LOS ANGELES, Jan. 26, 2023 (GLOBE NEWSWIRE) --
PacWest Bancorp (Nasdaq: PACW) -
FOURTH QUARTER 2022
RESULTS
$39.6M |
$0.33 |
14.39% |
8.70% |
Net Earnings Available to Common Stockholders |
Diluted Earnings
per Common Share |
ROATCE |
CET1 |
FOURTH QUARTER 2022
HIGHLIGHTS
- Announced leadership transition with Paul Taylor as President
and CEO and Kevin Thompson as CFO
- Strategically sold $1 billion of available-for-sale securities
for a loss of $49 million to pay down FHLB borrowings and to
improve the capital and liquidity position of the Bank
- Recorded goodwill impairment of $29 million related to Civic as
part of a strategy to restructure this lending subsidiary
- Shut down Premium Finance and Multi-Family lending groups as
part of a strategy to focus on relationship-based community
banking, which will result in cost savings and improved
capital
- Recorded early retirement benefits and severance expense of
$5.7 million as a first step in operational efficiency
initiative
- All risk-based capital ratios increased from 3Q22, with CET1
increasing from 8.56% to 8.70%
- Credit metrics remain steady with nonperforming assets ratio of
38 basis points
FULL YEAR 2022 RESULTS
$404.3M |
$3.37 |
21.04% |
51.0% |
Net Earnings Available to Common Stockholders |
Diluted Earnings
per Common Share |
ROATCE |
Efficiency Ratio |
FULL YEAR 2022 HIGHLIGHTS
- Loan growth of $5.7 billion; up 24.7% from 2021
- Net interest income (TE) of $1.3 billion in 2022 vs. $1.1
billion in 2021; up 16.6%
- Strong earnings allowed us to return $140 million to our
stockholders through dividends
CEO COMMENTARY
Paul Taylor, President and CEO, commented, “In the
fourth quarter, we initiated a new strategic plan designed to
maximize shareholder value by strengthening our community bank
focus, exiting non-core products, and improving our operational
efficiency. The first strategic step we took was to sell $1 billion
of available-for-sale securities, resulting in a loss on sale of
$49 million. The proceeds were used to pay down FHLB borrowings and
to improve the capital and liquidity position of the Bank going
forward. Secondly, we recorded goodwill impairment of $29 million
related to Civic as part of a strategy to restructure this lending
subsidiary. Goodwill is a non-cash charge and has no impact on our
regulatory capital ratios, cash flows, or liquidity position. We
believe these actions will result in an improvement in the
profitability and risk profile of Civic going forward. Next, we are
slowing loan growth to preserve capital and strengthen our balance
sheet, including shutting down our operations in our Premium
Finance and Multi-Family lending groups. Finally, we are working to
improve the overall operational efficiency of the Bank. As a first
step in this initiative, we recorded early retirement benefits and
severance expense of $5.7 million.”
“PacWest is a strong organization with
extraordinary clients and has a talented and loyal team. Credit
quality remains strong as evidenced by credit metrics such as
nonperforming assets of 38 basis points and net charge-offs of four
basis points for the quarter and two basis points for the year. As
we head into 2023, our priority is to refocus on core
relationship-based community banking, which is expected to result
in increased core deposits, increased capital ratios, and an
improved efficiency ratio, and allow us to maintain our credit
quality at the current favorable levels.”
FINANCIAL HIGHLIGHTS
|
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|
|
|
|
|
|
|
|
|
|
At or For
the |
|
|
|
At or For
the |
|
|
|
Three Months Ended |
|
|
|
Year
Ended |
|
|
|
December
31, |
|
September
30, |
|
Increase |
|
December 31, |
|
Increase |
Financial Highlights (1) |
|
2022 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
2022 |
|
|
|
2021 |
|
|
(Decrease) |
|
(Dollars
in thousands, except per share data) |
Net earnings
available to |
|
|
|
|
|
|
|
|
|
|
|
common stockholders |
$ |
39,562 |
|
|
$ |
122,224 |
|
|
$ |
(82,662 |
) |
|
$ |
404,274 |
|
|
$ |
606,959 |
|
|
$ |
(202,685 |
) |
Diluted
earnings per |
|
|
|
|
|
|
|
|
|
|
|
common share |
$ |
0.33 |
|
|
$ |
1.02 |
|
|
$ |
(0.69 |
) |
|
$ |
3.37 |
|
|
$ |
5.10 |
|
|
$ |
(1.73 |
) |
Pre-provision, pre-goodwill |
|
|
|
|
|
|
|
|
|
|
|
impairment, pre-tax net |
|
|
|
|
|
|
|
|
|
|
|
revenue ("PPNR") (2) |
$ |
106,151 |
|
|
$ |
178,182 |
|
|
$ |
(72,031 |
) |
|
$ |
621,068 |
|
|
$ |
660,334 |
|
|
$ |
(39,266 |
) |
Return on
average assets |
|
0.48 |
% |
|
|
1.28 |
% |
|
|
(0.80 |
) |
|
|
1.05 |
% |
|
|
1.71 |
% |
|
|
(0.66 |
) |
PPNR return
on average |
|
|
|
|
|
|
|
|
|
|
|
assets (2) |
|
1.02 |
% |
|
|
1.73 |
% |
|
|
(0.71 |
) |
|
|
1.53 |
% |
|
|
1.86 |
% |
|
|
(0.33 |
) |
Return on
average |
|
|
|
|
|
|
|
|
|
|
|
tangible common equity (2) |
|
14.39 |
% |
|
|
24.11 |
% |
|
|
(9.72 |
) |
|
|
21.04 |
% |
|
|
24.41 |
% |
|
|
(3.37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Yield on
average loans and |
|
|
|
|
|
|
|
|
|
|
|
leases (tax equivalent) |
|
5.73 |
% |
|
|
5.12 |
% |
|
|
0.61 |
|
|
|
5.07 |
% |
|
|
5.08 |
% |
|
|
(0.01 |
) |
Cost of
average total |
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
1.37 |
% |
|
|
0.70 |
% |
|
|
0.67 |
|
|
|
0.59 |
% |
|
|
0.09 |
% |
|
|
0.50 |
|
Net interest
margin ("NIM") |
|
|
|
|
|
|
|
|
|
|
|
(tax equivalent) |
|
3.41 |
% |
|
|
3.57 |
% |
|
|
(0.16 |
) |
|
|
3.49 |
% |
|
|
3.40 |
% |
|
|
0.09 |
|
Efficiency
ratio |
|
53.3 |
% |
|
|
51.0 |
% |
|
|
2.3 |
|
|
|
51.0 |
% |
|
|
46.9 |
% |
|
|
4.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
41,228,936 |
|
|
$ |
41,404,592 |
|
|
$ |
(175,656 |
) |
|
$ |
41,228,936 |
|
|
$ |
40,443,344 |
|
|
$ |
785,592 |
|
Loans and
leases held |
|
|
|
|
|
|
|
|
|
|
|
for investment, |
|
|
|
|
|
|
|
|
|
|
|
net of deferred fees |
$ |
28,609,129 |
|
|
$ |
27,660,041 |
|
|
$ |
949,088 |
|
|
$ |
28,609,129 |
|
|
$ |
22,941,548 |
|
|
$ |
5,667,581 |
|
Noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
demand deposits |
$ |
11,212,357 |
|
|
$ |
12,775,756 |
|
|
$ |
(1,563,399 |
) |
|
$ |
11,212,357 |
|
|
$ |
14,543,133 |
|
|
$ |
(3,330,776 |
) |
Core
deposits |
$ |
26,561,129 |
|
|
$ |
28,559,310 |
|
|
$ |
(1,998,181 |
) |
|
$ |
26,561,129 |
|
|
$ |
32,734,949 |
|
|
$ |
(6,173,820 |
) |
Total
deposits |
$ |
33,936,334 |
|
|
$ |
34,195,872 |
|
|
$ |
(259,538 |
) |
|
$ |
33,936,334 |
|
|
$ |
34,997,757 |
|
|
$ |
(1,061,423 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
As
percentage of total |
|
|
|
|
|
|
|
|
|
|
|
deposits: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
demand deposits |
|
33 |
% |
|
|
37 |
% |
|
|
(4 |
) |
|
|
33 |
% |
|
|
41 |
% |
|
|
(8 |
) |
Core deposits |
|
78 |
% |
|
|
83 |
% |
|
|
(5 |
) |
|
|
78 |
% |
|
|
93 |
% |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets ratio |
|
9.58 |
% |
|
|
9.36 |
% |
|
|
0.22 |
|
|
|
9.58 |
% |
|
|
9.89 |
% |
|
|
(0.31 |
) |
Common
equity tier 1 |
|
|
|
|
|
|
|
|
|
|
|
capital ratio |
|
8.70 |
% |
|
|
8.56 |
% |
|
|
0.14 |
|
|
|
8.70 |
% |
|
|
8.86 |
% |
|
|
(0.16 |
) |
Tier 1
capital ratio |
|
10.60 |
% |
|
|
10.46 |
% |
|
|
0.14 |
|
|
|
10.60 |
% |
|
|
9.32 |
% |
|
|
1.28 |
|
Total
capital ratio |
|
13.61 |
% |
|
|
13.43 |
% |
|
|
0.18 |
|
|
|
13.61 |
% |
|
|
12.69 |
% |
|
|
0.92 |
|
Tangible
common equity |
|
|
|
|
|
|
|
|
|
|
|
ratio (2) |
|
5.13 |
% |
|
|
4.85 |
% |
|
|
0.28 |
|
|
|
5.13 |
% |
|
|
6.54 |
% |
|
|
(1.41 |
) |
Tangible
book value per |
|
|
|
|
|
|
|
|
|
|
|
common share (2) |
$ |
17.00 |
|
|
$ |
16.11 |
|
|
$ |
0.89 |
|
|
$ |
17.00 |
|
|
$ |
21.31 |
|
|
$ |
(4.31 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1) The operations of
the HOA 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 decreased by $12.2 million to
$322.9 million for the fourth quarter of 2022 compared to $335.2
million for the third quarter of 2022 due mainly to higher interest
expense on deposits and borrowings, offset partially by higher
interest income on loans and leases and deposits in financial
institutions. Interest income on loans and leases increased by
$58.4 million in the fourth quarter of 2022 due to a 61 basis
points increase in the tax equivalent yield on average loans and
leases and a $1.2 billion increase in the average balance of loans
and leases compared to the third quarter of 2022. Interest income
on deposits in financial institutions increased by $7.4 million in
the fourth quarter of 2022 due mainly to a 147 basis points
increase in the yield on average deposits in financial
institutions. The tax equivalent yield on average loans and leases
was 5.73% for the fourth quarter of 2022 compared to 5.12% for the
third quarter of 2022. The increase in the tax equivalent yield on
average loans and leases was due primarily to higher coupon
interest attributable to increased rates on production and on
existing variable rate loans. Interest expense on deposits
increased by $56.3 million in the fourth quarter of 2022 due mainly
to increased market rates that contributed to a 67 basis points
increase in the cost of average total deposits. Interest expense on
borrowings increased by $16.9 million due to a $1.2 billion
increase in the average balance and a 231 basis points increase in
the cost of average borrowings attributable mainly to having a full
quarter of the higher-cost credit-linked notes outstanding.
The tax equivalent NIM was 3.41% for the fourth
quarter of 2022 compared to 3.57% for the third quarter of 2022.
The decrease in the NIM was due mainly to a higher cost of average
interest-bearing liabilities due primarily to a $1.7 billion
decrease in the average balance of core deposits and an increase in
average time deposits, offset partially by higher yields on average
loans and leases and deposits in financial institutions.
The cost of average total deposits was 1.37% for
the fourth quarter of 2022 compared to 0.70% for the third quarter
of 2022 due mainly to higher market interest rates and an increase
in the average balance of time deposits.
