Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest
event reported) October 24, 2023

PacWest Bancorp

(Exact name of registrant as specified in its charter)

Delaware	001-36408	33-0885320
(State of	(Commission File Number)	(IRS Employer
Incorporation)		Identification No.)

9701 Wilshire Blvd., Suite 700, Beverly Hills, California 90212

(Address of principal executive offices and zip code)

(310) 887-8500

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Securities registered pursuant to
Section 12(b) of the Act:

Common Stock, par value $0.01 per share	PACW	The Nasdaq Stock Market, LLC

Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series A	PACWP	The Nasdaq Stock Market, LLC
(Title of Each Class)	(Trading Symbol)	(Name of Exchange on Which Registered)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.*

On October 24, 2023, PacWest Bancorp (the “Company”) announced its results of operations and financial condition for the three and nine months ended September 30, 2023. The press release announcing the financial results for the three and nine months ended September 30, 2023 is furnished as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits.

Exhibit
Number	Description


99.1	Press release dated October 24, 2023 announcing PacWest’s results of operations and financial condition for the three and nine months ended September 30, 2023.
104	Cover page interactive data file (embedded within the Inline XBRL document)

*The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of PacWest Bancorp under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PacWest Bancorp

	By:	/s/ Kevin L. Thompson
	Name:	Kevin L. Thompson
	Title:	Executive Vice President
		Chief Financial Officer

Date: October 24, 2023

Exhibit 99.1

October 24, 2023

PACWEST BANCORP ANNOUNCES RESULTS FOR THE THIRD QUARTER 2023

FOR IMMEDIATE RELEASE

THIRD Quarter 2023 Highlights

●

Net loss available to common stockholders of $33.3 million, or a loss of $0.28 per diluted share

●

Pending merger with Banc of California, Inc. is on track with all regulatory approvals received and is expected to close on or about November 30, 2023

●

The Bank put in place a large liquidity base to cautiously navigate the end of the first quarter of 2023 through the third quarter of 2023. The excess borrowings, including $1.4 billion of brokered deposits (at a rate of 5.19%) and the $1.3 billion repurchase agreement facility (at a rate of 8.50%), are expected to roll off in the fourth quarter of 2023. We believe this will accelerate the Bank’s return to more normalized funding levels and improved profitability, with significantly lower interest and FDIC insurance expenses

●

We continue to execute on our profitability initiatives by optimizing resources, contracts, facilities, and processes, the benefits of which we anticipate realizing in the quarters ahead. Third quarter noninterest expense had notable movement, with compensation expense down 14% over the prior quarter to $71.6 million, with a higher than usual FDIC insurance expense that we expect will normalize over time, and with $9.9 million of non-recurring merger-related costs

●

Adjusted loss available to common stockholders of $37.3 million and adjusted diluted loss per common share of $0.31, which exclude the effect of $9.9 million of merger-related costs related to the pending merger with Banc of California, Inc. and a $14.5 million credit related to a legal settlement gain (see GAAP to non-GAAP reconciliation financial tables at the end of this press release)

●

Allowance for loan and lease losses ratio increased from 0.98% to 1.01%

●

Third quarter results were marked by enhanced capital and liquidity

●

All capital ratios increased from June 30, 2023, with CET1 increasing from 11.16% to 11.23%

●

Immediately available liquidity (on-balance sheet liquidity and unused borrowing capacity) of $16.7 billion, with $5.9 billion of available cash on hand at September 30, 2023

●

Community Banking deposits grew by 2% in the quarter as a result of strategic efforts to attract and retain customers

●

Brokered deposits continue to mature, with balances decreasing by $1.9 billion in the quarter. $1.4 billion more are scheduled to mature in the fourth quarter of 2023

●

The repurchase agreement facility interest expense was $35 million in the quarter and the facility will be repaid in December 2023

CEO COMMENTARY

Paul Taylor, President and CEO, commented, “The integration planning for our merger with Banc of California, Inc. continues to progress very well. We expect the closing of the merger to occur on or about November 30, 2023, subject to receipt of stockholder approvals. We all look forward to completing the merger so we can begin to execute on a successful business plan for the combined company that we expect will drive significant value for PacWest’s stockholders, customers, communities, and employees.”

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Mr. Taylor concluded, “As we work toward the completion of the merger, our primary strategic focus is adding new deposit customers and continuing to provide outstanding customer service to our existing customers. Our credit quality continues to be stable. Our funding profile improved in the third quarter as we strategically reduced higher-cost brokered deposits and we are pleased to see growth in the Community Bank return. We strategically put in place a high-cost liquidity buffer over the past few quarters to safely navigate the turmoil in the regional banking market. We created this buffer by selling loans and adding customer deposits and wholesale funding. We expect our profitability to improve as we continue to wind down wholesale funding, benefit from lower FDIC insurance expense, and execute on our profitability initiatives.”

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FINANCIAL HIGHLIGHTS

	At or For the									At or For the
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			Increase			September 30,						Increase
Financial Highlights	2023			2023			(Decrease)			2023			2022			(Decrease)
	(Dollars in thousands, except per share amounts)
Net (loss) earnings available to common stockholders	$	(33,291	)	$	(207,361	)	$	174,070		$	(1,446,023	)	$	364,712		$	(1,810,735	)
Diluted (loss) earnings per common share	$	(0.28	)	$	(1.75	)	$	1.47		$	(12.23	)	$	3.04		$	(15.27	)
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") (1)	$	(26,566	)	$	(262,443	)	$	235,877		$	(169,613	)	$	514,917		$	(684,530	)
Return on average assets		(0.24	)%		(1.84	)%		1.60			(4.60	)%		1.24	%		(5.84	)
PPNR return on average assets (1)		(0.28	)%		(2.45	)%		2.17			(0.55	)%		1.71	%		(2.26	)
Return on average tangible common equity (1)		(6.33	)%		(37.62	)%		31.29			(8.49	)%		22.90	%		(31.39	)

Yield on average loans and leases (tax equivalent)		5.54	%		6.08	%		(0.54	)		5.95	%		4.82	%		1.13
Cost of average total deposits		2.98	%		2.62	%		0.36			2.50	%		0.32	%		2.18
Net interest margin ("NIM") (tax equivalent)		1.45	%		1.82	%		(0.37	)		2.07	%		3.52	%		(1.45	)
Efficiency ratio		108.5	%		527.0	%		(418.5	)		123.5	%		50.2	%		73.3

Total assets	$	36,877,833		$	38,337,250		$	(1,459,417	)	$	36,877,833		$	41,404,592		$	(4,526,759	)
Loans and leases held for investment, net of deferred fees	$	21,920,946		$	22,258,210		$	(337,264	)	$	21,920,946		$	27,660,041		$	(5,739,095	)
Noninterest-bearing demand deposits	$	5,579,033		$	6,055,358		$	(476,325	)	$	5,579,033		$	12,775,756		$	(7,196,723	)
Interest-bearing deposits	$	21,019,648		$	21,841,725		$	(822,077	)	$	21,019,648		$	21,420,116		$	(400,468	)
Total deposits	$	26,598,681		$	27,897,083		$	(1,298,402	)	$	26,598,681		$	34,195,872		$	(7,597,191	)

As percentage of total deposits:
Noninterest-bearing demand deposits		21	%		22	%		(1	)		21	%		37	%		(16	)
Interest-bearing deposits		79	%		78	%		1			79	%		63	%		16

Equity to assets ratio		6.51	%		6.61	%		(0.10	)		6.51	%		9.36	%		(2.85	)
Common equity tier 1 capital ratio		11.23	%		11.16	%		0.07			11.23	%		8.56	%		2.67
Tier 1 capital ratio		13.84	%		13.70	%		0.14			13.84	%		10.46	%		3.38
Total capital ratio		17.83	%		17.61	%		0.22			17.83	%		13.43	%		4.40
Tangible common equity ratio (1)		5.09	%		5.24	%		(0.15	)		5.09	%		4.85	%		0.24
Tangible book value per common share (1)	$	15.64		$	16.71		$	(1.07	)	$	15.64		$	16.11		$	(0.47	)

(1) Non-GAAP measure.

Page 3

INCOME STATEMENT HIGHLIGHTS

NET INTEREST INCOME

Net interest income decreased by $55.3 million to $130.7 million for the third quarter of 2023 compared to $186.1 million for the second quarter of 2023 due mainly to lower interest income on loans and leases and higher interest expense on deposits, offset partially by lower interest expense on borrowings. Interest income on loans and leases decreased by $98.6 million in the third quarter of 2023 due to a $4.8 billion decrease in the average balance of loans and leases and a 54 basis points decrease in the tax equivalent yield on loans and leases compared to the second quarter of 2023. The tax equivalent yield on loans and leases was 5.54% in the third quarter of 2023 compared to 6.08% in the second quarter of 2023. The decrease in the tax equivalent yield on loans and leases was due primarily to lower levels of higher-yielding Civic and construction loans. Interest expense on deposits increased by $27.2 million in the third quarter of 2023 due mainly to increased market rates that contributed to a 36 basis points increase in the cost of total deposits. Interest expense on borrowings decreased by $66.7 million due mainly to a $5.1 billion decrease in the average balance. Interest expense on the repurchase agreement facility is at 8.50% and totaled $35 million in the third quarter. This interest expense will decrease in the fourth quarter, as we intend to pay off this borrowing in mid-December with existing balance sheet liquidity, and be eliminated by the first quarter of 2024.

