PacWest Bancorp Announces Results for the First Quarter of 2013

PacWest Bancorp Announces Results for the First Quarter of 2013

Highlights

  *Net Earnings of $13.5 Million or $0.37 Per Diluted Share
  *Net Interest Margin at 5.40%
  *Credit Loss Reserve at 2.43% of Net Non-Covered Loans and Leases and 172%
    of Non-Covered Nonaccrual Loans and Leases
  *Noninterest-Bearing Deposits at 43% and Core Deposits at 83% of Total
    Deposits

LOS ANGELES, April 17, 2013 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq:PACW)
today announced net earnings for the first quarter of 2013 of $13.5 million,
or $0.37 per diluted share, compared to net earnings for the fourth quarter of
2012 of $19.9 million, or $0.54 per diluted share.

This press release contains certain non-GAAP financial disclosures for
tangible common equity, return on average tangible equity, adjusted earnings
before income taxes, and adjusted efficiency ratio. The Company uses certain
non-GAAP financial measures to provide meaningful supplemental information
regarding the Company's operational performance and to enhance investors'
overall understanding of such financial performance. Given that the use of
tangible common equity amounts and ratios and return on average tangible
equity is prevalent among banking regulators, investors and analysts, we
disclose our tangible common equity ratio in addition to equity-to-assets
ratio, and our return on average tangible equity in addition to return on
average equity. Also, as analysts and investors view adjusted earnings before
income taxes as an indicator of the Company's ability to absorb credit losses,
we disclose this amount in addition to pre-tax earnings. We disclose the
adjusted efficiency ratio as it shows the trend in recurring overhead-related
noninterest expense relative to recurring net revenues. Please refer to the
tables at the end of this release for a presentation of performance ratios in
accordance with GAAP and a reconciliation of the non-GAAP financial measures
to the GAAP financial measures.

FIRST QUARTER RESULTS                                      
                                                          
                                          Three Months Ended
                                          March 31,        December 31,
                                          2013             2012
                                          (Dollars in thousands, except per
                                           share data)
Financial Highlights:                                      
Net earnings                              $13,494        $19,892
Diluted earnings per share                 $0.37          $0.54
Adjusted earnings before income taxes (1)  $27,270        $33,865
Annualized return on average assets        1.02%            1.44%
Annualized return on average equity        9.29%            13.51%
Annualized return on average tangible      11.05%           16.12%
equity (2)
Net interest margin                        5.40%            5.49%
Efficiency ratio                           64.5%            60.7%
Adjusted efficiency ratio (3)              61.7%            55.7%
                                                          
At Quarter End:                                            
Allowance for credit losses to non-covered
loans and leases, net of unearned income   2.43%            2.37%
(4)
Allowance for credit losses to
non-coverednonaccrual loans and leases    172%             184%
(4)
Equity to assets ratios:                                   
PacWest Bancorp Consolidated               11.13%           10.78%
Pacific Western Bank                       12.32%           11.93%
Tangible common equity ratios:                             
PacWest Bancorp Consolidated               9.54%            9.21%
Pacific Western Bank                       10.74%           10.38%
                                                          
(1)Represents pre-tax earnings excluding net credit costs, securities gains,
and acquisition and integration costs.See GAAP to Non-GAAP Reconciliation
table.
(2)Calculation reduces average equity by average intangible assets.See GAAP
to Non-GAAP Reconciliation table.
(3)Excludes FDIC loss sharing income, securities gains, OREO expenses, and
acquisition and integration costs.See GAAP to Non-GAAP Reconciliation table.
(4) Non-covered loans exclude loans covered by loss sharing agreements with
the FDIC.

Quarter-over-quarter net earnings declined $6.4 million due mostly to four
items: (a) the $2.6 million after tax decline in interest income on loans and
leases; (b) the $2.5 million after tax increase in net credit costs; (c) the
$1.1 million after tax decline in gain on asset sales; and (d) the $1.2
million after tax increase in compensation expense.

