PacWest Bancorp (Nasdaq: PACW) -
FOURTH QUARTER 2021 RESULTS
$136.0M |
$1.14 |
$181.7M |
22.06% |
Net Earnings |
Diluted Earningsper Share |
PPNR |
ROATE |
|
|
|
|
FOURTH QUARTER 2021 HIGHLIGHTS
- Net Earnings of $136.0 Million or $1.14 Per Diluted Share
- Core Deposits Up $4.6 Billion or 16.3% of which $4.1 Billion
Related to the Acquisition of the HOA Business in October;
Represents 93% of Total Deposits
- Loan Growth of $2.4 Billion or 11.8%
- Civic Loan Production of $480 Million in 4Q21, Compared to $481
Million in 3Q21
- PPNR of $181.7 Million, Up 8.3% Compared to 3Q21
- Provision for Credit Losses Benefit of $6.0 Million in 4Q21
Compared to Benefit of $20.0 Million in 3Q21
- Net Interest Income (TE) of $304.5 Million in 4Q21, Compared to
$279.8 Million in 3Q21
- Noninterest Income of $57.4 Million in 4Q21, Compared to $51.3
Million in 3Q21, With Continued Strength in Warrant Income
- Noninterest Expense of $176.1 Million in 4Q21, Up 10.5% From
3Q21, Due Mainly to First Quarter of Operating Expenses Related to
Acquired HOA Business plus Acquisition Costs of $5.6 Million
- Classified and Special Mention Loans Fell $25.5 Million and
$104.8 Million, Respectively, From 3Q21
- ACL Ratio of 1.19% and ALLL Ratio of 0.87%
- Net Charge-offs of $169 Thousand
- Cost of Deposits Remained at 8bps
- Loan and Lease Production of $3.4 Billion, Up From $2.4 Billion
in 3Q21; WAC of 3.89% vs. 4.24% in 3Q21
- Strong Capital Position – CET1 Ratio of 8.86% and Total Capital
Ratio of 12.69% at 4Q21
- Tangible Book Value Per Share Decreased From $22.57 at 3Q21 to
$21.31 at 4Q21 Due Mainly to Cash Used for the HOA Acquisition
FULL YEAR 2021 RESULTS
$607.0M |
$5.10 |
$660.3M |
24.41% |
Net Earnings |
Diluted Earningsper Share |
PPNR |
ROATE |
|
|
|
|
FULL YEAR 2021 HIGHLIGHTS
- Net Earnings of $607.0 Million or $5.10 Per Diluted Share
- Core Deposits Up $10.5 Billion or 47.0% in 2021; Venture
Banking Up $4.5 Billion; HOA Acquisition Added $4.1 Billion
- Loan Growth of $3.9 Billion or 20.2%
- PPNR of $660.3 Million, Up 2.1% Compared to 2020
- Provision for Credit Losses Benefit of $162.0 Million in 2021
Compared to Provision of $339.0 Million in 2020
- Net Interest Income (TE) of $1.1 Billion in 2021, Compared to
$1.0 Billion in 2020
- Classified and Special Mention Loans Fell $149.2 Million and
$329.7 Million, Respectively, From 2020
- Net Recoveries of $1.9 Million
- Cost of Deposits 9bps for 2021 Down From 27 bps in 2020
- Loan and Lease Production of $9.1 Billion, Up From $4.2 Billion
in 2020; WAC of 4.19% vs. 3.57% in 2020
- Tangible Book Value Per Share Increased From $21.05 at the End
of 2020 to $21.31 at the End of 2021
- Noninterest Income of $193.9 Million in 2021, Compared to
$146.1 Million in 2020, With Record Warrant Income of $49.3 Million
in 2021
CEO COMMENTARY
Matt Wagner, President and CEO, commented, “We are
very pleased to deliver another strong quarter. We deployed
approximately $3.8 billion of excess liquidity into higher-yielding
securities and loans during the fourth quarter which resulted in a
$24.6 million increase in net interest income and helped drive a
$13.9 million increase in our pre-tax pre-provision net revenue
compared to the third quarter. Loans grew by $2.4 billion in the
fourth quarter to an all-time high of $22.9 billion.”
“We continued to experience strong deposit growth
as core deposits increased by $4.6 billion during the fourth
quarter driven by the $4.1 billion of deposits acquired with the
HOA business.”
“Credit quality continues the improvement seen
throughout 2021 with net recoveries of $1.9 million for the year
and continued decreases in special mention (down 46% in 2021) and
classified loans and leases (down 56% in 2021) which resulted in a
provision benefit for the fourth consecutive quarter.”
“We had a strong year in 2021 and produced record
net earnings of over $600 million, ended the year with record high
balances for loans and deposits and crossed the $40 billion total
assets milestone. We completed two strategic acquisitions with
Civic Financial Services in February and the HOA business in
October which expanded our product offerings and position us well
for a rising rate environment. ”
“Our strategy of prioritizing a strong balance
sheet, followed by profitability and growth, in that order, served
us well in 2021 and we are well positioned as we begin 2022.”
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/be14ae62-9832-453c-9087-7d077d54bfcc
FINANCIAL HIGHLIGHTS
` |
|
At or For the |
|
|
|
At or For the |
|
|
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
September 30, |
|
Increase |
|
December 31, |
|
Increase |
Financial Highlights
(1) |
|
|
2021 |
|
|
|
2021 |
|
|
(Decrease) |
|
|
2021 |
|
|
|
2020 |
|
|
(Decrease) |
|
|
(Dollars in thousands, except per share data) |
Net earnings (loss) |
|
$ |
136,045 |
|
|
$ |
139,996 |
|
|
$ |
(3,951 |
) |
|
$ |
606,959 |
|
|
$ |
(1,237,574 |
) |
|
$ |
1,844,533 |
|
Diluted earnings (loss) per
share |
|
$ |
1.14 |
|
|
$ |
1.17 |
|
|
$ |
(0.03 |
) |
|
$ |
5.10 |
|
|
$ |
(10.61 |
) |
|
$ |
15.71 |
|
Pre-provision, pre-goodwill
impairment, pre-tax net revenue ("PPNR") (2) |
|
$ |
181,677 |
|
|
$ |
167,766 |
|
|
$ |
13,911 |
|
|
$ |
660,334 |
|
|
$ |
646,599 |
|
|
$ |
13,735 |
|
Return on average assets |
|
|
1.34 |
% |
|
|
1.55 |
% |
|
|
(0.21 |
) |
|
|
1.71 |
% |
|
|
(4.46 |
)% |
|
|
6.17 |
|
PPNR return on average assets
(2) |
|
|
1.79 |
% |
|
|
1.86 |
% |
|
|
(0.07 |
) |
|
|
1.86 |
% |
|
|
2.33 |
% |
|
|
(0.47 |
) |
Return on average tangible
equity (2) |
|
|
22.06 |
% |
|
|
21.03 |
% |
|
|
1.03 |
|
|
|
24.41 |
% |
|
|
10.36 |
% |
|
|
14.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on average loans and
leases (tax equivalent) |
|
|
4.93 |
% |
|
|
5.01 |
% |
|
|
(0.08 |
) |
|
|
5.08 |
% |
|
|
5.18 |
% |
|
|
(0.10 |
) |
Cost of average total
deposits |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
- |
|
|
|
0.09 |
% |
|
|
0.27 |
% |
|
|
(0.18 |
) |
Net interest margin ("NIM")
(tax equivalent) |
|
|
3.24 |
% |
|
|
3.33 |
% |
|
|
(0.09 |
) |
|
|
3.40 |
% |
|
|
4.05 |
% |
|
|
(0.65 |
) |
Efficiency ratio |
|
|
46.2 |
% |
|
|
47.2 |
% |
|
|
(1.0 |
) |
|
|
46.9 |
% |
|
|
43.1 |
% |
|
|
3.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
40,443,344 |
|
|
$ |
35,885,676 |
|
|
$ |
4,557,668 |
|
|
$ |
40,443,344 |
|
|
$ |
29,498,442 |
|
|
$ |
10,944,902 |
|
Loans and leases held for
investment, net of deferred fees |
|
$ |
22,941,548 |
|
|
$ |
20,511,020 |
|
|
$ |
2,430,528 |
|
|
$ |
22,941,548 |
|
|
$ |
19,083,377 |
|
|
$ |
3,858,171 |
|
Noninterest-bearing demand
deposits |
|
$ |
14,543,133 |
|
|
$ |
12,881,806 |
|
|
$ |
1,661,327 |
|
|
$ |
14,543,133 |
|
|
$ |
9,193,827 |
|
|
$ |
5,349,306 |
|
Core deposits |
|
$ |
32,734,949 |
|
|
$ |
28,140,708 |
|
|
$ |
4,594,241 |
|
|
$ |
32,734,949 |
|
|
$ |
22,264,480 |
|
|
$ |
10,470,469 |
|
Total deposits |
|
$ |
34,997,757 |
|
|
$ |
30,559,745 |
|
|
$ |
4,438,012 |
|
|
$ |
34,997,757 |
|
|
$ |
24,940,717 |
|
|
$ |
10,057,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As percentage of total
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
41 |
% |
|
|
42 |
% |
|
|
(1 |
) |
|
|
41 |
% |
|
|
37 |
% |
|
|
4 |
|
Core deposits |
|
|
93 |
% |
|
|
92 |
% |
|
|
1 |
|
|
|
93 |
% |
|
|
89 |
% |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets ratio |
|
|
9.89 |
% |
|
|
10.92 |
% |
|
|
(1.03 |
) |
|
|
9.89 |
% |
|
|
12.19 |
% |
|
|
(2.30 |
) |
Common equity tier 1 capital
ratio |
|
|
8.86 |
% |
|
|
10.15 |
% |
|
|
(1.29 |
) |
|
|
8.86 |
% |
|
|
10.53 |
% |
|
|
(1.67 |
) |
Total capital ratio |
|
|
12.69 |
% |
|
|
14.36 |
% |
|
|
(1.67 |
) |
|
|
12.69 |
% |
|
|
13.76 |
% |
|
|
(1.07 |
) |
Tangible common equity ratio
(2) |
|
|
6.54 |
% |
|
|
7.79 |
% |
|
|
(1.25 |
) |
|
|
6.54 |
% |
|
|
8.78 |
% |
|
|
(2.24 |
) |
Book value per share |
|
$ |
33.45 |
|
|
$ |
32.77 |
|
|
$ |
0.68 |
|
|
$ |
33.45 |
|
|
$ |
30.36 |
|
|
$ |
3.09 |
|
Tangible book value per share
(2) |
|
$ |
21.31 |
|
|
$ |
22.57 |
|
|
$ |
(1.26 |
) |
|
$ |
21.31 |
|
|
$ |
21.05 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
operations of the Homeowners Association Services business are
included from its October 8, 2021 acquisition date and the
operations of Civic are included from its February 1, 2021
acquisition date. |
(2) Non-GAAP
measure. |
|
INCOME STATEMENT HIGHLIGHTS
NET INTEREST INCOME
Net interest income increased by $24.6 million to
$300.4 million for the fourth quarter of 2021 compared to $275.8
million for the third quarter of 2021 due mainly to higher income
on investment securities and loans and leases primarily resulting
from higher average balances as we deployed our excess liquidity.
Income on investment securities increased by $7.7 million in the
fourth quarter of 2021 due to a $1.9 billion increase in the
average balance of investment securities, offset partially by a 10
basis point decrease in the yield on average investment securities.
