter of 2018 compared to 6.11% for the first quarter of
2018. The increase in the yield on average loans and leases was due
principally to higher coupon interest (15 basis points) and higher
recapture of nonaccrual interest (four basis points).
The tax equivalent NIM was 5.18% for the second quarter of 2018
compared to 5.11% for the first quarter of 2018. The increase
in the NIM was due mainly to the higher yield on average loans and
leases resulting from higher loan coupon interest and higher
recapture of nonaccrual interest, which was partially offset by an
increase of six basis points in the cost of average total
deposits.
The cost of average total deposits increased to 0.37% for the
second quarter of 2018 from 0.31% for the first quarter of 2018 due
to higher rates paid for non-core deposits and pricing adjustments
for select customers in light of recent market rate increases and
the competitive market environment.
Provision for Credit Losses
A provision for credit losses of $17.5 million was recorded in
the second quarter of 2018 compared to $4.0 million in the first
quarter of 2018, which benefitted from higher than normal
recoveries of $7.2 million. The higher provision for the
second quarter of 2018 was due mainly to higher net charge-offs.
The allowance for credit losses as a percentage of loans and leases
held for investment decreased to 0.99% at June 30, 2018 from 1.02%
at March 31, 2018.
The following table presents details of the provision for credit
losses for the periods indicated:
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
Increase |
Provision for
Credit Losses |
2018 |
|
2018 |
|
(Decrease) |
|
|
|
|
|
|
|
(In thousands) |
Addition to (reduction
in) allowance for loan |
|
|
|
|
|
and lease
losses |
$ |
15,000 |
|
$ |
(226 |
) |
|
$ |
15,226 |
|
Addition to (reduction
in) reserve for unfunded |
|
|
|
|
|
loan
commitments |
|
2,500 |
|
|
4,226 |
|
|
|
(1,726 |
) |
Total
provision for credit losses |
$ |
17,500 |
|
$ |
4,000 |
|
|
$ |
13,500 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
Noninterest income increased by $1.1 million to $39.6 million
for the second quarter of 2018 compared to $38.6 million for the
first quarter of 2018 due mainly to increases in all income
categories except for the gain on sale of securities and the gain
on sale of loans and leases, as sale activities were minimal in the
second quarter. The significant increase in other income was
attributable to $7.5 million of gains on early lease
terminations.
The following table presents details of noninterest income for
the periods indicated:
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
Increase |
Noninterest
Income |
2018 |
|
2018 |
|
(Decrease) |
|
|
|
|
|
|
|
(In thousands) |
Service charges on
deposit accounts |
$ |
4,265 |
|
$ |
4,174 |
|
$ |
91 |
|
Other commissions and
fees |
|
11,767 |
|
|
10,265 |
|
|
1,502 |
|
Leased equipment
income |
|
9,790 |
|
|
9,587 |
|
|
203 |
|
Gain on sale of loans
and leases |
|
106 |
|
|
4,569 |
|
|
(4,463 |
) |
Gain on sale of
securities |
|
253 |
|
|
6,311 |
|
|
(6,058 |
) |
Other income: |
|
|
|
|
|
Dividends
and gains on equity investments |
|
1,992 |
|
|
251 |
|
|
1,741 |
|
Warrant
income |
|
1,225 |
|
|
248 |
|
|
977 |
|
Other |
|
10,240 |
|
|
3,154 |
|
|
7,086 |
|
Total
noninterest income |
$ |
39,638 |
|
$ |
38,559 |
|
$ |
1,079 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Noninterest expense decreased by $0.9 million to $126.4 million
for the second quarter of 2018 compared to $127.4 million for the
first quarter of 2018 attributable primarily to a $1.1 million
decrease in compensation expense due mainly to lower payroll
taxes.
The following table presents details of noninterest expense for
the periods indicated:
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
Increase |
Noninterest
Expense |
2018 |
|
2018 |
|
(Decrease) |
|
|
|
|
|
|
|
(In thousands) |
Compensation |
$ |
69,913 |
|
|
$ |
71,023 |
|
|
$ |
(1,110 |
) |
Occupancy |
|
13,575 |
|
|
|
13,223 |
|
|
|
352 |
|
Data processing |
|
6,896 |
|
|
|
6,659 |
|
|
|
237 |
|
Other professional
services |
|
5,257 |
|
|
|
4,439 |
|
|
|
818 |
|
Insurance and
assessments |
|
5,330 |
|
|
|
5,727 |
|
|
|
(397 |
) |
Intangible asset
amortization |
|
5,587 |
|
|
|
6,346 |
|
|
|
(759 |
) |
Leased equipment
depreciation |
|
5,237 |
|
|
|
5,375 |
|
|
|
(138 |
) |
Foreclosed assets
income, net |
|
(61 |
) |
|
|
(122 |
) |
|
|
61 |
|
Loan expense |
|
3,058 |
|
|
|
2,271 |
|
|
|
787 |
|
Other |
|
11,657 |
|
|
|
12,454 |
|
|
|
(797 |
) |
Total
noninterest expense |
$ |
126,449 |
|
|
$ |
127,395 |
|
|
$ |
(946 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes
The overall effective income tax rate was 26.8% for the second
quarter of 2018 and 27.7% for the first quarter of 2018. The
effective tax rate for the full year 2018 is estimated to be
approximately 28%.
BALANCE SHEET HIGHLIGHTS
Loans and Leases
Loans and leases held for investment, net of deferred fees,
increased by $429.9 million in the second quarter of 2018 to $16.9
billion at June 30, 2018. The net increase was driven mainly
by new production of $1.3 billion and disbursements of $1.2
billion, offset partially by payoffs of $1.2 billion, paydowns of
$829.1 million, and sales of $27.8 million.
The following table presents a roll forward of loans and leases
held for investment, net of deferred fees, for the periods
indicated:
|
|
|
|
|
|
|
Three Months |
|
Six Months |
|
Ended |
|
Ended |
Loans and
Leases |
June 30, |
|
March 31, |
|
June 30, |
Held for
Investment Roll Forward (1) |
2018 |
|
2018 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Balance, beginning of
period |
$ |
16,455,285 |
|
|
$ |
16,972,743 |
|
|
$ |
16,972,743 |
|
New
production |
|
1,256,559 |
|
|
|
744,918 |
|
|
|
2,001,477 |
|
Existing
loans and leases: |
|
|
|
|
|
Payoffs |
|
(1,154,400 |
) |
|
|
(930,973 |
) |
|
|
(2,085,373 |
) |
Paydowns |
|
(829,119 |
) |
|
|
(936,002 |
) |
|
|
(1,765,121 |
) |
Disbursements |
|
1,203,940 |
|
|
|
747,376 |
|
|
|
1,951,316 |
|
Sales |
|
(27,779 |
) |
|
|
(130,624 |
) |
|
|
(158,403 |
) |
Transfers
to foreclosed assets |
|
(1,059 |
) |
|
|
- |
|
|
|
(1,059 |
) |
Charge-offs |
|
(18,235 |
) |
|
|
(12,153 |
) |
|
|
(30,388 |
) |
Balance, end of
period |
$ |
16,885,192 |
|
|
$ |
16,455,285 |
|
|
$ |
16,885,192 |
|
|
|
|
|
|
|
Weighted average rate
