Press Release

PacWest Bancorp Announces Results for the Fourth Quarter and Full Year 2018

Company Release - 1/17/2019 7:00 AM ET

Fourth Quarter 2018 Highlights

  • Net Earnings of $115.0 Million, or $0.93 Per Diluted Share
  • Tax Equivalent Net Interest Margin of 4.91%
  • Loan and Lease Production of $1.6 Billion; $728 Million of Net Loan Growth
  • Core Deposits Increase of $834 Million and Represent 87% of Total Deposits

Full Year 2018 Highlights

  • Net Earnings of $465.3 Million, or $3.72 Per Diluted Share
  • Tax Equivalent Net Interest Margin of 5.05%
  • Loan and Lease Production of $4.9 Billion; $985 Million of Net Loan Growth
  • Net Charge-offs 36% Lower for 2018 Compared to 2017
  • Core Deposits Growth of $410 Million

LOS ANGELES, Jan. 17, 2019 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the fourth quarter of 2018 of $115.0 million, or $0.93 per diluted share, compared to net earnings for the third quarter of 2018 of $116.3 million, or $0.94 per diluted share.  Net earnings for the full year 2018 were $465.3 million, or $3.72 per diluted share, compared to net earnings for the full year 2017 of $357.8 million, or $2.91 per diluted share.

Matt Wagner, President and CEO, commented, “We finished the year with strong growth in both loans and deposits and continued improvement in our credit quality metrics. Our fourth quarter results produced a return on assets of 1.84% and a return on tangible equity of 21.23%.”

Mr. Wagner continued, “Our net earnings for the full year 2018 increased 30% over the prior year to $465.3 million. The increase was driven largely by the benefits of tax reform and lower credit costs, while revenue growth significantly outpaced noninterest expense growth.  Our tax equivalent net interest margin remained above 5% for the full year 2018 and continued cost controls resulted in our efficiency ratio being unchanged from the prior year at 41%.”

Mr. Wagner continued, “We are pleased with the fourth quarter’s organic loan and core deposit growth and will work to carry that momentum into 2019. We will also retire the division names and branding of CapitalSource and Square 1 Bank and replace them with the National Lending and Venture Banking groups under one brand as Pacific Western Bank.” 

FINANCIAL HIGHLIGHTS

 At or For the
    At or For the
   
 Three Months Ended
    Year Ended
   
 December 31,  September 30,  Increase  December 31,
 Increase 
Financial Highlights 2018  2018  (Decrease)  2018  2017  (Decrease) 
 (Dollars in thousands, except per share data)
Net earnings$115,041  $116,287  $(1,246) $465,339  $357,818  $107,521 
Diluted earnings per share$0.93  $0.94  $(0.01) $3.72  $2.91  $0.81 
Return on average assets1.84% 1.89% (0.05) 1.91% 1.58% 0.33 
Return on average                 
tangible equity (1)21.23% 21.61% (0.38) 21.22% 15.15% 6.07 
                  
Net interest margin ("NIM")                 
(tax equivalent)4.91% 4.99% (0.08) 5.05% 5.10% (0.05)
Yield on average loans and                 
leases (tax equivalent)6.27% 6.20% 0.07  6.22% 5.97% 0.25 
Cost of average total deposits0.62% 0.46% 0.16  0.44% 0.27% 0.17 
Efficiency ratio41.7% 40.9% 0.8  41.0% 40.8% 0.2 
                  
Total assets$25,731,354  $24,782,126  $949,228  $25,731,354  $24,994,876  $736,478 
Loans and leases held                 
for investment,                 
net of deferred fees$17,957,713  $17,230,146  $727,567  $17,957,713  $16,972,743  $984,970 
Noninterest-bearing deposits$7,888,915  $7,834,480  $54,435  $7,888,915  $8,508,044  $(619,129)
Core deposits$16,346,671  $15,512,742  $833,929  $16,346,671  $15,937,012  $409,659 
Total deposits$18,870,501  $17,879,543  $990,958  $18,870,501  $18,865,536  $4,965 
                  
Noninterest-bearing                 
deposits as percentage                 
of total deposits42% 44% (2) 42% 45% (3)
Core deposits as                 
percentage of total                 
deposits87% 87% (0) 87% 85% 2 
                  
Equity to assets ratio18.75% 19.13% (0.38) 18.75% 19.91% (1.16)
Tangible common equity                 
ratio (1)9.60% 9.61% (0.01) 9.60% 10.50% (0.90)
Book value per share$39.17  $38.46  $0.71  $39.17  $38.65  $0.52 
Tangible book value per                 
share (1)$18.02  $17.28  $0.74  $18.02  $18.24  $(0.22)
                  
(1) Non-GAAP measure.                 

