Press Release

PacWest Bancorp Announces Results For the First Quarter 2019

Company Release - 4/16/2019 7:00 AM ET

Highlights

  • Net Earnings of $112.6 Million, or $0.92 Per Diluted Share
  • Tax Equivalent Net Interest Margin of 4.69%
  • Loan and Lease Production of $1.2 Billion; $350 Million of Net Loan Growth
  • Net Charge-offs Less Than $200 Thousand
  • Provision for Credit Losses Decreases 67% to $4.0 Million
  • Core Deposits Represent 84% of Total Deposits

LOS ANGELES, April 16, 2019 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the first quarter of 2019 of $112.6 million, or $0.92 per diluted share, compared to net earnings for the fourth quarter of 2018 of $115.0 million, or $0.93 per diluted share.

Matt Wagner, President and CEO, commented, “We continue to see the results of our credit de-risking strategy with continued downward trends in net charge-offs and credit loss provision and continued improvement in our credit quality metrics. Our first quarter of 2019 results produced a return on assets of 1.77% and a return on tangible equity of 20.64%.”

Mr. Wagner continued, “We had one of our strongest first quarters in terms of loan production and net loan growth and will work to continue that momentum into the rest of 2019 with an emphasis on core deposit generation. We also received approval to open a full-service branch office in Denver, Colorado and will continue to execute our expansion plans in that market.” 

FINANCIAL HIGHLIGHTS

 At or For the    At or For the   
 Three Months Ended   Three Months Ended  
 March 31, December 31,
 Increase March 31, Increase
Financial Highlights 2019 2018
 (Decrease) 2019 2018 (Decrease)
 (Dollars in thousands, except per share data)
Net earnings$  112,604  $  115,041  $  (2,437) $  112,604  $  118,276  $  (5,672)
Diluted earnings per share$  0.92  $  0.93  $  (0.01) $  0.92  $   0.93  $  (0.01)
Return on average assets 1.77%  1.84%    (0.07)  1.77%  1.99%    (0.22)
Return on average tangible equity (1) 20.64%  21.23%    (0.59)  20.64%  21.08%    (0.44)
            
Net interest margin ("NIM") (tax equivalent) 4.69%  4.91%    (0.22)  4.69%  5.11%    (0.42)
Yield on average loans and leases (tax equivalent) 6.16%  6.27%    (0.11)  6.16%  6.11%     0.05 
Cost of average total deposits 0.73%  0.62%    0.11   0.73%  0.31%    0.42 
Efficiency ratio 42.4%  41.7%    0.7   42.4%  41.7%    0.7 
            
Total assets$  26,324,138  $  25,731,354  $  592,784  $  26,324,138  $  24,149,330  $  2,174,808 
Loans and leases held for investment, net of deferred fees$  18,307,697  $  17,957,713  $  349,984  $  18,307,697  $  16,455,285  $  1,852,412 
Noninterest-bearing demand deposits$  7,712,409  $  7,888,915  $  (176,506) $  7,712,409  $  8,232,140  $  (519,731)
Core deposits$  16,127,638  $  16,346,671  $  (219,033) $  16,127,638  $  15,661,529  $  466,109 
Total deposits$  19,285,927  $  18,870,501  $  415,426  $  19,285,927  $  18,078,788  $  1,207,139 
            
As percentage of total deposits:           
Noninterest-bearing demand deposits 40%  42%    (2)  40%  46%    (6)
Core deposits 84%  87%    (3)  84%  87%    (3)
            
Equity to assets ratio 18.20%  18.75%    (0.55)  18.20%  20.16%    (1.96)
Tangible common equity ratio (1) 9.23%  9.60%    (0.37)  9.23%  10.43%    (1.20)
Book value per share$  39.86  $  39.17  $  0.69  $   39.86  $  38.47  $  1.39 
Tangible book value per share (1)$  18.22  $  18.02  $  0.20  $  18.22  $  17.75  $  0.47 
            
(1) Non-GAAP measure.           
            

