Pacwest Bancorp (PACW) 8-K Results of Operations and Financial Condition

Exhibit 99.1

PRESS RELEASE

PacWest Bancorp

(Nasdaq: PACW)

Contact:	Matthew P. Wagner	Victor R. Santoro
	President and CEO	Executive Vice President and CFO
	10250 Constellation Boulevard, Suite 1640	10250 Constellation Boulevard, Suite 1640
	Los Angeles, CA 90067	Los Angeles, CA 90067
Phone:	310-728-1020	310-728-1021
Fax:	310-201-0498	310-201-0498

FOR IMMEDIATE RELEASE October 22, 2014

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE THIRD QUARTER OF 2014

Highlights

·Net Earnings of $62.3 Million or $0.60 Per Diluted Share; Adjusted Net Earnings of $68.4 Million or $0.66 Per Diluted Share

·Core Net Interest Margin at 5.64%

·$384.8 Million of Organic Loan and Lease Growth in the Quarter Driven by $974.7 Million of Production

·Demand Deposits Increased $141.1 Million in the Quarter and are 25% of Total Deposits

·Core Deposits Increased $268.8 Million in the Quarter and are 52% of Total Deposits

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the third quarter of 2014 of $62.3 million, or $0.60 per diluted share, compared to net earnings for the second quarter of 2014 of $10.6 million, or $0.10 per diluted share. When certain income and expense items described below are excluded, adjusted net earnings are $68.4 million, or $0.66 per diluted share, for the third quarter of 2014 and $63.8 million, or $0.64 per diluted share, for the second quarter of 2014.

Matt Wagner, President and CEO, commented, “The operating metrics of our third quarter are outstanding. We originated $975 million of loans and leases resulting in annualized portfolio growth of 14%. Core deposits grew $269 million during the quarter, with $85 million of such growth coming from CapitalSource division borrowers. At September 30, CapitalSource division borrowers had $193 million on deposit with us and our team continues to have a strong pipeline. On the earnings side, we posted a robust adjusted earnings of $68.4 million, or $0.66 per share, that represent a 1.73% return on average assets and a 15.8% return on average tangible equity. Our credit quality remains strong, with substantial reductions in nonaccrual and classified loans and leases. These strong operating results, along with the asset generation momentum from the CapitalSource merger, position us well for continued growth and success.”

Vic Santoro, Executive Vice President and CFO, stated “Our net interest margin and expense control were strong in the third quarter. Our core net interest margin remains quite solid at 5.64%. The third quarter adjusted efficiency ratio at 43% held steady with the second quarter.  We continue to build capital, with a tangible common equity ratio of 12.2% at the end of September.”

1

FINANCIAL HIGHLIGHTS

	At or For the Three Months Ended									At or For the Nine Months Ended
	September 30,			June 30,						September 30,
Financial Highlights: (1)	2014			2014			Change			2014			2013			Change
	(Dollars in thousands, except per share data)
Total Assets	$	15,938,345		$	15,684,866		$	253,479		$	15,938,345		$	6,616,855		$	9,321,490
Gross Loans and Leases	11,591,395			11,200,524			390,871			11,591,395			4,384,312			7,207,083
Total Deposits	11,523,437			11,667,797			(144,360		)	11,523,437			5,433,144			6,090,293
Net Earnings	62,271			10,555			51,716			97,906			42,006			55,900
Diluted Earnings Per Share	$	0.60		$	0.10		$	0.50		$	1.18		$	1.03		$	0.15
Annualized Return on Average Assets	1.57		%	0.28		%	1.29			1.05		%	0.95		%	0.10
Adjusted Net Earnings (2)	$	68,356		$	63,814		$	4,542		$	154,740		$	59,564		$	95,176
Adjusted Diluted Earnings Per Share (2)	$	0.66		$	0.64		$	0.02		$	1.86		$	1.47		$	0.39
Annualized Adjusted Return on Average Assets (2)	1.73		%	1.70		%	0.03			1.66		%	1.34		%	0.32
Annualized Return on Average Tangible Equity (2)	14.36		%	2.65		%	11.71			10.01		%	10.52		%	(0.51		)
Annualized Adjusted Return on Average Tangible Equity (2)	15.76		%	16.05		%	(0.29		)	15.83		%	14.92		%	0.91
Noninterest-Bearing Deposits as a Percentage of Total Deposits	25		%	23		%	2			25		%	43		%	(18		)
Core Deposits as a Percentage of Total Deposits	52		%	49		%	3			52		%	87		%	(35		)
Tangible Common Equity Ratio (2)	12.24		%	12.14		%	0.10			12.24		%	9.12		%	3.12
Tangible Book Value Per Share (2)	$	16.86		$	16.43		$	0.43		$	16.86		$	12.62		$	4.24
Net Interest Margin	5.78		%	6.24		%	(0.46		)	5.99		%	5.36		%	0.63
Core Net Interest Margin (2)	5.64		%	5.74		%	(0.10		)	5.64		%	5.28		%	0.36
Efficiency Ratio	46.6		%	84.5		%	(37.9		)	63.7		%	73.3		%	(9.6		)
Adjusted Efficiency Ratio (2)	43.4		%	43.1		%	0.3			45.8		%	61.5		%	(15.7		)
Annualized Operating Expense as a Percentage of Average Assets	2.09		%	2.14		%	(0.05		)	2.29		%	3.18		%	(0.89		)

(1) Includes the acquisition of First California Financial Group, Inc. on May 31, 2013 and CapitalSource Inc. on April 7, 2014.

(2) Non-GAAP measure

2

ADJUSTED NET EARNINGS

In evaluating its earnings, the Company removes certain items to arrive at adjusted net earnings and adjusted diluted earnings per share, as detailed below:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands)
Reported net earnings	$	62,271		$	10,555		$	24,163		$	97,906		$	42,006
Subtract: Tax (benefit) expense on discontinued operations	(3		)	(476		)	16			(1,067		)	(18		)
Add: Tax expense on continuing operations	42,205			14,846			11,243			71,627			20,868
Reported pre-tax earnings	104,473			24,925			35,422			168,466			62,856
Add: Acquisition, integration and reorganization costs	5,193			86,242			5,450			93,635			24,139
Subtract: FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
(Loss) gain on sale of loans and leases	973			(485		)	604			594			1,108
Gain on securities	—			89			5,222			4,841			5,631
Covered OREO (expense) income, net	(452		)	185			332			1,348			1,239
Gain on sale of owned office building	—			—			—			1,570			—
Adjusted pre-tax earnings before accelerated discount accretion on acquired loan payoffs	116,560			119,903			41,746			281,118			94,596
Subtract: Accelerated discount accretion resulting from payoffs of acquired loans	4,501			15,290			2,105			27,446			2,959
Adjusted pre-tax earnings	112,059			104,613			39,641			253,672			91,637
Tax expense (1)	(43,703		)	(40,799		)	(13,874		)	(98,932		)	(32,073		)
Adjusted net earnings	$	68,356		$	63,814		$	25,767		$	154,740		$	59,564
Annualized adjusted return on average assets	1.73		%	1.70		%	1.53		%	1.66		%	1.34		%
Adjusted diluted earnings per share	$	0.66		$	0.64		$	0.56		$	1.86		$	1.47

(1) Full-year expected effective tax rate of 39% used in 2014 periods and actual effective tax rate of 35% used in 2013 periods.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased $3.7 million to $188.8 million for the third quarter of 2014 compared to $192.5 million for the second quarter of 2014 due to lower accelerated discount accretion resulting from payoffs of acquired loans offset by higher interest income from higher average loan and lease balances. Net interest margin (“NIM”) for the third quarter of 2014 was 5.78%, compared to 6.24% for the second quarter of 2014 and the loan yield was 6.68% compared to 7.34% for the second quarter of 2014. The decrease in the NIM and the loan yield are both due to lower accelerated discount accretion from payoffs of acquired loans. Accelerated accretion resulting from payoffs of acquired loans was $4.5 million in the third quarter (16 basis points on the loan and lease yield) compared to $15.3 million in the second quarter (58 basis points on the loan and lease yield), a decrease of $10.8 million. Nevertheless, when accelerated accretion is excluded, interest income on loans and leases increased $8.5 million quarter over quarter as a direct result of the $1.9 billion of loans and leases originated and purchased since March 31, 2014.

