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PacWest Bancorp (PACW)

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20.08-0.52 (-2.52%)
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Neutralpattern detected
Previous Close20.60
Open20.20
Bid20.21 x 3200
Ask20.24 x 800
Day's Range20.03 - 20.36
52 Week Range13.84 - 40.14
Volume116,891
Avg. Volume1,104,881
Market Cap2.379B
Beta (5Y Monthly)1.64
PE Ratio (TTM)N/A
EPS (TTM)-10.58
Earnings DateJan 19, 2021 - Jan 25, 2021
Forward Dividend & Yield1.00 (4.86%)
Ex-Dividend DateAug 28, 2020
1y Target Est23.20
  • PacWest Bancorp Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
    Simply Wall St.

    PacWest Bancorp Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

    PacWest Bancorp (NASDAQ:PACW) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to...

  • PacWest Bancorp (PACW) Misses Q3 Earnings Estimates
    Zacks

    PacWest Bancorp (PACW) Misses Q3 Earnings Estimates

    PacWest (PACW) delivered earnings and revenue surprises of -39.68% and 2.18%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?

  • GlobeNewswire

    PacWest Bancorp Announces Results for the Third Quarter 2020

    Significant Items * Net Earnings of $45.5 Million, or $0.38 Per Diluted Share * Strong Pre-Provision, Pre-Tax Net Revenue (“PPNR”) of $156.2 Million * Strong Capital Position – CET1 Ratio up 49 Basis Points to 10.46% * Core Deposits Up $1.6 Billion or 10% in Q3; Represents 88% of Total Deposits * Tax Equivalent Net Interest Margin of 3.90% Compared to 4.20% in Q2 * Cost of Average Total Deposits Decreased to 17 Basis PointsLOS ANGELES, Oct. 14, 2020 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the third quarter of 2020 of $45.5 million, or $0.38 per diluted share, compared to net earnings for the second quarter of 2020 of $33.2 million, or $0.28 per diluted share. The increase in net earnings for the third quarter was due primarily to a $23 million decrease in the provision for credit losses.Matt Wagner, President and CEO, commented, “Our operations continue to produce strong revenues and internal capital as evidenced by $156.2 million in PPNR during the third quarter, which resulted in a PPNR return on average assets of 2.22%. These solid operating earnings highlight the resilience of our business as we navigate the challenging economic conditions.”Mr. Wagner continued, “We experienced strong deposit growth again in the third quarter, resulting in a significant increase in liquidity. Our average deposits in financial institutions balance was $2.6 billion in the third quarter with a yield of 10 basis points. While our focus is on managing net interest income, this excess liquidity had a negative impact on our third quarter NIM of 32 basis points.”Mr. Wagner added, “Our priority continues to be on mitigating potential credit losses in our portfolios, especially those portfolios impacted most by COVID-19. We were proactive in downgrading loans in the first quarter at the start of the pandemic, and the net loan migration to the special mention and classified categories during the second and third quarters was minimal. As of September 30, 2020, only 3.3% of loans are on deferral with the vast majority of those expiring in November 2020, while only 13% of loans previously granted a deferral received a second modification.”FINANCIAL HIGHLIGHTS At or For the    At or For the     Three Months Ended   Nine Months Ended    September 30, June 30, Increase September 30, Increase Financial Highlights  2020  2020 (Decrease)  2020  2019 (Decrease)                       (Dollars in thousands, except per share data) Net earnings (loss)$45,503  $33,204  $12,299  $(1,354,404) $350,755  $(1,705,159) Diluted earnings (loss)            per share$0.38  $0.28  $0.10  $(11.60) $2.91  $(14.51) Return on average assets 0.65%  0.50%  0.15   (6.65)%  1.80%  (8.45) Pre-provision, pre-goodwill            impairment, pre-tax net            revenue ("PPNR") (1)$156,174  $166,172  $(9,998) $483,223  $504,873  $(21,650) PPNR return on average            assets (1) 2.22%  2.51%  (0.29)  2.37%  2.59%  (0.22) Return on average            tangible equity (1) 8.20%  6.39%  1.81   7.16%  21.77%  (14.61)              Net interest margin ("NIM")            (tax equivalent) 3.90%  4.20%  (0.30)  4.13%  4.62%  (0.49) Yield on average loans and            leases (tax equivalent) 5.01%  5.01%  -   5.18%  6.11%  (0.93) Cost of average total            deposits 0.17%  0.25%  (0.08)  0.32%  0.79%  (0.47) Efficiency ratio 45.1%  42.9%  2.2   42.9%  42.1%  0.8               Total assets$28,426,716  $27,365,738  $1,060,978  $28,426,716  $26,724,627  $1,702,089  Loans and leases held            for investment,            net of deferred fees$19,026,200  $19,694,631  $(668,431) $19,026,200  $18,735,543  $290,657  Noninterest-bearing            demand deposits$9,346,744  $8,629,543  $717,201  $9,346,744  $7,441,185  $1,905,559  Core deposits$21,117,629  $19,535,814  $1,581,815  $21,117,629  $16,471,264  $4,646,365  Total deposits$23,965,695  $22,928,579  $1,037,116  $23,965,695  $19,733,203  $4,232,492               As percentage of total            deposits:            Noninterest-bearing            demand deposits 39%  38%  1   39%  38%  1  Core deposits 88%  85%  3   88%  84%  4               Equity to assets ratio 12.26%  12.62%  (0.36)  12.26%  18.41%  (6.15) Tangible common equity            ratio (1) 8.71%  8.93%  (0.22)  8.71%  9.65%  (0.94) Book value per share$29.42  $29.17  $0.25  $29.42  $41.06  $(11.64) Tangible book value per            share (1)$20.09  $19.80  $0.29  $20.09  $19.43  $0.66               (1) Non-GAAP measure.            INCOME STATEMENT HIGHLIGHTSNet Interest IncomeNet interest income decreased by $3.0 million to $251.3 million for the third quarter of 2020 compared to $254.3 million for the second quarter of 2020 due mainly to a lower balance of average loans and leases. The tax equivalent yield on average loans and leases was 5.01% for both the third and second quarters of 2020.The tax equivalent NIM was 3.90% for the third quarter of 2020 compared to 4.20% for the second quarter of 2020. The decrease in the NIM was due mostly to the change in the earning asset mix. Average loans and leases decreased by $756 million, while the average balance of deposits in financial institutions increased by $1.8 billion in the third quarter of 2020. This excess liquidity had a negative impact on the third quarter tax equivalent NIM of 32 basis points, while the PPP loans, which have a coupon rate of 1%, had a negative impact of seven basis points.The cost of average total deposits decreased to 0.17% for the third quarter of 2020 