PacWest Bancorp Announces Results For The Third Quarter 2017

Highlights

• Net Earnings of $101.5 Million, or $0.84 Per Diluted Share
• New Loan and Lease Production of $1.0 Billion
• Core Deposits Increase of $314 Million and Represent 81% of Total Deposits
• Tax Equivalent Net Interest Margin of 5.08%
• All Approvals Received for CUB Acquisition; Expected to Close October 20

LOS ANGELES, Oct. 17, 2017 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq:PACW) today announced net earnings for the third quarter of 2017 of $101.5 million, or $0.84 per diluted share, compared to net earnings for the second quarter of 2017 of $93.6 million, or $0.77 per diluted share. The increase in net earnings from the prior quarter was primarily due to lower income tax expense partially offset by lower noninterest income and a higher provision for credit losses. Income tax expense for the third quarter was lower due to a $13.6 million reversal of a valuation allowance related to tax credits which, based on our latest analysis, are more likely than not to be utilized before they expire.  

Matt Wagner, President and CEO, commented, “We delivered solid performance in the third quarter and continue to demonstrate our earning power. Our strong third quarter results produced a return on assets of 1.82% and a return on tangible equity of 16.85%.”

Mr. Wagner continued, “All required approvals have been received and we look forward to closing the CU Bancorp acquisition this week. We are excited about the exceptional core deposit franchise and opportunities for increased operating efficiencies provided by this transaction.”

FINANCIAL HIGHLIGHTS

	At or For the Three Months Ended												At or For the Nine Months Ended
	September 30,				June 30,								September 30,
Financial Highlights		2017				2017			Change					2017				2016			Change
	(Dollars in thousands, except per share data)
Net earnings	$	101,466			$	93,647			$	7,819			$	273,781			$	266,519			$	7,262
Diluted earnings per share	$	0.84			$	0.77			$	0.07			$	2.26			$	2.19			$	0.07
Return on average assets		1.82	%			1.71	%			0.11				1.67	%			1.69	%			(0.02	)
Return on average
tangible equity (1)		16.85	%			16.06	%			0.79				15.63	%			15.74	%			(0.11	)
Net interest margin
(tax equivalent)		5.08	%			5.21	%			(0.13	)			5.15	%			5.37	%			(0.22	)
Efficiency ratio		40.4	%			40.3	%			0.1				40.7	%			39.7	%			1.0
Total assets	$	22,242,932			$	22,246,877			$	(3,945	)		$	22,242,932			$	21,315,291			$	927,641
Loans and leases held
for investment, net of
deferred fees	$	15,690,517			$	15,543,457			$	147,060			$	15,690,517			$	14,742,846			$	947,671
Noninterest-bearing
deposits	$	6,911,874			$	6,701,039			$	210,835			$	6,911,874			$	6,521,946			$	389,928
Core deposits	$	13,531,300			$	13,217,574			$	313,726			$	13,531,300			$	12,010,639			$	1,520,661
Total deposits	$	16,773,245			$	16,874,977			$	(101,732	)		$	16,773,245			$	15,645,668			$	1,127,577
Noninterest-bearing
deposits as percentage
of total deposits		41	%			40	%			1				41	%			42	%			(1	)
Core deposits as
percentage of total
deposits		81	%			78	%			3				81	%			77	%			4
Equity to assets ratio		20.73	%			20.50	%			0.23				20.73	%			21.31	%			(0.58	)
Tangible common equity
ratio (1)		12.02	%			11.75	%			0.27				12.02	%			12.19	%			(0.17	)
Book value per share	$	37.96			$	37.55			$	0.41			$	37.96			$	37.29			$	0.67
Tangible book value per
share (1)	$	19.84			$	19.40			$	0.44			$	19.84			$	19.12			$	0.72
(1) Non-GAAP measure.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $0.8 million to $241.7 million for the third quarter of 2017 compared to $242.5 million for the second quarter of 2017 due mainly to interest expense growth exceeding interest income growth for the quarter. The loan and lease yield was 6.01% for the third quarter of 2017 compared to 6.07% for the second quarter of 2017.  The decrease in the loan and lease yield was principally due to the decrease in discount accretion on acquired loans and lower loan fee income.  Total discount accretion on acquired loans was $5.5 million in the third quarter of 2017 compared to $7.5 million in the second quarter of 2017.

The tax equivalent NIM was 5.08% for the third quarter of 2017 compared to 5.21% for the second quarter of 2017.  The decrease in the NIM was mostly due to the decrease in discount accretion on acquired loans and loan fee income and a higher cost of average interest-bearing liabilities. Total discount accretion on acquired loans contributed 11 basis points to the NIM for the third quarter of 2017 and 16 basis points for the second quarter of 2017.

The cost of average total deposits increased to 0.31% for the third quarter of 2017 from 0.25% for the second quarter of 2017 due to higher rates paid for non-core deposits and select large-balance deposit customers.

Noninterest Income

Noninterest income decreased by $3.9 million to $31.4 million for the third quarter of 2017 compared to $35.3 million for the second quarter of 2017 due mainly to a $3.3 million decrease in leased equipment income due to lower gains on early lease terminations and a $1.9 million decrease in other income as the second quarter included a BOLI death benefit and higher recoveries from third parties, offset by an increase in gain on sale of loans and leases of $2.2 million.   

