Exhibit 99.1
PRESS RELEASE
PacWest Bancorp
(NASDAQ: PACW)
Contact:
Phone: Fax: | Matthew P. Wagner Chief Executive Officer 10250 Constellation Boulevard Suite 1640 Los Angeles, CA 90067
310-728-1020 310-201-0498 | Victor R. Santoro Executive Vice President and CFO 10250 Constellation Boulevard Suite 1640 Los Angeles, CA 90067
310-728-1021 310-201-0498 |
FOR IMMEDIATE RELEASE | January 16, 2013 |
PACWEST BANCORP ANNOUNCES RESULTS
FOR THE FOURTH QUARTER OF 2012 AND CALENDAR YEAR 2012
Fourth Quarter of 2012 Highlights
· Net Earnings of $19.9 Million or $0.54 Per Diluted Share
· Return on Average Assets and Equity of 1.44% and 13.51%
· Net Interest Margin at 5.49%
· Credit Loss Reserve at 2.37% of Net Non-Covered Loans and Leases and 184% of Non-Covered Nonaccrual Loans and Leases
· Noninterest-Bearing Deposits at 41% and Core Deposits at 83% of Total Deposits
Calendar Year 2012 Highlights
· Net Earnings of $56.8 Million or $1.54 Per Diluted Share
· Return on Average Assets and Equity of 1.04% and 10.01%
· Core Deposit Growth of $212.4 Million
Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the fourth quarter of 2012 of $19.9 million, or $0.54 per diluted share, compared to net earnings for the third quarter of 2012 of $16.1 million, or $0.43 per diluted share and net earnings of $56.8 million for calendar year 2012, or $1.54 per diluted share, compared to $50.7 million, or $1.37 per diluted share, for calendar year 2011.
This press release contains certain non-GAAP financial disclosures for tangible common equity; pre-tax earnings before net credit costs, securities gains and losses, acquisition and integration costs, and debt termination expense, which we refer to as “adjusted earnings before income taxes”; and efficiency ratios adjusted to exclude FDIC loss sharing income, securities gains and losses, OREO expenses, acquisition and integration costs, and debt termination expense. The
Company uses certain 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. Given the use of tangible common equity amounts and ratios is prevalent among banking regulators, investors and analysts, we disclose our tangible common equity ratio in addition to equity-to-assets ratio. Also, as analysts and investors view adjusted earnings before income taxes as an indicator of the Company’s ability to absorb credit losses, we disclose this amount in addition to pre-tax earnings. We disclose the adjusted efficiency ratio as it shows the trend in recurring overhead-related noninterest expense relative to recurring net revenues. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.
The comparability of financial information is affected by our acquisitions. Operating results include the operations of acquired entities from the dates of acquisition. The operations of American Perspective Bank (“APB”), Celtic Capital Corporation (“Celtic”) and Pacific Western Equipment Finance (“EQF”) have been included since their respective acquisition dates of August 1, 2012, April 3, 2012, and January 3, 2012.
FOURTH QUARTER RESULTS
|
| Three Months Ended |
| ||||
|
| December 31, |
| September 30, |
| ||
|
| 2012 |
| 2012 |
| ||
|
| (Dollars in thousands, except per share data) |
| ||||
Financial Highlights: |
|
|
|
|
| ||
Net earnings |
| $ | 19,892 |
| $ | 16,088 |
|
Diluted earnings per share |
| $ | 0.54 |
| $ | 0.43 |
|
Adjusted earnings before income taxes (1) |
| $ | 33,865 |
| $ | 33,437 |
|
Annualized return on average assets |
| 1.44 | % | 1.16 | % | ||
Annualized return on average equity |
| 13.51 | % | 11.16 | % | ||
Net interest margin |
| 5.49 | % | 5.58 | % | ||
Efficiency ratio |
| 60.7 | % | 67.6 | % | ||
Adjusted efficiency ratio (2) |
| 55.7 | % | 56.5 | % | ||
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|
|
|
|
| ||
At Quarter End: |
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|
|
| ||
Allowance for credit losses to non-covered loans and leases, net of unearned income (3) |
| 2.37 | % | 2.46 | % | ||
Allowance for credit losses to non-covered nonaccrual loans and leases (3) |
| 184 | % | 203 | % | ||
Equity to assets ratios: |
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|
|
| ||
PacWest Bancorp Consolidated |
| 10.78 | % | 10.55 | % | ||
Pacific Western Bank |
| 11.93 | % | 11.97 | % | ||
Tangible common equity ratios: |
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|
|
|
| ||
PacWest Bancorp Consolidated |
| 9.21 | % | 8.98 | % | ||
Pacific Western Bank |
| 10.38 | % | 10.42 | % |
(1) Represents pre-tax earnings excluding net credit costs, securities gains and losses, and acquisition and integration costs.
See GAAP to Non-GAAP Reconciliation table.
(2) Excludes FDIC loss sharing income, securities gains and losses, OREO expenses, and acquisition and integration costs.
See GAAP to Non-GAAP Reconciliation table.
(3) Non-covered loans exclude loans covered by loss sharing agreements with the FDIC.
The most significant items causing the $3.8 million quarter-over-quarter increase in net earnings were: (a) the $1.7 million decline in after-tax net credit costs (provisions, loss sharing expense and OREO expense for both covered and non-covered portfolios); (b) the fourth quarter after-tax gain on sale of securities of $719,000; (c) the $644,000 increase in after-tax gain on sale of leases; (d) the $585,000 decline in after-tax acquisition and integration costs; and (e) after excluding OREO and acquisition and integration costs, the $467,000 after-tax decline in noninterest expenses attributed mostly to the cost savings realized from the third quarter branch sale.
Net credit costs on a pre-tax basis are shown in the following table:
|
| Three Months Ended |
| Year Ended |
| ||||||||
|
| December 31, |
| September 30, |
| December 31, |
| ||||||
|
| 2012 |
| 2012 |
| 2012 |
| 2011 |
| ||||
|
| (In thousands) |
| ||||||||||
Provision (negative provision) for credit losses on non-covered loans and leases |
| $ | — |
| $ | (2,000 | ) | $ | (12,000 | ) | $ | 13,300 |
|
Non-covered OREO expense, net |
| 316 |
| 1,883 |
| 4,150 |
| 7,010 |
| ||||
Total non-covered net credit costs |
| 316 |
| (117 | ) | (7,850 | ) | 20,310 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Provision (negative provision) for credit losses on covered loans |
| (4,333 | ) | (141 | ) | (819 | ) | 13,270 |
| ||||
Covered OREO expense (income), net |
| (461 | ) | 4,290 |
| 6,781 |
| 3,666 |
| ||||
|
| (4,794 | ) | 4,149 |
| 5,962 |
| 16,936 |
| ||||
Less: FDIC loss sharing income (expense), net |
| (6,022 | ) | (367 | ) | (10,070 | ) | 7,776 |
| ||||
Total covered net credit costs |
| 1,228 |
| 4,516 |
| 16,032 |
| 9,160 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total net credit costs |
| $ | 1,544 |
| $ | 4,399 |
| $ | 8,182 |
| $ | 29,470 |
|
The provision for credit losses for the fourth quarter had two components: no provision for non-covered loans and leases and a $4.3 million negative provision for covered loans. The fourth quarter non-covered provision for credit losses of zero was based on our allowance methodology which considers the level and trends of net charge-offs, nonaccrual and classified loans and leases, and the migration of loans and leases into various risk classifications. The covered loans negative credit loss provision was driven by increases in expected cash flows on covered loan pools compared to those previously estimated and cash recoveries.
Matt Wagner, Chief Executive Officer, commented, “We had an exceptional fourth quarter and year. Our fourth quarter earnings of $19.9 million contributed to our solid capital base. Credit quality continues to improve, and our reserve coverage ratios are strong. Although we resisted competing for term real estate loans at low rates and long durations, we had $28.3 million of solid growth in our C&I and lease portfolios during the fourth quarter.”
Mr. Wagner continued, “In 2012 we made great strides. We completed the acquisitions of Pacific Western Equipment Finance, Celtic Capital Corporation and American Perspective Bank. These three acquisitions contributed $3.7 million to fourth quarter net earnings and $9.7 million to calendar 2012 net earnings. We increased our quarterly dividend to $0.25 per share resulting in a current dividend yield of 3.90%. And in November, we announced the pending acquisition of First California Financial Group. Although our priority in 2013 will be the completion of the First California merger and integration of its operations, we will continue to focus on improving profitability, making and or renewing quality and profitable loans with good customers, and building new relationships.”
Vic Santoro, Executive Vice President and Chief Financial Officer, stated, “Our overall profitability derives from our net interest margin and expense control. The NIMs we posted during 2012, including the fourth quarter NIM of 5.49%, have been driven by our finance company acquisitions, accelerated accretion on covered loans, the debt repayments we made in the first quarter, and successful efforts to manage deposit costs. We enhanced our profitability through cost management, with the most recent action being the third quarter branch sale, which resulted in fourth quarter cost savings of $1.5 million. Our ability to sustain earnings, which on an adjusted basis were $33.9 million for the fourth quarter, along with our $589 million capital base allows us to take advantage of growth opportunities as they arise.”
YEAR TO DATE RESULTS
|
| Year Ended |
| ||||
|
| December 31, |
| ||||
|
| 2012 |
| 2011 |
| ||
|
| (Dollars in thousands, except per share data) |
| ||||
Financial Highlights: |
|
|
|
|
| ||
Net earnings |
| $ | 56,801 |
| $ | 50,704 |
|
Diluted earnings per share |
| $ | 1.54 |
| $ | 1.37 |
|
Adjusted earnings before income taxes (1) |
| $ | 128,241 |
| $ | 117,574 |
|
Return on average assets |
| 1.04 | % | 0.92 | % | ||
Return on average equity |
| 10.01 | % | 9.92 | % | ||
Net interest margin |
| 5.52 | % | 5.26 | % | ||
Efficiency ratio |
| 72.4 | % | 61.2 | % | ||
Adjusted efficiency ratio (2) |
| 57.6 | % | 58.9 | % |
(1) Represents pre-tax earnings excluding net credit costs, securities gains and losses, acquisition and integration costs, and debt termination expense. See GAAP to Non-GAAP Reconciliation table.
(2) Excludes FDIC loss sharing income, securities gains and losses, OREO expenses, acquisition and integration costs, and debt termination expense. See GAAP to Non-GAAP Reconciliation table.
Net earnings for 2012 were $56.8 million, an increase of $6.1 million compared to 2011. The drivers of improved profitability in 2012 include: higher net interest income from lower funding costs ($8.0 million after tax) and lower net credit costs (provisions, loss sharing expense and OREO expense for both covered and non-covered portfolios) from improved credit quality ($12.3 million after tax). These items were offset by the 2012 debt termination expense ($13.1 million after tax) and higher noninterest expense in 2012 from acquisition activity ($5.1 million after tax).
Highlights are as follows:
· Higher net interest income of $13.8 million ($8.0 million after-tax) is attributed mostly to a decrease in interest expense from both lower volume and rate of interest-bearing liabilities.
· Lower provision for credit losses of $39.4 million ($22.8 million after tax); the provision on non-covered loans is lower by $25.3 million ($14.7 million after tax) and the provision on covered loans is lower by $14.1 million ($8.1 million after tax). These declines are due to improving credit quality.
· Other credit related costs and loss sharing contract activities reduced net earnings by $19.2 million ($11.1 million after tax); this amount includes lower net FDIC loss sharing income of $17.8 million ($10.4 million after tax), higher net covered OREO expense of $3.1 million ($1.8 million after tax), the $1.1 million ($647,000 after tax) other-than-temporary impairment (OTTI) loss on a covered security, and lower non-covered OREO expense of $2.8 million ($1.7 million after tax).