Adjusted earnings before income taxes declined $6.6 million to $27.3 million
for the first quarter from $33.9 million for the fourth quarter. Two items
caused the decline: $4.4 million in lower interest income on loans and leases
and $2.1 million in higher compensation. The lower interest income was a
function of (a) a lower portfolio yield ($1.9 million in interest) as new
loans and refinancings are being closed in this low rate environment; (b) two
fewer days in the first quarter ($1.3 million in interest); and (c) a lower
portfolio average balance ($1.2 million interest) as we are not competing for
loans that are unprofitable or that generate undue interest rate risk. The
increase in compensation expense quarter-over-quarter was due to (a) $1.2
million in higher payroll taxes attributable to the start of a new year, (b)
$794,000 in base salary increases effective March 1 and higher incentive
compensation also due to the start of a new year, and (c) $232,000 in lower
cost deferrals due to lower new loan originations.

Net credit costs on a pre-tax basis are shown in the following table:

                                                       Three Months Ended
                                                       March 31, December 31,
                                                       2013      2012
                                                       (In thousands)
Provision (negative provision) for credit losses on     $--     $--
non-covered loans and leases
Non-covered OREO expense, net                           313      316
Total non-covered net credit costs                      313      316
                                                                
Provision (negative provision) for credit losses on     3,137    (4,333)
covered loans
Covered OREO income, net                                (813)    (461)
                                                       2,324    (4,794)
Less:FDIC loss sharing expense, net                    (3,137)  (6,022)
Total covered net credit costs                          5,461    1,228
                                                                
Total net credit costs                                  $5,774  $1,544

The $2.5 million after tax increase in net credit costs is due principally to
a positive credit loss provision on covered loans in the first quarter
compared to a negative provision in the fourth quarter, which lowered net
earnings quarter-over-quarter by $4.3 million after tax. This was offset,
however, by lower FDIC loss sharing expense of $1.7 million after tax. The
covered credit loss provision in the first quarter was due largely to updated
appraisals on two collateral-dependent covered loan relationships while the
negative provision in the fourth quarter was due to increases in expected cash
flows on covered loans generally. Cash flows on covered loans are estimated
quarterly and are subject to change based on varying conditions with the
underlying borrowers and collateral.

Matt Wagner, Chief Executive Officer, commented, "Our first quarter results
continue to demonstrate sustained profits and a strong balance sheet, with
adjusted net earnings of $17.0 million and stockholders' equity at 11.1% of
assets. Our net interest margin remains at a superior level compared to peers
and credit quality continues to be stable. Loan growth is challenging, as we
continue to resist competing for term real estate loans having rates
substantially below our net interest margin and durations that give rise to
unacceptable interest rate risk. Nevertheless, we grew the C&I portfolio by
$6.8 million, with our asset financing segment leading the way with a net
$49.2 million in new loans and leases. Our loan pipeline for the next three
quarters has built-up nicely due to slowly improving economic conditions in
our markets, our focus on existing customers for referrals, and service levels
that enable us to attract and retain business from the larger banks."

Mr. Wagner continued, "Our main second quarter goal is the completion of the
FCAL merger and its integration into our business lines and systems. The FCAL
transaction is expected to expand our market presence and enhance our
efficiency and profits. We will continue, however, to focus on improving
profitability, making and renewing quality and profitable loans with customers
and new relationships, and explore growth opportunities as they arise."

Vic Santoro, Chief Financial Officer, stated, "Our first quarter net interest
margin remained strong at 5.40%, and, when adjusted for volatility items,
stood at 5.28%, which is in line with expectations. The asset financing
segment loan and lease portfolio carries double-digit rates and continues to
augment our NIM, with a portfolio yield at 11.66% for the first quarter. Our
deposit cost declined as expected to 0.23% in the first quarter, with future
maturities of higher rate time deposits bringing that rate down further.While
our liquidity level continues to be high, it stands ready to absorb new
lending as loans pass through the pipelines onto our balance sheet."

