UPDATE - PacWest Bancorp Announces the Evolution of Its Business Strategy
27 Januar 2023 - 6:52PM
PacWest Bancorp (Nasdaq:PACW) (the “Company”) today announced a new
strategic plan with a mission to maximize shareholder value by
exceeding customer expectations. This plan focuses on strengthening
our community bank businesses, exiting non-core products and
services, and improving our operational efficiency.
Specifically, the Company made the decision to wind down
operations in our Premium Finance and Multi-Family lending groups
in the fourth quarter of 2022. In addition, the Company is
restructuring Civic, a lending subsidiary, to improve its
profitability and risk profile. Further, the Company
opportunistically sold $1 billion of available-for-sale securities
at a loss in the fourth quarter of 2022 and used the proceeds to
pay down FHLB borrowings. These actions align with our strategy to
focus on relationship-based community banking and to improve
capital, liquidity, and operational efficiency.
Paul W. Taylor, President and CEO, said, “We see opportunity for
growth in earnings through focusing on our core businesses and
customers. Our plan is to build on the strengths of our
deposit-focused relationship-based community bank businesses,
operating as One Team. PacWest has a long history
of acquisitions that brought us great customers, talented employees
but also varied processes and different cultures. We are operating
with a sense of urgency and believe the time is right to focus on
coming together to function more uniformly and efficiently as
One Team, regardless of business line or corporate
function.”
Mr. Taylor added, “We are focused on specific financial
performance metrics that we believe are achievable and where the
Bank should perform over time.”
Our One Team Goals are:
- Build capital to CET1 10%+
- Low cost core deposits equal to 40%
of portfolio
- Return on Assets (ROA) of
1.50%
- Efficiency Ratio of 45%
- Nonperforming Asset Ratio less than
50 bps
- Top quartile Earnings Per Share
(EPS) growth
“We are committed to simplifying and improving our processes to
deliver an even higher level of service to our customers and more
value to our shareholders while meeting or exceeding our
regulators' requirements for safety and soundness. There are real
challenges ahead with rising interest rates and a slowing economy.
But there is also a significant opportunity for PacWest to improve
our performance and return to shareholders given our strong team, a
great customer base, and a plan to unlock additional value for our
shareholders and employees,” Mr. Taylor said.
ABOUT PACWEST BANCORP
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.
CONTACTS
Kevin L.
ThompsonExecutive Vice President,Chief Financial
Officer714.989.4149 |
|
William J.
BlackExecutive Vice President,Strategy and Corporate
Development919.597.7466 |
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