The tax equivalent NIM was 1.45% for the third quarter of 2023 compared to 1.82% for the second quarter of 2023. The decrease in the NIM was due mainly to the lower yield on loans and leases and a higher cost of total deposits.

The cost of total deposits was 2.98% for the third quarter of 2023 compared to 2.62% for the second quarter of 2023 due mainly to higher market interest rates.

PROVISION FOR CREDIT LOSSES

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

	Three Months Ended
	September 30,			June 30,			Increase
Provision for Credit Losses	2023			2023			(Decrease)
	(In thousands)
Addition to allowance for loan and lease losses	$	8,000		$	40,000		$	(32,000	)
Reduction in reserve for unfunded loan commitments		(8,000	)		(38,000	)		30,000
Total loan-related provision		-			2,000			(2,000	)
Addition to allowance for held-to-maturity securities		-			-			-
Total provision for credit losses	$	-		$	2,000		$	(2,000	)

There was no provision for credit losses for the third quarter of 2023 compared to $2.0 million for the second quarter of 2023. The provision for the third quarter of 2023 reflected an addition to the allowance for loan and lease losses, primarily due to an increase in qualitative reserves for loans secured by office properties, which was offset by a reduction in the reserve for unfunded commitments due to lower unfunded commitments. The provision for the second quarter of 2023 reflected the impact of an updated economic forecast, higher net charge-offs and higher reserves for downgraded loans largely offset by lower reserves needed for lower loan and unfunded commitment balances.

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Noninterest Income

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

	Three Months Ended
	September 30,			June 30,			Increase
Noninterest Income	2023			2023			(Decrease)
	(In thousands)
Service charges on deposit accounts	$	4,018		$	4,315		$	(297	)
Other commissions and fees		7,641			11,241			(3,600	)
Leased equipment income		14,554			22,387			(7,833	)
Loss on sale of loans and leases		(1,901	)		(158,881	)		156,980
Dividends and gains on equity investments		3,837			2,658			1,179
Warrant loss		(88	)		(124	)		36
LOCOM HFS adjustment		307			(11,943	)		12,250
Other income		15,440			2,265			13,175
Total noninterest income (loss)	$	43,808		$	(128,082	)	$	171,890

Noninterest income increased by $171.9 million to an income of $43.8 million for the third quarter of 2023 compared to a loss of $128.1 million for the second quarter of 2023 due primarily to a $157.0 million decrease in the loss on sale of loans and leases, the $12.3 million increase in the lower of cost or market held for sale (“LOCOM HFS”) adjustment and a $13.2 million increase in other income, partially offset by a $7.8 million decrease in leased equipment income and a $3.6 million decrease in other commissions and fees. The decrease in the loss on sale of loans and leases was due to the $158.9 million of losses recorded in the second quarter of 2023 related to the sale of three significant non-core loan portfolios. The increase in the LOCOM HFS adjustment was due to the negative $11.9 million LOCOM adjustment made in the second quarter of 2023 related to the $478.1 million of loans held for sale at June 30, 2023. The increase in other income is primarily due to a $14.5 million recovery of a prior year legal settlement. The decrease in leased equipment income was due primarily to lower early lease termination gains and rental income compared to the second quarter of 2023. The decrease in other commissions and fees was due primarily to lower loan-related fee income and lower customer success fees.

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Noninterest Expense

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

	Three Months Ended
	September 30,			June 30,		Increase
Noninterest Expense	2023			2023		(Decrease)
	(In thousands)
Compensation	$	71,642		$	82,881	$	(11,239	)
Occupancy		15,293			15,383		(90	)
Data processing		11,104			10,963		141
Other professional services		5,597			9,973		(4,376	)
Insurance and assessments		38,298			25,635		12,663
Intangible asset amortization		2,389			2,389		-
Leased equipment depreciation		8,333			9,088		(755	)
Foreclosed assets (income) expense, net		(609	)		2		(611	)
Customer related expense		26,971			27,302		(331	)
Loan expense		4,243			5,245		(1,002	)
Other		7,917			119,182		(111,265	)
Acquisition, integration and reorganization costs		9,925			12,394		(2,469	)
Total noninterest expense	$	201,103		$	320,437	$	(119,334	)

Noninterest expense decreased by $119.3 million to $201.1 million in the third quarter of 2023 compared to $320.4 million in the second quarter of 2023 due primarily to a decrease of $111.3 million in other expense and a decrease of $11.2 million in compensation expense, offset partially by a $12.7 million increase in insurance and assessments expense. The decrease in other expense was due mainly to $106.8 million of unfunded commitments fair value loss adjustments in the second quarter of 2023. The decrease in compensation expense was due mostly to lower salary expense, stock compensation, and commissions expense. The increase in insurance and assessments was due primarily to higher FDIC assessment expense attributable to an increased assessment rate due to lower core earnings and lower core deposits.

Income Taxes

The effective income tax rate was 12.1% for the third quarter of 2023 compared to 25.3% for the second quarter of 2023. The decrease from the second quarter of 2023 was due primarily to higher disallowed FDIC assessment expense in the third quarter of 2023.

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BALANCE SHEET HIGHLIGHTS

Deposits and Client Investment Funds

The following tables present the composition of our deposit portfolio as of the dates indicated:

	September 30, 2023					June 30, 2023					September 30, 2022
			% of					% of					% of
Deposits By Account Type	Balance		Total			Balance		Total			Balance		Total
	(Dollars in thousands)
Noninterest-bearing	$	5,579,033		21	%	$	6,055,358		22	%	$	12,775,756		37	%
Interest-bearing:
Transaction (NOW)		7,038,808		27	%		7,112,807		26	%		7,070,021		21	%
Money market		5,424,347		20	%		5,678,323		20	%		10,440,202		30	%
Savings		1,441,700		5	%		897,277		3	%		640,875		2	%
Time deposits (1)		7,114,793		27	%		8,153,318		29	%		3,269,018		10	%
Total interest-bearing		21,019,648		79	%		21,841,725		78	%		21,420,116		63	%
Total deposits	$	26,598,681		100	%	$	27,897,083		100	%	$	34,195,872		100	%

(1) Includes time deposits over $250,000 of $979.1 million, $853.4 million, and $1.0 billion at September 30, 2023, June 30, 2023,and September 30, 2022, respectively.

	September 30, 2023					June 30, 2023					September 30, 2022
			% of					% of					% of
Deposits By Customer Type	Balance		Total			Balance		Total			Balance		Total
	(Dollars in thousands)
Noninterest-bearing	$	5,579,033		21	%	$	6,055,358		22	%	$	12,775,756		37	%
Interest-bearing:
Consumer and commercial:
Reciprocal		7,839,052		30	%		7,935,479		29	%		3,916,768		11	%
Non-reciprocal		7,442,635		27	%		6,257,971		22	%		13,645,111		41	%
Brokered		5,737,961		22	%		7,648,275		27	%		3,858,237		11	%
Total interest-bearing		21,019,648		79	%		21,841,725		78	%		21,420,116		63	%
Total deposits	$	26,598,681		100	%	$	27,897,083		100	%	$	34,195,872		100	%

Total deposits decreased by $1.3 billion or 4.7% in the third quarter of 2023 due primarily to the $1.9 billion strategic reduction of higher-cost brokered deposits, partially offset by growth in customer deposits. At September 30, 2023, noninterest-bearing deposits totaled $5.6 billion or 21% of total deposits and interest-bearing deposits totaled $21.0 billion or 79% of total deposits.

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

	September 30, 2023					June 30, 2023
			% of					% of			Increase
Deposits By Division	Balance		Total			Balance		Total			(Decrease)
	(Dollars in thousands)
Community Banking	$	14,631,092		55	%	$	14,353,851		51	%	$	277,241
Venture Banking		5,662,435		21	%		5,764,220		21	%		(101,785	)
Brokered/Other		6,305,154		24	%		7,779,012		28	%		(1,473,858	)
Total deposits	$	26,598,681		100	%	$	27,897,083		100	%	$	(1,298,402	)

As of September 30, 2023, FDIC-insured deposits represented approximately 81% of total deposits and FDIC-insured venture-specific deposits accounted for approximately 90% of total venture-specific deposits. The Bank’s spot deposit rate increased from 2.71% at June 30, 2023 to 2.97% at September 30, 2023.

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In addition to deposit products, we also offer alternative, non-depository cash investment options for select clients. These alternative options include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds decreased from $0.8 billion as of June 30, 2023 to $0.7 billion at September 30, 2023, of which $0.3 billion was managed by PWAM.