on new production (2) |
|
5.00 |
% |
|
|
5.36 |
% |
|
|
5.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes direct financing leases but excludes equipment leased to
others under operating leases. |
(2) The
weighted average rate on new production presents contractual rates
and does not include |
amortized fees. Amortized fees added approximately 31
basis points to loan yields in 2018. |
|
The following table presents the composition of loans and
leases held for investment, net of deferred fees, as of the dates
indicated:
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
Loan and Lease
Portfolio |
2018 |
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Real estate
mortgage: |
|
|
|
|
|
|
|
Commercial |
$ |
5,010,680 |
|
$ |
5,033,006 |
|
$ |
5,385,740 |
|
$ |
4,418,463 |
Residential |
|
2,555,695 |
|
|
2,521,237 |
|
|
2,466,894 |
|
|
1,719,269 |
Total
real estate mortgage |
|
7,566,375 |
|
|
7,554,243 |
|
|
7,852,634 |
|
|
6,137,732 |
Real estate
construction and land: |
|
|
|
|
|
|
|
Commercial |
|
831,462 |
|
|
789,892 |
|
|
769,075 |
|
|
691,828 |
Residential |
|
1,042,564 |
|
|
887,110 |
|
|
822,154 |
|
|
473,282 |
Total
real estate construction and land |
|
1,874,026 |
|
|
1,677,002 |
|
|
1,591,229 |
|
|
1,165,110 |
Total
real estate |
|
9,440,401 |
|
|
9,231,245 |
|
|
9,443,863 |
|
|
7,302,842 |
Commercial: |
|
|
|
|
|
|
|
Asset-based |
|
3,184,300 |
|
|
2,957,890 |
|
|
2,924,950 |
|
|
2,655,762 |
Venture
capital |
|
2,008,205 |
|
|
1,920,643 |
|
|
2,122,735 |
|
|
2,001,427 |
Other
commercial |
|
1,873,607 |
|
|
1,947,590 |
|
|
2,071,394 |
|
|
3,184,957 |
Total
commercial |
|
7,066,112 |
|
|
6,826,123 |
|
|
7,119,079 |
|
|
7,842,146 |
Consumer |
|
378,679 |
|
|
397,917 |
|
|
409,801 |
|
|
398,469 |
Total
loans and leases held for |
|
|
|
|
|
|
|
investment, net of deferred fees (1) |
$ |
16,885,192 |
|
$ |
16,455,285 |
|
$ |
16,972,743 |
|
$ |
15,543,457 |
|
|
|
|
|
|
|
|
Total unfunded loan
commitments |
$ |
6,429,587 |
|
$ |
6,352,803 |
|
$ |
6,234,061 |
|
$ |
4,926,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes loans held for sale carried at lower of cost or fair value
at December 31, 2017 and June 30, 2017. |
|
Allowance for Credit Losses
The following tables show roll forwards of the allowance for
credit losses for the periods indicated:
|
|
|
|
|
|
|
Three Months Ended June 30, 2018 |
|
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 |
$ |
134,275 |
|
|
$ |
32,861 |
|
$ |
167,136 |
|
Charge-offs |
|
(18,235 |
) |
|
|
- |
|
|
(18,235 |
) |
Recoveries |
|
1,099 |
|
|
|
- |
|
|
1,099 |
|
Net
charge-offs |
|
(17,136 |
) |
|
|
- |
|
|
(17,136 |
) |
Provision |
|
15,000 |
|
|
|
2,500 |
|
|
17,500 |
|
Ending balance |
$ |
132,139 |
|
|
$ |
35,361 |
|
$ |
167,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2018 |
|
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 |
$ |
139,456 |
|
|
$ |
28,635 |
|
$ |
168,091 |
|
Charge-offs |
|
(12,153 |
) |
|
|
- |
|
|
(12,153 |
) |
Recoveries |
|
7,198 |
|
|
|
- |
|
|
7,198 |
|
Net
charge-offs |
|
(4,955 |
) |
|
|
- |
|
|
(4,955 |
) |
Provision |
|
(226 |
) |
|
|
4,226 |
|
|
4,000 |
|
Ending balance |
$ |
134,275 |
|
|
$ |
32,861 |
|
$ |
167,136 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross charge-offs for the second quarter of 2018 were $18.2
million and included $6.1 million for venture capital loans, $4.7
million for real estate mortgage loans, $4.4 million for other
commercial loans and $2.9 million for asset-based loans. Gross
charge-offs for the first quarter of 2018 were $12.2 million and
included $6.8 million for other commercial loans, $2.6 million for
real estate mortgage loans, and $2.3 million for venture capital
loans. Four loans accounted for $14.2 million or 78 percent
of the gross charge-offs in the second quarter of 2018. Recoveries
in the second quarter of 2018 were $1.1 million and included $0.8
million for other commercial loans. Recoveries for the first
quarter of 2018 were $7.2 million and included $4.6 million for
venture capital loans.
The annualized ratio of net charge-offs to average loans was
0.41% for the second quarter of 2018 and 0.12% for the first
quarter of 2018.
Deposits and Client Investment Funds
The following table presents the composition of our deposit
portfolio as of the dates indicated:
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
Deposit
Category |
2018 |
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Noninterest-bearing
demand deposits |
$ |
8,126,153 |
|
|
$ |
8,232,140 |
|
|
$ |
8,508,044 |
|
|
$ |
6,701,039 |
|
Interest checking
deposits |
|
2,184,785 |
|
|
|
2,076,152 |
|
|
|
2,226,885 |
|
|
|
1,762,016 |
|
Money market
deposits |
|
4,631,658 |
|
|
|
4,676,734 |
|
|
|
4,511,730 |
|
|
|
4,033,471 |
|
Savings deposits |
|
643,642 |
|
|
|
676,503 |
|
|
|
690,353 |
|
|
|
721,048 |
|
Total
core deposits |
|
15,586,238 |
|
|
|
15,661,529 |
|
|
|
15,937,012 |
|
|
|
13,217,574 |
|
Non-core non-maturity
deposits |
|
607,388 |
|
|
|
585,399 |
|
|
|
863,202 |
|
|
|
1,329,324 |
|
Total
non-maturity deposits |
|
16,193,626 |
|
|
|
16,246,928 |
|
|
|
16,800,214 |
|
|
|
14,546,898 |
|
Time deposits $250,000
and under |
|
1,394,117 |
|
|
|
1,482,118 |
|
|
|
1,709,980 |
|
|
|
1,940,872 |
|
Time deposits over
$250,000 |
|
341,449 |
|
|
|
349,742 |
|
|
|
355,342 |
|
|
|
387,207 |
|
Total
time deposits |
|
1,735,566 |
|
|
|
1,831,860 |
|
|
|
2,065,322 |
|
|
|
2,328,079 |
|
Total
deposits |
$ |
17,929,192 |
|
|
$ |
18,078,788 |
|
|
$ |
18,865,536 |
|
|
$ |
16,874,977 |
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits |
|
|
|
|
|
|
|
as
percentage of total deposits |
|
45 |
% |
|
|
46 |
% |
|
|
45 |
% |
|
|
40 |
% |
Core deposits as
percentage of total deposits |
|
87 |
% |
|
|
87 |
% |
|
|
85 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30, 2018, core deposits totaled $15.6 billion, or 87% of
total deposits, including $8.1 billion of noninterest-bearing
demand deposits, or 45% of total deposits.
In addition to deposit products, we also offer alternative
non-depository cash investment options for select clients; these
alternatives include investments managed by Square 1 Asset
Management, Inc. (“S1AM”), our registered investment advisor
subsidiary, and third-party sweep products. Total off-balance
sheet client investment funds at June 30, 2018 were $2.5 billion,
of which $1.7 billion was managed by S1AM.