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 |
|
2022 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Addition to
allowance for |
|
|
|
|
|
loan and lease losses |
$ |
14,000 |
|
|
$ |
3,000 |
|
|
$ |
11,000 |
|
Reduction in
reserve for |
|
|
|
|
|
unfunded loan commitments |
|
(4,000 |
) |
|
|
- |
|
|
|
(4,000 |
) |
Total loan-related provision |
|
10,000 |
|
|
|
3,000 |
|
|
|
7,000 |
|
Addition to
allowance for |
|
|
|
|
|
held-to-maturity securities |
|
- |
|
|
|
- |
|
|
|
- |
|
Total provision for credit losses |
$ |
10,000 |
|
|
$ |
3,000 |
|
|
$ |
7,000 |
|
|
|
|
|
|
|
The provision for credit losses was $10.0 million
for the fourth quarter of 2022 compared to $3.0 million for the
third quarter of 2022. The $7.0 million increase in the
loan-related provision was due mainly to net loan growth in
portfolios with a higher loss rate, a slight increase in the levels
of special mention and classified loans and leases, and an updated
economic forecast reflecting management’s expectation of a mild
recession ahead.
NONINTEREST INCOME
The following table presents details of
noninterest income for the periods indicated:
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
December
31, |
|
September
30, |
|
Increase |
Noninterest Income |
|
2022 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Service charges on deposit accounts |
$ |
3,178 |
|
|
$ |
3,608 |
|
|
$ |
(430 |
) |
Other
commissions and fees |
|
11,208 |
|
|
|
10,034 |
|
|
|
1,174 |
|
Leased
equipment income |
|
12,322 |
|
|
|
12,835 |
|
|
|
(513 |
) |
Gain on sale
of loans and leases |
|
388 |
|
|
|
58 |
|
|
|
330 |
|
(Loss) gain
on sale of securities |
|
(49,302 |
) |
|
|
86 |
|
|
|
(49,388 |
) |
Dividends
and gains on equity investments |
|
661 |
|
|
|
3,228 |
|
|
|
(2,567 |
) |
Warrant
(loss) income |
|
(46 |
) |
|
|
292 |
|
|
|
(338 |
) |
Other
income |
|
2,635 |
|
|
|
8,478 |
|
|
|
(5,843 |
) |
Total noninterest (loss) income |
$ |
(18,956 |
) |
|
$ |
38,619 |
|
|
$ |
(57,575 |
) |
|
|
|
|
|
|
Noninterest income decreased by $57.6 million to a
loss of $19.0 million for the fourth quarter of 2022 compared to
income of $38.6 million for the third quarter of 2022 due primarily
to decreases of $49.4 million in gain on sale of securities, $5.8
million in other income, and $2.6 million in dividends and gains on
equity investments. The decrease in gain on sale of securities
resulted from the sales of $1.0 billion of securities for a net
loss of $49.3 million compared to sales of $440.4 million of
securities for a net gain of $86,000 for the third quarter of 2022.
The decrease in other income was due primarily to the receipt of a
$5.5 million legal settlement, net of current year legal fees, in
the third quarter of 2022. The decrease in dividends and gains on
equity investments was due mainly to lower fair value gains on SBIC
investments and income distributions on equity 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 |
|
2022 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Compensation |
$ |
106,124 |
|
|
$ |
105,933 |
|
|
$ |
191 |
|
Occupancy |
|
14,922 |
|
|
|
15,574 |
|
|
|
(652 |
) |
Data
processing |
|
9,722 |
|
|
|
9,568 |
|
|
|
154 |
|
Other
professional services |
|
6,924 |
|
|
|
10,674 |
|
|
|
(3,750 |
) |
Insurance
and assessments |
|
7,205 |
|
|
|
7,159 |
|
|
|
46 |
|
Intangible
asset amortization |
|
2,629 |
|
|
|
3,649 |
|
|
|
(1,020 |
) |
Leased
equipment depreciation |
|
8,627 |
|
|
|
8,908 |
|
|
|
(281 |
) |
Foreclosed
assets (income) expense, net |
|
(108 |
) |
|
|
(248 |
) |
|
|
140 |
|
Acquisition,
integration and reorganization costs |
|
5,703 |
|
|
|
- |
|
|
|
5,703 |
|
Customer
related expense |
|
18,197 |
|
|
|
12,673 |
|
|
|
5,524 |
|
Loan
expense |
|
6,150 |
|
|
|
6,228 |
|
|
|
(78 |
) |
Other |
|
11,737 |
|
|
|
15,500 |
|
|
|
(3,763 |
) |
Total operating expense |
|
197,832 |
|
|
|
195,618 |
|
|
|
2,214 |
|
Goodwill
impairment |
|
29,000 |
|
|
|
- |
|
|
|
29,000 |
|
Total noninterest expense |
$ |
226,832 |
|
|
$ |
195,618 |
|
|
$ |
31,214 |
|
|
|
|
|
|
|
Noninterest expense increased by $31.2 million to
$226.8 million for the fourth quarter 2022 compared to $195.6
million for the third quarter of 2022 due primarily to a $29.0
million goodwill impairment charge related to Civic. Excluding the
goodwill impairment, noninterest expense increased by $2.2 million
to $197.8 million. The $2.2 million increase was due mainly to
increases of $5.7 million in acquisition, integration and
reorganization costs and $5.5 million in customer related expense,
offset partially by decreases of $3.8 million in other expense,
$3.8 million in other professional services, and $1.0 million in
intangible asset amortization. The increase in acquisition,
integration and reorganization costs was due to early retirement
benefits and severance expense in the fourth quarter. The increase
in customer related expense was due mostly to higher third-party
payments for deposit customers on account analysis. The decrease in
other expense was due primarily to a non-recurring legal settlement
accrual in the third quarter of 2022. The decrease in other
professional services was due mostly to non-recurring issuance
costs of the credit-linked notes transaction in the third quarter
of 2022. The decrease in intangible asset amortization was due
primarily to declining amortization expense on the intangible
assets added from acquisitions prior to 2021.
INCOME TAXES
The effective income tax rate was 26.3% for the
fourth quarter of 2022 compared to 24.9% for the third quarter of
2022. The increase from the third quarter of 2022 was primarily due
to a tax benefit recorded in the third quarter resulting from a
lapsed statute. The effective tax rate for the full year 2022 was
25.4%. The effective tax rate for the full year 2023 is currently
estimated to be in the range of 26% to 28%.
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, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
%
of |
|
|
%
of |
|
|
%
of |
Deposit Composition |
Balance |
Total |
|
Balance |
Total |
|
Balance |
Total |
|
(Dollars
in thousands) |
Noninterest-bearing demand |
$ |
11,212,357 |
|
33 |
% |
|
$ |
12,775,756 |
|
37 |
% |
|
$ |
14,543,133 |
|
41 |
% |
Interest
checking |
|
6,990,377 |
|
20 |
% |
|
|
6,780,900 |
|
20 |
% |
|
|
7,319,898 |
|
21 |
% |
Money
market |
|
7,780,758 |
|
23 |
% |
|
|
8,361,779 |
|
24 |
% |
|
|
10,241,265 |
|
29 |
% |
Savings |
|
577,637 |
|
2 |
% |
|
|
640,875 |
|
2 |
% |
|
|
630,653 |
|
2 |
% |
Total core deposits |
|
26,561,129 |
|
78 |
% |
|
|
28,559,310 |
|
83 |
% |
|
|
32,734,949 |
|
93 |
% |
Wholesale
non-maturity deposits |
|
2,637,362 |
|
8 |
% |
|
|
2,367,544 |
|
7 |
% |
|
|
889,976 |
|
3 |
% |
Total non-maturity deposits |
|
29,198,491 |
|
86 |
% |
|
|
30,926,854 |
|
90 |
% |
|
|
33,624,925 |
|
96 |
% |
Retail time
deposits |
|
2,434,414 |
|
7 |
% |
|
|
1,778,325 |
|
5 |
% |
|
|
1,177,147 |
|
3 |
% |
Brokered
time deposits |
|
2,303,429 |
|
7 |
% |
|
|
1,490,693 |
|
5 |
% |
|
|
195,685 |
|
1 |
% |
Total time deposits (1) |
|
4,737,843 |
|
14 |
% |
|
|
3,269,018 |
|
10 |
% |
|
|
1,372,832 |
|
4 |
% |
Total deposits |
$ |
33,936,334 |
|
100 |
% |
|
$ |
34,195,872 |
|
100 |
% |
|
$ |
34,997,757 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
(1) Includes time
deposits over $250,000 of $1.5 billion, $1.0 billion, and $486.9
million at December 31, 2022, September 30, 2022, and December 31,
2021, respectively. |
|
|
|
|
|
|
|
|
Total deposits decreased by $259.5 million or 0.8%
in the fourth quarter of 2022 due primarily to a $2.0 billion or
7.0% decrease in core deposits, offset partially by a $1.5 billion
increase in time deposits and a $269.8 million increase in
wholesale non-maturity deposits. At December 31, 2022, core
deposits totaled $26.6 billion or 78% of total deposits, including
$11.2 billion of noninterest-bearing demand deposits or 33% of
total deposits.
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 decreased from $1.8
billion as of September 30, 2022 to $1.4 billion as of December 31,
2022, 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 |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
(Dollars
in thousands) |
Balance,
beginning of period |
$ |
27,660,041 |
|
|
$ |
26,501,137 |
|
|
$ |
22,941,548 |
|
Additions: |
|
|
|
|
|
Production |
|
1,287,248 |
|
|
|
1,758,107 |
|
|
|
8,435,396 |
|
Disbursements |
|
1,919,979 |
|
|
|
1,677,795 |
|
|
|
7,058,553 |
|
Total production and disbursements |
|
3,207,227 |
|
|
|
3,435,902 |
|
|
|
15,493,949 |
|
Reductions: |
|
|
|
|
|
Payoffs |
|
(1,136,016 |
) |
|
|
(977,654 |
) |
|
|
(4,909,797 |
) |
Paydowns |
|
(1,050,727 |
) |
|
|
(1,256,557 |
) |
|
|
(4,755,033 |
) |
Total payoffs and paydowns |
|
(2,186,743 |
) |
|
|
(2,234,211 |
) |
|
|
(9,664,830 |
) |
Sales |
|
(2,611 |
) |
|
|
(19,635 |
) |
|
|
(63,263 |
) |
Transfers to foreclosed assets |
|
(4,714 |
) |
|
|
(2,966 |
) |
|
|
(7,985 |
) |
Charge-offs |
|
(3,352 |
) |
|
|
(4,652 |
) |
|
|
(14,037 |
) |
Transfers to loans held for sale |
|
(60,719 |
) |
|
|
(15,534 |
) |
|
|
(76,253 |
) |
Total reductions |
|
(2,258,139 |
) |
|
|
(2,276,998 |
) |
|
|
(9,826,368 |
) |
Net increase |
|
949,088 |
|
|
|
1,158,904 |
|
|
|
5,667,581 |
|
Balance, end
of period |
$ |
28,609,129 |
|
|
$ |
27,660,041 |
|
|
$ |
28,609,129 |
|
|
|
|
|
|
|
Weighted
average rate on production (1) |
|
7.55 |
% |
|
|
5.92 |
% |
|
|
5.24 |
% |
|
|
|
|
|
|
(1) The weighted average rate on production presents contractual
rates on a tax equivalent basis and excludes amortized fees.
Amortized fees added approximately 21 basis points to loan yields
in 2022. |
|
|
|
|
Loans and leases held for investment, net of
deferred fees, increased by $949.1 million or 3.4% in the fourth
quarter of 2022 to $28.6 billion at December 31, 2022. The overall
increase in the loans and leases balance for the fourth quarter of
2022 was due primarily to increases in the residential real estate
mortgage and residential real estate construction portfolios.
Civic loan production was $713 million for the
fourth quarter of 2022 compared to $831 million for the third
quarter of 2022. The Civic loan portfolio as of December 31, 2022
totaled $3.3 billion.
The weighted average rate on the $1.3 billion of
production for the fourth quarter of 2022 increased to 7.55% from
5.92% for the third quarter of 2022 due primarily to the loan mix
(lower percentage of multi-family production and a higher
percentage of Civic production) and the increase in market interest
rates.
