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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported) July 25, 2023
PacWest Bancorp
(Exact name of registrant as specified in
its charter)
Delaware |
|
001-36408 |
|
33-0885320 |
(State of |
|
(Commission File Number) |
|
(IRS Employer |
Incorporation) |
|
|
|
Identification No.) |
9701
Wilshire Blvd., Suite
700, Beverly Hills, California 90212
(Address of principal executive offices
and zip code)
(310) 887-8500
(Registrant’s telephone number, including
area code)
N/A
(Former name or former address, if changed
since last report)
Securities registered pursuant to
Section 12(b) of the Act:
Common Stock, par value $0.01 per share |
|
PACW |
|
The Nasdaq Stock Market, LLC |
|
|
|
|
|
Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock,
Series A |
|
PACWP |
|
The Nasdaq Stock Market, LLC |
(Title of Each Class) |
|
(Trading Symbol) |
|
(Name of Exchange on Which Registered) |
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2. below):
| ¨ | Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425) |
| ¨ | Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth
company ¨
If an
emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ¨
Item 2.02 Results of Operations and Financial Condition.*
On
July 25, 2023, PacWest Bancorp (the “Company”) announced its results of operations and financial condition for the
three and six months ended June 30, 2023. The press release announcing the financial results for the three and six months ended June 30,
2023 is furnished as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.*
(d) Exhibits.
Exhibit
Number |
Description |
*The information furnished under Item 2.02 and Item 9.01 of this Current
Report on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference
in any registration statement or other filings of PacWest Bancorp under the Securities Act of 1933, as amended, except as shall be set
forth by specific reference in such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
PacWest Bancorp |
|
|
|
By: |
/s/ Kevin L. Thompson |
|
Name: |
Kevin L. Thompson |
|
Title: |
Executive Vice President |
|
|
Chief Financial Officer |
Date: July 25, 2023
Exhibit 99.1
July 25,
2023
PACWEST
BANCORP ANNOUNCES RESULTS FOR THE SECOND QUARTER 2023
FOR IMMEDIATE RELEASE
SECOND Quarter
2023 Highlights
| · | Net loss available to common stockholders of $207.4 million, or a loss of $1.75 per diluted share as the quarter was impacted by items
related to loan sales and restructuring of our Civic subsidiary |
| · | Adjusted earnings of $36.0 million and adjusted diluted earnings per common share of $0.22, which exclude the effect of loan sales,
lower of cost or market held for sale (“LOCOM HFS”) adjustments, and reorganization costs as detailed below |
| · | Executed on strategic plan to divest non-core loan portfolios including selling |
| · | National Construction portfolio, including $2.6 billion of loans and $2.3 billion of unfunded commitments |
| · | Lender Finance portfolio, including $2.1 billion of loans and $0.2 billion of unfunded commitments |
| · | A portion of the Civic portfolio, including $521 million of loans and $24 million of unfunded commitments |
| · | Second quarter results were marked by enhanced liquidity and capital |
| · | Immediately-available liquidity (on-balance sheet liquidity and unused borrowing capacity) of $17.9 billion, which exceeded uninsured
deposits of $5.3 billion, with a coverage ratio of 335% at June 30, 2023 |
| · | Total insured deposits represented approximately 81% of total deposits as of June 30, 2023, up from 48% at December 31,
2022 |
| · | All risk-based capital ratios increased from March 31, 2023, with CET1 increasing from 9.21% to 11.16% |
| · | Loans to deposits ratio decreased to 81.5% at June 30, 2023 from 101.0% at March 31, 2023 |
| · | Operational efficiency initiative is ongoing with continued optimization of resources, contracts, facilities, and processes |
ADJUSTED
eARNINGS AND RELATED METRICS
| |
Three Months Ended | |
| |
June 30, | | |
March 31, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| |
| |
(Dollars in thousands, except per share amounts) | |
Earnings Summary: | |
| | | |
| | | |
| | |
Net (loss) earnings | |
$ | (197,414 | ) | |
$ | (1,195,424 | ) | |
$ | 122,360 | |
Diluted earnings per common share | |
$ | (1.75 | ) | |
$ | (10.22 | ) | |
$ | 1.02 | |
Return on average assets | |
| (1.84 | )% | |
| (11.34 | )% | |
| 1.23 | % |
Return on average tangible common equity (1) | |
| (37.62 | )% | |
| 14.45 | % | |
| 24.24 | % |
Efficiency ratio | |
| 527.0 | % | |
| 58.2 | % | |
| 49.5 | % |
| |
| | | |
| | | |
| | |
Adjusted Earnings Summary (1): | |
| | | |
| | | |
| | |
Adjusted earnings | |
$ | 35,957 | | |
$ | 89,436 | | |
$ | 122,360 | |
Adjusted diluted earnings per common share | |
$ | 0.22 | | |
$ | 0.66 | | |
$ | 1.02 | |
Adjusted return on average assets | |
| 0.34 | % | |
| 0.85 | % | |
| 1.23 | % |
Adjusted return on average tangible common equity | |
| 5.08 | % | |
| 15.62 | % | |
| 24.24 | % |
Adjusted efficiency ratio | |
| 86.9 | % | |
| 58.2 | % | |
| 49.5 | % |
(1) Non-GAAP measure.
Financial results for the second quarter of 2023 were impacted by $277.7
million of losses on the sale of loans and unfunded commitments and LOCOM HFS adjustments, Civic loan sale charge-offs of $22.4 million,
and $12.4 million of reorganization costs. Financial results for the first quarter of 2023 were impacted by a goodwill impairment of $1.38
billion and reorganization costs of $8.5 million. Excluding these amounts, adjusted earnings were $36.0 million, or $0.22 per diluted
share, for the second quarter of 2023 and $89.4 million, or $0.66 per diluted share, for the first quarter of 2023. A reconciliation of
adjusted earnings to net (loss) earnings according to generally accepted accounting principles in the United States (“GAAP”)
is provided in the financial tables at the end of this press release.
CEO COMMENTARY
Paul Taylor, President and CEO, commented, “At the end of the
first quarter, we communicated our strategic plan to exit non-core products and services and strengthen our community banking business
which would improve our capital ratios, liquidity, and operational efficiency. We expected to execute this plan over several quarters,
however, given that market conditions changed, we pivoted to shrink the balance sheet through the sale of three significant non-core loan
portfolios. These loan sales accelerated our balance sheet restructuring, reducing risk in our loan portfolio, and improving our capital
ratios and liquidity. The significant reduction in risk-weighted assets resulted in much improved capital ratios, and our CET1 capital
ratio improved from 9.21% at March 31, 2023 to 11.16% at June 30, 2023.”
Mr. Taylor continued, “We are continuing the work we started
last year to improve the overall efficiency of the Bank, which resulted in severance, asset write-off, and contract termination expense
of $12.4 million in the second quarter of 2023. Since the beginning of the year, we have reduced our employee count by 560 employees,
primarily at our Civic subsidiary. We have identified many other areas to improve efficiency across the Bank and will be executing on
these measures in the coming months.”
Mr. Taylor concluded, “Due to the competitive marketplace
for deposits, we are introducing new products and technology solutions to successfully grow customer deposits. At the end of the second
quarter, we introduced a digital account opening tool to efficiently gather new deposits. In the third quarter, we expect to implement
a new on-line channel for gathering deposits directly from consumers.”
FINANCIAL HIGHLIGHTS
| |
At or For the | | |
| | |
At or For the | | |
| |
| |
Three Months Ended | | |
| | |
Six Months Ended | | |
| |
| |
June 30, | | |
March 31, | | |
Increase | | |
June 30, | | |
Increase | |
Financial Highlights | |
2023 | | |
2023 | | |
(Decrease) | | |
2023 | | |
2022 | | |
(Decrease) | |
| |
| | |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands, except per share amounts) | |
Net (loss) earnings available to common stockholders | |
$ | (207,361 | ) | |
$ | (1,205,371 | ) | |
$ | 998,010 | | |
$ | (1,412,732 | ) | |
$ | 242,488 | | |
$ | (1,655,220 | ) |
Diluted (loss) earnings per common share | |
$ | (1.75 | ) | |
$ | (10.22 | ) | |
$ | 8.47 | | |
$ | (11.96 | ) | |
$ | 2.03 | | |
$ | (13.99 | ) |
Pre-provision, pre-goodwill impairment, pre-tax net revenue
("PPNR") (1) | |
$ | (262,443 | ) | |
$ | 119,396 | | |
$ | (381,839 | ) | |
$ | (143,047 | ) | |
$ | 336,735 | | |
$ | (479,782 | ) |
Return on average assets | |
| (1.84 | )% | |
| (11.34 | )% | |
| 9.50 | | |
| (6.55 | )% | |
| 1.22 | % | |
| (7.77 | ) |
PPNR return on average assets (1) | |
| (2.45 | )% | |
| 1.13 | % | |
| (3.58 | ) | |
| (0.67 | )% | |
| 1.70 | % | |
| (2.37 | ) |
Return on average tangible common equity (1) | |
| (37.62 | )% | |
| 14.45 | % | |
| (52.07 | ) | |
| (11.00 | )% | |
| 22.40 | % | |
| (33.40 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Yield on average loans and leases (tax equivalent) | |
| 6.08 | % | |
| 6.14 | % | |
| (0.06 | ) | |
| 6.11 | % | |
| 4.66 | % | |
| 1.45 | |
Cost of average total deposits | |
| 2.62 | % | |
| 1.98 | % | |
| 0.64 | | |
| 2.27 | % | |
| 0.13 | % | |
| 2.14 | |
Net interest margin ("NIM") (tax equivalent) | |
| 1.82 | % | |
| 2.89 | % | |
| (1.07 | ) | |
| 2.34 | % | |
| 3.50 | % | |
| (1.16 | ) |
Efficiency ratio | |
| 527.0 | % | |
| 58.2 | % | |
| 468.8 | | |
| 130.5 | % | |
| 49.8 | % | |
| 80.7 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total assets | |
$ | 38,337,250 | | |
$ | 44,302,981 | | |
$ | (5,965,731 | ) | |
$ | 38,337,250 | | |
$ | 40,950,723 | | |
$ | (2,613,473 | ) |
Loans and leases held for investment, net of deferred
fees | |
$ | 22,258,210 | | |
$ | 25,672,381 | | |
$ | (3,414,171 | ) | |
$ | 22,258,210 | | |
$ | 26,501,137 | | |
$ | (4,242,927 | ) |
Noninterest-bearing demand deposits | |
$ | 6,055,358 | | |
$ | 7,030,759 | | |
$ | (975,401 | ) | |
$ | 6,055,358 | | |
$ | 13,338,029 | | |
$ | (7,282,671 | ) |
Interest-bearing deposits | |
$ | 21,841,725 | | |
$ | 21,156,802 | | |
$ | 684,923 | | |
$ | 21,841,725 | | |
$ | 20,630,123 | | |
$ | 1,211,602 | |
Total deposits | |
$ | 27,897,083 | | |
$ | 28,187,561 | | |
$ | (290,478 | ) | |
$ | 27,897,083 | | |
$ | 33,968,152 | | |
$ | (6,071,069 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
As percentage of total deposits: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Noninterest-bearing demand deposits | |
| 22 | % | |
| 25 | % | |
| (3 | ) | |
| 22 | % | |
| 39 | % | |
| (17 | ) |
Interest-bearing deposits | |
| 78 | % | |
| 75 | % | |
| 3 | | |
| 78 | % | |
| 61 | % | |
| 17 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Equity to assets ratio | |
| 6.61 | % | |
| 6.26 | % | |
| 0.35 | | |
| 6.61 | % | |
| 9.72 | % | |
| (3.11 | ) |
Common equity tier 1 capital ratio | |
| 11.16 | % | |
| 9.21 | % | |
| 1.95 | | |
| 11.16 | % | |
| 8.24 | % | |
| 2.92 | |
Tier 1 capital ratio | |
| 13.70 | % | |
| 11.15 | % | |
| 2.55 | | |
| 13.70 | % | |
| 10.15 | % | |
| 3.55 | |
Total capital ratio | |
| 17.61 | % | |
| 14.21 | % | |
| 3.40 | | |
| 17.61 | % | |
| 13.12 | % | |
| 4.49 | |
Tangible common equity ratio (1) | |
| 5.24 | % | |
| 5.07 | % | |
| 0.17 | | |
| 5.24 | % | |
| 5.15 | % | |
| 0.09 | |
Tangible book value per | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
common share (1) | |
$ | 16.71 | | |
$ | 18.66 | | |
$ | (1.95 | ) | |
$ | 16.71 | | |
$ | 16.93 | | |
$ | (0.22 | ) |
(1) Non-GAAP measure.
INCOME STATEMENT
HIGHLIGHTS
NET INTEREST
INCOME
Net interest income decreased by $93.2 million to $186.1 million for
the second quarter of 2023 compared to $279.3 million for the first quarter of 2023 due mainly to higher interest expense on deposits
and borrowings and lower interest income on loans and leases, offset partially by higher interest income on deposits in financial institutions.