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

	Three Months Ended
	September 30,			June 30,			Increase
Noninterest Income	2017				2017		(Decrease)
	(In thousands)
Service charges on deposit accounts	$	3,465		$	3,510		$	(45	)
Other commissions and fees		9,944			10,583			(639	)
Leased equipment income		8,332			11,635			(3,303	)
Gain on sale of loans and leases		2,848			649			2,199
Gain on sale of securities		1,236			1,651			(415	)
Other income:
Dividends and realized gains on equity investments		1,845			1,587			258
Warrant income		731			815			(84	)
Other		2,981			4,852			(1,871	)
Total noninterest income	$	31,382		$	35,282		$	(3,900	)

Noninterest Expense

Noninterest expense increased by $0.8 million to $118.5 million for the third quarter of 2017 compared to $117.7 million for the second quarter of 2017 due mostly to a $2.3 million increase in foreclosed assets expense offset by decreases in several expense categories. The increase in foreclosed assets expense was due to a write-down of $2.1 million on foreclosed property.   

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

	Three Months Ended
	September 30,			June 30,				Increase
Noninterest Expense	2017				2017			(Decrease)
	(In thousands)
Compensation	$	64,413		$	65,288			$	(875	)
Occupancy		12,729			11,811				918
Data processing		6,459			6,337				122
Other professional services		4,213			3,976				237
Insurance and assessments		4,702			4,856				(154	)
Intangible asset amortization		3,049			3,065				(16	)
Leased equipment depreciation		4,862			5,232				(370	)
Foreclosed assets expense (income), net		2,191			(157	)			2,348
Acquisition, integration and reorganization costs		1,450			1,700				(250	)
Loan expense		3,421			3,884				(463	)
Other		11,053			11,715				(662	)
Total noninterest expense	$	118,542		$	117,707			$	835

Income Taxes

The overall effective income tax rate was 27.2% for the third quarter of 2017 and 37.0% for the second quarter of 2017.  The effective rate for the third quarter was lower due to the $13.6 million reversal of a valuation allowance related to tax credits which, based on our latest analysis, are more likely than not to be utilized before they expire. The estimated effective tax rate for the full year 2017 is approximately 35%. 

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Total loans and leases held for investment, net of deferred fees, increased by $147.1 million in the third quarter to $15.7 billion at September 30, 2017.  The net increase was driven mainly by third quarter new production of $1.0 billion and disbursements of $722.8 million, offset partially by payoffs of $903.4 million and paydowns of $637.7 million.    
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
Loans and Leases	September 30,				June 30,
Held for Investment Roll Forward (1)		2017				2017
	(Dollars in thousands)
Balance, beginning of period	$	15,543,457			$	15,556,689
New production		1,002,887				1,077,929
Existing loans and leases:
Payoffs		(903,395	)			(956,322	)
Paydowns		(637,674	)			(587,000	)
Disbursements		722,777				700,207
Sales (2)		(31,528	)			(45,976	)
Transfers to foreclosed assets		-				(502	)
Charge-offs		(6,007	)			(26,410	)
Transfers to loans held for sale		-				(175,158	)
Balance, end of period	$	15,690,517			$	15,543,457
Weighted average rate on new production		5.04	%			4.93	%
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.
(2) Sales for the three months ended September 30, 2017 exclude sales of loans that were classified
as loans held for sale at June 30, 2017.

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

	September 30,			June 30,			March 31,			September 30,
Loan and Lease Portfolio		2017			2017			2017			2016
	(In thousands)
Real estate mortgage:
Commercial	$	4,338,933		$	4,418,463		$	4,420,923		$	4,327,565
Residential		1,850,324			1,719,269			1,554,946			1,242,254
Total real estate mortgage		6,189,257			6,137,732			5,975,869			5,569,819
Real estate construction and land:
Commercial		680,950			691,828			668,510			510,831
Residential		568,273			473,282			442,051			323,104
Total real estate construction and land		1,249,223			1,165,110			1,110,561			833,935
Total real estate		7,438,480			7,302,842			7,086,430			6,403,754
Commercial:
Cash flow		2,734,454			2,834,966			3,138,196			3,071,606
Asset-based		2,577,470			2,392,203			2,391,161			2,573,437
Venture capital		1,959,489			2,001,427			1,934,949			1,766,509
Equipment finance		594,473			613,550			623,237			670,783
Total commercial		7,865,886			7,842,146			8,087,543			8,082,335
Consumer		386,151			398,469			382,716			256,757
Total loans and leases held for
investment, net of deferred fees (1)	$	15,690,517		$	15,543,457		$	15,556,689		$	14,742,846
Total unfunded loan commitments	$	5,037,084		$	4,926,743		$	4,497,373		$	4,156,147
(1) Excludes loans held for sale carried at lower of cost or fair value at June 30, 2017.

Deposits and Client Investment Funds

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

	September 30,				June 30,				March 31,				September 30,
Deposit Category		2017				2017				2017				2016
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	6,911,874			$	6,701,039			$	6,789,808			$	6,521,946
Interest checking deposits		1,957,485				1,762,016				1,509,902				1,184,350
Money market deposits		3,967,224				4,033,471				3,758,962				3,532,050
Savings deposits		694,717				721,048				710,401				772,293
Total core deposits		13,531,300				13,217,574				12,769,073				12,010,639
Non-core non-maturity deposits		1,118,694				1,329,324				1,154,070				1,082,114
Total non-maturity deposits		14,649,994				14,546,898				13,923,143				13,092,753
Time deposits $250,000 and under		1,770,439				1,940,872				1,998,597				2,091,747
Time deposits over $250,000		352,812				387,207				409,268				461,168
Total time deposits		2,123,251				2,328,079				2,407,865				2,552,915
Total deposits	$	16,773,245			$	16,874,977			$	16,331,008			$	15,645,668
Noninterest-bearing demand deposits
as percentage of total deposits		41	%			40	%			42	%			42	%
Core deposits as percentage of total deposits		81	%			78	%			78	%			77	%