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, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
%
of |
|
|
%
of |
|
|
%
of |
Loan and Lease Portfolio |
Balance |
Total |
|
Balance |
Total |
|
Balance |
Total |
|
(Dollars
in thousands) |
Real estate
mortgage: |
|
|
|
|
|
|
|
|
Commercial |
$ |
3,846,831 |
13 |
% |
|
$ |
3,770,706 |
14 |
% |
|
$ |
3,762,299 |
17 |
% |
Residential |
|
11,396,781 |
40 |
% |
|
|
10,860,043 |
39 |
% |
|
|
7,416,421 |
32 |
% |
Total real estate mortgage |
|
15,243,612 |
53 |
% |
|
|
14,630,749 |
53 |
% |
|
|
11,178,720 |
49 |
% |
Real estate
construction and land: |
|
|
|
|
|
|
|
|
Commercial |
|
898,592 |
3 |
% |
|
|
843,086 |
3 |
% |
|
|
832,591 |
4 |
% |
Residential |
|
3,740,292 |
13 |
% |
|
|
3,450,430 |
12 |
% |
|
|
2,604,536 |
11 |
% |
Total real estate construction |
|
|
|
|
|
|
|
|
and land |
|
4,638,884 |
16 |
% |
|
|
4,293,516 |
15 |
% |
|
|
3,437,127 |
15 |
% |
Total real estate |
|
19,882,496 |
69 |
% |
|
|
18,924,265 |
68 |
% |
|
|
14,615,847 |
64 |
% |
Commercial: |
|
|
|
|
|
|
|
|
Asset-based |
|
5,140,209 |
18 |
% |
|
|
5,154,654 |
19 |
% |
|
|
4,075,477 |
18 |
% |
Venture capital |
|
2,033,302 |
7 |
% |
|
|
2,001,086 |
7 |
% |
|
|
2,320,593 |
10 |
% |
Other commercial |
|
1,108,451 |
4 |
% |
|
|
1,115,442 |
4 |
% |
|
|
1,471,981 |
6 |
% |
Total commercial |
|
8,281,962 |
29 |
% |
|
|
8,271,182 |
30 |
% |
|
|
7,868,051 |
34 |
% |
Consumer |
|
444,671 |
2 |
% |
|
|
464,594 |
2 |
% |
|
|
457,650 |
2 |
% |
Total loans and leases held for |
|
|
|
|
|
|
|
|
investment, net of deferred fees |
$ |
28,609,129 |
100 |
% |
|
$ |
27,660,041 |
100 |
% |
|
$ |
22,941,548 |
100 |
% |
|
|
|
|
|
|
|
|
|
Total
unfunded loan commitments |
$ |
11,110,264 |
|
|
$ |
11,227,234 |
|
|
$ |
9,006,350 |
|
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND
LEASES
The following tables present roll forwards of the
allowance for credit losses on loans and leases for the periods
indicated:
|
|
|
|
|
|
|
Three Months Ended December 31, 2022 |
Allowance for Credit |
Allowance
for |
|
Reserve
for |
|
Total |
Losses on Loans and |
Loan
and |
|
Unfunded
Loan |
|
Allowance
for |
Leases Rollforward |
Lease Losses |
|
Commitments |
|
Credit Losses |
|
(In
thousands) |
Beginning balance |
$ |
189,327 |
|
|
$ |
95,071 |
|
|
$ |
284,398 |
|
Charge-offs |
|
(3,352 |
) |
|
|
- |
|
|
|
(3,352 |
) |
Recoveries |
|
757 |
|
|
|
- |
|
|
|
757 |
|
Net charge-offs |
|
(2,595 |
) |
|
|
- |
|
|
|
(2,595 |
) |
Provision |
|
14,000 |
|
|
|
(4,000 |
) |
|
|
10,000 |
|
Ending
balance |
$ |
200,732 |
|
|
$ |
91,071 |
|
|
$ |
291,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
Allowance for Credit |
Allowance
for |
|
Reserve
for |
|
Total |
Losses on Loans and |
Loan
and |
|
Unfunded
Loan |
|
Allowance
for |
Leases Rollforward |
Lease Losses |
|
Commitments |
|
Credit Losses |
|
(In
thousands) |
Beginning
balance |
$ |
188,705 |
|
|
$ |
95,071 |
|
|
$ |
283,776 |
|
Charge-offs |
|
(4,652 |
) |
|
|
- |
|
|
|
(4,652 |
) |
Recoveries |
|
2,274 |
|
|
|
- |
|
|
|
2,274 |
|
Net charge-offs |
|
(2,378 |
) |
|
|
- |
|
|
|
(2,378 |
) |
Provision |
|
3,000 |
|
|
|
- |
|
|
|
3,000 |
|
Ending
balance |
$ |
189,327 |
|
|
$ |
95,071 |
|
|
$ |
284,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit |
|
|
|
|
|
Losses on Loans and |
Year Ended December 31, |
|
|
Leases Rollforward |
|
2022 |
|
|
|
2021 |
|
|
|
|
(In
thousands) |
|
|
Beginning
balance |
$ |
273,635 |
|
|
$ |
433,752 |
|
|
|
Charge-offs |
|
(14,037 |
) |
|
|
(10,715 |
) |
|
|
Recoveries |
|
9,205 |
|
|
|
12,598 |
|
|
|
Net (charge-offs) recoveries |
|
(4,832 |
) |
|
|
1,883 |
|
|
|
Provision |
|
23,000 |
|
|
|
(162,000 |
) |
|
|
Ending
balance |
$ |
291,803 |
|
|
$ |
273,635 |
|
|
|
|
|
|
|
|
|
The following table presents allowance for credit
losses information on loans and leases as of and for the dates and
periods indicated:
|
|
|
|
|
|
Allowance for Credit Losses |
December
31, |
|
September
30, |
|
Increase |
on Loans and Leases |
|
2022 |
|
|
|
2022 |
|
|
(Decrease) |
|
(Dollars
in thousands) |
Allowance for loan and lease losses |
$ |
200,732 |
|
|
$ |
189,327 |
|
|
$ |
11,405 |
|
Reserve for
unfunded loan commitments |
|
91,071 |
|
|
|
95,071 |
|
|
|
(4,000 |
) |
Allowance for credit losses |
$ |
291,803 |
|
|
$ |
284,398 |
|
|
$ |
7,405 |
|
|
|
|
|
|
|
Provision
for credit losses (for the quarter) |
$ |
10,000 |
|
|
$ |
3,000 |
|
|
$ |
7,000 |
|
Net
charge-offs (for the quarter) |
$ |
2,595 |
|
|
$ |
2,378 |
|
|
$ |
217 |
|
Net
charge-offs to average loans |
|
|
|
|
|
and leases (for the quarter) |
|
0.04 |
% |
|
|
0.03 |
% |
|
|
Allowance
for loan and lease losses to loans |
|
|
|
|
|
and leases held for investment |
|
0.70 |
% |
|
|
0.68 |
% |
|
|
Allowance
for credit losses to loans and leases |
|
|
|
|
|
held for investment |
|
1.02 |
% |
|
|
1.03 |
% |
|
|
|
|
|
|
|
|
The allowance for credit losses increased by $7.4
million in the fourth quarter of 2022 to $291.8 million at December
31, 2022. This increase was attributable mainly to a $10.0 million
provision for credit losses, offset partially by $2.6 million in
net charge-offs.
Net charge-offs over the trailing twelve months
were $4.8 million, which results in net charge-offs to average
loans and leases over the trailing twelve months of 0.2%.
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 |
|
2022 |
|
|
|
2022 |
|
|
(Decrease) |
|
(Dollars
in thousands) |
NPAs
and Performing TDRs: |
|
|
|
|
|
Nonaccrual loans and leases held for investment (1) |
$ |
103,778 |
|
|
$ |
89,742 |
|
|
$ |
14,036 |
|
Accruing
loans contractually past due 90 days or more |
|
- |
|
|
|
- |
|
|
|
- |
|
Foreclosed
assets, net |
|
5,022 |
|
|
|
2,967 |
|
|
|
2,055 |
|
Total nonperforming assets ("NPAs") |
$ |
108,800 |
|
|
$ |
92,709 |
|
|
$ |
16,091 |
|
|
|
|
|
|
|
Performing
TDRs held for investment |
$ |
7,141 |
|
|
$ |
8,106 |
|
|
$ |
(965 |
) |
|
|
|
|
|
|
Nonaccrual
loans and leases held for investment |
|
|
|
|
|
to loans and leases held for investment |
|
0.36 |
% |
|
|
0.32 |
% |
|
|
Nonperforming assets to loans and leases |
|
|
|
|
|
held for investment and foreclosed assets |
|
0.38 |
% |
|
|
0.34 |
% |
|
|
Allowance
for credit losses to nonaccrual loans |
|
|
|
|
|
and leases held for investment |
|
281.2 |
% |
|
|
316.9 |
% |
|
|
|
|
|
|
|
|
Loan
and Lease Credit Risk Ratings: |
|
|
|
|
|
Pass |
$ |
27,924,599 |
|
|
$ |
27,099,362 |
|
|
$ |
825,237 |
|
Special
mention |
|
566,259 |
|
|
|
463,994 |
|
|
|
102,265 |
|
Classified |
|
118,271 |
|
|
|
96,685 |
|
|
|
21,586 |
|
Total loans and leases held for investment, |
|
|
|
|
|
net of deferred fees |
$ |
28,609,129 |
|
|
$ |
27,660,041 |
|
|
$ |
949,088 |
|
|
|
|
|
|
|
Special
mention loans and leases held for investment |
|
|
|
|
|
to loans and leases held for investment |
|
1.98 |
% |
|
|
1.68 |
% |
|
|
Classified
loans and leases held for investment |
|
|
|
|
|
to loans and leases held for investment |
|
0.41 |
% |
|
|
0.35 |
% |
|
|
|
|
|
|
|
|
(1) Nonaccrual loans
include SBA guaranteed amounts of $14.3 million at December 31,
2022 and $17.2 million at September 30, 2022. |
|
|
|
|
|
|
Nonaccrual loans and leases increased by $14.0
million to $103.8 million in the fourth quarter of 2022 due
primarily to an increase in nonaccrual Civic loans.
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, 2022 |
|
September 30, 2022 |
|
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 |
|
(In
thousands) |
Real estate
mortgage: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
42,509 |
|
$ |
1,047 |
|
|
$ |
42,772 |
|
$ |
14 |
|
|
$ |
(263 |
) |
|
$ |
1,033 |
|
Residential |
|
45,272 |
|
|
69,397 |
|
|
|
25,950 |
|
|
21,700 |
|
|
|
19,322 |
|
|
|
47,697 |
|
Total real estate mortgage |
|
87,781 |
|
|
70,444 |
|
|
|
68,722 |
|
|
21,714 |
|
|
|
19,059 |
|
|
|
48,730 |
|
Real estate
construction and land: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Residential |
|
10,621 |
|
|
26,257 |
|
|
|
7,101 |
|
|
3,051 |
|
|
|
3,520 |
|
|
|
23,206 |
|
Total real estate |
|
|
|
|
|
|
|
|
|
|
|
construction and land |
|
10,621 |
|
|
26,257 |
|
|
|
7,101 |
|
|
3,051 |
|
|
|
3,520 |
|
|
|
23,206 |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
Asset-based |
|
865 |
|
|
- |
|
|
|
2,127 |
|
|
- |
|
|
|
(1,262 |
) |
|
|
- |
|
Venture capital |
|
- |
|
|
- |
|
|
|
3,809 |
|
|
- |
|
|
|
(3,809 |
) |
|
|
- |
|
Other commercial |
|
4,345 |
|
|
385 |
|
|
|
7,616 |
|
|
265 |
|
|
|
(3,271 |
) |
|
|
120 |
|
Total commercial |
|
5,210 |
|
|
385 |
|
|
|
13,552 |
|
|
265 |
|
|
|
(8,342 |
) |
|
|
120 |
|
Consumer |
|
166 |
|
|
1,935 |
|
|
|
367 |
|
|
1,996 |
|
|
|
(201 |
) |
|
|
(61 |
) |
Total held for investment |
$ |
103,778 |
|
$ |
99,021 |
|
|
$ |
89,742 |
|
$ |
27,026 |
|
|
$ |
14,036 |
|
|
$ |
71,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases accruing and 30-89 days past due
generally fluctuate from period to period. The $72.0 million
increase to $99.0 million in the fourth quarter of 2022 was due
mainly to an increase in Civic delinquent loans. This was due
primarily to an increase in matured loans and an increase in the
dollar amount of delinquent loans which correlates with the
continued growth in the Civic loan portfolio balance.