Interest income on deposits in financial institutions increased by $43.9 million in the second quarter of 2023 due mainly to a $3.2 billion
increase in the average balance of deposits in financial institutions and a 37 basis points increase in the yield. Interest income on
loans and leases decreased by $21.7 million in the second quarter of 2023 due to a $1.6 billion decrease in the average balance of loans
and leases and a six basis points decrease in the tax equivalent yield on loans and leases compared to the first quarter of 2023. The
tax equivalent yield on loans and leases was 6.08% in the second quarter of 2023 compared to 6.14% in the first quarter of 2023. The decrease
in the tax equivalent yield on loans and leases was due primarily to lower levels of higher-yielding Civic and construction loans and
a smaller tax equivalent adjustment in the second quarter. Interest expense on deposits increased by $22.9 million in the second quarter
of 2023 due mainly to increased market rates and an increased use of brokered deposits that contributed to a 44 basis points increase
in the cost of total deposits. Interest expense on borrowings increased by $91.8 million due to a $6.2 billion increase in the average
balance and a 34 basis points increase in the cost of borrowings attributable mainly to the result of the borrowings under the Bank Term
Funding Program and repurchase agreement being in effect for a full quarter, as these borrowings were entered into in March 2023.
The tax equivalent NIM was 1.82% for the second quarter of 2023 compared
to 2.89% for the first quarter of 2023. The decrease in the NIM was due mainly to a shift in our funding mix during the second quarter
of 2023. Average borrowings as a percentage of average interest-bearing liabilities was 34% for the second quarter of 2023 compared to
19% for the first quarter of 2023. The tax-equivalent NIM was further impacted by a higher cost of total deposits and borrowings and a
lower yield on loans and leases, offset partially by a higher yield on deposits in financial institutions.
The cost of total deposits was 2.62% for the second quarter of 2023
compared to 1.98% for the first quarter of 2023 due mainly to higher market interest rates and a higher average balance of brokered deposits.
PROVISION
FOR CREDIT LOSSES
The following table presents details of the provision for credit losses
for the periods indicated:
| |
Three Months Ended | | |
| |
| |
June 30, | | |
March 31, | | |
Increase | |
Provision for Credit Losses | |
2023 | | |
2023 | | |
(Decrease) | |
| |
| | |
| | |
| |
| |
(In thousands) | |
Addition to allowance for loan and lease
losses | |
$ | 40,000 | | |
$ | 18,500 | | |
$ | 21,500 | |
Reduction in reserve for unfunded loan
commitments | |
| (38,000 | ) | |
| (15,500 | ) | |
| (22,500 | ) |
Total loan-related provision | |
| 2,000 | | |
| 3,000 | | |
| (1,000 | ) |
Addition to allowance for
held-to-maturity securities | |
| - | | |
| - | | |
| - | |
Total provision for credit losses | |
$ | 2,000 | | |
$ | 3,000 | | |
$ | (1,000 | ) |
The provision for credit losses was $2.0 million for the second quarter
of 2023 compared to $3.0 million for the first quarter of 2023. The provision for the second quarter of 2023 reflected the impact of an
updated forecast, higher net charge-offs and higher reserves for downgraded loans largely offset by lower reserves needed for lower loan
and unfunded commitment balances. During the first quarter of 2023, while loans and leases held for investment and unfunded loan commitments
declined, a $3.0 million provision was recognized due to an increase in qualitative reserves for loans secured by commercial real estate
and higher net charge-offs.
Noninterest
Income
The following table presents details of noninterest income for the
periods indicated:
| |
Three Months Ended | | |
| |
| |
June 30, | | |
March 31, | | |
Increase | |
Noninterest Income | |
2023 | | |
2023 | | |
(Decrease) | |
| |
| | |
| | |
| |
| |
(In thousands) | |
Service charges on deposit accounts | |
$ | 4,315 | | |
$ | 3,573 | | |
$ | 742 | |
Other commissions and fees | |
| 11,241 | | |
| 10,344 | | |
| 897 | |
Leased equipment income | |
| 22,387 | | |
| 13,857 | | |
| 8,530 | |
(Loss) gain on sale of loans and leases | |
| (158,881 | ) | |
| 2,962 | | |
| (161,843 | ) |
Gain (loss) on sale of securities | |
| - | | |
| - | | |
| - | |
Dividends and gains on equity investments | |
| 2,658 | | |
| 1,098 | | |
| 1,560 | |
Warrant loss | |
| (124 | ) | |
| (333 | ) | |
| 209 | |
LOCOM HFS adjustment | |
| (11,943 | ) | |
| - | | |
| (11,943 | ) |
Other income | |
| 2,265 | | |
| 4,890 | | |
| (2,625 | ) |
Total noninterest (loss) income | |
$ | (128,082 | ) | |
$ | 36,391 | | |
$ | (164,473 | ) |
Noninterest income decreased by $164.5 million to a loss of $128.1
million for the second quarter of 2023 compared to income of $36.4 million for the first quarter of 2023 due primarily to a decrease of
$161.8 million in gain on sale of loans and leases and a $11.9 million LOCOM HFS loss adjustment, offset partially by an increase of $8.5
million in leased equipment income. The second quarter loss on sale of loans and leases resulted from the sale of $5.2 billion of loans
for a net loss of $158.9 million in the second quarter of 2023 compared to the sale of $287.3 million of loans for a net gain of $3.0
million in the first quarter of 2023. The $11.9 million LOCOM HFS loss adjustment was related to the lower of cost or market adjustment
that we made to our $478.1 million loans held for sale at June 30, 2023. The increase in leased equipment income was due mainly to
$8.8 million of early lease termination gains recognized in the second quarter of 2023 compared to the linked quarter.
Noninterest
Expense
The following table presents details of noninterest expense for the
periods indicated:
| |
Three Months Ended | | |
| |
| |
June 30, | | |
March 31, | | |
Increase | |
Noninterest Expense | |
2023 | | |
2023 | | |
(Decrease) | |
| |
| | |
| | |
| |
| |
(In thousands) | |
Compensation | |
$ | 82,881 | | |
$ | 88,476 | | |
$ | (5,595 | ) |
Occupancy | |
| 15,383 | | |
| 15,067 | | |
| 316 | |
Data processing | |
| 10,963 | | |
| 10,938 | | |
| 25 | |
Other professional services | |
| 9,973 | | |
| 6,073 | | |
| 3,900 | |
Insurance and assessments | |
| 25,635 | | |
| 11,717 | | |
| 13,918 | |
Intangible asset amortization | |
| 2,389 | | |
| 2,411 | | |
| (22 | ) |
Leased equipment depreciation | |
| 9,088 | | |
| 9,375 | | |
| (287 | ) |
Foreclosed assets expense, net | |
| 2 | | |
| 363 | | |
| (361 | ) |
Customer related expense | |
| 27,302 | | |
| 24,005 | | |
| 3,297 | |
Loan expense | |
| 5,245 | | |
| 6,524 | | |
| (1,279 | ) |
Other | |
| 119,182 | | |
| 12,804 | | |
| 106,378 | |
Total operating expense | |
| 308,043 | | |
| 187,753 | | |
| 120,290 | |
Acquisition, integration and reorganization costs | |
| 12,394 | | |
| 8,514 | | |
| 3,880 | |
Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| (1,376,736 | ) |
Total noninterest expense | |
$ | 320,437 | | |
$ | 1,573,003 | | |
$ | (1,252,566 | ) |
Noninterest expense decreased by $1.25 billion to $320.4 million in
the second quarter of 2023 compared to $1.57 billion for the first quarter of 2023 due primarily to the $1.38 billion goodwill impairment
charge recorded in the first quarter of 2023. Excluding the goodwill impairment and acquisition, integration and reorganization costs,
operating expense increased by $120.3 million to $308.0 million. The $120.3 million increase was due mainly to an increase of $106.4 million
in other expense and an increase of $13.9 million in insurance and assessments expense. The increase in other expense was due mainly to
$106.8 million of unfunded commitments fair value loss adjustments in the second quarter of 2023. The increase in insurance and assessments
was due mainly to higher FDIC assessment expense attributable to an increased assessment rate due to lower core earnings, lower core deposits,
and a higher level of criticized loans and leases.
Income Taxes
The effective income tax rate was 25.3% for the second quarter of 2023
compared to 5.2% for the first quarter of 2023. Excluding goodwill impairment, the effective income tax rate for the first quarter of
2023 was 28.4%. The decrease from the first quarter of 2023 adjusted rate was due primarily to higher disallowed interest expense, higher
disallowed FDIC assessment expense, and higher shortfalls from restricted stock vesting in the second quarter of 2023. Excluding goodwill
impairment, the effective tax rate for the full year 2023 is currently estimated to be in the range of 22% to 24%.
BALANCE
SHEET HIGHLIGHTS
Deposits
and Client Investment Funds
The following tables present the composition of our deposit portfolio
as of the dates indicated:
| |
June 30, 2023 | | |
March 31, 2023 | | |
June 30, 2022 | |
| |
| | |
% of | | |
| | |
% of | | |
| | |
% of | |
Deposits By Account Type | |
Balance | | |
Total | | |
Balance | | |
Total | | |
Balance | | |
Total | |
| |
| | |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Noninterest-bearing | |
$ | 6,055,358 | | |
| 22 | % | |
$ | 7,030,759 | | |
| 25 | % | |
$ | 13,338,029 | | |
| 39 | % |
Interest-bearing: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Transaction (NOW) | |
| 7,112,807 | | |
| 26 | % | |
| 5,360,622 | | |
| 19 | % | |
| 6,372,460 | | |
| 19 | % |
Money market | |
| 5,678,323 | | |
| 20 | % | |
| 8,195,670 | | |
| 29 | % | |
| 11,039,455 | | |
| 32 | % |
Savings | |
| 897,277 | | |
| 3 | % | |
| 671,918 | | |
| 2 | % | |
| 653,950 | | |
| 2 | % |
Time deposits (1) | |
| 8,153,318 | | |
| 29 | % | |
| 6,928,592 | | |
| 25 | % | |
| 2,564,258 | | |
| 8 | % |
Total interest-bearing | |
| 21,841,725 | | |
| 78 | % | |
| 21,156,802 | | |
| 75 | % | |
| 20,630,123 | | |
| 61 | % |
Total deposits | |
$ | 27,897,083 | | |
| 100 | % | |
$ | 28,187,561 | | |
| 100 | % | |
$ | 33,968,152 | | |
| 100 | % |
(1) Includes time
deposits over $250,000 of $853.4 million, $1.1 billion, and $665.9 million at June 30, 2023, March 31, 2023, and
June 30, 2022, respectively.
| |
| June 30, 2023 | | |
| March 31, 2023 | | |
| June 30, 2022 | |
| |
| | | |
| % of | | |
| | | |
| % of | | |
| | | |
| % of | |
Deposits By Customer Type | |
| Balance | | |
| Total | | |
| Balance | | |
| Total | | |
| Balance | | |
| Total | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (Dollars in thousands) | |
Noninterest-bearing | |
$ | 6,055,358 | | |
| 22 | % | |
$ | 7,030,759 | | |
| 25 | % | |
$ | 13,338,029 | | |
| 39 | % |
Interest-bearing: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Consumer and commercial: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Reciprocal | |
| 7,935,479 | | |
| 29 | % | |
| 6,744,447 | | |
| 24 | % | |
| 3,447,382 | | |
| 10 | % |
Non-reciprocal | |
| 6,257,971 | | |
| 22 | % | |
| 7,958,001 | | |
| 28 | % | |
| 13,787,432 | | |
| 41 | % |
Brokered | |
| 7,648,275 | | |
| 27 | % | |
| 6,454,354 | | |
| 23 | % | |
| 3,395,309 | | |
| 10 | % |
Total interest-bearing | |
| 21,841,725 | | |
| 78 | % | |
| 21,156,802 | | |
| 75 | % | |
| 20,630,123 | | |
| 61 | % |
Total deposits | |
$ | 27,897,083 | | |
| 100 | % | |
$ | 28,187,561 | | |
| 100 | % | |
$ | 33,968,152 | | |
| 100 | % |
Total deposits decreased by $290.5 million or 1.0% in the second quarter
of 2023 due to a $975.4 million decrease in noninterest-bearing deposits, offset partially by a $684.9 million increase in interest-bearing
deposits. At June 30, 2023, noninterest-bearing deposits totaled $6.1 billion or 22% of total deposits and interest-bearing deposits
totaled $21.8 billion or 78% of total deposits.
The following table presents the composition of our deposit portfolio
by division as of the dates indicated:
| |
June 30, 2023 | | |
March 31, 2023 | | |
| |
| |
| | |
% of | | |
| | |
% of | | |
Increase | |
Deposits By Division | |
Balance | | |
Total | | |
Balance | | |
Total | | |
(Decrease) | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Community Banking | |
$ | 14,353,851 | | |
| 51 | % | |
$ | 14,917,027 | | |
| 53 | % | |
$ | (563,176 | ) |
Venture Banking | |
| 5,764,220 | | |
| 21 | % | |
| 6,584,554 | | |
| 23 | % | |
| (820,334 | ) |
Wholesale Deposits | |
| 7,779,012 | | |
| 28 | % | |
| 6,685,980 | | |
| 24 | % | |
| 1,093,032 | |
Total deposits | |
$ | 27,897,083 | | |
| 100 | % | |
$ | 28,187,561 | | |
| 100 | % | |
$ | (290,478 | ) |
As of June 30, 2023, FDIC-insured deposits represented approximately
81% of total deposits and FDIC-insured venture-specific deposits accounted for approximately 83% of total venture-specific deposits. The
Bank’s spot deposit rates increased from 2.32% at March 31, 2023 to 2.71% at June 30, 2023. Since May 10, 2023 (the
date of our last deposit disclosure in our March 31, 2023 Form 10-Q filing) through July 21, 2023, our total non-brokered
deposits were up approximately $1.0 billion.