BORROWINGS

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

	September 30, 2023					June 30, 2023
			Weighted					Weighted
			Average					Average			Increase
Borrowing Type	Balance		Rate			Balance		Rate			(Decrease)
	(Dollars in thousands)
FHLB secured advances	$	-		-		$	-		-		$	-
Bank Term Funding Program		4,910,000		4.38	%		4,910,000		4.38	%		-
Repurchase agreement (1)		1,260,743		8.50	%		1,324,273		8.50	%		(63,530	)
Credit-linked notes		123,782		16.00	%		123,065		15.77	%		717
Total borrowings	$	6,294,525		5.43	%	$	6,357,338		5.46	%	$	(62,813	)

(1) Balance is net of unamortized issuance costs of $10.9 million and $4.8 million of accrued exit fees. Rate calculation does not include the effects of issuance costs and exit fees.

The $62.8 million decrease in borrowings in the third quarter of 2023 was due mainly to paydowns of the repurchase agreement facility. Available borrowing capacity was approximately $10.8 billion at September 30, 2023.

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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						Nine Months Ended
Roll Forward of Loans and Leases Held	September 30,			June 30,			September 30,
for Investment, Net of Deferred Fees	2023			2023			2023
	(Dollars in thousands)
Balance, beginning of period	$	22,258,210		$	25,672,381		$	28,609,129
Additions:
Production		81,402			189,201			739,274
Disbursements		1,495,471			1,143,347			4,261,716
Total production and disbursements		1,576,873			1,332,548			5,000,990
Reductions:
Payoffs		(1,245,502	)		(942,962	)		(3,210,116	)
Paydowns		(663,939	)		(817,033	)		(2,446,509	)
Total payoffs and paydowns		(1,909,441	)		(1,759,995	)		(5,656,625	)
Sales		(15,617	)		(3,038,672	)		(3,286,087	)
Transfers to foreclosed assets		(6,725	)		(6,657	)		(15,950	)
Charge-offs		(6,695	)		(31,708	)		(48,800	)
Transfers to loans held for sale		-			(280,062	)		(3,076,427	)
Total reductions		(1,938,478	)		(5,117,094	)		(12,083,889	)
Transfers from loans held for sale		24,341			370,375			394,716
Net (decrease) increase		(337,264	)		(3,414,171	)		(6,688,183	)
Balance, end of period	$	21,920,946		$	22,258,210		$	21,920,946

Weighted average rate on production (1)		7.48	%		7.64	%		8.13	%

(1) The weighted average rate on production presents contractual rates on a tax equivalent basis  and excludes amortized fees. Amortized fees added approximately 15 basis points to loan yields in 2023.

Loans and leases held for investment, net of deferred fees, decreased by $337.3 million, or 1.5% in the third quarter of 2023 to $21.9 billion at September 30, 2023. The overall decrease in the loans and leases balance for the third quarter of 2023 was due primarily to a decrease in commercial loans led by decreases in venture capital loans and asset-based loans.

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

	September 30, 2023					June 30, 2023					September 30, 2022
			% of					% of					% of
Loan and Lease Portfolio	Balance		Total			Balance		Total			Balance		Total
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	3,526,308		16	%	$	3,610,320		16	%	$	3,770,706		14	%
Multi-family		5,279,659		24	%		5,304,544		24	%		5,510,876		20	%
Other residential		5,228,524		24	%		5,373,178		24	%		5,883,182		21	%
Total real estate mortgage		14,034,491		64	%		14,288,042		64	%		15,164,764		55	%
Real estate construction and land:
Commercial		465,266		2	%		415,997		2	%		843,086		3	%
Residential		2,272,271		10	%		2,049,526		9	%		2,916,415		10	%
Total real estate construction and land		2,737,537		12	%		2,465,523		11	%		3,759,501		13	%
Total real estate		16,772,028		76	%		16,753,565		75	%		18,924,265		68	%
Commercial:
Asset-based		2,287,893		10	%		2,357,098		11	%		5,154,654		19	%
Venture capital		1,464,160		7	%		1,723,476		8	%		2,001,086		7	%
Other commercial		1,002,377		5	%		1,014,212		4	%		1,115,442		4	%
Total commercial		4,754,430		22	%		5,094,786		23	%		8,271,182		30	%
Consumer		394,488		2	%		409,859		2	%		464,594		2	%
Total loans and leases held for investment, net of deferred fees	$	21,920,946		100	%	$	22,258,210		100	%	$	27,660,041		100	%

Total unfunded loan commitments	$	5,289,221				$	5,845,375				$	11,227,234

Allowance for Credit Losses ON LOANS AND LEASES

The following tables present roll forwards of the allowance for credit losses on loans and leases for the periods indicated:

	Three Months Ended September 30, 2023
Allowance for Credit	Allowance for			Reserve for			Total
Losses on Loans and	Loan and			Unfunded Loan			Allowance for
Leases Rollforward	Lease Losses			Commitments			Credit Losses
	(In thousands)
Beginning balance	$	219,234		$	37,571		$	256,805
Charge-offs		(6,695	)		-			(6,695	)
Recoveries		1,758			-			1,758
Net charge-offs		(4,937	)		-			(4,937	)
Provision		8,000			(8,000	)		-
Ending balance	$	222,297		$	29,571		$	251,868

Page 10

	Three Months Ended June 30, 2023
Allowance for Credit	Allowance for			Reserve for			Total
Losses on Loans and	Loan and			Unfunded Loan			Allowance for
Leases Rollforward	Lease Losses			Commitments			Credit Losses
	(In thousands)
Beginning balance	$	210,055		$	75,571		$	285,626
Civic loan sale charge-offs		(22,446	)		-			(22,446	)
Other charge-offs		(9,262	)		-			(9,262	)
Total charge-offs		(31,708	)		-			(31,708	)
Recoveries		887			-			887
Net charge-offs		(30,821	)		-			(30,821	)
Provision		40,000			(38,000	)		2,000
Ending balance	$	219,234		$	37,571		$	256,805

The following table presents allowance for credit losses information on loans and leases as of and for the dates and periods indicated:

Allowance for Credit Losses	September 30,			June 30,			Increase
on Loans and Leases	2023			2023			(Decrease)
	(Dollars in thousands)
Allowance for loan and lease losses	$	222,297		$	219,234		$	3,063
Reserve for unfunded loan commitments		29,571			37,571			(8,000	)
Allowance for credit losses	$	251,868		$	256,805		$	(4,937	)

Provision for credit losses (for the quarter)	$	-		$	2,000		$	(2,000	)
Net charge-offs (for the quarter)	$	4,937		$	30,821		$	(25,884	)
Net charge-offs to average loans and leases (for the quarter)		0.09	%		0.46	%
Allowance for loan and lease losses to loans and leases held for investment		1.01	%		0.98	%
Allowance for credit losses to loans and leases held for investment		1.15	%		1.15	%

The allowance for credit losses decreased by $4.9 million in the third quarter of 2023 to $251.9 million at September 30, 2023. This decrease was attributable mainly to lower reserves needed due to the decrease in loans and leases held for investment and unfunded loan commitments.

Net charge-offs over the trailing twelve months were $47.5 million, which resulted in net charge-offs to average loans and leases over the trailing twelve months of 0.19%.

Page 11

CREDIT QUALITY

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

	September 30,			June 30,			Increase
Credit Quality Metrics	2023			2023			(Decrease)
	(Dollars in thousands)
Nonperforming Assets:
Nonaccrual loans and leases held for investment (1)	$	125,396		$	104,886		$	20,510
Accruing loans contractually past due 90 days or more		-			-			-
Foreclosed assets, net		6,829			8,426			(1,597	)
Total nonperforming assets ("NPAs")	$	132,225		$	113,312		$	18,913

Nonaccrual loans and leases held for investment to loans and leases held for investment		0.57	%		0.47	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.60	%		0.51	%
Allowance for credit losses to nonaccrual loans and leases held for investment		200.9	%		244.8	%

Loan and Lease Credit Risk Ratings:
Pass	$	21,349,720		$	21,679,908		$	(330,188	)
Special mention		360,131			366,368			(6,237	)
Classified		211,095			211,934			(839	)
Total loans and leases held for investment, net of deferred fees	$	21,920,946		$	22,258,210		$	(337,264	)

Special mention loans and leases held for investment to loans and leases held for investment		1.64	%		1.65	%
Classified loans and leases held for investment to loans and leases held for investment		0.96	%		0.95	%

(1) Nonaccrual loans include SBA guaranteed amounts of $13.7 million at September 30, 2023 and $14.8 million at June 30, 2023.

Nonaccrual loans and leases increased by $20.5 million in the third quarter of 2023 to $125.4 million at September 30, 2023, due primarily to an increase in nonaccrual Civic loans. The increase is primarily due to a sale of non-performing Civic loans in the second quarter which made the balance at June 30, 2023, lower than normal.