CAPITAL
The following table presents capital ratios as of
the dates indicated:
|
December
31, |
|
September
30, |
|
|
December
31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
|
2021 |
|
PacWest Bancorp Consolidated: |
|
Common equity tier 1 capital ratio (1) |
|
8.70
|
%
|
|
|
8.56
|
%
|
|
|
|
8.86
|
%
|
Tier 1 capital ratio (1) |
|
10.60
|
%
|
|
|
10.46
|
%
|
|
|
|
9.32
|
%
|
Total capital ratio (1) |
|
13.61 |
% |
|
|
13.43 |
% |
|
|
|
12.69 |
% |
Tier 1 leverage capital ratio (1) |
|
8.61
|
%
|
|
|
8.63
|
%
|
|
|
|
6.84
|
%
|
Risk-weighted assets (1) (in thousands)
|
$
|
33,033,597
|
|
|
$
|
33,042,173
|
|
|
|
$
|
28,508,808
|
|
Tangible common equity ratio (2) |
|
5.13
|
% |
|
|
4.85
|
% |
|
|
|
6.54
|
% |
Tangible common equity ratio excluding |
|
|
|
|
|
|
the impact of AOCI for securities (2)
|
|
7.12
|
% |
|
|
6.97
|
% |
|
|
|
6.37
|
% |
|
|
|
|
|
|
|
(1) Capital
information for December 31, 2022 is preliminary. |
(2) Non-GAAP
measure. |
|
|
|
|
|
|
CONFERENCE CALL
PacWest Bancorp (“PacWest”) will host a conference
call at 8:00 AM PT/ 11:00 AM ET on Friday, January 27, 2023, to
discuss the Company’s performance for the fourth quarter of
2022.
Participants may access the conference
call/webcast at:
Participant Dial-in: (888) 204-4368
Participant Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1590835&tp
key=aedee87ee7
Confirmation Code: 2205611
The call will be recorded and made available for
replay on January 27, 2023, after 12:00 PM PT. The recording may be
accessed through the link above or at https://www.pacwestbancorp.com/news-market-data/presentations/default.aspx.
ABOUT PACWEST BANCORP
PacWest is a bank holding company with over $41
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”). Pacific Western Bank
is a relationship-based community bank focused on providing
business banking and treasury management services to small,
middle-market, and venture-backed businesses. The Bank offers a
broad range of loan and lease and deposit products and services
through full-service branches throughout California and in Durham,
North Carolina and Denver, Colorado, and loan production offices
around the country. 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 often use words such as “anticipates,” “targets,”
“expects,” “estimates,” “intends,” “plans,” “believes,” “continue”
and other similar expressions or future or conditional verbs such
as “will,” “may,” “might,” “should,” “would” and “could.” Such
statements are based on information available at the time of the
communication and are based on current beliefs and expectations of
PacWest’s management and are subject to significant risks,
uncertainties and contingencies, many of which are beyond our
control, which may cause actual results, performance, or
achievements to differ materially from those expressed in them.
Continued deterioration in general business, economic, and
political conditions, geopolitical tensions, uncertainty in U.S.
fiscal monetary policy, including the interest rate policies of the
Federal Reserve Board, and volatility and disruptions in credit and
capital markets could lead to a tightening of credit and an
increase of credit losses, adversely affect PacWest’s revenues and
the values of our assets, including goodwill, and liabilities, and
increase stock price volatility. The risks and impacts of the
COVID-19 pandemic appear to have largely subsided, however, new
variants may continue to impact key macro-economic indicators such
as unemployment and GDP and may have a material impact on our
business, financial position, and results of operations. In
addition, PacWest’s results could be adversely affected by changes
in interest rates, inflation, and unemployment rates, our ability
to attract deposits and other sources of funding and liquidity,
deterioration in the credit quality of our loan portfolio or in the
value of the collateral securing those loans, deterioration in the
value of our investment securities, our ability to successfully
execute on our digital and innovation initiatives, the
effectiveness of our risk management framework and quantitative
models, 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.
All forward-looking statements in this
communication are based on information available at the time the
statement is made. 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, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars
in thousands, except per share data) |
ASSETS: |
|
|
|
|
|
Cash and due
from banks |
$ |
212,273 |
|
|
$ |
216,436 |
|
|
$ |
112,548 |
|
Interest-earning deposits in financial institutions |
|
2,027,949 |
|
|
|
2,244,272 |
|
|
|
3,944,686 |
|
Total cash and cash equivalents |
|
2,240,222 |
|
|
|
2,460,708 |
|
|
|
4,057,234 |
|
|
|
|
|
|
|
Securities
available-for-sale, at estimated fair value |
|
4,843,487 |
|
|
|
5,891,328 |
|
|
|
10,694,458 |
|
Securities
held-to-maturity, at amortized cost, |
|
|
|
|
|
net of allowance for credit losses |
|
2,269,135 |
|
|
|
2,264,601 |
|
|
|
- |
|
Federal Home
Loan Bank stock, at cost |
|
34,290 |
|
|
|
36,990 |
|
|
|
17,250 |
|
Total investment securities |
|
7,146,912 |
|
|
|
8,192,919 |
|
|
|
10,711,708 |
|
|
|
|
|
|
|
Loans held for sale |
|
65,076 |
|
|
|
15,534 |
|
|
|
- |
|
|
|
|
|
|
|
Gross loans
and leases held for investment |
|
28,726,016 |
|
|
|
27,775,962 |
|
|
|
23,026,308 |
|
Deferred
fees, net |
|
(116,887 |
) |
|
|
(115,921 |
) |
|
|
(84,760 |
) |
Total loans and leases held for investment, |
|
|
|
|
|
net of deferred fees |
|
28,609,129 |
|
|
|
27,660,041 |
|
|
|
22,941,548 |
|
Allowance
for loan and lease losses |
|
(200,732 |
) |
|
|
(189,327 |
) |
|
|
(200,564 |
) |
Total loans and leases held for investment,
net |
|
28,408,397 |
|
|
|
27,470,714 |
|
|
|
22,740,984 |
|
|
|
|
|
|
|
Equipment
leased to others under operating leases |
|
404,245 |
|
|
|
338,691 |
|
|
|
339,150 |
|
Premises and
equipment, net |
|
54,315 |
|
|
|
50,781 |
|
|
|
46,740 |
|
Foreclosed
assets, net |
|
5,022 |
|
|
|
2,967 |
|
|
|
12,843 |
|
Goodwill |
|
1,376,736 |
|
|
|
1,405,736 |
|
|
|
1,405,736 |
|
Core deposit
and customer relationship intangibles, net |
|
31,381 |
|
|
|
34,010 |
|
|
|
44,957 |
|
Other
assets |
|
1,496,630 |
|
|
|
1,432,532 |
|
|
|
1,083,992 |
|
Total assets |
$ |
41,228,936 |
|
|
$ |
41,404,592 |
|
|
$ |
40,443,344 |
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Noninterest-bearing deposits |
$ |
11,212,357 |
|
|
$ |
12,775,756 |
|
|
$ |
14,543,133 |
|
Interest-bearing deposits |
|
22,723,977 |
|
|
|
21,420,116 |
|
|
|
20,454,624 |
|
Total deposits |
|
33,936,334 |
|
|
|
34,195,872 |
|
|
|
34,997,757 |
|
Borrowings |
|
1,764,030 |
|
|
|
1,864,815 |
|
|
|
- |
|
Subordinated
debt |
|
867,087 |
|
|
|
863,379 |
|
|
|
863,283 |
|
Accrued
interest payable and other liabilities |
|
710,954 |
|
|
|
604,581 |
|
|
|
582,674 |
|
Total liabilities |
|
37,278,405 |
|
|
|
37,528,647 |
|
|
|
36,443,714 |
|
STOCKHOLDERS' EQUITY (1) |
|
3,950,531 |
|
|
|
3,875,945 |
|
|
|
3,999,630 |
|
Total liabilities and stockholders’ equity |
$ |
41,228,936 |
|
|
$ |
41,404,592 |
|
|
$ |
40,443,344 |
|
|
|
|
|
|
|
Book value
per common share |
$ |
28.71 |
|
|
$ |
28.07 |
|
|
$ |
33.45 |
|
Tangible
book value per common share (2) |
$ |
17.00 |
|
|
$ |
16.11 |
|
|
$ |
21.31 |
|
Common
shares outstanding |
|
120,222,057 |
|
|
|
120,314,023 |
|
|
|
119,584,854 |
|
|
|
|
|
|
|
(1) Includes
net unrealized (loss) gain on: |
|
|
|
|
|
Securities available-for-sale, net |
$ |
(586,450 |
) |
|
$ |
(637,346 |
) |
|
$ |
65,968 |
|
Securities held to maturity |
|
(204,453 |
) |
|
|
(210,868 |
) |
|
|
- |
|
Total |
$ |
(790,903 |
) |
|
$ |
(848,214 |
) |
|
$ |
65,968 |
|
(2) Non-GAAP
measure. |
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND
SUBSIDIARIES |
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year
Ended |
|
December
31, |
|
September
30, |
|
December
31, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(In
thousands, except per share data) |
Interest income: |
|
|
|
|
|
|
|
|
|
Loans and
leases |
$ |
404,985 |
|
|
$ |
346,550 |
|
|
$ |
263,662 |
|
|
$ |
1,312,580 |
|
|
$ |
996,457 |
|
Investment
securities |
|
50,292 |
|
|
|
53,135 |
|
|
|
48,469 |
|
|
|
209,751 |
|
|
|
153,468 |
|
Deposits in
financial institutions |
|
17,746 |
|
|
|
10,359 |
|
|
|
2,674 |
|
|
|
34,158 |
|
|
|
8,804 |
|
Total interest income |
|
473,023 |