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $6.9 million to $254.9 million for the first quarter of 2019 compared to $261.8 million for the fourth quarter of 2018 due to interest expense growth exceeding interest income growth and two less days in the first quarter compared to the fourth quarter. Interest expense increased by $8.7 million due mainly to higher deposit costs, offset partially by two less days in the first quarter of 2019. Interest income increased by $1.8 million due primarily to a higher balance of average loans and leases, offset partially by a lower yield on average loans and leases and two less days in the first quarter of 2019.  The tax equivalent yield on average loans and leases was 6.16% for the first quarter of 2019 compared to 6.27% for the fourth quarter of 2018. The decrease in the yield on average loans and leases was due principally to lower discount accretion on acquired loans (seven basis points in the first quarter versus 16 basis points in the fourth quarter).

The tax equivalent NIM was 4.69% for the first quarter of 2019 compared to 4.91% for the fourth quarter of 2018. The decrease in the NIM was due mainly to higher deposit and borrowing costs and a lower yield on average loans and leases.

The cost of average total deposits increased to 0.73% for the first quarter of 2019 from 0.62% for the fourth quarter of 2018. The increase was driven primarily by a shift in our deposit mix with increases in time and money market deposits and lower noninterest-bearing demand deposits along with higher rates paid on deposits in conjunction with the Federal Reserve December rate move.

Provision for Credit Losses

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

 Three Months Ended  
 March 31, December 31, Increase
Provision for Credit Losses2019 2018 (Decrease)
 (In thousands)  
Addition to allowance for loan and lease losses$4,000 $10,500 $(6,500)
Addition to reserve for unfunded loan commitments -  1,500  (1,500)
Total provision for credit losses$4,000 $12,000 $(8,000)
          

Noninterest Income

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

 Three Months Ended  
 March 31, December 31, Increase
Noninterest Income2019 2018 (Decrease)
 (In thousands)  
Service charges on deposit accounts$3,730 $4,091  $(361)
Other commissions and fees 11,008  11,114   (106)
Leased equipment income 9,282  9,384   (102)
Gain on sale of securities 2,161  786   1,375 
Other income:     
Dividends and gains (losses) on equity investments 296  (1,331)  1,627 
Warrant income 2,279  2,187   92 
Other 2,308  7,295   (4,987)
Total noninterest income$31,064 $33,526  $(2,462)
           

Noninterest income decreased by $2.5 million to $31.1 million for the first quarter of 2019 compared to $33.5 million for the fourth quarter of 2018 due mainly to a $5.0 million decrease in other income, offset partially by an increase of $1.6 million in dividends and gains on equity investments and a $1.4 million increase in gain on sale of securities. Other income decreased due primarily to lower miscellaneous income from borrower settlements and lower BOLI income attributable to a death benefit received in the fourth quarter of 2018.  Dividends and gains on equity investments increased mainly due to negative mark-to-market valuation adjustments in the fourth quarter on equity investments arising from exercised warrants. The increase in gain on sale of securities was attributable to a net gain of $2.2 million on sales of $405.8 million of securities in the first quarter of 2019 as part of a partial portfolio repositioning compared to a net gain of $0.8 million on sales of $70.9 million of securities in the fourth quarter of 2018.

Noninterest Expense

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

 Three Months Ended  
 March 31, December 31, Increase
Noninterest Expense2019 2018 (Decrease)
 (In thousands)  
Compensation$70,845 $69,299  $1,546 
Occupancy 14,320  13,356   964 
Data processing 6,925  6,930   (5)
Other professional services 4,513  6,198   (1,685)
Insurance and assessments 4,038  4,202   (164)
Intangible asset amortization 4,870  4,986   (116)
Leased equipment depreciation 5,651  5,758   (107)
Foreclosed assets expense (income), net 29  (311)  340 
Acquisition, integration and reorganization costs 618  970   (352)
Loan expense 2,885  2,991   (106)
Other 11,593  14,856   (3,263)
Total noninterest expense$126,287 $129,235  $(2,948)
           