At September 30, 2017, core deposits totaled $13.5 billion, or 81% of total deposits, including $6.9 billion of noninterest-bearing demand deposits, or 41% 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 September 30, 2017 were $1.9 billion, of which $1.6 billion was managed by S1AM.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

A provision for credit losses of $15.1 million was recorded in the third quarter of 2017 compared to $11.5 million in the second quarter of 2017.  The third quarter provision consisted of $15.5 million for non-purchased credit impaired (“Non-PCI”) loans and leases and a $0.4 million negative provision for PCI loans; this compares to a provision of $12.5 million and a negative provision of $1.0 million, respectively, for the second quarter of 2017.  The higher provision for the third quarter of 2017 was due mainly to loan risk rating downgrades combined with net portfolio growth.  The allowance for Non-PCI credit losses to Non-PCI loans and leases held for investment coverage ratio was 1.11% and 1.02% at September 30, 2017 and June 30, 2017. 

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

	Three Months Ended September 30, 2017
	Non-PCI
Allowance for Credit	Loans and				Unfunded			Total				PCI
Losses Rollforward	Leases				Commitments			Non-PCI				Loans				Total
	(In thousands)
Beginning balance	$	138,879			$	20,263		$	159,142			$	7,079			$	166,221
Charge-offs		(5,928	)			-			(5,928	)			(79	)			(6,007	)
Recoveries		4,865				-			4,865				217				5,082
Net charge-offs		(1,063	)			-			(1,063	)			138				(925	)
Provision		14,954				546			15,500				(381	)			15,119
Ending balance	$	152,770			$	20,809		$	173,579			$	6,836			$	180,415
	Three Months Ended June 30, 2017
	Non-PCI
Allowance for Credit	Loans and				Unfunded			Total				PCI
Losses Rollforward	Leases				Commitments			Non-PCI				Loans				Total
	(In thousands)
Beginning balance	$	149,826			$	17,763		$	167,589			$	11,481			$	179,070
Charge-offs		(22,951	)			-			(22,951	)			(3,459	)			(26,410	)
Recoveries		2,004				-			2,004				58				2,062
Net charge-offs		(20,947	)			-			(20,947	)			(3,401	)			(24,348	)
Provision		10,000				2,500			12,500				(1,001	)			11,499
Ending balance	$	138,879			$	20,263		$	159,142			$	7,079			$	166,221

The gross charge-offs for the third quarter of 2017 included $3.4 million for venture capital loans. Recoveries for the quarter included $2.6 million related to venture capital loans previously charged off in 2017. The annualized ratio of total net charge-offs to total average loans was 0.02% for the quarter ended September 30, 2017 and 0.40% for the nine months ended September 30, 2017.   

CREDIT QUALITY

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

	September 30,				June 30,				Increase
Non-PCI Credit Quality Metrics		2017				2017			(Decrease)
	(Dollars in thousands)
Nonaccrual loans and leases held for investment (1)	$	157,697			$	172,576			$	(14,879	)
Classified loans and leases held for investment (1)		344,777				339,977				4,800
Performing troubled debt restructured loans
held for investment		56,552				55,910				642
Allowance for credit losses		173,579				159,142				14,437
Net charge-offs (for the quarter)		1,063				20,947				(19,884	)
Provision for credit losses (for the quarter)		15,500				12,500				3,000
Allowance for credit losses to loans and leases
held for investment		1.11	%			1.02	%
Allowance for credit losses to nonaccrual loans
and leases held for investment		110.1	%			92.2	%
Nonaccrual loans and leases held for investment
to loans and leases held for investment		1.00	%			1.11	%
Nonperforming assets to loans and leases
held for investment and foreclosed assets		1.08	%			1.20	%
Classified loans and leases held for investment
to loans and leases held for investment		2.20	%			2.19	%
(1) Excludes loans held for sale carried at lower of cost or fair value at June 30, 2017.

The following table presents Non-PCI 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:

	Non-PCI Nonaccrual Loans and Leases										Non-PCI Accruing and
	September 30, 2017					June 30, 2017					30-89 Days Past Due
			% of					% of			September 30,			June 30,
			Loan					Loan				2017			2017
	Amount		Category			Amount		Category			Amount			Amount
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	63,096	1.5	%		$	65,599	1.5	%		$	1,446		$	3,734
Residential		3,186	0.2	%			5,229	0.3	%			282			46
Total real estate mortgage		66,282	1.1	%			70,828	1.2	%			1,728			3,780
Real estate construction and land:
Commercial		-	0.0	%			-	0.0	%			-			-
Residential		-	0.0	%			-	0.0	%			-			-
Total real estate
construction and land		-	0.0	%			-	0.0	%			-			-
Commercial:
Cash flow		33,514	1.2	%			43,169	1.5	%			72			201
Asset-based		3,977	0.2	%			1,718	0.1	%			-			-
Venture capital		22,686	1.2	%			25,278	1.3	%			2,720			23,171
Equipment finance		30,942	5.2	%			31,111	5.1	%			-			-
Total commercial		91,119	1.2	%			101,276	1.3	%			2,792			23,372
Consumer		296	0.1	%			472	0.1	%			286			-
Total held for investment (1)	$	157,697	1.0	%		$	172,576	1.1	%		$	4,806		$	27,152
(1) Excludes loans held for sale carried at lower of cost or fair value at June 30, 2017.