CREDIT QUALITY
The following table presents loan and lease credit quality
metrics as of the dates indicated:
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
Increase |
Credit Quality
Metrics |
2018 |
|
2018 |
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Nonaccrual loans and
leases held for investment (1) |
$ |
113,745 |
|
|
$ |
103,725 |
|
|
$ |
10,020 |
|
Accruing loan
contractually past due |
|
|
|
|
|
90 days
or more |
|
- |
|
|
|
500 |
|
|
|
(500 |
) |
Foreclosed assets,
net |
|
2,231 |
|
|
|
1,236 |
|
|
|
995 |
|
Total
nonperforming assets |
$ |
115,976 |
|
|
$ |
105,461 |
|
|
$ |
10,515 |
|
|
|
|
|
|
|
Nonaccrual loans and
leases held for investment (1) |
$ |
113,745 |
|
|
$ |
103,725 |
|
|
$ |
10,020 |
|
Performing troubled
debt restructured loans |
|
|
|
|
|
held for
investment |
|
58,148 |
|
|
|
60,173 |
|
|
|
(2,025 |
) |
Total
impaired loans and leases |
$ |
171,893 |
|
|
$ |
163,898 |
|
|
$ |
7,995 |
|
|
|
|
|
|
|
Pass |
$ |
16,142,052 |
|
|
$ |
15,832,127 |
|
|
$ |
309,925 |
|
Special mention |
|
506,848 |
|
|
|
415,116 |
|
|
|
91,732 |
|
Classified |
|
236,292 |
|
|
|
208,042 |
|
|
|
28,250 |
|
Total
loans and leases held for investment, |
|
|
|
|
|
net of
deferred fees |
$ |
16,885,192 |
|
|
$ |
16,455,285 |
|
|
$ |
429,907 |
|
|
|
|
|
|
|
Allowance for credit
losses |
$ |
167,500 |
|
|
$ |
167,136 |
|
|
$ |
364 |
|
Provision for credit
losses (for the quarter) |
$ |
17,500 |
|
|
$ |
4,000 |
|
|
$ |
13,500 |
|
Net charge-offs (for
the quarter) |
$ |
17,136 |
|
|
$ |
4,955 |
|
|
$ |
12,181 |
|
Net charge-offs to
average loans and leases |
|
|
|
|
|
(for the
quarter) |
|
0.41 |
% |
|
|
0.12 |
% |
|
|
Allowance for credit
losses to loans and leases |
|
|
|
|
|
held for
investment |
|
0.99 |
% |
|
|
1.02 |
% |
|
|
Allowance for credit
losses to nonaccrual loans |
|
|
|
|
|
and
leases held for investment |
|
147.3 |
% |
|
|
161.1 |
% |
|
|
Nonaccrual loans and
leases held for investment |
|
|
|
|
|
to loans
and leases held for investment |
|
0.67 |
% |
|
|
0.63 |
% |
|
|
Nonperforming assets to
loans and leases |
|
|
|
|
|
held for
investment and foreclosed assets |
|
0.69 |
% |
|
|
0.64 |
% |
|
|
Classified loans and
leases held for investment |
|
|
|
|
|
to loans
and leases held for investment |
|
1.40 |
% |
|
|
1.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Nonaccrual loans include guaranteed amounts of $13.5 million and
$13.4 million at June 30, 2018 |
and March 31, 2018. |
|
Nonaccrual loans and leases increased by $10.0 million in the
second quarter primarily due to a $14.0 million increase in
nonaccrual commercial real estate loans and a $10.5 million
increase in nonaccrual residential construction loans, partially
offset by a $15.7 million decrease in nonaccrual other commercial
loans. Classified loans and leases increased by $28.3 million in
the second quarter primarily due to a $26.4 million increase in
classified commercial real estate loans, a $22.9 million increase
in classified venture capital loans, and a $10.5 million increase
in classified residential construction loans, partially offset by a
$16.0 million decrease in classified other commercial loans and a
$14.5 million decrease in classified asset-based loans.
The following table presents 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:
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual Loans and Leases |
|
Accruing and |
|
June 30, 2018 |
|
March 31, 2018 |
|
30-89 Days Past Due |
|
|
% of |
|
|
% of |
|
June 30, |
|
March 31, |
|
|
Loan |
|
|
Loan |
|
2018 |
|
2018 |
|
Amount |
Category |
|
Amount |
Category |
|
Amount |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Real estate
mortgage: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
33,105 |
0.7 |
% |
|
$ |
19,116 |
0.4 |
% |
|
$ |
2,620 |
|
$ |
23,505 |
Residential |
|
3,527 |
0.1 |
% |
|
|
5,225 |
0.2 |
% |
|
|
2,983 |
|
|
708 |
Total
real estate mortgage |
|
36,632 |
0.5 |
% |
|
|
24,341 |
0.3 |
% |
|
|
5,603 |
|
|
24,213 |
Real estate
construction and land: |
|
|
|
|
|
|
|
|
|
Commercial |
|
- |
0.0 |
% |
|
|
- |
0.0 |
% |
|
|
- |
|
|
- |
Residential |
|
10,450 |
1.0 |
% |
|
|
- |
0.0 |
% |
|
|
5,969 |
|
|
2,605 |
Total
real estate |
|
|
|
|
|
|
|
|
|
construction and land |
|
10,450 |
0.6 |
% |
|
|
- |
0.0 |
% |
|
|
5,969 |
|
|
2,605 |
Commercial: |
|
|
|
|
|
|
|
|
|
Asset-based |
|
29,677 |
0.9 |
% |
|
|
32,838 |
1.1 |
% |
|
|
- |
|
|
- |
Venture
capital |
|
27,940 |
1.4 |
% |
|
|
21,861 |
1.1 |
% |
|
|
- |
|
|
- |
Other
commercial |
|
8,782 |
0.5 |
% |
|
|
24,434 |
1.3 |
% |
|
|
230 |
|
|
663 |
Total
commercial |
|
66,399 |
0.9 |
% |
|
|
79,133 |
1.2 |
% |
|
|
230 |
|
|
663 |
Consumer |
|
264 |
0.1 |
% |
|
|
251 |
0.1 |
% |
|
|
75 |
|
|
1,000 |
Total
held for investment |
$ |
113,745 |
0.7 |
% |
|
$ |
103,725 |
0.6 |
% |
|
$ |
11,877 |
|
$ |
28,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCK REPURCHASE PROGRAM
During the second quarter of 2018, we repurchased 2,286,881
shares at an average price of $53.36 and a total cost of $122.0
million. At June 30, 2018, the remaining amount that could be
used to repurchase shares under the $350 million Stock Repurchase
Program was $174.7 million.
ABOUT PACWEST BANCORP
PacWest Bancorp (“PacWest”) is a bank holding company with over
$24 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
business groups. National Lending provides asset-based, equipment,
real estate and security 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.pacificwesternbank.com.
FORWARD LOOKING STATEMENTS
This communication contains forward-looking statements within
the meaning of 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 as our future effective tax rate. 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 |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
2018 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
ASSETS: |
|
|
|
|
|
Cash and due from
banks |
$ |