· Noninterest income includes $2.8 million ($1.6 million after tax) related to gain on sale of leases, $1.2 million ($719,000 after tax) related to gain on sales of securities, and the $297,000 ($172,000 after tax) gain on sale of branches; there were no such items in 2011.
· $22.6 million ($13.1 million after tax) of debt termination expense incurred in the first quarter of 2012 on the repayment of $225 million in fixed-rate term FHLB advances and the early redemption of $18.6 million in trust-preferred securities; there was no such item in 2011.
· Higher acquisition and integration costs of $3.5 million ($2.0 million after tax) related to the Company’s three acquisitions completed in 2012 and the proposed acquisition of First California Financial Group announced on November 6, 2012.
· Excluding debt termination costs, OREO costs, and acquisition and integration costs, noninterest expense increased $5.3 million ($3.1 million after tax) attributed mostly to higher compensation and overhead costs for the acquired operations; these increases were offset by lower insurance assessments, lower CDI amortization expense, and lower other professional services expense.
BALANCE SHEET CHANGES
At December 31, 2012, gross non-covered loans and leases totaled $3.0 billion and the covered loan portfolio was $517.3 million. The gross non-covered loan and lease portfolio decreased $3.6 million for the quarter, net of a $28.3 million increase in leases and commercial loans. During the fourth quarter, our regional presidents reported that loans having balances of $1.0 million or more refinanced by other lenders totaled approximately $57 million. We chose not to compete on these refinancings because of the low rates and long durations offered by the other lenders. The covered loan portfolio declined $50.1 million due to repayments and resolution activities.
The following table presents the changes in non-covered gross loans and leases for the periods indicated:
|
| Three Months |
| Year |
| ||
|
| Ended |
| Ended |
| ||
Non-Covered Gross Loans and Leases: |
| December 31, 2012 |
| ||||
|
| (In thousands) |
| ||||
Beginning of period |
| $ | 3,053,081 |
| $ | 2,812,105 |
|
APB acquisition |
| — |
| 197,279 |
| ||
Celtic acquisition |
| — |
| 54,963 |
| ||
EQF acquisition |
| — |
| 140,959 |
| ||
Loan sales |
| — |
| (18,404 | ) | ||
Net decline |
| (3,576 | ) | (137,397 | ) | ||
End of period |
| $ | 3,049,505 |
| $ | 3,049,505 |
|
Total liabilities declined $79.9 million during the fourth quarter due to lower total deposits. Total deposits decreased $78.2 million during the fourth quarter to $4.7 billion at December 31, 2012. Core deposits declined $36.2 million during the fourth quarter due mostly to a decrease of $67.8 million in noninterest-bearing demand deposits, offset by increases of $20.1 million and $13.7 million in money market deposits and interest checking deposits. Time deposits declined $42.0 million during the fourth quarter to $820.3 million at December 31, 2012. At December 31, 2012, core deposits totaled $3.9 billion, or 83% of total deposits at that date. Noninterest-bearing demand deposits were $1.9 billion at December 31, 2012 and represented 41% of total deposits at that date.
The following table presents the changes in deposits for the periods indicated:
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| Three Months |
| Year |
| ||
|
| Ended |
| Ended |
| ||
Total Deposits: |
| December 31, 2012 |
| ||||
|
| (In thousands) |
| ||||
|
|
|
|
|
| ||
Beginning of period |
| $ | 4,787,348 | (1) | $ | 4,577,453 |
|
APB acquisition |
| — |
| 219,564 |
| ||
Branch sale |
| — |
| (125,222 | ) | ||
Growth (decline) in core deposits |
| (36,213 | )(1) | 212,429 |
| ||
Growth (decline) in time deposits |
| (42,014 | ) | (175,103 | ) | ||
End of period |
| $ | 4,709,121 |
| $ | 4,709,121 |
|
(1) Includes a $120 million deposit received at the end of the third quarter of 2012 and withdrawn in October 2012.
SECURITIES AVAILABLE-FOR-SALE
The following table presents the components, yields, and durations of our securities available-for-sale as of the date indicated:
|
| December 31, 2012 |
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| Amortized |
| Carrying |
| Book |
| Duration |
| ||
Security Type |
| Cost |
| Value |
| Yield |
| (in years) |
| ||
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| (Dollars in thousands) |
| ||||||||
Residential mortgage-backed securities: |
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|
| ||
Government agency and government-sponsored enterprise pass through securities |
| $ | 774,677 |
| $ | 807,842 |
| 1.93 | % | 3.6 |
|
Government agency and government-sponsored enterprise collateralized mortgage obligations |
| 99,956 |
| 101,694 |
| 0.80 | % | 3.0 |
| ||
Covered private label collateralized mortgage obligations |
| 36,078 |
| 44,684 |
| 10.20 | % | 3.9 |
| ||
Municipal securities (1) |
| 339,547 |
| 348,041 |
| 2.69 | % | 6.7 |
| ||
Corporate debt securities |
| 42,014 |
| 42,365 |
| 3.85 | % | 13.4 |
| ||
Other securities |
| 6,389 |
| 10,759 |
| — |
| — |
| ||
Total securities available-for-sale (1) |
| $ | 1,298,661 |
| $ | 1,355,385 |
| 2.33 | % | 4.6 |
|
(1) The tax equivalent yield was 4.29% and 2.73% for municipal securities and total securities available-for-sale, respectively.
COVERED ASSETS
As part of the Los Padres and Affinity acquisitions we entered into loss sharing agreements with the FDIC that cover a substantial portion of losses incurred after the acquisition dates on covered loans and other real estate owned, and in the case of the Affinity acquisition, certain investment securities. A summary of covered assets is shown in the following table as of the dates indicated:
|
| December 31, |
| September 30, |
| December 31, |
| |||
Covered Assets |
| 2012 |
| 2012 |
| 2011 |
| |||
|
| (In thousands) |
| |||||||
Loans, net |
| $ | 517,258 |
| $ | 567,396 |
| $ | 703,023 |
|
Investment securities |
| 44,684 |
| 45,887 |
| 45,149 |
| |||
Other real estate owned, net |
| 22,842 |
| 26,374 |
| 33,506 |
| |||
Total covered assets |
| $ | 584,784 |
| $ | 639,657 |
| $ | 781,678 |
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Percentage of total assets |
| 10.7 | % | 11.5 | % | 14.1 | % |
NET INTEREST INCOME
Net interest income declined by $1.2 million to $69.6 million for the fourth quarter of 2012 compared to $70.8 million for the third quarter of 2012 due primarily to a decrease in interest income on loans and leases. The $1.3 million decline in interest income on loans and leases was due to lower early lease repayments and lower volume of nonaccrual loans returning to accrual status. Interest expense declined by $253,000 due mostly to lower rates on money market deposits and lower average time deposits.
Net interest income increased by $13.8 million to $276.5 million during 2012 compared to 2011. This change was due primarily to a $13.0 million decrease in interest expense and an $872,000 increase in interest on investment securities. Interest expense on deposits decreased $7.4 million due to lower rates on all interest-bearing deposits and lower average time deposits. Interest expense on borrowings declined $4.4 million due to lower average borrowings and a lower average rate on such borrowings; we repaid fixed-rate term FHLB advances at the end of the first quarter of 2012 and replaced a portion of those advances with lower cost overnight FHLB advances that were repaid during the third quarter. Interest expense on subordinated debentures decreased $1.2 million due to the March 2012 redemption of $18.6 million in fixed-rate trust preferred securities. Interest income on investment securities increased $872,000 due to portfolio purchases.
NET INTEREST MARGIN
Our net interest margin (“NIM”) for the fourth quarter of 2012 was 5.49%, a decrease of nine basis points from the 5.58% reported for the third quarter of 2012.
The NIM is impacted by several items that cause volatility from period to period. The effects of such items on the NIM are shown in the following table for the periods indicated:
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| Year |
|
|
| Three Months Ended |
| Ended |
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|
| December 31, |
| September 30, |
| December 31, |
|
Items Impacting NIM Volatility |
| 2012 |
| 2012 |
| 2012 |
|
|
| Increase (Decrease) in NIM |
| ||||
Accelerated accretion of acquisition discounts resulting from covered loan payoffs |
| 0.13 | % | 0.12 | % | 0.16 | % |
Nonaccrual loan interest |
| 0.01 | % | 0.04 | % | 0.01 | % |
Unearned income and acquisition accounting adjustment on the early repayment of leases |
| 0.03 | % | 0.14 | % | 0.05 | % |
Celtic loan portfolio premium amortization |
| (0.01 | )% | (0.04 | )% | (0.03 | )% |
Total |
| 0.16 | % | 0.26 | % | 0.19 | % |
The following table presents the loan yields and related average balances for our non-covered loans, covered loans, and total loan portfolio for the periods indicated:
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| Year |
| |||
|
| Three Months Ended |
| Ended |
| |||||
|
| December 31, |
| September 30, |
| December 31, |
| |||
|
| 2012 |
| 2012 |
| 2012 |
| |||
|
| (Dollars in thousands |
| |||||||
Yields: |
|
|
|
|
|
|
| |||
Non-covered loans and leases |
| 6.83 | % | 7.01 | % | 6.82 | % | |||
Covered loans |
| 9.81 | % | 9.49 | % | 9.66 | % | |||
Total loans and leases |
| 7.30 | % | 7.44 | % | 7.33 | % | |||
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Average Balances: |
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|
|
|
|
| |||
Non-covered loans and leases |
| $ | 3,026,121 |
| $ | 2,977,708 |
| $ | 2,935,420 |
|
Covered loans |
| 539,514 |
| 587,929 |
| 612,949 |
| |||
Total loans and leases |
| $ | 3,565,635 |
| $ | 3,565,637 |
| $ | 3,548,369 |
|
The loan yield is impacted by the same items which cause volatility in the NIM. The following table presents the effects of these items on the total loan yield for the periods indicated:
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|
| Year |
|
|
| Three Months Ended |
| Ended |
| ||
|
| December 31, |
| September 30, |
| December 31, |
|
Items Impacting Loan Yield Volatility |
| 2012 |
| 2012 |
| 2012 |
|
|
| Increase (Decrease) in Loan Yield |
| ||||
Accelerated accretion of acquisition discounts resulting from covered loan payoffs |
| 0.16 | % | 0.16 | % | 0.21 | % |
Nonaccrual loan interest |
| 0.02 | % | 0.06 | % | 0.02 | % |
Unearned income and acquisition accounting adjustment on the early repayment of leases |
| 0.05 | % | 0.21 | % | 0.07 | % |
Celtic loan portfolio premium amortization |
| (0.01 | )% | (0.06 | )% | (0.04 | )% |
Total |
| 0.22 | % | 0.37 | % | 0.26 | % |
The yield on average loans and leases decreased 14 basis points to 7.30% for the fourth quarter of 2012 from 7.44% for the third quarter of 2012. This was due mainly to lower lease interest income from the decline in early lease payoffs. Total income from early lease payoffs was $466,000 in the fourth quarter and $1.9 million in the third quarter. Income from early lease payoffs for 2012 was $2.4 million. Accelerated accretion of acquisition discounts from covered loan payoffs totaled approximately $1.5 million in the fourth and third quarters increasing the loan yields each by 16 basis points.
The cost of total interest-bearing liabilities declined three basis points to 0.56% for the fourth quarter of 2012. All-in deposit cost declined 2 basis points to 0.25% during the fourth quarter of 2012 from 0.27% for the third quarter of 2012. Such declines are due to lower rates on average money market and time deposits.
The NIM for the year ended December 31, 2012 was 5.52%, an increase of 26 basis points from 5.26% for last year. The increase was due to lower funding costs and a higher yield on loans and leases, offset by lower average loans and a lower return on the securities portfolio.