The following table presents nonperforming assets as of the dates indicated:

	September 30,				June 30,				Increase
Nonperforming Assets		2017				2017			(Decrease)
	(Dollars in thousands)
Nonaccrual Non-PCI loans and leases
held for investment (1)	$	157,697			$	172,576			$	(14,879	)
Nonaccrual PCI loans held for investment		1,761				1,980				(219	)
Total nonaccrual loans and leases		159,458				174,556				(15,098	)
Foreclosed assets, net		11,630				13,278				(1,648	)
Total nonperforming assets	$	171,088			$	187,834			$	(16,746	)
Nonaccrual loans and leases held for investment
to loans and leases held for investment		1.01	%			1.12	%
Nonperforming assets to loans and leases
held for investment and foreclosed assets		1.09	%			1.20	%
(1) Excludes loans held for sale carried at lower of cost or fair value at June 30, 2017.

CU BANCORP MERGER ANNOUNCEMENT

On April 6, 2017, PacWest announced the signing of a definitive agreement and plan of merger (the “Agreement”) whereby PacWest will acquire CU Bancorp (“CUB”) in a transaction valued at approximately $705 million as of the announcement date. 

CUB, headquartered in Los Angeles, California, is the parent of California United Bank (“CU Bank”), a California state-chartered non-member bank, with approximately $3.0 billion in assets and nine branches located in Los Angeles, Orange, Ventura, and San Bernardino counties at June 30, 2017. In connection with the acquisition, CU Bank will be merged into Pacific Western Bank, the principal operating subsidiary of PacWest.

The acquisition, which has been approved by the PacWest and CUB boards of directors and bank regulatory authorities, is expected to close on October 20, 2017.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $22 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. We provide commercial banking services, including real estate, construction, and commercial loans, and comprehensive deposit and treasury management services to small and medium-sized businesses.  We offer additional products and services through our CapitalSource and Square 1 Bank divisions. Our CapitalSource Division provides cash flow, asset-based, equipment and real estate loans and treasury management services to established middle market businesses on a national basis.  Our Square 1 Bank Division offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovation 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 release contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results and metrics and including statements about our expectations regarding our pending merger between the Company and CUB. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. These risks and uncertainties include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; the impact of changes in interest rates or levels of market activity, especially on our loan and investment portfolios; deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business (including the levels of IPOs and M&A activities); changes in credit quality and the effect of credit quality on our provision for loan and lease losses and allowance for loan and leases losses; our ability to attract deposits and other sources of funding or liquidity; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; the Company’s ability to complete the pending CUB acquisition, or any future acquisition, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected timeframes or at all; and our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including the Annual Report on Form 10-K for the year ended December 31, 2016, and particularly the discussion of risk factors within that document.

All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (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
	September 30,				June 30,				December 31,
		2017				2017				2016
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	147,579			$	180,330			$	337,965
Interest-earning deposits in financial institutions		122,439				107,150				81,705
Total cash and cash equivalents		270,018				287,480				419,670
Securities available-for-sale, at estimated fair value		3,532,230				3,474,560				3,223,830
Federal Home Loan Bank stock, at cost		17,250				22,059				21,870
Total investment securities		3,549,480				3,496,619				3,245,700
Loans held for sale		-				175,158				-
Non-PCI loans and leases		15,693,776				15,536,735				15,412,092
PCI loans		62,509				72,445				108,445
Total gross loans and leases held for investment		15,756,285				15,609,180				15,520,537
Deferred fees, net		(65,768	)			(65,723	)			(64,583	)
Total loans and leases held for investment,
net of deferred fees		15,690,517				15,543,457				15,455,954
Allowance for loan and lease losses		(159,606	)			(145,958	)			(157,238	)
Total loans and leases held for investment, net		15,530,911				15,397,499				15,298,716
Equipment leased to others under operating leases		233,866				203,212				229,905
Premises and equipment, net		28,910				29,108				38,594
Foreclosed assets, net		11,630				13,278				12,976
Deferred tax asset, net		65,321				70,354				94,112
Goodwill		2,173,949				2,173,949				2,173,949
Core deposit and customer
relationship intangibles, net		27,188				30,237				36,366
Other assets		351,659				369,983				319,779
Total assets	$	22,242,932			$	22,246,877			$	21,869,767
LIABILITIES:
Noninterest-bearing deposits	$	6,911,874			$	6,701,039			$	6,659,016
Interest-bearing deposits		9,861,371				10,173,938				9,211,595
Total deposits		16,773,245				16,874,977				15,870,611
Borrowings		250,399				217,454				905,812
Subordinated debentures		448,126				445,743				440,744
Accrued interest payable and other liabilities		160,494				148,798				173,545
Total liabilities		17,632,264				17,686,972				17,390,712
STOCKHOLDERS' EQUITY (1)		4,610,668				4,559,905				4,479,055
Total liabilities and stockholders’ equity	$	22,242,932			$	22,246,877			$	21,869,767
Book value per share	$	37.96			$	37.55			$	36.93
Tangible book value per share (2)	$	19.84			$	19.40			$	18.71
Shares outstanding		121,449,794				121,448,321				121,283,669
(1) Includes net unrealized gain on securities
available-for-sale, net	$	33,613			$	29,729			$	5,982
(2) Non-GAAP measure.