|
|
|
410,044 |
|
|
|
314,805 |
|
|
|
1,556,489 |
|
|
|
1,158,729 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
117,591 |
|
|
|
61,288 |
|
|
|
6,622 |
|
|
|
200,449 |
|
|
|
27,808 |
|
Borrowings |
|
19,962 |
|
|
|
3,081 |
|
|
|
64 |
|
|
|
25,645 |
|
|
|
623 |
|
Subordinated
debt |
|
12,531 |
|
|
|
10,494 |
|
|
|
7,714 |
|
|
|
39,633 |
|
|
|
26,474 |
|
Total interest expense |
|
150,084 |
|
|
|
74,863 |
|
|
|
14,400 |
|
|
|
265,727 |
|
|
|
54,905 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
322,939 |
|
|
|
335,181 |
|
|
|
300,405 |
|
|
|
1,290,762 |
|
|
|
1,103,824 |
|
Provision
for credit losses |
|
10,000 |
|
|
|
3,000 |
|
|
|
(6,000 |
) |
|
|
24,500 |
|
|
|
(162,000 |
) |
Net interest income after provision |
|
|
|
|
|
|
|
|
|
for credit losses |
|
312,939 |
|
|
|
332,181 |
|
|
|
306,405 |
|
|
|
1,266,262 |
|
|
|
1,265,824 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
3,178 |
|
|
|
3,608 |
|
|
|
3,476 |
|
|
|
13,991 |
|
|
|
13,269 |
|
Other
commissions and fees |
|
11,208 |
|
|
|
10,034 |
|
|
|
10,633 |
|
|
|
43,635 |
|
|
|
42,287 |
|
Leased
equipment income |
|
12,322 |
|
|
|
12,835 |
|
|
|
12,602 |
|
|
|
50,586 |
|
|
|
45,746 |
|
Gain on sale
of loans and leases |
|
388 |
|
|
|
58 |
|
|
|
172 |
|
|
|
518 |
|
|
|
1,733 |
|
(Loss) gain
on sale of securities |
|
(49,302 |
) |
|
|
86 |
|
|
|
999 |
|
|
|
(50,321 |
) |
|
|
1,615 |
|
Dividends
and gains (losses) on equity investments |
|
661 |
|
|
|
3,228 |
|
|
|
(1,570 |
) |
|
|
(3,389 |
) |
|
|
23,115 |
|
Warrant
(loss) income |
|
(46 |
) |
|
|
292 |
|
|
|
23,990 |
|
|
|
2,490 |
|
|
|
49,341 |
|
Other
income |
|
2,635 |
|
|
|
8,478 |
|
|
|
7,080 |
|
|
|
17,317 |
|
|
|
16,821 |
|
Total noninterest (loss) income |
|
(18,956 |
) |
|
|
38,619 |
|
|
|
57,382 |
|
|
|
74,827 |
|
|
|
193,927 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Compensation |
|
106,124 |
|
|
|
105,933 |
|
|
|
99,700 |
|
|
|
406,839 |
|
|
|
368,450 |
|
Occupancy |
|
14,922 |
|
|
|
15,574 |
|
|
|
14,656 |
|
|
|
60,964 |
|
|
|
58,422 |
|
Data
processing |
|
9,722 |
|
|
|
9,568 |
|
|
|
8,171 |
|
|
|
38,177 |
|
|
|
30,277 |
|
Other
professional services |
|
6,924 |
|
|
|
10,674 |
|
|
|
5,946 |
|
|
|
30,278 |
|
|
|
21,492 |
|
Insurance
and assessments |
|
7,205 |
|
|
|
7,159 |
|
|
|
5,032 |
|
|
|
25,486 |
|
|
|
17,365 |
|
Intangible
asset amortization |
|
2,629 |
|
|
|
3,649 |
|
|
|
3,876 |
|
|
|
13,576 |
|
|
|
12,734 |
|
Leased
equipment depreciation |
|
8,627 |
|
|
|
8,908 |
|
|
|
9,569 |
|
|
|
35,658 |
|
|
|
35,755 |
|
Foreclosed
assets (income) expense, net |
|
(108 |
) |
|
|
(248 |
) |
|
|
(260 |
) |
|
|
(3,737 |
) |
|
|
(213 |
) |
Acquisition,
integration and reorganization costs |
|
5,703 |
|
|
|
- |
|
|
|
5,590 |
|
|
|
5,703 |
|
|
|
9,415 |
|
Customer
related expense |
|
18,197 |
|
|
|
12,673 |
|
|
|
6,175 |
|
|
|
55,273 |
|
|
|
20,504 |
|
Loan
expense |
|
6,150 |
|
|
|
6,228 |
|
|
|
5,627 |
|
|
|
24,572 |
|
|
|
17,031 |
|
Goodwill
impairment |
|
29,000 |
|
|
|
- |
|
|
|
- |
|
|
|
29,000 |
|
|
|
- |
|
Other
expense |
|
11,737 |
|
|
|
15,500 |
|
|
|
12,028 |
|
|
|
51,732 |
|
|
|
46,185 |
|
Total noninterest expense |
|
226,832 |
|
|
|
195,618 |
|
|
|
176,110 |
|
|
|
773,521 |
|
|
|
637,417 |
|
|
|
|
|
|
|
|
|
|
|
Earnings
before income taxes |
|
67,151 |
|
|
|
175,182 |
|
|
|
187,677 |
|
|
|
567,568 |
|
|
|
822,334 |
|
Income tax
expense |
|
17,642 |
|
|
|
43,566 |
|
|
|
51,632 |
|
|
|
143,955 |
|
|
|
215,375 |
|
Net earnings |
|
49,509 |
|
|
|
131,616 |
|
|
|
136,045 |
|
|
|
423,613 |
|
|
|
606,959 |
|
Preferred
stock dividends |
|
9,947 |
|
|
|
9,392 |
|
|
|
- |
|
|
|
19,339 |
|
|
|
- |
|
Net earnings available to |
|
|
|
|
|
|
|
|
|
common stockholders |
$ |
39,562 |
|
|
$ |
122,224 |
|
|
$ |
136,045 |
|
|
$ |
404,274 |
|
|
$ |
606,959 |
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings per common share |
$ |
0.33 |
|
|
$ |
1.02 |
|
|
$ |
1.14 |
|
|
$ |
3.37 |
|
|
$ |
5.10 |
|
Dividends
declared and paid per common share |
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
PACWEST BANCORP AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
NET EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars in thousands, except per share
data) |
Basic Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
49,509 |
|
|
$ |
131,616 |
|
|
$ |
136,045 |
|
|
$ |
423,613 |
|
|
$ |
606,959 |
|
Less: Preferred stock dividends |
|
(9,947 |
) |
|
|
(9,392 |
) |
|
|
- |
|
|
|
(19,339 |
) |
|
|
- |
|
Net earnings available to |
|
|
|
|
|
|
|
|
|
common stockholders |
|
39,562 |
|
|
|
122,224 |
|
|
|
136,045 |
|
|
|
404,274 |
|
|
|
606,959 |
|
Less: Earnings allocated to |
|
|
|
|
|
|
|
|
|
unvested restricted stock (1) |
|
(714 |
) |
|
|
(2,331 |
) |
|
|
(2,311 |
) |
|
|
(7,474 |
) |
|
|
(10,248 |
) |
Net earnings allocated to |
|
|
|
|
|
|
|
|
|
common shares |
$ |
38,848 |
|
|
$ |
119,893 |
|
|
$ |
133,734 |
|
|
$ |
396,800 |
|
|
$ |
596,711 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares |
|
|
|
|
|
|
|
|
|
and unvested restricted stock |
|
|
|
|
|
|
|
|
|
outstanding |
|
120,314 |
|
|
|
120,342 |
|
|
|
119,577 |
|
|
|
120,071 |
|
|
|
119,349 |
|
Less: weighted average unvested |
|
|
|
|
|
|
|
|
|
restricted stock outstanding |
|
(2,503 |
) |
|
|
(2,556 |
) |
|
|
(2,314 |
) |
|
|
(2,442 |
) |
|
|
(2,255 |
) |
Weighted average basic shares |
|
|
|
|
|
|
|
|
|
outstanding |
|
117,811 |
|
|
|
117,786 |
|
|
|
117,263 |
|
|
|
117,629 |
|
|
|
117,094 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.33 |
|
|
$ |
1.02 |
|
|
$ |
1.14 |
|
|
$ |
3.37 |
|
|
$ |
5.10 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|
Net earnings allocated to |
|
|
|
|
|
|
|
|
|
common shares |
$ |
38,848 |
|
|
$ |
119,893 |
|
|
$ |
133,734 |
|
|
$ |
396,800 |
|
|
$ |
596,711 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares |
|
|
|
|
|
|
|
|
|
outstanding |
|
117,811 |
|
|
|
117,786 |
|
|
|
117,263 |
|
|
|
117,629 |
|
|
|
117,094 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share |
$ |
0.33 |
|
|
$ |
1.02 |
|
|
$ |
1.14 |
|
|
$ |
3.37 |
|
|
$ |
5.10 |
|
|
|
|
|
|
|
|
|
|
|
(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, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
|
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) |
$ |
28,192,953 |
|
$ |
407,135 |
|
5.73 |
% |
|
$ |
27,038,873 |
|
$ |
348,639 |
|
5.12 |
% |
|
$ |
21,367,665 |
|
$ |
265,549 |
|
4.93 |
% |
Investment
securities (3) |
|
7,824,915 |
|
|
50,697 |
|
2.57 |
% |
|
|
8,803,349 |
|
|
54,423 |
|
2.45 |
% |
|
|
9,964,568 |
|
|
50,710 |
|
2.02 |
% |
Deposits in
financial |
|
|
|
|
|
|
|
|
|
|
|
institutions |
|
1,881,950 |
|
|
17,746 |
|
3.74 |
% |
|
|
1,809,809 |
|
|
10,359 |
|
2.27 |
% |
|
|
5,961,104 |
|
|
2,674 |
|
0.18 |
% |
Total interest-earning |
|
|
|
|
|
|
|
|
|
|
|
assets (1) |
|
37,899,818 |
|
|
475,578 |
|
4.98 |
% |
|
|
37,652,031 |
|
|
413,421 |
|
4.36 |
% |
|
|
37,293,337 |
|
|
318,933 |
|
3.39 |
% |
Other
assets |
|
3,252,145 |
|
|
|
|
|
3,189,241 |
|
|
|
|
|
3,064,810 |
|
|
|
Total assets |
$ |
41,151,963 |
|
|
|
|
$ |
40,841,272 |
|
|
|
|
$ |
40,358,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
Interest
checking |
$ |
7,146,333 |
|
|
41,427 |
|
2.30 |
% |
|
$ |
6,650,477 |
|
|
19,475 |
|
1.16 |
% |
|
$ |
7,767,211 |
|
|
2,041 |
|
0.10 |
% |
Money
market |
|
10,088,641 |
|
|
51,687 |
|
2.03 |
% |
|
|
10,914,027 |
|
|
31,780 |
|
1.16 |
% |
|
|
10,226,366 |
|
|
3,400 |
|
0.13 |
% |
Savings |
|
616,298 |
|
|
66 |
|
0.04 |
% |
|
|
649,574 |
|
|
42 |
|
0.03 |
% |
|
|
634,874 |
|
|
39 |
|
0.02 |
% |
Time |
|
3,909,130 |
|
|
24,411 |
|
2.48 |
% |
|
|
3,000,187 |
|
|
9,991 |
|
1.32 |
% |
|
|
1,421,859 |
|
|
1,142 |
|
0.32 |
% |
Total interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
21,760,402 |
|
|
117,591 |
|
2.14 |
% |
|
|
21,214,265 |
|
|
61,288 |
|
1.15 |
% |
|
|
20,050,310 |
|
|
6,622 |
|
0.13 |
% |
Borrowings |
|
1,675,738 |
|
|
19,962 |
|
4.73 |
% |
|
|
505,482 |
|
|
3,081 |
|
2.42 |
% |
|
|
234,391 |
|
|
64 |
|
0.11 |
% |
Subordinated
debt |
|
864,581 |
|
|
12,531 |
|
5.75 |
% |
|
|
863,719 |
|
|
10,494 |
|
4.82 |
% |
|
|
862,777 |
|
|
7,714 |
|
3.55 |
% |
Total interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
liabilities |
|
24,300,721 |
|
|
150,084 |
|
2.45 |
% |
|
|
22,583,466 |
|
|
74,863 |
|
1.32 |
% |
|
|
21,147,478 |
|
|
14,400 |
|
0.27 |
% |
Noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
demand deposits |