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 $1.2 billion as of March 31, 2023 to $0.8 billion at June 30, 2023, of which $0.4 billion was
managed by PWAM.
BORROWINGS
The following table presents the composition of our borrowings as of
the dates indicated:
| |
June 30, 2023 | | |
March 31, 2023 | | |
| |
| |
| | |
Weighted | | |
| | |
Weighted | | |
| |
| |
| | |
Average | | |
| | |
Average | | |
Increase | |
Borrowing Type | |
Balance | | |
Rate | | |
Balance | | |
Rate | | |
(Decrease) | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
FHLB secured advances | |
$ | - | | |
| - | | |
$ | 5,450,000 | | |
| 5.07 | % | |
$ | (5,450,000 | ) |
Bank Term Funding Program | |
| 4,910,000 | | |
| 4.38 | % | |
| 4,910,000 | | |
| 4.38 | % | |
| - | |
Repurchase agreement (1) | |
| 1,324,273 | | |
| 8.50 | % | |
| 1,393,337 | | |
| 8.50 | % | |
| (69,064 | ) |
Credit-linked notes | |
| 123,065 | | |
| 15.77 | % | |
| 128,375 | | |
| 15.24 | % | |
| (5,310 | ) |
Total borrowings | |
$ | 6,357,338 | | |
| 5.46 | % | |
$ | 11,881,712 | | |
| 5.30 | % | |
$ | (5,524,374 | ) |
(1) Balance is net of unamortized issuance costs of $14.3 million and $2.7 million of accrued exit fees.
Rate calculation does not include the effects of issuance costs and exit fees.
The $5.5 billion decrease in borrowings in the second quarter of 2023
was due mainly to the payoff of FHLB secured advances with the proceeds of the loan sales. Available borrowing capacity was approximately
$11.4 billion at June 30, 2023.
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 | | |
Six Months Ended | |
Roll Forward of Loans and Leases Held | |
June 30, | | |
March 31, | | |
June 30, | |
for Investment, Net of Deferred Fees | |
2023 | | |
2023 | | |
2023 | |
| |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Balance, beginning of period | |
$ | 25,672,381 | | |
$ | 28,609,129 | | |
$ | 28,609,129 | |
Additions: | |
| | | |
| | | |
| | |
Production | |
| 189,201 | | |
| 468,671 | | |
| 657,872 | |
Disbursements | |
| 1,143,347 | | |
| 1,622,898 | | |
| 2,766,245 | |
Total production and disbursements | |
| 1,332,548 | | |
| 2,091,569 | | |
| 3,424,117 | |
Reductions: | |
| | | |
| | | |
| | |
Payoffs | |
| (942,962 | ) | |
| (1,021,652 | ) | |
| (1,964,614 | ) |
Paydowns | |
| (817,033 | ) | |
| (965,537 | ) | |
| (1,782,570 | ) |
Total payoffs and paydowns | |
| (1,759,995 | ) | |
| (1,987,189 | ) | |
| (3,747,184 | ) |
Sales | |
| (3,038,672 | ) | |
| (231,798 | ) | |
| (3,270,470 | ) |
Transfers to foreclosed assets | |
| (6,657 | ) | |
| (2,568 | ) | |
| (9,225 | ) |
Charge-offs | |
| (31,708 | ) | |
| (10,397 | ) | |
| (42,105 | ) |
Transfers to loans held for sale | |
| (280,062 | ) | |
| (2,796,365 | ) | |
| (3,076,427 | ) |
Total reductions | |
| (5,117,094 | ) | |
| (5,028,317 | ) | |
| (10,145,411 | ) |
Transfers from loans held for sale | |
| 370,375 | | |
| - | | |
| 370,375 | |
Net (decrease) increase | |
| (3,414,171 | ) | |
| (2,936,748 | ) | |
| (6,350,919 | ) |
Balance, end of period | |
$ | 22,258,210 | | |
$ | 25,672,381 | | |
$ | 21,887,835 | |
| |
| | | |
| | | |
| | |
Weighted average rate on production (1) | |
| 7.64 | % | |
| 8.44 | % | |
| 8.21 | % |
(1) The
weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees. Amortized fees
added approximately 17 basis points to loan yields in 2023.
Loans and leases held for investment, net of deferred fees, decreased
by $3.4 billion, or 13.3% in the second quarter of 2023 to $22.3 billion at June 30, 2023. The overall decrease in the loans and
leases balance for the second quarter of 2023 was due primarily to the sale of the $2.6 billion National Construction portfolio and $521
million of the Civic portfolio in the second quarter.
The weighted average rate on the $189.2 million of production for the
second quarter of 2023 decreased to 7.64% from 8.44% for the first quarter of 2023 due primarily to the loan mix (lower percentage of
Civic production).
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:
| |
June 30, 2023 | | |
March 31, 2023 | | |
June 30, 2022 | |
| |
| | |
% of | | |
| | |
% of | | |
| | |
% of | |
Loan and Lease Portfolio | |
Balance | | |
Total | | |
Balance | | |
Total | | |
Balance | | |
Total | |
| |
| | |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Real estate mortgage: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial | |
$ | 3,610,320 | | |
| 16 | % | |
$ | 3,808,751 | | |
| 15 | % | |
$ | 3,670,515 | | |
| 14 | % |
Multi-family | |
| 5,304,544 | | |
| 24 | % | |
| 5,523,320 | | |
| 21 | % | |
| 5,062,422 | | |
| 19 | % |
Other residential | |
| 5,373,178 | | |
| 24 | % | |
| 6,075,540 | | |
| 24 | % | |
| 5,321,148 | | |
| 20 | % |
Total real estate mortgage | |
| 14,288,042 | | |
| 64 | % | |
| 15,407,611 | | |
| 60 | % | |
| 14,054,085 | | |
| 53 | % |
Real estate construction and land: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial | |
| 415,997 | | |
| 2 | % | |
| 910,327 | | |
| 4 | % | |
| 837,423 | | |
| 3 | % |
Residential | |
| 2,049,526 | | |
| 9 | % | |
| 3,698,113 | | |
| 14 | % | |
| 2,649,177 | | |
| 10 | % |
Total
real estate construction and land | |
| 2,465,523 | | |
| 11 | % | |
| 4,608,440 | | |
| 18 | % | |
| 3,486,600 | | |
| 13 | % |
Total real estate | |
| 16,753,565 | | |
| 75 | % | |
| 20,016,051 | | |
| 78 | % | |
| 17,540,685 | | |
| 66 | % |
Commercial: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Asset-based | |
| 2,357,098 | | |
| 11 | % | |
| 2,068,327 | | |
| 8 | % | |
| 5,068,112 | | |
| 19 | % |
Venture capital | |
| 1,723,476 | | |
| 8 | % | |
| 2,058,237 | | |
| 8 | % | |
| 2,179,190 | | |
| 8 | % |
Other commercial | |
| 1,014,212 | | |
| 4 | % | |
| 1,102,543 | | |
| 4 | % | |
| 1,229,504 | | |
| 5 | % |
Total commercial | |
| 5,094,786 | | |
| 23 | % | |
| 5,229,107 | | |
| 20 | % | |
| 8,476,806 | | |
| 32 | % |
Consumer | |
| 409,859 | | |
| 2 | % | |
| 427,223 | | |
| 2 | % | |
| 483,646 | | |
| 2 | % |
Total
loans and leases held for investment, net of deferred fees | |
$ | 22,258,210 | | |
| 100 | % | |
$ | 25,672,381 | | |
| 100 | % | |
$ | 26,501,137 | | |
| 100 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total unfunded loan commitments | |
$ | 5,845,375 | | |
| | | |
$ | 9,776,789 | | |
| | | |
$ | 11,866,437 | | |
| | |
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 June 30, 2023 | |
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 | |
$ | 210,055 | | |
$ | 75,571 | | |
$ | 285,626 | |
Civic loan sale charge-offs | |
| (22,446 | ) | |
| - | | |
| (22,446 | ) |
Other charge-offs | |
| (9,262 | ) | |
| - | | |
| (9,262 | ) |
Total charge-offs | |
| (31,708 | ) | |
| - | | |
| (31,708 | ) |
Recoveries | |
| 887 | | |
| - | | |
| 887 | |
Net charge-offs | |
| (30,821 | ) | |
| - | | |
| (30,821 | ) |
Provision | |
| 40,000 | | |
| (38,000 | ) | |
| 2,000 | |
Ending balance | |
$ | 219,234 | | |
$ | 37,571 | | |
$ | 256,805 | |
| |
Three Months Ended March 31, 2023 | |
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 | |
$ | 200,732 | | |
$ | 91,071 | | |
$ | 291,803 | |
Charge-offs | |
| (10,397 | ) | |
| - | | |
| (10,397 | ) |
Recoveries | |
| 1,220 | | |
| - | | |
| 1,220 | |
Net charge-offs | |
| (9,177 | ) | |
| - | | |
| (9,177 | ) |
Provision | |
| 18,500 | | |
| (15,500 | ) | |
| 3,000 | |
Ending balance | |
$ | 210,055 | | |
$ | 75,571 | | |
$ | 285,626 | |
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 | |
June 30, | | |
March 31, | | |
Increase | |
on Loans and Leases | |
2023 | | |
2023 | | |
(Decrease) | |
| |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Allowance for loan and lease losses | |
$ | 219,234 | | |
$ | 210,055 | | |
$ | 9,179 | |
Reserve for unfunded loan commitments | |
| 37,571 | | |
| 75,571 | | |
| (38,000 | ) |
Allowance for credit losses | |
$ | 256,805 | | |
$ | 285,626 | | |
$ | (28,821 | ) |
| |
| | | |
| | | |
| | |
Provision for credit losses (for the quarter) | |
$ | 2,000 | | |
$ | 3,000 | | |
$ | (1,000 | ) |
Net charge-offs (for the quarter) | |
$ | 30,821 | | |
$ | 9,177 | | |
$ | 21,644 | |
Net charge-offs to average loans and leases (for the quarter) | |
| 0.46 | % | |
| 0.13 | % | |
| | |
Allowance for loan and lease losses to loans and leases held for investment | |
| 0.98 | % | |
| 0.82 | % | |
| | |
Allowance for credit losses to loans and leases held for investment | |
| 1.15 | % | |
| 1.11 | % | |
| | |
The allowance for credit losses decreased by $28.8 million in the second
quarter of 2023 to $256.8 million at June 30, 2023. This decrease was attributable mainly to lower reserves needed due to the decrease
in loans and leases held for investment and unfunded loan commitments and $22.4 million of charge-offs related to Civic loan sales, offset
partially by the impact of an updated forecast and higher reserves needed for downgraded loans.
Net charge-offs over the trailing twelve months were $45.0 million,
which resulted in net charge-offs to average loans and leases over the trailing twelve months of 0.17%.
CREDIT QUALITY
The following table presents loan and lease credit quality metrics
as of the dates indicated:
| |
June 30, | | |
March 31, | | |
Increase | |
Credit Quality Metrics | |
2023 | | |
2023 | | |
(Decrease) | |
| |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Nonperforming Assets: | |
| | | |
| | | |
| | |
Nonaccrual loans and leases held for investment (1) | |
$ | 104,886 | | |
$ | 87,124 | | |
$ | 17,762 | |
Accruing loans contractually past due 90 days or more | |
| - | | |
| - | | |
| - | |
Foreclosed assets, net | |
| 8,426 | | |
| 2,135 | | |
| 6,291 | |
Total nonperforming assets (“NPAs”) | |
$ | 113,312 | | |
$ | 89,259 | | |
$ | 24,053 | |
| |
| | | |
| | | |
| | |
Nonaccrual loans and leases held for investment to loans and leases held for investment | |
| 0.47 | % | |
| 0.34 | % | |
| | |
Nonperforming assets to loans and leases held for investment and foreclosed assets | |
| 0.51 | % | |
| 0.35 | % | |
| | |
Allowance for credit losses to nonaccrual loans and leases held for investment | |
| 244.8 | % | |
| 327.8 | % | |
| | |
| |
| | | |
| | | |
| | |
Loan and Lease Credit Risk Ratings: | |
| | | |
| | | |
| | |
Pass | |
$ | 21,679,908 | | |
$ | 24,959,805 | | |
$ | (3,279,897 | ) |
Special mention | |
| 366,368 | | |
| 580,153 | | |
| (213,785 | ) |
Classified | |
| 211,934 | | |
| 132,423 | | |
| 79,511 | |
Total loans and leases held for investment, net of deferred fees | |
$ | 22,258,210 | | |
$ | 25,672,381 | | |
$ | (3,414,171 | ) |
| |
| | | |
| | | |
| | |
Special mention loans and leases held for investment to loans and leases held for investment | |
| 1.65 | % | |
| 2.26 | % | |
| | |
Classified loans and leases held for investment to loans and leases held for investment | |
| 0.95 | % | |
| 0.52 | % | |
| | |
(1) Nonaccrual
loans include SBA guaranteed amounts of $14.8 million at June 30, 2023 and $11.8 million at March 31, 2023.
Nonaccrual loans and leases increased by $17.8 million to $104.9 million
in the second quarter of 2023 due primarily to an increase in nonaccrual Civic loans and nonaccrual SBA guarantied real estate loans.