Page 12

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

	September 30, 2023				June 30, 2023				Increase (Decrease)
			Accruing				Accruing					Accruing
			and 30-89				and 30-89					and 30-89
			Days Past				Days Past					Days Past
	Nonaccrual		Due		Nonaccrual		Due		Nonaccrual			Due
	(In thousands)
Real estate mortgage:
Commercial	$	31,465	$	13	$	37,191	$	-	$	(5,726	)	$	13
Multi-family		-		-		-		-		-			-
Other residential		88,329		35,349		63,626		45,805		24,703			(10,456	)
Total real estate mortgage		119,794		35,362		100,817		45,805		18,977			(10,443	)
Real estate construction and land:
Commercial		-		-		-		-		-			-
Residential		-		-		-		-		-			-
Total real estate construction and land		-		-		-		-		-			-
Commercial:
Asset-based		363		-		385		-		(22	)		-
Venture capital		2,001		-		-		1,845		2,001			(1,845	)
Other commercial		3,031		411		3,479		147		(448	)		264
Total commercial		5,395		411		3,864		1,992		1,531			(1,581	)
Consumer		207		2,254		205		2,024		2			230
Total held for investment	$	125,396	$	38,027	$	104,886	$	49,821	$	20,510		$	(11,794	)

Loans and leases accruing and 30-89 days past due generally fluctuate from period to period. The $11.8 million decrease to $38.0 million in the third quarter of 2023 was due mainly to a decrease in Civic delinquent loans.

CAPITAL

The following table presents capital ratios as of the dates indicated:

	September 30,			June 30,			September 30,
	2023			2023			2022
PacWest Bancorp Consolidated:
Common equity tier 1 capital ratio (1)		11.23	%		11.16	%		8.56	%
Tier 1 capital ratio (1)		13.84	%		13.70	%		10.46	%
Total capital ratio (1)		17.83	%		17.61	%		13.43	%
Tier 1 leverage capital ratio (1)		8.65	%		7.76	%		8.63	%
Risk-weighted assets (1) (in thousands)	$	24,127,271		$	24,771,837		$	33,042,173
Tangible common equity ratio (2)		5.09	%		5.24	%		4.85	%

(1) Capital information for September 30, 2023 is preliminary.

(2) Non-GAAP measure.

Page 13

PACWEST BANCORP

PacWest is a bank holding company headquartered in Los Angeles, California, with an executive office in Denver, Colorado, with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). Pacific Western Bank is a relationship-based community bank focused on providing business banking and treasury management services to small, middle-market, and venture-backed businesses. The Bank offers a broad range of loan and lease and deposit products and services through full-service branches throughout California and in Durham, North Carolina and Denver, Colorado, and loan production offices around the country. For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.

Page 14

FORWARD-LOOKING STATEMENTS

This communication contains certain forward-looking information about PacWest (the “Company”) that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward-looking statements. Such statements often use words such as “anticipates,” “targets,” “expects,” “estimates,” “intends,” “plans,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” These forward-looking statements include, but are not limited to, statements regarding the proposed transaction between PacWest and Banc of California, Inc. (“Banc of California”) including statements as to the expected timing, completion and effects of the proposed transaction. Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of PacWest’s and Banc of California’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond the control of PacWest and Banc of California, which may cause actual results, performance, or achievements to differ materially from those expressed in them. Continued deterioration in general business, economic, and political conditions, geopolitical tensions, uncertainty in U.S. fiscal monetary policy, including the interest rate policies of the Federal Reserve Board, and volatility and disruptions in credit and capital markets could lead to a tightening of credit and an increase in credit losses, adversely affect PacWest’s revenues and the values of our assets and liabilities, increase stock price volatility, and adversely impact our ability to raise capital. In addition, PacWest and its results could be adversely affected by changes in interest rates, continued high inflation, and unemployment rates, our ability to attract and retain deposits and other sources of funding and liquidity particularly in a rising or high interest rate environment, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, the safety of deposits, and depositor behavior, the quality and composition of our deposits, deterioration in the credit quality of our loan portfolio or in the value of the collateral securing those loans, especially the risks associated with concentrations in real estate related loans, deterioration in the value of our investment securities as a result of rising interest rates or otherwise, our ability to successfully execute on our strategic plan and digital and innovation initiatives, the effectiveness of our risk management framework and quantitative models, legal and regulatory developments, the ability to complete, or any delays in completing, the proposed transaction between us and Banc of California, any failure to realize the anticipated benefits of the transaction when expected or at all, certain restrictions during the pendency of the proposed transaction that may impact our ability to pursue certain business opportunities or strategic transactions, the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management’s attention from ongoing business operations and opportunities, and potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the transaction and integration of the companies. We also caution that the amount and timing of any future common stock dividends will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions. Actual results may differ materially from those set forth or implied in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by PacWest with the U.S. Securities and Exchange Commission (the “SEC”).

All forward-looking statements in this communication are based on information available at the time the statement is made. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Page 15

No Offer or Solicitation

This communication is not a proxy statement or solicitation or a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of PacWest, Banc of California, or the combined company, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law.

Additional Information and Where to Find It

This communication includes information relating to the proposed transaction between PacWest and Banc of California and the proposed investment in Banc of California by Warburg Pincus LLC and Centerbridge Partners, L.P. Banc of California filed a registration statement on Form S-4 with the SEC on August 28, 2023 (as amended on September 29, 2023, and further amended on October 16, 2023, and October 19, 2023) that the SEC declared effective on October 20, 2023, and in connection with PacWest’s and Banc of California’s solicitation of proxies for the vote by PacWest’s stockholders and Banc of California’s stockholders with respect to the proposed transaction, on October 23, 2023, PacWest and Banc of California commenced mailing of a definitive joint proxy statement/prospectus to holders of PacWest’s common stock and Banc of California’s common stock who, as of the applicable record date, are entitled to vote on the matters being considered at the PacWest stockholder meeting and at the Banc of California stockholder meeting, as applicable. PacWest or Banc of California may also file other documents with the SEC regarding the proposed transaction.

Before making any voting or investment decision, investors and security holders are urged to carefully read the entire registration statement and THE DEFINITIVE joint proxy statement/prospectus (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO), and any other relevant documents filed with the SEC, as well as any amendments or supplements to SUCH documents, CAREFULLY AND IN THEIR ENTIRETY because they will contain important information about the proposed transaction.

Investors and security holders are able to obtain free copies of the registration statement, the definitive joint proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by PacWest or Banc of California through the website maintained by the SEC at www.sec.gov.

The documents filed by PacWest or Banc of California with the SEC also may be obtained free of charge at PacWest’s or Banc of California’s website at www.pacwestbancorp.com, under the heading “SEC Filings,” or https://investors.bancofcal.com, under the heading “Financials and Filings,” respectively, or upon written request to PacWest, Attention: Investor Relations, 9701 Wilshire Boulevard, Suite 700, Beverly Hills, CA 90212 or Banc of California, Attention: Investor Relations, 3 MacArthur Place, Santa Ana, CA 92707, respectively.

Page 16

Participants in Solicitation

PacWest and Banc of California and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from PacWest’s stockholders or Banc of California’s stockholders in connection with the proposed transaction under the rules of the SEC. PacWest’s stockholders, Banc of California’s stockholders, and other interested persons are able to obtain, without charge, more detailed information regarding the names, affiliations and interests of directors and executive officers of PacWest and Banc of California in Banc of California’s registration statement on Form S-4, as well other documents filed by PacWest or Banc of California from time to time with the SEC. Other information regarding persons who may, under the rules of the SEC, be deemed the participants in the proxy solicitation of PacWest’s or Banc of California’s stockholders in connection with the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, is included in the definitive joint proxy statement/prospectus filed with the SEC and may be contained in other relevant materials to be filed with the SEC regarding the proposed transaction. You may obtain free copies of these documents at the SEC’s website at www.sec.gov. Copies of documents filed with the SEC by PacWest or Banc of California will also be available free of charge from PacWest or Banc of California using the contact information above.