245,998 |
|
|
$ |
235,061 |
|
|
$ |
233,215 |
|
Interest-earning
deposits in financial institutions |
|
205,567 |
|
|
|
312,735 |
|
|
|
165,222 |
|
Total cash and cash equivalents |
|
451,565 |
|
|
|
547,796 |
|
|
|
398,437 |
|
|
|
|
|
|
|
Securities
available-for-sale, at estimated fair value |
|
3,857,788 |
|
|
|
3,801,986 |
|
|
|
3,774,431 |
|
Federal Home Loan Bank
stock, at cost |
|
26,271 |
|
|
|
17,250 |
|
|
|
20,790 |
|
Total investment securities |
|
3,884,059 |
|
|
|
3,819,236 |
|
|
|
3,795,221 |
|
|
|
|
|
|
|
Loans held for
sale |
|
- |
|
|
|
- |
|
|
|
481,100 |
|
|
|
|
|
|
|
Gross loans and leases
held for investment |
|
16,947,502 |
|
|
|
16,516,627 |
|
|
|
17,032,221 |
|
Deferred fees, net |
|
(62,310 |
) |
|
|
(61,342 |
) |
|
|
(59,478 |
) |
Loans and
leases held for investment, |
|
|
|
|
|
net of
deferred fees |
|
16,885,192 |
|
|
|
16,455,285 |
|
|
|
16,972,743 |
|
Allowance for loan and
lease losses |
|
(132,139 |
) |
|
|
(134,275 |
) |
|
|
(139,456 |
) |
Total loans and leases held for investment,
net |
|
16,753,053 |
|
|
|
16,321,010 |
|
|
|
16,833,287 |
|
|
|
|
|
|
|
Equipment leased to
others under operating leases |
|
266,576 |
|
|
|
280,648 |
|
|
|
284,631 |
|
Premises and equipment,
net |
|
34,513 |
|
|
|
33,686 |
|
|
|
31,852 |
|
Foreclosed assets,
net |
|
2,231 |
|
|
|
1,236 |
|
|
|
1,329 |
|
Deferred tax asset,
net |
|
25,551 |
|
|
|
12,584 |
|
|
|
- |
|
Goodwill |
|
2,548,670 |
|
|
|
2,548,670 |
|
|
|
2,548,670 |
|
Core deposit and
customer relationship intangibles, net |
|
67,693 |
|
|
|
73,280 |
|
|
|
79,626 |
|
Other assets |
|
495,646 |
|
|
|
511,184 |
|
|
|
540,723 |
|
Total assets |
$ |
24,529,557 |
|
|
$ |
24,149,330 |
|
|
$ |
24,994,876 |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
8,126,153 |
|
|
$ |
8,232,140 |
|
|
$ |
8,508,044 |
|
Interest-bearing
deposits |
|
9,803,039 |
|
|
|
9,846,648 |
|
|
|
10,357,492 |
|
Total deposits |
|
17,929,192 |
|
|
|
18,078,788 |
|
|
|
18,865,536 |
|
Borrowings |
|
1,187,226 |
|
|
|
575,284 |
|
|
|
467,342 |
|
Subordinated
debentures |
|
451,878 |
|
|
|
452,223 |
|
|
|
462,437 |
|
Accrued interest
payable and other liabilities |
|
183,302 |
|
|
|
175,545 |
|
|
|
221,963 |
|
Total liabilities |
|
19,751,598 |
|
|
|
19,281,840 |
|
|
|
20,017,278 |
|
STOCKHOLDERS'
EQUITY (1) |
|
4,777,959 |
|
|
|
4,867,490 |
|
|
|
4,977,598 |
|
Total liabilities and stockholders’ equity |
$ |
24,529,557 |
|
|
$ |
24,149,330 |
|
|
$ |
24,994,876 |
|
|
|
|
|
|
|
Book value per
share |
$ |
38.36 |
|
|
$ |
38.47 |
|
|
$ |
38.65 |
|
Tangible book value per
share (2) |
$ |
17.35 |
|
|
$ |
17.75 |
|
|
$ |
18.24 |
|
Shares outstanding |
|
124,567,950 |
|
|
|
126,537,871 |
|
|
|
128,782,878 |
|
|
|
|
|
|
|
(1) Includes net
unrealized (loss) gain on securities |
|
|
|
|
|
available-for-sale, net |
$ |
(22,340 |
) |
|
$ |
(11,936 |
) |
|
$ |
31,171 |
|
(2) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
|
|
|
|
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
260,300 |
|
|
$ |
251,085 |
|
|
$ |
234,618 |
|
|
$ |
511,385 |
|
|
$ |
458,796 |
|
Investment
securities |
|
27,730 |
|
|
|
26,138 |
|
|
|
24,689 |
|
|
|
53,868 |
|
|
|
47,728 |
|
Deposits in financial
institutions |
|
484 |
|
|
|
552 |
|
|
|
237 |
|
|
|
1,036 |
|
|
|
429 |
|
Total interest income |
|
288,514 |
|
|
|
277,775 |
|
|
|
259,544 |
|
|
|
566,289 |
|
|
|
506,953 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
16,367 |
|
|
|
13,818 |
|
|
|
10,205 |
|
|
|
30,185 |
|
|
|
18,582 |
|
Borrowings |
|
2,649 |
|
|
|
920 |
|
|
|
1,066 |
|
|
|
3,569 |
|
|
|
2,084 |
|
Subordinated
debentures |
|
7,166 |
|
|
|
6,537 |
|
|
|
5,800 |
|
|
|
13,703 |
|
|
|
11,362 |
|
Total interest expense |
|
26,182 |
|
|
|
21,275 |
|
|
|
17,071 |
|
|
|
47,457 |
|
|
|
32,028 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
262,332 |
|
|
|
256,500 |
|
|
|
242,473 |
|
|
|
518,832 |
|
|
|
474,925 |
|
Provision for credit
losses |
|
17,500 |
|
|
|
4,000 |
|
|
|
11,499 |
|
|
|
21,500 |
|
|
|
36,227 |
|
Net interest income after provision |
|
|
|
|
|
|
|
|
|
for credit losses |
|
244,832 |
|
|
|
252,500 |
|
|
|
230,974 |
|
|
|
497,332 |
|
|
|
438,698 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
4,265 |
|
|
|
4,174 |
|
|
|
3,510 |
|
|
|
8,439 |
|
|
|
7,268 |
|
Other commissions and
fees |
|
11,767 |
|
|
|
10,265 |
|
|
|
10,583 |
|
|
|
22,032 |
|
|
|
20,973 |
|
Leased equipment
income |
|
9,790 |
|
|
|
9,587 |
|
|
|
11,635 |
|
|
|
19,377 |
|
|
|
21,110 |
|
Gain on sale of loans
and leases |
|
106 |
|
|
|
4,569 |
|
|
|
649 |
|
|
|
4,675 |
|
|
|
1,361 |
|
Gain on sale of
securities |
|
253 |
|
|
|
6,311 |
|
|
|
1,651 |
|
|
|
6,564 |
|
|
|
1,552 |
|
Other income |
|
13,457 |
|
|
|
3,653 |
|
|
|
7,254 |
|
|
|
17,110 |
|
|
|
18,132 |
|
Total noninterest income |
|
39,638 |
|
|
|
38,559 |
|
|
|
35,282 |
|
|
|
78,197 |
|
|
|
70,396 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Compensation |
|
69,913 |
|
|
|
71,023 |
|
|
|
65,288 |
|
|
|
140,936 |
|
|
|
130,168 |
|
Occupancy |
|
13,575 |
|
|
|
13,223 |
|
|
|
11,811 |
|
|
|
26,798 |
|
|
|
23,419 |
|
Data processing |
|
6,896 |
|
|
|
6,659 |
|
|
|
6,337 |
|
|
|
13,555 |
|
|
|
13,352 |
|
Other professional
services |
|
5,257 |
|
|
|
4,439 |
|
|
|
3,976 |
|
|
|
9,696 |
|
|
|
7,354 |
|
Insurance and
assessments |
|
5,330 |
|
|
|
5,727 |
|
|
|
4,856 |
|
|
|
11,057 |
|
|
|
9,647 |
|
Intangible asset
amortization |
|
5,587 |
|
|
|
6,346 |
|
|
|
3,065 |
|
|
|
11,933 |
|
|
|
6,129 |
|
Leased equipment
depreciation |
|
5,237 |
|
|
|
5,375 |
|
|
|
5,232 |
|
|
|
10,612 |
|
|
|
10,857 |
|
Foreclosed assets
income, net |
|
(61 |
) |
|
|
(122 |
) |
|
|
(157 |
) |
|
|
(183 |
) |
|
|
(14 |
) |
Acquisition,
integration and |
|
|
|
|
|
|
|
|
|
reorganization costs |
|
- |
|
|
|
- |
|
|
|
1,700 |
|
|
|
- |
|
|
|
2,200 |
|
Loan expense |
|
3,058 |
|
|
|
2,271 |
|
|
|
3,884 |
|
|
|
5,329 |
|
|
|
7,271 |
|
Other expense |
|
11,657 |
|
|
|
12,454 |
|
|
|
11,715 |