The increase in classified loans (and subsequent decrease in special mention) was driven by downgrades in Multifamily loans as the result
of rising interest rates and the related stress on debt service. All of the Multifamily loans downgraded remain well collateralized
and current at quarter-end.
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:
| |
June 30,
2023 | | |
March 31,
2023 | | |
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 | |
$ | 37,191 | | |
$ | - | | |
$ | 32,996 | | |
$ | 1,650 | | |
$ | 4,195 | | |
$ | (1,650 | ) |
Multi-family | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Other residential | |
| 63,626 | | |
| 45,805 | | |
| 50,060 | | |
| 125,458 | | |
| 13,566 | | |
| (79,653 | ) |
Total real estate mortgage | |
| 100,817 | | |
| 45,805 | | |
| 83,056 | | |
| 127,108 | | |
| 17,761 | | |
| (81,303 | ) |
Real estate construction and land: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Commercial | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Residential | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total real estate construction and land | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Commercial: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Asset-based | |
| 385 | | |
| - | | |
| 420 | | |
| - | | |
| (35 | ) | |
| - | |
Venture capital | |
| - | | |
| 1,845 | | |
| - | | |
| - | | |
| - | | |
| 1,845 | |
Other commercial | |
| 3,479 | | |
| 147 | | |
| 3,123 | | |
| 618 | | |
| 356 | | |
| (471 | ) |
Total commercial | |
| 3,864 | | |
| 1,992 | | |
| 3,543 | | |
| 618 | | |
| 321 | | |
| 1,374 | |
Consumer | |
| 205 | | |
| 2,024 | | |
| 525 | | |
| 1,593 | | |
| (320 | ) | |
| 431 | |
Total held for investment | |
$ | 104,886 | | |
$ | 49,821 | | |
$ | 87,124 | | |
$ | 129,319 | | |
$ | 17,762 | | |
$ | (79,498 | ) |
Loans and leases accruing and 30-89 days past due generally fluctuate
from period to period. The $79.5 million decrease to $49.8 million in the second quarter of 2023 was due mainly to a decrease in Civic
delinquent loans which included $46.5 million being transferred to held for sale in the second quarter.
CAPITAL
The following table presents capital ratios as of the dates indicated:
| |
June 30, | | |
March 31, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | |
PacWest Bancorp Consolidated: | |
| | | |
| | | |
| | |
Common equity tier 1 capital ratio (1) | |
| 11.16 | % | |
| 9.21 | % | |
| 8.24 | % |
Tier 1 capital ratio (1) | |
| 13.70 | % | |
| 11.15 | % | |
| 10.15 | % |
Total capital ratio (1) | |
| 17.61 | % | |
| 14.21 | % | |
| 13.12 | % |
Tier 1 leverage capital ratio (1) | |
| 7.76 | % | |
| 8.33 | % | |
| 8.52 | % |
Risk-weighted assets (1) (in thousands) | |
$ | 24,768,687 | | |
$ | 32,507,454 | | |
$ | 33,009,455 | |
Tangible common equity ratio (2) | |
| 5.24 | % | |
| 5.07 | % | |
| 5.15 | % |
Tangible common equity ratio excluding the impact of AOCI for securities (2) | |
| 7.26 | % | |
| 6.73 | % | |
| 6.79 | % |
(1) Capital information for June 30,
2023 is preliminary.
(2) Non-GAAP measure.
CHANGE
IN CONFERENCE CALL
As a result of today’s merger announcement, the previously announced
PacWest Bancorp conference call scheduled for 8:00 AM PT/ 11:00 AM ET on Wednesday, July 26, 2023, to discuss the Company’s
performance for the second quarter of 2023 has been cancelled. PacWest Bancorp and Banc of California, Inc. will conduct a live
conference call and webcast to discuss the transaction later today at 2:30 PM PT/ 5:30 PM ET. To listen to the live call, please dial
888-317-6003 and enter 2706567 for the conference ID. The webcast, along with the related slides, will be available on both the PacWest
website (www.pacwestbancorp.com) and the Banc of California, Inc. website (www.bancofcal.com). A replay of the conference call will
also be available via these websites.
PACWEST
BANCORP
PacWest is a bank holding company 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 in credit losses, adversely affect
PacWest’s revenues and the values of our assets and liabilities, increase stock price volatility, and adversely impact our ability
to raise capital. In addition, PacWest and its results could be adversely affected by changes in interest rates, continued high inflation,
and unemployment rates, our ability to attract and retain deposits and other sources of funding and liquidity particularly in a rising
or high interest rate environment, the impact of bank failures or other adverse developments at other banks on general investor sentiment
regarding the stability and liquidity of banks, the safety of deposits, and depositor behavior, the quality and composition of our deposits,
deterioration in the credit quality of our loan portfolio or in the value of the collateral securing those loans, especially the risks
associated with concentrations in real estate related loans, deterioration in the value of our investment securities as a result of rising
interest rates or otherwise, our ability to successfully execute on our strategic plan and 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
| |
June 30, | | |
March 31, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| |
| |
(Dollars in thousands, except per share amounts) | |
ASSETS: | |
| | |
| | |
| |
Cash and due from banks | |
$ | 208,300 | | |
$ | 218,830 | | |
$ | 197,027 | |
Interest-earning deposits in financial institutions | |
| 6,489,847 | | |
| 6,461,306 | | |
| 2,192,877 | |
Total cash and cash equivalents | |
| 6,698,147 | | |
| 6,680,136 | | |
| 2,389,904 | |
| |
| | | |
| | | |
| | |
Securities available-for-sale, at estimated fair value | |
| 4,708,519 | | |
| 4,848,607 | | |
| 6,780,648 | |
Securities held-to-maturity, at amortized cost, net of
allowance for credit losses | |
| 2,278,202 | | |
| 2,273,650 | | |
| 2,260,367 | |
Federal Home Loan Bank stock, at cost | |
| 17,250 | | |
| 147,150 | | |
| 33,210 | |
Total investment securities | |
| 7,003,971 | | |
| 7,269,407 | | |
| 9,074,225 | |
| |
| | | |
| | | |
| | |
Loans held for sale | |
| 478,146 | | |
| 2,796,208 | | |
| - | |
| |
| | | |
| | | |
| | |
Gross loans and leases held for investment | |
| 22,311,292 | | |
| 25,770,912 | | |
| 26,608,541 | |
Deferred fees, net | |
| (53,082 | ) | |
| (98,531 | ) | |
| (107,404 | ) |
Total loans and leases held for investment, net of deferred
fees | |
| 22,258,210 | | |
| 25,672,381 | | |
| 26,501,137 | |
Allowance for loan and lease losses | |
| (219,234 | ) | |
| (210,055 | ) | |
| (188,705 | ) |
Total loans and leases held for investment, net | |
| 22,038,976 | | |
| 25,462,326 | | |
| 26,312,432 | |
| |
| | | |
| | | |
| | |
Equipment leased to others under operating leases | |
| 380,022 | | |
| 399,972 | | |
| 324,233 | |
Premises and equipment, net | |
| 57,078 | | |
| 60,358 | | |
| 51,083 | |
Foreclosed assets, net | |
| 8,426 | | |
| 2,135 | | |
| - | |
Goodwill | |
| - | | |
| - | | |
| 1,405,736 | |
Core deposit and customer relationship intangibles, net | |
| 26,581 | | |
| 28,970 | | |
| 37,659 | |
Deferred tax asset, net | |
| 426,304 | | |
| 342,557 | | |
| 254,090 | |
Other assets | |
| 1,219,599 | | |
| 1,260,912 | | |
| 1,101,361 | |
Total assets | |
$ | 38,337,250 | | |
$ | 44,302,981 | | |
$ | 40,950,723 | |
| |
| | | |
| | | |
| | |
LIABILITIES: | |
| | | |
| | | |
| | |
Noninterest-bearing deposits | |
$ | 6,055,358 | | |
$ | 7,030,759 | | |
$ | 13,338,029 | |
Interest-bearing deposits | |
| 21,841,725 | | |
| 21,156,802 | | |
| 20,630,123 | |
Total deposits | |
| 27,897,083 | | |
| 28,187,561 | | |
| 33,968,152 | |
Borrowings | |
| 6,357,338 | | |
| 11,881,712 | | |
| 1,592,000 | |
Subordinated debt | |
| 870,378 | | |
| 868,815 | | |
| 863,756 | |
Accrued interest payable and other liabilities | |
| 679,256 | | |
| 593,416 | | |
| 548,412 | |
Total liabilities | |
| 35,804,055 | | |
| 41,531,504 | | |
| 36,972,320 | |
STOCKHOLDERS' EQUITY (1) | |
| 2,533,195 | | |
| 2,771,477 | | |
| 3,978,403 | |
Total liabilities and stockholders’ equity | |
$ | 38,337,250 | | |
$ | 44,302,981 | | |
$ | 40,950,723 | |
| |
| | | |
| | | |
| | |
Book value per common share | |
$ | 16.93 | | |
$ | 18.90 | | |
$ | 28.93 | |
Tangible book value per common share (2) | |
$ | 16.71 | | |
$ | 18.66 | | |
$ | 16.93 | |
Common shares outstanding | |
| 120,169,012 | | |
| 120,244,214 | | |
| 120,288,024 | |
| |
| | | |
| | | |
| | |
(1) Includes net unrealized loss on: | |
| | | |
| | | |
| | |
Securities available-for-sale, net | |
$ | (583,684 | ) | |
$ | (537,307 | ) | |
$ | (428,242 | ) |
Securities held to maturity | |
$ | (193,058 | ) | |
$ | (198,753 | ) | |
$ | (216,508 | ) |
(2) Non-GAAP measure. | |
| | | |
| | | |
| | |
PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS)
| |
Three Months Ended | | |
Six Months Ended | |
| |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(In thousands, except per share amounts) | |
Interest income: | |
| | | |
| | | |
| | | |
| | | |
| | |
Loans and leases | |
$ | 408,972 | | |
$ | 430,685 | | |
$ | 293,286 | | |
$ | 839,657 | | |
$ | 561,045 | |
Investment securities | |
| 44,153 | | |
| 44,237 | | |
| 52,902 | | |
| 88,390 | | |
| 106,324 | |
Deposits in financial institutions | |
| 86,763 | | |
| 42,866 | | |
| 4,330 | | |
| 129,629 | | |
| 6,053 | |
Total interest income | |
| 539,888 | | |
| 517,788 | | |
| 350,518 | | |
| 1,057,676 | | |
| 673,422 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Interest expense: | |
| | | |
| | | |
| | | |
| | | |
| | |
Deposits | |
| 178,789 | | |
| 155,892 | | |
| 15,362 | | |
| 334,681 | | |
| 21,570 | |
Borrowings | |
| 160,914 | | |
| 69,122 | | |
| 2,441 | | |
| 230,036 | | |
| 2,602 | |
Subordinated debt | |
| 14,109 | | |
| 13,502 | | |
| 8,790 | | |
| 27,611 | | |
| 16,608 | |
Total interest expense | |
| 353,812 | | |
| 238,516 | | |
| 26,593 | | |
| 592,328 | | |
| 40,780 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net interest income | |
| 186,076 | | |
| 279,272 | | |
| 323,925 | | |
| 465,348 | | |
| 632,642 | |
Provision for credit losses | |
| 2,000 | | |
| 3,000 | | |
| 11,500 | | |
| 5,000 | | |
| 11,500 | |
Net interest income after provision for credit losses | |
| 184,076 | | |
| 276,272 | | |
| 312,425 | | |
| 460,348 | | |
| 621,142 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Noninterest income: | |
| | | |
| | | |
| | | |
| | | |
| | |
Service charges on deposit accounts | |
| 4,315 | | |
| 3,573 | | |
| 3,634 | | |
| 7,888 | | |
| 7,205 | |
Other commissions and fees | |
| 11,241 | | |
| 10,344 | | |
| 10,813 | | |
| 21,585 | | |
| 22,393 | |
Leased equipment income | |
| 22,387 | | |
| 13,857 | | |
| 12,335 | | |
| 36,244 | | |
| 25,429 | |
(Loss) gain on sale of loans and leases | |
| (158,881 | ) | |
| 2,962 | | |
| 12 | | |
| (155,919 | ) | |
| 72 | |
Loss on sale of securities | |
| - | | |
| - | | |
| (1,209 | ) | |
| - | | |
| (1,105 | ) |
Dividends and gains (losses) on equity investments | |
| 2,658 | | |
| 1,098 | | |
| 4,097 | | |
| 3,756 | | |