BALANCE SHEET CHANGES

Total assets declined $163.8 million during the first quarter of 2013 due to
repayments on non-covered and covered loans, and lower balances of
interest-earning deposits in financial institutions. At March 31, 2013, gross
non-covered loans and leases totaled $3.0 billion and the covered loan
portfolio was $483.1 million. The gross non-covered loan and lease portfolio
decreased $91.2 million for the first quarter of 2013, including loan pay-offs
of approximately $170 million. Our regional presidents reported that loans
having balances of $1.0 million or more and refinanced by other lenders
totaled approximately $75 million; we purposely have not competed on these
refinancings because of the low rates and long durations offered by other
lenders. We experienced net increases in leases and commercial loans of $30.4
million and $6.8 million, respectively. The covered loan portfolio declined
$34.2 million due to repayments and resolution activities.Interest-earning
deposits in financial institutions declined $34.4 million during the first
quarter of 2013 to $41.0 million at March 31, 2013.

Total liabilities declined $164.4 million during the first quarter of 2013 due
to lower total deposits. Total deposits decreased $155.9 million during the
first quarter to $4.6 billion at March 31, 2013. Core deposits declined $92.4
million during the first quarter due mostly to a decrease of $97.5 million in
money market deposits, approximately $80 million of which was expected to
occur. Time deposits declined $63.5 million during the first quarter to $756.8
million at March 31, 2013. At March 31, 2013, core deposits totaled $3.8
billion, or 83% of total deposits, and noninterest-bearing demand deposits,
which held steady at $1.9 billion, were 43% of total deposits at that date.

SECURITIES AVAILABLE-FOR-SALE

The following table presents the components, yields, and durations of our
securities available-for-sale as of the date indicated:

                            March 31, 2013
                            Amortized  Carrying         Duration
Security Type                Cost       Value      Yield (in
                                                       (1)   years)
                            (Dollars in thousands)
Residential mortgage-backed                                
securities:
Government agency and
government-sponsored         $751,011   $781,628   1.88%  3.9
enterprise pass through
securities
Government agency and
government-sponsored         97,524      99,105      1.03%  3.6
enterprise collateralized
mortgage obligations
Covered private label
collateralized mortgage      34,933      43,785      9.23%  4.1
obligations
Municipal securities (2)     362,212     365,425     2.79%  6.5
Corporate debt securities   60,807      61,204      3.13%  12.4
Other securities             6,385       11,630      --    --
Total securities             $1,312,872 $1,362,777 2.35%  4.9
available-for-sale (2)
                                                          
(1) Represents the yield for the month of March 2013.
(2) The tax equivalent yield was 4.10% and 2.70% for municipal
securities and total securities available-for-sale, respectively.

The following table shows the geographic composition of the majority of our
municipal securities portfolio as of the date indicated:

                              March 31, 2013
                              Carrying       % of
                              Value          Total
                              (In thousands) 
Municipal Securities by State:               
Texas                          $62,145      17%
Washington                     35,395        10%
New York                       24,640        7%
Illinois                       24,170        6%
Colorado                       18,372        5%
Florida                        16,089        4%
Ohio                           14,831        4%
Connecticut                    14,335        4%
Minnesota                      14,115        4%
California                     14,014        4%
Total of 10 largest states     238,106       65%
All other states               127,319       35%
Total municipal securities     $365,425     100%

COVERED ASSETS

As part of the Los Padres and Affinity acquisitions we entered into loss
sharing agreements with the FDIC that cover a substantial portion of losses
incurred after the acquisition dates on covered loans and other real estate
owned, and in the case of the Affinity acquisition, certain investment
securities. A summary of covered assets is shown in the following table as of
the dates indicated:

                             March 31,  December 31,
Covered Assets                2013       2012
                             (In thousands)
Loans, net                    $483,063 $517,258
Investment securities        43,785    44,684
Other real estate owned, net 17,311    22,842
Total covered assets         $544,159 $584,784
                                       
Percentage of total assets    10.3%      10.7%

NET INTEREST INCOME

Net interest income declined by $3.9 million to $65.7 million for the first
quarter of 2013 compared to $69.6 million for the fourth quarter of 2012 due
primarily to lower interest income on loans and leases. The $4.4 million
decline in interest income on loans and leases was due to the combination of
three factors: (a) a lower portfolio yield ($1.9 million) as we continue to
operate in a low interest rate environment where new loans and refinancings
are being completed at rates below the current portfolio yield; (b) two fewer
days in the current quarter ($1.3 million); and (c) the lower average
portfolio balance ($1.2 million) as we have avoided lending at rates
substantially below our net interest margin and/or at longer durations that
would increase our interest rate risk profile. Interest expense declined by
$523,000 due mostly to lower rates and average balances of time and money
market deposits.