Income on loans and leases increased by $16.9 million in the fourth
quarter of 2021 due to a $1.7 billion increase in the average
balance of loans and leases, offset partially by an eight basis
point decrease in the yield on average loans and leases. The tax
equivalent yield on average loans and leases was 4.93% for the
fourth quarter of 2021 compared to 5.01% for the third quarter of
2021. The decrease in the tax equivalent yield on average loans and
leases was due primarily to the purchases of lower yielding
single-family loans and higher loan premium amortization of $4.1
million.
The tax equivalent NIM was 3.24% for the fourth
quarter of 2021 compared to 3.33% for the third quarter of 2021.
The decrease in the NIM was due primarily to the change in the
earning assets mix driven by the increase in the balance of average
investment securities as a percentage of average earning assets and
the decrease in the balance of average loans and leases as a
percentage of average earning assets, as well as lower yields on
average loans and leases and average investment securities. The
average balance of investment securities increased by $1.9 billion
to $10.0 billion, the average balance of deposits in financial
institutions increased by $303.3 million to $6.0 billion, and the
average balance of loans and leases increased by $1.7 billion to
$21.4 billion in the fourth quarter of 2021. The increase in
average balances of investment securities and loans and leases was
the result of deploying some of our excess liquidity ahead of the
closing of the acquisition of the HOA Services Division of MUFG
Union Bank that added approximately $4.1 billion of deposits on
October 8, 2021.
The cost of average total deposits was 0.08% in
the fourth quarter of 2021, unchanged from 0.08% in the third
quarter of 2021.
PROVISION FOR CREDIT LOSSES
The following table presents details of the
provision for credit losses for the periods indicated:
|
|
Three Months Ended |
|
|
|
|
December 31, |
|
September 30, |
|
Increase |
Provision for Credit
Losses |
|
|
2021 |
|
|
|
2021 |
|
|
(Decrease) |
|
|
(In thousands) |
|
|
|
|
(Reduction in) addition to allowance for loan and lease losses |
|
$ |
(3,000 |
) |
|
$ |
(21,500 |
) |
|
$ |
18,500 |
|
(Reduction in) addition to
reserve for unfunded loan commitments |
|
|
(3,000 |
) |
|
|
1,500 |
|
|
|
(4,500 |
) |
Total provision for credit losses |
|
$ |
(6,000 |
) |
|
$ |
(20,000 |
) |
|
$ |
14,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The provision for credit losses benefit was $6.0 million for the
fourth quarter of 2021 compared to a benefit of $20.0 million for
the third quarter of 2021. The fourth quarter benefit was primarily
impacted by changes in the qualitative component and a slightly
improved economic forecast offset by an increased provision for
loan growth.
NONINTEREST INCOME
The following table presents details of
noninterest income for the periods indicated:
|
|
Three Months Ended |
|
|
|
|
December 31, |
|
September 30, |
|
Increase |
Noninterest
Income |
|
|
2021 |
|
|
|
2021 |
|
|
(Decrease) |
|
|
(In thousands) |
|
|
|
|
Service charges on deposit accounts |
|
$ |
3,476 |
|
|
$ |
3,407 |
|
|
$ |
69 |
|
Other commissions and
fees |
|
|
10,633 |
|
|
|
11,792 |
|
|
|
(1,159 |
) |
Leased equipment income |
|
|
12,602 |
|
|
|
10,943 |
|
|
|
1,659 |
|
Gain on sale of loans and
leases |
|
|
172 |
|
|
|
- |
|
|
|
172 |
|
Gain on sale of
securities |
|
|
999 |
|
|
|
515 |
|
|
|
484 |
|
Other income: |
|
|
|
|
|
|
Dividends and gains on equity investments |
|
|
(1,570 |
) |
|
|
8,387 |
|
|
|
(9,957 |
) |
Warrant income |
|
|
23,990 |
|
|
|
13,578 |
|
|
|
10,412 |
|
Other |
|
|
7,080 |
|
|
|
2,723 |
|
|
|
4,357 |
|
Total noninterest income |
|
$ |
57,382 |
|
|
$ |
51,345 |
|
|
$ |
6,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income increased by $6.0 million to $57.4 million
for the fourth quarter of 2021 compared to $51.3 million for the
third quarter of 2021 due primarily to increases of $10.4 million
in warrant income, $4.4 million in other income, and $1.7 million
in leased equipment income, offset partially by a $10.0 million
decrease in dividends and gains on equity investments. Warrant
income increased due to continued strength in the capital markets
activity including our single largest warrant gain ever of $13.6
million along with a second warrant gain of $5.2 million. Other
income increased due primarily to higher gains from early lease
terminations of $4.5 million. Leased equipment income increased due
to a higher average balance of leased equipment and the return of
one large lease to accrual status in December 2021. Dividends and
gains on equity investments decreased due primarily to lower gains
on sales of equity investments, higher fair value losses on equity
investments still held, and lower income distributions and fair
value marks on SBIC investments.
NONINTEREST EXPENSE
The following table presents details of
noninterest expense for the periods indicated:
|
|
Three Months Ended |
|
|
|
|
December 31, |
|
September 30, |
|
Increase |
Noninterest
Expense |
|
|
2021 |
|
|
|
2021 |
|
|
(Decrease) |
|
|
(In thousands) |
|
|
|
|
Compensation |
|
$ |
99,700 |
|
|
$ |
98,061 |
|
|
$ |
1,639 |
|
Occupancy |
|
|
14,656 |
|
|
|
14,928 |
|
|
|
(272 |
) |
Data processing |
|
|
8,171 |
|
|
|
7,391 |
|
|
|
780 |
|
Other professional
services |
|
|
5,946 |
|
|
|
5,164 |
|
|
|
782 |
|
Insurance and assessments |
|
|
5,032 |
|
|
|
3,685 |
|
|
|
1,347 |
|
Intangible asset
amortization |
|
|
3,876 |
|
|
|
2,890 |
|
|
|
986 |
|
Leased equipment
depreciation |
|
|
9,569 |
|
|
|
8,603 |
|
|
|
966 |
|
Foreclosed assets (income)
expense, net |
|
|
(260 |
) |
|
|
165 |
|
|
|
(425 |
) |
Acquisition, integration and
reorganization costs |
|
|
5,590 |
|
|
|
200 |
|
|
|
5,390 |
|
Customer related expense |
|
|
6,175 |
|
|
|
4,538 |
|
|
|
1,637 |
|
Loan expense |
|
|
5,627 |
|
|
|
4,180 |
|
|
|
1,447 |
|
Other |
|
|
12,028 |
|
|
|
9,616 |
|
|
|
2,412 |
|
Total noninterest expense |
|
$ |
176,110 |
|
|
$ |
159,421 |
|
|
$ |
16,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense increased by $16.7 million to $176.1 million
for the fourth quarter of 2021 compared to $159.4 million for the
third quarter of 2021 due primarily to increases in several expense
categories such as compensation expense by $1.6 million, data
processing by $0.8 million, insurance and assessments by $1.3
million, intangible asset amortization by $1.0 million,
acquisition, integration and reorganization costs by $5.4 million,
and customer related expense by $1.6 million. The increases related
primarily to the acquisition of the HOA business on October 8,
2021. Total operating expenses for the quarter, excluding the
acquisition, integration and reorganization costs of $5.6 million,
were $170.5 million including $5.9 million of operating expenses
for the acquired HOA business.
INCOME TAXES
The effective income tax rate was 27.5% in the
fourth quarter of 2021 compared to 25.4% in the third quarter of
2021. The increase was due primarily to an increase in state tax
rates for fiscal year 2021 caused by a shift in apportionment and a
tax benefit from the release of a valuation allowance recorded in
the third quarter. The effective income tax rate for the full
year 2021 was 26.2%. The effective tax rate for the full year 2022
is currently estimated to be in the range of 25% to 27%.
BALANCE SHEET HIGHLIGHTS
DEPOSITS AND CLIENT INVESTMENT
FUNDS
The following table presents the composition of
our deposit portfolio as of the dates indicated:
|
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
|
|
% of |
|
|
% of |
|
|
% of |
Deposit
Composition |
|
Balance |
Total |
|
Balance |
Total |
|
Balance |
Total |
|
|
(Dollars in thousands) |
Noninterest-bearing demand |
|
$ |
14,543,133 |
|
41 |
% |
|
$ |
12,881,806 |
|
42 |
% |
|
$ |
9,193,827 |
|
37 |
% |
Interest checking |
|
|
7,319,898 |
|
21 |
% |
|
|
7,168,472 |
|
24 |
% |
|
|
5,974,910 |
|
24 |
% |
Money market |
|
|
10,241,265 |
|
29 |
% |
|
|
7,463,261 |
|
24 |
% |
|
|
6,532,917 |
|
26 |
% |
Savings |
|
|
630,653 |
|
2 |
% |
|
|
627,169 |
|
2 |
% |
|
|
562,826 |
|
2 |
% |
Total core deposits |
|
|
32,734,949 |
|
93 |
% |
|
|
28,140,708 |
|
92 |
% |
|
|
22,264,480 |
|
89 |
% |
Non-core non-maturity
deposits |
|
|
889,976 |
|
3 |
% |
|
|
960,438 |
|
3 |
% |
|
|
1,149,467 |
|
5 |
% |
Total non-maturity deposits |
|
|
33,624,925 |
|
96 |
% |
|
|
29,101,146 |
|
95 |
% |
|
|
23,413,947 |
|
94 |
% |
Time deposits $250,000 and
under |
|
|
885,938 |
|
3 |
% |
|
|
882,551 |
|
3 |
% |
|
|
994,197 |
|
4 |
% |
Time deposits over
$250,000 |
|
|
486,894 |
|
1 |
% |
|
|
576,048 |
|
2 |
% |
|
|
532,573 |
|
2 |
% |
Total time deposits |
|
|
1,372,832 |
|
4 |
% |
|
|
1,458,599 |
|
5 |
% |
|
|
1,526,770 |
|
6 |
% |
Total deposits |
|
$ |
34,997,757 |
|
100 |
% |
|
$ |
30,559,745 |
|
100 |
% |
|
$ |
24,940,717 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2021, core deposits totaled $32.7 billion or 93%
of total deposits, including $14.5 billion of noninterest-bearing
demand deposits or 41% of total deposits. Core deposits increased
by $4.6 billion or 16.3% in the fourth quarter of 2021 driven
primarily by the $4.1 billion of core deposits acquired with the
HOA business on October 8, 2021.
In addition to deposit products, we also offer
alternative, non-depository cash investment options for select
clients. These alternative options include investments managed by
Pacific Western Asset Management Inc. (“PWAM”), our registered
investment advisor subsidiary, and third-party sweep products.
Total off-balance sheet client investment funds at December 31,
2021 were $1.4 billion, of which $0.9 billion was managed by
PWAM.