Noninterest expense decreased by $2.9 million to $126.3 million for the first quarter of 2019 compared to $129.2 million for the fourth quarter of 2018 attributable primarily to a $3.3 million decrease in other expense and a $1.7 million decrease in other professional services, offset partially by a $1.5 million increase in compensation expense. The decrease in other expense was mainly due to the $2.1 million write-off of the Square 1 Bank trademark asset in the fourth quarter of 2018 as a result of our plan to retire the Square 1 Bank name and increased employee expense in the fourth quarter of 2018 due to executive relocation costs.  Other professional services expense decreased due to lower legal and consulting expenses. Compensation expense increased due to normal seasonal increases in payroll tax and other employee benefit expenses and higher bonus expense, offset partially by lower stock compensation expense, due to an increase in forfeitures, and lower commissions expense.

Income Taxes

The overall effective income tax rate was 27.7% for the first quarter of 2019 and 25.3% for the fourth quarter of 2018.  The fourth quarter 2018 effective tax rate was lower due primarily to a change in the state apportionment method applied by the state of Maryland.  The effective tax rate for the full year 2019 is estimated to be in the range of 27-28%.   

BALANCE SHEET HIGHLIGHTS

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
Roll Forward of Loans and Leases HeldMarch 31,  December 31,
for Investment, Net of Deferred Fees (1)2019 2018
 (Dollars in thousands)
Balance, beginning of period$17,957,713  $17,230,146 
Additions:   
Production 1,174,838   1,571,565 
Disbursements 1,192,972   1,186,351 
Total production and disbursements 2,367,810   2,757,916 
Reductions:   
Payoffs (933,300)  (1,070,691)
Paydowns (1,038,964)  (920,633)
Total payoffs and paydowns (1,972,264)  (1,991,324)
Sales (16,936)  - 
Transfers to foreclosed assets (37)  (13,679)
Charge-offs (3,465)  (25,346)
Transfers to loans held for sale (25,124)  - 
Total reductions (2,017,826)  (2,030,349)
Balance, end of period$18,307,697  $17,957,713 
    
Weighted average rate on production (2) 5.11%  5.38%
 
(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 24 basis points to loan yields in 2019 and 31 basis points to loan yields in 2018.
 

Loans and leases held for investment, net of deferred fees, increased by $350.0 million, or 8% annualized, in the first quarter of 2019 to $18.3 billion at March 31, 2019.  The net loan growth in the first quarter was primarily from the real estate construction loan class and income producing and other residential loan class, which included $285 million of multi-family loan pool purchases.

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

 March 31, 2019 December 31, 2018 March 31, 2018
  % of   % of   % of
Loan and Lease Portfolio (1)AmountTotal AmountTotal AmountTotal
 (In thousands)
Real estate mortgage:        
Commercial$  4,640,51025% $  4,824,29827% $  5,033,00631%
Income producing and other residential   3,518,94819%    3,093,84317%    2,521,23715%
Total real estate mortgage   8,159,45844%    7,918,14144%    7,554,24346%
Real estate construction and land:        
Commercial   943,5965%    912,5835%    789,8925%
Residential   1,408,1288%    1,321,0738%    887,1105%
Total real estate construction and land   2,351,72413%    2,233,65613%    1,677,00210%
Total real estate   10,511,18257%    10,151,79757%    9,231,24556%
Commercial:        
Asset-based   3,422,20219%    3,305,42118%    2,957,89018%
Venture capital   2,027,45011%    2,038,74811%    1,920,64312%
Other commercial   1,974,70211%    2,060,42612%    1,947,59012%
Total commercial   7,424,35441%    7,404,59541%    6,826,12342%
Consumer   372,1612%    401,3212%    397,9172%
Total loans and leases held for investment, net of deferred fees$  18,307,697100% $  17,957,713100% $  16,455,285100%
         