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
		2017				2017				2016				2017				2016
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	235,666			$	234,618			$	225,370			$	694,462			$	686,071
Investment securities		24,762				24,689				22,187				72,490				67,154
Deposits in financial institutions		538				237				298				967				914
Total interest income		260,966				259,544				247,855				767,919				754,139
Interest expense:
Deposits		13,071				10,205				7,247				31,653				24,143
Borrowings		188				1,066				695				2,272				1,628
Subordinated debentures		6,017				5,800				5,278				17,379				15,382
Total interest expense		19,276				17,071				13,220				51,304				41,153
Net interest income		241,690				242,473				234,635				716,615				712,986
Provision for credit losses		15,119				11,499				8,471				51,346				42,514
Net interest income after provision
for credit losses		226,571				230,974				226,164				665,269				670,472
Noninterest income:
Service charges on deposit accounts		3,465				3,510				3,488				10,733				10,977
Other commissions and fees		9,944				10,583				12,528				30,917				35,090
Leased equipment income		8,332				11,635				8,538				29,442				25,305
Gain on sale of loans and leases		2,848				649				157				4,209				790
Gain on sale of securities		1,236				1,651				382				2,788				8,970
FDIC loss sharing expense, net		-				-				-				-				(8,917	)
Other income		5,557				7,254				1,827				23,689				11,365
Total noninterest income		31,382				35,282				26,920				101,778				83,580
Noninterest expense:
Compensation		64,413				65,288				62,661				194,581				185,900
Occupancy		12,729				11,811				12,010				36,148				36,835
Data processing		6,459				6,337				6,234				19,811				17,782
Other professional services		4,213				3,976				4,625				11,567				11,598
Insurance and assessments		4,702				4,856				4,324				14,349				14,240
Intangible asset amortization		3,049				3,065				4,224				9,178				13,341
Leased equipment depreciation		4,862				5,232				5,298				15,719				15,608
Foreclosed assets expense (income), net		2,191				(157	)			(248	)			2,177				(812	)
Acquisition, integration and
reorganization costs		1,450				1,700				-				3,650				200
Loan expense		3,421				3,884				1,931				10,692				6,231
Other expense		11,053				11,715				9,651				34,921				30,556
Total noninterest expense		118,542				117,707				110,710				352,793				331,479
Earnings before income taxes		139,411				148,549				142,374				414,254				422,573
Income tax expense		(37,945	)			(54,902	)			(48,479	)			(140,473	)			(156,054	)
Net earnings	$	101,466			$	93,647			$	93,895			$	273,781			$	266,519
Basic and diluted earnings per share	$	0.84			$	0.77			$	0.77			$	2.26			$	2.19

PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
		2017				2017				2016				2017				2016
	(In thousands, except per share data)
Basic Earnings Per Share:
Net earnings	$	101,466			$	93,647			$	93,895			$	273,781			$	266,519
Less: earnings allocated to unvested
restricted stock (1)		(1,149	)			(1,080	)			(1,048	)			(3,239	)			(2,983	)
Net earnings allocated to common
shares	$	100,317			$	92,567			$	92,847			$	270,542			$	263,536
Weighted-average basic shares and
unvested restricted stock outstanding		121,447				121,422				121,818				121,405				121,739
Less: weighted-average unvested
restricted stock outstanding		(1,394	)			(1,455	)			(1,401	)			(1,450	)			(1,425	)
Weighted-average basic shares
outstanding		120,053				119,967				120,417				119,955				120,314
Basic earnings per share	$	0.84			$	0.77			$	0.77			$	2.26			$	2.19
Diluted Earnings Per Share:
Net earnings allocated to common
shares	$	100,317			$	92,567			$	92,847			$	270,542			$	263,536
Weighted-average basic shares
outstanding		120,053				119,967				120,417				119,955				120,314
Diluted earnings per share	$	0.84			$	0.77			$	0.77			$	2.26			$	2.19
(1) Represents cash dividends paid to holders of unvested stock, net of forfeitures, plus
undistributed earnings amounts available to holders of unvested restricted stock, if any.

PACWEST BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
	Three Months Ended
	September 30, 2017							June 30, 2017							September 30, 2016
			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:
PCI loans	$	60,126	$	3,308	21.83	%		$	68,759	$	4,643	27.08	%		$	117,781	$	5,868	19.82	%
Non-PCI loans and leases		15,514,904		232,510	5.95	%			15,429,162		229,975	5.98	%			14,417,170		219,502	6.06	%
Total loans and leases (1)		15,575,030		235,818	6.01	%			15,497,921		234,618	6.07	%			14,534,951		225,370	6.17	%
Investment securities (2)		3,510,956		29,495	3.33	%			3,436,785		29,538	3.45	%			3,338,209		27,025	3.22	%
Deposits in financial
institutions		171,455		538	1.24	%			96,087		237	0.99	%			238,425		298	0.50	%
Total interest-earning
assets		19,257,441		265,851	5.48	%			19,030,793		264,393	5.57	%			18,111,585		252,693	5.55	%
Other assets		2,880,433							2,905,809							2,960,468
Total assets	$	22,137,874						$	21,936,602						$	21,072,053
Liabilities and
Stockholders' Equity:
Interest checking	$	2,146,125		2,960	0.55	%		$	1,709,699		1,697	0.40	%		$	1,161,931		604	0.21	%
Money market		4,914,803		6,307	0.51	%			4,907,865		4,993	0.41	%			4,514,525		3,303	0.29	%
Savings		707,367		289	0.16	%			708,389		296	0.17	%			764,415		341	0.18	%
Time		2,256,259		3,515	0.62	%			2,366,399		3,219	0.55	%			2,666,434		2,999	0.45	%
Total interest-bearing
deposits		10,024,554		13,071	0.52	%			9,692,352		10,205	0.42	%			9,107,305		7,247	0.32	%
Borrowings		61,071		188	1.22	%			457,774		1,066	0.93	%			583,982		695	0.47	%
Subordinated debentures		447,012		6,017	5.34	%			443,756		5,800	5.24	%			439,970		5,278	4.77	%
Total interest-bearing
liabilities		10,532,637		19,276	0.73	%			10,593,882		17,071	0.65	%			10,131,257		13,220	0.52	%
Noninterest-bearing
demand deposits		6,858,816							6,646,349							6,274,294
Other liabilities		153,932							151,095							135,801
Total liabilities		17,545,385							17,391,326							16,541,352
Stockholders' equity		4,592,489							4,545,276							4,530,701
Total liabilities and
stockholders' equity	$	22,137,874						$	21,936,602						$	21,072,053
Net interest income (3)			$	246,575						$	247,322						$	239,473
Net interest spread (3)					4.75	%						4.92	%						5.03	%
Net interest margin (3)					5.08	%						5.21	%						5.26	%
Total deposits (4)	$	16,883,370	$	13,071	0.31	%		$	16,338,701	$	10,205	0.25	%		$	15,381,599	$	7,247	0.19	%
Funding sources (5)	$	17,391,453	$	19,276	0.44	%		$	17,240,231	$	17,071	0.40	%		$	16,405,551	$	13,220	0.32	%
(1) Starting with the third quarter of 2017, includes tax-equivalent adjustments related to tax-exempt interest on loans.
(2) Includes tax-equivalent adjustments of $4.7 million, $4.8 million, and $4.8 million for the three months ended September 30, 2017, June 30, 2017,
and September 30, 2016 related to tax-exempt income on municipal securities.  The federal statutory tax rate utilized was 35% for the periods.
(3) Tax equivalent.
(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 deposits divided by average total deposits.
(5) Funding sources is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated
as annualized total interest expense divided by average funding sources.