|
12,325,902 |
|
|
|
|
|
13,653,177 |
|
|
|
|
|
14,713,385 |
|
|
|
Other
liabilities |
|
626,540 |
|
|
|
|
|
593,450 |
|
|
|
|
|
543,017 |
|
|
|
Total liabilities |
|
37,253,163 |
|
|
|
|
|
36,830,093 |
|
|
|
|
|
36,403,880 |
|
|
|
Stockholders' equity |
|
3,898,800 |
|
|
|
|
|
4,011,179 |
|
|
|
|
|
3,954,267 |
|
|
|
Total liabilities and |
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity |
$ |
41,151,963 |
|
|
|
|
$ |
40,841,272 |
|
|
|
|
$ |
40,358,147 |
|
|
|
Net interest
income (1) |
|
$ |
325,494 |
|
|
|
|
$ |
338,558 |
|
|
|
|
$ |
304,533 |
|
|
Net interest
spread (1) |
|
|
2.53 |
% |
|
|
|
3.04 |
% |
|
|
|
3.12 |
% |
Net interest
margin (1) |
|
|
3.41 |
% |
|
|
|
3.57 |
% |
|
|
|
3.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits (4) |
$ |
34,086,304 |
|
$ |
117,591 |
|
1.37 |
% |
|
$ |
34,867,442 |
|
$ |
61,288 |
|
0.70 |
% |
|
$ |
34,763,695 |
|
$ |
6,622 |
|
0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax
equivalent. |
|
|
|
|
|
|
|
|
|
|
|
(2) Includes net loan
premium amortization of $2.5 million, $3.8 million, and $6.4
million for the three months ended December 31,
2022, September 30, 2022, and December 31, 2021,
respectively. |
(3) Includes
tax-equivalent adjustments of $0.4 million, $1.3 million, and $2.2
million for the three months ended December 31, 2022, September 30,
2022, and December 31, 2021 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, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars
in thousands, except per share data) |
ASSETS: |
|
|
|
|
|
|
|
|
|
Cash and due
from banks |
$ |
212,273 |
|
|
$ |
216,436 |
|
|
$ |
197,027 |
|
|
$ |
205,446 |
|
|
$ |
112,548 |
|
Interest-earning deposits in financial |
|
|
|
|
|
|
|
|
|
institutions |
|
2,027,949 |
|
|
|
2,244,272 |
|
|
|
2,192,877 |
|
|
|
1,865,235 |
|
|
|
3,944,686 |
|
Total cash and cash equivalents |
|
2,240,222 |
|
|
|
2,460,708 |
|
|
|
2,389,904 |
|
|
|
2,070,681 |
|
|
|
4,057,234 |
|
|
|
|
|
|
|
|
|
|
|
Securities
available-for-sale |
|
4,843,487 |
|
|
|
5,891,328 |
|
|
|
6,780,648 |
|
|
|
9,975,109 |
|
|
|
10,694,458 |
|
Securities
held-to-maturity |
|
2,269,135 |
|
|
|
2,264,601 |
|
|
|
2,260,367 |
|
|
|
- |
|
|
|
- |
|
Federal Home
Loan Bank stock |
|
34,290 |
|
|
|
36,990 |
|
|
|
33,210 |
|
|
|
17,250 |
|
|
|
17,250 |
|
Total investment securities |
|
7,146,912 |
|
|
|
8,192,919 |
|
|
|
9,074,225 |
|
|
|
9,992,359 |
|
|
|
10,711,708 |
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
65,076 |
|
|
|
15,534 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Gross loans
and leases held for investment |
|
28,726,016 |
|
|
|
27,775,962 |
|
|
|
26,608,541 |
|
|
|
24,439,749 |
|
|
|
23,026,308 |
|
Deferred
fees, net |
|
(116,887 |
) |
|
|
(115,921 |
) |
|
|
(107,404 |
) |
|
|
(87,677 |
) |
|
|
(84,760 |
) |
Total loans and leases held for |
|
|
|
|
|
|
|
|
|
investment, net of deferred fees |
|
28,609,129 |
|
|
|
27,660,041 |
|
|
|
26,501,137 |
|
|
|
24,352,072 |
|
|
|
22,941,548 |
|
Allowance
for loan and lease losses |
|
(200,732 |
) |
|
|
(189,327 |
) |
|
|
(188,705 |
) |
|
|
(197,398 |
) |
|
|
(200,564 |
) |
Total loans and leases held for |
|
|
|
|
|
|
|
|
|
investment, net |
|
28,408,397 |
|
|
|
27,470,714 |
|
|
|
26,312,432 |
|
|
|
24,154,674 |
|
|
|
22,740,984 |
|
|
|
|
|
|
|
|
|
|
|
Equipment
leased to others under |
|
|
|
|
|
|
|
|
|
operating leases |
|
404,245 |
|
|
|
338,691 |
|
|
|
324,233 |
|
|
|
325,305 |
|
- |
|
339,150 |
|
Premises and
equipment, net |
|
54,315 |
|
|
|
50,781 |
|
|
|
51,083 |
|
|
|
51,011 |
|
|
|
46,740 |
|
Foreclosed
assets, net |
|
5,022 |
|
|
|
2,967 |
|
|
|
- |
|
|
|
304 |
|
|
|
12,843 |
|
Goodwill |
|
1,376,736 |
|
|
|
1,405,736 |
|
|
|
1,405,736 |
|
|
|
1,405,736 |
|
|
|
1,405,736 |
|
Core deposit
and customer relationship |
|
|
|
|
|
|
|
|
|
intangibles, net |
|
31,381 |
|
|
|
34,010 |
|
|
|
37,659 |
|
|
|
41,308 |
|
|
|
44,957 |
|
Other
assets |
|
1,496,630 |
|
|
|
1,432,532 |
|
|
|
1,355,451 |
|
|
|
1,208,261 |
|
|
|
1,083,992 |
|
Total assets |
$ |
41,228,936 |
|
|
$ |
41,404,592 |
|
|
$ |
40,950,723 |
|
|
$ |
39,249,639 |
|
|
$ |
40,443,344 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
11,212,357 |
|
|
$ |
12,775,756 |
|
|
$ |
13,338,029 |
|
|
$ |
14,057,051 |
|
|
$ |
14,543,133 |
|
Interest-bearing deposits |
|
22,723,977 |
|
|
|
21,420,116 |
|
|
|
20,630,123 |
|
|
|
19,167,844 |
|
|
|
20,454,624 |
|
Total deposits |
|
33,936,334 |
|
|
|
34,195,872 |
|
|
|
33,968,152 |
|
|
|
33,224,895 |
|
|
|
34,997,757 |
|
Borrowings |
|
1,764,030 |
|
|
|
1,864,815 |
|
|
|
1,592,000 |
|
|
|
991,000 |
|
|
|
- |
|
Subordinated
debt |
|
867,087 |
|
|
|
863,379 |
|
|
|
863,756 |
|
|
|
863,880 |
|
|
|
863,283 |
|
Accrued
interest payable and other |
|
|
|
|
|
|
|
|
|
liabilities |
|
710,954 |
|
|
|
604,581 |
|
|
|
548,412 |
|
|
|
519,269 |
|
|
|
582,674 |
|
Total liabilities |
|
37,278,405 |
|
|
|
37,528,647 |
|
|
|
36,972,320 |
|
|
|
35,599,044 |
|
|
|
36,443,714 |
|
STOCKHOLDERS' EQUITY (1) |
|
3,950,531 |
|
|
|
3,875,945 |
|
|
|
3,978,403 |
|
|
|
3,650,595 |
|
|
|
3,999,630 |
|
Total liabilities and stockholders’ |
|
|
|
|
|
|
|
|
|
equity |
$ |
41,228,936 |
|
|
$ |
41,404,592 |
|
|
$ |
40,950,723 |
|
|
$ |
39,249,639 |
|
|
$ |
40,443,344 |
|
|
|
|
|
|
|
|
|
|
|
Book value
per common share |
$ |
28.71 |
|
|
$ |
28.07 |
|
|
$ |
28.93 |
|
|
$ |
30.52 |
|
|
$ |
33.45 |
|
Tangible
book value per common share (2) |
$ |
17.00 |
|
|
$ |
16.11 |
|
|
$ |
16.93 |
|
|
$ |
18.42 |
|
|
$ |
21.31 |
|
Common
shares outstanding |
|
120,222,057 |
|
|
|
120,314,023 |
|
|
|
120,288,024 |
|
|
|
119,601,766 |
|
|
|
119,584,854 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
net unrealized (loss) gain on: |
|
|
|
|
|
|
|
|
|
Securities available-for-sale, net |
$ |
(586,450 |
) |
|
$ |
(637,346 |
) |
|
$ |
(428,242 |
) |
|
$ |
(376,475 |
) |
|
$ |
65,968 |
|
Securities held to maturity |
|
(204,453 |
) |
|
|
(210,868 |
) |
|
|
(216,508 |
) |
|
|
- |
|
|
|
- |
|
Total |
$ |
(790,903 |
) |
|
$ |
(848,214 |
) |
|
$ |
(644,750 |
) |
|
$ |
(376,475 |
) |
|
$ |
65,968 |
|
(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, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(In
thousands, except per share data) |
Interest income: |
|
|
|
|
|
|
|
|
|
Loans and
leases |
$ |
404,985 |
|
|
$ |
346,550 |
|
|
$ |
293,286 |
|
|
$ |
267,759 |
|
|
$ |
263,662 |
|
Investment
securities |
|
50,292 |
|
|
|
53,135 |
|
|
|
52,902 |
|
|
|
53,422 |
|
|
|
48,469 |
|
Deposits in
financial institutions |
|
17,746 |
|
|
|
10,359 |
|
|
|
4,330 |
|
|
|
1,723 |
|
|
|
2,674 |
|
Total interest income |
|
473,023 |
|
|
|
410,044 |
|
|
|
350,518 |
|
|
|
322,904 |
|
|
|
314,805 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
117,591 |
|
|
|
61,288 |
|
|
|
15,362 |
|
|
|
6,208 |
|
|
|
6,622 |
|
Borrowings |
|
19,962 |
|
|
|
3,081 |
|
|
|
2,441 |
|
|
|
161 |
|
|
|
64 |
|
Subordinated
debt |
|
12,531 |
|
|
|
10,494 |
|
|
|
8,790 |
|
|
|
7,818 |
|
|
|
7,714 |
|
Total interest expense |
|
150,084 |
|
|
|
74,863 |
|
|
|
26,593 |
|
|
|
14,187 |
|
|
|
14,400 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
322,939 |
|
|
|
335,181 |
|
|
|
323,925 |
|
|
|
308,717 |
|
|
|
300,405 |
|
Provision
for credit losses |
|
10,000 |
|
|
|
3,000 |
|
|
|
11,500 |
|
|
|
- |
|
|
|
(6,000 |
) |
Net interest income after provision |
|
|
|
|
|
|
|
|
|
for credit losses |
|
312,939 |
|
|
|
332,181 |
|
|
|
312,425 |
|
|
|
308,717 |
|
|
|
306,405 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
3,178 |
|
|
|
3,608 |
|
|
|
3,634 |
|
|
|
3,571 |
|
|
|
3,476 |
|
Other
commissions and fees |
|
11,208 |
|
|
|
10,034 |
|
|
|
10,813 |
|
|
|
11,580 |
|
|
|
10,633 |
|
Leased
equipment income |
|
12,322 |
|
|
|
12,835 |
|
|
|
12,335 |
|
|
|
13,094 |
|
|
|
12,602 |
|
Gain on sale
of loans and leases |
|
388 |
|
|
|
58 |
|
|
|
12 |
|
|
|
60 |
|
|
|
172 |
|
(Loss) gain
on sale of securities |
|
(49,302 |
) |
|
|
86 |
|
|
|
(1,209 |
) |
|
|
104 |
|
|
|
999 |
|
Dividends
and gains (losses) on equity investments |
|
661 |
|
|
|
3,228 |
|
|
|
4,097 |
|
|
|
(11,375 |
) |
|
|
(1,570 |
) |
Warrant
(loss) income |
|
(46 |
) |
|
|
292 |
|
|
|
1,615 |
|
|
|
629 |
|
|
|
23,990 |
|
Other
income |
|
2,635 |
|
|
|
8,478 |
|
|
|
3,049 |
|
|
|
3,155 |
|
|
|
7,080 |
|
Total noninterest (loss) income |
|
(18,956 |
) |
|
|
38,619 |
|
|
|
34,346 |
|
|
|
20,818 |
|
|
|
57,382 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Compensation |