Total unfunded loan commitments$  7,465,392  $  7,528,248  $  6,352,803 
            

____________________
(1) Excludes loans held for sale carried at lower of cost or fair value at March 31, 2019.

Allowance for Credit Losses

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

 Three Months Ended March 31, 2019
 Allowance for Reserve for  Total
Allowance for Credit Loan and  Unfunded Loan Allowance for
Losses RollforwardLease Losses Commitments Credit Losses
 (In thousands)
Beginning balance$  132,472  $  36,861 $  169,333 
Charge-offs   (3,465)    -    (3,465)
Recoveries   3,274      -    3,274 
Net charge-offs   (191)    -    (191)
Provision   4,000     -    4,000 
Ending balance$  136,281  $  36,861 $  173,142 
      
      
      
 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)
Recoveries   5,398     -    5,398 
Net charge-offs   (19,948)    -    (19,948)
Provision   10,500     1,500    12,000 
Ending balance$  132,472  $  36,861 $  169,333 
           

The allowance for credit losses as a percentage of loans and leases held for investment increased to 0.95% at March 31, 2019 from 0.94% at December 31, 2018.

Gross charge-offs for the first quarter of 2019 were $3.5 million and were primarily for other commercial loans.  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.  Recoveries for the first quarter of 2019 were $3.3 million and included $2.3 million for venture capital loans and $0.8 million for other commercial 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.     

For the first quarter of 2019 and fourth quarter of 2018, annualized net charge-offs to average loans and leases were 0.00% and 0.46%.  

Deposits and Client Investment Funds

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

 March 31, 2019 December 31, 2018 March 31, 2018
  % of   % of   % of
Deposit CompositionAmountTotal AmountTotal AmountTotal
 (Dollars in thousands)
Noninterest-bearing demand$  7,712,40940% $  7,888,91542% $  8,232,14046%
Interest checking   3,163,22816%    2,842,46315%    2,076,15211%
Money market   4,714,07825%    5,043,87127%    4,676,73426%
Savings   537,9233%    571,4223%    676,5034%
Total core deposits   16,127,63884%    16,346,67187%    15,661,52987%
Non-core non-maturity deposits   454,2772%    518,1923%    585,3993%
Total non-maturity deposits   16,581,91586%    16,864,86390%    16,246,92890%
Time deposits $250,000 and under   2,258,98912%    1,593,4538%    1,482,1188%
Time deposits over $250,000   445,0232%    412,1852%    349,7422%
Total time deposits   2,704,01214%    2,005,63810%    1,831,86010%
Total deposits$  19,285,927100% $  18,870,501100% $  18,078,788100%
               

At March 31, 2019, core deposits totaled $16.1 billion, or 84% of total deposits, including $7.7 billion of noninterest-bearing demand deposits, or 40% 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 March 31, 2019 were $2.2 billion, of which $1.6 billion was managed by S1AM.

CREDIT QUALITY  

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

 March 31, December 31, Increase
Credit Quality Metrics 2019 2018 (Decrease)
 (Dollars in thousands)
NPAs and Performing TDRs:     
Nonaccrual loans and leases held for investment (1)(2)$  88,527  $  79,333  $  9,194 
Accruing loans contractually past due 90 days or more   -     -     - 
Foreclosed assets, net   3,291     5,299     (2,008)
Total nonperforming assets ("NPAs")$  91,818  $  84,632  $  7,186 
      
Nonaccrual loans and leases held for investment to loans and leases held for investment 0.48%  0.44%  
Nonperforming assets to loans and leases held for investment and foreclosed assets 0.50%  0.47%  
      
Nonaccrual loans and leases held for investment (1)(2)$  88,527  $  79,333  $  9,194 
Performing TDRs held for investment   17,027     17,701     (674)
Total impaired loans and leases$  105,554  $  97,034  $  8,520 
      
Loan and Lease Credit Risk Ratings:     
Pass$  17,824,612  $  17,459,205  $  365,407 
Special mention   292,780     261,398     31,382 
Classified (1)   190,305     237,110     (46,805)
Total loans and leases held for investment, net of deferred fees$  18,307,697  $  17,957,713  $  349,984 
      
Classified loans and leases held for investment to loans and leases held for investment 1.04%  1.32%  
      