3

The total cost of deposits increased to 0.30% from 0.26% in the prior quarter due primarily to a lower amount of premium accretion on the time deposits acquired in the CapitalSource merger. The outflow of maturing higher-rate time deposits, and the retention of a portion of these deposits at current rates, resulted in the decline in the weighted average contractual rate of time deposits to 0.80% at September 30th from 0.89% at June 30th.

Net interest margin information is presented in the following table for the periods indicated:

	Three Months Ended
	September 30,			June 30,
Net Interest Margin	2014			2014
	(In thousands)
Average Assets:
Loans and leases	$	11,285,689		$	10,500,521
Investment securities	1,584,811			1,606,848
Deposits in financial institutions	99,276			276,095
Average interest-earning assets	12,969,776			12,383,464
Other assets	2,746,763			2,653,637
Average total assets	$	15,716,539		$	15,037,101
Average Liabilities:
Interest-bearing deposits	$	8,778,642		$	8,629,482
Borrowings	96,711			39,931
Subordinated debentures	434,625			409,934
Average interest-bearing liabilities	9,309,978			9,079,347
Noninterest-bearing demand deposits	2,778,260			2,546,540
Other liabilities	163,182			178,196
Average total liabilties	12,251,420			11,804,083
Average stockholders’ equity	3,465,119			3,233,018
Average liabilities and stockholders’ equity	$	15,716,539		$	15,037,101
Average time deposits	$	5,680,732		$	5,613,601
Average total deposits	$	11,556,902		$	11,176,022
Average funding sources	$	12,088,238		$	11,625,887
Yield on:
Average loans and leases	6.68		%	7.34		%
Average investment securities	3.09		%	2.99		%
Average interest-earning assets	6.19		%	6.62		%
Cost of:
Average total deposits	0.30		%	0.26		%
Average time deposits	0.51		%	0.42		%
Average interest-bearing deposits	0.40		%	0.34		%
Average borrowings	0.30		%	2.00		%
Average subordinated debentures	4.21		%	4.22		%
Average interest-bearing liabilities	0.58		%	0.52		%
Average funding sources	0.44		%	0.41		%
Net interest rate spread	5.61		%	6.10		%
Net interest margin	5.78		%	6.24		%

4

The NIM and loan and lease yield are impacted by accelerated accretion of acquisition discounts resulting from acquired loan payoffs that cause volatility. The effects of this item are shown in the following table for the periods indicated:

	Three Months Ended				Three Months Ended
	September 30, 2014				June 30, 2014
			Loan and				Loan and
	NIM		Lease Yield		NIM		Lease Yield
Reported	5.78	%	6.68	%	6.24	%	7.34	%
Less: Accelerated accretion of acquistion discounts resulting from acquired loan payoffs	(0.14	)%	(0.16	)%	(0.50	)%	(0.58	)%
Core (non-GAAP measure)	5.64	%	6.52	%	5.74	%	6.76	%

The impact on the NIM from all purchase accounting items is detailed in the table below for the period indicated:

	Three Months Ended
	September 30, 2014
				Impact on
	Amount			NIM
	(Dollars in thousands)
NIM - as reported	$	188,846		5.78	%
Less: Accelerated accretion of acquisition discounts from early acquired loan payoffs	(4,501		)	(0.14	)%
Remaining accretion of Non-PCI loan acqusition discounts	(15,072		)	(0.46	)%
Amortization of TruPS discount	1,402			0.04	%
Accretion of time deposits premium	(5,081		)	(0.16	)%
	(23,252		)	(0.72	)%
NIM - excluding purchase accounting	$	165,594		5.06	%

Noninterest Income

Noninterest income increased by $7.8 million to $16.3 million for the third quarter of 2014 compared to $8.5 million for the second quarter of 2014 due mostly to higher gain on sales of loans and leases, lower FDIC loss sharing expense and higher other income.  The increase in other income is attributed to higher dividends on other equity investments and higher foreign currency translation net gains.  The increase in other commissions and fees is due to higher unused commitment fees and prepayment fees. FDIC loss sharing expense decreased $1.1 million due mostly to lower amortization of the FDIC loss sharing asset as one of the Bank’s loss sharing agreements reached the end of its initial indemnification period during the quarter.

5

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

	Three Months Ended
	September 30,			June 30,			Increase
Noninterest Income	2014			2014			(Decrease)
	(In thousands)
Service charges on deposit accounts	$	2,725		$	2,719		$	6
Other commissions and fees	6,371			5,743			628
Leased equipment income	5,615			5,672			(57		)
Gain (loss) on sale of loans and leases	973			(485		)	1,458
Gain on securities	—			89			(89		)
FDIC loss sharing expense, net	(7,415		)	(8,525		)	1,110
Other income:
Dividends and realized gains on equity investments	3,625			658			2,967
Foreign currency translation net gains	2,253			251			2,002
Income recognized on early repayment of leases	510			961			(451		)
Other	1,657			1,396			261
Total noninterest income	$	16,314		$	8,479		$	7,835

The following table presents the details of FDIC loss sharing expense for the periods indicated:

	Three Months Ended
	September 30,			June 30,			Increase
FDIC Loss Sharing Expense, Net	2014			2014			(Decrease)
	(In thousands)
Loss on FDIC loss sharing asset	$	(1,735	)	$	(991	)	$	(744	)
FDIC loss sharing asset amortization, net	(6,074		)	(7,270		)	1,196
Net reimbursement (to) from FDIC for covered OREOs	491			(175		)	666
Other	(97		)	(89		)	(8		)
FDIC loss sharing expense, net	$	(7,415	)	$	(8,525	)	$	1,110

Noninterest Expense

Noninterest expense decreased by $74.3 million to $95.6 million for the third quarter of 2014 compared to $169.9 million for the second quarter of 2014. The decrease was due mostly to lower acquisition, integration and reorganization costs which decreased $81.0 million, offset by higher foreclosed assets expense of $4.3 million and higher operating expenses of $2.6 million.  The increase in foreclosed assets expense was mostly due to write-downs on existing properties.

Operating expenses increased to $82.6 million for the third quarter of 2014 compared to $80.1 million for the second quarter of 2014 due to increases in compensation, other professional services and other expenses.  Compensation expense was affected by a number of items including:

·Lower base salaries and payroll taxes of $1.8 million;

·Higher incentive compensation expense of $1.9 million, largely due to the level of loan and lease originations; and

·Higher restricted stock expense of $600,000; as new awards were made in May 2014, the third quarter included three months of amortization expense compared to two months in the second quarter.