| (7,278 | ) |
Warrant (loss) income | |
| (124 | ) | |
| (333 | ) | |
| 1,615 | | |
| (457 | ) | |
| 2,244 | |
LOCOM HFS adjustment | |
| (11,943 | ) | |
| - | | |
| - | | |
| (11,943 | ) | |
| - | |
Other income | |
| 2,265 | | |
| 4,890 | | |
| 3,049 | | |
| 7,155 | | |
| 6,204 | |
Total noninterest (loss) income | |
| (128,082 | ) | |
| 36,391 | | |
| 34,346 | | |
| (91,691 | ) | |
| 55,164 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Noninterest expense: | |
| | | |
| | | |
| | | |
| | | |
| | |
Compensation | |
| 82,881 | | |
| 88,476 | | |
| 102,542 | | |
| 171,357 | | |
| 194,782 | |
Occupancy | |
| 15,383 | | |
| 15,067 | | |
| 15,268 | | |
| 30,450 | | |
| 30,468 | |
Data processing | |
| 10,963 | | |
| 10,938 | | |
| 9,258 | | |
| 21,901 | | |
| 18,887 | |
Other professional services | |
| 9,973 | | |
| 6,073 | | |
| 6,726 | | |
| 16,046 | | |
| 12,680 | |
Insurance and assessments | |
| 25,635 | | |
| 11,717 | | |
| 5,632 | | |
| 37,352 | | |
| 11,122 | |
Intangible asset amortization | |
| 2,389 | | |
| 2,411 | | |
| 3,649 | | |
| 4,800 | | |
| 7,298 | |
Leased equipment depreciation | |
| 9,088 | | |
| 9,375 | | |
| 8,934 | | |
| 18,463 | | |
| 18,123 | |
Foreclosed assets expense (income), net | |
| 2 | | |
| 363 | | |
| (28 | ) | |
| 365 | | |
| (3,381 | ) |
Acquisition, integration and reorganization costs | |
| 12,394 | | |
| 8,514 | | |
| - | | |
| 20,908 | | |
| - | |
Customer related expense | |
| 27,302 | | |
| 24,005 | | |
| 11,748 | | |
| 51,307 | | |
| 24,403 | |
Loan expense | |
| 5,245 | | |
| 6,524 | | |
| 7,037 | | |
| 11,769 | | |
| 12,194 | |
Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| - | | |
| 1,376,736 | | |
| - | |
Other expense | |
| 119,182 | | |
| 12,804 | | |
| 12,879 | | |
| 131,986 | | |
| 24,495 | |
Total noninterest expense | |
| 320,437 | | |
| 1,573,003 | | |
| 183,645 | | |
| 1,893,440 | | |
| 351,071 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
(Loss) earnings before income taxes | |
| (264,443 | ) | |
| (1,260,340 | ) | |
| 163,126 | | |
| (1,524,783 | ) | |
| 325,235 | |
Income tax (benefit) expense | |
| (67,029 | ) | |
| (64,916 | ) | |
| 40,766 | | |
| (131,945 | ) | |
| 82,747 | |
Net (loss) earnings | |
| (197,414 | ) | |
| (1,195,424 | ) | |
| 122,360 | | |
| (1,392,838 | ) | |
| 242,488 | |
Preferred stock dividends | |
| 9,947 | | |
| 9,947 | | |
| - | | |
| 19,894 | | |
| - | |
Net (loss) earnings available to common stockholders | |
$ | (207,361 | ) | |
$ | (1,205,371 | ) | |
$ | 122,360 | | |
$ | (1,412,732 | ) | |
$ | 242,488 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Basic and diluted (loss) earnings per common share | |
$ | (1.75 | ) | |
$ | (10.22 | ) | |
$ | 1.02 | | |
$ | (11.96 | ) | |
$ | 2.03 | |
Dividends declared and paid per common share | |
$ | 0.01 | | |
$ | 0.25 | | |
$ | 0.25 | | |
$ | 0.26 | | |
$ | 0.50 | |
PACWEST
BANCORP AND SUBSIDIARIES
AVERAGE
BALANCE SHEET AND YIELD ANALYSIS
| |
Three Months Ended | |
| |
June 30, 2023 | | |
March 31, 2023 | | |
June 30, 2022 | |
| |
| | |
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)(3) | |
$ | 26,992,283 | | |
$ | 408,972 | | |
| 6.08 | % | |
$ | 28,583,265 | | |
$ | 433,029 | | |
| 6.14 | % | |
$ | 25,449,773 | | |
$ | 295,154 | | |
| 4.65 | % |
Investment securities (3) | |
| 7,183,986 | | |
| 44,153 | | |
| 2.47 | % | |
| 7,191,362 | | |
| 44,237 | | |
| 2.49 | % | |
| 9,488,653 | | |
| 54,910 | | |
| 2.32 | % |
Deposits in financial institutions | |
| 6,835,075 | | |
| 86,763 | | |
| 5.09 | % | |
| 3,682,228 | | |
| 42,866 | | |
| 4.72 | % | |
| 1,984,751 | | |
| 4,330 | | |
| 0.88 | % |
Total interest-earning assets (1) | |
| 41,011,344 | | |
| 539,888 | | |
| 5.28 | % | |
| 39,456,855 | | |
| 520,132 | | |
| 5.35 | % | |
| 36,923,177 | | |
| 354,394 | | |
| 3.85 | % |
Other assets | |
| 2,028,985 | | |
| | | |
| | | |
| 3,311,859 | | |
| | | |
| | | |
| 3,108,714 | | |
| | | |
| | |
Total assets | |
$ | 43,040,329 | | |
| | | |
| | | |
$ | 42,768,714 | | |
| | | |
| | | |
$ | 40,031,891 | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities and
Stockholders' Equity: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest checking | |
$ | 6,601,034 | | |
| 46,798 | | |
| 2.84 | % | |
$ | 7,089,102 | | |
| 55,957 | | |
| 3.20 | % | |
$ | 6,517,381 | | |
| 3,816 | | |
| 0.23 | % |
Money market | |
| 6,590,615 | | |
| 47,008 | | |
| 2.86 | % | |
| 8,932,059 | | |
| 56,224 | | |
| 2.55 | % | |
| 10,553,942 | | |
| 8,448 | | |
| 0.32 | % |
Savings | |
| 733,818 | | |
| 3,678 | | |
| 2.01 | % | |
| 597,287 | | |
| 599 | | |
| 0.41 | % | |
| 650,479 | | |
| 41 | | |
| 0.03 | % |
Time | |
| 7,492,094 | | |
| 81,305 | | |
| 4.35 | % | |
| 5,123,955 | | |
| 43,112 | | |
| 3.41 | % | |
| 1,939,816 | | |
| 3,057 | | |
| 0.63 | % |
Total interest-bearing deposits | |
| 21,417,561 | | |
| 178,789 | | |
| 3.35 | % | |
| 21,742,403 | | |
| 155,892 | | |
| 2.91 | % | |
| 19,661,618 | | |
| 15,362 | | |
| 0.31 | % |
Borrowings | |
| 11,439,742 | | |
| 160,914 | | |
| 5.64 | % | |
| 5,289,429 | | |
| 69,122 | | |
| 5.30 | % | |
| 1,356,616 | | |
| 2,441 | | |
| 0.72 | % |
Subordinated debt | |
| 869,419 | | |
| 14,109 | | |
| 6.51 | % | |
| 867,637 | | |
| 13,502 | | |
| 6.31 | % | |
| 863,653 | | |
| 8,790 | | |
| 4.08 | % |
Total interest-bearing liabilities | |
| 33,726,722 | | |
| 353,812 | | |
| 4.21 | % | |
| 27,899,469 | | |
| 238,516 | | |
| 3.47 | % | |
| 21,881,887 | | |
| 26,593 | | |
| 0.49 | % |
Noninterest-bearing
demand deposits | |
| 5,968,625 | | |
| | | |
| | | |
| 10,233,434 | | |
| | | |
| | | |
| 13,987,398 | | |
| | | |
| | |
Other liabilities | |
| 625,610 | | |
| | | |
| | | |
| 637,124 | | |
| | | |
| | | |
| 510,238 | | |
| | | |
| | |
Total liabilities | |
| 40,320,957 | | |
| | | |
| | | |
| 38,770,027 | | |
| | | |
| | | |
| 36,379,523 | | |
| | | |
| | |
Stockholders' equity | |
| 2,719,372 | | |
| | | |
| | | |
| 3,998,687 | | |
| | | |
| | | |
| 3,652,368 | | |
| | | |
| | |
Total liabilities and stockholders'
equity | |
$ | 43,040,329 | | |
| | | |
| | | |
$ | 42,768,714 | | |
| | | |
| | | |
$ | 40,031,891 | | |
| | | |
| | |
Net interest income (1) | |
| | | |
$ | 186,076 | | |
| | | |
| | | |
$ | 281,616 | | |
| | | |
| | | |
$ | 327,801 | | |
| | |
Net interest spread (1) | |
| | | |
| | | |
| 1.07 | % | |
| | | |
| | | |
| 1.88 | % | |
| | | |
| | | |
| 3.36 | % |
Net interest margin (1) | |
| | | |
| | | |
| 1.82 | % | |
| | | |
| | | |
| 2.89 | % | |
| | | |
| | | |
| 3.56 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total deposits (4) | |
$ | 27,386,186 | | |
$ | 178,789 | | |
| 2.62 | % | |
$ | 31,975,837 | | |
$ | 155,892 | | |
| 1.98 | % | |
$ | 33,649,016 | | |
$ | 15,362 | | |
| 0.18 | % |
| (2) | Includes net loan premium amortization
of $1.6 million, $2.8 million, and $5.8 million for the three months ended June 30, 2023,March 31, 2023, and June 30, 2022, respectively. |
| (3) | Includes tax-equivalent adjustments
of $0.0 million, $2.3 million, and $1.9 million for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022 related to
tax-exempt income on loans. Includes tax-equivalent adjustments of $0.0 million, $0.0 million, and $2.0 million for the three months
ended June 30, 2023, March 31, 2023, and June 30, 2022 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
| |
June 30, | | |
March 31, | | |
December 31, | | |
September 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2022 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands, except per share amounts) | |
ASSETS: | |
| | | |
| | | |
| | | |
| | | |
| | |
Cash and due from banks | |
$ | 208,300 | | |
$ | 218,830 | | |
$ | 212,273 | | |
$ | 216,436 | | |
$ | 197,027 | |
Interest-earning deposits in financial institutions | |
| 6,489,847 | | |
| 6,461,306 | | |
| 2,027,949 | | |
| 2,244,272 | | |
| 2,192,877 | |
Total cash and cash equivalents | |
| 6,698,147 | | |
| 6,680,136 | | |
| 2,240,222 | | |
| 2,460,708 | | |
| 2,389,904 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Securities available-for-sale | |
| 4,708,519 | | |
| 4,848,607 | | |
| 4,843,487 | | |
| 5,891,328 | | |
| 6,780,648 | |
Securities held-to-maturity | |
| 2,278,202 | | |
| 2,273,650 | | |
| 2,269,135 | | |
| 2,264,601 | | |
| 2,260,367 | |
Federal Home Loan Bank stock | |
| 17,250 | | |
| 147,150 | | |
| 34,290 | | |
| 36,990 | | |
| 33,210 | |
Total investment securities | |
| 7,003,971 | | |
| 7,269,407 | | |
| 7,146,912 | | |
| 8,192,919 | | |
| 9,074,225 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loans held for sale | |
| 478,146 | | |
| 2,796,208 | | |
| 65,076 | | |
| 15,534 | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Gross loans and leases held for investment | |
| 22,311,292 | | |
| 25,770,912 | | |
| 28,726,016 | | |
| 27,775,962 | | |
| 26,608,541 | |
Deferred fees, net | |
| (53,082 | ) | |
| (98,531 | ) | |
| (116,887 | ) | |
| (115,921 | ) | |
| (107,404 | ) |
Total loans and leases held for investment, net of deferred
fees | |
| 22,258,210 | | |
| 25,672,381 | | |
| 28,609,129 | | |
| 27,660,041 | | |
| 26,501,137 | |
Allowance for loan and lease losses | |
| (219,234 | ) | |
| (210,055 | ) | |
| (200,732 | ) | |
| (189,327 | ) | |
| (188,705 | ) |
Total loans and leases held for
investment, net | |
| 22,038,976 | | |
| 25,462,326 | | |
| 28,408,397 | | |
| 27,470,714 | | |
| 26,312,432 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Equipment leased to others under operating leases | |
| 380,022 | | |
| 399,972 | | |
| 404,245 | | |
| 338,691 | | |
| 324,233 | |
Premises and equipment, net | |
| 57,078 | | |
| 60,358 | | |
| 54,315 | | |
| 50,781 | | |
| 51,083 | |
Foreclosed assets, net | |
| 8,426 | | |
| 2,135 | | |
| 5,022 | | |
| 2,967 | | |
| - | |
Goodwill | |
| - | | |
| - | | |
| 1,376,736 | | |
| 1,405,736 | | |
| 1,405,736 | |
Core deposit and customer relationship intangibles, net | |
| 26,581 | | |
| 28,970 | | |
| 31,381 | | |
| 34,010 | | |
| 37,659 | |
Deferred tax asset, net | |
| 426,304 | | |
| 342,557 | | |
| 281,848 | | |
| 321,650 | | |
| 254,090 | |
Other assets | |
| 1,219,599 | | |
| 1,260,912 | | |
| 1,214,782 | | |
| 1,110,882 | | |
| 1,101,361 | |
Total assets | |
$ | 38,337,250 | | |
$ | 44,302,981 | | |
$ | 41,228,936 | | |
$ | 41,404,592 | | |
$ | 40,950,723 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
LIABILITIES: | |
| | | |
| | | |
| | | |
| | | |
| | |
Noninterest-bearing deposits | |
$ | 6,055,358 | | |
$ | 7,030,759 | | |
$ | 11,212,357 | | |
$ | 12,775,756 | | |
$ | 13,338,029 | |
Interest-bearing deposits | |
| 21,841,725 | | |
| 21,156,802 | | |
| 22,723,977 | | |
| 21,420,116 | | |
| 20,630,123 | |
Total deposits | |
| 27,897,083 | | |
| 28,187,561 | | |
| 33,936,334 | | |
| 34,195,872 | | |
| 33,968,152 | |
Borrowings | |
| 6,357,338 | | |
| 11,881,712 | | |
| 1,764,030 | | |
| 1,864,815 | | |
| 1,592,000 | |
Subordinated debt | |
| 870,378 | | |
| 868,815 | | |
| 867,087 | | |
| 863,379 | | |
| 863,756 | |