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased by $1.4 million to $261.8 million for the fourth quarter of 2018 compared to $260.3 million for the third quarter of 2018 due to a higher yield on average loans and leases and a higher balance of average loans and leases, offset partially by higher deposit costs.  The tax equivalent yield on average loans and leases was 6.27% for the fourth quarter of 2018 compared to 6.20% for the third quarter of 2018. The increase in the yield on average loans and leases was due principally to higher coupon interest.    

The tax equivalent NIM was 4.91% in the fourth quarter of 2018 compared to 4.99% for the third quarter of 2018. The decrease in the NIM was due mainly to higher deposit and borrowing costs, partially offset by a higher yield on average loans and leases and a higher yield on investment securities.          

The cost of average total deposits increased to 0.62% for the fourth quarter of 2018 from 0.46% for the third quarter of 2018 due to higher rates paid on deposits in conjunction with increased market interest rates.  

Provision for Credit Losses

The provision for credit losses increased by $0.5 million to $12.0 million for the fourth quarter of 2018 compared to $11.5 million for the third quarter of 2018.    

The following table presents details of the provision for credit losses for the periods indicated:  

 Three Months Ended    Year Ended
 December 31, September 30, Increase  December 31,
Provision for Credit Losses2018 2018 (Decrease)  2018
 (In thousands)    
Addition to allowance for loan        
and lease losses$  10,500 $  11,500 $  (1,000) $  36,774
Addition to reserve for unfunded        
loan commitments1,500 - 1,500  8,226
Total provision for credit losses$  12,000 $  11,500 $  500  $  45,000

Noninterest Income

Noninterest income decreased by $3.4 million to $33.5 million for the fourth quarter of 2018 compared to $36.9 million for the third quarter of 2018 due mainly to a $4.2 million decrease in dividends and gains on equity investments, a $1.6 million decrease in warrant income, and a $1.3 million decrease in other commissions and fees, offset partially by a $3.4 million increase in other income.  Dividends and gains on equity investments decreased mainly due to lower realized gains on investments sold and decreased fair values of investments still held. Warrant income decreased due to lower realized gains on exercised warrants as the third quarter included a $3.1 million gain on a warrant in a company that completed an IPO. Other commissions and fees decreased mostly due to lower prepayment and other loan-related fees.  Other income increased primarily due to higher miscellaneous income from borrower settlements and higher BOLI income from a death benefit received.

The following table presents details of noninterest income for the periods indicated:   

 Three Months Ended   
 December 31,  September 30, Increase 
Noninterest Income2018  2018 (Decrease) 
 (In thousands)    
Service charges on deposit accounts$  4,091  $  3,979 $  112 
Other commissions and fees11,114  12,397 (1,283)
Leased equipment income9,384  9,120 264 
Gain on sale of loans and leases-  - - 
Gain on sale of securities786  826 (40)
Other income:       
Dividends and (losses) gains on equity investments(1,331) 2,895 (4,226)
Warrant income2,187  3,818 (1,631)
Other7,295  3,877 3,418 
Total noninterest income$  33,526  $  36,912 $  (3,386)

Noninterest Expense

Noninterest expense increased by $1.1 million to $129.2 million for the fourth quarter of 2018 compared to $128.1 million for the third quarter of 2018 attributable primarily to a $3.7 million increase in other expense, offset partially by a $3.0 million decrease in compensation expense. Other expense increased due to the $2.1 million write-off of the Square 1 trademark asset as a result of our plan to retire the Square 1 Bank name and increased employee expense due to executive relocation costs.  Compensation expense decreased due mostly to lower stock compensation expense, lower bonus expense, and lower commissions expense as a result of the decreased warrant income.