Allowance for Credit Losses:     
Allowance for credit losses$  173,142  $  169,333  $  3,809 
Provision for credit losses (for the quarter)$  4,000  $  12,000  $  (8,000)
Net charge-offs (for the quarter)$  191  $  19,948  $  (19,757)
Net charge-offs to average loans and leases (for the quarter) 0.00%  0.46%  
Allowance for credit losses to loans and leases held for investment 0.95%  0.94%  
Allowance for credit losses to nonaccrual loans and leases held for investment 195.6%  213.5%  
          
(1) Excludes loans held for sale carried at lower of cost or fair value at March 31, 2019.
(2) Nonaccrual loans include guaranteed amounts of $10.2 million at March 31, 2019 and $11.2 million at December 31, 2018.
          

Nonaccrual, classified, and special mention loans and leases fluctuate from period to period as a result of loan repayments and our ongoing active portfolio monitoring.

During the first quarter of 2019, nonaccrual loans and leases increased $9.2 million from what was a five-year low as of December 31, 2018, while classified loans and leases decreased by $46.8 million driven primarily by the payoff of a $30 million commercial real estate mortgage loan.  

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 (1) Accruing and
 March 31, 2019 December 31, 2018 30-89 Days Past Due
  % of   % of  March 31, December 31,
  Loan   Loan  2019 2018
 AmountCategory AmountCategory Amount Amount
 (Dollars in thousands)
Real estate mortgage:         
Commercial$12,7500.3% $15,3210.3% $6,863 $3,276
Income producing and other residential 2,4440.1%  2,5240.1%  1,853  1,557
Total real estate mortgage 15,1940.2%  17,8450.2%  8,716  4,833
Real estate construction and land:         
Commercial 4300.0%  4420.0%  -  -
Residential -0.0%  -0.0%  8,949  1,527
Total real estate construction and land 4300.0%  4420.0%  8,949  1,527
Commercial:         
Asset-based 43,4061.3%  32,3241.0%  3,750  47
Venture capital 20,4371.0%  20,2991.0%  4,500  1,028
Other commercial 8,6330.4%  7,3800.4%  1,694  2,467
Total commercial 72,4761.0%  60,0030.8%  9,944  3,542
Consumer 4270.1%  1,0430.3%  614  581
Total held for investment$88,5270.5% $79,3330.4% $28,223 $10,483
                

____________________
(1) Excludes loans held for sale carried at lower of cost or fair value at March 31, 2019.

STOCK REPURCHASE PROGRAM

In February 2019, the Company announced a new stock repurchase program with an authorized repurchase amount not to exceed $225 million and with a program maturity of February 29, 2020.  During the first quarter of 2019, we repurchased 3,070,676 shares at an average price of $38.94 and a total cost of $119.6 million, of which $65.4 million was under the new plan, leaving $159.6 million remaining under the plan as of March 31, 2019.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $26 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   
    
 March 31, December 31,
 2019 2018
 (Dollars in thousands, except per share data)
ASSETS:   
Cash and due from banks$  224,758  $  175,830 
Interest-earning deposits in financial institutions   332,124     209,937 
Total cash and cash equivalents     556,882     385,767 
    
Securities available-for-sale, at estimated fair value   3,994,708     4,009,431 
Federal Home Loan Bank stock, at cost   29,430     32,103 
Total investment securities   4,024,138     4,041,534 
    
Loans held for sale   25,124     - 
    
Gross loans and leases held for investment   18,371,295     18,026,365 
Deferred fees, net   (63,598)    (68,652)
Total loans and leases held for investment, net of deferred fees   18,307,697     17,957,713 
Allowance for loan and lease losses    (136,281)    (132,472)
Total loans and leases held for investment, net   18,171,416     17,825,241 
    
Equipment leased to others under operating leases   293,853     292,677 
Premises and equipment, net   37,783     34,661 
Foreclosed assets, net   3,291     5,299 
Deferred tax asset, net   -     17,489 
Goodwill   2,548,670     2,548,670 
Core deposit and customer relationship intangibles, net   52,250     57,120 
Other assets   610,731     522,896 
Total assets$  26,324,138  $  25,731,354 
    