6

Other professional services increased due to higher legal and other consulting expenses related to corporate initiatives. Other expenses increased due to higher loan-related expenses related to origination and work-out activities and an accrual for loan-related litigation exposure.

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

	Three Months Ended
	September 30,		June 30,		Increase
Noninterest Expense	2014		2014		(Decrease)
	(In thousands)
Compensation	$	45,861	$	45,081	$	780
Occupancy	11,188		11,078		110
Data processing	3,929		4,099		(170		)
Other professional services	3,687		2,843		844
Insurance and assessments	3,020		3,179		(159		)
Intangible asset amortization	1,608		1,677		(69		)
Other expense:
Loan expense	3,711		3,024		687
Communications	1,369		1,421		(52		)
Other	8,275		7,670		605
Total operating expense	82,648		80,072		2,576
Leased equipment depreciation	2,961		3,095		(134		)
Foreclosed assets expense, net	4,827		497		4,330
Acquisition, integration and reorganization costs	5,193		86,242		(81,049		)
Total noninterest expense	$	95,629	$	169,906	$	(74,277	)

Income Taxes

Our overall effective income tax rate was 40.4% for the third quarter of 2014 and 57.7% for the second quarter of 2014.  The second quarter effective tax rate was driven higher than normal by the non-deductibility and tax treatment of certain acquisition, integration and reorganization costs.  When these items are excluded, the second quarter adjusted effective tax rate was 40.2%.

7

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Total loans and leases increased $384.8 million in the third quarter to $11.6 billion at September 30, 2014. The loan and lease growth in the third quarter represents an annualized growth rate of 14%.

The following table presents a roll forward of the loan and lease portfolio for the periods indicated:

	Three Months Ended
	September 30,			June 30,
Loan and Lease Roll Forward (1)	2014			2014
	(In thousands)
Beginning balance	$	11,190,105		$	4,161,067
Loans and leases originated and purchased	974,658			881,281
Existing loans and leases:
Principal repayments, net (2)	(535,758		)	(710,818		)
Loan and lease sales	(13,039		)	(21,371		)
Transfers to loans held for sale	(33,125		)	—
Transfers to foreclosed assets	—			(655		)
Charge-offs	(7,956		)	(5,434		)
Loans and leases acquired through acquisition	—			6,886,035
Ending balance	$	11,574,885		$	11,190,105

(1)Includes direct financing leases but excludes equipment leased to others under operating leases.

(2)Includes principal repayments on existing loans, changes in revolving lines of credit (repayments and draws) and other changes within the loan portfolio.

The following table presents a roll forward of the loan and lease portfolio by segment for the period indicated:

	Three Months Ended September 30, 2014
	PWB
	Community			National
Loan and Lease Roll Forward by Segment	Banking			Lending			Total
	(In thousands)
Beginning balance	$	3,521,367		$	7,668,738		$	11,190,105
Loans and leases originated and purchased	236,384			738,274			974,658
Existing loans and leases:
Principal repayments, net	(269,365		)	(266,393		)	(535,758		)
Loan and lease sales	(223		)	(12,816		)	(13,039		)
Transfers to loans held for sale	—			(33,125		)	(33,125		)
Charge-offs	(6,038		)	(1,918		)	(7,956		)
Ending balance	$	3,482,125		$	8,092,760		$	11,574,885
Weighted average rate on originations	4.73		%	5.56		%	5.34		%

8

The following table presents the composition of our loan and lease portfolio as of the dates indicated:

	September 30,		June 30,
Loan and Lease Portfolio	2014		2014
	(In thousands)
Real estate mortgage:
Hospitality	$	530,628	$	560,832
SBA	357,923		352,492
Commercial real estate	2,492,883		2,390,066
Healthcare real estate	1,006,164		976,539
Multi-family	811,234		857,907
Other	514,283		457,746
Total real estate mortgage	5,713,115		5,595,582
Real estate construction:
Residential	72,881		73,488
Commercial	218,389		235,018
Total real estate construction	291,270		308,506
Commercial:
Collateralized	429,011		446,754
Unsecured	127,150		145,632
Asset-based	1,594,488		1,488,267
Cash flow	2,341,511		2,167,135
Equipment finance	928,460		932,554
SBA	41,129		42,333
Total commercial	5,461,749		5,222,675
Consumer	108,751		63,342
Total loans and leases, net of deferred fees	$	11,574,885	$	11,190,105

Deposits

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

	September 30, 2014				June 30, 2014
			% of				% of
Deposit Category	Amount		Total		Amount		Total
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	2,842,488	25	%	$	2,701,434	23	%
Interest checking deposits	683,014		6	%	587,418		5	%
Money market deposits	1,721,563		15	%	1,688,773		14	%
Savings deposits	759,893		6	%	760,553		7	%
Total core deposits	6,006,958		52	%	5,738,178		49	%
Time deposits under $100,000	2,267,013		20	%	2,251,473		19	%
Time deposits of $100,000 and over	3,249,466		28	%	3,678,146		32	%
Total time deposits	5,516,479		48	%	5,929,619		51	%
Total deposits	$	11,523,437	100	%	$	11,667,797	100	%

9

The following table summarizes the maturities of our time deposits as of the date indicated:

	September 30, 2014
	Time Deposits		Time Deposits		Total				Estimated
	Under		$100,000		Time		Contractual		Effective
Time Deposit Maturities	$100,000		or More		Deposits		Rate		Rate
	(Dollars in thousands)
Due in three months or less	$	611,767	$	925,768	$	1,537,535	0.81	%	0.65	%
Due in over three months through six months	539,313		735,895		1,275,208		0.77	%	0.67	%
Due in over six months through twelve months	892,299		1,327,287		2,219,586		0.78	%	0.72	%
Due in over 12 months through 24 months	152,307		179,141		331,448		1.01	%	0.72	%
Due in over 24 months	71,327		81,375		152,702		0.97	%	0.70	%
Total	$	2,267,013	$	3,249,466	$	5,516,479	0.80	%	0.69	%
At June 30, 2014	$	2,251,473	$	3,678,146	$	5,929,619	0.89	%	0.69	%

At September 30, 2014, core deposits totaled $6.0 billion, or 52% of total deposits, and noninterest-bearing demand deposits, which totaled $2.8 billion, were 25% of total deposits. The remaining purchase accounting premium on acquired CapitalSource time deposits was $5.9 million at September 30, 2014 with a weighted average life of 11 months.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

We made a provision for credit losses of $5.0 million in both the third and second quarters of 2014 in accordance with our loan methodology, which takes into consideration new loan and lease fundings, commitments to make loans and leases, and underlying credit quality trends.  The third quarter provision is comprised of $2.7 million for Non-PCI loans and $2.3 million for PCI loans.  The provision for PCI loans results from decreases in expected cash flows on such loans, which have a net carrying value of $351.4 million at September 30th.