Accrued interest payable and other liabilities | |
| 679,256 | | |
| 593,416 | | |
| 710,954 | | |
| 604,581 | | |
| 548,412 | |
Total liabilities | |
| 35,804,055 | | |
| 41,531,504 | | |
| 37,278,405 | | |
| 37,528,647 | | |
| 36,972,320 | |
STOCKHOLDERS' EQUITY (1) | |
| 2,533,195 | | |
| 2,771,477 | | |
| 3,950,531 | | |
| 3,875,945 | | |
| 3,978,403 | |
Total liabilities and stockholders’
equity | |
$ | 38,337,250 | | |
$ | 44,302,981 | | |
$ | 41,228,936 | | |
$ | 41,404,592 | | |
$ | 40,950,723 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Book value per common share | |
$ | 16.93 | | |
$ | 18.90 | | |
$ | 28.71 | | |
$ | 28.07 | | |
$ | 28.93 | |
Tangible book value per common share (2) | |
$ | 16.71 | | |
$ | 18.66 | | |
$ | 17.00 | | |
$ | 16.11 | | |
$ | 16.93 | |
Common shares outstanding | |
| 120,169,012 | | |
| 120,244,214 | | |
| 120,222,057 | | |
| 120,314,023 | | |
| 120,288,024 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
(1) Includes net unrealized loss on: | |
| | |
| | |
| | |
| | |
| |
Securities available-for-sale, net | |
$ | (583,684 | ) | |
$ | (537,307 | ) | |
$ | (586,450 | ) | |
$ | (637,346 | ) | |
$ | (428,242 | ) |
Securities held to maturity | |
$ | (193,058 | ) | |
$ | (198,753 | ) | |
$ | (204,453 | ) | |
$ | (210,868 | ) | |
$ | (216,508 | ) |
(2) Non-GAAP measure. | |
| | | |
| | | |
| | | |
| | | |
| | |
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER STATEMENT OF EARNINGS (LOSS)
| |
Three Months Ended | |
| |
June 30, | | |
March 31, | | |
December 31, | | |
September 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2022 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(In thousands, except per share amounts) | |
Interest income: | |
| | | |
| | | |
| | | |
| | | |
| | |
Loans and leases | |
$ | 408,972 | | |
$ | 430,685 | | |
$ | 404,985 | | |
$ | 346,550 | | |
$ | 293,286 | |
Investment securities | |
| 44,153 | | |
| 44,237 | | |
| 50,292 | | |
| 53,135 | | |
| 52,902 | |
Deposits in financial institutions | |
| 86,763 | | |
| 42,866 | | |
| 17,746 | | |
| 10,359 | | |
| 4,330 | |
Total interest income | |
| 539,888 | | |
| 517,788 | | |
| 473,023 | | |
| 410,044 | | |
| 350,518 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Interest expense: | |
| | | |
| | | |
| | | |
| | | |
| | |
Deposits | |
| 178,789 | | |
| 155,892 | | |
| 117,591 | | |
| 61,288 | | |
| 15,362 | |
Borrowings | |
| 160,914 | | |
| 69,122 | | |
| 19,962 | | |
| 3,081 | | |
| 2,441 | |
Subordinated debt | |
| 14,109 | | |
| 13,502 | | |
| 12,531 | | |
| 10,494 | | |
| 8,790 | |
Total interest expense | |
| 353,812 | | |
| 238,516 | | |
| 150,084 | | |
| 74,863 | | |
| 26,593 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net interest income | |
| 186,076 | | |
| 279,272 | | |
| 322,939 | | |
| 335,181 | | |
| 323,925 | |
Provision for credit losses | |
| 2,000 | | |
| 3,000 | | |
| 10,000 | | |
| 3,000 | | |
| 11,500 | |
Net interest income after provision for credit losses | |
| 184,076 | | |
| 276,272 | | |
| 312,939 | | |
| 332,181 | | |
| 312,425 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Noninterest income: | |
| | | |
| | | |
| | | |
| | | |
| | |
Service charges on deposit accounts | |
| 4,315 | | |
| 3,573 | | |
| 3,178 | | |
| 3,608 | | |
| 3,634 | |
Other commissions and fees | |
| 11,241 | | |
| 10,344 | | |
| 11,208 | | |
| 10,034 | | |
| 10,813 | |
Leased equipment income | |
| 22,387 | | |
| 13,857 | | |
| 12,322 | | |
| 12,835 | | |
| 12,335 | |
(Loss) gain on sale of loans and leases | |
| (158,881 | ) | |
| 2,962 | | |
| 388 | | |
| 58 | | |
| 12 | |
(Loss) gain on sale of securities | |
| - | | |
| - | | |
| (49,302 | ) | |
| 86 | | |
| (1,209 | ) |
Dividends and gains on equity investments | |
| 2,658 | | |
| 1,098 | | |
| 661 | | |
| 3,228 | | |
| 4,097 | |
Warrant (loss) income | |
| (124 | ) | |
| (333 | ) | |
| (46 | ) | |
| 292 | | |
| 1,615 | |
LOCOM HFS adjustment | |
| (11,943 | ) | |
| - | | |
| - | | |
| - | | |
| - | |
Other income | |
| 2,265 | | |
| 4,890 | | |
| 2,635 | | |
| 8,478 | | |
| 3,049 | |
Total noninterest (loss) income | |
| (128,082 | ) | |
| 36,391 | | |
| (18,956 | ) | |
| 38,619 | | |
| 34,346 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Noninterest expense: | |
| | | |
| | | |
| | | |
| | | |
| | |
Compensation | |
| 82,881 | | |
| 88,476 | | |
| 106,124 | | |
| 105,933 | | |
| 102,542 | |
Occupancy | |
| 15,383 | | |
| 15,067 | | |
| 14,922 | | |
| 15,574 | | |
| 15,268 | |
Data processing | |
| 10,963 | | |
| 10,938 | | |
| 9,722 | | |
| 9,568 | | |
| 9,258 | |
Other professional services | |
| 9,973 | | |
| 6,073 | | |
| 6,924 | | |
| 10,674 | | |
| 6,726 | |
Insurance and assessments | |
| 25,635 | | |
| 11,717 | | |
| 7,205 | | |
| 7,159 | | |
| 5,632 | |
Intangible asset amortization | |
| 2,389 | | |
| 2,411 | | |
| 2,629 | | |
| 3,649 | | |
| 3,649 | |
Leased equipment depreciation | |
| 9,088 | | |
| 9,375 | | |
| 8,627 | | |
| 8,908 | | |
| 8,934 | |
Foreclosed assets expense (income), net | |
| 2 | | |
| 363 | | |
| (108 | ) | |
| (248 | ) | |
| (28 | ) |
Acquisition, integration and reorganization costs | |
| 12,394 | | |
| 8,514 | | |
| 5,703 | | |
| - | | |
| - | |
Customer related expense | |
| 27,302 | | |
| 24,005 | | |
| 18,197 | | |
| 12,673 | | |
| 11,748 | |
Loan expense | |
| 5,245 | | |
| 6,524 | | |
| 6,150 | | |
| 6,228 | | |
| 7,037 | |
Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| 29,000 | | |
| - | | |
| - | |
Other expense | |
| 119,182 | | |
| 12,804 | | |
| 11,737 | | |
| 15,500 | | |
| 12,879 | |
Total noninterest expense | |
| 320,437 | | |
| 1,573,003 | | |
| 226,832 | | |
| 195,618 | | |
| 183,645 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
(Loss) earnings before income taxes | |
| (264,443 | ) | |
| (1,260,340 | ) | |
| 67,151 | | |
| 175,182 | | |
| 163,126 | |
Income tax (benefit) expense | |
| (67,029 | ) | |
| (64,916 | ) | |
| 17,642 | | |
| 43,566 | | |
| 40,766 | |
Net (loss) earnings | |
| (197,414 | ) | |
| (1,195,424 | ) | |
| 49,509 | | |
| 131,616 | | |
| 122,360 | |
Preferred stock dividends | |
| 9,947 | | |
| 9,947 | | |
| 9,947 | | |
| 9,392 | | |
| - | |
Net
(loss) earnings available to common stockholders | |
$ | (207,361 | ) | |
$ | (1,205,371 | ) | |
$ | 39,562 | | |
$ | 122,224 | | |
$ | 122,360 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Basic and diluted (loss) earnings per
common share | |
$ | (1.75 | ) | |
$ | (10.22 | ) | |
$ | 0.33 | | |
$ | 1.02 | | |
$ | 1.02 | |
Dividends declared and paid per common share | |
$ | 0.01 | | |
$ | 0.25 | | |
$ | 0.25 | | |
$ | 0.25 | | |
$ | 0.25 | |
PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
| |
At or For the Three Months Ended | |
| |
June 30, | | |
March 31, | | |
December 31, | | |
September 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2022 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Performance Ratios: | |
| | | |
| | | |
| | | |
| | | |
| | |
Return on average assets (1) | |
| (1.84 | )% | |
| (11.34 | )% | |
| 0.48 | % | |
| 1.28 | % | |
| 1.23 | % |
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") return on average
assets (1)(2) | |
| (2.45 | )% | |
| 1.13 | % | |
| 1.02 | % | |
| 1.73 | % | |
| 1.75 | % |
Return on average equity (1) | |
| (29.12 | )% | |
| (121.24 | )% | |
| 5.04 | % | |
| 13.02 | % | |
| 13.44 | % |
Return on average tangible common equity
(1)(2) | |
| (37.62 | )% | |
| 14.45 | % | |
| 12.71 | % | |
| 23.93 | % | |
| 24.24 | % |
Efficiency ratio | |
| 527.0 | % | |
| 58.2 | % | |
| 53.3 | % | |
| 51.0 | % | |
| 49.5 | % |
Noninterest expense as a percentage of average assets (1) | |
| 2.99 | % | |
| 14.92 | % | |
| 2.19 | % | |
| 1.90 | % | |
| 1.84 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Yields/Costs (1): | |
| | | |
| | | |
| | | |
| | | |
| | |
Yield on: | |
| | | |
| | | |
| | | |
| | | |
| | |
Average loans and leases (3) | |
| 6.08 | % | |
| 6.14 | % | |
| 5.73 | % | |
| 5.12 | % | |
| 4.65 | % |
Average investment securities (3) | |
| 2.47 | % | |
| 2.49 | % | |
| 2.57 | % | |
| 2.45 | % | |
| 2.32 | % |
Average interest-earning assets (3) | |
| 5.28 | % | |
| 5.35 | % | |
| 4.98 | % | |
| 4.36 | % | |
| 3.85 | % |
Cost of: | |
| | | |
| | | |
| | | |
| | | |
| | |
Average interest-bearing deposits | |
| 3.35 | % | |
| 2.91 | % | |
| 2.14 | % | |
| 1.15 | % | |
| 0.31 | % |
Average total deposits | |
| 2.62 | % | |
| 1.98 | % | |
| 1.37 | % | |
| 0.70 | % | |
| 0.18 | % |
Average interest-bearing liabilities | |
| 4.21 | % | |
| 3.47 | % | |
| 2.45 | % | |
| 1.32 | % | |
| 0.49 | % |
Net interest spread (3) | |
| 1.07 | % | |
| 1.88 | % | |
| 2.53 | % | |
| 3.04 | % | |
| 3.36 | % |
Net interest margin (3) | |
| 1.82 | % | |
| 2.89 | % | |
| 3.41 | % | |
| 3.57 | % | |
| 3.56 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Balances: | |
| | | |
| | | |
| | | |
| | | |
| | |
Assets: | |
| | | |
| | | |
| | | |
| | | |
| | |
Loans and leases, net of deferred fees | |
$ | 26,992,283 | | |
$ | 28,583,265 | | |
$ | 28,192,953 | | |
$ | 27,038,873 | | |
$ | 25,449,773 | |
Investment securities | |
| 7,183,986 | | |
| 7,191,362 | | |
| 7,824,915 | | |
| 8,803,349 | | |
| 9,488,653 | |
Deposits in financial institutions | |
| 6,835,075 | | |
| 3,682,228 | | |
| 1,881,950 | | |
| 1,809,809 | | |
| 1,984,751 | |
Interest-earning assets | |
| 41,011,344 | | |
| 39,456,855 | | |
| 37,899,818 | | |
| 37,652,031 | | |
| 36,923,177 | |
Total assets | |
| 43,040,329 | | |
| 42,768,714 | | |
| 41,151,963 | | |
| 40,841,272 | | |
| 40,031,891 | |
Liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Noninterest-bearing deposits | |
| 5,968,625 | | |
| 10,233,434 | | |
| 12,325,902 | | |
| 13,653,177 | | |
| 13,987,398 | |
Interest-bearing deposits | |
| 21,417,561 | | |
| 21,742,403 | | |
| 21,760,402 | | |
| 21,214,265 | | |
| 19,661,618 | |
Total deposits | |
| 27,386,186 | | |
| 31,975,837 | | |
| 34,086,304 | | |
| 34,867,442 | | |
| 33,649,016 | |
Borrowings | |
| 11,439,742 | | |
| 5,289,429 | | |
| 1,675,738 | | |
| 505,482 | | |
| 1,356,616 | |
Subordinated debt | |
| 869,419 | | |
| 867,637 | | |
| 864,581 | | |
| 863,719 | | |
| 863,653 | |
Interest-bearing liabilities | |
| 33,726,722 | | |
| 27,899,469 | | |
| 24,300,721 | | |
| 22,583,466 | | |
| 21,881,887 | |
Stockholders' equity | |
| 2,719,372 | | |
| 3,998,687 | | |
| 3,898,800 | | |
| 4,011,179 | | |
| 3,652,368 | |
(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 | |
| |
June 30, | | |
March 31, | | |
December 31, | | |
September 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2022 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands, except per share amounts) | |
Credit Quality Metrics for Loans and Leases Held for
Investment: | |
| | | |
| | | |
| | | |
| | | |
| | |
Nonaccrual loans and leases | |
$ | 104,886 | | |
$ | 87,124 | | |
$ | 103,778 | | |
$ | 89,742 | | |
$ | 78,527 | |
Nonperforming assets | |
| 113,312 | | |
| 89,259 | | |
| 108,800 | | |
| 92,709 | | |