|
|
|
24,111 |
|
|
|
23,868 |
|
Total noninterest expense |
|
126,449 |
|
|
|
127,395 |
|
|
|
117,707 |
|
|
|
253,844 |
|
|
|
234,251 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes |
|
158,021 |
|
|
|
163,664 |
|
|
|
148,549 |
|
|
|
321,685 |
|
|
|
274,843 |
|
Income tax expense |
|
(42,286 |
) |
|
|
(45,388 |
) |
|
|
(54,902 |
) |
|
|
(87,674 |
) |
|
|
(102,528 |
) |
Net earnings |
$ |
115,735 |
|
|
$ |
118,276 |
|
|
$ |
93,647 |
|
|
$ |
234,011 |
|
|
$ |
172,315 |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share |
$ |
0.92 |
|
|
$ |
0.93 |
|
|
$ |
0.77 |
|
|
$ |
1.85 |
|
|
$ |
1.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
NET
EARNINGS PER SHARE CALCULATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
Basic Earnings
Per Share: |
|
|
|
|
|
|
|
|
|
Net
earnings |
$ |
115,735 |
|
|
$ |
118,276 |
|
|
$ |
93,647 |
|
|
$ |
234,011 |
|
|
$ |
172,315 |
|
Less:
earnings allocated to unvested |
|
|
|
|
|
|
|
|
|
restricted stock (1) |
|
(1,348 |
) |
|
|
(1,115 |
) |
|
|
(1,080 |
) |
|
|
(2,469 |
) |
|
|
(2,082 |
) |
Net
earnings allocated to common |
|
|
|
|
|
|
|
|
|
shares |
$ |
114,387 |
|
|
$ |
117,161 |
|
|
$ |
92,567 |
|
|
$ |
231,542 |
|
|
$ |
170,233 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average basic shares and |
|
|
|
|
|
|
|
|
|
unvested
restricted stock outstanding |
|
126,082 |
|
|
|
127,487 |
|
|
|
121,422 |
|
|
|
126,780 |
|
|
|
121,384 |
|
Less:
weighted-average unvested |
|
|
|
|
|
|
|
|
|
restricted stock outstanding |
|
(1,466 |
) |
|
|
(1,413 |
) |
|
|
(1,455 |
) |
|
|
(1,439 |
) |
|
|
(1,479 |
) |
Weighted-average basic shares |
|
|
|
|
|
|
|
|
|
outstanding |
|
124,616 |
|
|
|
126,074 |
|
|
|
119,967 |
|
|
|
125,341 |
|
|
|
119,905 |
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.92 |
|
|
$ |
0.93 |
|
|
$ |
0.77 |
|
|
$ |
1.85 |
|
|
$ |
1.42 |
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share: |
|
|
|
|
|
|
|
|
|
Net
earnings allocated to common |
|
|
|
|
|
|
|
|
|
shares |
$ |
114,387 |
|
|
$ |
117,161 |
|
|
$ |
92,567 |
|
|
$ |
231,542 |
|
|
$ |
170,233 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average basic shares |
|
|
|
|
|
|
|
|
|
outstanding |
|
124,616 |
|
|
|
126,074 |
|
|
|
119,967 |
|
|
|
125,341 |
|
|
|
119,905 |
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
0.92 |
|
|
$ |
0.93 |
|
|
$ |
0.77 |
|
|
$ |
1.85 |
|
|
$ |
1.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
|
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) |
$ |
16,576,361 |
$ |
260,529 |
6.30 |
% |
|
$ |
16,682,124 |
$ |
251,260 |
6.11 |
% |
|
$ |
15,497,921 |
$ |
234,618 |
6.07 |
% |
Investment securities
(3) |
|
3,803,590 |
|
29,967 |
3.16 |
% |
|
|
3,682,138 |
|
27,935 |
3.08 |
% |
|
|
3,436,785 |
|
29,538 |
3.45 |
% |
Deposits in
financial |
|
|
|
|
|
|
|
|
|
|
|
institutions |
|
112,170 |
|
484 |
1.73 |
% |
|
|
150,674 |
|
552 |
1.49 |
% |
|
|
96,087 |
|
237 |
0.99 |
% |
Total interest-earning |
|
|
|
|
|
|
|
|
|
|
assets
(4) |
|
20,492,121 |
|
290,980 |
5.70 |
% |
|
|
20,514,936 |
|
279,747 |
5.53 |
% |
|
|
19,030,793 |
|
264,393 |
5.57 |
% |
Other assets |
|
3,507,516 |
|
|
|
|
3,556,212 |
|
|
|
|
2,905,809 |
|
|
Total
assets |
$ |
23,999,637 |
|
|
|
$ |
24,071,148 |
|
|
|
$ |
21,936,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
Interest checking |
$ |
2,243,767 |
|
3,932 |
0.70 |
% |
|
$ |
2,311,988 |
|
3,050 |
0.54 |
% |
|
$ |
1,709,699 |
|
1,697 |
0.40 |
% |
Money market |
|
5,013,119 |
|
8,072 |
0.65 |
% |
|
|
5,038,119 |
|
6,812 |
0.55 |
% |
|
|
4,907,865 |
|
4,993 |
0.41 |
% |
Savings |
|
656,310 |
|
245 |
0.15 |
% |
|
|
685,173 |
|
258 |
0.15 |
% |
|
|
708,389 |
|
296 |
0.17 |
% |
Time |
|
1,790,415 |
|
4,118 |
0.92 |
% |
|
|
1,923,963 |
|
3,698 |
0.78 |
% |
|
|
2,366,399 |
|
3,219 |
0.55 |
% |
Total interest-bearing |
|
|
|
|
|
|
|
|
|
|
deposits |
|
9,703,611 |
|
16,367 |
0.68 |
% |
|
|
9,959,243 |
|
13,818 |
0.56 |
% |
|
|
9,692,352 |
|
10,205 |
0.42 |
% |
Borrowings |
|
549,665 |
|
2,649 |
1.93 |
% |
|
|
239,293 |
|
920 |
1.56 |
% |
|
|
457,774 |
|
1,066 |
0.93 |
% |
Subordinated
debentures |
|
451,973 |
|
7,166 |
6.36 |
% |
|
|
461,648 |
|
6,537 |
5.74 |
% |
|
|
443,756 |
|
5,800 |
5.24 |
% |
Total interest-bearing |
|
|
|
|
|
|
|
|
|
|
liabilities |
|
10,705,249 |
|
26,182 |
0.98 |
% |
|
|
10,660,184 |
|
21,275 |
0.81 |
% |
|
|
10,593,882 |
|
17,071 |
0.65 |
% |
Noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
demand
deposits |
|
8,253,413 |
|
|
|
|
8,311,104 |
|
|
|
|
6,646,349 |
|
|
Other liabilities |
|
208,495 |
|
|
|
|
198,653 |
|
|
|
|
151,095 |
|
|
Total
liabilities |
|
19,167,157 |
|
|
|
|
19,169,941 |
|
|
|
|
17,391,326 |
|
|
Stockholders'
equity |
|
4,832,480 |
|
|
|
|
4,901,207 |
|
|
|
|
4,545,276 |
|
|
Total
liabilities and |
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity |
$ |
23,999,637 |
|
|
|
$ |
24,071,148 |
|
|
|
$ |
21,936,602 |
|
|
Net interest income
(4) |
|
$ |
264,798 |
|
|
|
$ |
258,472 |
|
|
|
$ |
247,322 |
|
Net interest spread
(4) |
|
|
4.72 |
% |
|
|
|
4.72 |
% |
|
|
|
4.92 |
% |
Net interest margin
(4) |
|
|
5.18 |
% |
|
|
|
5.11 |
% |
|
|
|
5.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits (5) |
$ |
17,957,024 |
$ |
16,367 |
0.37 |
% |
|
$ |
18,270,347 |
$ |
13,818 |
0.31 |
% |
|
$ |
16,338,701 |
$ |
10,205 |
0.25 |
% |
Funding sources
(6) |
$ |
18,958,662 |
$ |
26,182 |
0.55 |
% |
|
$ |
18,971,288 |
$ |
21,275 |
0.45 |
% |
|
$ |
17,240,231 |
$ |
17,071 |
0.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Starting with the third quarter of 2017, includes tax-equivalent
adjustments related to tax-exempt interest on loans. |
(2)
Includes discount accretion on acquired loans of $8.7 million, $7.6
million, and $7.5 million for the three months ended June 30,
2018, |
March 31, 2018, and June 30, 2017, respectively. |
(3)
Includes tax-equivalent adjustments of $2.1 million, $1.8 million,
and $4.9 million for the three months ended June 30, 2018, |