LOANS AND LEASES
The following table presents roll forwards of
loans and leases held for investment, net of deferred fees, for the
periods indicated:
|
|
Three Months Ended |
|
Year Ended |
Roll Forward of Loans
and Leases Held |
|
December 31, |
|
September 30, |
|
December 31, |
for Investment, Net of Deferred Fees (1) |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
(Dollars in thousands) |
Balance, beginning of
period |
|
$ |
20,511,020 |
|
|
$ |
19,506,257 |
|
|
$ |
19,083,377 |
|
Additions: |
|
|
|
|
|
|
Production |
|
|
3,372,815 |
|
|
|
2,406,024 |
|
|
|
9,054,767 |
|
Disbursements |
|
|
1,917,195 |
|
|
|
1,349,333 |
|
|
|
5,952,158 |
|
Total production and disbursements |
|
|
5,290,010 |
|
|
|
3,755,357 |
|
|
|
15,006,925 |
|
Reductions: |
|
|
|
|
|
|
Payoffs |
|
|
(2,000,293 |
) |
|
|
(1,732,621 |
) |
|
|
(7,337,296 |
) |
Paydowns |
|
|
(845,443 |
) |
|
|
(1,013,867 |
) |
|
|
(3,728,950 |
) |
Total payoffs and paydowns |
|
|
(2,845,736 |
) |
|
|
(2,746,488 |
) |
|
|
(11,066,246 |
) |
Sales |
|
|
(15,837 |
) |
|
|
(2,175 |
) |
|
|
(117,263 |
) |
Transfers to foreclosed assets |
|
|
- |
|
|
|
(415 |
) |
|
|
(1,062 |
) |
Charge-offs |
|
|
(4,395 |
) |
|
|
(1,516 |
) |
|
|
(10,715 |
) |
Transfers to loans held for sale |
|
|
- |
|
|
|
- |
|
|
|
(25,554 |
) |
Total reductions |
|
|
(2,865,968 |
) |
|
|
(2,750,594 |
) |
|
|
(11,220,840 |
) |
Loans acquired through acquisitions |
|
|
6,486 |
|
|
|
- |
|
|
|
72,086 |
|
Net increase (decrease) |
|
|
2,430,528 |
|
|
|
1,004,763 |
|
|
|
3,858,171 |
|
Balance, end of period |
|
$ |
22,941,548 |
|
|
$ |
20,511,020 |
|
|
$ |
22,941,548 |
|
|
|
|
|
|
|
|
Weighted average rate on
production (2) |
|
|
3.89 |
% |
|
|
4.24 |
% |
|
|
4.19 |
% |
|
|
|
|
|
|
|
(1) Includes
direct financing leases but excludes equipment leased to others
under operating leases. |
(2) The weighted
average rate on production presents contractual rates on a
tax equivalent basis and excludes amortized fees. Amortized
fees added approximately 38 basis points to loan yields in
2021. |
|
Loans and leases held for investment, net of deferred fees,
increased by $2.4 billion or 11.8% in the fourth quarter of 2021 to
$22.9 billion at December 31, 2021. Excluding PPP loan activity,
loans grew by $2.5 billion or 12.6%. The overall increase in the
loans and leases balance for the fourth quarter of 2021 was due
primarily to increases in the income producing and other
residential, venture capital, and asset-based portfolios, offset
partially by a reduction in the commercial real estate construction
portfolio. Civic loan production was $480 million in the fourth
quarter of 2021 compared to $481 million in the third quarter of
2021. The total outstanding balance of the Civic loan portfolio as
of December 31, 2021 was $1.4 billion. The PPP loan forgiveness in
the fourth quarter of 2021 was $111 million, down from $338 million
in the third quarter of 2021. Net fees for PPP loans were $3.6
million in the fourth quarter of 2021, down from the $7.9 million
in the third quarter of 2021. Remaining PPP loans totaled $157
million as of December 31, 2021 with $4.2 million of net fees to
amortize over the remaining life of the loans. The weighted average
rate on the $3.4 billion of new production for the fourth quarter
of 2021 decreased to 3.89% from 4.24% in the third quarter of 2021
due primarily to the loan mix (higher levels of single-family loan
pool purchases and equity fund loans). In the fourth quarter of
2021, we purchased $1.1 billion in single-family loan pools
compared to $1.0 billion in the third quarter of 2021. The total of
the single-family loan pool purchase portfolio as of December 31,
2021 was $2.3 billion.
The following table presents the composition of
loans and leases held for investment by loan portfolio segment and
class, net of deferred fees, as of the dates indicated:
|
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
|
|
% of |
|
|
% of |
|
|
% of |
Loan and Lease
Portfolio |
|
Balance |
Total |
|
Balance |
Total |
|
Balance |
Total |
|
|
(In thousands) |
Real estate mortgage: |
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
3,762,299 |
|
17 |
% |
|
$ |
3,694,597 |
|
18 |
% |
|
$ |
4,096,671 |
|
21 |
% |
Income producing and other residential |
|
|
7,416,421 |
|
32 |
% |
|
|
6,153,662 |
|
30 |
% |
|
|
3,803,265 |
|
20 |
% |
Total real estate mortgage |
|
|
11,178,720 |
|
49 |
% |
|
|
9,848,259 |
|
48 |
% |
|
|
7,899,936 |
|
41 |
% |
Real estate construction and
land: |
|
|
|
|
|
|
|
|
|
Commercial |
|
|
832,591 |
|
4 |
% |
|
|
992,003 |
|
5 |
% |
|
|
1,117,121 |
|
6 |
% |
Residential |
|
|
2,604,536 |
|
11 |
% |
|
|
2,392,568 |
|
12 |
% |
|
|
2,243,160 |
|
12 |
% |
Total real estate construction and land |
|
|
3,437,127 |
|
15 |
% |
|
|
3,384,571 |
|
17 |
% |
|
|
3,360,281 |
|
18 |
% |
Total real estate |
|
|
14,615,847 |
|
64 |
% |
|
|
13,232,830 |
|
65 |
% |
|
|
11,260,217 |
|
59 |
% |
Commercial: |
|
|
|
|
|
|
|
|
|
Asset-based |
|
|
4,075,477 |
|
18 |
% |
|
|
3,661,769 |
|
18 |
% |
|
|
3,429,283 |
|
18 |
% |
Venture capital |
|
|
2,320,593 |
|
10 |
% |
|
|
1,632,861 |
|
8 |
% |
|
|
1,698,508 |
|
9 |
% |
Other commercial |
|
|
1,471,981 |
|
6 |
% |
|
|
1,577,592 |
|
7 |
% |
|
|
2,375,114 |
|
12 |
% |
Total commercial |
|
|
7,868,051 |
|
34 |
% |
|
|
6,872,222 |
|
33 |
% |
|
|
7,502,905 |
|
39 |
% |
Consumer |
|
|
457,650 |
|
2 |
% |
|
|
405,968 |
|
2 |
% |
|
|
320,255 |
|
2 |
% |
Total loans and leases held for investment, net of deferred
fees |
|
$ |
22,941,548 |
|
100 |
% |
|
$ |
20,511,020 |
|
100 |
% |
|
$ |
19,083,377 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
Total unfunded loan
commitments |
|
$ |
9,006,350 |
|
|
|
$ |
8,480,599 |
|
|
|
$ |
7,601,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR CREDIT LOSSES
The following tables present roll forwards of the
allowance for credit losses for the periods indicated:
|
|
Three Months Ended December 31, 2021 |
|
|
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 |
|
$ |
203,733 |
|
|
$ |
76,071 |
|
|
$ |
279,804 |
|
Charge-offs |
|
|
(4,395 |
) |
|
|
- |
|
|
|
(4,395 |
) |
Recoveries |
|
|
4,226 |
|
|
|
- |
|
|
|
4,226 |
|
Net charge-offs |
|
|
(169 |
) |
|
|
- |
|
|
|
(169 |
) |
Provision |
|
|
(3,000 |
) |
|
|
(3,000 |
) |
|
|
(6,000 |
) |
Ending balance |
|
$ |
200,564 |
|
|
$ |
73,071 |
|
|
$ |
273,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2021 |
|
|
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 |
|
$ |
225,600 |
|
|
$ |
74,571 |
|
|
$ |
300,171 |
|
Charge-offs |
|
|
(1,516 |
) |
|
|
- |
|
|
|
(1,516 |
) |
Recoveries |
|
|
1,149 |
|
|
|
- |
|
|
|
1,149 |
|
Net charge-offs |
|
|
(367 |
) |
|
|
- |
|
|
|
(367 |
) |
Provision |
|
|
(21,500 |
) |
|
|
1,500 |
|
|
|
(20,000 |
) |
Ending balance |
|
$ |
203,733 |
|
|
$ |
76,071 |
|
|
$ |
279,804 |
|
Allowance for
Credit |
|
Year Ended December 31, |
Losses Rollforward |
|
|
2021 |
|
|
|
2020 |
|
|
|
(In thousands) |
Beginning balance |
|
$ |
433,752 |
|
|
$ |
174,646 |
|
Cumulative effect of change in accounting principle - CECL |
|
|
- |
|
|
|
7,327 |
|
Balance, January 1 |
|
|
433,752 |
|
|
|
181,973 |
|
Charge-offs |
|
|
(10,715 |
) |
|
|
(93,589 |
) |
Recoveries |
|
|
12,598 |
|
|
|
6,368 |
|
Net recoveries (charge-offs) |
|
|
1,883 |
|
|
|
(87,221 |
) |
Provision |
|
|
(162,000 |
) |
|
|
339,000 |
|
Ending balance |
|
$ |
273,635 |
|
|
$ |
433,752 |
|
|
|
|
|
|
|
|
|
|
The following table presents allowance for credit losses
information as of and for the dates and periods indicated:
|
|
December 31, |
|
September 30, |
|
Increase |
Allowance for Credit
Losses |
|
|
2021 |
|
|
|
2021 |
|
|
(Decrease) |
|
|
(Dollars in thousands) |
Allowance for loan and lease losses |
|
$ |
200,564 |
|
|
$ |
203,733 |
|
|
$ |
(3,169 |
) |
Reserve for unfunded loan
commitments |
|
|
73,071 |
|
|
|
76,071 |
|
|
|
(3,000 |
) |
Allowance for credit losses |
|
$ |
273,635 |
|
|
$ |
279,804 |
|
|
$ |
(6,169 |
) |
|
|
|
|
|
|
|
Provision for credit losses
(for the quarter) |
|
$ |
(6,000 |
) |
|
$ |
(20,000 |
) |
|
$ |
14,000 |
|
Net charge-offs (recoveries)
(for the quarter) |
|
$ |
169 |
|
|
$ |
367 |
|
|
$ |
(198 |
) |
Net charge-offs (recoveries)
to average loans and leases (for the
quarter) |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
Allowance for loan and lease
losses to loans and leases held for investment |
|
|
0.87 |
% |
|
|
0.99 |
% |
|
|
Allowance for loan and lease
losses to loans and leases held for investment, excluding PPP
loans |
|
|
0.88 |
% |
|
|
1.01 |
% |
|
|
Allowance for credit losses to
loans and leases held for investment |
|
|
1.19 |
% |
|
|
1.36 |
% |
|
|
Allowance for credit losses to
loans and leases held for investment, excluding PPP loans |
|
|
1.20 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
The allowance for credit losses decreased by $6.2 million in the
fourth quarter of 2021 to $273.6 million at December 31, 2021. The
decrease in the allowance for credit losses during the fourth
quarter of 2021 was attributable to a provision for credit losses
benefit of $6.0 million and $0.2 million in net charge-offs. The
allowance for credit losses ratio, excluding PPP loans, of 1.20%
remains robust and moderately higher than the pre-pandemic level of
0.97% as of the January 1, 2020 CECL adoption date.
Net charge-offs were $0.2 million for the fourth
quarter of 2021 as gross charge-offs of $4.4 million were reduced
by recoveries of $4.2 million.
Net charge-offs were $0.4 million for the third
quarter of 2021 as gross charge-offs of $1.5 million were reduced
by recoveries of $1.1 million.
On a year-to-date basis for the year ended
December 31, 2021, net recoveries were $1.9 million as gross
charge-offs of $10.7 million were reduced by recoveries of $12.6
million.