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER BALANCE SHEET
	September 30,				June 30,				March 31,				December 31,				September 30,
		2017				2017				2017				2016				2016
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	147,579			$	180,330			$	184,608			$	337,965			$	286,371
Interest-earning deposits in financial
institutions		122,439				107,150				111,892				81,705				253,994
Total cash and cash equivalents		270,018				287,480				296,500				419,670				540,365
Securities available-for-sale		3,532,230				3,474,560				3,336,992				3,223,830				3,341,335
Federal Home Loan Bank stock		17,250				22,059				17,901				21,870				19,386
Total investment securities		3,549,480				3,496,619				3,354,893				3,245,700				3,360,721
Loans held for sale		-				175,158				-				-				-
Non-PCI loans and leases		15,693,776				15,536,735				15,526,518				15,412,092				14,686,206
PCI loans		62,509				72,445				96,353				108,445				120,221
Total gross loans and leases
held for investment		15,756,285				15,609,180				15,622,871				15,520,537				14,806,427
Deferred fees, net		(65,768	)			(65,723	)			(66,182	)			(64,583	)			(63,581	)
Total loans and leases held for
investment, net of deferred fees		15,690,517				15,543,457				15,556,689				15,455,954				14,742,846
Allowance for loan and lease losses		(159,606	)			(145,958	)			(161,307	)			(157,238	)			(147,976	)
Total loans and leases held for
investment, net		15,530,911				15,397,499				15,395,382				15,298,716				14,594,870
Equipment leased to others under
operating leases		233,866				203,212				224,580				229,905				198,931
Premises and equipment, net		28,910				29,108				28,908				38,594				38,977
Foreclosed assets, net		11,630				13,278				12,842				12,976				15,113
Deferred tax asset, net		65,321				70,354				88,765				94,112				27,073
Goodwill		2,173,949				2,173,949				2,173,949				2,173,949				2,173,949
Core deposit and customer
relationship intangibles, net		27,188				30,237				33,302				36,366				39,542
Other assets		351,659				369,983				318,133				319,779				325,750
Total assets	$	22,242,932			$	22,246,877			$	21,927,254			$	21,869,767			$	21,315,291
LIABILITIES:
Noninterest-bearing deposits	$	6,911,874			$	6,701,039			$	6,789,808			$	6,659,016			$	6,521,946
Interest-bearing deposits		9,861,371				10,173,938				9,541,200				9,211,595				9,123,722
Total deposits		16,773,245				16,874,977				16,331,008				15,870,611				15,645,668
Borrowings		250,399				217,454				460,609				905,812				541,011
Subordinated debentures		448,126				445,743				442,516				440,744				441,112
Accrued interest payable and other
liabilities		160,494				148,798				185,015				173,545				144,905
Total liabilities		17,632,264				17,686,972				17,419,148				17,390,712				16,772,696
STOCKHOLDERS' EQUITY (1)		4,610,668				4,559,905				4,508,106				4,479,055				4,542,595
Total liabilities and stockholders’
equity	$	22,242,932			$	22,246,877			$	21,927,254			$	21,869,767			$	21,315,291
Book value per share	$	37.96			$	37.55			$	37.13			$	36.93			$	37.29
Tangible book value per share (2)	$	19.84			$	19.40			$	18.95			$	18.71			$	19.12
Shares outstanding		121,449,794				121,448,321				121,408,133				121,283,669				121,817,524
(1) Includes net unrealized gain on
securities available-for-sale, net	$	33,613			$	29,729			$	12,718			$	5,982			$	72,073
(2) Non-GAAP measure.