The yield on average loans and leases increased 40 basis points to 7.33% for the year ended December 31, 2012 compared to 6.93% for last year, due mainly to the addition of Celtic’s and EQF’s higher-yielding loan and lease portfolios. All-in deposit cost declined 16 basis points to 0.29% for 2012 compared to last year. The cost of interest-bearing deposits declined 22 basis points to 0.48% due to lower rates on all interest-bearing deposits and a shift in the deposit mix to lower cost interest-bearing checking, money market and savings deposits from higher cost time deposits. The cost of total interest-bearing liabilities declined 33 basis points to 0.66% due to the reduction in the cost of interest-bearing deposits and the first quarter of 2012 repayment of $225.0 million in fixed-rate term FHLB advances and the redemption of $18.6 million in fixed-rate trust preferred securities.
NONINTEREST INCOME
Noninterest income decreased by $3.6 million to $2.1 million for the fourth quarter of 2012 compared to $5.7 million for the third quarter of 2012. The change was due to lower FDIC loss sharing income offset in part by higher gains on sales of leases and securities.
The fourth quarter includes net FDIC loss sharing expense of $6.0 million compared to third quarter net FDIC loss sharing expense of $367,000; such change was due mostly to higher amortization of the FDIC loss sharing asset, higher covered loan recoveries, and lower covered OREO write-downs during the fourth quarter. Gain on sale of leases increased $1.1 million to $1.2 million and relates mostly to the sale of one lease. We sold $43.9 million in available-for-sale MBS securities for a $1.2 million gain; such securities were identified as generally having higher volatility than the broader portfolio and were sold as part of our portfolio management activities.
The following table presents the details of FDIC loss sharing income (expense), net for the periods indicated:
|
| Three Months Ended |
| Year Ended |
| ||||||||||||||
|
| December 31, |
| September 30, |
| Increase |
| December 31, |
| Increase |
| ||||||||
|
| 2012 |
| 2012 |
| (Decrease) |
| 2012 |
| 2011 |
| (Decrease) |
| ||||||
|
| (In thousands) |
| ||||||||||||||||
FDIC Loss Sharing Income (Expense), Net: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Gain (loss) on FDIC loss sharing asset (1) |
| $ | 303 |
| $ | (593 | ) | $ | 896 |
| $ | (582 | ) | $ | 16,490 |
| $ | (17,072 | ) |
FDIC loss sharing asset amortization, net |
| (3,740 | ) | (2,488 | ) | (1,252 | ) | (10,658 | ) | (5,661 | ) | (4,997 | ) | ||||||
Loan recoveries shared with FDIC (2) |
| (2,180 | ) | (640 | ) | (1,540 | ) | (4,905 | ) | (5,513 | ) | 608 |
| ||||||
Net reimbursement (to) from FDIC for covered OREO activity (3) |
| (409 | ) | 3,350 |
| (3,759 | ) | 5,164 |
| 2,416 |
| 2,748 |
| ||||||
Other-than-temporary impairment loss on covered security |
| — |
| — |
| — |
| 892 |
| — |
| 892 |
| ||||||
Other |
| 4 |
| 4 |
| — |
| 19 |
| 44 |
| (25 | ) | ||||||
FDIC loss sharing income (expense), net |
| $ | (6,022 | ) | $ | (367 | ) | $ | (5,655 | ) | $ | (10,070 | ) | $ | 7,776 |
| $ | (17,846 | ) |
(1) Includes increases related to covered loan loss provisions and decreases for write-offs for covered loans expected to be resolved at amounts higher than their carrying value.
(2) Represents amounts to be reimbursed to the FDIC for covered loans resolved at amounts higher than their carrying values.
(3) Represents amounts to be reimbursed to the FDIC for gains on covered OREO sales and due from the FDIC for covered OREO write-downs.
Noninterest income declined by $15.5 million to $15.9 million for the year ended December 31, 2012 compared to $31.4 million for last year. The change was due mainly to a decrease in net FDIC loss sharing income of $17.8 million, a $1.1 million OTTI loss on one of our covered private label CMOs, and a $1.0 million decline in service charges on deposit accounts. These decreases were offset, in part, by $4.0 million of gains on sales of leases and securities; there were no such gains in 2011. FDIC loss sharing income, net, decreased due mainly to lower provisions for credit losses on covered loans and higher amortization of the FDIC loss sharing asset, offset by higher net covered OREO costs.
NONINTEREST EXPENSE
Noninterest expense decreased by $8.1 million to $43.5 million during the fourth quarter of 2012 compared to $51.7 million for the third quarter of 2012. Covered OREO expense decreased $4.8 million due to lower write-downs of $4.8 million. Non-covered OREO expense decreased $1.6 million due to lower write-downs of $2.2 million offset partially by lower gains on sale of non-covered OREO of $672,000. Acquisition and integration costs decreased $1.0 million; fourth quarter costs represent mostly professional fees related to the pending First California acquisition while the third quarter expense related to the APB acquisition including severance, systems conversion and professional fees, and accruals for the closures of two Pacific Western Bank offices at the time of the APB acquisition. When OREO and acquisition and integration costs are excluded from noninterest expense, such costs decrease $805,000; this decrease is attributed mostly to the cost savings realized from the third quarter sale of 10 branches.
Noninterest expense includes (a) amortization of time-based restricted stock, which is included in compensation, and (b) intangible asset amortization. Amortization of restricted stock totaled $1.4 million for each of the fourth and third quarters of 2012. Intangible asset amortization totaled $1.2 million and $1.7 million for the fourth and third quarters of 2012, respectively.
Noninterest expense increased by $31.7 million to $211.7 million during the year ended December 31, 2012 compared to $180.0 million for last year. The increase was due mostly to $22.6 million in debt termination expense incurred in the first quarter of 2012 for the early repayments of FHLB advances and trust preferred securities. No such expense was incurred in the prior year. Excluding the debt termination expense, noninterest expense increased $9.1 million. Noninterest expense for APB, Celtic and EQF totaled $15.1 million since their acquisition dates, and the increase in acquisition and integration costs totaled $3.5 million. Covered OREO expense increased by $3.1 million due mostly to lower gains on sales of $4.8 million offset by lower write-downs of $1.5 million. Non-covered OREO expense decreased $2.8 million due to higher gains on sales of $1.5 million and lower write-downs of $1.2 million. Other expense categories declined as follows (amounts exclude the acquisition activity previously described): (a) intangible asset amortization declined $2.7 million due to certain intangibles being fully amortized; (b) insurance and assessments decreased $1.9 million due to the revised deposit insurance assessment formula; and (c) other professional services declined $1.2 million due to lower legal fees for litigation on loans and to lower fees for our outsourced internal audit function.
Amortization of restricted stock totaled $5.7 million and $7.6 million for the year ended December 31, 2012 and 2011, respectively. Intangible asset amortization totaled $6.3 million for the year ended December 31, 2012 compared to $8.4 million for last year.
CREDIT QUALITY
|
| December 31, |
| September 30, |
| December 31, |
| |||
|
| 2012 |
| 2012 |
| 2011 |
| |||
|
| (Dollars in thousands) |
| |||||||
Non-Covered Credit Quality Metrics: |
|
|
|
|
|
|
| |||
Allowance for credit losses |
| $ | 72,119 |
| $ | 75,012 |
| $ | 93,783 |
|
Nonaccrual loans and leases |
| 39,284 |
| 36,985 |
| 58,260 |
| |||
Classified loans and leases (1) |
| 101,019 |
| 96,898 |
| 185,560 |
| |||
Performing restructured loans |
| 106,288 |
| 112,834 |
| 116,791 |
| |||
Net charge-offs (for the quarter) |
| 2,893 |
| 1,019 |
| 2,752 |
| |||
Allowance for credit losses to loans and leases, net of unearned income |
| 2.37 | % | 2.46 | % | 3.34 | % | |||
Allowance for credit losses to nonaccrual loans and leases |
| 184 | % | 203 | % | 161 | % | |||
Nonperforming assets to loans and leases, net of unearned income, and other real estate owned |
| 2.37 | % | 2.41 | % | 3.73 | % | |||
(1) Classified loans and leases are those with a credit risk rating of substandard or doubtful.
Our non-covered loans and leases at December 31, 2012, include $298.5 million in loans and leases acquired in our 2012 acquisitions and that were initially recorded at their estimated fair values. The fair value amounts at which these loans were initially recorded included an estimate of their credit losses; therefore, the allowance takes into consideration those loans whose credit quality has deteriorated since the acquisition. At December 31, 2012, $1.0 million of our allowance for credit losses applies to such loans and leases. When these loans and leases are excluded from the total of non-covered loans and leases, the coverage ratio of our allowance for credit losses increases to 2.58% at December 31, 2012. The comparable ratio at September 30, 2012 was 2.76%.
Credit Loss Provisions
The Company recorded a negative provision for credit losses of $4.3 million in the fourth quarter of 2012 compared to a negative provision for credit losses of $2.1 million in the third quarter of 2012 as follows:
|
| Three Months Ended |
| |||||||
|
| December 31, |
| September 30, |
| Increase |
| |||
|
| 2012 |
| 2012 |
| (Decrease) |
| |||
|
| (In thousands) |
| |||||||
Provision (Negative Provision) for Credit Losses on: |
|
|
|
|
|
|
| |||
Non-covered loans and leases |
| $ | — |
| $ | (2,000 | ) | $ | 2,000 |
|
Covered loans |
| (4,333 | ) | (141 | ) | (4,192 | ) | |||
Total provision (negative provision) for credit losses |
| $ | (4,333 | ) | $ | (2,141 | ) | $ | (2,192 | ) |
The provision level on the non-covered portfolio is generated by our allowance methodology and reflects historical and current net charge-offs, the levels of nonaccrual and classified loans and leases, the migration of loans and leases into various risk classifications, and the level of outstanding loans and leases. Based on such methodology, there was no fourth quarter provision.
The provision or negative provision for credit losses on the covered loans results from, respectively, decreases or increases in expected cash flows on covered loans compared to those previously estimated.
Non-covered Nonaccrual Loans and Other Real Estate Owned
Non-covered nonperforming assets include non-covered nonaccrual loans and leases and non-covered OREO and totaled $72.9 million at December 31, 2012 compared to $74.3 million at September 30, 2012. The ratio of non-covered nonperforming assets to non-covered loans and leases and non-covered OREO decreased to 2.37% at December 31, 2012 from 2.41% at September 30, 2012.
The following table presents our non-covered nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by portfolio segment and class as of the dates indicated:
|
| Nonaccrual Loans and Leases (1) |
| Accruing and |
| ||||||||||||
|
| December 31, 2012 |
| September 30, 2012 |
| 30 - 89 Days Past Due (1) |
| ||||||||||
|
|
|
| % of |
|
|
| % of |
| December 31, |
| September 30, |
| ||||
|
|
|
| Loan |
|
|
| Loan |
| 2012 |
| 2012 |
| ||||
|
| Balance |
| Category |
| Balance |
| Category |
| Balance |
| Balance |
| ||||
|
| (Dollars in thousands) |
| ||||||||||||||
Real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Hospitality |
| $ | 6,908 |
| 3.8 | % | $ | 6,993 |
| 5.9 | % | $ | — |
| $ | — |
|
SBA 504 |
| 2,982 |
| 5.5 | % | 1,330 |
| 2.4 | % | 955 |
| 2,926 |
| ||||
Other |
| 15,929 |
| 0.9 | % | 9,031 |
| 0.5 | % | 1,408 |
| — |
| ||||
Total real estate mortgage |
| 25,819 |
| 1.3 | % | 17,354 |
| 0.9 | % | 2,363 |
| 2,926 |
| ||||
Real estate construction: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Residential |
| 1,057 |
| 2.2 | % | 1,063 |
| 2.5 | % | — |
| — |
| ||||
Commercial |
| 2,715 |
| 3.3 | % | 3,885 |
| 3.5 | % | — |
| 1,301 |
| ||||
Total real estate construction |
| 3,772 |
| 2.9 | % | 4,948 |
| 3.2 | % | — |
| 1,301 |
| ||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Collateralized |
| 2,648 |
| 0.6 | % | 7,180 |
| 1.7 | % | 166 |
| 12 |
| ||||
Unsecured |
| 2,019 |
| 2.9 | % | 2,055 |
| 2.4 | % | 138 |
| — |
| ||||
Asset-based |
| 176 |
| 0.1 | % | 176 |
| 0.1 | % | — |
| — |
| ||||
SBA 7(a) |
| 4,181 |
| 16.5 | % | 4,433 |
| 17.0 | % | 313 |
| 210 |
| ||||
Total commercial |
| 9,024 |
| 1.1 | % | 13,844 |
| 1.8 | % | 617 |
| 222 |
| ||||
Leases |
| 244 |
| 0.1 | % | 420 |
| 0.3 | % | 357 |
| — |
| ||||
Consumer |
| 425 |
| 1.9 | % | 419 |
| 2.0 | % | 15 |
| 23 |
| ||||
Total non-covered loans and leases |
| $ | 39,284 |
| 1.3 | % | $ | 36,985 |
| 1.2 | % | $ | 3,352 |
| $ | 4,472 |
|
(1) Excludes covered loans.