CREDIT QUALITY
The following table presents loan and lease credit
quality metrics as of the dates indicated:
|
|
December 31, |
|
September 30, |
|
Increase |
Credit Quality
Metrics |
|
|
2021 |
|
|
|
2021 |
|
|
(Decrease) |
|
|
(Dollars in thousands) |
NPAs and Performing
TDRs: |
|
|
|
|
|
|
Nonaccrual loans and leases held for investment (1) |
|
$ |
61,174 |
|
|
$ |
64,507 |
|
|
$ |
(3,333 |
) |
Accruing loans contractually
past due 90 days or more |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Foreclosed assets, net |
|
|
12,843 |
|
|
|
13,364 |
|
|
|
(521 |
) |
Total nonperforming assets ("NPAs") |
|
$ |
74,017 |
|
|
$ |
77,871 |
|
|
$ |
(3,854 |
) |
|
|
|
|
|
|
|
Performing TDRs held for
investment |
|
$ |
24,430 |
|
|
$ |
36,750 |
|
|
$ |
(12,320 |
) |
|
|
|
|
|
|
|
Nonaccrual loans and leases
held for investment to loans and leases held for investment |
|
|
0.27 |
% |
|
|
0.31 |
% |
|
|
Nonperforming assets to loans
and leases held for investment and foreclosed assets |
|
|
0.32 |
% |
|
|
0.38 |
% |
|
|
Allowance for credit losses to
nonaccrual loans and leases held for investment |
|
|
447.3 |
% |
|
|
433.8 |
% |
|
|
|
|
|
|
|
|
|
Loan and Lease Credit
Risk Ratings: |
|
|
|
|
|
|
Pass |
|
$ |
22,433,833 |
|
|
$ |
19,873,050 |
|
|
$ |
2,560,783 |
|
Special mention |
|
|
391,611 |
|
|
|
496,366 |
|
|
|
(104,755 |
) |
Classified |
|
|
116,104 |
|
|
|
141,604 |
|
|
|
(25,500 |
) |
Total loans and leases held for investment, net of deferred
fees |
|
$ |
22,941,548 |
|
|
$ |
20,511,020 |
|
|
$ |
2,430,528 |
|
|
|
|
|
|
|
|
Classified loans and leases
held for investment to loans and leases held for investment |
|
|
0.51 |
% |
|
|
0.69 |
% |
|
|
|
|
|
|
|
|
|
(1) Nonaccrual
loans include SBA guaranteed amounts of $22.1 million at December
31, 2021 and $20.1 million at September 30, 2021. |
|
Since downgrading certain loans at the onset of the pandemic in
the first quarter of 2020 given all the uncertainty at the time,
special mention loans and leases have decreased by $507.0 million
or 56% from their peak in the first quarter of 2020, while
classified loans and leases have decreased by $177.1 million or 60%
from their peak in the second quarter of 2020, and each have
significantly declined in the fourth quarter of 2021. Classified
loans and leases are now below pre-pandemic levels while special
mention loans and leases are also approaching pre-pandemic levels.
Nonaccrual loans and leases decreased by $3.3 million to $61.2
million in the fourth quarter of 2021 due primarily to a decrease
in nonaccrual short-term, single-family residential renovation
loans as a result of payoffs during the quarter.
The following table presents nonaccrual loans and
leases and accruing loans and leases past due between 30 and 89
days by loan portfolio segment and class as of the dates
indicated:
|
|
December 31, 2021 |
|
September 30, 2021 |
|
Increase (Decrease) |
|
|
|
|
Accruing |
|
|
|
Accruing |
|
|
|
Accruing |
|
|
|
|
and 30-89 |
|
|
|
and 30-89 |
|
|
|
and 30-89 |
|
|
|
|
Days Past |
|
|
|
Days Past |
|
|
|
Days Past |
|
|
Nonaccrual |
|
Due |
|
Nonaccrual |
|
Due |
|
Nonaccrual |
|
Due |
|
|
(Dollars in thousands) |
Real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
27,540 |
|
|
$ |
2,165 |
|
|
$ |
25,615 |
|
|
$ |
676 |
|
|
$ |
1,925 |
|
|
$ |
1,489 |
|
Income producing and other residential |
|
|
12,292 |
|
|
|
39,929 |
|
|
|
7,547 |
|
|
|
3,760 |
|
|
|
4,745 |
|
|
|
36,169 |
|
Total real estate mortgage |
|
|
39,832 |
|
|
|
42,094 |
|
|
|
33,162 |
|
|
|
4,436 |
|
|
|
6,670 |
|
|
|
37,658 |
|
Real estate construction and
land: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Residential |
|
|
4,715 |
|
|
|
5,031 |
|
|
|
19,918 |
|
|
|
12,809 |
|
|
|
(15,203 |
) |
|
|
(7,778 |
) |
Total real estate construction and land |
|
|
4,715 |
|
|
|
5,031 |
|
|
|
19,918 |
|
|
|
12,809 |
|
|
|
(15,203 |
) |
|
|
(7,778 |
) |
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Asset-based |
|
|
1,464 |
|
|
|
- |
|
|
|
1,605 |
|
|
|
- |
|
|
|
(141 |
) |
|
|
- |
|
Venture capital |
|
|
2,799 |
|
|
|
- |
|
|
|
2,348 |
|
|
|
1,670 |
|
|
|
451 |
|
|
|
(1,670 |
) |
Other commercial |
|
|
11,950 |
|
|
|
630 |
|
|
|
6,979 |
|
|
|
340 |
|
|
|
4,971 |
|
|
|
290 |
|
Total commercial |
|
|
16,213 |
|
|
|
630 |
|
|
|
10,932 |
|
|
|
2,010 |
|
|
|
5,281 |
|
|
|
(1,380 |
) |
Consumer |
|
|
414 |
|
|
|
1,004 |
|
|
|
495 |
|
|
|
1,042 |
|
|
|
(81 |
) |
|
|
(38 |
) |
Total held for investment |
|
$ |
61,174 |
|
|
$ |
48,759 |
|
|
$ |
64,507 |
|
|
$ |
20,297 |
|
|
$ |
(3,333 |
) |
|
$ |
28,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in accruing and 30-89 days past due loans is
primarily due to $19.3 million in past due purchased single-family
loans. As of January 14, 2022, $5.9 million of these loans remained
over 30 days past due. The delinquency related to these loans was
attributable to delayed payment application stemming from servicing
being transferred following our purchase of the loans. The increase
in this category was also due to an increase of $9.1 million in
single-family residential loans originated by Civic.
CAPITAL
The following table presents certain actual
capital ratios and ratios excluding PPP loans:
|
|
December 31, 2021 |
|
|
|
|
|
|
Excluding |
|
September 30, |
|
|
|
|
PPP |
|
|
2021 |
|
|
|
Actual (1) |
|
Loans (1) |
|
Actual |
PacWest Bancorp
Consolidated: |
|
|
|
|
|
|
Tier 1 leverage capital ratio |
|
|
6.84 |
% |
|
|
6.88 |
% |
(3) |
|
8.05 |
% |
Common equity tier 1 capital ratio |
|
|
8.86 |
% |
|
|
8.86 |
% |
|
|
10.15 |
% |
Tier 1 capital ratio |
|
|
9.32 |
% |
|
|
9.32 |
% |
|
|
10.65 |
% |
Total capital ratio |
|
|
12.69 |
% |
|
|
12.69 |
% |
|
|
14.36 |
% |
Risk-weighted assets |
|
$ |
28,508,808 |
|
|
$ |
28,508,808 |
|
|
$ |
26,057,583 |
|
Tangible common equity ratio (2) |
|
|
6.54 |
% |
|
|
6.56 |
% |
(3) |
|
7.79 |
% |
|
|
|
|
|
|
|
(1) Capital
information for December 31, 2021 is preliminary. |
(2) Non-GAAP
measure. |
(3) PPP loans
have been excluded from total assets in the denominator as they are
zero risk-weighted. |
|
The decreases in the capital ratios during the fourth quarter of
2021 were due primarily to the increase in goodwill related to the
HOA acquisition combined with an increase in risk-weighted assets
as we deployed $3.8 billion of excess liquidity into securities and
loans and leases during the quarter.
ABOUT PACWEST BANCORP
PacWest Bancorp (“PacWest”) is a bank holding
company with over $40 billion in assets headquartered in Los
Angeles, California, with an executive office in Denver, Colorado,
with one wholly-owned banking subsidiary, Pacific Western Bank (the
“Bank”). The Bank has 69 full-service branches located in
California, one branch located in Durham, North Carolina, and one
branch located in Denver, Colorado. The Bank provides community
banking products including lending and comprehensive deposit and
treasury management services to small and medium-sized businesses
conducted primarily through our California-based branch offices and
Denver, Colorado branch office. The Bank offers national lending
products including asset-based, equipment, and real estate loans
and treasury management services to established middle-market
businesses on a national basis. The Bank provides venture banking
products including a comprehensive suite of financial services
focused on entrepreneurial and venture-backed businesses and their
venture capital and private equity investors, with offices located
in key innovative hubs across the United States. The Bank also
offers financing of non-owner-occupied investor properties through
Civic Financial Services a wholly-owned subsidiary. The Bank also
offers a specialized suite of services for the HOA industry. For
more information about PacWest Bancorp or Pacific Western Bank,
visit www.pacwest.com.
FORWARD LOOKING STATEMENTS
This communication contains certain
forward-looking information about PacWest that is intended to be
covered by the safe harbor for “forward-looking statements”
provided by the Private Securities Litigation Reform Act of 1995.