The following tables show roll forwards of the allowance for credit losses for the second and third quarters:

	Three Months Ended June 30, 2014
	Non-PCI
Allowance for Credit	Loans and			Unfunded			Total			PCI
Losses Rollforward	Leases			Commitments			Non-PCI			Loans			Total
	(In thousands)
Beginning Balance	$	59,980		$	6,975		$	66,955		$	21,200		$	88,155
Charge-offs	(830		)	—			(830		)	(4,604		)	(5,434		)
Recoveries	1,242			—			1,242			—			1,242
Provision (negative provision)	5,131			(131		)	5,000			30			5,030
Ending Balance	$	65,523		$	6,844		$	72,367		$	16,626		$	88,993

10

	Three Months Ended September 30, 2014
	Non-PCI
Allowance for Credit	Loans and			Unfunded			Total			PCI
Losses Rollforward	Leases			Commitments			Non-PCI			Loans			Total
	(In thousands)
Beginning Balance	$	65,523		$	6,844		$	72,367		$	16,626		$	88,993
Charge-offs	(7,848		)	—			(7,848		)	(108		)	(7,956		)
Recoveries	1,725			—			1,725			—			1,725
Provision (negative provision)	3,684			(931		)	2,753			2,297			5,050
Ending Balance	$	63,084		$	5,913		$	68,997		$	18,815		$	87,812

Non-PCI loans and leases include $4.2 billion of originated loans and leases that were not obtained through acquisitions. The allowance related to these loans and leases totals $60.0 million, or 1.43% of the outstanding balance.

All acquired loans are recorded initially at their estimated fair value with such initial fair value including an estimate of credit losses. The two additional credit coverage ratios shown in the table below are presented to give an indication of overall credit risk coverage:

	September 30, 2014								June 30, 2014
	Non-PCI								Non-PCI
Credit Risk Coverage Ratios	Loans and			Allowance/			Coverage		Loans and			Allowance/			Coverage
(Excludes PCI Loans)	Leases			Discount			Ratio		Leases			Discount			Ratio
	(Dollars in thousands)
Ending balance	$	11,239,964		$	68,997		0.61	%	$	10,802,053		$	72,367		0.67	%
Acquired loans	(7,039,518		)	(3,038		)(1)			(7,327,541		)	(396		)(1)
Adjusted balance	$	4,200,446		$	65,959		1.57	%	$	3,474,512		$	71,971		2.07	%
Ending Balance	$	11,239,964		$	68,997		0.61	%	$	10,802,053		$	72,367		0.67	%
Unamortized net discount	179,424			179,424		(2)			196,950			196,950		(2)
Adjusted balance	$	11,419,388		$	248,421		2.18	%	$	10,999,003		$	269,317		2.45	%

(1)Allowance attributed to $7.0 billion and $7.3 billion of acquired Non-PCI loans at September 30, 2014 and June 30, 2014, based on the allowance calculation that includes an amount for credit deterioration on acquired loans and leases since their acquisition dates.

(2)Unamortized net discount relates to $7.0 billion and $7.3 billion of acquired Non-PCI loans at September 30, 2014 and June 30, 2014, and is assigned specifically to those loans only.  Such discount represents the acquisition date fair value adjustment based on market, liquidity, and interest rate risk in addition to credit risk and is being accreted to interest income over the remaining life of the respective loans.

The decrease in coverage ratios results from the combination of charge-offs on loans that were reserved for in the second quarter, the full payoff of a significant classified loan in the third quarter, and a lower balance of unamortized discount.

11

CREDIT QUALITY

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

	September 30,			June 30,
Non-PCI Credit Quality Metrics	2014			2014
	(Dollars in thousands)
Allowance for credit losses	$	68,997		$	72,367
Nonaccrual loans and leases (1)	88,948			96,802
Classified loans and leases (2)	260,986			304,627
Performing restructured loans	34,308			33,741
Net charge-offs (recoveries) (for the quarter)	6,123			(412		)
Provision for credit losses (for the quarter)	2,753			5,000
Allowance for credit losses to loans and leases	0.61		%	0.67		%
Allowance for credit losses to nonaccrual loans and leases	77.6		%	74.8		%
Nonperforming assets to loans and leases and foreclosed assets	1.15		%	1.39		%
Classified loans and leases to loans and leases	2.32		%	2.82		%

(1)At September 30, 2014 and June 30, 2014, includes $24,465 and $37,515, respectively, of acquired loans and leases with no allowance due to fair value accounting.

(2)Classified loans and leases are those with a credit risk rating of substandard or doubtful.

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

	Nonaccrual Loans and Leases								Accruing and
	September 30, 2014				June 30, 2014				30-89 Days Past Due
			% of				% of		September 30,		June 30,
			Loan				Loan		2014		2014
	Balance		Category		Balance		Category		Balance		Balance
	(Dollars in thousands)
Real estate mortgage:
Hospitality	$	6,451	1	%	$	6,552	1	%	$	—	$	—
SBA	7,483		2	%	8,032		2	%	529		1,233
Other	26,575		1	%	28,098		1	%	4,014		1,427
Total real estate mortgage	40,509		1	%	42,682		1	%	4,543		2,660
Real estate construction:
Residential	925		1	%	927		1	%	—		—
Commercial	2,703		1	%	2,737		1	%	1,190		—
Total real estate construction	3,628		1	%	3,664		1	%	1,190		—
Commercial:
Collateralized	5,165		1	%	11,247		3	%	—		575
Unsecured	226		—		322		—		1		145
Asset-based	5,003		—		4,874		—		—		—
Cash flow	15,958		1	%	15,793		—		—		—
Equipment finance	12,885		1	%	10,576		1	%	—		—
SBA	2,039		5	%	4,096		10	%	—		75
Total commercial	41,276		1	%	46,908		1	%	1		795
Consumer	3,535		3	%	3,548		6	%	165		128
Total Non-PCI loans and leases	$	88,948	1	%	$	96,802	1	%	$	5,899	$	3,583

12

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

	September 30,			June 30,
Nonperforming Assets	2014			2014
	(Dollars in thousands)
Nonaccrual Non-PCI loans and leases	$	88,948		$	96,802
Nonaccrual PCI Loans (1)	27,670			38,467
Foreclosed assets, net	40,524			53,821
Total nonperforming assets	$	157,142		$	189,090
Nonperforming assets to loans and leases and foreclosed assets	1.35		%	1.68		%

(1)Represents legacy CapitalSource borrowing relationships placed on nonaccrual status as of the acquisition date.

PCI loans, regardless of the underlying payment status of the borrower, are generally considered accruing and performing when reasonably estimable cash flows support the carrying amount of the loans. As of September 30, 2014, there are $27.7 million of PCI loans on nonaccrual status and included in the table above as the timing and amount of future cash flows is not reasonably estimable.

13

ABOUT PACWEST BANCORP

PacWest Bancorp is a bank holding company with over $15 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (“Pacific Western”). Through 80 full-service branches located throughout the state of California, Pacific Western provides commercial banking services, including real estate, construction, and commercial loans, to small and medium-sized businesses. Its CapitalSource and Community Banking divisions, and its subsidiary CapitalSource Business Finance Group (formerly known as BFI Business Finance), deliver the full spectrum of financing solutions nationwide across numerous industries and property types. For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

14

FORWARD LOOKING STATEMENTS

This release contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our expectations regarding our profitability, effective tax rates, and deposit growth. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such forward-looking statements for a variety of factors, including without limitation:

·changes in economic or competitive market conditions could negatively impact investment or lending opportunities or product pricing and services;

·deteriorations in credit and other markets;

·higher than anticipated loan and lease losses;

·sustained reduction in real estate markets could negatively impact the value of our collateral and our borrowers’ ability to repay loans;

·a change in the interest rate environment reduces interest margins;

·loan repayments higher than expected;

·lower than expected revenues;

·asset/liability repricing risks and liquidity risks reduces interest margins and the value of investments;

·increased costs to manage and sell foreclosed assets;

·legislative or regulatory requirements or changes adversely affected the Company’s business, including an increase to capital requirements;

·regulatory approvals for any capital activities cannot be obtained on the terms expected or on the anticipated schedule;

·changes in tax laws or regulations affecting our business;

·our inability to generate sufficient earnings;

·tax planning or disallowance of tax benefits by tax authorities;

·changes in tax filing jurisdictions or entity classifications; and

·other risk factors described in documents filed by PacWest with the U.S. Securities and Exchange Commission (“SEC”).