The $2.3 million increase in non-covered nonaccrual loans and leases during the fourth quarter was attributable to (a) additions of $9.3 million, (b) other reductions, payoffs and returns to accrual status of $5.2 million, and (c) charge-offs of $1.8 million. There were no foreclosures of non-covered nonaccrual loans during the fourth quarter.
Below is a summary of the ten largest lending relationships on nonaccrual status, excluding SBA-related loans, as of the date indicated:
Nonaccrual |
|
| |
Amount |
|
| |
December 31, |
|
| |
2012 |
| Description | |
(In thousands) |
|
| |
|
|
| |
$ | 6,908 |
| Two loans, each secured by a hotel in San Diego County, California. The borrower is paying according to the restructured terms of each loan. (1) |
|
|
| |
3,480 |
| Two loans, one of which is secured by an office building Clark County, Nevada; and one of which is secured by an office building in Maricopa County, Arizona. (2) | |
|
|
| |
2,354 |
| This loan is secured by a strip retail center in Riverside County, California. The borrower is paying according to the restructured terms of the loan. (1) | |
|
|
| |
1,877 |
| This loan is secured by a strip retail center in Clark County, Nevada. (2) | |
|
|
| |
1,790 |
| This loan is unsecured and has a specific reserve for 100% of the balance. (1) | |
|
|
| |
1,706 |
| This loan is secured by two industrial buildings in San Diego County, California. (1) | |
|
|
| |
1,245 |
| This loan is secured by land in Riverside County, California. (2) | |
|
|
| |
1,199 |
| Two loans, one of which is secured by an apartment building in San Diego County, California; and one of which is secured by an office building in San Diego County, California. (1) | |
|
|
| |
1,194 |
| This loan is secured by three industrial buildings in Riverside County, California. (1) | |
|
|
| |
1,046 |
| This loan is secured by a multi-tenant industrial building in Riverside County, California. (1) | |
|
|
| |
$ | 22,799 |
| Total |
(1) On nonaccrual status at September 30, 2012
(2) New nonaccrual in fourth quarter of 2012
The following table presents the details of non-covered and covered OREO as of the dates indicated:
|
| December 31, 2012 |
| September 30, 2012 |
| December 31, 2011 |
| ||||||||||||
|
| Non- |
|
|
| Non- |
|
|
| Non- |
|
|
| ||||||
|
| Covered |
| Covered |
| Covered |
| Covered |
| Covered |
| Covered |
| ||||||
Property Type |
| OREO |
| OREO |
| OREO |
| OREO |
| OREO |
| OREO |
| ||||||
|
| (In thousands) |
| ||||||||||||||||
Commercial real estate |
| $ | 1,684 |
| $ | 11,635 |
| $ | 1,684 |
| $ | 18,500 |
| $ | 23,003 |
| $ | 15,053 |
|
Construction and land development |
| 31,888 |
| 6,708 |
| 33,911 |
| 6,807 |
| 24,788 |
| 15,461 |
| ||||||
Multi-family |
| — |
| 4,239 |
| — |
| 939 |
| — |
| — |
| ||||||
Single family residences |
| — |
| 260 |
| 1,738 |
| 128 |
| 621 |
| 2,992 |
| ||||||
Total OREO, net |
| $ | 33,572 |
| $ | 22,842 |
| $ | 37,333 |
| $ | 26,374 |
| $ | 48,412 |
| $ | 33,506 |
|
The following table presents non-covered and covered OREO activity for the period indicated:
|
| Three Months Ended |
| |||||||
|
| December 31, 2012 |
| |||||||
|
| Non-Covered |
| Covered |
| Total |
| |||
|
| OREO |
| OREO |
| OREO |
| |||
|
| (In thousands) |
| |||||||
Beginning of period |
| $ | 37,333 |
| $ | 26,374 |
| $ | 63,707 |
|
Foreclosures |
| — |
| 7,963 |
| 7,963 |
| |||
Provision for losses |
| (401 | ) | (366 | ) | (767 | ) | |||
Reductions related to sales |
| (3,360 | ) | (11,129 | ) | (14,489 | ) | |||
End of period |
| $ | 33,572 |
| $ | 22,842 |
| $ | 56,414 |
|
|
|
|
|
|
|
|
| |||
Net gain on sale |
| $ | 365 |
| $ | 879 |
| $ | 1,244 |
|
REGULATORY CAPITAL MEASURES ARE ABOVE THE WELL-CAPITALIZED MINIMUMS
PacWest and its wholly-owned banking subsidiary, Pacific Western Bank, each remained well capitalized as of the date indicated as shown in the following table:
|
| December 31, 2012 |
| ||||
|
| Well |
| Pacific |
| PacWest |
|
|
| Capitalized |
| Western |
| Bancorp |
|
|
| Requirement |
| Bank |
| Consolidated |
|
Tier 1 leverage capital ratio |
| 5.00 | % | 9.78 | % | 10.53 | % |
Tier 1 risk-based capital ratio |
| 6.00 | % | 14.10 | % | 15.17 | % |
Total risk-based capital ratio |
| 10.00 | % | 15.36 | % | 16.43 | % |
Tangible common equity ratio |
| N/A |
| 10.38 | % | 9.21 | % |
ABOUT PACWEST BANCORP
PacWest Bancorp (“PacWest”) is a bank holding company with $5.5 billion in assets as of December 31, 2012, with one wholly-owned banking subsidiary, Pacific Western Bank (“Pacific Western”). Through 67 full-service community banking branches, Pacific Western provides commercial banking services, including real estate, construction and commercial loans, to small and medium-sized businesses. Pacific Western’s branches are located throughout California in Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, San Diego, San Francisco, San Luis Obispo, San Mateo and Ventura Counties. Through its subsidiaries, BFI Business Finance and Celtic Capital Corporation, and its divisions First Community Financial and Pacific Western Equipment Finance, Pacific Western also provides working capital financing and equipment leasing to growing companies located throughout the United States, with a focus on the Southwestern U.S., primarily in Arizona, California, Utah and Texas. Additional information regarding PacWest Bancorp is available on the Internet at www.pacwestbancorp.com. Information regarding Pacific Western Bank is also available on the Internet at www.pacificwesternbank.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about PacWest that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to: failure to obtain regulatory or other required approvals; an inability to achieve expected cost savings in the amounts or timeframes discussed if at all, or the costs associated with transactions or the time needed to complete transactions being greater than expected; lower than expected revenues; credit quality deterioration or a reduction in real estate values could cause an increase in the allowance for credit losses and a reduction in net earnings; increased competitive pressure among depository institutions; the Company’s ability to complete future acquisitions, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies within expected time-frames or at all; settlements with the FDIC related to our loss-sharing arrangements from the Los Padres Bank and Affinity Bank acquisitions; the possibility that personnel changes will not proceed as planned; the cost of additional capital is more than expected; a change in the interest rate environment reduces net interest margins; asset/liability repricing risks and liquidity risks; pending legal matters may take longer or cost more to resolve or may be resolved adversely to the Company; general economic conditions, either nationally or in the market areas in which the Company does or anticipates doing business, are less favorable than expected; environmental conditions, including natural disasters, may disrupt our business, impede our operations, negatively impact the values of collateral securing the Company’s loans and leases or impair the ability of our borrowers to support their debt obligations; the economic and regulatory effects of the continuing war on terrorism and other events of war, including the conflicts in the Middle East; legislative or regulatory requirements or changes adversely affecting the Company’s business; changes in the securities markets; regulatory approvals for any capital activities cannot be obtained on the terms expected or on the anticipated schedule; and, other risks that are described in PacWest’s public filings with the U.S. Securities and Exchange Commission (the “SEC”). If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, PacWest’s results could differ materially from those expressed in, implied or projected by such forward-looking statements. PacWest assumes no obligation to update such forward-looking statements.
For a more complete discussion of risks and uncertainties, investors and security holders are urged to read PacWest Bancorp’s annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed by PacWest with the SEC. The documents filed by PacWest with the SEC may be obtained at PacWest Bancorp’s website at www.pacwestbancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from PacWest by directing a request to: PacWest Bancorp c/o Pacific Western Bank, 275 North Brea Boulevard, Brea, CA 92821. Attention: Investor Relations. Telephone 714-671-6800.
PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
| December 31, |
| September 30, |
| December 31, |
| |||
|
| 2012 |
| 2012 |
| 2011 |
| |||
|
| (In thousands, except per share and share data) |
| |||||||
ASSETS |
|
|
|
|
|
|
| |||
Cash and due from banks |
| $ | 89,011 |
| $ | 89,370 |
| $ | 92,342 |
|
Interest-earning deposits in financial institutions |
| 75,393 |
| 71,036 |
| 203,275 |
| |||
Total cash and cash equivalents |
| 164,404 |
| 160,406 |
| 295,617 |
| |||
|
|
|
|
|
|
|
| |||
Non-covered securities available-for-sale |
| 1,310,701 |
| 1,311,324 |
| 1,281,209 |
| |||
Covered securities available-for-sale |
| 44,684 |
| 45,887 |
| 45,149 |
| |||
Total securities available-for-sale, at estimated fair value |
| 1,355,385 |
| 1,357,211 |
| 1,326,358 |
| |||
Federal Home Loan Bank stock, at cost |
| 37,126 |
| 40,923 |
| 46,106 |
| |||
Total investment securities |
| 1,392,511 |
| 1,398,134 |
| 1,372,464 |
| |||
|
|
|
|
|
|
|
| |||
Non-covered loans and leases, net of unearned income |
| 3,046,970 |
| 3,050,891 |
| 2,807,713 |
| |||
Allowance for loan and lease losses |
| (65,899 | ) | (69,142 | ) | (85,313 | ) | |||
Total non-covered loans and leases, net |
| 2,981,071 |
| 2,981,749 |
| 2,722,400 |
| |||
Covered loans, net |
| 517,258 |
| 567,396 |
| 703,023 |
| |||
Total loans and leases, net |
| 3,498,329 |
| 3,549,145 |
| 3,425,423 |
| |||
|
|
|
|
|
|
|
| |||
Non-covered other real estate owned, net |
| 33,572 |
| 37,333 |
| 48,412 |
| |||
Covered other real estate owned, net |
| 22,842 |
| 26,374 |
| 33,506 |
| |||
Total other real estate owned, net |
| 56,414 |
| 63,707 |
| 81,918 |
| |||
|
|
|
|
|
|
|
| |||
Premises and equipment, net |
| 19,503 |
| 18,064 |
| 23,068 |
| |||
FDIC loss sharing asset |
| 57,475 |
| 72,640 |
| 95,187 |
| |||
Cash surrender value of life insurance |
| 68,326 |
| 67,900 |
| 67,469 |
| |||
Goodwill |
| 79,866 |
| 79,592 |
| 39,141 |
| |||
Core deposit and customer relationship intangibles, net |
| 14,723 |
| 15,899 |
| 17,415 |
| |||
Other assets |
| 112,107 |
| 113,015 |
| 110,535 |
| |||
Total assets |
| $ | 5,463,658 |
| $ | 5,538,502 |
| $ | 5,528,237 |
|
|
|
|
|
|
|
|
| |||
LIABILITIES |
|
|
|
|
|
|
| |||
Noninterest-bearing demand deposits |
| $ | 1,939,212 |
| $ | 2,006,996 |
| $ | 1,685,799 |
|
Interest-bearing deposits |
| 2,769,909 |
| 2,780,352 |
| 2,891,654 |
| |||
Total deposits |
| 4,709,121 |
| 4,787,348 |
| 4,577,453 |
| |||
Borrowings |
| 12,591 |
| 17,996 |
| 225,000 |
| |||
Subordinated debentures |
| 108,250 |
| 108,250 |
| 129,271 |
| |||
Accrued interest payable and other liabilities |
| 44,575 |
| 40,822 |
| 50,310 |
| |||
Total liabilities |
| 4,874,537 |
| 4,954,416 |
| 4,982,034 |
| |||
STOCKHOLDERS’ EQUITY (1) |
| 589,121 |
| 584,086 |
| 546,203 |
| |||
Total liabilities and stockholders’ equity |
| $ | 5,463,658 |
| $ | 5,538,502 |
| $ | 5,528,237 |
|
(1) Includes net unrealized gain on securities available-for-sale, net |
| $ | 32,900 |
| $ | 40,015 |
| $ | 22,803 |
|
|
|
|
|
|
|
|
| |||
Book value per share |
| $ | 15.74 |
| $ | 15.61 |
| $ | 14.66 |
|
Tangible book value per share |
| $ | 13.22 |
| $ | 13.06 |
| $ | 13.14 |
|
|
|
|
|
|
|
|
| |||
Shares outstanding (includes unvested restricted shares of 1,698,281 at December 31, 2012; 1,718,019 at September 30, 2012; and 1,675,730 at December 31, 2011) |
| 37,420,909 |
| 37,420,025 |
| 37,254,318 |
|
PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| |||||||||||
|
| December 31, |
| September 30, |
| December 31, |
| December 31, |
| |||||||
|
| 2012 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| |||||
|
| (In thousands, except per share data) |
| |||||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
Loans and leases |
| $ | 65,455 |
| $ | 66,711 |
| $ | 61,684 |
| $ | 260,230 |
| $ | 260,143 |
|
Investment securities |
| 8,173 |
| 8,346 |
| 9,107 |
| 35,657 |
| 34,785 |
| |||||
Deposits in financial institutions |
| 74 |
| 66 |
| 122 |
| 228 |
| 356 |
| |||||
Total interest income |
| 73,702 |
| 75,123 |
| 70,913 |
| 296,115 |
| 295,284 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
Deposits |
| 3,039 |
| 3,292 |
| 4,103 |
| 13,271 |
| 20,649 |
| |||||
Borrowings |
| 228 |
| 210 |
| 1,782 |
| 2,656 |
| 7,071 |
| |||||
Subordinated debentures |
| 832 |
| 850 |
| 1,255 |
| 3,721 |
| 4,923 |
| |||||
Total interest expense |
| 4,099 |
| 4,352 |
| 7,140 |
| 19,648 |
| 32,643 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income |
| 69,603 |
| 70,771 |
| 63,773 |
| 276,467 |
| 262,641 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Provision for credit losses: |
|
|
|
|
|
|
|
|
|
|
| |||||
Non-covered loans and leases |
| — |
| (2,000 | ) | — |
| (12,000 | ) | 13,300 |
| |||||
Covered loans |
| (4,333 | ) | (141 | ) | 4,122 |
| (819 | ) | 13,270 |
| |||||
Total provision for credit losses |
| (4,333 | ) | (2,141 | ) | 4,122 |
| (12,819 | ) | 26,570 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income after provision for credit losses |
| 73,936 |
| 72,912 |
| 59,651 |
| 289,286 |
| 236,071 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
| |||||
Service charges on deposit accounts |
| 3,063 |
| 3,108 |
| 3,326 |
| 12,852 |
| 13,829 |
| |||||
Other commissions and fees |
| 2,025 |
| 2,123 |
| 1,864 |
| 8,126 |
| 7,616 |
| |||||
Gain on sale of leases |
| 1,242 |
| 132 |
| — |
| 2,767 |
| — |
| |||||
Gain on sale of securities |
| 1,239 |
| — |
| — |
| 1,239 |
| — |
| |||||
Other-than-temporary impairment loss on covered security |
| — |
| — |
| — |
| (1,115 | ) | — |
| |||||
Increase in cash surrender value of life insurance |
| 300 |
| 304 |
| 337 |
| 1,264 |
| 1,443 |
| |||||
FDIC loss sharing income (expense), net |
| (6,022 | ) | (367 | ) | 2,667 |
| (10,070 | ) | 7,776 |
| |||||
Other income |
| 210 |
| 382 |
| 60 |
| 809 |
| 762 |
| |||||
Total noninterest income |
| 2,057 |
| 5,682 |
| 8,254 |
| 15,872 |
| 31,426 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
| |||||
Compensation |
| 23,269 |
| 23,812 |
| 21,597 |
| 94,967 |
| 86,800 |
| |||||
Occupancy |
| 6,773 |
| 6,964 |
| 7,137 |
| 28,113 |
| 28,685 |
| |||||
Data processing |
| 2,272 |
| 2,310 |
| 2,132 |
| 9,120 |
| 8,964 |
| |||||
Other professional services |
| 2,200 |
| 2,019 |
| 1,946 |
| 8,367 |
| 8,986 |
| |||||
Business development |
| 684 |
| 635 |
| 609 |
| 2,538 |
| 2,321 |
| |||||
Communications |
| 637 |
| 652 |
| 640 |
| 2,523 |
| 3,011 |
| |||||
Insurance and assessments |
| 1,270 |
| 1,398 |
| 1,590 |
| 5,284 |
| 7,171 |
| |||||
Non-covered other real estate owned, net |
| 316 |
| 1,883 |
| 1,714 |
| 4,150 |
| 7,010 |
| |||||
Covered other real estate owned, net |
| (461 | ) | 4,290 |
| 226 |
| 6,781 |
| 3,666 |
| |||||
Intangible asset amortization |
| 1,176 |
| 1,678 |
| 1,836 |
| 6,326 |
| 8,428 |
| |||||
Acquisition and integration |
| 1,092 |
| 2,101 |
| 600 |
| 4,089 |
| 600 |
| |||||
Debt termination |
| — |
| — |
| — |
| 22,598 |
| — |
| |||||
Other expenses |
| 4,297 |
| 3,915 |
| 3,442 |
| 16,806 |
| 14,351 |
| |||||
Total noninterest expense |
| 43,525 |
| 51,657 |
| 43,469 |
| 211,662 |
| 179,993 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings before income taxes |
| 32,468 |
| 26,937 |
| 24,436 |
| 93,496 |
| 87,504 |
| |||||
Income tax expense |
| (12,576 | ) | (10,849 | ) | (10,553 | ) | (36,695 | ) | (36,800 | ) | |||||
Net earnings |
| $ | 19,892 |
| $ | 16,088 |
| $ | 13,883 |
| $ | 56,801 |
| $ | 50,704 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic and diluted earnings per share |
| $ | 0.54 |
| $ | 0.43 |
| $ | 0.38 |
| $ | 1.54 |
| $ | 1.37 |
|
PACWEST BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND YIELD ANALYSIS
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| |||||||||||
|
| December 31, |
| September 30, |
| December 31, |
| December 31, |
| |||||||
|
| 2012 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| |||||
|
| (Dollars in Thousands) |
| |||||||||||||
Average Assets: |
|
|
|
|
|
|
|
|
|
|
| |||||
Loans and leases, net of unearned income |
| $ | 3,565,635 |
| $ | 3,565,637 |
| $ | 3,562,766 |
| $ | 3,548,369 |
| $ | 3,755,190 |
|
Investment securities |
| 1,364,457 |
| 1,377,016 |
| 1,309,931 |
| 1,373,640 |
| 1,100,869 |
| |||||
Interest-earning deposits in financial institutions |
| 116,406 |
| 101,491 |
| 186,147 |
| 87,600 |
| 136,447 |
| |||||
Federal funds sold |
| — |
| — |
| — |
| 2 |
| — |
| |||||
Average interest-earning assets |
| 5,046,498 |
| 5,044,144 |
| 5,058,844 |
| 5,009,611 |
| 4,992,506 |
| |||||
Other assets |
| 458,520 |
| 478,428 |
| 463,328 |
| 468,024 |
| 492,577 |
| |||||
Average total assets |
| $ | 5,505,018 |
| $ | 5,522,572 |
| $ | 5,522,172 |
| $ | 5,477,635 |
| $ | 5,485,083 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average liabilities: |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest checking deposits |
| $ | 512,322 |
| $ | 522,551 |
| $ | 488,783 |
| $ | 515,767 |
| $ | 491,145 |
|
Money market deposits |
| 1,257,094 |
| 1,248,723 |
| 1,229,387 |
| 1,219,457 |
| 1,227,482 |
| |||||
Savings deposits |
| 156,838 |
| 160,843 |
| 157,617 |
| 159,888 |
| 150,837 |
| |||||
Time deposits |
| 839,783 |
| 885,181 |
| 1,003,939 |
| 889,146 |
| 1,077,930 |
| |||||
Average interest-bearing deposits |
| 2,766,037 |
| 2,817,298 |
| 2,879,726 |
| 2,784,258 |
| 2,947,394 |
| |||||
Borrowings |
| 21,126 |
| 22,700 |
| 225,011 |
| 98,787 |
| 225,542 |
| |||||
Subordinated debentures |
| 108,250 |
| 108,250 |
| 129,319 |
| 112,015 |
| 129,432 |
| |||||
Average interest-bearing liabilities |
| 2,895,413 |
| 2,948,248 |
| 3,234,056 |
| 2,995,060 |
| 3,302,368 |
| |||||
Noninterest-bearing demand deposits |
| 1,977,999 |
| 1,956,929 |
| 1,702,543 |
| 1,870,088 |
| 1,627,729 |
| |||||
Other liabilities |
| 46,081 |
| 43,786 |
| 46,777 |
| 45,145 |
| 43,996 |
| |||||
Average total liabilities |
| 4,919,493 |
| 4,948,963 |
| 4,983,376 |
| 4,910,293 |
| 4,974,093 |
| |||||
Average stockholders’ equity |
| 585,525 |
| 573,609 |
| 538,796 |
| 567,342 |
| 510,990 |
| |||||
Average liabilities and stockholders’ equity |
| $ | 5,505,018 |
| $ | 5,522,572 |
| $ | 5,522,172 |
| $ | 5,477,635 |
| $ | 5,485,083 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average deposits |
| $ | 4,744,036 |
| $ | 4,774,227 |
| $ | 4,582,269 |
| $ | 4,654,346 |
| $ | 4,575,123 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Yield on: |
|
|
|
|
|
|
|
|
|
|
| |||||
Average loans and leases |
| 7.30 | % | 7.44 | % | 6.87 | % | 7.33 | % | 6.93 | % | |||||
Average investment securities |
| 2.38 | % | 2.41 | % | 2.76 | % | 2.60 | % | 3.16 | % | |||||
Average interest-earning deposits |
| 0.25 | % | 0.26 | % | 0.26 | % | 0.26 | % | 0.26 | % | |||||
Average interest-earning assets |
| 5.81 | % | 5.92 | % | 5.56 | % | 5.91 | % | 5.91 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cost of: |
|
|
|
|
|
|
|
|
|
|
| |||||
Average deposits/all-in deposit cost (1) |
| 0.25 | % | 0.27 | % | 0.36 | % | 0.29 | % | 0.45 | % | |||||
Average interest-bearing deposits |
| 0.44 | % | 0.46 | % | 0.57 | % | 0.48 | % | 0.70 | % | |||||
Average borrowings |
| 4.29 | % | 3.68 | % | 3.14 | % | 2.69 | % | 3.14 | % | |||||
Average subordinated debentures |
| 3.06 | % | 3.12 | % | 3.85 | % | 3.32 | % | 3.80 | % | |||||
Average interest-bearing liabilities |
| 0.56 | % | 0.59 | % | 0.88 | % | 0.66 | % | 0.99 | % | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest rate spread (2) |
| 5.25 | % | 5.33 | % | 4.68 | % | 5.25 | % | 4.92 | % | |||||
Net interest margin (3) |
| 5.49 | % | 5.58 | % | 5.00 | % | 5.52 | % | 5.26 | % |
(1) Cost of average deposits/all-in deposit cost is calculated as annualized interest expense on deposits divided by average deposits.