from 0.25% for the second quarter of 2020. The lower cost of average total deposits was due primarily to the repricing of maturing time deposits. The cost of deposits at September 30, 2020 was 0.13%.Provision for Credit LossesThe following table presents details of the provision for credit losses for the periods indicated: Three Months Ended    September 30, June 30, Increase Provision for Credit Losses 2020  2020 (Decrease)    (In thousands)   Addition to allowance for loan and lease losses$81,000  $93,000  $(12,000) Addition to reserve for unfunded    loan commitments 16,000   27,000   (11,000) Total provision for credit losses$97,000  $120,000  $(23,000) The provision for credit losses was $97.0 million for the third quarter of 2020, down $23.0 million from the second quarter of 2020. This reduction reflected improvement in certain key macro-economic forecast variables (unemployment and real GDP growth), partially offset by deterioration in other key macro-economic variables, including CRE price index and BBB spreads, and increased provisions for individually evaluated loans and leases.Noninterest IncomeThe following table presents details of noninterest income for the periods indicated: Three Months Ended    September 30, June 30, Increase Noninterest Income 2020  2020 (Decrease)      (In thousands)   Service charges on deposit accounts$2,570  $2,004  $566  Other commissions and fees 10,541   10,111   430  Leased equipment income 9,900   12,037   (2,137) Gain on sale of loans and leases 35   346   (311) Gain on sale of securities 5,270   7,715   (2,445) Other income:     Dividends and gains on equity investments 6,945   2,947   3,998  Warrant income 500   1,973   (1,473) Other 2,491   1,725   766  Total noninterest income$38,252  $38,858  $(606) Noninterest income decreased by $0.6 million to $38.3 million for the third quarter of 2020 compared to $38.9 million for the second quarter of 2020 due primarily to decreases of $2.4 million in gain on sale of securities, $2.1 million in leased equipment income, and $1.5 million in warrant income, offset partially by a $4.0 million increase in dividends and gains on equity investments. The decrease in gain on sale of securities resulted from the sale of $17 million of securities for a gain of $5.3 million in the third quarter compared to sales of $122 million of securities for a gain of $7.7 million in the second quarter. The decrease in leased equipment income was due to lower gains from early lease terminations and lower rental income due to an operating lease placed on nonaccrual status in the third quarter. The decrease in warrant income was due to lower gains from exercised warrants. The increase in dividends and gains on equity investments resulted primarily from net fair value gains of $5.9 million on equity investments still held.Noninterest ExpenseThe following table presents details of noninterest expense for the periods indicated: Three Months Ended    September 30, June 30, Increase Noninterest Expense 2020  2020 (Decrease)      (In thousands)   Compensation$75,131  $61,910  $13,221  Occupancy 14,771   14,494   277  Data processing 6,505   7,102   (597) Other professional services 4,713   4,146   567  Insurance and assessments 3,939   9,373   (5,434) Intangible asset amortization 3,751   3,882   (131) Leased equipment depreciation 7,057   7,102   (45) Foreclosed assets expense (income), net 335   (146)  481  Customer related expense 4,762   4,408   354  Loan expense 3,499   3,379   120  Other 8,939   11,315   (2,376) Total noninterest expense  133,402   126,965   6,437  Noninterest expense increased by $6.4 million to $133.4 million for the third quarter of 2020 compared to $127.0 million for the second quarter of 2020 attributable primarily to a $13.2 million increase in compensation expense, offset partially by decreases of $5.4 million in insurance and assessments expense and $2.4 million in other expense. The increase in compensation expense was due mainly to higher bonus accruals of $12.4 million and stock compensation expense of $1.4 million. The decrease in insurance and assessments expense was due to a decrease in the FDIC assessment expense due primarily to increases in liquidity and uninsured deposits during the last two quarters. The decrease in other expense was due primarily to $6.6 million in prepayment penalties incurred in the second quarter from the early payoff of $750 million of FHLB term advances, which was offset partially by higher legal accruals in the third quarter.Income TaxesThe effective income tax rate was 23.1% for the third quarter compared to 28.1% for the second quarter of 2020. Excluding non-deductible goodwill impairment, the effective tax rate for the full year 2020 is currently estimated to be in the range of 25-27%. The lower effective tax rate in the third quarter was due mainly to higher shortfall amounts from restricted stock vestings in the second quarter that elevated the second quarter effective tax rate.BALANCE SHEET HIGHLIGHTSLoans and LeasesThe following table presents roll forwards of loans and leases held for investment, net of deferred fees, for the periods indicated: Three Months Ended Nine Months Ended Roll Forward of Loans and Leases HeldSeptember 30, June 30, September 30, for Investment, Net of Deferred Fees (1) 2020  2020 2020      (Dollars in thousands)     Balance, beginning of period$19,694,631  $19,745,305  $18,846,872  Additions:            Production 519,671   1,802,956   3,112,373  Disbursements 1,008,336   800,458   3,805,874  Total production and disbursements 1,528,007   2,603,414   6,918,247  Reductions:     Payoffs (982,889)  (612,837)  (2,408,433) Paydowns (1,160,692)  (2,022,376)  (4,236,773) Total payoffs and paydowns (2,143,581)  (2,635,213)  (6,645,206) Sales (2,979)  (3,089)  (6,068) Transfers to foreclosed assets (12,594)  -   (14,370) Charge-offs (37,284)  (15,786)  (73,275) Total reductions (2,196,438)  (2,654,088)  (6,738,919) Net (decrease) increase (668,431)  (50,674)  179,328  Balance, end of period$19,026,200  $19,694,631  $19,026,200         Weighted average rate on production (2) 4.95%  2.33%  3.27%        (1) Includes direct financing leases but excludes equipment leased to others under operating leases.  (2) The weighted average rate on production presents contractual rates on a tax equivalent basis  and excludes amortized fees. Amortized fees added approximately 23 basis points to loan  yields in 2020.     