Page 17

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

	September 30,			June 30,			September 30,
	2023			2023			2022
	(Dollars in thousands, except per share amounts)
ASSETS:
Cash and due from banks	$	182,261		$	208,300		$	216,436
Interest-earning deposits in financial institutions		5,887,406			6,489,847			2,244,272
Total cash and cash equivalents		6,069,667			6,698,147			2,460,708

Securities available-for-sale, at estimated fair value		4,487,172			4,708,519			5,891,328
Securities held-to-maturity, at amortized cost, net of allowance for credit losses		2,282,586			2,278,202			2,264,601
Federal Home Loan Bank stock, at cost		17,250			17,250			36,990
Total investment securities		6,787,008			7,003,971			8,192,919

Loans held for sale		188,866			478,146			15,534

Gross loans and leases held for investment		21,969,789			22,311,292			27,775,962
Deferred fees, net		(48,843	)		(53,082	)		(115,921	)
Total loans and leases held for investment, net of deferred fees		21,920,946			22,258,210			27,660,041
Allowance for loan and lease losses		(222,297	)		(219,234	)		(189,327	)
Total loans and leases held for investment, net		21,698,649			22,038,976			27,470,714

Equipment leased to others under operating leases		352,330			380,022			338,691
Premises and equipment, net		50,236			57,078			50,781
Foreclosed assets, net		6,829			8,426			2,967
Goodwill		-			-			1,405,736
Core deposit and customer relationship intangibles, net		24,192			26,581			34,010
Deferred tax asset, net		506,248			426,304			321,650
Other assets		1,193,808			1,219,599			1,110,882
Total assets	$	36,877,833		$	38,337,250		$	41,404,592

LIABILITIES:
Noninterest-bearing deposits	$	5,579,033		$	6,055,358		$	12,775,756
Interest-bearing deposits		21,019,648			21,841,725			21,420,116
Total deposits		26,598,681			27,897,083			34,195,872
Borrowings		6,294,525			6,357,338			1,864,815
Subordinated debt		870,896			870,378			863,379
Accrued interest payable and other liabilities		714,454			679,256			604,581
Total liabilities		34,478,556			35,804,055			37,528,647
STOCKHOLDERS' EQUITY (1)		2,399,277			2,533,195			3,875,945
Total liabilities and stockholders’ equity	$	36,877,833		$	38,337,250		$	41,404,592

Book value per common share	$	15.84		$	16.93		$	28.07
Tangible book value per common share (2)	$	15.64		$	16.71		$	16.11
Common shares outstanding		119,967,984			120,169,012			120,314,023

(1) Includes net unrealized loss on:
Securities available-for-sale, net	$	(691,557	)	$	(583,684	)	$	(637,346	)
Securities held to maturity	$	(187,275	)	$	(193,058	)	$	(210,868	)
(2) Non-GAAP measure.

Page 18

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2023			2023			2022			2023			2022

	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	310,392		$	408,972		$	346,550		$	1,150,049		$	907,595
Investment securities		45,326			44,153			53,135			133,716			159,459
Deposits in financial institutions		90,366			86,763			10,359			219,995			16,412
Total interest income		446,084			539,888			410,044			1,503,760			1,083,466

Interest expense:
Deposits		205,982			178,789			61,288			540,663			82,858
Borrowings		94,234			160,914			3,081			324,270			5,683
Subordinated debt		15,139			14,109			10,494			42,750			27,102
Total interest expense		315,355			353,812			74,863			907,683			115,643

Net interest income		130,729			186,076			335,181			596,077			967,823
Provision for credit losses		-			2,000			3,000			5,000			14,500
Net interest income after provision for credit losses		130,729			184,076			332,181			591,077			953,323

Noninterest income:
Service charges on deposit accounts		4,018			4,315			3,608			11,906			10,813
Other commissions and fees		7,641			11,241			10,034			29,226			32,427
Leased equipment income		14,554			22,387			12,835			50,798			38,264
(Loss) gain on sale of loans and leases		(1,901	)		(158,881	)		58			(157,820	)		130
Gain (loss) on sale of securities		-			-			86			-			(1,019	)
Dividends and gains (losses) on equity investments		3,837			2,658			3,228			7,593			(4,050	)
Warrant (loss) income		(88	)		(124	)		292			(545	)		2,536
LOCOM HFS adjustment		307			(11,943	)		-			(11,636	)		-
Other income		15,440			2,265			8,478			22,595			14,682
Total noninterest income (loss)		43,808			(128,082	)		38,619			(47,883	)		93,783

Noninterest expense:
Compensation		71,642			82,881			105,933			242,999			300,715
Occupancy		15,293			15,383			15,574			45,743			46,042
Data processing		11,104			10,963			9,568			33,005			28,455
Other professional services		5,597			9,973			10,674			21,643			23,354
Insurance and assessments		38,298			25,635			7,159			75,650			18,281
Intangible asset amortization		2,389			2,389			3,649			7,189			10,947
Leased equipment depreciation		8,333			9,088			8,908			26,796			27,031
Foreclosed assets (income) expense, net		(609	)		2			(248	)		(244	)		(3,629	)
Acquisition, integration and reorganization costs		9,925			12,394			-			30,833			-
Customer related expense		26,971			27,302			12,673			78,278			37,076
Loan expense		4,243			5,245			6,228			16,012			18,422
Goodwill impairment		-			-			-			1,376,736			-
Other expense		7,917			119,182			15,500			139,903			39,995
Total noninterest expense		201,103			320,437			195,618			2,094,543			546,689

(Loss) earnings before income taxes		(26,566	)		(264,443	)		175,182			(1,551,349	)		500,417
Income tax (benefit) expense		(3,222	)		(67,029	)		43,566			(135,167	)		126,313
Net (loss) earnings		(23,344	)		(197,414	)		131,616			(1,416,182	)		374,104
Preferred stock dividends		9,947			9,947			9,392			29,841			9,392
Net (loss) earnings available to common stockholders	$	(33,291	)	$	(207,361	)	$	122,224		$	(1,446,023	)	$	364,712

Basic and diluted (loss) earnings per common share	$	(0.28	)	$	(1.75	)	$	1.02		$	(12.23	)	$	3.04
Dividends declared and paid per common share	$	0.01		$	0.01		$	0.25		$	0.27		$	0.75

Page 19

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	September 30, 2023							June 30, 2023							September 30, 2022
			Interest		Average					Interest		Average					Interest		Average
	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Cost			Balance		Expense		Cost			Balance		Expense		Cost

	(Dollars in thousands)
Assets:
Loans and leases (1)(2)(3)	$	22,226,390	$	310,392		5.54	%	$	26,992,283	$	408,972		6.08	%	$	27,038,873	$	348,639		5.12	%
Investment securities (3)		6,919,948		45,326		2.60	%		7,183,986		44,153		2.47	%		8,803,349		54,423		2.45	%
Deposits in financial institutions		6,645,335		90,366		5.40	%		6,835,075		86,763		5.09	%		1,809,809		10,359		2.27	%
Total interest-earning assets (1)		35,791,673		446,084		4.94	%		41,011,344		539,888		5.28	%		37,652,031		413,421		4.36	%
Other assets		2,016,085							2,028,985							3,189,241
Total assets	$	37,807,758						$	43,040,329						$	40,841,272

Liabilities and Stockholders' Equity:
Interest checking	$	6,983,013		57,237		3.25	%	$	6,601,034		46,798		2.84	%	$	6,650,477		19,475		1.16	%
Money market		5,662,980		42,516		2.98	%		6,590,615		47,008		2.86	%		10,914,027		31,780		1.16	%
Savings		1,163,827		10,255		3.50	%		733,818		3,678		2.01	%		649,574		42		0.03	%
Time		7,801,880		95,974		4.88	%		7,492,094		81,305		4.35	%		3,000,187		9,991		1.32	%
Total interest-bearing deposits		21,611,700		205,982		3.78	%		21,417,561		178,789		3.35	%		21,214,265		61,288		1.15	%
Borrowings		6,325,537		94,234		5.91	%		11,439,742		160,914		5.64	%		505,482		3,081		2.42	%
Subordinated debt		870,968		15,139		6.90	%		869,419		14,109		6.51	%		863,719		10,494		4.82	%
Total interest-bearing liabilities		28,808,205		315,355		4.34	%		33,726,722		353,812		4.21	%		22,583,466		74,863		1.32	%
Noninterest-bearing demand deposits		5,817,488							5,968,625							13,653,177
Other liabilities		701,355							625,610							593,450
Total liabilities		35,327,048							40,320,957							36,830,093
Stockholders' equity		2,480,710							2,719,372							4,011,179
Total liabilities and stockholders' equity	$	37,807,758						$	43,040,329						$	40,841,272
Net interest income (1)			$	130,729						$	186,076						$	338,558
Net interest spread (1)						0.60	%						1.07	%						3.04	%
Net interest margin (1)						1.45	%						1.82	%						3.57	%

Total deposits (4)	$	27,429,188	$	205,982		2.98	%	$	27,386,186	$	178,789		2.62	%	$	34,867,442	$	61,288		0.70	%

(1) Tax equivalent.

(2) Includes net loan premium amortization of $1.7 million, $1.6 million, and $3.8 million for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.

(3) Includes tax-equivalent adjustments of $0.0 million, $0.0 million, and $2.1 million for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022 related to tax-exempt income on loans. Includes tax-equivalent adjustments of $0.0 million, $0.0 million, and $1.3 million for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022 related to tax-exempt income on investment securities. The federal statutory tax rate utilized was 21%.

(4) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits.The cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits.