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

15

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

	September 30,			June 30,			December 31,
	2014			2014			2013
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	145,463		$	243,583		$	96,424
Interest-earning deposits in financial institutions	115,399			119,782			50,998
Total cash and cash equivalents	260,862			363,365			147,422
Securities available-for-sale, at estimated fair value	1,539,681			1,552,115			1,494,745
Federal Home Loan Bank stock, at cost	45,602			49,983			27,939
Total investment securities	1,585,283			1,602,098			1,522,684
Non-PCI loans and leases	11,239,964			10,802,053			3,930,539
PCI loans	351,431			398,471			382,796
Total gross loans and leases	11,591,395			11,200,524			4,313,335
Deferred fees and costs	(16,510		)	(10,419		)	(983		)
Allowance for loan and lease losses	(81,899		)	(82,149		)	(82,034		)
Total loans and leases, net	11,492,986			11,107,956			4,230,318
Equipment leased to others under operating leases	125,119			127,289			—
Premises and equipment, net	38,368			40,440			32,435
Foreclosed assets, net	40,524			53,821			55,891
FDIC loss sharing asset	22,977			28,834			45,524
Deferred tax asset, net	331,176			342,105			79,636
Goodwill	1,722,129			1,725,153			208,743
Core deposit and customer relationship intangibles, net	18,822			20,431			17,248
Other assets	300,099			273,374			193,462
Total assets	$	15,938,345		$	15,684,866		$	6,533,363
LIABILITIES:
Noninterest-bearing deposits	$	2,842,488		$	2,701,434		$	2,318,446
Interest-bearing deposits	8,680,949			8,966,363			2,962,541
Total deposits	11,523,437			11,667,797			5,280,987
Borrowings	363,672			4,596			113,726
Subordinated debentures	433,545			434,878			132,645
Accrued interest payable and other liabilities	139,445			139,663			196,912
Total liabilities	12,460,099			12,246,934			5,724,270
STOCKHOLDERS’ EQUITY (1)	3,478,246			3,437,932			809,093
Total liabilities and shareholders’ equity	$	15,938,345		$	15,684,866		$	6,533,363

(1) Includes net unrealized gain (loss) on securities available-for-sale, net	$	20,821	$	20,121	$	(3,347	)
Book value per share	$	33.76	$	33.37	$	17.66
Tangible book value per share	$	16.86	$	16.43	$	12.73
Shares outstanding (includes unvested restricted shares of 1,115,550 at September 30, 2014, 1,121,850 at June 30, 2014 and 1,216,524 at December 31, 2013)	103,027,830		103,033,449		45,822,834

16

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	189,961		$	192,201		$	75,196		$	459,625		$	199,374
Investment securities	12,331			11,986			9,871			35,140			26,501
Deposits in financial institutions	64			176			91			314			183
Total interest income	202,356			204,363			85,158			495,079			226,058
Interest expense:
Deposits	8,822			7,313			1,692			17,360			6,418
Borrowings	74			199			108			352			451
Subordinated debentures	4,614			4,318			1,069			9,973			2,734
Total interest expense	13,510			11,830			2,869			27,685			9,603
Net interest income	188,846			192,533			82,289			467,394			216,455
Provision (negative provision) for credit losses	5,050			5,030			(4,167		)	9,436			(2,872		)
Net interest income after provision for credit losses	183,796			187,503			86,456			457,958			219,327
Noninterest income:
Service charges on deposit accounts	2,725			2,719			2,938			8,446			8,568
Other commissions and fees	6,371			5,743			2,204			14,046			6,291
Leased equipment income	5,615			5,672			—			11,287			—
Gain (loss) on sale of loans and leases	973			(485		)	604			594			1,108
Gain on securities	—			89			5,222			4,841			5,631
FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
Other income	8,045			3,266			1,191			17,640			2,151
Total noninterest income	16,314			8,479			5,127			29,484			8,170
Noninterest expense:
Compensation	45,861			45,081			27,963			119,569			79,370
Occupancy	11,188			11,078			7,828			29,861			21,906
Data processing	3,929			4,099			2,590			10,568			7,278
Other professional services	3,687			2,843			1,906			8,053			4,984
Insurance and assessments	3,020			3,179			1,496			7,792			4,024
Intangible asset amortization	1,608			1,677			1,512			4,649			3,972
Other expenses	13,355			12,115			7,875			32,758			19,860
Total operating expense	82,648			80,072			51,170			213,250			141,394
Leased equipment depreciation	2,961			3,095			—			6,056			—
Foreclosed assets expense (income), net	4,827			497			(420		)	3,463			(934		)
Acquisition, integration and reorganization costs	5,193			86,242			5,450			93,635			24,139
Total noninterest expense	95,629			169,906			56,200			316,404			164,599
Earnings from continuing operations before taxes	104,481			26,076			35,383			171,038			62,898
Income tax expense	(42,205		)	(14,846		)	(11,243		)	(71,627		)	(20,868		)
Net earnings from continuing operations	62,276			11,230			24,140			99,411			42,030
(Loss) earnings from discontinued operations before taxes	(8		)	(1,151		)	39			(2,572		)	(42		)
Income tax benefit (expense)	3			476			(16		)	1,067			18
Net (loss) earnings from discontinued operations	(5		)	(675		)	23			(1,505		)	(24		)
Net earnings	$	62,271		$	10,555		$	24,163		$	97,906		$	42,006
Basic and diluted earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03