Loans and leases held for investment, net of deferred fees, decreased by $668.4 million in the third quarter of 2020 to $19.0 billion at September 30, 2020. The majority of the decrease in the loans and leases balance in the third quarter of 2020 was in the commercial category as business lending demand has decreased during the COVID-19 pandemic. Total revolving balances declined by approximately $350 million in the third quarter due to a lower line utilization rate. The largest decreases were in the lender finance, equipment finance, venture capital, and security monitoring portfolios. The weighted average rate on third quarter production increased to 4.95%. The increase was due to the unusually low rate on second quarter production since $1.2 billion, or 69%, of second quarter loan production related to PPP loans at a coupon rate of 1%. Excluding PPP loans, the weighted average rate on second quarter production was 5.39%.The following table presents the composition of loans and leases held for investment by loan portfolio segment and class, net of deferred fees, as of the dates indicated: September 30, 2020 June 30, 2020 September 30, 2019   % of   % of   % of Loan and Lease Portfolio BalanceTotal BalanceTotal BalanceTotal     (In thousands)    Real estate mortgage:        Commercial$4,192,46622% $4,222,07522% $4,300,56623% Income producing and other       residential 3,684,57919%  3,733,65919%  3,596,35819% Total real estate mortgage 7,877,04541%  7,955,73441%  7,896,92442% Real estate construction and land:      Commercial 1,241,6477%  1,167,6096%  1,009,3626% Residential 2,182,10011%  2,172,91911%  1,542,1128% Total real estate construction       and land 3,423,74718%  3,340,52817%  2,551,47414% Total real estate 11,300,79259%  11,296,26258%  10,448,39856% Commercial:        Asset-based 3,153,04817%  3,412,43117%  3,810,74120% Venture capital 1,637,1329%  1,814,3419%  2,209,64912% Other commercial 2,572,99413%  2,760,27814%  1,858,16710% Total commercial 7,363,17439%  7,987,05040%  7,878,55742% Consumer 362,2342%  411,3192%  408,5882% Total loans and leases held for       investment, net of deferred fees$19,026,200100% $19,694,631100% $18,735,543100%           Total unfunded loan commitments$7,178,506  $7,745,921  $7,790,796  Allowance for Credit Losses The following tables present roll forwards of the allowance for credit losses for the periods indicated: Three Months Ended September 30, 2020   Allowance for   Reserve for   Total  Allowance for Credit  Loan and   Unfunded Loan   Allowance for  Losses Rollforward  Lease Losses   Commitments   Credit Losses        (In thousands)      Beginning balance$301,050  $80,571  $381,621     Charge-offs (37,284)  -   (37,284)    Recoveries 1,200   -   1,200  Net charge-offs (36,084)  -   (36,084)    Provision  81,000   16,000   97,000  Ending balance$345,966  $96,571  $442,537          Three Months Ended June 30, 2020   Allowance for   Reserve for   Total  Allowance for Credit Loan and   Unfunded Loan   Allowance for  Losses Rollforward Lease Losses   Commitments   Credit Losses        (In thousands)      Beginning balance$221,292  $53,571  $274,863     Charge-offs (15,786)  -   (15,786)    Recoveries 2,544   -   2,544  Net charge-offs (13,242)  -   (13,242)    Provision 93,000   27,000   120,000  Ending balance$301,050  $80,571  $381,621  The allowance for credit losses increased by $60.9 million in the third quarter of 2020 to $442.5 million. The increase in the allowance for credit losses during the third quarter was attributable to changes in the economic forecast and changes to modeling assumptions. Net charge-offs increased from $13.2 million in the second quarter to $36.1 million in the third quarter due primarily to one security monitoring loan with a charge-off of $32.8 million. This loan was the only junior lien exposure in the security monitoring portfolio and, accordingly, additional losses of this magnitude are not expected.Gross charge-offs for the third quarter of 2020 were $37.3 million and included $35.4 million for other commercial loans and $1.5 million for commercial real estate mortgage loans compared to gross charge-offs for the second quarter of 2020 of $15.8 million that included $6.5 million for venture capital loans, $5.0 million for other commercial loans, and $4.2 million for commercial real estate mortgage loans.Recoveries for the third quarter of 2020 were $1.2 million and included $0.6 million for venture capital loans and $0.3 million for other commercial loans compared to recoveries for the second quarter of 2020 of $2.5 million that included $2.3 million for other commercial loans.For the three and nine months ended September 30, 2020, annualized net charge-offs to average loans and leases were 0.75% and 0.47%, respectively.The allowance for credit losses as a percentage of loans and leases held for investment was 2.33% at September 30, 2020 and 1.94% at June 30, 2020. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.82% at September 30, 2020 and 1.53% at June 30, 2020. The allowance for credit losses and allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding PPP loans that are fully guaranteed and do not carry any allowance, was 2.48% and 1.94% at September 30, 2020, respectively, compared to 2.06% and 1.63% at June 30, 2020, respectively.Deposits and Client Investment FundsThe following table presents the composition of our deposit portfolio as of the dates indicated: September 30, 2020 June 30, 2020 September 30, 2019   % of   % of   % of Deposit CompositionBalanceTotal  BalanceTotal BalanceTotal      (Dollars in thousands)    Noninterest-bearing demand$9,346,74439% $8,629,54338% $7,441,18538% Interest checking 4,657,51120%  4,858,16821%  3,645,66018% Money market 6,539,31327%  5,498,15024%  4,870,34425% Savings 574,0612%  549,9532%  514,0753% Total core deposits 21,117,62988%  19,535,81485%  16,471,26484% Non-core non-maturity deposits 1,123,9095%  1,217,2665%  479,7322% Total non-maturity deposits 22,241,53893%  20,753,08090%  16,950,99686% Time deposits $250,000 and under 1,047,6214%  1,522,9287%  2,282,97612% Time deposits over $250,000 676,5363%  652,5713%  499,2312% Total time deposits 1,724,1577%  2,175,49910%  2,782,20714% Total deposits$23,965,695100% $22,928,579100% $19,733,203100% At September 30, 2020, core deposits totaled $21.1 billion, or 88% of total deposits, including $9.3 billion of noninterest-bearing demand deposits, or 39% of total deposits. Core deposits increased by $1.6 billion in the third quarter driven by continued strong deposit growth from our venture banking clients.In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds at September 30, 2020 were $1.2 billion, of which $1.0 billion was managed by PWAM.CREDIT QUALITY The following table presents loan and lease credit quality metrics as of the dates indicated: September 30, June 30, Increase