Page 20

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	September 30,			June 30,			March 31,			December 31,			September 30,
	2023			2023			2023			2022			2022

	(Dollars in thousands, except per share amounts)
ASSETS:
Cash and due from banks	$	182,261		$	208,300		$	218,830		$	212,273		$	216,436
Interest-earning deposits in financial institutions		5,887,406			6,489,847			6,461,306			2,027,949			2,244,272
Total cash and cash equivalents		6,069,667			6,698,147			6,680,136			2,240,222			2,460,708

Securities available-for-sale		4,487,172			4,708,519			4,848,607			4,843,487			5,891,328
Securities held-to-maturity		2,282,586			2,278,202			2,273,650			2,269,135			2,264,601
Federal Home Loan Bank stock		17,250			17,250			147,150			34,290			36,990
Total investment securities		6,787,008			7,003,971			7,269,407			7,146,912			8,192,919

Loans held for sale		188,866			478,146			2,796,208			65,076			15,534

Gross loans and leases held for investment		21,969,789			22,311,292			25,770,912			28,726,016			27,775,962
Deferred fees, net		(48,843	)		(53,082	)		(98,531	)		(116,887	)		(115,921	)
Total loans and leases held for investment, net of deferred fees		21,920,946			22,258,210			25,672,381			28,609,129			27,660,041
Allowance for loan and lease losses		(222,297	)		(219,234	)		(210,055	)		(200,732	)		(189,327	)
Total loans and leases held for investment, net		21,698,649			22,038,976			25,462,326			28,408,397			27,470,714

Equipment leased to others under operating leases		352,330			380,022			399,972			404,245			338,691
Premises and equipment, net		50,236			57,078			60,358			54,315			50,781
Foreclosed assets, net		6,829			8,426			2,135			5,022			2,967
Goodwill		-			-			-			1,376,736			1,405,736
Core deposit and customer relationship intangibles, net		24,192			26,581			28,970			31,381			34,010
Deferred tax asset, net		506,248			426,304			342,557			281,848			321,650
Other assets		1,193,808			1,219,599			1,260,912			1,214,782			1,110,882
Total assets	$	36,877,833		$	38,337,250		$	44,302,981		$	41,228,936		$	41,404,592

LIABILITIES:
Noninterest-bearing deposits	$	5,579,033		$	6,055,358		$	7,030,759		$	11,212,357		$	12,775,756
Interest-bearing deposits		21,019,648			21,841,725			21,156,802			22,723,977			21,420,116
Total deposits		26,598,681			27,897,083			28,187,561			33,936,334			34,195,872
Borrowings		6,294,525			6,357,338			11,881,712			1,764,030			1,864,815
Subordinated debt		870,896			870,378			868,815			867,087			863,379
Accrued interest payable and other liabilities		714,454			679,256			593,416			710,954			604,581
Total liabilities		34,478,556			35,804,055			41,531,504			37,278,405			37,528,647
STOCKHOLDERS' EQUITY (1)		2,399,277			2,533,195			2,771,477			3,950,531			3,875,945
Total liabilities and stockholders’ equity	$	36,877,833		$	38,337,250		$	44,302,981		$	41,228,936		$	41,404,592

Book value per common share	$	15.84		$	16.93		$	18.90		$	28.71		$	28.07
Tangible book value per common share (2)	$	15.64		$	16.71		$	18.66		$	17.00		$	16.11
Common shares outstanding		119,967,984			120,169,012			120,244,214			120,222,057			120,314,023

(1) Includes net unrealized loss on:
Securities available-for-sale, net	$	(691,557	)	$	(583,684	)	$	(537,307	)	$	(586,450	)	$	(637,346	)
Securities held to maturity	$	(187,275	)	$	(193,058	)	$	(198,753	)	$	(204,453	)	$	(210,868	)
(2) Non-GAAP measure.

Page 21

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS (LOSS)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2023			2023			2023			2022			2022

	(In thousands, except per share amounts)
Interest income:
Loans and leases	$	310,392		$	408,972		$	430,685		$	404,985		$	346,550
Investment securities		45,326			44,153			44,237			50,292			53,135
Deposits in financial institutions		90,366			86,763			42,866			17,746			10,359
Total interest income		446,084			539,888			517,788			473,023			410,044

Interest expense:
Deposits		205,982			178,789			155,892			117,591			61,288
Borrowings		94,234			160,914			69,122			19,962			3,081
Subordinated debt		15,139			14,109			13,502			12,531			10,494
Total interest expense		315,355			353,812			238,516			150,084			74,863

Net interest income		130,729			186,076			279,272			322,939			335,181
Provision for credit losses		-			2,000			3,000			10,000			3,000
Net interest income after provision for credit losses		130,729			184,076			276,272			312,939			332,181

Noninterest income:
Service charges on deposit accounts		4,018			4,315			3,573			3,178			3,608
Other commissions and fees		7,641			11,241			10,344			11,208			10,034
Leased equipment income		14,554			22,387			13,857			12,322			12,835
(Loss) gain on sale of loans and leases		(1,901	)		(158,881	)		2,962			388			58
(Loss) gain on sale of securities		-			-			-			(49,302	)		86
Dividends and gains on equity investments		3,837			2,658			1,098			661			3,228
Warrant (loss) income		(88	)		(124	)		(333	)		(46	)		292
LOCOM HFS adjustment		307			(11,943	)		-			-			-
Other income		15,440			2,265			4,890			2,635			8,478
Total noninterest income (loss)		43,808			(128,082	)		36,391			(18,956	)		38,619

Noninterest expense:
Compensation		71,642			82,881			88,476			106,124			105,933
Occupancy		15,293			15,383			15,067			14,922			15,574
Data processing		11,104			10,963			10,938			9,722			9,568
Other professional services		5,597			9,973			6,073			6,924			10,674
Insurance and assessments		38,298			25,635			11,717			7,205			7,159
Intangible asset amortization		2,389			2,389			2,411			2,629			3,649
Leased equipment depreciation		8,333			9,088			9,375			8,627			8,908
Foreclosed assets (income) expense, net		(609	)		2			363			(108	)		(248	)
Acquisition, integration and reorganization costs		9,925			12,394			8,514			5,703			-
Customer related expense		26,971			27,302			24,005			18,197			12,673
Loan expense		4,243			5,245			6,524			6,150			6,228
Goodwill impairment		-			-			1,376,736			29,000			-
Other expense		7,917			119,182			12,804			11,737			15,500
Total noninterest expense		201,103			320,437			1,573,003			226,832			195,618

(Loss) earnings before income taxes		(26,566	)		(264,443	)		(1,260,340	)		67,151			175,182
Income tax (benefit) expense		(3,222	)		(67,029	)		(64,916	)		17,642			43,566
Net (loss) earnings		(23,344	)		(197,414	)		(1,195,424	)		49,509			131,616
Preferred stock dividends		9,947			9,947			9,947			9,947			9,392
Net (loss) earnings available to common stockholders	$	(33,291	)	$	(207,361	)	$	(1,205,371	)	$	39,562		$	122,224

Basic and diluted (loss) earnings per common share	$	(0.28	)	$	(1.75	)	$	(10.22	)	$	0.33		$	1.02
Dividends declared and paid per common share	$	0.01		$	0.01		$	0.25		$	0.25		$	0.25

Page 22

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,
	2023			2023			2023			2022			2022

	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)		(0.24	)%		(1.84	)%		(11.34	)%		0.48	%		1.28	%
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") return on average assets (1)(2)		(0.28	)%		(2.45	)%		1.13	%		1.02	%		1.73	%
Return on average equity (1)		(3.73	)%		(29.12	)%		(121.24	)%		5.04	%		13.02	%
Return on average tangible common equity (1)(2)		(6.33	)%		(37.62	)%		14.45	%		12.71	%		23.93	%
Efficiency ratio		108.5	%		527.0	%		58.2	%		53.3	%		51.0	%
Noninterest expense as a percentage of average assets (1)		2.11	%		2.99	%		14.92	%		2.19	%		1.90	%

Average Yields/Costs (1):
Yield on:
Average loans and leases (3)		5.54	%		6.08	%		6.14	%		5.73	%		5.12	%
Average investment securities (3)		2.60	%		2.47	%		2.49	%		2.57	%		2.45	%
Average interest-earning assets (3)		4.94	%		5.28	%		5.35	%		4.98	%		4.36	%
Cost of:
Average interest-bearing deposits		3.78	%		3.35	%		2.91	%		2.14	%		1.15	%
Average total deposits		2.98	%		2.62	%		1.98	%		1.37	%		0.70	%
Average interest-bearing liabilities		4.34	%		4.21	%		3.47	%		2.45	%		1.32	%
Net interest spread (3)		0.60	%		1.07	%		1.88	%		2.53	%		3.04	%
Net interest margin (3)		1.45	%		1.82	%		2.89	%		3.41	%		3.57	%

Average Balances:
Assets:
Loans and leases, net of deferred fees	$	22,226,390		$	26,992,283		$	28,583,265		$	28,192,953		$	27,038,873
Investment securities		6,919,948			7,183,986			7,191,362			7,824,915			8,803,349
Deposits in financial institutions		6,645,335			6,835,075			3,682,228			1,881,950			1,809,809
Interest-earning assets		35,791,673			41,011,344			39,456,855			37,899,818			37,652,031
Total assets		37,807,758			43,040,329			42,768,714			41,151,963			40,841,272
Liabilities:
Noninterest-bearing deposits		5,817,488			5,968,625			10,233,434			12,325,902			13,653,177
Interest-bearing deposits		21,611,700			21,417,561			21,742,403			21,760,402			21,214,265
Total deposits		27,429,188			27,386,186			31,975,837			34,086,304			34,867,442
Borrowings		6,325,537			11,439,742			5,289,429			1,675,738			505,482
Subordinated debt		870,968			869,419			867,637			864,581			863,719
Interest-bearing liabilities		28,808,205			33,726,722			27,899,469			24,300,721			22,583,466
Stockholders' equity		2,480,710			2,719,372			3,998,687			3,898,800			4,011,179

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent.