17

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	September 30, 2014						June 30, 2014						September 30, 2013
			Interest		Average				Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Cost		Balance		Expense		Cost		Balance		Expense		Cost
	(Dollars in thousands)
Assets:
PCI loans	$	363,049	$	13,490	14.74	%	$	375,194	$	14,104	15.08	%	$	430,990	$	12,902	11.88	%
Non-PCI loans and leases	10,922,640		176,471		6.41	%	10,125,327		178,097		7.06	%	3,889,780		62,294		6.35	%
Total loans and leases	11,285,689		189,961		6.68	%	10,500,521		192,201		7.34	%	4,320,770		75,196		6.90	%
Investment securities (1)	1,584,811		12,331		3.09	%	1,606,848		11,986		2.99	%	1,518,256		9,871		2.58	%
Deposits in financial institutions	99,276		64		0.26	%	276,095		176		0.26	%	140,785		91		0.26	%
Total interest-earning assets	12,969,776		202,356		6.19	%	12,383,464		204,363		6.62	%	5,979,811		85,158		5.65	%
Other assets	2,746,763						2,653,637						681,043
Total assets	$	15,716,539					$	15,037,101					$	6,660,854
Liabilities and Stockholders’ Equity:
Interest checking	$	605,288	86		0.06	%	$	601,958	77		0.05	%	$	619,884	83		0.05	%
Money market	1,733,445		908		0.21	%	1,691,115		874		0.21	%	1,567,976		730		0.18	%
Savings	759,177		575		0.30	%	722,808		548		0.30	%	216,174		14		0.03	%
Time	5,680,732		7,253		0.51	%	5,613,601		5,814		0.42	%	765,890		865		0.45	%
Total interest-bearing deposits	8,778,642		8,822		0.40	%	8,629,482		7,313		0.34	%	3,169,924		1,692		0.21	%
Borrowings	96,711		74		0.30	%	39,931		199		2.00	%	9,012		108		4.75	%
Subordinated debentures	434,625		4,614		4.21	%	409,934		4,318		4.22	%	132,413		1,069		3.20	%
Total interest-bearing liabilities	9,309,978		13,510		0.58	%	9,079,347		11,830		0.52	%	3,311,349		2,869		0.34	%
Noninterest-bearing demand deposits	2,778,260						2,546,540						2,329,197
Other liabilities	163,182						178,196						222,583
Total liabilities	12,251,420						11,804,083						5,863,129
Stockholders’ equity	3,465,119						3,233,018						797,725
Total liabilities and stockholders’ equity	$	15,716,539					$	15,037,101					$	6,660,854
Net interest income			$	188,846					$	192,533					$	82,289
Net interest spread					5.61	%					6.10	%					5.31	%
Net interest margin					5.78	%					6.24	%					5.46	%
Total deposits (2)	$	11,556,902	$	8,822	0.30	%	$	11,176,022	$	7,313	0.26	%	$	5,499,121	$	1,692	0.12	%
Funding sources (3)	$	12,088,238	$	13,510	0.44	%	$	11,625,887	$	11,830	0.41	%	$	5,640,546	$	2,869	0.20	%

(1)The tax equivalent yield on investment securities was 3.47%, 3.39%, and 2.97% for the three months ended September 30, 2014, June 30, 2014, and September 30, 2013.

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

(3)Funding sources is the sum of interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated as annualized total interest expense divided by average funding sources.

18

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	September 30,			June 30,			March 31,			December 31,			September 30,
	2014			2014			2014			2013			2013
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	145,463		$	243,583		$	113,508		$	96,424		$	132,467
Interest-earning deposits in financial institutions	115,399			119,782			228,579			50,998			11,552
Total cash and cash equivalents	260,862			363,365			342,087			147,422			144,019
Securities available-for-sale	1,539,681			1,552,115			1,477,473			1,494,745			1,512,147
Federal Home Loan Bank stock, at cost	45,602			49,983			25,000			27,939			34,095
Total investment securities	1,585,283			1,602,098			1,502,473			1,522,684			1,546,242
Non-PCI loans and leases	11,239,964			10,802,053			3,828,569			3,930,539			3,951,555
PCI loans	351,431			398,471			332,516			382,796			432,757
Total gross loans and leases	11,591,395			11,200,524			4,161,085			4,313,335			4,384,312
Deferred fees and costs	(16,510		)	(10,419		)	(18		)	(983		)	(919		)
Allowance for loan and lease losses	(81,899		)	(82,149		)	(81,180		)	(82,034		)	(83,786		)
Total loans and leases, net	11,492,986			11,107,956			4,079,887			4,230,318			4,299,607
Equipment leased to others under operating leases	125,119			127,289			—			—			—
Premises and equipment, net	38,368			40,440			29,908			32,435			32,683
Foreclosed assets, net	40,524			53,821			50,895			55,891			55,972
FDIC loss sharing asset	22,977			28,834			34,628			45,524			55,653
Deferred tax asset, net	331,176			342,105			72,683			79,636			70,933
Goodwill	1,722,129			1,725,153			208,743			208,743			215,862
Core deposit and customer relationship intangibles, net	18,822			20,431			15,884			17,248			18,678
Other assets	300,099			273,374			180,665			193,462			177,206
Total assets	$	15,938,345		$	15,684,866		$	6,517,853		$	6,533,363		$	6,616,855
LIABILITIES:
Noninterest-bearing deposits	$	2,842,488		$	2,701,434		$	2,391,609		$	2,318,446		$	2,328,688
Interest-bearing deposits	8,680,949			8,966,363			2,977,799			2,962,541			3,104,456
Total deposits	11,523,437			11,667,797			5,369,408			5,280,987			5,433,144
Borrowings	363,672			4,596			5,748			113,726			8,243
Subordinated debentures	433,545			434,878			132,790			132,645			132,500
Accrued interest payable and other liabilities	139,445			139,663			176,205			196,912			226,679
Total liabilities	12,460,099			12,246,934			5,684,151			5,724,270			5,800,566
STOCKHOLDERS’ EQUITY (1)	3,478,246			3,437,932			833,702			809,093			816,289
Total liabilities and shareholders’ equity	$	15,938,345		$	15,684,866		$	6,517,853		$	6,533,363		$	6,616,855

(1) Includes net unrealized gain (loss) on securities available-for-sale, net	$	20,821	$	20,121	$	6,825	$	(3,347	)	$	327
Book value per share	$	33.76	$	33.37	$	18.21	$	17.66		$	17.71
Tangible book value per share	$	16.86	$	16.43	$	13.31	$	12.73		$	12.62
Shares outstanding (includes unvested restricted shares)	103,027,830		103,033,449		45,777,580		45,822,834			46,090,742

19

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2014			2014			2014			2013			2013
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	189,961		$	192,201		$	77,463		$	73,352		$	75,196
Investment securities	12,331			11,986			10,823			10,422			9,871
Deposits in financial institutions	64			176			74			82			91
Total interest income	202,356			204,363			88,360			83,856			85,158
Interest expense:
Deposits	8,822			7,313			1,225			1,450			1,692
Borrowings	74			199			79			86			108
Subordinated debentures	4,614			4,318			1,041			1,062			1,069
Total interest expense	13,510			11,830			2,345			2,598			2,869
Net interest income	188,846			192,533			86,015			81,258			82,289
Provision (negative provision) for credit losses	5,050			5,030			(644		)	(1,338		)	(4,167		)
Net interest income after provision for credit losses	183,796			187,503			86,659			82,596			86,456
Noninterest income:
Service charges on deposit accounts	2,725			2,719			3,002			3,197			2,938
Other commissions and fees	6,371			5,743			1,932			2,125			2,204
Leased equipment income	5,615			5,672			—			—			—
Gain (loss) on sale of loans and leases	973			(485		)	106			683			604
Gain (loss) on securities	—			89			4,752			(272		)	5,222
FDIC loss sharing expense, net	(7,415		)	(8,525		)	(11,430		)	(10,593		)	(7,032		)
Other income	8,045			3,266			6,329			934			1,191
Total noninterest income	16,314			8,479			4,691			(3,926		)	5,127
Noninterest expense:
Compensation	45,861			45,081			28,627			27,697			27,963
Occupancy	11,188			11,078			7,595			7,553			7,828
Data processing	3,929			4,099			2,540			2,216			2,590
Other professional services	3,687			2,843			1,523			1,770			1,906
Insurance and assessments	3,020			3,179			1,593			1,572			1,496
Intangible asset amortization	1,608			1,677			1,364			1,430			1,512
Other expenses	13,355			12,115			7,288			7,746			7,875
Total operating expense	82,648			80,072			50,530			49,984			51,170
Leased equipment depreciation	2,961			3,095			—			—			—
Foreclosed assets expense (income), net	4,827			497			(1,861		)	(569		)	(420		)
Acquisition, integration and reorganization costs	5,193			86,242			2,200			16,673			5,450
Total noninterest expense	95,629			169,906			50,869			66,088			56,200
Earnings from continuing operations before taxes	104,481			26,076			40,481			12,582			35,383
Income tax expense	(42,205		)	(14,846		)	(14,576		)	(9,135		)	(11,243		)
Net earnings from continuing operations	62,276			11,230			25,905			3,447			24,140
(Loss) earnings from discontinued operations before taxes	(8		)	(1,151		)	(1,413		)	(578		)	39
Income tax benefit (expense)	3			476			588			240			(16		)
Net (loss) earnings from discontinued operations	(5		)	(675		)	(825		)	(338		)	23
Net earnings	$	62,271		$	10,555		$	25,080		$	3,109		$	24,163
Basic and diluted earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.57		$	0.07		$	0.53
Net earnings	$	0.60		$	0.10		$	0.55		$	0.06		$	0.53