Credit Quality Metrics  2020  2020 (Decrease)    (Dollars in thousands)   NPAs and Performing TDRs:      Nonaccrual loans and leases held for investment (1)$85,615  $166,113  $(80,498) Accruing loans contractually past due 90 days or more -   -   -  Foreclosed assets, net 13,747   1,449   12,298     Total nonperforming assets ("NPAs")$99,362  $167,562  $(68,200)        Performing TDRs held for investment$13,679  $15,037  $(1,358)        Nonaccrual loans and leases held for investment  to loans and leases held for investment 0.45%  0.84%   Nonperforming assets to loans and leases   held for investment and foreclosed assets 0.52%  0.85%          Loan and Lease Credit Risk Ratings:   Pass$17,967,872  $18,635,004  $(667,132) Special mention 783,756   766,397   17,359  Classified 274,572   293,230   (18,658) Total loans and leases held for investment,  net of deferred fees$19,026,200  $19,694,631  $(668,431)        Classified loans and leases held for investment  to loans and leases held for investment 1.44%  1.49%          Allowance for Credit Losses:    Allowance for loan and lease losses$345,966  $301,050  $44,916  Reserve for unfunded loan commitments 96,571   80,571   16,000  Allowance for credit losses$442,537  $381,621  $60,916  Provision for credit losses (for the quarter)$97,000  $120,000  $(23,000) Net charge-offs (for the quarter)$36,084  $13,242  $22,842  Net charge-offs to average loans and leases   (for the quarter) 0.75%  0.27%   Allowance for loan and lease losses to loans  and leases held for investment 1.82%  1.53%   Allowance for credit losses to loans and leases  held for investment 2.33%  1.94%   Allowance for credit losses to nonaccrual loans  and leases held for investment 516.9%  229.7%          (1) Nonaccrual loans include guaranteed amounts of $13.8 million at September 30, 2020 and $16.2 million at June 30, 2020.     During the third quarter of 2020, classified loans and leases decreased by $18.7 million driven mostly by payoffs, paydowns, and other reductions of $55.0 million, charge-offs of $35.7 million, and the transfer to other real estate owned of $12.6 million, offset partially by the migration of $66.0 million in loans and leases from special mention and downgrades from pass of $19.4 million. Special mention loans and leases increased by $17.4 million driven mainly by downgrades from pass of $167.3 million, offset partially by upgrades to pass of $39.4 million, payoffs, paydowns, and other reductions of $44.5 million, and the migration of $66.0 million in loans and leases to classified.The following table presents nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by loan portfolio segment and class as of the dates indicated: September 30, 2020 June 30, 2020 Increase (Decrease)    Accruing   Accruing   Accruing    and 30-89   and 30-89   and 30-89    Days Past   Days Past   Days Past  Nonaccrual Due Nonaccrual Due Nonaccrual Due                   (Dollars in thousands)     Real estate mortgage:           Commercial$45,120  $-  $61,771  $-  $(16,651) $-  Income producing and other          residential 2,008   1,761   2,207   -   (199)  1,761  Total real estate mortgage 47,128   1,761   63,978   -   (16,850)  1,761  Real estate construction and land:         Commercial 324   -   337   -   (13)  -  Residential -   3,108   -   1,021   -   2,087  Total real estate           construction and land 324   3,108   337   1,021   (13)  2,087  Commercial:           Asset-based 2,817   -   19,013   3,697   (16,196)  (3,697) Venture capital 2,001   2,319   8,270   1,924   (6,269)  395  Other commercial 32,941   185   73,995   191   (41,054)  (6) Total commercial 37,759   2,504   101,278   5,812   (63,519)  (3,308) Consumer 404   791   520   1,067   (116)  (276) Total held for investment$85,615  $8,164  $166,113  $7,900  $(80,498) $264  During the third quarter of 2020, nonaccrual loans and leases decreased by $80.5 million due primarily to charge-offs of $35 million, payoffs of $29 million, and transfers to foreclosed assets of $12.6 million.CAPITALThe following table presents certain actual capital ratios and ratios excluding PPP loans:        September 30, 2020      Excluding June 30,    PPP 2020  Actual (1)  Loans (1) Actual PacWest Bancorp Consolidated:   Tier 1 leverage capital ratio8.66% 9.07%(3)8.93% Common equity tier 1 capital ratio10.46% 10.46% 9.97% Total capital ratio13.74% 13.74% 13.18% Tangible common equity ratio (2)8.71% 9.12%(3)8.93%           (1) Capital information for September 30, 2020 is preliminary.         (2) Non-GAAP measure.         (3) PPP loans have been excluded from total assets in denominator as they are zero risk-weighted.         STOCK REPURCHASE PROGRAMDuring the third quarter of 2020, there were no stock repurchases. On April 21, 2020, we announced that stock repurchases were suspended indefinitely.ABOUT PACWEST BANCORPPacWest Bancorp (“PacWest”) is a bank holding company with over $28 billion in assets headquartered in Los Angeles, California, with executive offices in Denver, Colorado, with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 72 full-service branches located in California, one branch located in Durham, North Carolina, and one branch located in Denver, Colorado. The Bank provides community banking products including lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices and Denver, Colorado branch office. The Bank offers national lending products including asset-based, equipment, and real estate loans and treasury management services to established middle-market businesses on a national basis. The Bank also offers venture banking products including a comprehensive suite of financial services focused on entrepreneurial and venture-backed businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States. For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.FORWARD LOOKING STATEMENTSThis communication contains certain forward-looking information about PacWest Bancorp that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward-looking statements. Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. The COVID-19 pandemic is adversely affecting PacWest Bancorp, its employees, customers and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity and prospects is uncertain. The length of the COVID-19 pandemic and the severity of its impact on key macro-economic indicators such as unemployment and GDP may have a material impact on our allowance for credit losses and related provision for credit losses. Continued deterioration in general business and economic conditions could adversely affect PacWest Bancorp’s revenues and the values of its assets, including goodwill, and liabilities, lead to a tightening of credit, and increase stock price volatility. In addition, PacWest Bancorp’s results could be adversely affected by changes in interest rates, sustained high unemployment rates, deterioration in the credit quality of its loan portfolio or in the value of the collateral securing those loans, deterioration in the value of its investment securities, the magnitude of individual loan losses on security monitoring loans, and legal and regulatory developments. Actual results may differ materially from those set forth or implied in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the U.S. Securities and Exchange Commission.We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.PACWEST BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET             September 30,  June 30,  September 30,   2020  2020 2019             (Dollars in thousands, except per share data) ASSETS:          Cash and due from banks$187,176  $174,059  $252,596  Interest-earning deposits in financial institutions 2,766,020   1,747,077   483,405  Total cash and cash equivalents  2,953,196   1,921,136   736,001             Securities available-for-sale, at estimated fair value4,532,614  3,851,141   3,817,348  Federal Home Loan Bank stock, at cost17,250  17,250   26,865  Total investment securities4,549,864  3,868,391   3,844,213             Gross loans and leases held for investment 19,101,680   19,780,476   18,796,011  Deferred fees, net (75,480)  (85,845)  (60,468) Total loans and leases held for investment,      net of deferred fees 19,026,200   19,694,631   18,735,543  Allowance for loan and lease losses (345,966)  (301,050)  (138,552) Total loans and leases held for investment, net 18,680,234   19,393,581   18,596,991             Equipment leased to others under operating leases286,425  295,191   295,854  Premises and equipment, net40,544  42,299   37,926  Foreclosed assets, net13,747  1,449   1,366  Goodwill1,078,670  1,078,670   2,548,670  Core deposit and customer relationship intangibles, net26,813  30,564   42,547  Other assets 797,223   734,457   621,059  Total assets$28,426,716  $27,365,738  $26,724,627             LIABILITIES:         Noninterest-bearing deposits$9,346,744  $8,629,543  $7,441,185  Interest-bearing deposits 14,618,951   14,299,036   12,292,018  Total deposits 23,965,695   22,928,579   19,733,203  Borrowings60,000  60,000   1,253,031  Subordinated debentures463,282  460,772   456,145  Accrued interest payable and other liabilities 451,508   463,489   362,140  Total liabilities24,940,485  23,912,840   21,804,519  STOCKHOLDERS' EQUITY (1)3,486,231  3,452,898   4,920,108  Total liabilities and stockholders’ equity$28,426,716  $27,365,738  $26,724,627               Book value per share$29.42  $29.17  $41.06  Tangible book value per share (2)$20.09  $19.80  $19.43  Shares outstanding 118,489,927   118,374,603   119,831,192               (1) Includes net unrealized gain on securities            available-for-sale, net$155,474  $145,038  $95,887  (2) Non-GAAP measure.                         PACWEST BANCORP AND SUBSIDIARIES      CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS)                Three Months Ended Nine Months Ended  September 30, June 30, September 30, September 30,   2020  2020  2019  2020  2019                       (Dollars in thousands, except per share data) Interest income:         Loans and leases$240,811  $247,851  $275,978  $750,940  $834,443  Investment securities 24,443   26,038   28,806   77,927   87,434  Deposits in financial institutions 654   186   2,424   2,448   4,423  Total interest income 265,908   274,075   307,208   831,315   926,300             Interest expense:         Deposits 9,887   13,075   40,703   51,209   113,658  Borrowings 27   1,319   6,852   8,124   21,772  Subordinated debentures 4,670   5,402   7,417   16,632   22,860  Total interest expense 14,584   19,796   54,972   75,965   158,290             Net interest income 251,324   254,279   252,236   755,350   768,010  Provision for credit losses 97,000   120,000   7,000   329,000   19,000  Net interest income after        provision for credit losses 154,324   134,279   245,236   426,350   749,010             Noninterest income:         Service charges on deposit accounts 2,570   2,004   3,525   7,232   11,026  Other commissions and fees 10,541   10,111   10,855   30,373   33,453  Leased equipment income 9,900   12,037   9,615   34,188   28,079  Gain on sale of loans and leases 35   346   765   468   1,091  Gain on sale of securities 5,270   7,715   908   13,167   25,261  Other income 9,936   6,645   7,761   20,782   16,476  Total noninterest income 38,252   38,858   33,429   106,210   115,386             Noninterest expense:         Compensation 75,131   61,910   71,424   198,323   211,225  Occupancy 14,771   14,494   14,089   43,472   42,866  Data processing 6,505   7,102   7,044   20,061   20,786  Other professional services 4,713   4,146   4,400   13,117   13,542  Insurance and assessments 3,939   9,373   4,100   17,561   12,236  Intangible asset amortization 3,751   3,882   4,833   11,581   14,573  Leased equipment depreciation 7,057   7,102   5,951   21,364   17,160  Foreclosed assets expense (income), net 335   (146)  8   255   (109) Acquisition, integration and        reorganization costs -   -   -   -   618  Customer related expense 4,762   4,408   3,539   13,102   9,887  Loan expense 3,499   3,379   3,628   9,528   9,964  Goodwill impairment -   -   -   1,470,000   -  Other expense 8,939   11,315   7,793   29,973   25,775  Total noninterest expense 133,402   126,965   126,809   1,848,337   378,523             Earnings (loss) before income taxes 59,174   46,172   151,856   (1,315,777)  485,873  Income tax expense 13,671   12,968   41,830   38,627   135,118  Net earnings (loss)$45,503  $33,204  $110,026  $(1,354,404) $350,755             Basic and diluted earnings (loss) per share$0.38  $0.28  $0.92  $(11.60) $2.91  Dividends declared and paid per share$0.25  $0.25  $0.60  $1.10  $1.80                       PACWEST BANCORP AND SUBSIDIARIES      NET EARNINGS (LOSS) PER SHARE CALCULATIONS                  Three Months Ended Nine Months Ended  September 30, June 30, September 30, September 30,   2020  2020  2019  2020  2019                       (In thousands, except per share data) Basic Earnings (Loss) Per Share:       Net earnings (loss)$45,503  $33,204  $110,026  $(1,354,404) $350,755  Less: earnings allocated to unvested       restricted stock (1) (578)  (362)  (1,369)  (1,603)  (3,725) Net earnings (loss) allocated to        common shares$44,925  $32,842  $108,657  $(1,356,007) $347,030             Weighted-average basic shares and       unvested restricted stock outstanding 118,438   118,192   119,831   118,469   120,691  Less: weighted-average unvested       restricted stock outstanding (1,684)  (1,606)  (1,622)  (1,596)  (1,480) Weighted-average basic shares        outstanding 116,754   116,586   118,209   116,873   119,211             Basic earnings (loss) per share$0.38  $0.28  $0.92  $(11.60) $2.91             Diluted Earnings (Loss) Per Share:       Net earnings (loss) allocated to        common shares$44,925  $32,842  $108,657  $(1,356,007) $347,030             Weighted-average diluted shares       outstanding 116,754   116,586   118,209   116,873   119,211             Diluted earnings (loss) per share$0.38  $0.28  $0.92  $(11.60) $2.91             (1) Represents cash dividends paid to holders of unvested stock, net of forfeitures, plus      undistributed earnings amounts available to holders of unvested restricted stock, if any.                 