The following table presents details of noninterest expense for the periods indicated:

 Three Months Ended   
 December 31,  September 30,  Increase 
Noninterest Expense2018  2018  (Decrease) 
 (In thousands)    
Compensation$  69,299  $  72,333  $  (3,034)
Occupancy   13,356    13,069    287 
Data processing  6,930    6,740    190 
Other professional services  6,198    6,058    140 
Insurance and assessments  4,202    5,446    (1,244)
Intangible asset amortization  4,986    5,587    (601)
Leased equipment depreciation  5,758    5,001    757 
Foreclosed assets income, net  (311)   (257)   (54)
Acquisition, integration and reorganization costs  970    800    170 
Loan expense  2,991    2,249    742 
Other  14,856    11,127    3,729 
Total noninterest expense$  129,235  $  128,153  $  1,082 

Income Taxes

The overall effective income tax rate was 25.3% for the fourth quarter of 2018 and 26.2% for the third quarter of 2018.  The decrease in the fourth quarter effective tax rate was due primarily to a change in the state apportionment method applied by the state of Maryland.  The effective tax rate for the year ended December 31, 2018 was 26.5% while the full year 2019 is estimated to be in the range of 27-28%.   

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Loans and leases held for investment, net of deferred fees, increased by $727.6 million in the fourth quarter of 2018 to $18.0 billion at December 31, 2018.  The net increase was driven mainly by production of $1.6 billion and disbursements of $1.2 billion, offset partially by payoffs of $1.1 billion and paydowns of $920.6 million.  For the year ended December 31, 2018 loans and leases held for investment, net of deferred fees, increased by $985.0 million or 5.8%.

The following table presents a roll forward of loans and leases held for investment, net of deferred fees, for the periods indicated:

 Three Months Ended Year Ended 
Loans and Leases December 31,   September 30,   December 31,  
Held for Investment Roll Forward (1)2018  2018  2018 
 (Dollars in thousands)
Balance, beginning of period$  17,230,146  $  16,885,192  $  16,972,743 
Additions:        
Production  1,571,565    1,315,572    4,888,614 
Disbursements  1,186,351    966,668    4,104,335 
Total production and disbursements  2,757,916    2,282,240    8,992,949 
Reductions:        
Payoffs  (1,070,691)   (1,133,233)   (4,289,297)
Paydowns  (920,633)   (795,243)   (3,480,997)
Total payoffs and paydowns  (1,991,324)   (1,928,476)   (7,770,294)
Sales   -    (3,326)   (161,729)
Transfers to foreclosed assets  (13,679)   (2,176)   (16,914)
Charge-offs  (25,346)   (3,308)   (59,042)
Total reductions  (2,030,349)   (1,937,286)   (8,007,979)
Balance, end of period$  17,957,713  $  17,230,146  $  17,957,713 
         
Weighted average rate on production (2)5.38% 5.17% 5.23%
         
 
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.
(2) The weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees. Amortized fees added approximately 31 basis points to loan yields in 2018.

The following table presents the composition of loans and leases held for investment, net of deferred fees, as of the dates indicated:

 December 31, September 30, June 30, December 31,
Loan and Lease Portfolio2018 2018 2018 2017
 (In thousands)
Real estate mortgage:       
Commercial$  4,824,298 $  4,932,823 $  5,010,680 $  5,385,740
Residential  3,093,843   2,745,837   2,555,695   2,466,894
Total real estate mortgage  7,918,141   7,678,660   7,566,375   7,852,634
Real estate construction and land:       
Commercial  912,583   854,346   831,462   769,075
Residential  1,321,073   1,146,611   1,042,564   822,154
Total real estate construction and land  2,233,656   2,000,957   1,874,026   1,591,229
Total real estate   10,151,797   9,679,617   9,440,401   9,443,863
Commercial:       
Asset-based  3,305,421   3,222,311   3,184,300   2,924,950
Venture capital  2,038,748   2,031,895   2,008,205   2,122,735
Other commercial  2,060,426   1,897,852   1,873,607   2,071,394
Total commercial  7,404,595   7,152,058   7,066,112   7,119,079
Consumer  401,321   398,471   378,679   409,801
Total loans and leases held for        
investment, net of deferred fees$  17,957,713 $  17,230,146 $  16,885,192 $  16,972,743
        
Total unfunded loan commitments$  7,528,248 $  7,055,833 $  6,429,587 $  6,234,061

Allowance for Credit Losses

The following tables show roll forwards of the allowance for credit losses for the periods indicated:

