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| Acquisitions CapitalSource Merger Closing Date Balance Sheet and Purchase Accounting Adjustments At April 7, 2014 Purchase PACW/CSE Accounting Pro Forma Combined Adjustments PACW (In thousands) Assets: Cash and cash equivalents $850,143 $(527,118) $323,025 Investment securities 1,128,135 3,463 1,131,598 Loans and leases, net of unearned income 11,090,866 (48,146) 11,042,720 OREO 56,640 442 57,082 Goodwill and intangible assets 394,829 1,342,999 1,737,828 Deferred tax asset, net 246,797 54,128 300,925 Other assets 1,090,508 (6,753) 1,083,755 Total assets $14,857,918 $819,015 $15,676,933 Liabilities and Shareholders' Equity: Deposits 11,508,138 17183 11525321 Borrowings 6,490 - 6,490 Tangible Equity 1,637,751 Subordinated debentures 544,894 (111,235) 433,659 Tangible Capital Ratio 11.75% Discontinued operations 148,697 - 148,697 Tangible Book Other liabilities 197,943 (10,756) 187,187 Value Per Share $16.07 Total liabilities 12,406,162 (104,808) 12,301,354 Total shareholders' equity 2,451,756 923,823 3,375,579 $14,857,918 $819,015 $15,676,933 Purchase Accounting Estimated Accretion/ Description Adjustment Amortization Period (Dr. (Cr.)) Loans and non-operating leases $(215,019) 60 months using a level yield method Operating leases (in other assets) $(10,352) 48 months using a level yield method Investment in trust preferred securities $(3,352) Straight line over 280 months Core deposit intangible $6,720 Straight line over 84 months Time deposit premium $(17,183) 60 months using an accelerated method Subordinated debentures $111,235 Straight line over 280 months Investor Meetings | August 19-20, 2014 39 |