(2) Net interest rate spread is calculated as the yield on average interest-earning assets less the cost of average interest-bearing liabilities.
(3) Net interest margin is calculated as annualized net interest income divided by average interest-earning assets.
PACWEST BANCORP AND SUBSIDIARIES
LOAN CONCENTRATION
(Unaudited)
|
| December 31, 2012 |
| |||||||||||||
|
| Total Loans |
| Non-Covered Loans |
| Covered Loans |
| |||||||||
|
|
|
| % of |
|
|
| % of |
|
|
| % of |
| |||
|
| Amount |
| Total |
| Amount |
| Total |
| Amount |
| Total |
| |||
|
| (Dollars in thousands) |
| |||||||||||||
Real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Hospitality |
| $ | 184,032 |
| 5 | % | $ | 181,144 |
| 6 | % | $ | 2,888 |
| — |
|
SBA 504 |
| 54,158 |
| 1 | % | 54,158 |
| 2 | % | — |
| — |
| |||
Other |
| 2,234,701 |
| 61 | % | 1,682,368 |
| 55 | % | 552,333 |
| 94 | % | |||
Total real estate mortgage |
| 2,472,891 |
| 67 | % | 1,917,670 |
| 63 | % | 555,221 |
| 94 | % | |||
Real estate construction: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Residential |
| 54,291 |
| 1 | % | 48,629 |
| 1 | % | 5,662 |
| 1 | % | |||
Commercial |
| 98,888 |
| 3 | % | 81,330 |
| 3 | % | 17,558 |
| 3 | % | |||
Total real estate construction |
| 153,179 |
| 4 | % | 129,959 |
| 4 | % | 23,220 |
| 4 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total real estate loans |
| 2,626,070 |
| 71 | % | 2,047,629 |
| 67 | % | 578,441 |
| 98 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Collateralized |
| 467,779 |
| 13 | % | 453,176 |
| 14 | % | 14,603 |
| 2 | % | |||
Unsecured |
| 70,484 |
| 2 | % | 69,844 |
| 2 | % | 640 |
| — |
| |||
Asset-based |
| 239,430 |
| 7 | % | 239,430 |
| 8 | % | — |
| — |
| |||
SBA 7(a) |
| 25,325 |
| 1 | % | 25,325 |
| 1 | % | — |
| — |
| |||
Total commercial |
| 803,018 |
| 23 | % | 787,775 |
| 25 | % | 15,243 |
| 2 | % | |||
Leases (1) |
| 174,373 |
| 5 | % | 174,373 |
| 6 | % | — |
| — |
| |||
Consumer |
| 23,081 |
| 1 | % | 22,487 |
| 1 | % | 594 |
| — |
| |||
Foreign |
| 17,241 |
| 0 | % | 17,241 |
| 1 | % | — |
| — |
| |||
Total gross loans |
| $ | 3,643,783 |
| 100 | % | 3,049,505 |
| 100 | % | 594,278 |
| 100 | % | ||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Unearned income |
|
|
|
|
| (2,535 | ) |
|
| — |
|
|
| |||
Discount |
|
|
|
|
| — |
|
|
| (50,951 | ) |
|
| |||
Allowance for loan and lease losses |
|
|
|
|
| (65,899 | ) |
|
| (26,069 | ) |
|
| |||
Total net loans |
|
|
|
|
| $ | 2,981,071 |
|
|
| $ | 517,258 |
|
|
|
(1) Excludes leases in process of $1.7 million.
PACWEST BANCORP AND SUBSIDIARIES
NON-COVERED LOAN CONCENTRATION
REAL ESTATE MORTGAGE LOANS
(Unaudited)
|
| December 31, 2012 |
| September 30, 2012 |
| December 31, 2011 |
| |||||||||
|
|
|
| % of |
|
|
| % of |
|
|
| % of |
| |||
Loan Category |
| Amount |
| Total |
| Amount |
| Total |
| Amount |
| Total |
| |||
|
| (Dollars in thousands) |
| |||||||||||||
Commercial real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Industrial/warehouse |
| $ | 315,096 |
| 16.4 | % | $ | 329,287 |
| 17.1 | % | $ | 367,494 |
| 18.5 | % |
Retail |
| 271,412 |
| 14.2 | % | 255,669 |
| 13.3 | % | 286,691 |
| 14.5 | % | |||
Office buildings |
| 304,096 |
| 15.9 | % | 284,920 |
| 14.8 | % | 290,074 |
| 14.6 | % | |||
Owner-occupied |
| 195,170 |
| 10.2 | % | 196,812 |
| 10.2 | % | 226,307 |
| 11.4 | % | |||
Hotel |
| 181,144 |
| 9.4 | % | 118,189 |
| 6.1 | % | 144,402 |
| 7.3 | % | |||
Healthcare |
| 102,816 |
| 5.4 | % | 113,827 |
| 5.9 | % | 131,625 |
| 6.7 | % | |||
Mixed use |
| 51,294 |
| 2.7 | % | 47,404 |
| 2.5 | % | 53,855 |
| 2.7 | % | |||
Gas station |
| 29,632 |
| 1.5 | % | 28,563 |
| 1.5 | % | 33,715 |
| 1.7 | % | |||
Self storage |
| 29,688 |
| 1.5 | % | 19,489 |
| 1.0 | % | 23,148 |
| 1.2 | % | |||
Restaurant |
| 16,755 |
| 0.9 | % | 16,651 |
| 0.9 | % | 22,549 |
| 1.1 | % | |||
Land acquisition/development |
| 21,922 |
| 1.1 | % | 21,988 |
| 1.1 | % | 14,015 |
| 0.7 | % | |||
Unimproved land |
| 13,173 |
| 0.7 | % | 11,089 |
| 0.6 | % | 1,369 |
| 0.1 | % | |||
Other |
| 172,273 |
| 9.0 | % | 278,475 |
| 14.3 | % | 206,504 |
| 10.4 | % | |||
Total commercial real estate mortgage |
| 1,704,471 |
| 88.9 | % | 1,722,363 |
| 89.3 | % | 1,801,748 |
| 90.9 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Residential real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Multi-family |
| 103,742 |
| 5.4 | % | 86,190 |
| 4.5 | % | 93,866 |
| 4.7 | % | |||
Single family owner-occupied |
| 46,125 |
| 2.4 | % | 37,700 |
| 2.0 | % | 32,209 |
| 1.6 | % | |||
Single family nonowner-occupied |
| 12,789 |
| 0.7 | % | 7,165 |
| 0.4 | % | 19,341 |
| 1.0 | % | |||
HELOCs |
| 50,543 |
| 2.6 | % | 47,966 |
| 2.5 | % | 35,300 |
| 1.8 | % | |||
Other |
| — |
| 0.0 | % | 27,506 |
| 1.3 | % | — |
| — |
| |||
Total residential real estate mortgage |
| 213,199 |
| 11.1 | % | 206,527 |
| 10.7 | % | 180,716 |
| 9.1 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total gross non-covered real estate mortgage loans |
| $ | 1,917,670 |
| 100.0 | % | $ | 1,928,890 |
| 100.0 | % | $ | 1,982,464 |
| 100.0 | % |
PACWEST BANCORP AND SUBSIDIARIES
COVERED LOAN CONCENTRATION
REAL ESTATE MORTGAGE LOANS
(Unaudited)
|
| December 31, 2012 |
| June 30, 2012 |
| December 31, 2011 |
| |||||||||
|
|
|
| % of |
|
|
| % of |
|
|
| % of |
| |||
Loan Category |
| Amount |
| Total |
| Amount |
| Total |
| Amount |
| Total |
| |||
|
| (Dollars in thousands) |
| |||||||||||||
Commercial real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Industrial/warehouse |
| $ | 26,205 |
| 4.7 | % | $ | 26,510 |
| 4.4 | % | $ | 33,755 |
| 4.6 | % |
Retail |
| 96,659 |
| 17.4 | % | 94,437 |
| 15.5 | % | 113,289 |
| 15.4 | % | |||
Office buildings |
| 53,674 |
| 9.7 | % | 66,657 |
| 11.0 | % | 77,767 |
| 10.6 | % | |||
Owner-occupied |
| 17,301 |
| 3.1 | % | 20,164 |
| 3.3 | % | 24,837 |
| 3.4 | % | |||
Hotel |
| 2,888 |
| 0.5 | % | 2,903 |
| 0.5 | % | 2,944 |
| 0.4 | % | |||
Healthcare |
| 8,568 |
| 1.5 | % | 14,350 |
| 2.4 | % | 16,851 |
| 2.3 | % | |||
Mixed use |
| 2,919 |
| 0.5 | % | 5,728 |
| 0.9 | % | 7,733 |
| 1.1 | % | |||
Gas station |
| 5,131 |
| 0.9 | % | 5,141 |
| 0.8 | % | 6,001 |
| 0.8 | % | |||
Self storage |
| 48,937 |
| 8.8 | % | 50,110 |
| 8.3 | % | 52,793 |
| 7.2 | % | |||
Restaurant |
| 1,686 |
| 0.3 | % | 1,723 |
| 0.3 | % | 2,532 |
| 0.3 | % | |||
Unimproved land |
| 493 |
| 0.1 | % | 966 |
| 0.2 | % | 1,752 |
| 0.2 | % | |||
Other |
| 14,141 |
| 2.6 | % | 13,803 |
| 2.3 | % | 14,887 |
| 2.0 | % | |||
Total commercial real estate mortgage |
| 278,602 |
| 50.1 | % | 302,492 |
| 49.9 | % | 355,141 |
| 48.3 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Residential real estate mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Multi-family |
| 169,601 |
| 30.6 | % | 191,736 |
| 31.6 | % | 250,633 |
| 34.0 | % | |||
Single family owner-occupied |
| 78,960 |
| 14.2 | % | 80,360 |
| 13.3 | % | 95,248 |
| 12.9 | % | |||
Single family nonowner-occupied |
| 20,309 |
| 3.7 | % | 23,266 |
| 3.8 | % | 25,624 |
| 3.5 | % | |||
Mixed use |
| 2,474 |
| 0.4 | % | 2,858 |
| 0.5 | % | 2,918 |
| 0.4 | % | |||
HELOCs |
| 5,275 |
| 1.0 | % | 5,712 |
| 0.9 | % | 6,794 |
| 0.9 | % | |||
Total residential real estate mortgage |
| 276,619 |
| 49.9 | % | 303,932 |
| 50.1 | % | 381,217 |
| 51.7 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Total gross covered real estate mortgage loans |
| $ | 555,221 |
| 100.0 | % | $ | 606,424 |
| 100.0 | % | $ | 736,358 |
| 100.0 | % |
PACWEST BANCORP AND SUBSIDIARIES
NON-COVERED LOAN CONCENTRATION TREND
(Unaudited)
|
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
Loan Segment |
| 2012 |
| 2012 |
| 2012 |
| 2012 |
| 2011 |
| |||||
|
| (In thousands) |
| |||||||||||||
Real estate mortgage |
| $ | 1,917,670 |
| $ | 1,928,890 |
| $ | 1,828,777 |
| $ | 1,896,052 |
| $ | 1,982,464 |
|
Real estate construction |
| 129,959 |
| 152,748 |
| 129,107 |
| 118,304 |
| 113,059 |
| |||||
Commercial |
| 787,775 |
| 772,768 |
| 701,044 |
| 665,441 |
| 671,939 |
| |||||
Leases (1) |
| 174,373 |
| 161,934 |
| 153,793 |
| 153,845 |
| — |
| |||||
Consumer |
| 22,487 |
| 20,615 |
| 17,151 |
| 15,826 |
| 23,711 |
| |||||
Foreign: |
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial |
| 15,567 |
| 14,679 |
| 15,507 |
| 16,747 |
| 19,531 |
| |||||
Other, including real estate |
| 1,674 |
| 1,447 |
| 1,510 |
| 2,005 |
| 1,401 |
| |||||
Total gross non-covered loans and leases |
| $ | 3,049,505 |
| $ | 3,053,081 |
| $ | 2,846,889 |
| $ | 2,868,220 |
| $ | 2,812,105 |
|
(1) Does not include leases in process of $1.7 million, $15.1 million, $12.3 million and $13.8 million at December 31, 2012,
September 30, 2012, June 30, 2012 and March 31, 2012.