March 31, 2018, and June 30, 2017 related to tax-exempt income
on municipal securities. The federal statutory tax-rate
utilized |
was 21% for the 2018 periods and 35% for the 2017 period. |
(4) Tax
equivalent. |
(5) 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 deposits divided by average
total deposits. |
(6)
Funding sources is the sum of total 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
ASSETS: |
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
245,998 |
|
|
$ |
235,061 |
|
|
$ |
233,215 |
|
|
$ |
147,579 |
|
|
$ |
180,330 |
|
Interest-earning
deposits in financial |
|
|
|
|
|
|
|
|
|
institutions |
|
205,567 |
|
|
|
312,735 |
|
|
|
165,222 |
|
|
|
122,439 |
|
|
|
107,150 |
|
Total cash and cash equivalents |
|
451,565 |
|
|
|
547,796 |
|
|
|
398,437 |
|
|
|
270,018 |
|
|
|
287,480 |
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale |
|
3,857,788 |
|
|
|
3,801,986 |
|
|
|
3,774,431 |
|
|
|
3,532,230 |
|
|
|
3,474,560 |
|
Federal Home Loan Bank
stock |
|
26,271 |
|
|
|
17,250 |
|
|
|
20,790 |
|
|
|
17,250 |
|
|
|
22,059 |
|
Total
investment securities |
|
3,884,059 |
|
|
|
3,819,236 |
|
|
|
3,795,221 |
|
|
|
3,549,480 |
|
|
|
3,496,619 |
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale |
|
- |
|
|
|
- |
|
|
|
481,100 |
|
|
|
- |
|
|
|
175,158 |
|
|
|
|
|
|
|
|
|
|
|
Gross loans and leases
held for |
|
|
|
|
|
|
|
|
|
investment |
|
16,947,502 |
|
|
|
16,516,627 |
|
|
|
17,032,221 |
|
|
|
15,756,285 |
|
|
|
15,609,180 |
|
Deferred fees, net |
|
(62,310 |
) |
|
|
(61,342 |
) |
|
|
(59,478 |
) |
|
|
(65,768 |
) |
|
|
(65,723 |
) |
Loans and
leases held for |
|
|
|
|
|
|
|
|
|
investment, net of deferred fees |
|
16,885,192 |
|
|
|
16,455,285 |
|
|
|
16,972,743 |
|
|
|
15,690,517 |
|
|
|
15,543,457 |
|
Allowance for loan and
lease losses |
|
(132,139 |
) |
|
|
(134,275 |
) |
|
|
(139,456 |
) |
|
|
(159,606 |
) |
|
|
(145,958 |
) |
Total loans and leases held for |
|
|
|
|
|
|
|
|
|
investment, net |
|
16,753,053 |
|
|
|
16,321,010 |
|
|
|
16,833,287 |
|
|
|
15,530,911 |
|
|
|
15,397,499 |
|
|
|
|
|
|
|
|
|
|
|
Equipment leased to
others under |
|
|
|
|
|
|
|
|
|
operating
leases |
|
266,576 |
|
|
|
280,648 |
|
|
|
284,631 |
|
|
|
233,866 |
|
|
|
203,212 |
|
Premises and equipment,
net |
|
34,513 |
|
|
|
33,686 |
|
|
|
31,852 |
|
|
|
28,910 |
|
|
|
29,108 |
|
Foreclosed assets,
net |
|
2,231 |
|
|
|
1,236 |
|
|
|
1,329 |
|
|
|
11,630 |
|
|
|
13,278 |
|
Deferred tax asset,
net |
|
25,551 |
|
|
|
12,584 |
|
|
|
- |
|
|
|
65,321 |
|
|
|
70,354 |
|
Goodwill |
|
2,548,670 |
|
|
|
2,548,670 |
|
|
|
2,548,670 |
|
|
|
2,173,949 |
|
|
|
2,173,949 |
|
Core deposit and
customer |
|
|
|
|
|
|
|
|
|
relationship intangibles, net |
|
67,693 |
|
|
|
73,280 |
|
|
|
79,626 |
|
|
|
27,188 |
|
|
|
30,237 |
|
Other assets |
|
495,646 |
|
|
|
511,184 |
|
|
|
540,723 |
|
|
|
351,659 |
|
|
|
369,983 |
|
Total assets |
$ |
24,529,557 |
|
|
$ |
24,149,330 |
|
|
$ |
24,994,876 |
|
|
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
8,126,153 |
|
|
$ |
8,232,140 |
|
|
$ |
8,508,044 |
|
|
$ |
6,911,874 |
|
|
$ |
6,701,039 |
|
Interest-bearing
deposits |
|
9,803,039 |
|
|
|
9,846,648 |
|
|
|
10,357,492 |
|
|
|
9,861,371 |
|
|
|
10,173,938 |
|
Total deposits |
|
17,929,192 |
|
|
|
18,078,788 |
|
|
|
18,865,536 |
|
|
|
16,773,245 |
|
|
|
16,874,977 |
|
Borrowings |
|
1,187,226 |
|
|
|
575,284 |
|
|
|
467,342 |
|
|
|
250,399 |
|
|
|
217,454 |
|
Subordinated
debentures |
|
451,878 |
|
|
|
452,223 |
|
|
|
462,437 |
|
|
|
448,126 |
|
|
|
445,743 |
|
Accrued interest
payable and other |
|
|
|
|
|
|
|
|
|
liabilities |
|
183,302 |
|
|
|
175,545 |
|
|
|
221,963 |
|
|
|
160,494 |
|
|
|
148,798 |
|
Total liabilities |
|
19,751,598 |
|
|
|
19,281,840 |
|
|
|
20,017,278 |
|
|
|
17,632,264 |
|
|
|
17,686,972 |
|
STOCKHOLDERS'
EQUITY (1) |
|
4,777,959 |
|
|
|
4,867,490 |
|
|
|
4,977,598 |
|
|
|
4,610,668 |
|
|
|
4,559,905 |
|
Total liabilities and stockholders’ |
|
|
|
|
|
|
|
|
|
equity |
$ |
24,529,557 |
|
|
$ |
24,149,330 |
|
|
$ |
24,994,876 |
|
|
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
38.36 |
|
|
$ |
38.47 |
|
|
$ |
38.65 |
|
|
$ |
37.96 |
|
|
$ |
37.55 |
|
Tangible book value per
share (2) |
$ |
17.35 |
|
|
$ |
17.75 |
|
|
$ |
18.24 |
|
|
$ |
19.84 |
|
|
$ |
19.40 |
|
Shares outstanding |
|
124,567,950 |
|
|
|
126,537,871 |
|
|
|
128,782,878 |
|
|
|
121,449,794 |
|
|
|
121,448,321 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes net
unrealized (loss) gain on |
|
|
|
|
|
|
|
|
|
securities available-for-sale, net |
$ |
(22,340 |
) |
|
$ |
(11,936 |
) |
|
$ |
31,171 |
|
|
$ |
33,613 |
|
|
$ |
29,729 |
|
(2) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
FIVE QUARTER STATEMENT OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
260,300 |
|
|
$ |
251,085 |
|
|
$ |
258,309 |
|
|
$ |
235,666 |
|
|
$ |
234,618 |
|
Investment
securities |
|
27,730 |
|
|
|
26,138 |
|
|
|
25,712 |
|
|
|
24,762 |
|
|
|
24,689 |
|
Deposits in financial
institutions |
|
484 |
|
|
|
552 |
|
|
|
576 |
|
|
|
538 |
|
|
|
237 |
|
Total interest income |
|
288,514 |
|
|
|
277,775 |
|
|
|
284,597 |
|
|
|
260,966 |
|
|
|
259,544 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
16,367 |
|
|
|
13,818 |
|
|
|
14,041 |
|
|
|
13,071 |
|
|
|
10,205 |
|
Borrowings |
|
2,649 |
|
|
|
920 |
|
|
|
1,366 |
|
|
|
188 |
|
|
|
1,066 |
|
Subordinated
debentures |
|
7,166 |
|
|
|
6,537 |
|
|
|
6,234 |
|
|
|
6,017 |
|
|
|
5,800 |
|
Total interest expense |
|
26,182 |
|
|
|
21,275 |
|
|
|
21,641 |
|
|
|
19,276 |
|
|
|
17,071 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
262,332 |
|
|
|
256,500 |
|
|
|
262,956 |
|
|
|
241,690 |
|
|
|
242,473 |
|
Provision for credit
losses |
|
17,500 |
|
|
|
4,000 |
|
|
|
6,406 |
|
|
|
15,119 |
|
|
|
11,499 |
|
Net interest income after provision |
|
|
|
|
|
|
|
|
|
for credit losses |
|
244,832 |
|
|
|
252,500 |
|
|
|
256,550 |
|
|
|
226,571 |
|
|
|