Statements that are not historical or current facts, including
statements about future financial and operational results,
expectations, or intentions are forward-looking statements. Such
statements are based on information available at the time of the
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. The ongoing COVID-19 pandemic has adversely affected
PacWest, its employees, customers and third-party service
providers, and the ultimate extent of the impacts on its business,
financial position, results of operations, liquidity and prospects
is uncertain. The risks from the COVID-19 pandemic have decreased
as the pandemic subsides, however, new variants may continue to
impact key macro-economic indicators such as unemployment and GDP
and may have a material impact on our allowance for credit losses
and related provision for credit losses. Continued deterioration in
general business and economic conditions could adversely affect
PacWest’s revenues and the values of its assets, including
goodwill, and liabilities, lead to a tightening of credit, and
increase stock price volatility. In addition, PacWest’s results
could be adversely affected by changes in interest rates, sustained
high unemployment rates, deterioration in the credit quality of its
loan portfolio or in the value of the collateral securing those
loans, deterioration in the value of its investment securities, the
magnitude of individual loan losses on security monitoring loans,
and legal and regulatory developments. Actual results may differ
materially from those set forth or implied in the forward-looking
statements due to a variety of factors, including the risk factors
described in documents filed by PacWest with the U.S. 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 |
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands, except per share data) |
ASSETS: |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
112,548 |
|
|
$ |
174,585 |
|
|
$ |
150,464 |
|
Interest-earning deposits in
financial institutions |
|
|
3,944,686 |
|
|
|
3,524,613 |
|
|
|
3,010,197 |
|
Total cash and cash equivalents |
|
|
4,057,234 |
|
|
|
3,699,198 |
|
|
|
3,160,661 |
|
|
|
|
|
|
|
|
Securities available-for-sale,
at estimated fair value |
|
|
10,694,458 |
|
|
|
9,276,926 |
|
|
|
5,235,591 |
|
Federal Home Loan Bank stock,
at cost |
|
|
17,250 |
|
|
|
17,250 |
|
|
|
17,250 |
|
Total investment securities |
|
|
10,711,708 |
|
|
|
9,294,176 |
|
|
|
5,252,841 |
|
|
|
|
|
|
|
|
Loans held for
sale |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
Gross loans and leases held
for investment |
|
|
23,026,308 |
|
|
|
20,588,255 |
|
|
|
19,153,357 |
|
Deferred fees, net |
|
|
(84,760 |
) |
|
|
(77,235 |
) |
|
|
(69,980 |
) |
Total loans and leases held for investment, net of deferred
fees |
|
|
22,941,548 |
|
|
|
20,511,020 |
|
|
|
19,083,377 |
|
Allowance for loan and lease
losses |
|
|
(200,564 |
) |
|
|
(203,733 |
) |
|
|
(348,181 |
) |
Total loans and leases held for investment,
net |
|
|
22,740,984 |
|
|
|
20,307,287 |
|
|
|
18,735,196 |
|
|
|
|
|
|
|
|
Equipment leased to others
under operating leases |
|
|
339,150 |
|
|
|
334,275 |
|
|
|
333,846 |
|
Premises and equipment,
net |
|
|
46,740 |
|
|
|
47,246 |
|
|
|
39,234 |
|
Foreclosed assets, net |
|
|
12,843 |
|
|
|
13,364 |
|
|
|
14,027 |
|
Goodwill |
|
|
1,405,736 |
|
|
|
1,204,118 |
|
|
|
1,078,670 |
|
Core deposit and customer
relationship intangibles, net |
|
|
44,957 |
|
|
|
15,533 |
|
|
|
23,641 |
|
Other assets |
|
|
1,083,992 |
|
|
|
970,479 |
|
|
|
860,326 |
|
Total assets |
|
$ |
40,443,344 |
|
|
$ |
35,885,676 |
|
|
$ |
29,498,442 |
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
$ |
14,543,133 |
|
|
$ |
12,881,806 |
|
|
$ |
9,193,827 |
|
Interest-bearing deposits |
|
|
20,454,624 |
|
|
|
17,677,939 |
|
|
|
15,746,890 |
|
Total deposits |
|
|
34,997,757 |
|
|
|
30,559,745 |
|
|
|
24,940,717 |
|
Borrowings |
|
|
- |
|
|
|
- |
|
|
|
5,000 |
|
Subordinated debt |
|
|
863,283 |
|
|
|
862,447 |
|
|
|
465,812 |
|
Accrued interest payable and
other liabilities |
|
|
582,674 |
|
|
|
545,050 |
|
|
|
491,962 |
|
Total liabilities |
|
|
36,443,714 |
|
|
|
31,967,242 |
|
|
|
25,903,491 |
|
STOCKHOLDERS' EQUITY
(1) |
|
|
3,999,630 |
|
|
|
3,918,434 |
|
|
|
3,594,951 |
|
Total liabilities and stockholders’ equity |
|
$ |
40,443,344 |
|
|
$ |
35,885,676 |
|
|
$ |
29,498,442 |
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
33.45 |
|
|
$ |
32.77 |
|
|
$ |
30.36 |
|
Tangible book value per share
(2) |
|
$ |
21.31 |
|
|
$ |
22.57 |
|
|
$ |
21.05 |
|
Shares outstanding |
|
|
119,584,854 |
|
|
|
119,579,566 |
|
|
|
118,414,853 |
|
|
|
|
|
|
|
|
(1) Includes net unrealized
gain on securities available-for-sale, net |
|
$ |
65,968 |
|
|
$ |
98,859 |
|
|
$ |
172,523 |
|
(2) Non-GAAP measure. |
|
|
|
|
|
|
PACWEST
BANCORP AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands, except per share data) |
Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
263,662 |
|
|
$ |
246,722 |
|
|
$ |
242,198 |
|
|
$ |
996,457 |
|
|
$ |
993,138 |
|
Investment securities |
|
|
48,469 |
|
|
|
40,780 |
|
|
|
28,843 |
|
|
|
153,468 |
|
|
|
106,770 |
|
Deposits in financial
institutions |
|
|
2,674 |
|
|
|
2,580 |
|
|
|
1,135 |
|
|
|
8,804 |
|
|
|
3,583 |
|
Total interest income |
|
|
314,805 |
|
|
|
290,082 |
|
|
|
272,176 |
|
|
|
1,158,729 |
|
|
|
1,103,491 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
6,622 |
|
|
|
6,417 |
|
|
|
8,454 |
|
|
|
27,808 |
|
|
|
59,663 |
|
Borrowings |
|
|
64 |
|
|
|
101 |
|
|
|
37 |
|
|
|
623 |
|
|
|
8,161 |
|
Subordinated debt |
|
|
7,714 |
|
|
|
7,722 |
|
|
|
4,477 |
|
|
|
26,474 |
|
|
|
21,109 |
|
Total interest expense |
|
|
14,400 |
|
|
|
14,240 |
|
|
|
12,968 |
|
|
|
54,905 |
|
|
|
88,933 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
300,405 |
|
|
|
275,842 |
|
|
|
259,208 |
|
|
|
1,103,824 |
|
|
|
1,014,558 |
|
Provision for credit
losses |
|
|
(6,000 |
) |
|
|
(20,000 |
) |
|
|
10,000 |
|
|
|
(162,000 |
) |
|
|
339,000 |
|
Net interest income after provision for credit losses |
|
|
306,405 |
|
|
|
295,842 |
|
|
|
249,208 |
|
|
|
1,265,824 |
|
|
|
675,558 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
|
|
3,476 |
|
|
|
3,407 |
|
|
|
3,119 |
|
|
|
13,269 |
|
|
|
10,351 |
|
Other commissions and
fees |
|
|
10,633 |
|
|
|
11,792 |
|
|
|
9,974 |
|
|
|
42,287 |
|
|
|
40,347 |
|
Leased equipment income |
|
|
12,602 |
|
|
|
10,943 |
|
|
|
9,440 |
|
|
|
45,746 |
|
|
|
43,628 |
|
Gain on sale of loans and
leases |
|
|
172 |
|
|
|
- |
|
|
|
1,671 |
|
|
|
1,733 |
|
|
|
2,139 |
|
Gain on sale of
securities |
|
|
999 |
|
|
|
515 |
|
|
|
4 |
|
|
|
1,615 |
|
|
|
13,171 |
|
Other income |
|
|
29,500 |
|
|
|
24,688 |
|
|
|
15,642 |
|
|
|
89,277 |
|
|
|
36,424 |
|
Total noninterest income |
|
|
57,382 |
|
|
|
51,345 |
|
|
|
39,850 |
|
|
|
193,927 |
|
|
|
146,060 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
Compensation |
|
|
99,700 |
|
|
|
98,061 |
|
|
|
73,171 |
|
|
|
368,450 |
|
|
|
271,494 |
|
Occupancy |
|
|
14,656 |
|
|
|
14,928 |
|
|
|
14,083 |
|
|
|
58,422 |
|
|
|
57,555 |
|
Data processing |
|
|
8,171 |
|
|
|
7,391 |
|
|
|
6,718 |
|
|
|
30,277 |
|
|
|
26,779 |
|
Other professional
services |
|
|
5,946 |
|
|
|
5,164 |
|
|
|
6,800 |
|
|
|
21,492 |
|
|
|
19,917 |
|
Insurance and assessments |
|
|
5,032 |
|
|
|
3,685 |
|
|
|
5,064 |
|
|
|
17,365 |
|
|
|
22,625 |
|
Intangible asset
amortization |
|
|
3,876 |
|
|
|
2,890 |
|
|
|
3,172 |
|
|
|
12,734 |
|
|
|
14,753 |
|
Leased equipment
depreciation |
|
|
9,569 |
|
|
|
8,603 |
|
|
|
7,501 |
|
|
|
35,755 |
|
|
|
28,865 |
|
Foreclosed assets (income)
expense, net |
|
|
(260 |
) |
|
|
165 |
|
|
|
(272 |
) |
|
|
(213 |
) |
|
|
(17 |
) |
Acquisition, integration and
reorganization costs |
|
|
5,590 |
|
|
|
200 |
|
|
|
1,060 |
|
|
|
9,415 |
|
|
|
1,060 |
|
Customer related expense |
|
|
6,175 |
|
|
|
4,538 |
|
|
|
4,430 |
|
|
|
20,504 |
|
|
|
17,532 |
|
Loan expense |
|
|
5,627 |
|
|
|
4,180 |
|
|
|
3,926 |
|
|
|
17,031 |
|
|
|
13,454 |
|
Goodwill impairment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,470,000 |
|
Other expense |
|
|
12,028 |
|
|
|
9,616 |
|
|
|
10,029 |
|
|
|
46,185 |
|
|
|
40,002 |
|
Total noninterest expense |
|
|
176,110 |
|
|
|
159,421 |
|
|
|
135,682 |
|
|
|
637,417 |
|
|
|
1,984,019 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income
taxes |
|
|
187,677 |
|
|
|
187,766 |
|
|
|
153,376 |
|
|
|
822,334 |
|
|
|
(1,162,401 |
) |
Income tax expense |
|
|
51,632 |
|
|
|
47,770 |
|
|
|
36,546 |
|
|
|
215,375 |
|
|
|
75,173 |
|
Net earnings (loss) |
|
$ |
136,045 |
|
|
$ |
139,996 |
|
|
$ |
116,830 |
|
|
$ |
606,959 |
|
|
$ |
(1,237,574 |
) |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings
(loss) per share |
|
$ |
1.14 |
|
|
$ |
1.17 |
|
|
$ |
0.99 |
|
|
$ |
5.10 |
|
|
$ |
(10.61 |
) |
Dividends declared and paid
per share |
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
1.00 |
|
|
$ |
1.35 |
|
PACWEST BANCORP AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
NET
EARNINGS (LOSS) PER SHARE CALCULATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(In thousands, except per share data) |
Basic Earnings (Loss)
Per Share: |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
$ |
136,045 |
|
|
$ |
139,996 |
|
|
$ |
116,830 |
|
|
$ |
606,959 |
|
|
$ |
(1,237,574 |
) |
Less: earnings allocated to unvested restricted stock (1) |
|
|
(2,311 |
) |
|
|
(2,417 |
) |
|
|
(1,398 |
) |
|
|
(10,248 |
) |
|
|
(1,782 |
) |
Net earnings (loss) allocated to common shares |
|
$ |
133,734 |
|
|
$ |
137,579 |
|
|
$ |
115,432 |
|
|
$ |
596,711 |
|
|
$ |
(1,239,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares and unvested restricted stock
outstanding |
|
|
119,577 |
|
|
|
119,569 |
|
|
|
118,446 |
|
|
|
119,349 |
|
|
|
118,463 |
|
Less: weighted average unvested restricted stock outstanding |
|
|
(2,314 |
) |
|
|
(2,340 |
) |
|
|
(1,652 |
) |
|
|
(2,255 |
) |
|
|
(1,610 |
) |
Weighted average basic shares outstanding |
|
|
117,263 |
|
|
|
117,229 |
|
|
|
116,794 |
|
|
|
117,094 |
|
|
|
116,853 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
$ |
1.14 |
|
|
$ |
1.17 |
|
|
$ |
0.99 |
|
|
$ |
5.10 |
|
|
$ |
(10.61 |
) |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
(Loss) Per Share: |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) allocated to common shares |
|
$ |
133,734 |
|
|
$ |
137,579 |
|
|
$ |
115,432 |
|
|
$ |
596,711 |
|
|
$ |
(1,239,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding |
|
|
117,263 |
|
|
|
117,229 |
|
|
|
116,794 |
|
|
|
117,094 |
|
|
|
116,853 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share |
|
$ |
1.14 |
|
|
$ |
1.17 |
|
|
$ |
0.99 |
|
|
$ |
5.10 |
|
|
$ |
(10.61 |
) |
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
December 31, 2021 |
|
September 30, 2021 |
|
December 31, 2020 |
|
|
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) |
$ |
21,367,665 |
$ |
265,549 |
4.93 |
% |
|
$ |
19,670,671 |
$ |
248,485 |
5.01 |
% |
|
$ |
18,769,214 |
$ |
243,188 |
5.15 |
% |
Investment securities (3) |
|
9,964,568 |
|
50,710 |
2.02 |
% |
|
|
8,047,098 |
|
42,952 |
2.12 |
% |
|
|
4,888,993 |
|
30,757 |
2.50 |
% |
Deposits in financial
institutions |
|
5,961,104 |
|
2,674 |
0.18 |
% |
|
|
5,657,768 |
|
2,580 |
0.18 |
% |
|
|
3,576,335 |
|
1,135 |
0.13 |
% |
Total interest-earning assets (1) |
|
37,293,337 |
|
318,933 |
3.39 |
% |
|
|
33,375,537 |
|
294,017 |
3.50 |
% |
|
|
27,234,542 |
|
275,080 |
4.02 |
% |
Other assets |
|
3,064,810 |
|
|
|
|
2,496,127 |
|
|
|
|
2,100,247 |
|
|
Total assets |
$ |
40,358,147 |
|
|
|
$ |
35,871,664 |
|
|
|
$ |
29,334,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
Interest checking |
$ |
7,767,211 |
|
2,041 |
0.10 |
% |
|
$ |
7,372,859 |
|
2,042 |
0.11 |
% |
|
$ |
5,191,435 |
|
2,064 |
0.16 |
% |
Money market |
|
10,226,366 |
|
3,400 |
0.13 |
% |
|
|
8,662,449 |
|
2,997 |
0.14 |
% |
|
|
7,636,220 |
|
3,225 |
0.17 |
% |
Savings |
|
634,874 |
|
39 |
0.02 |
% |
|
|
620,079 |
|
38 |
0.02 |
% |
|
|
567,646 |
|
35 |
0.02 |
% |
Time |
|
1,421,859 |
|
1,142 |
0.32 |
% |
|
|
1,475,307 |
|
1,340 |
0.36 |
% |
|
|
1,650,150 |
|
3,130 |
0.75 |
% |
Total interest-bearing deposits |
|
20,050,310 |
|
6,622 |
0.13 |
% |
|
|
18,130,694 |
|
6,417 |
0.14 |
% |
|
|
15,045,451 |
|
8,454 |
0.22 |
% |
Borrowings |
|
234,391 |
|
64 |
0.11 |
% |
|
|
238,335 |
|
101 |
0.17 |
% |
|
|
237,098 |
|
37 |
0.06 |
% |
Subordinated debt |
|
862,777 |
|
7,714 |
3.55 |
% |
|
|
862,272 |
|
7,722 |
3.55 |
% |
|
|
463,951 |
|
4,477 |
3.84 |
% |
Total interest-bearing liabilities |
|
21,147,478 |
|
14,400 |
0.27 |
% |
|
|
19,231,301 |
|
14,240 |
0.29 |
% |
|
|
15,746,500 |
|
12,968 |
0.33 |
% |
Noninterest-bearing demand
deposits |
|
14,713,385 |
|
|
|
|
12,198,313 |
|
|
|
|
9,589,789 |
|
|
Other liabilities |
|
543,017 |
|
|
|
|
525,429 |
|
|
|
|
462,075 |
|
|
Total liabilities |
|
36,403,880 |
|
|
|
|
31,955,043 |
|
|
|
|
25,798,364 |
|
|
Stockholders' equity |
|
3,954,267 |
|
|
|
|
3,916,621 |
|
|
|
|
3,536,425 |
|
|
Total liabilities and stockholders' equity |
$ |
40,358,147 |
|
|
|
$ |
35,871,664 |
|
|
|
$ |
29,334,789 |
|
|
Net interest income (1) |
|
$ |
304,533 |
|
|
|
$ |
279,777 |
|
|
|
$ |
262,112 |
|
Net interest spread (1) |
|
|
3.12 |
% |
|
|
|
3.21 |
% |
|
|
|
3.69 |
% |
Net interest margin (1) |
|
|
3.24 |
% |
|
|
|
3.33 |
% |
|
|
|
3.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits (4) |
$ |
34,763,695 |
$ |
6,622 |
0.08 |
% |
|
$ |
30,329,007 |
$ |
6,417 |
0.08 |
% |
|
$ |
24,635,240 |
$ |
8,454 |
0.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax
equivalent. |
(2) Includes net
loan premium amortization of $6.4 million and $2.4 million and net
loan discount accretion of $1.2 for the three months ended
December 31, 2021, September 30, 2021, and December 31, 2020,
respectively. |
(3) Includes
tax-equivalent adjustments of $2.2 million, $2.2 million, and $1.9
million for the three months ended December 31,
2021, September 30, 2021, and December 31, 2020 related to
tax-exempt income on investment securities The federal
statutory tax rate utilized was 21%. |
(4) 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 total deposits
divided by average total deposits. |
PACWEST
BANCORP AND SUBSIDIARIES |
FIVE
QUARTER BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands, except per share data) |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
112,548 |
|
|
$ |
174,585 |
|
|
$ |
179,505 |
|
|
$ |
177,199 |
|
|
$ |
150,464 |
|
Interest-earning deposits in
financial institutions |
|
|
3,944,686 |
|
|
|
3,524,613 |
|
|
|
5,678,587 |
|
|
|
5,517,667 |
|
|
|
3,010,197 |
|
Total cash and cash equivalents |
|
|
4,057,234 |
|
|
|
3,699,198 |
|
|
|
5,858,092 |
|
|
|
5,694,866 |
|
|
|
3,160,661 |
|
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale |
|
|
10,694,458 |
|
|
|
9,276,926 |
|
|
|
7,198,608 |
|
|
|
5,941,690 |
|
|
|
5,235,591 |
|
Federal Home Loan Bank
stock |
|
|
17,250 |
|
|
|
17,250 |
|
|
|
17,250 |
|
|
|
17,250 |
|
|
|
17,250 |
|
Total investment securities |
|
|
10,711,708 |
|
|
|
9,294,176 |
|
|
|
7,215,858 |
|
|
|
5,958,940 |
|
|
|
5,252,841 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
25,554 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans and leases held
for investment |
|
|
23,026,308 |
|
|
|
20,588,255 |
|
|
|
19,580,731 |
|
|
|
19,055,165 |
|
|
|
19,153,357 |
|
Deferred fees, net |
|
|
(84,760 |
) |
|
|
(77,235 |
) |
|
|
(74,474 |
) |
|
|
(75,937 |
) |
|
|
(69,980 |
) |
Total loans and leases held for investment, net of deferred
fees |
|
|
22,941,548 |
|
|
|
20,511,020 |
|
|
|
19,506,257 |
|
|
|
18,979,228 |
|
|
|
19,083,377 |
|
Allowance for loan and lease
losses |
|
|
(200,564 |
) |
|
|
(203,733 |
) |
|
|
(225,600 |
) |
|
|
(292,445 |
) |
|
|
(348,181 |
) |
Total loans and leases held for investment,
net |
|
|
22,740,984 |
|
|
|
20,307,287 |
|
|
|
19,280,657 |
|
|
|
18,686,783 |
|
|
|
18,735,196 |
|
|
|
|
|
|
|
|
|
|
|
|
Equipment leased to others
under operating leases |
|
|
339,150 |
|
|
|
334,275 |
|
|
|
313,574 |
|
|
|
327,413 |
|
|
|
333,846 |
|
Premises and equipment,
net |
|
|
46,740 |
|
|
|
47,246 |
|
|
|
39,541 |
|
|
|
39,622 |
|
|
|
39,234 |
|
Foreclosed assets, net |
|
|
12,843 |
|
|
|
13,364 |
|
|
|
13,227 |
|
|
|
14,298 |
|
|
|
14,027 |
|
Goodwill |
|
|
1,405,736 |
|
|
|
1,204,118 |
|
|
|
1,204,118 |
|
|
|
1,204,092 |
|
|
|
1,078,670 |
|
Core deposit and customer
relationship intangibles, net |
|
|
44,957 |
|
|
|
15,533 |
|
|
|
18,423 |
|
|
|
21,312 |
|
|
|
23,641 |
|
Other assets |
|
|
1,083,992 |
|
|
|
970,479 |
|
|
|
924,497 |
|
|
|
883,653 |
|
|
|
860,326 |
|
Total assets |
|
$ |
40,443,344 |
|
|
$ |
35,885,676 |
|
|
$ |
34,867,987 |
|
|
$ |
32,856,533 |
|
|
$ |
29,498,442 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits |
|
$ |
14,543,133 |
|
|
$ |
12,881,806 |
|
|
$ |
11,252,286 |
|
|
$ |
11,017,462 |
|
|
$ |
9,193,827 |
|
Interest-bearing deposits |
|
|
20,454,624 |
|
|
|
17,677,939 |
|
|
|
18,394,748 |
|
|
|
17,205,829 |
|
|
|
15,746,890 |
|
Total deposits |
|
|
34,997,757 |
|
|
|
30,559,745 |
|
|
|
29,647,034 |
|
|
|
28,223,291 |
|
|
|
24,940,717 |
|
Borrowings |
|
|
- |
|
|
|
- |
|
|
|
6,625 |
|
|
|
19,750 |
|
|
|
5,000 |
|
Subordinated debt |
|
|
863,283 |
|
|
|
862,447 |
|
|
|
861,788 |
|
|
|
465,814 |
|
|
|
465,812 |
|
Accrued interest payable and
other liabilities |
|
|
582,674 |
|
|
|
545,050 |
|
|
|
505,859 |
|
|
|
493,541 |
|
|
|
491,962 |
|
Total liabilities |