| 78,527 | |
Special mention loans and leases | |
| 366,368 | | |
| 580,153 | | |
| 566,259 | | |
| 463,994 | | |
| 480,261 | |
Classified loans and leases | |
| 211,934 | | |
| 132,423 | | |
| 118,271 | | |
| 96,685 | | |
| 104,264 | |
Allowance for loan and lease losses | |
| 219,234 | | |
| 210,055 | | |
| 200,732 | | |
| 189,327 | | |
| 188,705 | |
Allowance for credit losses | |
| 256,805 | | |
| 285,626 | | |
| 291,803 | | |
| 284,398 | | |
| 283,776 | |
For the quarter: | |
| | | |
| | | |
| | | |
| | | |
| | |
Provision for credit losses | |
| 2,000 | | |
| 3,000 | | |
| 10,000 | | |
| 3,000 | | |
| 10,000 | |
Net charge-offs (recoveries) | |
| 30,821 | | |
| 9,177 | | |
| 2,595 | | |
| 2,378 | | |
| (1,307 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Nonaccrual loans and leases to loans and leases | |
| 0.47 | % | |
| 0.34 | % | |
| 0.36 | % | |
| 0.32 | % | |
| 0.30 | % |
Nonperforming assets to loans and leases and foreclosed
assets | |
| 0.51 | % | |
| 0.35 | % | |
| 0.38 | % | |
| 0.34 | % | |
| 0.30 | % |
Special mention loans and leases to loans and leases | |
| 1.65 | % | |
| 2.26 | % | |
| 1.98 | % | |
| 1.68 | % | |
| 1.81 | % |
Classified loans and leases to loans and leases | |
| 0.95 | % | |
| 0.52 | % | |
| 0.41 | % | |
| 0.35 | % | |
| 0.39 | % |
Allowance for loan and lease losses to loans and leases | |
| 0.98 | % | |
| 0.82 | % | |
| 0.70 | % | |
| 0.68 | % | |
| 0.71 | % |
Allowance for credit losses to loans and leases | |
| 1.15 | % | |
| 1.11 | % | |
| 1.02 | % | |
| 1.03 | % | |
| 1.07 | % |
Allowance for credit losses to nonaccrual loans and
leases | |
| 244.84 | % | |
| 327.84 | % | |
| 281.18 | % | |
| 316.91 | % | |
| 361.37 | % |
Net charge-offs (recoveries) to average loans and leases | |
| 0.46 | % | |
| 0.13 | % | |
| 0.04 | % | |
| 0.03 | % | |
| (0.02 | )% |
Trailing 12 months net charge-offs (recoveries) to average
loans and leases | |
| 0.17 | % | |
| 0.05 | % | |
| 0.02 | % | |
| 0.01 | % | |
| 0.00 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
PacWest Bancorp Consolidated: | |
| | | |
| | | |
| | | |
| | | |
| | |
Common equity tier 1 capital ratio (1) | |
| 11.16 | % | |
| 9.21 | % | |
| 8.70 | % | |
| 8.56 | % | |
| 8.24 | % |
Tier 1 capital ratio (1) | |
| 13.70 | % | |
| 11.15 | % | |
| 10.61 | % | |
| 10.46 | % | |
| 10.15 | % |
Total capital ratio (1) | |
| 17.61 | % | |
| 14.21 | % | |
| 13.61 | % | |
| 13.43 | % | |
| 13.12 | % |
Tier 1 leverage capital ratio (1) | |
| 7.76 | % | |
| 8.33 | % | |
| 8.61 | % | |
| 8.63 | % | |
| 8.52 | % |
Risk-weighted assets (1) | |
$ | 24,768,687 | | |
$ | 32,507,454 | | |
$ | 33,030,960 | | |
$ | 33,042,173 | | |
$ | 33,009,455 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Equity to assets ratio | |
| 6.61 | % | |
| 6.26 | % | |
| 9.58 | % | |
| 9.36 | % | |
| 9.72 | % |
Tangible common equity ratio (2) | |
| 5.24 | % | |
| 5.07 | % | |
| 5.13 | % | |
| 4.85 | % | |
| 5.15 | % |
Book value per common share | |
$ | 16.93 | | |
$ | 18.90 | | |
$ | 28.71 | | |
$ | 28.07 | | |
$ | 28.93 | |
Tangible book value per common share (2) | |
$ | 16.71 | | |
$ | 18.66 | | |
$ | 17.00 | | |
$ | 16.11 | | |
$ | 16.93 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Pacific Western Bank: | |
| | | |
| | | |
| | | |
| | | |
| | |
Common equity tier 1 capital ratio (1) | |
| 13.48 | % | |
| 10.89 | % | |
| 10.32 | % | |
| 10.17 | % | |
| 9.78 | % |
Tier 1 capital ratio (1) | |
| 13.48 | % | |
| 10.89 | % | |
| 10.32 | % | |
| 10.17 | % | |
| 9.78 | % |
Total capital ratio (1) | |
| 16.07 | % | |
| 12.94 | % | |
| 12.34 | % | |
| 12.16 | % | |
| 11.77 | % |
Tier 1 leverage capital ratio (1) | |
| 7.62 | % | |
| 8.14 | % | |
| 8.39 | % | |
| 8.39 | % | |
| 8.21 | % |
(1) Capital information for June 30, 2023 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 (or those calculated from GAAP measures) of: (1) net earnings, (2) return on average assets, (3) return
on average equity, (4) equity to assets ratio, (5) book value per common share, and (6) efficiency ratio.
The Company recorded significant non-operating
charges in the three months ended June 30, 2023 and March 31, 2023 and six months ended June 30, 2023. Thus, to supplement
information regarding the Company’s operational performance and to enhance investors’ overall understanding of such performance,
this press release includes non-GAAP financial measures for (1) adjusted return on average tangible common equity, (2) adjusted
earnings, (3) adjusted earnings per share, (4) adjusted return on average assets, and (5) adjusted efficiency ratio. These
measures help the reader to compare the recent periods with the historical periods more readily. These non-GAAP financial measures should
not be considered a substitute for financial measures presented in accordance with GAAP and may be different from the non-GAAP financial
measures used by other companies.
The tables below present the reconciliations
of these GAAP financial measures to the related non-GAAP financial measures:
| |
Three Months Ended | | |
Six Months Ended | |
PPNR and PPNR Return | |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | |
on Average Assets | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Net (loss) earnings | |
$ | (197,414 | ) | |
$ | (1,195,424 | ) | |
$ | 122,360 | | |
$ | (1,392,838 | ) | |
$ | 242,488 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net interest income | |
$ | 186,076 | | |
$ | 279,272 | | |
$ | 323,925 | | |
$ | 465,348 | | |
$ | 632,642 | |
Add: Noninterest (loss) income | |
| (128,082 | ) | |
| 36,391 | | |
| 34,346 | | |
| (91,691 | ) | |
| 55,164 | |
Less: Noninterest expense | |
| (320,437 | ) | |
| (1,573,003 | ) | |
| (183,645 | ) | |
| (1,893,440 | ) | |
| (351,071 | ) |
Add: Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| - | | |
| 1,376,736 | | |
| - | |
Pre-provision, pre-goodwill impairment,
pre-tax net revenue ("PPNR") | |
$ | (262,443 | ) | |
$ | 119,396 | | |
$ | 174,626 | | |
$ | (143,047 | ) | |
$ | 336,735 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average assets | |
$ | 43,040,329 | | |
$ | 42,768,714 | | |
$ | 40,031,891 | | |
$ | 42,905,272 | | |
$ | 39,958,008 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Return on average assets (1) | |
| (1.84 | )% | |
| (11.34 | )% | |
| 1.23 | % | |
| (6.55 | )% | |
| 1.22 | % |
PPNR return on average assets (2) | |
| (2.45 | )% | |
| 1.13 | % | |
| 1.75 | % | |
| (0.67 | )% | |
| 1.70 | % |
(1) Annualized
net earnings divided by average assets.
(2) Annualized
PPNR divided by average assets.
| |
Three Months Ended | | |
Six Months Ended | |
Return on Average | |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | |
Tangible Common Equity | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Net (loss) earnings | |
$ | (197,414 | ) | |
$ | (1,195,424 | ) | |
$ | 122,360 | | |
$ | (1,392,838 | ) | |
$ | 242,488 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
(Loss) earnings before income taxes | |
$ | (264,443 | ) | |
$ | (1,260,340 | ) | |
$ | 163,126 | | |
$ | (1,524,783 | ) | |
$ | 325,235 | |
Add: Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| - | | |
| 1,376,736 | | |
| - | |
Add: Intangible asset amortization | |
| 2,389 | | |
| 2,411 | | |
| 3,649 | | |
| 4,800 | | |
| 7,298 | |
Adjusted earnings before income taxes | |
| (262,054 | ) | |
| 118,807 | | |
| 166,775 | | |
| (143,247 | ) | |
| 332,533 | |
Adjusted income tax expense (1) | |
| (66,300 | ) | |
| 33,741 | | |
| 41,694 | | |
| (45,839 | ) | |
| 84,463 | |
Adjusted net earnings | |
| (195,754 | ) | |
| 85,066 | | |
| 125,081 | | |
| (97,408 | ) | |
| 248,070 | |
Less: Preferred stock dividends | |
| 9,947 | | |
| 9,947 | | |
| - | | |
| 19,894 | | |
| - | |
Adjusted net earnings available to common stockholders | |
$ | (205,701 | ) | |
$ | 75,119 | | |
$ | 125,081 | | |
$ | (117,302 | ) | |
$ | 248,070 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average stockholders' equity | |
$ | 2,719,372 | | |
$ | 3,998,687 | | |
$ | 3,652,368 | | |
$ | 3,355,495 | | |
$ | 3,749,386 | |
Less: Average intangible assets | |
| 27,824 | | |
| 1,391,857 | | |
| 1,445,333 | | |
| 706,072 | | |
| 1,447,184 | |
Less: Average preferred stock | |
| 498,516 | | |
| 498,516 | | |
| 137,100 | | |
| 498,516 | | |
| 68,929 | |
Average tangible common equity | |
$ | 2,193,032 | | |
$ | 2,108,314 | | |
$ | 2,069,935 | | |
$ | 2,150,907 | | |
$ | 2,233,273 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Return on average equity (2) | |
| (29.12 | )% | |
| (121.24 | )% | |
| 13.44 | % | |
| (83.71 | )% | |
| 13.04 | % |
Return on average tangible common equity (3) | |
| (37.62 | )% | |
| 14.45 | % | |
| 24.24 | % | |
| (11.00 | )% | |
| 22.40 | % |
(1) | Effective
tax rates of 25.3% and 25.0% used for three months ended June 30, 2023 and June 30, 2022; adjusted effective tax rate of 28.4% used to
normalize the effect of goodwill impairment for three months ended March 31, 2023. Adjusted effective tax rate of 32.0% used to normalize
the effect of goodwill impairment for six months ended June 30, 2023; effective tax rate of 25.4% used for six months ended June
30, 2022. |
(2) | Annualized
net (loss) earnings divided by average stockholders' equity. |
(3) | Annualized
adjusted net earnings available to common stockholders divided by average tangible common equity. |
| |
Three Months Ended | | |
Six Months Ended | |
Adjusted Return on Average | |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | |
Tangible Common Equity | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
(Loss) earnings before income taxes | |
$ | (264,443 | ) | |
$ | (1,260,340 | ) | |
$ | 163,126 | | |
$ | (1,524,783 | ) | |
$ | 325,235 | |
Add: Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| - | | |
| 1,376,736 | | |
| - | |
Add: Intangible asset amortization | |
| 2,389 | | |
| 2,411 | | |
| 3,649 | | |
| 4,800 | | |
| 7,298 | |
Add: Acquisition, integration, and reorganization costs | |
| 12,394 | | |
| 8,514 | | |
| - | | |
| 20,908 | | |
| - | |
Add: Loan fair value loss adjustments | |
| 170,971 | | |
| - | | |
| - | | |
| 170,971 | | |
| - | |
Add: Unfunded commitments fair value loss adjustments | |
| 106,767 | | |
| - | | |
| - | | |
| 106,767 | | |
| - | |
Add: Civic loan sale charge-offs | |
| 22,446 | | |
| - | | |
| - | | |
| 22,446 | | |
| - | |
Adjusted earnings before income taxes | |
| 50,524 | | |
| 127,321 | | |
| 166,775 | | |
| 177,845 | | |
| 332,533 | |
Adjusted income tax expense (1) | |
| 12,783 | | |
| 36,159 | | |
| 41,694 | | |
| 56,910 | | |
| 84,463 | |
Adjusted net earnings | |
| 37,741 | | |
| 91,162 | | |
| 125,081 | | |
| 120,935 | | |
| 248,070 | |
Less: Preferred stock dividends | |
| 9,947 | | |
| 9,947 | | |
| - | | |
| 19,894 | | |
| - | |
Adjusted net earnings available to common stockholders | |
$ | 27,794 | | |
$ | 81,215 | | |
$ | 125,081 | | |
$ | 101,041 | | |
$ | 248,070 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average stockholders' equity | |