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER STATEMENT OF EARNINGS
	Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
		2017				2017				2017				2016				2016
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	235,666			$	234,618			$	224,178			$	238,223			$	225,370
Investment securities		24,762				24,689				23,039				23,403				22,187
Deposits in financial institutions		538				237				192				147				298
Total interest income		260,966				259,544				247,409				261,773				247,855
Interest expense:
Deposits		13,071				10,205				8,377				7,369				7,247
Borrowings		188				1,066				1,018				631				695
Subordinated debentures		6,017				5,800				5,562				5,468				5,278
Total interest expense		19,276				17,071				14,957				13,468				13,220
Net interest income		241,690				242,473				232,452				248,305				234,635
Provision for credit losses		15,119				11,499				24,728				23,215				8,471
Net interest income after provision
for credit losses		226,571				230,974				207,724				225,090				226,164
Noninterest income:
Service charges on deposit accounts		3,465				3,510				3,758				3,557				3,488
Other commissions and fees		9,944				10,583				10,390				12,036				12,528
Leased equipment income		8,332				11,635				9,475				8,614				8,538
Gain on sale of loans and leases		2,848				649				712				119				157
Gain (loss) on sale of securities		1,236				1,651				(99	)			515				382
FDIC loss sharing expense, net		-				-				-				-				-
Other income		5,557				7,254				10,878				4,054				1,827
Total noninterest income		31,382				35,282				35,114				28,895				26,920
Noninterest expense:
Compensation		64,413				65,288				64,880				66,013				62,661
Occupancy		12,729				11,811				11,608				12,076				12,010
Data processing		6,459				6,337				7,015				6,574				6,234
Other professional services		4,213				3,976				3,378				4,880				4,625
Insurance and assessments		4,702				4,856				4,791				4,124				4,324
Intangible asset amortization		3,049				3,065				3,064				3,176				4,224
Leased equipment depreciation		4,862				5,232				5,625				5,291				5,298
Foreclosed assets expense (income), net		2,191				(157	)			143				2,693				(248	)
Acquisition, integration and
reorganization costs		1,450				1,700				500				-				-
Loan expense		3,421				3,884				3,387				3,140				1,931
Other expense		11,053				11,715				12,153				10,655				9,651
Total noninterest expense		118,542				117,707				116,544				118,622				110,710
Earnings before income taxes		139,411				148,549				126,294				135,363				142,374
Income tax expense		(37,945	)			(54,902	)			(47,626	)			(49,716	)			(48,479	)
Net earnings	$	101,466			$	93,647			$	78,668			$	85,647			$	93,895
Basic and diluted earnings per share	$	0.84			$	0.77			$	0.65			$	0.71			$	0.77

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
	At or For the Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
		2017				2017				2017				2016				2016
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)		1.82	%			1.71	%			1.47	%			1.59	%			1.77	%
Return on average equity (1)		8.77	%			8.26	%			7.08	%			7.57	%			8.24	%
Return on average tangible equity (1)(2)		16.85	%			16.06	%			13.90	%			14.88	%			16.15	%
Yield on average loans and leases (1)		6.01	%			6.07	%			5.94	%			6.31	%			6.17	%
Yield on average interest-earning
assets (1)(3)		5.48	%			5.57	%			5.48	%			5.76	%			5.55	%
Cost of average total deposits (1)		0.31	%			0.25	%			0.21	%			0.19	%			0.19	%
Cost of average time deposits (1)		0.62	%			0.55	%			0.45	%			0.40	%			0.45	%
Cost of average interest-bearing
liabilities (1)		0.73	%			0.65	%			0.59	%			0.52	%			0.52	%
Cost of average funding sources (1)		0.44	%			0.40	%			0.36	%			0.32	%			0.32	%
Net interest spread (1)(3)		4.75	%			4.92	%			4.89	%			5.24	%			5.03	%
Net interest margin (1)(3)		5.08	%			5.21	%			5.16	%			5.47	%			5.26	%
Efficiency ratio		40.4	%			40.3	%			41.4	%			40.1	%			40.1	%
Noninterest expense as a percentage
of average assets (1)		2.15	%			2.15	%			2.18	%			2.20	%			2.09	%
Average Balances:
Loans and leases, net of deferred fees	$	15,575,030			$	15,497,921			$	15,297,044			$	15,008,268			$	14,534,951
Interest-earning assets		19,257,441				19,030,793				18,655,243				18,413,189				18,111,585
Total assets		22,137,874				21,936,602				21,645,534				21,427,950				21,072,053
Noninterest-bearing deposits		6,858,816				6,646,349				6,595,346				6,496,221				6,274,294
Interest-bearing deposits		10,024,554				9,692,352				9,330,235				9,327,080				9,107,305
Total deposits		16,883,370				16,338,701				15,925,581				15,823,301				15,381,599
Borrowings and subordinated
debentures		508,083				901,530				1,038,424				946,474				1,023,952
Interest-bearing liabilities		10,532,637				10,593,882				10,368,659				10,273,554				10,131,257
Funding sources		17,391,453				17,240,231				16,964,005				16,769,775				16,405,551
Stockholders' equity		4,592,489				4,545,276				4,503,675				4,501,948				4,530,701
(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
	September 30,				June 30,				March 31,				December 31,				September 30,
		2017				2017				2017				2016				2016
	(Dollars in thousands)
Non-PCI Credit Quality:
Allowance for credit losses to loans
and leases held for investment		1.11	%			1.02	%			1.08	%			1.05	%			1.05	%
Allowance for credit losses to
nonaccrual loans and leases held
for investment		110.1	%			92.2	%			96.9	%			94.5	%			90.1	%
Nonaccrual loans and leases held for
investment to loans and leases held
for investment		1.00	%			1.11	%			1.11	%			1.11	%			1.16	%
Nonperforming assets to loans and
leases held for investment and
foreclosed assets		1.08	%			1.20	%			1.20	%			1.19	%			1.27	%
Nonperforming assets to total assets		0.76	%			0.84	%			0.85	%			0.84	%			0.87	%
Trailing twelve month net charge-offs
to average loans and leases
held for investment		0.35	%			0.37	%			0.24	%			0.15	%			0.04	%
PacWest Bancorp Consolidated
Capital:
Tier 1 leverage ratio (1)		12.02	%			11.90	%			11.87	%			11.91	%			12.13	%
Common equity tier 1 capital ratio (1)		12.52	%			12.28	%			12.31	%			12.31	%			12.83	%
Tier 1 capital ratio (1)		12.52	%			12.28	%			12.31	%			12.31	%			12.83	%
Total capital ratio (1)		15.74	%			15.42	%			15.56	%			15.56	%			16.18	%
Risk-weighted assets (1)	$	19,086,798			$	19,084,823			$	18,732,723			$	18,568,622			$	17,713,506
Equity to assets ratio		20.73	%			20.50	%			20.56	%			20.48	%			21.31	%
Tangible common equity ratio (2)		12.02	%			11.75	%			11.67	%			11.54	%			12.19	%
Book value per share	$	37.96			$	37.55			$	37.13			$	36.93			$	37.29
Tangible book value per share (2)	$	19.84			$	19.40			$	18.95			$	18.71			$	19.12
Pacific Western Bank Capital:
Tier 1 leverage ratio (1)		11.46	%			11.41	%			11.36	%			11.40	%			11.54	%
Common equity tier 1 capital ratio (1)		11.95	%			11.79	%			11.79	%			11.78	%			12.21	%
Tier 1 capital ratio (1)		11.95	%			11.79	%			11.79	%			11.78	%			12.21	%
Total capital ratio (1)		12.89	%			12.66	%			12.74	%			12.72	%			13.15	%
Equity to assets ratio		20.22	%			20.07	%			20.11	%			20.02	%			20.77	%
Tangible common equity ratio (2)		11.45	%			11.27	%			11.16	%			11.02	%			11.56	%
(1) Capital information for September 30, 2017 is preliminary.
(2) Non-GAAP measure.