|
106,124 |
|
|
|
105,933 |
|
|
|
102,542 |
|
|
|
92,240 |
|
|
|
99,700 |
|
Occupancy |
|
14,922 |
|
|
|
15,574 |
|
|
|
15,268 |
|
|
|
15,200 |
|
|
|
14,656 |
|
Data
processing |
|
9,722 |
|
|
|
9,568 |
|
|
|
9,258 |
|
|
|
9,629 |
|
|
|
8,171 |
|
Other
professional services |
|
6,924 |
|
|
|
10,674 |
|
|
|
6,726 |
|
|
|
5,954 |
|
|
|
5,946 |
|
Insurance
and assessments |
|
7,205 |
|
|
|
7,159 |
|
|
|
5,632 |
|
|
|
5,490 |
|
|
|
5,032 |
|
Intangible
asset amortization |
|
2,629 |
|
|
|
3,649 |
|
|
|
3,649 |
|
|
|
3,649 |
|
|
|
3,876 |
|
Leased
equipment depreciation |
|
8,627 |
|
|
|
8,908 |
|
|
|
8,934 |
|
|
|
9,189 |
|
|
|
9,569 |
|
Foreclosed
assets (income) expense, net |
|
(108 |
) |
|
|
(248 |
) |
|
|
(28 |
) |
|
|
(3,353 |
) |
|
|
(260 |
) |
Acquisition,
integration and reorganization costs |
|
5,703 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,590 |
|
Customer
related expense |
|
18,197 |
|
|
|
12,673 |
|
|
|
11,748 |
|
|
|
12,655 |
|
|
|
6,175 |
|
Loan
expense |
|
6,150 |
|
|
|
6,228 |
|
|
|
7,037 |
|
|
|
5,157 |
|
|
|
5,627 |
|
Goodwill
impairment |
|
29,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other
expense |
|
11,737 |
|
|
|
15,500 |
|
|
|
12,879 |
|
|
|
11,616 |
|
|
|
12,028 |
|
Total noninterest expense |
|
226,832 |
|
|
|
195,618 |
|
|
|
183,645 |
|
|
|
167,426 |
|
|
|
176,110 |
|
|
|
|
|
|
|
|
|
|
|
Earnings
before income taxes |
|
67,151 |
|
|
|
175,182 |
|
|
|
163,126 |
|
|
|
162,109 |
|
|
|
187,677 |
|
Income tax
expense |
|
17,642 |
|
|
|
43,566 |
|
|
|
40,766 |
|
|
|
41,981 |
|
|
|
51,632 |
|
Net earnings |
|
49,509 |
|
|
|
131,616 |
|
|
|
122,360 |
|
|
|
120,128 |
|
|
|
136,045 |
|
Preferred
stock dividends |
|
9,947 |
|
|
|
9,392 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net earnings available to |
|
|
|
|
|
|
|
|
|
common stockholders |
$ |
39,562 |
|
|
$ |
122,224 |
|
|
$ |
122,360 |
|
|
$ |
120,128 |
|
|
$ |
136,045 |
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings per common share |
$ |
0.33 |
|
|
$ |
1.02 |
|
|
$ |
1.02 |
|
|
$ |
1.01 |
|
|
$ |
1.14 |
|
Dividends
declared and paid per common 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, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars in thousands) |
Performance Ratios: |
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
0.48 |
% |
|
|
1.28 |
% |
|
|
1.23 |
% |
|
|
1.22 |
% |
|
|
1.34 |
% |
Pre-provision, pre-goodwill impairment, |
|
|
|
|
|
|
|
|
|
pre-tax net revenue ("PPNR") return |
|
|
|
|
|
|
|
|
|
on average assets (1)(2) |
|
1.02 |
% |
|
|
1.73 |
% |
|
|
1.75 |
% |
|
|
1.65 |
% |
|
|
1.79 |
% |
Return on average equity (1) |
|
5.04 |
% |
|
|
13.02 |
% |
|
|
13.44 |
% |
|
|
12.66 |
% |
|
|
13.65 |
% |
Return on average tangible common |
|
|
|
|
|
|
|
|
|
equity (1)(2) |
|
14.39 |
% |
|
|
24.11 |
% |
|
|
24.42 |
% |
|
|
20.93 |
% |
|
|
22.06 |
% |
Efficiency ratio |
|
53.3 |
% |
|
|
51.0 |
% |
|
|
49.5 |
% |
|
|
50.1 |
% |
|
|
46.2 |
% |
Noninterest expense as a percentage |
|
|
|
|
|
|
|
|
|
of average assets (1) |
|
2.19 |
% |
|
|
1.90 |
% |
|
|
1.84 |
% |
|
|
1.70 |
% |
|
|
1.73 |
% |
|
|
|
|
|
|
|
|
|
|
Average Yields/Costs (1): |
|
|
|
|
|
|
|
|
|
Yield on: |
|
|
|
|
|
|
|
|
|
Average loans and leases (3) |
|
5.73 |
% |
|
|
5.12 |
% |
|
|
4.65 |
% |
|
|
4.66 |
% |
|
|
4.93 |
% |
Average investment securities (3) |
|
2.57 |
% |
|
|
2.45 |
% |
|
|
2.32 |
% |
|
|
2.17 |
% |
|
|
2.02 |
% |
Average interest-earning assets (3) |
|
4.98 |
% |
|
|
4.36 |
% |
|
|
3.85 |
% |
|
|
3.59 |
% |
|
|
3.39 |
% |
Cost of: |
|
|
|
|
|
|
|
|
|
Average interest-bearing deposits |
|
2.14 |
% |
|
|
1.15 |
% |
|
|
0.31 |
% |
|
|
0.13 |
% |
|
|
0.13 |
% |
Average total deposits |
|
1.37 |
% |
|
|
0.70 |
% |
|
|
0.18 |
% |
|
|
0.07 |
% |
|
|
0.08 |
% |
Average interest-bearing liabilities |
|
2.45 |
% |
|
|
1.32 |
% |
|
|
0.49 |
% |
|
|
0.27 |
% |
|
|
0.27 |
% |
Net interest spread (3) |
|
2.53 |
% |
|
|
3.04 |
% |
|
|
3.36 |
% |
|
|
3.32 |
% |
|
|
3.12 |
% |
Net interest margin (3) |
|
3.41 |
% |
|
|
3.57 |
% |
|
|
3.56 |
% |
|
|
3.43 |
% |
|
|
3.24 |
% |
|
|
|
|
|
|
|
|
|
|
Average Balances: |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
Loans and leases, net of deferred fees |
$ |
28,192,953 |
|
|
$ |
27,038,873 |
|
|
$ |
25,499,773 |
|
|
$ |
23,433,019 |
|
|
$ |
21,367,665 |
|
Investment securities |
|
7,824,915 |
|
|
|
8,803,349 |
|
|
|
9,488,653 |
|
|
|
10,397,709 |
|
|
|
9,964,568 |
|
Deposits in financial institutions |
|
1,881,950 |
|
|
|
1,809,809 |
|
|
|
1,984,751 |
|
|
|
3,083,159 |
|
|
|
5,961,104 |
|
Interest-earning assets |
|
37,899,818 |
|
|
|
37,652,031 |
|
|
|
36,973,177 |
|
|
|
36,913,887 |
|
|
|
37,293,337 |
|
Total assets |
|
41,151,963 |
|
|
|
40,841,272 |
|
|
|
40,031,891 |
|
|
|
39,883,304 |
|
|
|
40,358,147 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
12,325,902 |
|
|
|
13,653,177 |
|
|
|
13,987,398 |
|
|
|
14,463,667 |
|
|
|
14,713,385 |
|
Interest-bearing deposits |
|
21,760,402 |
|
|
|
21,214,265 |
|
|
|
19,661,618 |
|
|
|
19,868,395 |
|
|
|
20,050,310 |
|
Total deposits |
|
34,086,304 |
|
|
|
34,867,442 |
|
|
|
33,649,016 |
|
|
|
34,332,062 |
|
|
|
34,763,695 |
|
Borrowings |
|
1,675,738 |
|
|
|
505,482 |
|
|
|
1,356,616 |
|
|
|
298,444 |
|
|
|
234,391 |
|
Subordinated debt |
|
864,581 |
|
|
|
863,719 |
|
|
|
863,653 |
|
|
|
863,572 |
|
|
|
862,777 |
|
Interest-bearing liabilities |
|
24,300,721 |
|
|
|
22,583,466 |
|
|
|
21,881,887 |
|
|
|
21,030,411 |
|
|
|
21,147,478 |
|
Stockholders' equity |
|
3,898,800 |
|
|
|
4,011,179 |
|
|
|
3,652,368 |
|
|
|
3,847,481 |
|
|
|
3,954,267 |
|
|
|
|
|
|
|
|
|
|
|
(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, |
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars
in thousands, except per share data) |
Credit Quality Metrics for Loans |
|
|
|
|
|
|
|
|
|
and
Leases Held for Investment: |
|
|
|
|
|
|
|
|
|
Nonaccrual loans and leases |
$ |
103,778 |
|
|
$ |
89,742 |
|
|
$ |
78,527 |
|
|
$ |
66,538 |
|
|
$ |
61,174 |
|
Nonperforming assets |
|
108,800 |
|
|
|
92,709 |
|
|
|
78,527 |
|
|
|
66,842 |
|
|
|
74,017 |
|
Special mention loans and leases |
|
566,259 |
|
|
|
463,994 |
|
|
|
480,261 |
|
|
|
377,315 |
|
|
|
391,611 |
|
Classified loans and leases |
|
118,271 |
|
|
|
96,685 |
|
|
|
104,264 |
|
|
|
82,068 |
|
|
|
116,104 |
|
Allowance for loan and lease losses |
|
200,732 |
|
|
|
189,327 |
|
|
|
188,705 |
|
|
|
197,398 |
|
|
|
200,564 |
|
Allowance for credit losses |
|
291,803 |
|
|
|
284,398 |
|
|
|
283,776 |
|
|
|
272,469 |
|
|
|
273,635 |
|
For the quarter: |
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
10,000 |
|
|
|
3,000 |
|
|
|
10,000 |
|
|
|
- |
|
|
|
(6,000 |
) |
Net charge-offs (recoveries) |
|
2,595 |
|
|
|
2,378 |
|
|
|
(1,307 |
) |
|
|
1,166 |
|
|
|
169 |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and leases to loans |
|
|
|
|
|
|
|
|
|
and leases |
|
0.36 |
% |
|
|
0.32 |
% |
|
|
0.30 |
% |
|
|
0.27 |
% |
|
|
0.27 |
% |
Nonperforming assets to loans and |
|
|
|
|
|
|
|
|
|
leases and foreclosed assets |
|
0.38 |
% |
|
|
0.34 |
% |
|
|
0.30 |
% |
|
|
0.27 |
% |
|
|
0.32 |
% |
Special mention loans and leases to |
|
|
|
|
|
|
|
|
|
loans and leases |
|
1.98 |
% |
|
|
1.68 |
% |
|
|
1.81 |
% |
|
|
1.55 |
% |
|
|
1.71 |
% |
Classified loans and leases to loans |
|
|
|
|
|
|
|
|
|
and leases |
|
0.41 |
% |
|
|
0.35 |
% |
|
|
0.39 |
% |
|
|
0.34 |
% |
|
|
0.51 |
% |
Allowance for loan and lease losses |
|
|
|
|
|
|
|
|
|
to loans and leases |
|
0.70 |
% |
|
|
0.68 |
% |
|
|
0.71 |
% |
|
|
0.81 |
% |
|
|
0.87 |
% |
Allowance for credit losses to loans |
|
|
|
|
|
|
|
|
|
and leases |
|
1.02 |
% |
|
|
1.03 |
% |
|
|
1.07 |
% |
|
|
1.12 |
% |
|
|
1.19 |
% |
Allowance for credit losses to |
|
|
|
|
|
|
|
|
|
nonaccrual loans and leases |
|
281.18 |
% |
|
|
316.91 |
% |
|
|
361.37 |
% |
|
|
409.49 |
% |
|
|
447.31 |
% |
Net charge-offs (recoveries) |
|
|
|
|
|
|
|
|
|
to average loans and leases |
|
0.04 |
% |
|
|
0.03 |
% |
|
|
(0.02 |
)% |
|
|
0.02 |
% |
|
|
0.00 |
% |
Trailing 12 months net charge-offs |
|
|
|
|
|
|
|
|
|
(recoveries) to average loans and |
|
|
|
|
|
|
|
|
|
leases |
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
(0.02 |
)% |
|
|
(0.01 |
)% |
|
|
|
|
|
|
|
|
|
|
PacWest Bancorp Consolidated: |
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio (1) |
|
8.70 |
% |
|
|
8.56 |
% |
|
|
8.24 |
% |
|
|
8.64 |
% |