NET INTEREST MARGIN

Our net interest margin ("NIM") for the first quarter of 2013 was 5.40%,
compared to 5.49% reported for the fourth quarter of 2012. The NIM is impacted
by several items that cause volatility from period to period. The effects of
such items on the NIM are shown in the following table for the periods
indicated:

                                                   Three Months Ended
                                                   March 31,   December 31,
Items Impacting NIM Volatility                      2013        2012
                                                   Increase (Decrease) in NIM
Accelerated accretion of acquisition discounts      0.04%       0.13%
resulting from covered loan payoffs
Nonaccrual loan interest                            0.01%       0.01%
Unearned income on early repayment of leases        0.08%       0.03%
Celtic loan portfolio premium amortization          (0.01)%     (0.01)%
Total                                               0.12%       0.16%
                                                              
Reported NIM                                        5.40%       5.49%

The following table presents the loan yields and related average balances for
our non-covered loans, covered loans, and total loan portfolio for the periods
indicated:

                            Three Months Ended
                            March 31,    December 31,
                            2013         2012
                            (Dollars in thousands)
Yields:                                  
Non-covered loans and leases 6.71%        6.83%
Covered loans                9.23%        9.81%
Total loans and leases       7.07%        7.30%
                                        
Average Balances:                        
Non-covered loans and leases $2,999,002 $3,026,121
Covered loans                501,893     539,514
Total loans and leases       $3,500,895 $3,565,635

The loan yield is impacted by the same items which cause volatility in the
NIM. The following table presents the effects of these items on the total loan
yield for the periods indicated:

                                            Three Months Ended
                                            March 31,       December 31,
Items Impacting Loan Yield Volatility        2013            2012
                                            Increase (Decrease) in Loan Yield
Accelerated accretion of acquisition
discounts resulting from covered loan        0.08%           0.16%
payoffs
Nonaccrual loan interest                     0.01%           0.02%
Unearned income on early repayment of leases 0.10%           0.05%
Celtic loan portfolio premium amortization   (0.02)%         (0.01)%
Total                                        0.17%           0.22%

The yield on average loans and leases decreased 23 basis points to 7.07% for
the first quarter of 2013 from 7.30% for the fourth quarter of 2012.This was
due mainly to lower accelerated accretion of acquisition discounts from
covered loan payoffs.Accelerated accretion of acquisition discounts from
covered loan payoffs totaled approximately $677,000 for the first quarter of
2013 and $1.5 million for the fourth quarter of 2012, increasing the loan
yields by 8 basis points and 16 basis points, respectively. Such accelerated
accretion of acquisition discounts increased the covered loan portfolio yields
by 55 basis points for the first quarter of 2013 and 110 basis points for the
fourth quarter of 2012. Total income from early lease payoffs was $857,000 in
the first quarter of 2013 and $466,000 in the fourth quarter of 2012.

The cost of total interest-bearing liabilities declined four basis points to
0.52% for the first quarter of 2013 from 0.56% for the fourth quarter of 2012.
All-in deposit cost declined two basis points to 0.23% during the first
quarter of 2013 from 0.25% for the fourth quarter of 2012. Such declines are
due to lower rates on money market and time deposits. Time deposits maturing
over the next 12 months total $607.0 million and bear a weighted-average rate
of 1.01%.

NONINTEREST INCOME

Noninterest income increased by $783,000 to $2.8 million for the first quarter
of 2013 compared to $2.1 million for the fourth quarter of 2012.  The change
was due to lower net FDIC loss sharing expense, offset by lower gains on sales
of leases and securities. 

The first quarter of 2013 included net FDIC loss sharing expense of $3.1
million compared to the fourth quarter of 2012 net FDIC loss sharing expense
of $6.0 million; such change was due mostly to a higher provision for credit
losses on covered loans and lower covered loan recoveries, offset by higher
amortization of the FDIC loss sharing asset. The increase in quarterly
amortization relates to lower estimated losses expected to be collected from
the FDIC over the life of the loss sharing contracts. 