 Three Months Ended December 31, 2018
 Allowance for  Reserve for  Total 
Allowance for Credit Loan and   Unfunded Loan Allowance for 
Losses RollforwardLease Losses  Commitments Credit Losses 
 (In thousands)
Beginning balance$141,920  $35,361 $177,281 
Charge-offs(25,346) - (25,346)
Recoveries5,398  - 5,398 
Net charge-offs(19,948) - (19,948)
Provision10,500  1,500 12,000 
Ending balance$132,472  $36,861 $169,333 


 Three Months Ended September 30, 2018
 Allowance for  Reserve for  Total 
Allowance for Credit Loan and   Unfunded Loan Allowance for 
Losses RollforwardLease Losses  Commitments Credit Losses 
 (In thousands) 
Beginning balance$132,139  $35,361 $167,500 
Charge-offs(3,308) - (3,308)
Recoveries1,589  - 1,589 
Net charge-offs(1,719) - (1,719)
Provision11,500  - 11,500 
Ending balance$141,920  $35,361 $177,281 

The allowance for credit losses as a percentage of loans and leases held for investment decreased to 0.94% at December 31, 2018 from 1.03% at September 30, 2018 as certain specific reserves in place at September 30, 2018 were charged off during the fourth quarter, lowering the specific reserves on impaired loans at December 31, 2018 compared to September 30, 2018.

Gross charge-offs for the fourth quarter of 2018 were $25.3 million and included $23.4 million for venture capital loans, of which $20.0 million related to two loans, and $1.7 million for other commercial loans.  Gross charge-offs for the third quarter of 2018 were $3.3 million and included $1.1 million for venture capital loans, $0.7 million for real estate mortgage loans, and $0.7 million for asset-based loans. Recoveries for the fourth quarter of 2018 were $5.4 million and included $3.1 million for venture capital loans and $1.7 million for other commercial loans. Recoveries for the third quarter of 2018 were $1.6 million and included $1.0 million for venture capital loans.  

For the full year 2018, net charge-offs were $43.8 million and included $24.2 million for venture capital loans, a decrease from the full year 2017 net charge-offs of $68.7 million that included $36.0 million for venture capital loans.  This resulted in a decrease in net charge-offs to average loans for the venture capital portfolio from 1.77% in 2017 to 1.17% in 2018.

For the fourth quarter of 2018 and third quarter of 2018, annualized net charge-offs to average loans and leases were 0.46% and 0.04%.  For the full years 2018 and 2017, net charge-offs to average loans and leases were 0.26% and 0.43%.

Deposits and Client Investment Funds

The following table presents the composition of our deposit portfolio as of the dates indicated:

 December 31,  September 30,  June 30,  December 31, 
Deposit Category2018  2018  2018  2017 
 (Dollars in thousands)
Noninterest-bearing demand deposits$7,888,915  $7,834,480  $8,126,153  $8,508,044 
Interest checking deposits2,842,463  2,277,537  2,184,785  2,226,885 
Money market deposits5,043,871  4,782,724  4,631,658  4,511,730 
Savings deposits571,422  618,001  643,642  690,353 
Total core deposits16,346,671  15,512,742  15,586,238  15,937,012 
Non-core non-maturity deposits518,192  483,528  607,388  863,202 
Total non-maturity deposits16,864,863  15,996,270  16,193,626  16,800,214 
Time deposits $250,000 and under1,593,453  1,509,214  1,394,117  1,709,980 
Time deposits over $250,000412,185  374,059  341,449  355,342 
Total time deposits2,005,638  1,883,273  1,735,566  2,065,322 
Total deposits$18,870,501  $17,879,543  $17,929,192  $18,865,536 
            
Noninterest-bearing demand deposits           
as percentage of total deposits42% 44% 45% 45%
Core deposits as percentage of total deposits87% 87% 87% 85%

At December 31, 2018, core deposits totaled $16.3 billion, or 87% of total deposits, including $7.9 billion of noninterest-bearing demand deposits, or 42% of total deposits.    

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at December 31, 2018 were $1.9 billion, of which $1.5 billion was managed by S1AM.