230,974 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
4,265 |
|
|
|
4,174 |
|
|
|
4,574 |
|
|
|
3,465 |
|
|
|
3,510 |
|
Other commissions and
fees |
|
11,767 |
|
|
|
10,265 |
|
|
|
10,505 |
|
|
|
9,944 |
|
|
|
10,583 |
|
Leased equipment
income |
|
9,790 |
|
|
|
9,587 |
|
|
|
8,258 |
|
|
|
8,332 |
|
|
|
11,635 |
|
Gain on sale of loans
and leases |
|
106 |
|
|
|
4,569 |
|
|
|
1,988 |
|
|
|
2,848 |
|
|
|
649 |
|
Gain (loss) on sale of
securities |
|
253 |
|
|
|
6,311 |
|
|
|
(3,329 |
) |
|
|
1,236 |
|
|
|
1,651 |
|
Other income |
|
13,457 |
|
|
|
3,653 |
|
|
|
4,799 |
|
|
|
5,557 |
|
|
|
7,254 |
|
Total noninterest income |
|
39,638 |
|
|
|
38,559 |
|
|
|
26,795 |
|
|
|
31,382 |
|
|
|
35,282 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
Compensation |
|
69,913 |
|
|
|
71,023 |
|
|
|
71,986 |
|
|
|
64,413 |
|
|
|
65,288 |
|
Occupancy |
|
13,575 |
|
|
|
13,223 |
|
|
|
12,715 |
|
|
|
12,729 |
|
|
|
11,811 |
|
Data processing |
|
6,896 |
|
|
|
6,659 |
|
|
|
6,764 |
|
|
|
6,459 |
|
|
|
6,337 |
|
Other professional
services |
|
5,257 |
|
|
|
4,439 |
|
|
|
5,786 |
|
|
|
4,213 |
|
|
|
3,976 |
|
Insurance and
assessments |
|
5,330 |
|
|
|
5,727 |
|
|
|
5,384 |
|
|
|
4,702 |
|
|
|
4,856 |
|
Intangible asset
amortization |
|
5,587 |
|
|
|
6,346 |
|
|
|
5,062 |
|
|
|
3,049 |
|
|
|
3,065 |
|
Leased equipment
depreciation |
|
5,237 |
|
|
|
5,375 |
|
|
|
5,048 |
|
|
|
4,862 |
|
|
|
5,232 |
|
Foreclosed assets
(income) expense, net |
|
(61 |
) |
|
|
(122 |
) |
|
|
(475 |
) |
|
|
2,191 |
|
|
|
(157 |
) |
Acquisition,
integration and |
|
|
|
|
|
|
|
|
|
reorganization costs |
|
- |
|
|
|
- |
|
|
|
16,085 |
|
|
|
1,450 |
|
|
|
1,700 |
|
Loan expense |
|
3,058 |
|
|
|
2,271 |
|
|
|
3,140 |
|
|
|
3,421 |
|
|
|
3,884 |
|
Other expense |
|
11,657 |
|
|
|
12,454 |
|
|
|
11,373 |
|
|
|
11,053 |
|
|
|
11,715 |
|
Total noninterest expense |
|
126,449 |
|
|
|
127,395 |
|
|
|
142,868 |
|
|
|
118,542 |
|
|
|
117,707 |
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes |
|
158,021 |
|
|
|
163,664 |
|
|
|
140,477 |
|
|
|
139,411 |
|
|
|
148,549 |
|
Income tax expense |
|
(42,286 |
) |
|
|
(45,388 |
) |
|
|
(56,440 |
) |
|
|
(37,945 |
) |
|
|
(54,902 |
) |
Net earnings |
$ |
115,735 |
|
|
$ |
118,276 |
|
|
$ |
84,037 |
|
|
$ |
101,466 |
|
|
$ |
93,647 |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share |
$ |
0.92 |
|
|
$ |
0.93 |
|
|
$ |
0.66 |
|
|
$ |
0.84 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
FIVE QUARTER SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
Return on
average assets (1) |
|
1.93 |
% |
|
|
1.99 |
% |
|
|
1.34 |
% |
|
|
1.82 |
% |
|
|
1.71 |
% |
Return on
average equity (1) |
|
9.61 |
% |
|
|
9.79 |
% |
|
|
6.78 |
% |
|
|
8.77 |
% |
|
|
8.26 |
% |
Return on
average tangible equity (1)(2) |
|
20.98 |
% |
|
|
21.08 |
% |
|
|
13.75 |
% |
|
|
16.85 |
% |
|
|
16.06 |
% |
|
|
|
|
|
|
|
|
|
|
Yield on
average loans and leases (1)(3) |
|
6.30 |
% |
|
|
6.11 |
% |
|
|
5.89 |
% |
|
|
6.01 |
% |
|
|
6.07 |
% |
Yield on
average interest-earning |
|
|
|
|
|
|
|
|
|
assets
(1)(4) |
|
5.70 |
% |
|
|
5.53 |
% |
|
|
5.37 |
% |
|
|
5.48 |
% |
|
|
5.57 |
% |
Cost of
average total deposits (1) |
|
0.37 |
% |
|
|
0.31 |
% |
|
|
0.30 |
% |
|
|
0.31 |
% |
|
|
0.25 |
% |
Cost of
average time deposits (1) |
|
0.92 |
% |
|
|
0.78 |
% |
|
|
0.68 |
% |
|
|
0.62 |
% |
|
|
0.55 |
% |
Cost of
average interest-bearing |
|
|
|
|
|
|
|
|
|
liabilities (1) |
|
0.98 |
% |
|
|
0.81 |
% |
|
|
0.75 |
% |
|
|
0.73 |
% |
|
|
0.65 |
% |
Cost of
average funding sources (1) |
|
0.55 |
% |
|
|
0.45 |
% |
|
|
0.44 |
% |
|
|
0.44 |
% |
|
|
0.40 |
% |
Net
interest spread (1)(4) |
|
4.72 |
% |
|
|
4.72 |
% |
|
|
4.62 |
% |
|
|
4.75 |
% |
|
|
4.92 |
% |
Net
interest margin (1)(4) |
|
5.18 |
% |
|
|
5.11 |
% |
|
|
4.97 |
% |
|
|
5.08 |
% |
|
|
5.21 |
% |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
39.8 |
% |
|
|
41.7 |
% |
|
|
41.0 |
% |
|
|
40.4 |
% |
|
|
40.3 |
% |
Noninterest expense as a percentage |
|
|
|
|
|
|
|
|
|
of
average assets (1) |
|
2.11 |
% |
|
|
2.15 |
% |
|
|
2.29 |
% |
|
|
2.12 |
% |
|
|
2.15 |
% |
|
|
|
|
|
|
|
|
|
|
Average
Balances: |
|
|
|
|
|
|
|
|
|
Loans and
leases, net of deferred fees |
$ |
16,576,361 |
|
|
$ |
16,682,124 |
|
|
$ |
17,426,873 |
|
|
$ |
15,575,030 |
|
|
$ |
15,497,921 |
|
Interest-earning assets |
|
20,492,121 |
|
|
|
20,514,936 |
|
|
|
21,414,180 |
|
|
|
19,257,441 |
|
|
|
19,030,793 |
|
Total
assets |
|
23,999,637 |
|
|
|
24,071,148 |
|
|
|
24,789,836 |
|
|
|
22,137,874 |
|
|
|
21,936,602 |
|
Noninterest-bearing deposits |
|
8,253,413 |
|
|
|
8,311,104 |
|
|
|
8,190,134 |
|
|
|
6,858,816 |
|
|
|
6,646,349 |
|
Interest-bearing deposits |
|
9,703,611 |
|
|
|
9,959,243 |
|
|
|
10,578,568 |
|
|
|
10,024,554 |
|
|
|
9,692,352 |
|
Total
deposits |
|
17,957,024 |
|
|
|
18,270,347 |
|
|
|
18,768,702 |
|
|
|
16,883,370 |
|
|
|
16,338,701 |
|
Borrowings and subordinated |
|
|
|
|
|
|
|
|
|
debentures |
|
1,001,638 |
|
|
|
700,941 |
|
|
|
903,375 |
|
|
|
508,083 |
|
|
|
901,530 |
|
Interest-bearing liabilities |
|
10,705,249 |
|
|
|
10,660,184 |
|
|
|
11,481,943 |
|
|
|
10,532,637 |
|
|
|
10,593,882 |
|
Funding
sources |
|
18,958,662 |
|
|
|
18,971,288 |
|
|
|
19,672,077 |
|
|
|
17,391,453 |
|
|
|
17,240,231 |
|
Stockholders' equity |
|
4,832,480 |
|
|
|
4,901,207 |
|
|
|
4,920,498 |
|
|
|
4,592,489 |
|
|
|
4,545,276 |
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized. |
|
|
|
|
|
|
|
|
|
(2) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
(3) Tax
equivalent starting with the third quarter of 2017. |
|
|
|
|
|
|
|
|
(4) Tax
equivalent. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
FIVE QUARTER SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Credit Quality
Ratios (1): |
|
|
|
|
|
|
|
|
|
Allowance
for credit losses to loans |
|
|
|
|
|
|
|
|
|
and
leases held for investment |
|
0.99 |
% |
|
|
1.02 |
% |
|
|
0.96 |
% |
|
|
1.11 |
% |
|
|
1.03 |