20

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,
	2014			2014			2014			2013			2013
	(Dollars in thousands)
Performance Ratios - GAAP:
Annualized return on average assets	1.57		%	0.28		%	1.56		%	0.19		%	1.44		%
Annualized return on average equity	7.13		%	1.31		%	12.40		%	1.51		%	12.02		%
Yield on loans and leases	6.68		%	7.34		%	7.42		%	6.77		%	6.90		%
Yield on interest-earning assets	6.19		%	6.62		%	6.11		%	5.58		%	5.65		%
Cost of total deposits	0.30		%	0.26		%	0.09		%	0.11		%	0.12		%
Cost of time deposits	0.51		%	0.42		%	0.31		%	0.40		%	0.45		%
Cost of interest-bearing liabilities	0.58		%	0.52		%	0.30		%	0.32		%	0.34		%
Cost of funding sources	0.44		%	0.41		%	0.17		%	0.18		%	0.20		%
Net interest rate spread	5.61		%	6.10		%	5.81		%	5.26		%	5.31		%
Net interest margin	5.78		%	6.24		%	5.95		%	5.41		%	5.46		%
Annualized operating expense as a percentage of average assets	2.09		%	2.14		%	3.15		%	2.99		%	3.05		%
Annualized noninterest expense as a percentage of average assets	2.41		%	4.53		%	3.17		%	3.95		%	3.35		%
Efficiency ratio	46.6		%	84.5		%	56.1		%	85.5		%	64.3		%
Performance Ratios - Non-GAAP:
Annualized adjusted return on average assets	1.73		%	1.70		%	1.41		%	1.43		%	1.53		%
Annualized adjusted return on average equity	7.83		%	7.92		%	11.16		%	11.60		%	12.81		%
Annualized return on average tangible equity	14.36		%	2.65		%	17.10		%	2.11		%	16.85		%
Annualized adjusted return on average tangible equity	15.76		%	16.05		%	15.39		%	16.23		%	17.97		%
Core net interest margin	5.64		%	5.74		%	5.42		%	5.31		%	5.32		%
Adjusted efficiency ratio	43.4		%	43.1		%	57.1		%	58.1		%	59.0		%
Average Balances:
Average loans and leases	$	11,285,689		$	10,500,521		$	4,231,319		$	4,301,377		$	4,320,770
Average interest-earning assets	12,969,776			12,383,464			5,862,695			5,962,428			5,979,811
Average total assets	15,716,539			15,037,101			6,513,376			6,632,730			6,660,854
Average noninterest-bearing deposits	2,778,260			2,546,540			2,374,325			2,397,642			2,329,197
Average interest-bearing deposits	8,778,642			8,629,482			2,968,994			3,054,880			3,169,924
Average total deposits	11,556,902			11,176,022			5,343,319			5,452,522			5,499,121
Average borrowings and subordinated debentures	531,336			449,865			150,872			142,421			141,425
Average interest-bearing liabilities	9,309,978			9,079,347			3,119,866			3,197,301			3,311,349
Average funding sources	12,088,238			11,625,887			5,494,191			5,594,943			5,640,546
Average stockholders’ equity	3,465,119			3,233,018			820,248			818,935			797,725

21

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,
	2014		2014		2014		2013		2013
	(Dollars in thousands)
Non-PCI Credit Quality:
Allowance for credit losses to loans and leases	0.61	%	0.67	%	1.75	%	1.73	%	1.72	%
Allowance for credit losses to nonaccrual loans and leases	78	%	75	%	115	%	145	%	133	%
Nonaccrual loans and leases to loans and leases	0.79	%	0.90	%	1.52	%	1.19	%	1.29	%
Nonperforming assets to loans and leases and foreclosed assets	1.15	%	1.39	%	2.81	%	2.58	%	2.67	%
Nonperforming assets to total assets	0.81	%	0.96	%	1.67	%	1.57	%	1.61	%
Trailing twelve month net charge-offs to average loans and leases	0.09	%	0.05	%	0.13	%	0.12	%	0.21	%
PacWest Bancorp Consolidated Capital Ratios:
Tier 1 leverage capital ratio	12.17	%	12.40	%	11.73	%	11.22	%	11.16	%
Tier 1 risk-based capital ratio	13.24	%	13.15	%	16.16	%	15.12	%	15.13	%
Total risk-based capital ratio	16.24	%	16.25	%	17.42	%	16.38	%	16.39	%
Tangible common equity ratio (non-GAAP measure)	12.24	%	12.14	%	9.68	%	9.24	%	9.12	%
Pacific Western Bank Capital Ratios:
Tier 1 leverage capital ratio	11.74	%	11.71	%	10.88	%	10.79	%	10.53	%
Tier 1 risk-based capital ratio	12.74	%	12.58	%	15.00	%	14.54	%	14.27	%
Total risk-based capital ratio	13.44	%	13.32	%	16.25	%	15.80	%	15.53	%
Tangible common equity ratio (non-GAAP measure)	11.60	%	11.40	%	10.92	%	10.88	%	10.54	%

22

PACWEST BANCORP AND SUBSIDIARIES

NET EARNINGS PER SHARE CALCULATIONS

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands, except per share data)
Basic Earnings Per Share:
Net earnings from continuing operations	$	62,276		$	11,230		$	24,140		$	99,411		$	42,030
Less: earnings allocated to unvested restricted stock (1)	(685		)	(290		)	(786		)	(1,147		)	(1,137		)
Net earnings from continuing operations allocated to common shares	61,591			10,940			23,354			98,264			40,893
Net earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares and unvested restricted stock outstanding	103,029			98,817			46,091			82,758			41,306
Less: weighted-average unvested restricted stock outstanding	(1,117		)	(678		)	(1,795		)	(981		)	(1,663		)
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Basic earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20	��	$	1.03
Net earnings from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03
Diluted Earnings Per Share:
Net earnings from continuing operations allocated to common shares	$	61,591		$	10,940		$	23,354		$	98,264		$	40,893
Net earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Diluted earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net earnings from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03

(1) Represents cash dividends paid to holders of unvested stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

23

GAAP TO NON-GAAP RECONCILIATION

This press release contains certain non-GAAP financial disclosures for adjusted net earnings, adjusted return on average assets, adjusted return on average equity, return on average tangible equity, adjusted return on average tangible equity, tangible common equity amounts and ratios, tangible book value per share, adjusted efficiency ratio, core net interest margin, and operating expense as a percentage of average assets. 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:

·Adjusted net earnings - as analysts and investors view this measure as an indicator of the Company’s ability to both generate earnings and absorb credit losses, we disclose this amount in addition to net earnings.