CREDIT QUALITY  

The following table presents loan and lease credit quality metrics as of the dates indicated:

 December 31,  September 30,  Increase 
Credit Quality Metrics 2018  2018  (Decrease) 
 (Dollars in thousands)
Nonaccrual loans and leases held for investment (1)$79,333  $112,972  $(33,639)
Accruing loans contractually past due 90 days or more-  -  - 
Foreclosed assets, net5,299  4,407  892 
Total nonperforming assets$84,632  $117,379  $(32,747)
         
Nonaccrual loans and leases held for investment (1)$79,333  $112,972  $(33,639)
Performing troubled debt restructured loans        
held for investment17,701  22,106  (4,405)
Total impaired loans and leases$97,034  $135,078  $(38,044)
         
Nonaccrual loans and leases held for investment        
to loans and leases held for investment0.44% 0.66%   
Nonperforming assets to loans and leases        
held for investment and foreclosed assets0.47% 0.68%   
         
Pass$17,459,205  $16,609,629  $849,576 
Special mention261,398  360,058  (98,660)
Classified237,110  260,459  (23,349)
Total loans and leases held for investment,        
net of deferred fees$17,957,713  $17,230,146  $727,567 
         
Classified loans and leases held for investment        
to loans and leases held for investment1.32% 1.51%   
         
Allowance for credit losses$169,333  $177,281  $(7,948)
Provision for credit losses (for the quarter)$12,000  $11,500  $500 
Net charge-offs (for the quarter)$19,948  $1,719  $18,229 
Net charge-offs to average loans and leases        
(for the quarter)0.46% 0.04%   
Allowance for credit losses to loans and leases        
held for investment0.94% 1.03%   
Allowance for credit losses to nonaccrual loans        
and leases held for investment213.5% 156.9%   
         
(1) Nonaccrual loans include guaranteed amounts of $11.2 million at December 31, 2018 and $13.5 million 
at September 30, 2018.

During the fourth quarter of 2018, nonaccrual loans decreased by $33.6 million and classified loans decreased by $23.3 million.  These decreases were primarily due to the foreclosure and sale during the quarter of a $12.2 million commercial real estate loan (which was our only exposure to traditional malls) and the charge-off of two venture capital loans carried at $22.5 million that were classified and on nonaccrual status at September 30, 2018.

Special mention loans and leases decreased by $98.7 million in the fourth quarter due primarily to the payoff of two loans totaling $50 million and a $36 million loan being upgraded to pass status.  

The following table presents nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by portfolio segment and class as of the dates indicated:

 Nonaccrual Loans and Leases  Accruing and
 December 31, 2018  September 30, 2018  30-89 Days Past Due 
  % of    % of   December 31, September 30,
  Loan    Loan   2018 2018
 AmountCategory  AmountCategory  Amount Amount
 (Dollars in thousands)
Real estate mortgage:           
Commercial$15,3210.3% $29,7230.6% $3,276 $824
Residential2,5240.1% 3,2590.1% 1,557 5,436
Total real estate mortgage17,8450.2% 32,9820.4% 4,833 6,260
Real estate construction and land:           
Commercial4420.0% -0.0% - -
Residential-0.0% -0.0% 1,527 8,498
Total real estate           
construction and land4420.0% -0.0% 1,527 8,498
Commercial:           
Asset-based32,3241.0% 34,6191.1% 47 -
Venture capital20,2991.0% 35,5201.7% 1,028 1,028
Other commercial7,3800.4% 9,5790.5% 2,467 222
Total commercial60,0030.8% 79,7181.1% 3,542 1,250
Consumer1,0430.3% 2720.1% 581 605
Total held for investment$79,3330.4% $112,9720.7% $10,483 $16,613

STOCK REPURCHASE PROGRAM

During the fourth quarter of 2018, no shares were repurchased.  For the year ended December 31, 2018, we repurchased 5,849,234 shares at an average price of $52.38 and a total cost of $306.4 million.  At December 31, 2018, the remaining amount that could be used to repurchase shares under the $350 million Stock Repurchase Program was $110.1 million.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $25 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. Our Community Banking group provides lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices. We offer additional products and services through our National Lending and Venture Banking groups. National Lending provides asset-based, equipment, real estate and security cash flow loans and treasury management services to established middle-market businesses on a national basis. Venture Banking offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States.  For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

FORWARD LOOKING STATEMENTS

This communication contains 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. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the Securities and Exchange Commission.