% |
Allowance
for credit losses to |
|
|
|
|
|
|
|
|
|
nonaccrual loans and leases held |
|
|
|
|
|
|
|
|
|
for
investment |
|
147.3 |
% |
|
|
161.1 |
% |
|
|
103.8 |
% |
|
|
110.1 |
% |
|
|
92.2 |
% |
Nonaccrual loans and leases held for |
|
|
|
|
|
|
|
|
|
investment to loans and leases held |
|
|
|
|
|
|
|
|
|
for
investment |
|
0.67 |
% |
|
|
0.63 |
% |
|
|
0.92 |
% |
|
|
1.01 |
% |
|
|
1.12 |
% |
Nonperforming assets to loans and |
|
|
|
|
|
|
|
|
|
leases
held for investment and |
|
|
|
|
|
|
|
|
|
foreclosed assets |
|
0.69 |
% |
|
|
0.64 |
% |
|
|
0.93 |
% |
|
|
1.08 |
% |
|
|
1.20 |
% |
Nonperforming assets to total assets |
|
0.47 |
% |
|
|
0.44 |
% |
|
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.84 |
% |
Trailing
12 months net charge-offs |
|
|
|
|
|
|
|
|
|
to
average loans and leases |
|
|
|
|
|
|
|
|
|
held for
investment |
|
0.28 |
% |
|
|
0.31 |
% |
|
|
0.40 |
% |
|
|
0.35 |
% |
|
|
0.37 |
% |
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp
Consolidated |
|
|
|
|
|
|
|
|
|
Capital: |
|
|
|
|
|
|
|
|
|
Tier 1
leverage ratio (2) |
|
10.33 |
% |
|
|
10.66 |
% |
|
|
10.66 |
% |
|
|
12.02 |
% |
|
|
11.90 |
% |
Common
equity tier 1 capital ratio (2) |
|
10.61 |
% |
|
|
11.16 |
% |
|
|
10.91 |
% |
|
|
12.52 |
% |
|
|
12.28 |
% |
Tier 1
capital ratio (2) |
|
10.61 |
% |
|
|
11.16 |
% |
|
|
10.91 |
% |
|
|
12.52 |
% |
|
|
12.28 |
% |
Total
capital ratio (2) |
|
13.51 |
% |
|
|
14.11 |
% |
|
|
13.75 |
% |
|
|
15.74 |
% |
|
|
15.42 |
% |
Risk-weighted assets (2) |
$ |
20,887,678 |
|
|
$ |
20,523,487 |
|
|
$ |
21,657,591 |
|
|
$ |
19,086,798 |
|
|
$ |
19,084,823 |
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets ratio |
|
19.48 |
% |
|
|
20.16 |
% |
|
|
19.91 |
% |
|
|
20.73 |
% |
|
|
20.50 |
% |
Tangible
common equity ratio (3) |
|
9.86 |
% |
|
|
10.43 |
% |
|
|
10.50 |
% |
|
|
12.02 |
% |
|
|
11.75 |
% |
Book
value per share |
$ |
38.36 |
|
|
$ |
38.47 |
|
|
$ |
38.65 |
|
|
$ |
37.96 |
|
|
$ |
37.55 |
|
Tangible
book value per share (3) |
$ |
17.35 |
|
|
$ |
17.75 |
|
|
$ |
18.24 |
|
|
$ |
19.84 |
|
|
$ |
19.40 |
|
|
|
|
|
|
|
|
|
|
|
Pacific Western
Bank Capital: |
|
|
|
|
|
|
|
|
|
Tier 1
leverage ratio (2) |
|
11.11 |
% |
|
|
11.33 |
% |
|
|
11.75 |
% |
|
|
11.46 |
% |
|
|
11.41 |
% |
Common
equity tier 1 capital ratio (2) |
|
11.40 |
% |
|
|
11.86 |
% |
|
|
11.91 |
% |
|
|
11.95 |
% |
|
|
11.79 |
% |
Tier 1
capital ratio (2) |
|
11.40 |
% |
|
|
11.86 |
% |
|
|
11.91 |
% |
|
|
11.95 |
% |
|
|
11.79 |
% |
Total
capital ratio (2) |
|
12.21 |
% |
|
|
12.67 |
% |
|
|
12.69 |
% |
|
|
12.89 |
% |
|
|
12.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratios
related to 2018 periods are for total loans and leases.
Ratios related to 2017 periods are for Non-PCI loans and
leases. |
(2) Capital
information for June 30, 2018 is preliminary. |
|
|
|
|
|
|
|
|
(3) 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 |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
Return on
Average Tangible Equity |
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Net earnings |
$ |
115,735 |
|
|
$ |
118,276 |
|
|
$ |
93,647 |
|
|
$ |
234,011 |
|
|
$ |
172,315 |
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity |
$ |
4,832,480 |
|
|
$ |
4,901,207 |
|
|
$ |
4,545,276 |
|
|
$ |
4,866,654 |
|
|
$ |
4,524,591 |
|
Less: Average
intangible assets |
|
2,619,351 |
|
|
|
2,625,593 |
|
|
|
2,205,814 |
|
|
|
2,622,455 |
|
|
|
2,207,454 |
|
Average tangible common
equity |
$ |
2,213,129 |
|
|
$ |
2,275,614 |
|
|
$ |
2,339,462 |
|
|
$ |
2,244,199 |
|
|
$ |
2,317,137 |
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (1) |
|
9.61 |
% |
|
|
9.79 |
% |
|
|
8.26 |
% |
|
|
9.70 |
% |
|
|
7.68 |
% |
Return on average
tangible equity (2) |
|
20.98 |
% |
|
|
21.08 |
% |
|
|
16.06 |
% |
|
|
21.03 |
% |
|
|
15.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Annualized net earnings divided by average stockholders'
equity. |
|
|
|
|
|
|
(2)
Annualized net earnings divided by average tangible common
equity. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity Ratio/ |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
Tangible Book
Value Per Share |
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
Stockholders'
equity |
$ |
4,777,959 |
|
|
$ |
4,867,490 |
|
|
$ |
4,977,598 |
|
|
$ |
4,610,668 |
|
|
$ |
4,559,905 |
|
Less: Intangible
assets |
|
2,616,363 |
|
|
|
2,621,950 |
|
|
|
2,628,296 |
|
|
|
2,201,137 |
|
|
|
2,204,186 |
|
Tangible
common equity |
$ |
2,161,596 |
|
|
$ |
2,245,540 |
|
|
$ |
2,349,302 |
|
|
$ |
2,409,531 |
|
|
$ |
2,355,719 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
24,529,557 |
|
|
$ |
24,149,330 |
|
|
$ |
24,994,876 |
|
|
$ |
22,242,932 |
|
|
$ |
22,246,877 |
|
Less: Intangible
assets |
|
2,616,363 |
|
|
|
2,621,950 |
|
|
|
2,628,296 |
|
|
|
2,201,137 |
|
|
|
2,204,186 |
|
Tangible
assets |
$ |
21,913,194 |
|
|
$ |
21,527,380 |
|
|
$ |
22,366,580 |
|
|
$ |
20,041,795 |
|
|
$ |
20,042,691 |
|
|
|
|
|
|
|
|
|
|
|
Equity to assets
ratio |
|
19.48 |
% |
|
|
20.16 |
% |
|
|
19.91 |
% |
|
|
20.73 |
% |
|
|
20.50 |
% |
Tangible common equity
ratio (1) |
|
9.86 |
% |
|
|
10.43 |
% |
|
|
10.50 |
% |
|
|
12.02 |
% |
|
|
11.75 |
% |
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
38.36 |
|
|
$ |
38.47 |
|
|
$ |
38.65 |
|
|
$ |
37.96 |
|
|
$ |
37.55 |
|
Tangible book value per
share (2) |
$ |
17.35 |
|
|
$ |
17.75 |
|
|
$ |
18.24 |
|
|
$ |
19.84 |
|
|
$ |
19.40 |
|
Shares outstanding |
|
124,567,950 |
|
|
|
126,537,871 |
|
|
|
128,782,878 |
|
|
|
121,449,794 |
|
|
|
121,448,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
|
Contact: |
Donald D. Destino |
|
|
Executive Vice
President |
|
|
Corporate Development
and Investor Relations |
|
|
Relations |
|
Phone: |
310-887-8521 |
|
PacWest Bancorp (NASDAQ:PACW)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
PacWest Bancorp (NASDAQ:PACW)
Historical Stock Chart
Von Jul 2023 bis Jul 2024