|
|
36,443,714 |
|
|
|
31,967,242 |
|
|
|
31,021,306 |
|
|
|
29,202,396 |
|
|
|
25,903,491 |
|
STOCKHOLDERS' EQUITY
(1) |
|
|
3,999,630 |
|
|
|
3,918,434 |
|
|
|
3,846,681 |
|
|
|
3,654,137 |
|
|
|
3,594,951 |
|
Total liabilities and stockholders’ equity |
|
$ |
40,443,344 |
|
|
$ |
35,885,676 |
|
|
$ |
34,867,987 |
|
|
$ |
32,856,533 |
|
|
$ |
29,498,442 |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
33.45 |
|
|
$ |
32.77 |
|
|
$ |
32.17 |
|
|
$ |
30.68 |
|
|
$ |
30.36 |
|
Tangible book value per share
(2) |
|
$ |
21.31 |
|
|
$ |
22.57 |
|
|
$ |
21.95 |
|
|
$ |
20.39 |
|
|
$ |
21.05 |
|
Shares outstanding |
|
|
119,584,854 |
|
|
|
119,579,566 |
|
|
|
119,555,102 |
|
|
|
119,105,642 |
|
|
|
118,414,853 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes net unrealized
gain on securities available-for-sale, net |
|
$ |
65,968 |
|
|
$ |
98,859 |
|
|
$ |
145,516 |
|
|
$ |
106,381 |
|
|
$ |
172,523 |
|
(2) Non-GAAP measure. |
|
|
|
|
|
|
|
|
|
|
PACWEST
BANCORP AND SUBSIDIARIES |
FIVE
QUARTER STATEMENT OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands, except per share data) |
Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans and leases |
|
$ |
263,662 |
|
|
$ |
246,722 |
|
|
$ |
244,529 |
|
|
$ |
241,544 |
|
|
$ |
242,198 |
|
Investment securities |
|
|
48,469 |
|
|
|
40,780 |
|
|
|
33,954 |
|
|
|
30,265 |
|
|
|
28,843 |
|
Deposits in financial
institutions |
|
|
2,674 |
|
|
|
2,580 |
|
|
|
2,022 |
|
|
|
1,528 |
|
|
|
1,135 |
|
Total interest income |
|
|
314,805 |
|
|
|
290,082 |
|
|
|
280,505 |
|
|
|
273,337 |
|
|
|
272,176 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
6,622 |
|
|
|
6,417 |
|
|
|
7,269 |
|
|
|
7,500 |
|
|
|
8,454 |
|
Borrowings |
|
|
64 |
|
|
|
101 |
|
|
|
265 |
|
|
|
193 |
|
|
|
37 |
|
Subordinated debt |
|
|
7,714 |
|
|
|
7,722 |
|
|
|
6,663 |
|
|
|
4,375 |
|
|
|
4,477 |
|
Total interest expense |
|
|
14,400 |
|
|
|
14,240 |
|
|
|
14,197 |
|
|
|
12,068 |
|
|
|
12,968 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
300,405 |
|
|
|
275,842 |
|
|
|
266,308 |
|
|
|
261,269 |
|
|
|
259,208 |
|
Provision for credit
losses |
|
|
(6,000 |
) |
|
|
(20,000 |
) |
|
|
(88,000 |
) |
|
|
(48,000 |
) |
|
|
10,000 |
|
Net interest income after provision for credit losses |
|
|
306,405 |
|
|
|
295,842 |
|
|
|
354,308 |
|
|
|
309,269 |
|
|
|
249,208 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
|
|
3,476 |
|
|
|
3,407 |
|
|
|
3,452 |
|
|
|
2,934 |
|
|
|
3,119 |
|
Other commissions and
fees |
|
|
10,633 |
|
|
|
11,792 |
|
|
|
10,704 |
|
|
|
9,158 |
|
|
|
9,974 |
|
Leased equipment income |
|
|
12,602 |
|
|
|
10,943 |
|
|
|
10,847 |
|
|
|
11,354 |
|
|
|
9,440 |
|
Gain on sale of loans and
leases |
|
|
172 |
|
|
|
- |
|
|
|
1,422 |
|
|
|
139 |
|
|
|
1,671 |
|
Gain on sale of
securities |
|
|
999 |
|
|
|
515 |
|
|
|
- |
|
|
|
101 |
|
|
|
4 |
|
Other income |
|
|
29,500 |
|
|
|
24,688 |
|
|
|
13,946 |
|
|
|
21,143 |
|
|
|
15,642 |
|
Total noninterest income |
|
|
57,382 |
|
|
|
51,345 |
|
|
|
40,371 |
|
|
|
44,829 |
|
|
|
39,850 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
Compensation |
|
|
99,700 |
|
|
|
98,061 |
|
|
|
90,807 |
|
|
|
79,882 |
|
|
|
73,171 |
|
Occupancy |
|
|
14,656 |
|
|
|
14,928 |
|
|
|
14,784 |
|
|
|
14,054 |
|
|
|
14,083 |
|
Data processing |
|
|
8,171 |
|
|
|
7,391 |
|
|
|
7,758 |
|
|
|
6,957 |
|
|
|
6,718 |
|
Other professional
services |
|
|
5,946 |
|
|
|
5,164 |
|
|
|
5,256 |
|
|
|
5,126 |
|
|
|
6,800 |
|
Insurance and assessments |
|
|
5,032 |
|
|
|
3,685 |
|
|
|
3,745 |
|
|
|
4,903 |
|
|
|
5,064 |
|
Intangible asset
amortization |
|
|
3,876 |
|
|
|
2,890 |
|
|
|
2,889 |
|
|
|
3,079 |
|
|
|
3,172 |
|
Leased equipment
depreciation |
|
|
9,569 |
|
|
|
8,603 |
|
|
|
8,614 |
|
|
|
8,969 |
|
|
|
7,501 |
|
Foreclosed assets (income)
expense, net |
|
|
(260 |
) |
|
|
165 |
|
|
|
(119 |
) |
|
|
1 |
|
|
|
(272 |
) |
Acquisition, integration and
reorganization costs |
|
|
5,590 |
|
|
|
200 |
|
|
|
200 |
|
|
|
3,425 |
|
|
|
1,060 |
|
Customer related expense |
|
|
6,175 |
|
|
|
4,538 |
|
|
|
4,973 |
|
|
|
4,818 |
|
|
|
4,430 |
|
Loan expense |
|
|
5,627 |
|
|
|
4,180 |
|
|
|
4,031 |
|
|
|
3,193 |
|
|
|
3,926 |
|
Other expense |
|
|
12,028 |
|
|
|
9,616 |
|
|
|
8,812 |
|
|
|
15,729 |
|
|
|
10,029 |
|
Total noninterest expense |
|
|
176,110 |
|
|
|
159,421 |
|
|
|
151,750 |
|
|
|
150,136 |
|
|
|
135,682 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes |
|
|
187,677 |
|
|
|
187,766 |
|
|
|
242,929 |
|
|
|
203,962 |
|
|
|
153,376 |
|
Income tax expense |
|
|
51,632 |
|
|
|
47,770 |
|
|
|
62,417 |
|
|
|
53,556 |
|
|
|
36,546 |
|
Net earnings |
|
$ |
136,045 |
|
|
$ |
139,996 |
|
|
$ |
180,512 |
|
|
$ |
150,406 |
|
|
$ |
116,830 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per
share |
|
$ |
1.14 |
|
|
$ |
1.17 |
|
|
$ |
1.52 |
|
|
$ |
1.27 |
|
|
$ |
0.99 |
|
Dividends declared and paid
per share |
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
PACWEST
BANCORP AND SUBSIDIARIES |
FIVE
QUARTER SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands) |
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
|
1.34 |
% |
|
|
1.55 |
% |
|
|
2.11 |
% |
|
|
1.94 |
% |
|
|
1.58 |
% |
Pre-provision, pre-goodwill impairment, pre-tax net revenue
("PPNR") return on average assets (1)(2) |
|
|
1.79 |
% |
|
|
1.86 |
% |
|
|
1.81 |
% |
|
|
2.01 |
% |
|
|
2.22 |
% |
Return on average equity (1) |
|
|
13.65 |
% |
|
|
14.18 |
% |
|
|
19.36 |
% |
|
|
16.86 |
% |
|
|
13.14 |
% |
Return on average tangible equity (1)(2) |
|
|
22.06 |
% |
|
|
21.03 |
% |
|
|
29.25 |
% |
|
|
25.67 |
% |
|
|
19.63 |
% |
Efficiency ratio |
|
|
46.2 |
% |
|
|
47.2 |
% |
|
|
47.9 |
% |
|
|
46.4 |
% |
|
|
43.6 |
% |
Noninterest expense as a percentage of average assets (1) |
|
|
1.73 |
% |
|
|
1.76 |
% |
|
|
1.77 |
% |
|
|
1.94 |
% |
|
|
1.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
Average Yields/Costs
(1): |
|
|
|
|
|
|
|
|
|
|
Yield on: |
|
|
|
|
|
|
|
|
|
|
Average loans and leases (3) |
|
|
4.93 |
% |
|
|
5.01 |
% |
|
|
5.18 |
% |
|
|
5.20 |
% |
|
|
5.15 |
% |
Average investment securities (3) |
|
|
2.02 |
% |
|
|
2.12 |
% |
|
|
2.23 |
% |
|
|
2.44 |
% |
|
|
2.50 |
% |
Average interest-earning assets (3) |
|
|
3.39 |
% |
|
|
3.50 |
% |
|
|
3.57 |
% |
|
|
3.86 |
% |
|
|
4.02 |
% |
Cost of: |
|
|
|
|
|
|
|
|
|
|
Average interest-bearing deposits |
|
|
0.13 |
% |
|
|
0.14 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.22 |
% |
Average total deposits |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.11 |
% |
|
|
0.14 |
% |
Average interest-bearing liabilities |
|
|
0.27 |
% |
|
|
0.29 |
% |
|
|
0.30 |
% |
|
|
0.29 |
% |
|
|
0.33 |
% |
Net interest spread (3) |
|
|
3.12 |
% |
|
|
3.21 |
% |
|
|
3.27 |
% |
|
|
3.57 |
% |
|
|
3.69 |
% |
Net interest margin (3) |
|
|
3.24 |
% |
|
|
3.33 |
% |
|
|
3.40 |
% |
|
|
3.69 |
% |
|
|
3.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
Average
Balances: |
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
Loans and leases, net of deferred fees |
|
$ |
21,367,665 |
|
|
$ |
19,670,671 |
|
|
$ |
19,057,420 |
|
|
$ |
18,927,314 |
|
|
$ |
18,769,214 |
|
Investment securities |
|
|
9,964,568 |
|
|
|
8,047,098 |
|
|
|
6,492,721 |
|
|
|
5,383,140 |
|
|
|
4,888,993 |
|
Deposits in financial institutions |
|
|
5,961,104 |
|
|
|
5,657,768 |
|
|
|
6,347,764 |
|
|
|
4,790,231 |
|
|
|
3,576,335 |
|
Interest-earning assets |
|
|
37,293,337 |
|
|
|
33,375,537 |
|
|
|
31,897,905 |
|
|
|
29,100,685 |
|
|
|
27,234,542 |
|
Total assets |
|
|
40,358,147 |
|
|
|
35,871,664 |
|
|
|
34,326,112 |
|
|
|
31,415,882 |
|
|
|
29,334,789 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
14,713,385 |
|
|
|
12,198,313 |
|
|
|
11,304,757 |
|
|
|
10,173,459 |
|
|
|
9,589,789 |
|
Interest-bearing deposits |
|
|
20,050,310 |
|
|
|
18,130,694 |
|
|
|
17,817,053 |
|
|
|
16,044,091 |
|
|
|
15,045,451 |
|
Total deposits |
|
|
34,763,695 |
|
|
|
30,329,007 |
|
|
|
29,121,810 |
|
|
|
26,217,550 |
|
|
|
24,635,240 |
|
Borrowings |
|
|
234,391 |
|
|
|
238,335 |
|
|
|
225,446 |
|
|
|
226,053 |
|
|
|
237,098 |
|
Subordinated debt |
|
|
862,777 |
|
|
|
862,272 |
|
|
|
735,725 |
|
|
|
466,101 |
|
|
|
463,951 |
|
Interest-bearing liabilities |
|
|
21,147,478 |
|
|
|
19,231,301 |
|
|
|
18,778,224 |
|
|
|
17,136,245 |
|
|
|
15,746,500 |
|
Stockholders' equity |
|
|
3,954,267 |
|
|
|
3,916,621 |
|
|
|
3,739,042 |
|
|
|
3,617,248 |
|
|
|
3,536,425 |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Annualized. |
(2) Non-GAAP
measure. |
(3) Tax
equivalent. |
PACWEST
BANCORP AND SUBSIDIARIES |
FIVE
QUARTER SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands) |
Credit Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and leases held for investment to loans and leases