$ | 2,719,372 | | |
$ | 3,998,687 | | |
$ | 3,652,368 | | |
$ | 3,355,495 | | |
$ | 3,749,386 | |
Less: Average intangible assets | |
| 27,824 | | |
| 1,391,857 | | |
| 1,445,333 | | |
| 706,072 | | |
| 1,447,184 | |
Less: Average preferred stock | |
| 498,516 | | |
| 498,516 | | |
| 137,100 | | |
| 498,516 | | |
| 68,929 | |
Average tangible common equity | |
$ | 2,193,032 | | |
$ | 2,108,314 | | |
$ | 2,069,935 | | |
$ | 2,150,907 | | |
$ | 2,233,273 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted return on average tangible common equity (2) | |
| 5.08 | % | |
| 15.62 | % | |
| 24.24 | % | |
| 9.47 | % | |
| 22.40 | % |
(1) | Effective
tax rates of 25.3% and 25.0% used for three months ended June 30, 2023 and June 30, 2022; adjusted effective tax rate of 28.4%
used to normalize the effect of goodwill impairment for three months ended March 31, 2023. Adjusted effective tax rate of 32.0%
used to normalize the effect of goodwill impairment for six months ended June 30, 2023; effective tax rate of 25.4% used for six
months ended June 30, 2022. |
(2) | Annualized
adjusted net earnings available to common stockholders divided by average tangible common equity. |
Tangible Common Equity Ratio/ | |
| | |
| | |
| | |
| | |
| |
Tangible Book Value Per | |
June 30, | | |
March 31, | | |
December 31, | | |
September 30, | | |
June 30, | |
Common Share | |
2023 | | |
2023 | | |
2022 | | |
2022 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands, except per share amounts) | | |
Stockholders' equity | |
$ | 2,533,195 | | |
$ | 2,771,477 | | |
$ | 3,950,531 | | |
$ | 3,875,945 | | |
$ | 3,978,403 | |
Less: Preferred stock | |
| 498,516 | | |
| 498,516 | | |
| 498,516 | | |
| 498,516 | | |
| 498,516 | |
Total common equity | |
| 2,034,679 | | |
| 2,272,961 | | |
| 3,452,015 | | |
| 3,377,429 | | |
| 3,479,887 | |
Less: Intangible assets | |
| 26,581 | | |
| 28,970 | | |
| 1,408,117 | | |
| 1,439,746 | | |
| 1,443,395 | |
Tangible common equity | |
| 2,008,098 | | |
| 2,243,991 | | |
| 2,043,898 | | |
| 1,937,683 | | |
| 2,036,492 | |
Add: Accumulated other comprehensive loss | |
| 773,803 | | |
| 736,060 | | |
| 790,903 | | |
| 848,214 | | |
| 644,750 | |
Adjusted tangible common equity | |
$ | 2,781,901 | | |
$ | 2,980,051 | | |
$ | 2,834,801 | | |
$ | 2,785,897 | | |
$ | 2,681,242 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total assets | |
$ | 38,337,250 | | |
$ | 44,302,981 | | |
$ | 41,228,936 | | |
$ | 41,404,592 | | |
$ | 40,950,723 | |
Less: Intangible assets | |
| 26,581 | | |
| 28,970 | | |
| 1,408,117 | | |
| 1,439,746 | | |
| 1,443,395 | |
Tangible assets | |
$ | 38,310,669 | | |
$ | 44,274,011 | | |
$ | 39,820,819 | | |
$ | 39,964,846 | | |
$ | 39,507,328 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Equity to assets ratio | |
| 6.61 | % | |
| 6.26 | % | |
| 9.58 | % | |
| 9.36 | % | |
| 9.72 | % |
Tangible common equity ratio (1) | |
| 5.24 | % | |
| 5.07 | % | |
| 5.13 | % | |
| 4.85 | % | |
| 5.15 | % |
Tangible common equity ratio, excluding AOCI (2) | |
| 7.26 | % | |
| 6.73 | % | |
| 7.12 | % | |
| 6.97 | % | |
| 6.79 | % |
Book value per common share (3) | |
$ | 16.93 | | |
$ | 18.90 | | |
$ | 28.71 | | |
$ | 28.07 | | |
$ | 28.93 | |
Tangible book value per common share (4) | |
$ | 16.71 | | |
$ | 18.66 | | |
$ | 17.00 | | |
$ | 16.11 | | |
$ | 16.93 | |
Tangible book value per common share, excluding AOCI (5) | |
$ | 23.15 | | |
$ | 24.78 | | |
$ | 23.58 | | |
$ | 23.16 | | |
$ | 22.29 | |
Common shares outstanding | |
| 120,169,012 | | |
| 120,244,214 | | |
| 120,222,057 | | |
| 120,314,023 | | |
| 120,288,024 | |
(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. |
| |
Three Months Ended | | |
Six Months Ended | |
Adjusted Earnings, Earnings Per | |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | |
Share, and Return on Average Assets | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(In thousands, except per share amounts) | |
(Loss) earnings before income taxes | |
$ | (264,443 | ) | |
$ | (1,260,340 | ) | |
$ | 163,126 | | |
$ | (1,524,783 | ) | |
$ | 325,235 | |
Add: Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| - | | |
| 1,376,736 | | |
| - | |
Add: Acquisition, integration, and reorganization costs | |
| 12,394 | | |
| 8,514 | | |
| - | | |
| 20,908 | | |
| - | |
Add: Loan fair value loss adjustments | |
| 170,971 | | |
| - | | |
| - | | |
| 170,971 | | |
| - | |
Add: Unfunded commitments fair value loss adjustments | |
| 106,767 | | |
| - | | |
| - | | |
| 106,767 | | |
| - | |
Add: Civic loan sale charge-offs | |
| 22,446 | | |
| - | | |
| - | | |
| 22,446 | | |
| - | |
Adjusted earnings before income taxes | |
| 48,135 | | |
| 124,910 | | |
| 163,126 | | |
| 173,045 | | |
| 325,235 | |
Adjusted income tax expense (1) | |
| 12,178 | | |
| 35,474 | | |
| 40,766 | | |
| 55,374 | | |
| 82,747 | |
Adjusted earnings | |
| 35,957 | | |
| 89,436 | | |
| 122,360 | | |
| 117,671 | | |
| 242,488 | |
Less: Preferred stock dividends | |
| (9,947 | ) | |
| (9,947 | ) | |
| - | | |
| (19,894 | ) | |
| - | |
Adjusted earnings available to common stockholders | |
| 26,010 | | |
| 79,489 | | |
| 122,360 | | |
| 97,777 | | |
| 242,488 | |
Less: Earnings allocated to unvested restricted stock | |
| (313 | ) | |
| (1,210 | ) | |
| (2,351 | ) | |
| (1,372 | ) | |
| (4,389 | ) |
Adjusted earnings allocated to common shares | |
$ | 25,697 | | |
$ | 78,279 | | |
$ | 120,009 | | |
$ | 96,405 | | |
$ | 238,099 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted average shares outstanding | |
| 118,255 | | |
| 117,930 | | |
| 117,562 | | |
| 118,094 | | |
| 117,456 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted diluted earnings per common share (2) | |
$ | 0.22 | | |
$ | 0.66 | | |
$ | 1.02 | | |
$ | 0.82 | | |
$ | 2.03 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average assets | |
$ | 43,040,329 | | |
$ | 42,768,714 | | |
$ | 40,031,891 | | |
$ | 42,905,272 | | |
$ | 39,958,008 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Adjusted return on average assets (3) | |
| 0.34 | % | |
| 0.85 | % | |
| 1.23 | % | |
| 0.55 | % | |
| 1.22 | % |
(1) | Effective
tax rates of 25.3% and 25.0% used for three months ended June 30, 2023 and June 30, 2022; adjusted effective tax rate
of 28.4% used to normalize the effect of goodwill impairment for three months ended March 31, 2023. Adjusted
effective tax rate of 32.0% used to normalize the effect of goodwill impairment for six months ended June 30, 2023; effective tax
rate of 25.4% used for six months ended June 30, 2022. |
(2) | Adjusted
earnings allocated to common shares divided by weighted average shares outstanding. |
(3) | Annualized
adjusted earnings divided by average assets. |
| |
Three Months Ended | | |
Six Months Ended | |
| |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | |
Adjusted Efficiency Ratio | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| | |
| |
| |
(Dollars in thousands) | |
Noninterest expense | |
$ | 320,437 | | |
$ | 1,573,003 | | |
$ | 183,645 | | |
$ | 1,893,440 | | |
$ | 351,071 | |
Less: Intangible asset amortization | |
| 2,389 | | |
| 2,411 | | |
| 3,649 | | |
| 4,800 | | |
| 7,298 | |
Less: Foreclosed assets expense (income), net | |
| 2 | | |
| 363 | | |
| (28 | ) | |
| 365 | | |
| (3,381 | ) |
Less: Goodwill impairment | |
| - | | |
| 1,376,736 | | |
| - | | |
| 1,376,736 | | |
| - | |
Less: Acquisition, integration, and reorganization costs | |
| 12,394 | | |
| 8,514 | | |
| - | | |
| 20,908 | | |
| - | |
Noninterest expense used for efficiency ratio | |
| 305,652 | | |
| 184,979 | | |
| 180,024 | | |
| 490,631 | | |
| 347,154 | |
Less: Unfunded commitments fair value loss adjustments | |
| 106,767 | | |
| - | | |
| - | | |
| 106,767 | | |
| - | |
Noninterest expense used for adjusted efficiency ratio | |
$ | 198,885 | | |
$ | 184,979 | | |
$ | 180,024 | | |
$ | 383,864 | | |
$ | 347,154 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net interest income (tax equivalent) | |
$ | 186,076 | | |
$ | 281,616 | | |
$ | 327,801 | | |
$ | 467,692 | | |
$ | 640,452 | |
Noninterest income (loss) | |
| (128,082 | ) | |
| 36,391 | | |
| 34,346 | | |
| (91,691 | ) | |
| 55,164 | |
Net revenues | |
| 57,994 | | |
| 318,007 | | |
| 362,147 | | |
| 376,001 | | |
| 695,616 | |
Less: Gain (loss) on sale of securities | |
| - | | |
| - | | |
| (1,209 | ) | |
| - | | |
| (1,105 | ) |
Net revenues used for efficiency ratio | |
| 57,994 | | |
| 318,007 | | |
| 363,356 | | |
| 376,001 | | |
| 696,721 | |
Add: Loan fair value loss adjustments | |
| 170,971 | | |
| - | | |
| - | | |
| 170,971 | | |
| - | |
Net revenues used for adjusted efficiency ratio | |
$ | 228,965 | | |
$ | 318,007 | | |
$ | 363,356 | | |
$ | 546,972 | | |
$ | 696,721 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Efficiency ratio (1) | |
| 527.0 | % | |
| 58.2 | % | |
| 49.5 | % | |
| 130.5 | % | |
| 49.8 | % |
Adusted efficiency ratio (2) | |
| 86.9 | % | |
| 58.2 | % | |
| 49.5 | % | |
| 70.2 | % | |
| 49.8 | % |
(1) | Noninterest
expense used for efficiency ratio divided by net revenues used for efficiency ratio. |
(2) | Noninterest
expense used for adjusted efficiency ratio divided by net revenues used for adjusted efficiency ratio. |
Non-GAAP
Adjustment |
|
Location
on Income Statement |
Loan
fair value loss adjustments |
|
(Loss)
gain on sale of loans and leases/LOCOM HFS adjustment |
|
|
|
Civic
loan sale charge-offs |
|
Provision
for credit losses |
|
|
|
Acquisition,
integration, and reorganization costs |
|
Acquisition,
integration, and reorganization costs |
|
|
|
Unfunded
commitments fair value loss adjustments |
|
Other
expense |
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 |
v3.23.2
Cover
|
Jul. 25, 2023 |
Document Information [Line Items] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Jul. 25, 2023
|
Entity File Number |
001-36408
|
Entity Registrant Name |
PacWest Bancorp
|
Entity Central Index Key |
0001102112
|
Entity Tax Identification Number |
33-0885320
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
9701
Wilshire Blvd.
|
Entity Address, Address Line Two |
Suite
700
|
Entity Address, City or Town |
Beverly Hills
|
Entity Address, State or Province |
CA
|
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90212
|
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310
|
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887-8500
|
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Common Stock [Member] |
|
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|
Title of 12(b) Security |
Common Stock, par value $0.01 per share
|
Trading Symbol |
PACW
|
Security Exchange Name |
NASDAQ
|
Depositary Shares, Each Representing a 1/40th Interest in a Share of 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock,
Series A
|
Trading Symbol |
PACWP
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Security Exchange Name |
NASDAQ
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