We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

PACWEST BANCORP AND SUBSIDIARIES        
CONDENSED CONSOLIDATED BALANCE SHEET        
         
 December 31,  September 30,  December 31, 
 2018  2018  2017 
 (Dollars in thousands, except per share data)
ASSETS:        
Cash and due from banks$175,830  $196,502  $233,215 
Interest-earning deposits in financial institutions209,937  185,284  165,222 
Total cash and cash equivalents 385,767  381,786  398,437 
         
Securities available-for-sale, at estimated fair value4,009,431  3,820,333  3,774,431 
Federal Home Loan Bank stock, at cost32,103  31,077  20,790 
Total investment securities4,041,534  3,851,410  3,795,221 
         
Loans held for sale-  -  481,100 
         
Gross loans and leases held for investment18,026,365  17,295,589  17,032,221 
Deferred fees, net(68,652) (65,443) (59,478)
Total loans and leases held for investment,        
net of deferred fees17,957,713  17,230,146  16,972,743 
Allowance for loan and lease losses(132,472) (141,920) (139,456)
Total loans and leases held for investment, net17,825,241  17,088,226  16,833,287 
         
Equipment leased to others under operating leases292,677  275,707  284,631 
Premises and equipment, net34,661  34,012  31,852 
Foreclosed assets, net5,299  4,407  1,329 
Deferred tax asset, net17,489  41,280  - 
Goodwill2,548,670  2,548,670  2,548,670 
Core deposit and customer relationship intangibles, net57,120  62,106  79,626 
Other assets522,896  494,522  540,723 
Total assets$25,731,354  $24,782,126  $24,994,876 
         
LIABILITIES:        
Noninterest-bearing deposits$7,888,915  $7,834,480  $8,508,044 
Interest-bearing deposits10,981,586  10,045,063  10,357,492 
Total deposits18,870,501  17,879,543  18,865,536 
Borrowings1,371,114  1,513,166  467,342 
Subordinated debentures453,846  452,944  462,437 
Accrued interest payable and other liabilities210,305  194,788  221,963 
Total liabilities20,905,766  20,040,441  20,017,278 
STOCKHOLDERS' EQUITY (1)4,825,588  4,741,685  4,977,598 
Total liabilities and stockholders’ equity$25,731,354  $24,782,126  $24,994,876 
         
Book value per share$39.17  $38.46  $38.65 
Tangible book value per share (2)$18.02  $17.28  $18.24 
Shares outstanding123,189,833  123,283,450  128,782,878 
         
(1) Includes net unrealized (loss) gain on securities        
available-for-sale, net$(6,075) $(43,854) $31,171 
(2) Non-GAAP measure.        


PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
               
 Three Months Ended
 Year Ended
 December 31,  September 30,  December 31,  December 31,
 2018  2018  2017  2018  2017 
 (Dollars in thousands, except per share data)
Interest income:              
Loans and leases$272,522  $264,062  $258,309  $1,047,969  $952,771 
Investment securities29,690  28,061  25,712  111,619  98,202 
Deposits in financial institutions527  519  576  2,082  1,543 
Total interest income302,739  292,642  284,597  1,161,670  1,052,516 
               
Interest expense:              
Deposits28,834  21,121  14,041  80,140  45,694 
Borrowings4,602  3,814  1,366  11,985  3,638 
Subordinated debentures7,538  7,390  6,234  28,631  23,613 
Total interest expense40,974  32,325  21,641  120,756  72,945 
               
Net interest income261,765  260,317  262,956  1,040,914  979,571 
Provision for credit losses12,000  11,500  6,406  45,000  57,752 
Net interest income after               
provision for credit losses249,765  248,817  256,550  995,914  921,819 
               
Noninterest income:              
Service charges on deposit accounts4,091  3,979  4,574  16,509  15,307 
Other commissions and fees11,114  12,397  10,505  45,543  41,422 
Leased equipment income9,384  9,120  8,258  37,881  37,700 
Gain on sale of loans and leases-  -  1,988  4,675  6,197 
Gain (loss) on sale of securities786  826  (3,329) 8,176  (541)
Other income8,151  10,590  4,799  35,851  28,488 
Total noninterest income33,526  36,912  26,795  148,635  128,573 
               
Noninterest expense:              
Compensation69,299  72,333  71,986  282,568  266,567 
Occupancy13,356  13,069  12,715  53,223