held for investment |
|
|
0.27 |
% |
|
|
0.31 |
% |
|
|
0.29 |
% |
|
|
0.36 |
% |
|
|
0.48 |
% |
Nonperforming assets to loans and leases held for investment and
foreclosed assets |
|
|
0.32 |
% |
|
|
0.38 |
% |
|
|
0.36 |
% |
|
|
0.43 |
% |
|
|
0.55 |
% |
Classified loans and leases held for investment to loans and leases
held for investment |
|
|
0.51 |
% |
|
|
0.69 |
% |
|
|
0.75 |
% |
|
|
0.86 |
% |
|
|
1.39 |
% |
Provision for credit losses (for the quarter) to average loans and
leases held for investment (annualized) |
|
|
(0.11 |
)% |
|
|
(0.40 |
)% |
|
|
(1.85 |
)% |
|
|
(1.03 |
)% |
|
|
0.21 |
% |
Net charge-offs (for the quarter) to average loans and leases held
for investment (annualized) |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
(0.11 |
)% |
|
|
0.06 |
% |
|
|
0.40 |
% |
Trailing 12 months net charge-offs to average loans and leases held
for investment |
|
|
(0.01 |
)% |
|
|
0.09 |
% |
|
|
0.27 |
% |
|
|
0.37 |
% |
|
|
0.45 |
% |
Allowance for loan and lease losses to loans and leases held for
investment |
|
|
0.87 |
% |
|
|
0.99 |
% |
|
|
1.16 |
% |
|
|
1.54 |
% |
|
|
1.82 |
% |
Allowance for credit losses to loans and leases held for
investment |
|
|
1.19 |
% |
|
|
1.36 |
% |
|
|
1.54 |
% |
|
|
2.02 |
% |
|
|
2.27 |
% |
Allowance for credit losses to nonaccrual loans and leases held for
investment |
|
|
447.3 |
% |
|
|
433.8 |
% |
|
|
528.4 |
% |
|
|
566.2 |
% |
|
|
475.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp
Consolidated: |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio (1) |
|
|
6.84 |
% |
|
|
8.05 |
% |
|
|
7.67 |
% |
|
|
7.95 |
% |
|
|
8.55 |
% |
Common equity tier 1 capital ratio (1) |
|
|
8.86 |
% |
|
|
10.15 |
% |
|
|
10.41 |
% |
|
|
10.39 |
% |
|
|
10.53 |
% |
Tier 1 capital ratio (1) |
|
|
9.32 |
% |
|
|
10.65 |
% |
|
|
10.41 |
% |
|
|
10.39 |
% |
|
|
10.53 |
% |
Total capital ratio (1) |
|
|
12.69 |
% |
|
|
14.36 |
% |
|
|
14.99 |
% |
|
|
13.60 |
% |
|
|
13.76 |
% |
Risk-weighted assets (1) |
|
$ |
28,508,808 |
|
|
$ |
26,057,583 |
|
|
$ |
24,274,256 |
|
|
$ |
23,012,350 |
|
|
$ |
22,837,693 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets ratio |
|
|
9.89 |
% |
|
|
10.92 |
% |
|
|
11.03 |
% |
|
|
11.12 |
% |
|
|
12.19 |
% |
Tangible common equity ratio (2) |
|
|
6.54 |
% |
|
|
7.79 |
% |
|
|
7.80 |
% |
|
|
7.68 |
% |
|
|
8.78 |
% |
Book value per share |
|
$ |
33.45 |
|
|
$ |
32.77 |
|
|
$ |
32.17 |
|
|
$ |
30.68 |
|
|
$ |
30.36 |
|
Tangible book value per share (2) |
|
$ |
21.31 |
|
|
$ |
22.57 |
|
|
$ |
21.95 |
|
|
$ |
20.39 |
|
|
$ |
21.05 |
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Western
Bank: |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital ratio (1) |
|
|
7.00 |
% |
|
|
8.40 |
% |
|
|
8.47 |
% |
|
|
8.83 |
% |
|
|
9.53 |
% |
Common equity tier 1 capital ratio (1) |
|
|
9.56 |
% |
|
|
11.12 |
% |
|
|
11.51 |
% |
|
|
11.54 |
% |
|
|
11.73 |
% |
Tier 1 capital ratio (1) |
|
|
9.56 |
% |
|
|
11.12 |
% |
|
|
11.51 |
% |
|
|
11.54 |
% |
|
|
11.73 |
% |
Total capital ratio (1) |
|
|
11.80 |
% |
|
|
13.59 |
% |
|
|
14.22 |
% |
|
|
12.80 |
% |
|
|
12.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Capital
information for December 31, 2021 is preliminary. |
(2) Non-GAAP
measure. |
|
GAAP TO NON-GAAP
RECONCILIATIONS
This press release contains certain non-GAAP
financial disclosures for: (1) Pre-provision, pre-goodwill
impairment, pre-tax net revenue (“PPNR”), (2) PPNR return on
average assets (3) return on average tangible equity, (4) tangible
common equity ratio, and (5) 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,
tangible book value per share, and PPNR is prevalent among banking
regulators, investors, and analysts. Accordingly, we disclose the
non-GAAP measures in addition to the related GAAP measures of: (1)
net earnings, (2) return on average assets, (3) return on average
equity, (4) equity to assets ratio, and (5) 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 |
|
Year Ended |
PPNR and PPNR
Return |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
on Average Assets |
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands) |
Net earnings (loss) |
|
$ |
136,045 |
|
|
$ |
139,996 |
|
|
$ |
116,830 |
|
|
$ |
606,959 |
|
|
$ |
(1,237,574 |
) |
Add: Provision for credit
losses |
|
|
(6,000 |
) |
|
|
(20,000 |
) |
|
|
10,000 |
|
|
|
(162,000 |
) |
|
|
339,000 |
|
Add: Goodwill impairment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,470,000 |
|
Add: Income tax expense |
|
|
51,632 |
|
|
|
47,770 |
|
|
|
36,546 |
|
|
|
215,375 |
|
|
|
75,173 |
|
Pre-provision, pre-goodwill impairment, pre-tax net revenue
("PPNR") |
|
$ |
181,677 |
|
|
$ |
167,766 |
|
|
$ |
163,376 |
|
|
$ |
660,334 |
|
|
$ |
646,599 |
|
|
|
|
|
|
|
|
|
|
|
|
Average assets |
|
$ |
40,358,147 |
|
|
$ |
35,871,664 |
|
|
$ |
29,334,789 |
|
|
$ |
35,518,488 |
|
|
$ |
27,752,412 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(1) |
|
|
1.34 |
% |
|
|
1.55 |
% |
|
|
1.58 |
% |
|
|
1.71 |
% |
|
|
(4.46 |
)% |
PPNR return on average assets
(2) |
|
|
1.79 |
% |
|
|
1.86 |
% |
|
|
2.22 |
% |
|
|
1.86 |
% |
|
|
2.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized
net earnings (loss) divided by average assets. |
(2) Annualized
PPNR divided by average assets. |
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
Return on Average Tangible Equity |
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands) |
Net earnings (loss) |
|
$ |
136,045 |
|
|
$ |
139,996 |
|
|
$ |
116,830 |
|
|
$ |
606,959 |
|
|
$ |
(1,237,574 |
) |
Add: Intangible asset
amortization |
|
|
3,876 |
|
|
|
2,890 |
|
|
|
3,172 |
|
|
|
12,734 |
|
|
|
14,753 |
|
Add: Goodwill impairment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,470,000 |
|
Adjusted net earnings |
|
$ |
139,921 |
|
|
$ |
142,886 |
|
|
$ |
120,002 |
|
|
$ |
619,693 |
|
|
$ |
247,179 |
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity |
|
$ |
3,954,267 |
|
|
$ |
3,916,621 |
|
|
$ |
3,536,425 |
|
|
$ |
3,808,019 |
|
|
$ |
3,857,610 |
|
Less: Average intangible
assets |
|
|
1,437,780 |
|
|
|
1,221,253 |
|
|
|
1,103,945 |
|
|
|
1,269,546 |
|
|
|
1,470,989 |
|
Average tangible common equity |
|
$ |
2,516,487 |
|
|
$ |
2,695,368 |
|
|
$ |
2,432,480 |
|
|
$ |
2,538,473 |
|
|
$ |
2,386,621 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity
(1) |
|
|
13.65 |
% |
|
|
14.18 |
% |
|
|
13.14 |
% |
|
|
15.94 |
% |
|
|
(32.08 |
)% |
Return on average tangible
equity (2) |
|
|
22.06 |
% |
|
|
21.03 |
% |
|
|
19.63 |
% |
|
|
24.41 |
% |
|
|
10.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized
net earnings divided by average stockholders' equity. |
(2) Annualized
adjusted net earnings divided by average tangible common
equity. |
Tangible Common Equity
Ratio/ |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
Tangible Book Value Per Share |
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Dollars in thousands, except per share data) |
Stockholders' equity |
|
$ |
3,999,630 |
|
|
$ |
3,918,434 |
|
|
$ |
3,846,681 |
|
|
$ |
3,654,137 |
|
|
$ |
3,594,951 |
|
Less: Intangible assets |
|
|
1,450,693 |
|
|
|
1,219,651 |
|
|
|
1,222,541 |
|
|
|
1,225,404 |
|
|
|
1,102,311 |
|
Tangible common equity |
|
$ |
2,548,937 |
|
|
$ |
2,698,783 |
|
|
$ |
2,624,140 |
|
|
$ |
2,428,733 |
|
|
$ |
2,492,640 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
40,443,344 |
|
|
$ |
35,885,676 |
|
|
$ |
34,867,987 |
|
|
$ |
32,856,533 |
|
|
$ |
29,498,442 |
|
Less: Intangible assets |
|
|
1,450,693 |
|
|
|
1,219,651 |
|
|
|
1,222,541 |
|
|
|
1,225,404 |
|
|
|
1,102,311 |
|
Tangible assets |
|
$ |
38,992,651 |
|
|
$ |
34,666,025 |
|
|
$ |
33,645,446 |
|
|
$ |
31,631,129 |
|
|
$ |
28,396,131 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets ratio |
|
|
9.89 |
% |
|
|
10.92 |
% |
|
|
11.03 |
% |
|
|
11.12 |
% |
|
|
12.19 |
% |
Tangible common equity ratio
(1) |
|
|
6.54 |
% |
|
|
7.79 |
% |
|
|
7.80 |
% |
|
|
7.68 |
% |
|
|
8.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
33.45 |
|
|
$ |
32.77 |
|
|
$ |
32.17 |
|
|
$ |
30.68 |
|
|
$ |
30.36 |
|
Tangible book value per share
(2) |
|
$ |
21.31 |
|
|
$ |
22.57 |
|
|
$ |
21.95 |
|
|
$ |
20.39 |
|
|
$ |
21.05 |
|
Shares outstanding |
|
|
119,584,854 |
|
|
|
119,579,566 |
|
|
|
119,555,102 |
|
|
|
119,105,642 |
|
|
|
118,414,853 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible
common equity divided by tangible assets. |
(2) Tangible
common equity divided by shares outstanding. |
|
CONTACTS
Matthew P. Wagner President and CEO
303.802.8900 |
Bart
R. Olson EVP and CFO 714.989.4149 |
William J. Black EVP Strategy and Corporate
Development 919.597.7466 |
PacWest Bancorp (NASDAQ:PACW)
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