|
|
8.86 |
% |
Tier 1 capital ratio (1) |
|
10.60 |
% |
|
|
10.46 |
% |
|
|
10.15 |
% |
|
|
9.07 |
% |
|
|
9.32 |
% |
Total capital ratio (1) |
|
13.61 |
% |
|
|
13.43 |
% |
|
|
13.12 |
% |
|
|
12.27 |
% |
|
|
12.69 |
% |
Tier 1 leverage capital ratio (1) |
|
8.61 |
% |
|
|
8.63 |
% |
|
|
8.52 |
% |
|
|
7.11 |
% |
|
|
6.84 |
% |
Risk-weighted assets (1) |
$ |
33,033,597 |
|
|
$ |
33,042,173 |
|
|
$ |
33,009,455 |
|
|
$ |
30,297,312 |
|
|
$ |
28,508,808 |
|
|
|
|
|
|
|
|
|
|
|
Equity to assets ratio |
|
9.58 |
% |
|
|
9.36 |
% |
|
|
9.72 |
% |
|
|
9.30 |
% |
|
|
9.89 |
% |
Tangible common equity ratio (2) |
|
5.13 |
% |
|
|
4.85 |
% |
|
|
5.15 |
% |
|
|
5.83 |
% |
|
|
6.54 |
% |
Book value per common share |
$ |
28.71 |
|
|
$ |
28.07 |
|
|
$ |
28.93 |
|
|
$ |
30.52 |
|
|
$ |
33.45 |
|
Tangible book value per common share (2) |
$ |
17.00 |
|
|
$ |
16.11 |
|
|
$ |
16.93 |
|
|
$ |
18.42 |
|
|
$ |
21.31 |
|
|
|
|
|
|
|
|
|
|
|
Pacific Western Bank: |
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital ratio (1) |
|
10.32 |
% |
|
|
10.17 |
% |
|
|
9.78 |
% |
|
|
9.32 |
% |
|
|
9.56 |
% |
Tier 1 capital ratio (1) |
|
10.32 |
% |
|
|
10.17 |
% |
|
|
9.78 |
% |
|
|
9.32 |
% |
|
|
9.56 |
% |
Total capital ratio (1) |
|
12.34 |
% |
|
|
12.16 |
% |
|
|
11.77 |
% |
|
|
11.45 |
% |
|
|
11.80 |
% |
Tier 1 leverage capital ratio (1) |
|
8.39 |
% |
|
|
8.39 |
% |
|
|
8.21 |
% |
|
|
7.31 |
% |
|
|
7.00 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Capital information for December 31, 2022 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 common equity, (4)
tangible common equity ratio, and (5) tangible book value per
common 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 PPNR, return on average tangible common equity, tangible common
equity ratio, and tangible book value per common 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) net earnings, (2) return on average assets, (3)
return on average equity, (4) equity to assets ratio, and (5) book
value per common 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 |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars
in thousands) |
Net
earnings |
$ |
49,509 |
|
|
$ |
131,616 |
|
|
$ |
136,045 |
|
|
$ |
423,613 |
|
|
$ |
606,959 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
322,939 |
|
|
$ |
335,181 |
|
|
$ |
300,405 |
|
|
$ |
1,290,762 |
|
|
$ |
1,103,824 |
|
Add:
Noninterest (loss) income |
|
(18,956 |
) |
|
|
38,619 |
|
|
|
57,382 |
|
|
|
74,827 |
|
|
|
193,927 |
|
Less:
Noninterest expense |
|
(226,832 |
) |
|
|
(195,618 |
) |
|
|
(176,110 |
) |
|
|
(773,521 |
) |
|
|
(637,417 |
) |
Add:
Goodwill impairment |
|
29,000 |
|
|
|
- |
|
|
|
- |
|
|
|
29,000 |
|
|
|
- |
|
Pre-provision, pre-goodwill impairment, |
|
|
|
|
|
|
|
|
|
pre-tax net revenue ("PPNR") |
$ |
106,151 |
|
|
$ |
178,182 |
|
|
$ |
181,677 |
|
|
$ |
621,068 |
|
|
$ |
660,334 |
|
|
|
|
|
|
|
|
|
|
|
Average
assets |
$ |
41,151,963 |
|
|
$ |
40,841,272 |
|
|
$ |
40,358,147 |
|
|
$ |
40,481,581 |
|
|
$ |
35,518,488 |
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets (1) |
|
0.48 |
% |
|
|
1.28 |
% |
|
|
1.34 |
% |
|
|
1.05 |
% |
|
|
1.71 |
% |
PPNR return
on average assets (2) |
|
1.02 |
% |
|
|
1.73 |
% |
|
|
1.79 |
% |
|
|
1.53 |
% |
|
|
1.86 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Annualized net earnings divided by average assets. |
|
|
|
|
|
|
|
|
(2) Annualized PPNR divided by average assets. |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
Return on Average |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
Tangible Common Equity |
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars in thousands) |
Net earnings |
$ |
49,509 |
|
|
$ |
131,616 |
|
|
$ |
136,045 |
|
|
$ |
423,613 |
|
|
$ |
606,959 |
|
Less: Preferred stock dividends |
|
(9,947 |
) |
|
|
(9,392 |
) |
|
|
- |
|
|
|
(19,339 |
) |
|
|
- |
|
Net earnings available to |
|
|
|
|
|
|
|
|
|
common stockholders |
|
39,562 |
|
|
|
122,224 |
|
|
|
136,045 |
|
|
|
404,274 |
|
|
|
606,959 |
|
Add: Intangible asset amortization |
|
2,629 |
|
|
|
3,649 |
|
|
|
3,876 |
|
|
|
13,576 |
|
|
|
12,734 |
|
Add: Goodwill impairment |
|
29,000 |
|
|
|
- |
|
|
|
- |
|
|
|
29,000 |
|
|
|
- |
|
Adjusted net earnings |
$ |
71,191 |
|
|
$ |
125,873 |
|
|
$ |
139,921 |
|
|
$ |
446,850 |
|
|
$ |
619,693 |
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity |
$ |
3,898,800 |
|
|
$ |
4,011,179 |
|
|
$ |
3,954,267 |
|
|
$ |
3,853,033 |
|
|
$ |
3,808,019 |
|
Less: Average intangible assets |
|
1,438,173 |
|
|
|
1,441,689 |
|
|
|
1,437,780 |
|
|
|
1,443,528 |
|
|
|
1,269,546 |
|
Less: Average preferred stock |
|
498,516 |
|
|
|
498,516 |
|
|
|
- |
|
|
|
285,488 |
|
|
|
- |
|
Average tangible common equity |
$ |
1,962,111 |
|
|
$ |
2,070,974 |
|
|
$ |
2,516,487 |
|
|
$ |
2,124,017 |
|
|
$ |
2,538,473 |
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (1) |
|
5.04 |
% |
|
|
13.02 |
% |
|
|
13.65 |
% |
|
|
10.99 |
% |
|
|
15.94 |
% |
Return on average tangible |
|
|
|
|
|
|
|
|
|
common equity (2) |
|
14.39 |
% |
|
|
24.11 |
% |
|
|
22.06 |
% |
|
|
21.04 |
% |
|
|
24.41 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Annualized net earnings divided by average stockholders'
equity. |
|
|
|
|
|
|
(2) Annualized adjusted net earnings divided by average tangible
common equity. |
|
|
|
|
|
Tangible Common Equity Ratio/ |
|
|
|
|
|
|
|
|
|
Tangible Book Value Per |
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
Common Share |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(Dollars in thousands, except per share
data) |
Stockholders' equity |
$ |
3,950,531 |
|
|
$ |
3,875,945 |
|
|
$ |
3,978,403 |
|
|
$ |
3,650,595 |
|
|
$ |
3,999,630 |
|
Less:
Preferred stock |
|
498,516 |
|
|
|
498,516 |
|
|
|
498,516 |
|
|
|
- |
|
|
|
- |
|
Total common equity |
|
3,452,015 |
|
|
|
3,377,429 |
|
|
|
3,479,887 |
|
|
|
3,650,595 |
|
|
|
3,999,630 |
|
Less:
Intangible assets |
|
1,408,117 |
|
|
|
1,439,746 |
|
|
|
1,443,395 |
|
|
|
1,447,044 |
|
|
|
1,450,693 |
|
Tangible common equity |
|
2,043,898 |
|
|
|
1,937,683 |
|
|
|
2,036,492 |
|
|
|
2,203,551 |
|
|
|
2,548,937 |
|
Add:
Accumulated other |
|
|
|
|
|
|
|
|
|
comprehensive loss (income) |
|
790,903 |
|
|
|
848,214 |
|
|
|
644,750 |
|
|
|
376,475 |
|
|
|
(65,968 |
) |
Adjusted tangible common equity |
$ |
2,834,801 |
|
|
$ |
2,785,897 |
|
|
$ |
2,681,242 |
|
|
$ |
2,580,026 |
|
|
$ |
2,482,969 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
41,228,936 |
|
|
$ |
41,404,592 |
|
|
$ |
40,950,723 |
|
|
$ |
39,249,639 |
|
|
$ |
40,443,344 |
|
Less:
Intangible assets |
|
1,408,117 |
|
|
|
1,439,746 |
|
|
|
1,443,395 |
|
|
|
1,447,044 |
|
|
|
1,450,693 |
|
Tangible assets |
$ |
39,820,819 |
|
|
$ |
39,964,846 |
|
|
$ |
39,507,328 |
|
|
$ |
37,802,595 |
|
|
$ |
38,992,651 |
|
|
|
|
|
|
|
|
|
|
|
Equity to
assets ratio |
|
9.58 |
% |
|
|
9.36 |
% |
|
|
9.72 |
% |
|
|
9.30 |
% |
|
|
9.89 |
% |
Tangible
common equity ratio (1) |
|
5.13 |
% |
|
|
4.85 |
% |
|
|
5.15 |
% |
|
|
5.83 |
% |
|
|
6.54 |
% |
Tangible
common equity ratio, |
|
|
|
|
|
|
|
|
|
excluding AOCI (2) |
|
7.12 |
% |
|
|
6.97 |
% |
|
|
6.79 |
% |
|
|
6.82 |
% |
|
|
6.37 |
% |
Book value
per common share (3) |
$ |
28.71 |
|
|
$ |
28.07 |
|
|
$ |
28.93 |
|
|
$ |
30.52 |
|
|
$ |
33.45 |
|
Tangible
book value per common share (4) |
$ |
17.00 |
|
|
$ |
16.11 |
|
|
$ |
16.93 |
|
|
$ |
18.42 |
|
|
$ |
21.31 |
|
Tangible
book value per common share, |
|
|
|
|
|
|
|
|
|
excluding AOCI (5) |
$ |
23.58 |
|
|
$ |
23.16 |
|
|
$ |
22.29 |
|
|
$ |
21.57 |
|
|
$ |
20.76 |
|
Common
shares outstanding |
|
120,222,057 |
|
|
|
120,314,023 |
|
|
|
120,288,024 |
|
|
|
119,601,766 |
|
|
|
119,584,854 |
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible common equity divided by tangible assets. |
|
|
|
|
|
|
|
|
(2) Adjusted tangible common equity divided by tangible
assets. |
|
|
|
|
|
|
(3) Total common equity divided by common shares outstanding. |
|
|
|
|
|
|
(4) Tangible common equity divided by common shares
outstanding. |
|
|
|
|
|
|
(5) Adjusted tangible common equity divided by common shares
outstanding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACTS |
|
Kevin L. Thompson
Executive Vice President, Chief Financial Officer
303.802.8934 |
William J. Black
Executive Vice President,
Strategy and Corporate Development
919.597.7466 |
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