LIABILITIES:   
Noninterest-bearing deposits$  7,712,409  $  7,888,915 
Interest-bearing deposits   11,573,518     10,981,586 
Total deposits    19,285,927     18,870,501 
Borrowings   1,481,087     1,371,114 
Subordinated debentures   454,458     453,846 
Accrued interest payable and other liabilities   311,684     210,305 
Total liabilities   21,533,156     20,905,766 
STOCKHOLDERS' EQUITY (1)   4,790,982     4,825,588 
Total liabilities and stockholders’ equity$  26,324,138  $   25,731,354 
    
Book value per share$  39.86  $  39.17 
Tangible book value per share (2)$  18.22  $  18.02 
Shares outstanding   120,201,149     123,189,833 
    
(1) Includes net unrealized gain (loss) on securities available-for-sale, net$  37,258  $  (6,075)
(2) Non-GAAP measure.   
    


PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
      
 Three Months Ended
 March 31, December 31, March 31,
 2019 2018 2018
 (Dollars in thousands, except per share data)
Interest income:     
Loans and leases$  274,229 $  272,522  $  251,085 
Investment securities   29,680    29,690     26,138 
Deposits in financial institutions   650    527     552 
Total interest income   304,559    302,739      277,775 
      
Interest expense:     
Deposits   34,235    28,834     13,818 
Borrowings   7,710    4,602     920 
Subordinated debentures   7,738     7,538     6,537 
Total interest expense   49,683    40,974     21,275 
      
Net interest income   254,876    261,765     256,500 
Provision for credit losses    4,000    12,000     4,000 
Net interest income after provision for credit losses   250,876    249,765     252,500 
      
Noninterest income:     
Service charges on deposit accounts    3,730    4,091     4,174 
Other commissions and fees   11,008    11,114     10,265 
Leased equipment income   9,282    9,384     9,587 
Gain on sale of loans and leases   -    -     4,569 
Gain on sale of securities   2,161    786     6,311 
Other income   4,883    8,151     3,653 
Total noninterest income   31,064    33,526     38,559 
      
Noninterest expense:     
Compensation   70,845    69,299     71,023 
Occupancy   14,320    13,356     13,223 
Data processing   6,925    6,930     6,659 
Other professional services   4,513    6,198     4,439 
Insurance and assessments   4,038    4,202     5,727 
Intangible asset amortization   4,870    4,986     6,346 
Leased equipment depreciation   5,651    5,758      5,375 
Foreclosed assets expense (income), net   29    (311)    (122)
Acquisition, integration and reorganization costs   618    970     - 
Loan expense   2,885    2,991     2,271 
Other expense   11,593    14,856     12,454 
Total noninterest expense   126,287    129,235     127,395 
      
Earnings before income taxes   155,653    154,056     163,664 
Income tax expense   43,049    39,015     45,388 
Net earnings $  112,604 $  115,041  $  118,276 
      
Basic and diluted earnings per share$  0.92 $  0.93  $  0.93 
Dividends declared and paid per share$  0.60 $  0.60  $  0.50 
           


PACWEST BANCORP AND SUBSIDIARIES 
NET EARNINGS PER SHARE CALCULATIONS
      
 Three Months Ended
 March 31, December 31, March 31,
 2019 2018 2018
 (In thousands, except per share data)
Basic Earnings Per Share:     
Net earnings$  112,604  $  115,041  $  118,276 
Less: earnings allocated to unvested restricted stock (1)   (1,163)    (1,219)    (1,115)
Net earnings allocated to common shares$  111,441  $   113,822  $  117,161 
      
Weighted-average basic shares and unvested restricted stock outstanding   122,227     123,238     127,487 
Less: weighted-average unvested restricted stock outstanding   (1,352)    (1,426)    (1,413)
Weighted-average basic shares outstanding   120,875     121,812     126,074 
      
Basic earnings per share$   0.92  $  0.93  $  0.93 
      
Diluted Earnings Per Share:     
Net earnings allocated to common shares$  111,441  $  113,822  $  117,161 
      
Weighted-average basic shares outstanding   120,875