Gain on sale of leases decreased by $1.0 million to a more sustainable
$225,000, and gain on sale of securities decreased by $830,000 to $409,000.
While we do not rely on asset sales to generate net earnings, our leasing
operation periodically sells leases to manage credit risk and portfolio
size.In addition, we sold $12.4 million in corporate debt securities in the
first quarter of 2013 and $43.9 million in government agency and
government-sponsored enterprise pass through securities in the fourth quarter
of 2012 to reduce overall portfolio price volatility and extension risk.

The following table presents the details of FDIC loss sharing income
(expense), net for the periods indicated:

                               Three Months Ended
                               March 31,       December 31,     Increase
                               2013            2012             (Decrease)
                               (In thousands)
FDIC Loss Sharing                                             
Income (Expense), Net:                                         
Gain on FDIC loss sharing asset $4,057        $303           $3,754
(1)
FDIC loss sharing asset         (5,991)        (3,740)         (2,251)
amortization, net
Loan recoveries shared with     (591)          (2,180)         1,589
FDIC (2)
Net reimbursement (to) from
FDIC for covered OREO activity  (614)          (409)           (205)
(3)
Other                           2              4               (2)
FDIC loss sharing income        $(3,137)      $(6,022)       $2,885
(expense), net
                                                              
(1) Includes increases related to covered loan loss provisions and decreases
for write-offsfor covered loans expected to be resolved at amounts higher
than their carrying value.
(2) Represents amounts to be reimbursed to the FDIC for covered loans resolved
at amounts higher than their carrying values.
(3) Represents amounts to be reimbursed to the FDIC for gains on covered OREO
sales and due from the FDIC for covered OREO write-downs.

NONINTEREST EXPENSE

Noninterest expense increased by $658,000 to $44.2 million during the first
quarter of 2013 compared to $43.5 million for the fourth quarter of 2012. With
the exception of compensation costs and business development expense, overhead
expense categories decreased quarter-over-quarter, as management continues to
focus on controlling noninterest expenses. Compensation costs increased $2.1
million due mainly to the timing of payroll taxes, higher base salaries and
incentive compensation, and lower cost deferral on new loan originations.
Payroll taxes are always higher in the first quarter of a calendar year, and
this item accounted for $1.2 million of the increase. Base salary increases,
effective March 1, and higher incentive compensation costs, also attributable
to the start of a new year, accounted for $794,000 of the increase. Lastly,
lower new loan volume resulted in lower deferral of direct loan origination
compensation costs of $232,000. Acquisition and integration costs, which
declined $400,000, will vary from period-to-period due to the timing of such
activities. Covered OREO expense decreased $352,000 due mainly to higher gains
on sales of $982,000 offset by higher write-downs of $727,000.

Noninterest expense includes (a) amortization of time-based restricted stock,
which is included in compensation, and (b) intangible asset amortization.
Amortization of restricted stock totaled $1.8 million for the first quarter of
2013 and $1.4 million for the fourth quarter of 2012. Intangible asset
amortization totaled $1.2 million for each of the first quarter of 2013 and
the fourth quarter of 2012.

CREDIT QUALITY

Credit quality metrics remain stable quarter over quarter, with coverage
ratios remaining strong.Economic trends in our markets will cause periodic
movements in nonaccrual and classified loan and lease balances. However,
losses on such nonaccrual and classified loans and leases are not expected to
be material.

                                                                  
                                             March 31, December 31, March 31,
                                             2013      2012         2012
                                             (Dollars in thousands)
Non-Covered Credit Quality Metrics:                                
Allowance for credit losses                  $71,896 $72,119    $81,737
Nonaccrual loans and leases                   41,893   39,284      48,162
Classified loans and leases (1)               105,201  101,019     145,933
Performing restructured loans                 80,501   106,288     110,062
Net charge-offs (for the quarter)             223      2,893       2,046
Provision (negative provision) for credit     --       --          (10,000)
losses (for the quarter)
Allowance for credit losses to loans and      2.43%     2.37%        2.85%
leases,net of unearned income
Allowance for credit losses to nonaccrual     171.6%    183.6%       169.7%
loans and leases
Nonperforming assets to loans and leases, net
ofunearned income, and other real estate     2.60%     2.37%        3.24%
owned
                                                                  
(1) Classified loans and leases are those with a credit risk rating of
substandard or doubtful.