Page 23

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,
	2023			2023			2023			2022			2022

	(Dollars in thousands, except per share amounts)
Credit Quality Metrics for Loans and Leases Held for Investment:
Nonaccrual loans and leases	$	125,396		$	104,886		$	87,124		$	103,778		$	89,742
Nonperforming assets		132,225			113,312			89,259			108,800			92,709
Special mention loans and leases		360,131			366,368			580,153			566,259			463,994
Classified loans and leases		211,095			211,934			132,423			118,271			96,685
Allowance for loan and lease losses		222,297			219,234			210,055			200,732			189,327
Allowance for credit losses		251,868			256,805			285,626			291,803			284,398
For the quarter:
Provision for credit losses		-			2,000			3,000			10,000			3,000
Net charge-offs		4,937			30,821			9,177			2,595			2,378

Nonaccrual loans and leases to loans and leases		0.57	%		0.47	%		0.34	%		0.36	%		0.32	%
Nonperforming assets to loans and leases and foreclosed assets		0.60	%		0.51	%		0.35	%		0.38	%		0.34	%
Special mention loans and leases to loans and leases		1.64	%		1.65	%		2.26	%		1.98	%		1.68	%
Classified loans and leases to loans and leases		0.96	%		0.95	%		0.52	%		0.41	%		0.35	%
Allowance for loan and lease losses to loans and leases		1.01	%		0.98	%		0.82	%		0.70	%		0.68	%
Allowance for credit losses to loans and leases		1.15	%		1.15	%		1.11	%		1.02	%		1.03	%
Allowance for credit losses to nonaccrual loans and leases		200.86	%		244.84	%		327.84	%		281.18	%		316.91	%
Net charge-offs to average loans and leases		0.09	%		0.46	%		0.13	%		0.04	%		0.03	%
Trailing 12 months net charge-offs to average loans and leases		0.19	%		0.17	%		0.05	%		0.02	%		0.01	%

PacWest Bancorp Consolidated:
Common equity tier 1 capital ratio (1)		11.23	%		11.16	%		9.21	%		8.70	%		8.56	%
Tier 1 capital ratio (1)		13.84	%		13.70	%		11.15	%		10.61	%		10.46	%
Total capital ratio (1)		17.83	%		17.61	%		14.21	%		13.61	%		13.43	%
Tier 1 leverage capital ratio (1)		8.65	%		7.76	%		8.33	%		8.61	%		8.63	%
Risk-weighted assets (1)	$	24,127,271		$	24,771,837		$	32,507,454		$	33,030,960		$	33,042,173

Equity to assets ratio		6.51	%		6.61	%		6.26	%		9.58	%		9.36	%
Tangible common equity ratio (2)		5.09	%		5.24	%		5.07	%		5.13	%		4.85	%
Book value per common share	$	15.84		$	16.93		$	18.90		$	28.71		$	28.07
Tangible book value per common share (2)	$	15.64		$	16.71		$	18.66		$	17.00		$	16.11

Pacific Western Bank:
Common equity tier 1 capital ratio (1)		13.73	%		13.48	%		10.89	%		10.32	%		10.17	%
Tier 1 capital ratio (1)		13.73	%		13.48	%		10.89	%		10.32	%		10.17	%
Total capital ratio (1)		16.37	%		16.07	%		12.94	%		12.34	%		12.16	%
Tier 1 leverage capital ratio (1)		8.57	%		7.62	%		8.14	%		8.39	%		8.39	%

(1) Capital information for September 30, 2023 is preliminary.

(2) Non-GAAP measure.

Page 24

GAAP TO NON-GAAP RECONCILIATIONS

This press release contains certain non-GAAP financial disclosures for: (1) Pre-provision, pre-goodwill impairment, pre-tax net revenue (“PPNR”), (2) PPNR return on average assets (3) return on average tangible common equity, (4) tangible common equity ratio, and (5) tangible book value per common share. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. In particular, the use of PPNR, return on average tangible common equity, tangible common equity ratio, and tangible book value per common share is prevalent among banking regulators, investors, and analysts. Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures (or those calculated from GAAP measures) of: (1) net earnings, (2) return on average assets, (3) return on average equity, (4) equity to assets ratio, (5) book value per common share, and (6) efficiency ratio.

The Company recorded significant non-operating charges in the three months ended September 30, 2023, June 30, 2023, and March 31, 2023, and nine months ended September 30, 2023. Thus, to supplement information regarding the Company’s operational performance and to enhance investors’ overall understanding of such performance, this press release includes non-GAAP financial measures for (1) adjusted return on average tangible common equity, (2) adjusted earnings, (3) adjusted earnings per share, (4) adjusted return on average assets, and (5) adjusted efficiency ratio. These measures help the reader to compare the recent periods with the historical periods more readily. These non-GAAP financial measures should not be considered a substitute for financial measures presented in accordance with GAAP and may be different from the non-GAAP financial measures used by other companies.

The tables below present the reconciliations of these GAAP financial measures to the related non-GAAP financial measures:

	Three Months Ended									Nine Months Ended
PPNR and PPNR Return	September 30,			June 30,			September 30,			September 30,
on Average Assets	2023			2023			2022			2023			2022

	(Dollars in thousands)
Net (loss) earnings	$	(23,344	)	$	(197,414	)	$	131,616		$	(1,416,182	)	$	374,104

Net interest income	$	130,729		$	186,076		$	335,181		$	596,077		$	967,823
Add: Noninterest income (loss)		43,808			(128,082	)		38,619			(47,883	)		93,783
Less: Noninterest expense		(201,103	)		(320,437	)		(195,618	)		(2,094,543	)		(546,689	)
Add: Goodwill impairment		-			-			-			1,376,736			-
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR")	$	(26,566	)	$	(262,443	)	$	178,182		$	(169,613	)	$	514,917

Average assets	$	37,807,758		$	43,040,329		$	40,841,272		$	41,187,428		$	40,255,665

Return on average assets (1)		(0.24	)%		(1.84	)%		1.28	%		(4.60	)%		1.24	%
PPNR return on average assets (2)		(0.28	)%		(2.45	)%		1.73	%		(0.55	)%		1.71	%

(1)

Annualized net (loss) earnings divided by average assets.

(2)

Annualized PPNR divided by average assets.

Page 25

	Three Months Ended									Nine Months Ended
Return on Average	September 30,			June 30,			September 30,			September 30,
Tangible Common Equity	2023			2023			2022			2023			2022

	(Dollars in thousands)
Net (loss) earnings	$	(23,344	)	$	(197,414	)	$	131,616		$	(1,416,182	)	$	374,104

(Loss) earnings before income taxes	$	(26,566	)	$	(264,443	)	$	175,182		$	(1,551,349	)	$	500,417
Add: Goodwill impairment		-			-			-			1,376,736			-
Add: Intangible asset amortization		2,389			2,389			3,649			7,189			10,947
Adjusted (loss) earnings before income taxes		(24,177	)		(262,054	)		178,831			(167,424	)		511,364
Adjusted income tax expense (1)		(2,925	)		(66,300	)		44,529			(64,793	)		128,864
Adjusted net (loss) earnings		(21,252	)		(195,754	)		134,302			(102,631	)		382,500
Less: Preferred stock dividends		9,947			9,947			9,392			29,841			9,392
Adjusted net (loss) earnings available to common stockholders	$	(31,199	)	$	(205,701	)	$	124,910		$	(132,472	)	$	373,108

Average stockholders' equity	$	2,480,710		$	2,719,372		$	4,011,179		$	3,060,696		$	3,837,609
Less: Average intangible assets		25,499			27,824			1,441,689			476,721			1,445,332
Less: Average preferred stock		498,516			498,516			498,516			498,516			213,698
Average tangible common equity	$	1,956,695		$	2,193,032		$	2,070,974		$	2,085,459		$	2,178,579

Return on average equity (2)		(3.73	)%		(29.12	)%		13.02	%		(61.86	)%		13.03	%
Return on average tangible common equity (3)		(6.33	)%		(37.62	)%		23.93	%		(8.49	)%		22.90	%

(1)

Effective tax rates of 12.1%, 25.3%, and 24.9% used for three months ended September 30, 2023, June 30, 2023, and September 30, 2022. Adjusted effective tax rate of 38.7% used to normalize the effect of goodwill impairment for nine months ended September 30, 2023; effective tax rate of 25.2% used for nine months ended September 30, 2022.

(2)

Annualized net (loss) earnings divided by average stockholders' equity.

(3)

Annualized adjusted net (loss) earnings available to common stockholders divided by average tangible common equity.