·Adjusted return on average assets, adjusted return on average equity, return on average tangible equity, adjusted return on average tangible equity, tangible common equity amounts and ratios, and tangible book value per share - given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to return on average assets, return on average equity, equity-to-assets ratio, and book value per share, respectively.

·Adjusted efficiency ratio - we disclose this measure in addition to efficiency ratio as it shows the trend in recurring overhead-related noninterest expense relative to recurring net revenues.

Please refer to the tables on the following pages for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

24

PACWEST BANCORP AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Adjusted Net Earnings and Related Ratios	2014			2014			2013			2014			2013
	(Dollars in thousands)
Reported net earnings	$	62,271		$	10,555		$	24,163		$	97,906		$	42,006
Subtract: Tax (benefit) expense on discontinued operations	(3		)	(476		)	16			(1,067		)	(18		)
Add: Tax expense on continuing operations	42,205			14,846			11,243			71,627			20,868
Reported pre-tax earnings	104,473			24,925			35,422			168,466			62,856
Add: Acquisition, integration and reorganization costs	5,193			86,242			5,450			93,635			24,139
Subtract: FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
(Loss) gain on sale of loans and leases	973			(485		)	604			594			1,108
Gain on securities	—			89			5,222			4,841			5,631
Covered OREO (expense) income, net	(452		)	185			332			1,348			1,239
Gain on sale of owned office building	—			—			—			1,570			—
Adjusted pre-tax earnings before accelerrated discount accretion	116,560			119,903			41,746			281,118			94,596
Subtract: Accelerated discount accretion resulting from payoffs of acquired loans	4,501			15,290			2,105			27,446			2,959
Adjusted pre-tax earnings	112,059			104,613			39,641			253,672			91,637
Tax expense (1)	(43,703		)	(40,799		)	(13,874		)	(98,932		)	(32,073		)
Adjusted net earnings	$	68,356		$	63,814		$	25,767		$	154,740		$	59,564
Average assets	$	15,716,539		$	15,037,101		$	6,660,854		$	12,456,181		$	5,943,004
Average stockholders’ equity	$	3,465,119		$	3,233,018		$	797,725		$	2,515,506		$	685,216
Less: Average intagible assets	1,744,542			1,638,267			228,947			1,208,266			151,360
Average tangible common equity	$	1,720,577		$	1,594,751		$	568,778		$	1,307,240		$	533,856
Annualized return on average assets (2)	1.57		%	0.28		%	1.44		%	1.05		%	0.95		%
Annualized adjusted return on average assets (3)	1.73		%	1.70		%	1.53		%	1.66		%	1.34		%
Annualized return on average equity (4)	7.13		%	1.31		%	12.02		%	5.20		%	8.20		%
Annualized adjusted return on average equity (5)	7.83		%	7.92		%	12.81		%	8.22		%	11.62		%
Annualized return on average tangible equity (6)	14.36		%	2.65		%	16.85		%	10.01		%	10.52		%
Annualized adjusted return on average tangible equity (7)	15.76		%	16.05		%	17.97		%	15.83		%	14.92		%

(1) Full-year expected effective tax rate of 39% used in 2014 periods and actual effective rate of 35% used in 2013 periods.

(2) Annualized net earnings divided by average assets

(3) Annualized adjusted net earnings divided by average assets

(4) Annualized net earnings divided by average stockholders’ equity

(5) Annualized adjusted net earnings divided by average stockholders’ equity

(6) Annualized net earnings divided by average tangible common equity

(7) Annualized adjusted net earnings divided by average tangible common equity

25

PACWEST BANCORP AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Adjusted Efficiency Ratio	2014			2014			2013			2014			2013
	(Dollars in thousands)
Noninterest expense	$	95,629		$	169,906		$	56,200		$	316,404		$	164,599
Less: Acquisition, integration and reorganization costs	5,193			86,242			5,450			93,635			24,139
Covered OREO expense (income), net	452			(185		)	(332		)	(1,348		)	(1,239		)
Adjusted noninterest expense	$	89,984		$	83,849		$	51,082		$	224,117		$	141,699
Net interest income	$	188,846		$	192,533		$	82,289		$	467,394		$	216,455
Noninterest income	16,314			8,479			5,127			29,484			8,170
Net revenues	205,160			201,012			87,416			496,878			224,625
Less: FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
(Loss) gain on sale of loans and leases	973			(485		)	604			594			1,108
Gain on securities	—			89			5,222			4,841			5,631
Gain on sale of owned office building	—			—			—			1,570			—
Accelerated discount accretion resulting from payoffs of acquired loans	4,501			15,290			2,105			27,446			2,959
Adjusted net revenues	$	207,101		$	194,643		$	86,517		$	489,797		$	230,506
Base efficiency ratio (1)	46.6		%	84.5		%	64.3		%	63.7		%	73.3		%
Adjusted efficiency ratio (2)	43.4		%	43.1		%	59.0		%	45.8		%	61.5		%

(1) Noninterest expense divided by net revenues

(2) Adjusted noninterest expense divided by adjusted net revenues

26

PACWEST BANCORP AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

(Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
Tangible Common Equity Ratio	2014			2014			2014			2013			2013
	(Dollars in thousands)
PacWest Bancorp Consolidated:
Stockholders’ equity	$	3,478,246		$	3,437,932		$	833,702		$	809,093		$	816,289
Less: Intangible assets	1,740,951			1,745,584			224,627			225,991			234,540
Tangible common equity	$	1,737,295		$	1,692,348		$	609,075		$	583,102		$	581,749
Total assets	$	15,938,345		$	15,684,866		$	6,517,853		$	6,533,363		$	6,616,855
Less: Intangible assets	1,740,951			1,745,584			224,627			225,991			234,540
Tangible assets	$	14,197,394		$	13,939,282		$	6,293,226		$	6,307,372		$	6,382,315
Equity to assets ratio	21.82		%	21.92		%	12.79		%	12.38		%	12.34		%
Tangible common equity ratio (1)	12.24		%	12.14		%	9.68		%	9.24		%	9.12		%
Book value per share	$	33.76		$	33.37		$	18.21		$	17.66		$	17.71
Tangible book value per share (2)	$	16.86		$	16.43		$	13.31		$	12.73		$	12.62
Shares outstanding	103,027,830			103,033,449			45,777,580			45,822,834			46,090,742
Pacific Western Bank:
Stockholders’ equity	$	3,357,138		$	3,298,908		$	910,644		$	911,200		$	906,029
Less: Intangible assets	1,740,951			1,745,584			224,627			225,991			234,540
Tangible common equity	$	1,616,187		$	1,553,324		$	686,017		$	685,209		$	671,489
Total assets	$	15,675,486		$	15,376,440		$	6,507,288		$	6,523,742		$	6,607,926
Less: Intangible assets	1,740,951			1,745,584			224,627			225,991			234,540
Tangible assets	$	13,934,535		$	13,630,856		$	6,282,661		$	6,297,751		$	6,373,386
Equity to assets ratio	21.42		%	21.45		%	13.99		%	13.97		%	13.71		%
Tangible common equity ratio	11.60		%	11.40		%	10.92		%	10.88		%	10.54		%

(1) Tangible common equity divided by tangible assets

(2) Tangible common equity divided by shares outstanding

27