PACWEST BANCORP AND SUBSIDIARIES                       AVERAGE BALANCE SHEET AND YIELD ANALYSIS                                                         Three Months Ended  September 30, 2020  June 30, 2020  September 30, 2019     Interest  Average      Interest  Average    Interest  Average   Average  Income/  Yield/  Average Income/  Yield/  Average  Income/  Yield/   Balance  Expense  Cost Balance  Expense  Cost  Balance  Expense  Cost                (Dollars in thousands)             Assets:                                    Loans and leases (1)(2)$19,195,737  $241,547   5.01% $19,951,603  $248,474   5.01% $18,539,281  $276,309   5.91% Investment securities (3) 4,107,915   26,015   2.52%  3,846,459   27,430   2.87%  3,809,243   32,213   3.36% Deposits in financial                               institutions 2,554,349   654   0.10%  733,142   186   0.10%  445,152   2,424   2.16% Total interest-earning                               assets (1) 25,858,001   268,216   4.13%  24,531,204   276,090   4.53%  22,793,676   310,946   5.41% Other assets 2,077,192           2,090,023           3,612,927          Total assets$27,935,193          $26,621,227          $26,406,603                                               Liabilities and                                Stockholders' Equity:                               Interest checking$4,904,614   2,019   0.16% $4,001,750   1,573   0.16% $3,598,698   11,942   1.32% Money market 7,170,842   3,081   0.17%  6,114,354   2,856   0.19%  5,121,856   14,807   1.15% Savings 565,395   35   0.02%  524,335   33   0.03%  515,649   218   0.17% Time 1,876,072   4,752   1.01%  2,475,858   8,613   1.40%  2,795,573   13,736   1.95% Total interest-bearing                               deposits 14,516,923   9,887   0.27%  13,116,297   13,075   0.40%  12,031,776   40,703   1.34% Borrowings 181,315   27   0.06%  871,110   1,319   0.61%  1,181,313   6,852   2.30% Subordinated debentures 462,375   4,670   4.02%  459,466   5,402   4.73%  456,011   7,417   6.45% Total interest-bearing                               liabilities 15,160,613   14,584   0.38%  14,446,873   19,796   0.55%  13,669,100   54,972   1.60% Noninterest-bearing                               demand deposits 8,812,391           8,292,151           7,487,555          Other liabilities 464,320           435,353           359,202          Total liabilities 24,437,324           23,174,377           21,515,857          Stockholders' equity 3,497,869           3,446,850           4,890,746          Total liabilities and                               stockholders' equity$27,935,193          $26,621,227           $26,406,603          Net interest income (1)    $253,632          $256,294          $255,974      Net interest spread (1)    3.75%          3.98%          3.81% Net interest margin (1)    3.90%          4.20%          4.46%                                      Total deposits (4)$23,329,314  $9,887   0.17% $21,408,448  $13,075   0.25% $19,519,331  $40,703   0.83%                                      (1) Tax equivalent.                               (2) Includes discount accretion on acquired loans of $2.0 million, $2.5 million, and $2.6 million for the three months ended September 30, 2020,  June 30, 2020, and September 30, 2019, respectively.                       (3) Includes tax-equivalent adjustments of $1.6 million, $1.4 million, and $3.4 million for the three months ended September 30, 2020,   June 30, 2020, and September 30, 2019 related to tax-exempt income on investment securities.             The federal statutory tax rate utilized was 21%.                       (4) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits is calculated  as annualized interest expense on total deposits divided by average total deposits.                                                    PACWEST BANCORP AND SUBSIDIARIES           FIVE QUARTER BALANCE SHEET                                    September 30, June 30, March 31, December 31, September 30,  2020 2020 2020 2019 2019                       (Dollars in thousands, except per share data)  ASSETS:                    Cash and due from banks$187,176  $174,059  $172,570  $172,585  $252,596  Interest-earning deposits in financial              institutions 2,766,020   1,747,077   439,690   465,039   483,405  Total cash and cash equivalents  2,953,196   1,921,136   612,260   637,624   736,001                       Securities available-for-sale 4,532,614   3,851,141   3,757,663   3,797,187   3,817,348  Federal Home Loan Bank stock 17,250   17,250   54,244   40,924   26,865     Total investment securities 4,549,864   3,868,391   3,811,907   3,838,111   3,844,213                       Gross loans and leases held for investment 19,101,680   19,780,476   19,806,394   18,910,740   18,796,011  Deferred fees, net (75,480)  (85,845)  (61,089)  (63,868)  (60,468) Total loans and leases held for               investment, net of deferred fees 19,026,200   19,694,631   19,745,305   18,846,872   18,735,543  Allowance for loan and lease losses (345,966)  (301,050)  (221,292)  (138,785)  (138,552) Total loans and leases held for              investment, net 18,680,234   19,393,581   19,524,013   18,708,087   18,596,991                       Equipment leased to others under              operating leases 286,425   295,191   306,530   324,084   295,854  Premises and equipment, net 40,544   42,299   39,799   38,585   37,926  Foreclosed assets, net 13,747   1,449   1,701   440   1,366  Goodwill 1,078,670   1,078,670   1,078,670   2,548,670   2,548,670  Core deposit and customer relationship              intangibles, net 26,813   30,564   34,446   38,394   42,547  Other assets 797,223   734,457   733,941   636,811   621,059  Total assets$28,426,716  $27,365,738  $26,143,267  $26,770,806  $26,724,627                       LIABILITIES:                  Noninterest-bearing deposits 9,346,744   8,629,543   7,510,218   7,243,298   7,441,185  Interest-bearing deposits 14,618,951   14,299,036   12,065,619   11,989,738   12,292,018  Total deposits 23,965,695   22,928,579   19,575,837   19,233,036   19,733,203  Borrowings 60,000   60,000   2,295,000   1,759,008   1,253,031  Subordinated debentures 463,282   460,772   458,994   458,209   456,145  Accrued interest payable and other              liabilities 451,508   463,489   423,047   365,856   362,140  Total liabilities 24,940,485   23,912,840   22,752,878   21,816,109   21,804,519  STOCKHOLDERS' EQUITY (1) 3,486,231   3,452,898   3,390,389   4,954,697   4,920,108  Total liabilities and stockholders’               equity$28,426,716  $27,365,738  $26,143,267  $26,770,806  $26,724,627                       Book value per share$29.42  $29.17  $28.75  $41.36  $41.06  Tangible book value per share (2)$20.09  $19.80  $19.31  $19.77  $19.43  Shares outstanding 118,489,927   118,374,603   117,916,789   119,781,605   119,831,192                       (1) Includes net unrealized gain on              securities available-for-sale, net$155,474  $145,038  $90,916  $78,658  $95,887  (2) Non-GAAP measure.                                    PACWEST BANCORP AND SUBSIDIARIES      FIVE QUARTER STATEMENT OF EARNINGS (LOSS)                 Three Months Ended  September 30, June 30, March 31, December 31, September 30,   2020  2020  2020  2019  2019                     (Dollars in thousands, except per share data) Interest income:         Loans and leases$240,811  $247,851  $262,278  $263,402  $275,978  Investment securities 24,443   26,038   27,446   28,135   28,806  Deposits in financial institutions 654   186   1,608   2,056   2,424  Total interest income 265,908   274,075   291,332   293,593   307,208             Interest expense:         Deposits 9,887   13,075   28,247   34,802   40,703  Borrowings 27   1,319   6,778   5,189   6,852  Subordinated debentures 4,670   5,402   6,560   6,983   7,417  Total interest expense 14,584   19,796   41,585   46,974   54,972             Net interest income 251,324   254,279   249,747   246,619   252,236  Provision for credit losses 97,000   120,000   112,000   3,000   7,000  Net interest income after        provision for credit losses 154,324   134,279   137,747   243,619   245,236             Noninterest income:         Service charges on deposit accounts 2,570   2,004   2,658   3,611   3,525  Other commissions and fees 10,541   10,111   9,721   10,170   10,855  Leased equipment income 9,900   12,037   12,251   10,648   9,615  Gain on sale of loans and leases 35   346   87   23   765  Gain on sale of securities 5,270   7,715   182   184   908  Other income 9,936   6,645   4,201   2,540   7,761  Total noninterest income 38,252   38,858   29,100   27,176   33,429             Noninterest expense:         Compensation 75,131   61,910   61,282   74,637   71,424  Occupancy 14,771   14,494   14,207   14,541   14,089  Data processing 6,505   7,102   6,454   6,770   7,044  Other professional services 4,713   4,146   4,258   4,261   4,400  Insurance and assessments 3,939   9,373   4,249   4,168   4,100  Intangible asset amortization 3,751   3,882   3,948   4,153   4,833  Leased equipment depreciation 7,057   7,102   7,205   6,856   5,951  Foreclosed assets expense (income), net 335   (146)  66   (3,446)  8  Acquisition, integration and        reorganization costs -   -   -   (269)  -  Customer related expense 4,762   4,408   3,932   3,952   3,539  Loan expense 3,499   3,379   2,650   2,967   3,628  Goodwill impairment -   -   1,470,000   -   -  Other expense 8,939   11,315   9,719   5,138   7,793  Total noninterest expense 133,402   126,965   1,587,970   123,728   126,809             Earnings (loss) before income taxes 59,174   46,172   (1,421,123)  147,067   151,856  Income tax expense 13,671   12,968   11,988   29,186   41,830  Net earnings (loss) $45,503  $33,204  $(1,433,111) $117,881  $110,026             Basic and diluted earnings (loss) per share$0.38  $0.28  $(12.23) $0.98  $0.92  Dividends declared and paid per share$0.25  $0.25  $0.60  $0.60  $0.60             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,   2020  2020  2020  2019  2019             (Dollars in thousands) Performance Ratios:         Return on average assets (1) 0.65%  0.50%  (21.27)%  1.77%  1.65% Pre-provision, pre-goodwill impairment,       pre-tax net revenue ("PPNR")        return on average assets (1)(2) 2.22%  2.51%  2.39%  2.26%  2.39% Return on average equity (1) 5.18%  3.87%  (116.28)%  9.49%  8.93% Return on average tangible equity (1)(2) 8.20%  6.39%  6.88%  20.68%  19.84% Efficiency ratio 45.1%  42.9%  40.6%  44.8%  42.3% Noninterest expense as a percentage       of average assets (1) 1.90%  1.92%  23.57%  1.86%  1.91%            Average Yields/Costs (1):        Yield on:          Average loans and leases (3) 5.01%  5.01%  5.54%  5.67%  5.91% Average interest-earning assets (3) 4.13%  4.53%  5.02%  5.14%  5.41% Cost of:          Average interest-bearing deposits 0.27%  0.40%  0.95%  1.14%  1.34% Average total deposits 0.17%  0.25%  0.59%  0.71%  0.83% Average interest-bearing liabilities 0.38%  0.55%  1.16%  1.36%  1.60% Net interest spread (3) 3.75%  3.98%  3.86%  3.78%  3.81% Net interest margin (3) 3.90%  4.20%  4.31%  4.33%  4.46%            Average Balances:         Assets:          Loans and leases, net of deferred fees$19,195,737  $19,951,603  $19,065,035  $18,470,583  $18,539,281  Interest-earning assets 25,858,001   24,531,204   23,455,636   22,779,867   22,793,676  Total assets 27,935,193   26,621,227   27,099,040   26,380,739   26,406,603  Liabilities:         Noninterest-bearing deposits 8,812,391   8,292,151   7,357,717   7,338,888   7,487,555  Interest-bearing deposits 14,516,923   13,116,297   11,896,780   12,102,902   12,031,776  Total deposits 23,329,314   21,408,448   19,254,497   19,441,790   19,519,331  Borrowings 181,315   871,110   2,026,749   1,179,220   1,181,313  Subordinated debentures 462,375   459,466   458,399   456,997   456,011  Interest-bearing liabilities 15,160,613   14,446,873   14,381,928   13,739,119   13,669,100  Stockholders' equity 3,497,869   3,446,850   4,956,778   4,930,182   4,890,746             (1) Annualized.         (2) Non-GAAP measure.        (3) Tax equivalent.                   