Page 26

	Three Months Ended									Nine Months Ended
Adjusted Return on Average	September 30,			June 30,			September 30,			September 30,
Tangible Common Equity	2023			2023			2022			2023			2022

	(Dollars in thousands)
(Loss) earnings before income taxes	$	(26,566	)	$	(264,443	)	$	175,182		$	(1,551,349	)	$	500,417
Add: Goodwill impairment		-			-			-			1,376,736			-
Add: Intangible asset amortization		2,389			2,389			3,649			7,189			10,947
Add: Acquisition, integration, and reorganization costs		9,925			12,394			-			30,833			-
Less: Legal recovery		(14,500	)		-			-			(14,500	)		-
Add: Loan fair value loss adjustments		-			170,971			-			170,971			-
Add: Unfunded commitments fair value loss adjustments		-			106,767			-			106,767			-
Add: Civic loan sale charge-offs		-			22,446			-			22,446			-
Adjusted (loss) earnings before income taxes		(28,752	)		50,524			178,831			149,093			511,364
Adjusted income tax expense (1)		(3,479	)		12,783			44,529			57,699			128,864
Adjusted (loss) net earnings		(25,273	)		37,741			134,302			91,394			382,500
Less: Preferred stock dividends		9,947			9,947			9,392			29,841			9,392
Adjusted net (loss) earnings available to common stockholders	$	(35,220	)	$	27,794		$	124,910		$	61,553		$	373,108

Average stockholders' equity	$	2,480,710		$	2,719,372		$	4,011,179		$	3,060,696		$	3,837,609
Less: Average intangible assets		25,499			27,824			1,441,689			476,721			1,445,332
Less: Average preferred stock		498,516			498,516			498,516			498,516			213,698
Average tangible common equity	$	1,956,695		$	2,193,032		$	2,070,974		$	2,085,459		$	2,178,579

Adjusted return on average tangible common equity (2)		(7.14	)%		5.08	%		23.93	%		3.95	%		22.90	%

(1)

(2)

Annualized adjusted net (loss) earnings available to common stockholders divided by average tangible common equity.

Page 27

Tangible Common Equity Ratio/
Tangible Book Value Per	September 30,			June 30,			March 31,			December 31,			September 30,
Common Share	2023			2023			2023			2022			2022

		*(Dollars in thousands, except per share amounts)*
Stockholders' equity	$	2,399,277		$	2,533,195		$	2,771,477		$	3,950,531		$	3,875,945
Less: Preferred stock		498,516			498,516			498,516			498,516			498,516
Total common equity		1,900,761			2,034,679			2,272,961			3,452,015			3,377,429
Less: Intangible assets		24,192			26,581			28,970			1,408,117			1,439,746
Tangible common equity	$	1,876,569		$	2,008,098		$	2,243,991		$	2,043,898		$	1,937,683

Total assets	$	36,877,833		$	38,337,250		$	44,302,981		$	41,228,936		$	41,404,592
Less: Intangible assets		24,192			26,581			28,970			1,408,117			1,439,746
Tangible assets	$	36,853,641		$	38,310,669		$	44,274,011		$	39,820,819		$	39,964,846

Equity to assets ratio		6.51	%		6.61	%		6.26	%		9.58	%		9.36	%
Tangible common equity ratio (1)		5.09	%		5.24	%		5.07	%		5.13	%		4.85	%
Book value per common share (2)	$	15.84		$	16.93		$	18.90		$	28.71		$	28.07
Tangible book value per common share (3)	$	15.64		$	16.71		$	18.66		$	17.00		$	16.11
Common shares outstanding		119,967,984			120,169,012			120,244,214			120,222,057			120,314,023

(1)

Tangible common equity divided by tangible assets.

(2)

Total common equity divided by common shares outstanding.

(3)

Tangible common equity divided by common shares outstanding.

Page 28

	Three Months Ended									Nine Months Ended
Adjusted Earnings, Earnings Per	September 30,			June 30,			September 30,			September 30,
Share, and Return on Average Assets	2023			2023			2022			2023			2022

	(In thousands, except per share amounts)
(Loss) earnings before income taxes	$	(26,566	)	$	(264,443	)	$	175,182		$	(1,551,349	)	$	500,417
Add: Goodwill impairment		-			-			-			1,376,736			-
Add: Acquisition, integration, and reorganization costs		9,925			12,394			-			30,833			-
Add: Loan fair value loss adjustments		-			170,971			-			170,971			-
Add: Unfunded commitments fair value loss adjustments		-			106,767			-			106,767			-
Add: Civic loan sale charge-offs		-			22,446			-			22,446			-
Less: Legal recovery		(14,500	)		-			-			(14,500	)		-
Adjusted (loss) earnings before income taxes		(31,141	)		48,135			175,182			141,904			500,417
Adjusted income tax expense (1)		(3,768	)		12,178			43,566			54,917			126,313
Adjusted (loss) earnings		(27,373	)		35,957			131,616			86,987			374,104
Less: Preferred stock dividends		(9,947	)		(9,947	)		(9,392	)		(29,841	)		(9,392	)
Adjusted (loss) earnings available to common stockholders		(37,320	)		26,010			122,224			57,146			364,712
Less: Earnings allocated to unvested restricted stock		374			(313	)		(2,331	)		(249	)		(6,721	)
Adjusted (loss) earnings allocated to common shares	$	(36,946	)	$	25,697		$	119,893		$	56,897		$	357,991

Weighted average shares outstanding		118,558			118,255			117,786			118,250			117,567

Adjusted diluted (loss) earnings per common share (2)	$	(0.31	)	$	0.22		$	1.02		$	0.48		$	3.04

Average assets	$	37,807,758		$	43,040,329		$	40,841,272		$	41,187,428		$	40,255,665

Adjusted return on average assets (3)		(0.29	)%		0.34	%		1.28	%		0.28	%		1.24	%

(1)

(2)

Adjusted (loss) earnings allocated to common shares divided by weighted average shares outstanding.

(3)

Annualized adjusted (loss) earnings divided by average assets.

Page 29

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Adjusted Efficiency Ratio	2023			2023			2022			2023			2022

	(Dollars in thousands)
Noninterest expense	$	201,103		$	320,437		$	195,618		$	2,094,543		$	546,689
Less: Intangible asset amortization		2,389			2,389			3,649			7,189			10,947
Less: Foreclosed assets expense (income), net		(609	)		2			(248	)		(244	)		(3,629	)
Less: Goodwill impairment		-			-			-			1,376,736			-
Less: Acquisition, integration, and reorganization costs		9,925			12,394			-			30,833			-
Noninterest expense used for efficiency ratio		189,398			305,652			192,217			680,029			539,371
Less: Unfunded commitments fair value loss adjustments		-			106,767			-			106,767			-
Noninterest expense used for adjusted efficiency ratio	$	189,398		$	198,885		$	192,217		$	573,262		$	539,371

Net interest income (tax equivalent)	$	130,729		$	186,076		$	338,558		$	598,421		$	979,010
Noninterest income (loss)		43,808			(128,082	)		38,619			(47,883	)		93,783
Net revenues		174,537			57,994			377,177			550,538			1,072,793
Less: Gain (loss) on sale of securities		-			-			86			-			(1,019	)
Net revenues used for efficiency ratio		174,537			57,994			377,091			550,538			1,073,812
Less: Legal recovery		(14,500	)		-			-			(14,500	)		-
Add: Loan fair value loss adjustments		-			170,971			-			170,971			-
Net revenues used for adjusted efficiency ratio	$	160,037		$	228,965		$	377,091		$	707,009		$	1,073,812

Efficiency ratio (1)		108.5	%		527.0	%		51.0	%		123.5	%		50.2	%
Adusted efficiency ratio (2)		118.3	%		86.9	%		51.0	%		81.1	%		50.2	%

(1) Noninterest expense used for efficiency ratio divided by net revenues used for efficiency ratio.

(2) Noninterest expense used for adjusted efficiency ratio divided by net revenues used for adjusted efficiency ratio.

Non-GAAP Adjustment		Location on Income Statement
Legal recovery		Other income

Loan fair value loss adjustments		(Loss) gain on sale of loans and leases/LOCOM HFS adjustment

Civic loan sale charge-offs		Provision for credit losses

Acquisition, integration, and reorganization costs		Acquisition, integration, and reorganization costs

Unfunded commitments fair value loss adjustments		Other expense

CONTACTS

Kevin L. Thompson
Executive Vice President,
Chief Financial Officer
303.802.8934

William J. Black
Executive Vice President,
Strategy and Corporate Development
919.597.7466

Page 30

Cover	Oct. 24, 2023
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 24, 2023
Entity File Number	001-36408
Entity Registrant Name	PacWest Bancorp
Entity Central Index Key	0001102112
Entity Tax Identification Number	33-0885320
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	9701 Wilshire Blvd.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Beverly Hills
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90212
City Area Code	310
Local Phone Number	887-8500
Written Communications	true
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PACW
Security Exchange Name	NASDAQ
Depositary Shares, Each Representing a 1/40th Interest in a Share of 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series A
Trading Symbol	PACWP
Security Exchange Name	NASDAQ