PACWEST BANCORP AND SUBSIDIARIES
COVERED LOAN CONCENTRATION TREND
(Unaudited)
|
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| December 31, |
| |||||
|
| 2012 |
| 2012 |
| 2012 |
| 2012 |
| 2011 |
| |||||
|
| (In thousands) |
| |||||||||||||
Real estate mortgage |
| $ | 555,221 |
| $ | 606,424 |
| $ | 650,997 |
| $ | 699,653 |
| $ | 736,358 |
|
Real estate construction |
| 23,220 |
| 26,595 |
| 32,125 |
| 41,191 |
| 46,918 |
| |||||
Commercial |
| 15,243 |
| 16,900 |
| 18,954 |
| 20,889 |
| 25,610 |
| |||||
Consumer |
| 594 |
| 618 |
| 659 |
| 686 |
| 735 |
| |||||
Total gross covered loans |
| 594,278 |
| 650,537 |
| 702,735 |
| 762,419 |
| 809,621 |
| |||||
Less: discount |
| (50,951 | ) | (52,437 | ) | (62,323 | ) | (66,312 | ) | (75,323 | ) | |||||
Less: allowance for loan losses |
| (26,069 | ) | (30,704 | ) | (31,463 | ) | (35,810 | ) | (31,275 | ) | |||||
Total covered loans, net |
| $ | 517,258 |
| $ | 567,396 |
| $ | 608,949 |
| $ | 660,297 |
| $ | 703,023 |
|
PACWEST BANCORP AND SUBSIDIARIES
NON-COVERED NONCLASSIFIED AND CLASSIFIED LOANS AND LEASES
(Unaudited)
|
| December 31, 2012 |
| |||||||
|
| Nonclassified |
| Classified |
| Total |
| |||
|
| (In thousands) |
| |||||||
Real estate mortgage: |
|
|
|
|
|
|
| |||
Hospitality |
| $ | 168,489 |
| $ | 12,655 |
| $ | 181,144 |
|
SBA 504 |
| 48,372 |
| 5,786 |
| 54,158 |
| |||
Other |
| 1,633,448 |
| 48,920 |
| 1,682,368 |
| |||
Total real estate mortgage |
| 1,850,309 |
| 67,361 |
| 1,917,670 |
| |||
Real estate construction: |
|
|
|
|
|
|
| |||
Residential |
| 46,591 |
| 2,038 |
| 48,629 |
| |||
Commercial |
| 77,503 |
| 3,827 |
| 81,330 |
| |||
Total real estate construction |
| 124,094 |
| 5,865 |
| 129,959 |
| |||
Commercial: |
|
|
|
|
|
|
| |||
Collateralized |
| 440,187 |
| 12,989 |
| 453,176 |
| |||
Unsecured |
| 66,947 |
| 2,897 |
| 69,844 |
| |||
Asset-based |
| 235,075 |
| 4,355 |
| 239,430 |
| |||
SBA 7(a) |
| 18,888 |
| 6,437 |
| 25,325 |
| |||
Total commercial |
| 761,097 |
| 26,678 |
| 787,775 |
| |||
Leases |
| 174,129 |
| 244 |
| 174,373 |
| |||
Consumer |
| 21,616 |
| 871 |
| 22,487 |
| |||
Foreign |
| 17,241 |
| — |
| 17,241 |
| |||
Total non-covered loans and leases |
| $ | 2,948,486 |
| $ | 101,019 |
| $ | 3,049,505 |
|
|
| September 30, 2012 |
| |||||||
|
| Nonclassified |
| Classified |
| Total |
| |||
|
| (In thousands) |
| |||||||
Real estate mortgage: |
|
|
|
|
|
|
| |||
Hospitality |
| $ | 105,417 |
| $ | 12,772 |
| $ | 118,189 |
|
SBA 504 |
| 48,971 |
| 6,112 |
| 55,083 |
| |||
Other |
| 1,715,968 |
| 39,650 |
| 1,755,618 |
| |||
Total real estate mortgage |
| 1,870,356 |
| 58,534 |
| 1,928,890 |
| |||
Real estate construction: |
|
|
|
|
|
|
| |||
Residential |
| 39,774 |
| 2,978 |
| 42,752 |
| |||
Commercial |
| 102,098 |
| 7,898 |
| 109,996 |
| |||
Total real estate construction |
| 141,872 |
| 10,876 |
| 152,748 |
| |||
Commercial: |
|
|
|
|
|
|
| |||
Collateralized |
| 417,379 |
| 15,651 |
| 433,030 |
| |||
Unsecured |
| 84,374 |
| 2,961 |
| 87,335 |
| |||
Asset-based |
| 225,700 |
| 701 |
| 226,401 |
| |||
SBA 7(a) |
| 19,117 |
| 6,885 |
| 26,002 |
| |||
Total commercial |
| 746,570 |
| 26,198 |
| 772,768 |
| |||
Leases |
| 161,514 |
| 420 |
| 161,934 |
| |||
Consumer |
| 19,745 |
| 870 |
| 20,615 |
| |||
Foreign |
| 16,126 |
| — |
| 16,126 |
| |||
Total non-covered loans |
| $ | 2,956,183 |
| $ | 96,898 |
| $ | 3,053,081 |
|
Note: | Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful. |
PACWEST BANCORP AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES ROLLFORWARD
AND NET CHARGE-OFF RATIOS FOR
NON-COVERED LOANS AND LEASES (1)
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| |||||||||||
|
| December 31, |
| September 30, |
| December 31, |
| December 31, |
| |||||||
|
| 2012 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| |||||
|
| (Dollars in thousands) |
| |||||||||||||
Allowance for credit losses, beginning of period |
| $ | 75,012 |
| $ | 78,031 |
| $ | 96,535 |
| $ | 93,783 |
| $ | 104,328 |
|
Loans charged-off: |
|
|
|
|
|
|
|
|
|
|
| |||||
Real estate mortgage |
| (1,789 | ) | (1,118 | ) | (321 | ) | (7,680 | ) | (10,180 | ) | |||||
Real estate construction |
| — |
| (492 | ) | (1,048 | ) | (492 | ) | (6,886 | ) | |||||
Commercial |
| (1,865 | ) | (492 | ) | (2,105 | ) | (4,580 | ) | (10,072 | ) | |||||
Leases |
| (28 | ) | — |
| — |
| (28 | ) | — |
| |||||
Consumer |
| (32 | ) | (25 | ) | (43 | ) | (290 | ) | (1,422 | ) | |||||
Total loans charged off |
| (3,714 | ) | (2,127 | ) | (3,517 | ) | (13,070 | ) | (28,560 | ) | |||||
Recoveries on loans charged-off: |
|
|
|
|
|
|
|
|
|
|
| |||||
Real estate mortgage |
| 381 |
| 845 |
| 164 |
| 1,598 |
| 513 |
| |||||
Real estate construction |
| 14 |
| 11 |
| 4 |
| 49 |
| 1,025 |
| |||||
Commercial |
| 368 |
| 218 |
| 508 |
| 1,600 |
| 1,668 |
| |||||
Consumer |
| 58 |
| 32 |
| 19 |
| 137 |
| 1,394 |
| |||||
Foreign |
| — |
| 2 |
| 70 |
| 22 |
| 115 |
| |||||
Total recoveries on loans charged off |
| 821 |
| 1,108 |
| 765 |
| 3,406 |
| 4,715 |
| |||||
Net charge-offs |
| (2,893 | ) | (1,019 | ) | (2,752 | ) | (9,664 | ) | (23,845 | ) | |||||
Provision for credit losses |
| — |
| (2,000 | ) | — |
| (12,000 | ) | 13,300 |
| |||||
Allowance for credit losses, end of period |
| $ | 72,119 |
| $ | 75,012 |
| $ | 93,783 |
| $ | 72,119 |
| $ | 93,783 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Annualized net charge-offs to average loans and leases |
| 0.38 | % | 0.14 | % | 0.39 | % | 0.33 | % | 0.81 | % |
(1) Applies only to non-covered loans and leases.
PACWEST BANCORP AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING
ASSETS AND CREDIT QUALITY RATIOS FOR
NON-COVERED LOANS AND LEASES
(Unaudited)
|
| December 31, |
| September 30, |
| December 31, |
| |||
|
| 2012 |
| 2012 |
| 2011 |
| |||
|
| (Dollars in thousands) |
| |||||||
Allowance for loan and lease losses (1) |
| $ | 65,899 |
| $ | 69,142 |
| $ | 85,313 |
|
Reserve for unfunded loan commitments (1) |
| 6,220 |
| 5,870 |
| 8,470 |
| |||
Total allowance for credit losses |
| $ | 72,119 |
| $ | 75,012 |
| $ | 93,783 |
|
|
|
|
|
|
|
|
| |||
Nonaccrual loans and leases (2) |
| $ | 39,284 |
| $ | 36,985 |
| $ | 58,260 |
|
Other real estate owned (2) |
| 33,572 |
| 37,333 |
| 48,412 |
| |||
Total nonperforming assets |
| $ | 72,856 |
| $ | 74,318 |
| $ | 106,672 |
|
|
|
|
|
|
|
|
| |||
Performing restructured loans (1) |
| $ | 106,288 |
| $ | 112,834 |
| $ | 116,791 |
|
|
|
|
|
|
|
|
| |||
Allowance for credit losses to loans and leases, net of unearned income |
| 2.37 | % | 2.46 | % | 3.34 | % | |||
Allowance for credit losses to nonaccrual loans and leases |
| 183.6 | % | 202.8 | % | 161.0 | % | |||
Nonperforming assets to loans and leases, net of unearned income, and other real estate owned |
| 2.37 | % | 2.41 | % | 3.73 | % | |||
Nonperforming assets to total assets |
| 1.33 | % | 1.34 | % | 1.93 | % | |||
Nonaccrual loans and leases to loans and leases, net of unearned income |
| 1.29 | % | 1.21 | % | 2.07 | % |
(1) Applies to non-covered loans.
(2) Excludes covered nonperforming assets.