PACWEST BANCORP AND SUBSIDIARIES      FIVE QUARTER SELECTED FINANCIAL DATA                  At or For the Three Months Ended  September 30, June 30, March 31, December 31, September 30,   2020  2020  2020  2019  2019             (Dollars in thousands) Credit Quality Ratios:        Nonaccrual loans and leases held for       investment to loans and leases       held for investment 0.45%  0.84%  0.48%  0.49%  0.53% Nonperforming assets to loans and       leases held for investment and       foreclosed assets 0.52%  0.85%  0.49%  0.49%  0.54% Classified loans and leases held for       investment to loans and leases       held for investment 1.44%  1.49%  0.75%  0.93%  1.01% Provision for credit losses (for the       quarter) to average loans and leases       held for investment (annualized) 2.01%  2.42%  2.36%  0.06%  0.15% Net charge-offs (for the quarter) to       average loans and leases held        for investment (annualized) 0.75%  0.27%  0.40%  0.02%  0.10% Trailing 12 months net charge-offs       to average loans and leases        held for investment 0.36%  0.20%  0.19%  0.09%  0.20% Allowance for loan and lease losses to       loans and leases held for investment 1.82%  1.53%  1.12%  0.74%  0.74% Allowance for credit losses to loans       and leases held for investment 2.33%  1.94%  1.39%  0.93%  0.92% Allowance for credit losses to        nonaccrual loans and leases        held for investment 516.9%  229.7%  287.5%  189.1%  174.0%            PacWest Bancorp Consolidated:       Tier 1 leverage capital ratio (1) 8.66%  8.93%  8.63%  9.74%  9.50% Common equity tier 1 capital ratio (1) 10.46%  9.97%  9.22%  9.78%  9.55% Tier 1 capital ratio (1) 10.46%  9.97%  9.22%  9.78%  9.55% Total capital ratio (1) 13.74%  13.18%  12.07%  12.41%  12.16% Risk-weighted assets (1)$22,109,592  $22,781,836  $24,214,209  $23,582,495  $23,579,614             Equity to assets ratio 12.26%  12.62%  12.97%  18.51%  18.41% Tangible common equity ratio (2) 8.71%  8.93%  9.10%  9.79%  9.65% Book value per share$29.42  $29.17  $28.75  $41.36  $41.06  Tangible book value per share (2)$20.09  $19.80  $19.31  $19.77  $19.43             Pacific Western Bank:        Tier 1 leverage capital ratio (1) 9.70%  10.03%  9.71%  10.95%  10.72% Common equity tier 1 capital ratio (1) 11.71%  11.18%  10.38%  11.00%  10.79% Tier 1 capital ratio (1) 11.71%  11.18%  10.38%  11.00%  10.79% Total capital ratio (1) 12.97%  12.44%  11.39%  11.74%  11.52%            (1) Capital information for September 30, 2020 is preliminary.     (2) Non-GAAP measure.                   GAAP TO NON-GAAP RECONCILIATIONS This press release contains certain non-GAAP financial disclosures for: (1) PPNR, (2) PPNR return on average assets (3) return on average tangible equity, (4) tangible common equity ratio, and (5) tangible book value per share. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. In particular, the use of return on average tangible equity, tangible common equity ratio, tangible book value per share, and PPNR is prevalent among banking regulators, investors, and analysts. Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) net earnings, (2) return on average assets, (3) return on average equity, (4) equity to assets ratio, and (5) book value per share.The tables below present the reconciliations of these GAAP financial measures to the related non-GAAP financial measures: Three Months Ended Nine Months Ended PPNR and PPNR Return September 30, June 30, September 30, September 30, on Average Assets 2020  2020  2019  2020  2019                       (Dollars in thousands)      Net earnings (loss)$45,503  $33,204  $110,026  $(1,354,404) $350,755  Add: Provision for credit losses 97,000   120,000   7,000   329,000   19,000  Add: Goodwill impairment -   -   -   1,470,000   -  Add: Income tax expense 13,671   12,968   41,830   38,627   135,118  Pre-provision, pre-goodwill impairment,       pre-tax net revenue ("PPNR")$156,174  $166,172  $158,856  $483,223  $504,873             Average assets$27,935,193  $26,621,227  $26,406,603  $27,221,102  $26,012,890             Return on average assets (1) 0.65%  0.50%  1.65%  (6.65)%  1.80% PPNR return on average assets (2) 2.22%  2.51%  2.39%  2.37%  2.59%            (1) Annualized net earnings (loss) divided by average assets.      (2) Annualized PPNR divided by average assets.                  Three Months Ended Nine Months Ended  September 30, June 30, September 30, September 30, Return on Average Tangible Equity2020 2020 2019  2020 2019                       (Dollars in thousands) Net earnings (loss)$45,503  $33,204  $110,026  $(1,354,404) $350,755  Add: Intangible asset amortization 3,751   3,882   4,833   11,581   14,573  Add: Goodwill impairment -   -   -   1,470,000   -  Adjusted net earnings$49,254  $37,086  $114,859  $127,177  $365,328                       Average stockholders' equity$3,497,869  $3,446,850  $4,890,746  $3,965,453  $4,842,140  Less: Average intangible assets 1,107,548   1,111,302   2,593,925   1,594,231   2,598,806  Average tangible common equity$2,390,321  $2,335,548  $2,296,821  $2,371,222  $2,243,334                       Return on average equity (1) 5.18%  3.87%  8.93%  (45.62)%  9.68% Return on average tangible equity (2) 8.20%  6.39%  19.84%  7.16%  21.77%            (1) Annualized net earnings divided by average stockholders' equity.      (2) Annualized adjusted net earnings divided by average tangible common equity.                 Tangible Common Equity Ratio/September 30, June 30, March 31, December 31, September 30, Tangible Book Value Per Share 2020  2020  2020  2019  2019             (Dollars in thousands, except per share data) Stockholders' equity$3,486,231  $3,452,898  $3,390,389  $4,954,697  $4,920,108  Less: Intangible assets 1,105,483   1,109,234   1,113,116   2,587,064   2,591,217  Tangible common equity$2,380,748  $2,343,664  $2,277,273  $2,367,633  $2,328,891             Total assets$28,426,716  $27,365,738  $26,143,267  $26,770,806  $26,724,627  Less: Intangible assets 1,105,483   1,109,234   1,113,116   2,587,064   2,591,217  Tangible assets$27,321,233  $26,256,504  $25,030,151  $24,183,742  $24,133,410             Equity to assets ratio 12.26%  12.62%  12.97%  18.51%  18.41% Tangible common equity ratio (1) 8.71%  8.93%  9.10%  9.79%  9.65%            Book value per share$29.42  $29.17  $28.75  $41.36  $41.06  Tangible book value per share (2)$20.09  $19.80  $19.31  $19.77  $19.43  Shares outstanding 118,489,927   118,374,603   117,916,789   119,781,605   119,831,192             (1) Tangible common equity divided by tangible assets.      (2) Tangible common equity divided by shares outstanding.                Contact:Matthew P. WagnerPatrick J. Rusnak  President and CEOExecutive Vice President and CFO Phone:303-802-8900 714-989-4705     Contact:William J. Black   Executive Vice President    Strategy and Corporate Development   Phone:919-597-7466