GAAP TO NON-GAAP RECONCILIATION

This press release contains certain non-GAAP financial disclosures for: (1) return on average tangible equity, (2) tangible common equity ratio, and (3) tangible book value per 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 return on average tangible equity, tangible common equity ratio, and tangible book value per share is prevalent among banking regulators, investors and analysts.  Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) return on average equity, (2) equity to assets ratio, and (3) book value per share.   

The reconciliations for the following GAAP financial measures to the non-GAAP financial measures are presented below: (1) return on average equity to return on average tangible equity, (2) equity to assets ratio to tangible common equity ratio, and (3) book value per share to tangible book value per share.

PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
Return on Average Tangible Equity			2017				2017				2016				2017				2016
		(Dollars in thousands)
Net earnings		$	101,466			$	93,647			$	93,895			$	273,781			$	266,519
Average stockholders' equity		$	4,592,489			$	4,545,276			$	4,530,701			$	4,547,472			$	4,484,468
Less:	Average intangible assets		2,202,922				2,205,814				2,217,564				2,205,927				2,222,346
Average tangible common equity		$	2,389,567			$	2,339,462			$	2,313,137			$	2,341,545			$	2,262,122
Return on average equity (1)			8.77	%			8.26	%			8.24	%			8.05	%			7.94	%
Return on average tangible equity (2)			16.85	%			16.06	%			16.15	%			15.63	%			15.74	%
(1) Annualized net earnings divided by average stockholders' equity.
(2) Annualized net earnings divided by average tangible common equity.

PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
Tangible Common Equity Ratio/	September 30,				June 30,				March 31,				December 31,				September 30,
Tangible Book Value Per Share		2017				2017				2017				2016				2016
	(Dollars in thousands, except per share data)
PacWest Bancorp Consolidated:
Stockholders' equity	$	4,610,668			$	4,559,905			$	4,508,106			$	4,479,055			$	4,542,595
Less: Intangible assets		2,201,137				2,204,186				2,207,251				2,210,315				2,213,491
Tangible common equity	$	2,409,531			$	2,355,719			$	2,300,855			$	2,268,740			$	2,329,104
Total assets	$	22,242,932			$	22,246,877			$	21,927,254			$	21,869,767			$	21,315,291
Less: Intangible assets		2,201,137				2,204,186				2,207,251				2,210,315				2,213,491
Tangible assets	$	20,041,795			$	20,042,691			$	19,720,003			$	19,659,452			$	19,101,800
Equity to assets ratio		20.73	%			20.50	%			20.56	%			20.48	%			21.31	%
Tangible common equity ratio (1)		12.02	%			11.75	%			11.67	%			11.54	%			12.19	%
Book value per share	$	37.96			$	37.55			$	37.13			$	36.93			$	37.29
Tangible book value per share (2)	$	19.84			$	19.40			$	18.95			$	18.71			$	19.12
Shares outstanding		121,449,794				121,448,321				121,408,133				121,283,669				121,817,524
Pacific Western Bank:
Stockholder's equity	$	4,494,876			$	4,460,911			$	4,405,770			$	4,374,478			$	4,416,623
Less: Intangible assets		2,201,137				2,204,186				2,207,251				2,210,315				2,213,491
Tangible common equity	$	2,293,739			$	2,256,725			$	2,198,519			$	2,164,163			$	2,203,132
Total assets	$	22,225,420			$	22,223,320			$	21,910,720			$	21,848,644			$	21,266,705
Less: Intangible assets		2,201,137				2,204,186				2,207,251				2,210,315				2,213,491
Tangible assets	$	20,024,283			$	20,019,134			$	19,703,469			$	19,638,329			$	19,053,214
Equity to assets ratio		20.22	%			20.07	%			20.11	%			20.02	%			20.77	%
Tangible common equity ratio (1)		11.45	%			11.27	%			11.16	%			11.02	%			11.56	%
(1) Tangible common equity divided by tangible assets.
(2) Tangible common equity divided by shares outstanding.

 

Contact:
                    Donald D. Destino	
                    Executive Vice President
                    Corporate Development and Investor Relations	
                    Phone: 310-887-8521