PACWEST BANCORP AND SUBSIDIARIES
DEPOSITS
(Unaudited)
|
| December 31, |
| September 30, |
| December 31, |
| |||
Deposit Category |
| 2012 |
| 2012 |
| 2011 |
| |||
|
| (Dollars in thousands) |
| |||||||
Noninterest-bearing demand deposits (1) |
| $ | 1,939,212 |
| $ | 2,006,996 |
| $ | 1,685,799 |
|
Interest checking deposits |
| 513,389 |
| 499,734 |
| 500,998 |
| |||
Money market deposits |
| 1,282,513 |
| 1,262,406 |
| 1,265,282 |
| |||
Savings deposits |
| 153,680 |
| 155,871 |
| 157,480 |
| |||
Total core deposits |
| 3,888,794 |
| 3,925,007 |
| 3,609,559 |
| |||
Time deposits under $100,000 |
| 274,622 |
| 291,450 |
| 324,521 |
| |||
Time deposits of $100,000 and over |
| 545,705 |
| 570,891 |
| 643,373 |
| |||
Total time deposits |
| 820,327 |
| 862,341 |
| 967,894 |
| |||
Total deposits |
| $ | 4,709,121 |
| $ | 4,787,348 |
| $ | 4,577,453 |
|
|
|
|
|
|
|
|
| |||
Noninterest-bearing demand deposits as a percentage of total deposits |
| 41 | % | 42 | % | 37 | % | |||
Core deposits as a percentage of total deposits |
| 83 | % | 82 | % | 79 | % |
(1) The September 30, 2012 balance includes a $120 million deposit received at quarter-end. Such funds were withdrawn in October 2012.
PACWEST BANCORP AND SUBSIDIARIES
TIME DEPOSITS
(Unaudited)
|
| December 31, 2012 |
| |||||||||
|
| Time |
| Time |
|
|
|
|
| |||
|
| Deposits |
| Deposits |
| Total |
|
|
| |||
|
| Under |
| $100,000 |
| Time |
|
|
| |||
Maturity |
| $100,000 |
| or More |
| Deposits |
| Rate |
| |||
|
| (Dollars in thousands) |
| |||||||||
Due in three months or less |
| $ | 75,069 |
| $ | 148,125 |
| $ | 223,194 |
| 1.08 | % |
Due in over three months through six months |
| 73,080 |
| 142,467 |
| 215,547 |
| 1.58 | % | |||
Due in over six months through twelve months |
| 64,765 |
| 133,572 |
| 198,337 |
| 0.97 | % | |||
Due in over 12 months through 24 months |
| 48,078 |
| 87,269 |
| 135,347 |
| 0.94 | % | |||
Due in over 24 months |
| 13,630 |
| 34,272 |
| 47,902 |
| 1.06 | % | |||
Total |
| $ | 274,622 |
| $ | 545,705 |
| $ | 820,327 |
| 1.16 | % |
PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATIONS
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| |||||||||||
|
| December 31, |
| September 30, |
| December 31, |
| December 31, |
| |||||||
Adjusted Earnings Before Income Taxes |
| 2012 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| |||||
|
|
|
|
|
| (In thousands) |
|
|
|
|
| |||||
Earnings before income taxes |
| $ | 32,468 |
| $ | 26,937 |
| $ | 24,436 |
| $ | 93,496 |
| $ | 87,504 |
|
Plus: Total provision for credit losses |
| (4,333 | ) | (2,141 | ) | 4,122 |
| (12,819 | ) | 26,570 |
| |||||
Non-covered OREO expense, net |
| 316 |
| 1,883 |
| 1,714 |
| 4,150 |
| 7,010 |
| |||||
Covered OREO expense, net |
| (461 | ) | 4,290 |
| 226 |
| 6,781 |
| 3,666 |
| |||||
Other-than-temporary impairment loss on covered security |
| — |
| — |
| — |
| 1,115 |
| — |
| |||||
Acquisition and integration costs |
| 1,092 |
| 2,101 |
| 600 |
| 4,089 |
| 600 |
| |||||
Debt termination expense |
| — |
| — |
| — |
| 22,598 |
| — |
| |||||
Less: FDIC loss sharing income (expense), net |
| (6,022 | ) | (367 | ) | 2,667 |
| (10,070 | ) | 7,776 |
| |||||
Gain on sale of securities |
| 1,239 |
| — |
| — |
| 1,239 |
| — |
| |||||
Adjusted earnings before income taxes |
| $ | 33,865 |
| $ | 33,437 |
| $ | 28,431 |
| $ | 128,241 |
| $ | 117,574 |
|
|
| Three Months Ended |
| Year Ended |
| |||||||||||
|
| December 31, |
| September 30, |
| December 31, |
| December 31, |
| |||||||
Adjusted Efficiency Ratio |
| 2012 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| |||||
|
| (Dollars in thousands) |
| |||||||||||||
Noninterest expense |
| $ | 43,525 |
| $ | 51,657 |
| $ | 43,469 |
| $ | 211,662 |
| $ | 179,993 |
|
Less: Non-covered OREO expense, net |
| 316 |
| 1,883 |
| 1,714 |
| 4,150 |
| 7,010 |
| |||||
Covered OREO expense, net |
| (461 | ) | 4,290 |
| 226 |
| 6,781 |
| 3,666 |
| |||||
Acquisition and integration costs |
| 1,092 |
| 2,101 |
| 600 |
| 4,089 |
| 600 |
| |||||
Debt termination expense |
| — |
| — |
| — |
| 22,598 |
| — |
| |||||
Adjusted noninterest expense |
| $ | 42,578 |
| $ | 43,383 |
| $ | 40,929 |
| $ | 174,044 |
| $ | 168,717 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income |
| $ | 69,603 |
| $ | 70,771 |
| $ | 63,773 |
| $ | 276,467 |
| $ | 262,641 |
|
Noninterest income |
| 2,057 |
| 5,682 |
| 8,254 |
| 15,872 |
| 31,426 |
| |||||
Net revenues |
| 71,660 |
| 76,453 |
| 72,027 |
| 292,339 |
| 294,067 |
| |||||
Less: FDIC loss sharing income (expense), net |
| (6,022 | ) | (367 | ) | 2,667 |
| (10,070 | ) | 7,776 |
| |||||
Gain on sale of securities |
| 1,239 |
| — |
| — |
| 1,239 |
| — |
| |||||
Other-than-temporary impairment loss on covered security |
| — |
| — |
| — |
| (1,115 | ) | — |
| |||||
Adjusted net revenues |
| $ | 76,443 |
| $ | 76,820 |
| $ | 69,360 |
| $ | 302,285 |
| $ | 286,291 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Base efficiency ratio (1) |
| 60.7 | % | 67.6 | % | 60.4 | % | 72.4 | % | 61.2 | % | |||||
Adjusted efficiency ratio (2) |
| 55.7 | % | 56.5 | % | 59.0 | % | 57.6 | % | 58.9 | % |
(1) Noninterest expense divided by net revenues.
(2) Adjusted noninterest expense divided by adjusted net revenues.
PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATIONS
(Unaudited)
|
| December 31, |
| September 30, |
| December 31, |
| |||
Tangible Common Equity |
| 2012 |
| 2012 |
| 2011 |
| |||
|
| (Dollars in thousands) |
| |||||||
PacWest Bancorp Consolidated: |
|
|
|
|
|
|
| |||
Stockholders’ equity |
| $ | 589,121 |
| $ | 584,086 |
| $ | 546,203 |
|
Less: Intangible assets |
| 94,589 |
| 95,491 |
| 56,556 |
| |||
Tangible common equity |
| $ | 494,532 |
| $ | 488,595 |
| $ | 489,647 |
|
|
|
|
|
|
|
|
| |||
Total assets |
| $ | 5,463,658 |
| $ | 5,538,502 |
| $ | 5,528,237 |
|
Less: Intangible assets |
| 94,589 |
| 95,491 |
| 56,556 |
| |||
Tangible assets |
| $ | 5,369,069 |
| $ | 5,443,011 |
| $ | 5,471,681 |
|
|
|
|
|
|
|
|
| |||
Equity to assets ratio |
| 10.78 | % | 10.55 | % | 9.88 | % | |||
Tangible common equity ratio (1) |
| 9.21 | % | 8.98 | % | 8.95 | % | |||
|
|
|
|
|
|
|
| |||
Book value per share |
| $ | 15.74 |
| $ | 15.61 |
| $ | 14.66 |
|
Tangible book value per share (2) |
| $ | 13.22 |
| $ | 13.06 |
| $ | 13.14 |
|
Shares outstanding |
| 37,420,909 |
| 37,420,025 |
| 37,254,318 |
| |||
|
|
|
|
|
|
|
| |||
Pacific Western Bank: |
|
|
|
|
|
|
| |||
Stockholders’ equity |
| $ | 649,656 |
| $ | 660,693 |
| $ | 625,494 |
|
Less: Intangible assets |
| 94,589 |
| 95,491 |
| 56,556 |
| |||
Tangible common equity |
| $ | 555,067 |
| $ | 565,202 |
| $ | 568,938 |
|
|
|
|
|
|
|
|
| |||
Total assets |
| $ | 5,443,484 |
| $ | 5,520,998 |
| $ | 5,512,025 |
|
Less: Intangible assets |
| 94,589 |
| 95,491 |
| 56,556 |
| |||
Tangible assets |
| $ | 5,348,895 |
| $ | 5,425,507 |
| $ | 5,455,469 |
|
|
|
|
|
|
|
|
| |||
Equity to assets ratio |
| 11.93 | % | 11.97 | % | 11.35 | % | |||
Tangible common equity ratio (1) |
| 10.38 | % | 10.42 | % | 10.43 | % |
(1) Calculated as tangible common equity divided by tangible assets.
(2) Calculated as tangible common equity divided by shares outstanding.
PACWEST BANCORP AND SUBSIDIARIES
EARNINGS PER SHARE CALCULATIONS
(Unaudited)
|
| Three Months Ended |
| Year Ended |
| |||||||||||
|
| December 31, |
| September 30, |
| December 31, |
| December 31, |
| |||||||
|
| 2012 |
| 2012 |
| 2011 |
| 2012 |
| 2011 |
| |||||
|
| (In thousands, except per share data) |
| |||||||||||||
Basic Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net earnings |
| $ | 19,892 |
| $ | 16,088 |
| $ | 13,883 |
| $ | 56,801 |
| $ | 50,704 |
|
Less: earnings allocated to unvested restricted stock (1) |
| (678 | ) | (574 | ) | (470 | ) | (1,845 | ) | (2,072 | ) | |||||
Net earnings allocated to common shares |
| $ | 19,214 |
| $ | 15,514 |
| $ | 13,413 |
| $ | 54,956 |
| $ | 48,632 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted-average basic shares and unvested restricted stock outstanding |
| 37,420.3 |
| 37,413.2 |
| 37,260.8 |
| 37,369.5 |
| 37,141.5 |
| |||||
Less: weighted-average unvested restricted stock outstanding |
| (1,704.8 | ) | (1,712.8 | ) | (1,712.8 | ) | (1,685.4 | ) | (1,650.7 | ) | |||||
Weighted-average basic shares outstanding |
| 35,715.5 |
| 35,700.4 |
| 35,548.0 |
| 35,684.1 |
| 35,490.8 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic earnings per share |
| $ | 0.54 |
| $ | 0.43 |
| $ | 0.38 |
| $ | 1.54 |
| $ | 1.37 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Net earnings allocated to common shares |
| $ | 19,214 |
| $ | 15,514 |
| $ | 13,413 |
| $ | 54,956 |
| $ | 48,632 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted-average diluted shares outstanding |
| 35,715.5 |
| 35,700.4 |
| 35,548.0 |
| 35,684.1 |
| 35,490.8 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted earnings per share |
| $ | 0.54 |
| $ | 0.43 |
| $ | 0.38 |
| $ | 1.54 |
| $ | 1.37 |
|
(1) Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.
Contact information:
Matt Wagner, Chief Executive Officer, (310) 728-1020
Vic Santoro, Executive Vice President and CFO, (310) 728-1021