Our non-covered loans and leases at March 31, 2013, include $279.6 million in
loans and leases acquired in our 2012 acquisitions that were initially
recorded at their estimated fair values.The fair value amounts at which these
loans were initially recorded included an estimate of their credit losses. The
allowance calculation takes into consideration those loans and leases whose
credit quality has deteriorated since the acquisition.At March 31, 2013, $1.5
million of our allowance for credit losses applies to such loans and leases.
When these loans and leases are excluded from the total of non-covered loans
and leases, the coverage ratio of our allowance for credit losses increases to
2.63% at March 31, 2013; the comparable ratio at December 31, 2012, was
2.58%.

Credit Loss Provisions

The Company recorded a provision for credit losses of $3.1 million in the
first quarter of 2013 compared to a negative provision for credit losses of
$4.3 million in the fourth quarter of 2012 as follows:

                                                       Three Months Ended
                                                       March 31, December 31,
                                                       2013      2012
                                                       (In thousands)
Provision (Negative Provision) for                              
Credit Losses on:                                                
Non-covered loans and leases                            $--     $--
Covered loans                                           3,137    (4,333)
Total provision (negative provision) for credit losses $3,137  $(4,333)

The provision level on the non-covered portfolio is generated by our allowance
methodology, which reflects the level and trends of net charge-offs, the
levels of nonaccrual and classified loans and leases, the migration of loans
and leases into various risk classifications, and the level of outstanding
loans and leases.Based on such methodology, there was no provision for credit
losses on non-covered loans and leases for the first quarter of 2013 and the
fourth quarter of 2012.

The provision, or negative provision, for credit losses on covered loans
results from decreases, or increases, in expected cash flows on such loans
compared to those previously estimated.Cash flows on covered loans are
estimated quarterly and are subject to change based on varying conditions with
the underlying borrowers and collateral. The covered loan credit loss
provision in the first quarter of 2013 was due largely to updated appraisals
on two collateral-dependent covered loan relationships, while the negative
provision in the fourth quarter was due to increases in expected cash flows on
covered loans generally.

Non-covered Nonperforming Assets

Non-covered nonperforming assets include non-covered nonaccrual loans and
leases and non-covered OREO and totaled $77.9 million at March 31, 2013
compared to $72.9 million at December 31, 2012.The ratio of non-covered
nonperforming assets to non-covered loans and leases and non-covered OREO
increased to 2.60% at March 31, 2013 from 2.37% at December 31, 2012.

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

                 Nonaccrual Loans and Leases (1)           Accruing and
                 March 31, 2013       December 31, 2012    30 - 89 Days Past
                                                            Due (1)
                           % of                % of      March 31, December
                                                                      31,
                           Loan                Loan      2013      2012
                 Balance    Category  Balance    Category  Balance   Balance
                 (Dollars in thousands)
Real estate                                                      
mortgage:
Hospitality       $6,823   4.0%      $6,908   3.8%      $--     $--
SBA 504           2,936     5.3%      2,982     5.5%      1,066    955
Other (2)         20,045    1.3%      15,929    0.9%      26,077   1,408
Total real estate 29,804    1.7%      25,819    1.3%      27,143   2,363
mortgage
Real estate                                                      
construction:
Residential       1,046     2.4%      1,057     2.2%      --       --
Commercial (2)    1,447     1.7%      2,715     3.3%      7,290    --
Total real estate 2,493     2.0%      3,772     2.9%      7,290    --
construction
Commercial:                                                      
Collateralized    3,306     0.8%      2,648     0.6%      542      166
Unsecured         1,471     1.9%      2,019     2.9%      132      138
Asset-based      281       0.1%      176       0.1%      --       --
SBA 7(a)         3,867     15.4%     4,181     16.5%     118      313
Total commercial  8,925     1.1%      9,024     1.1%      792      617
Leases            244       0.1%      244       0.1%      44       357
Consumer         427       2.3%      425       1.9%      26       15
Total non-covered $41,893  1.4%      $39,284  1.3%      $35,295 $3,352
loans and leases
                                                                
(1) Excludes covered loans.                                        
(2) Included in the 30-89 days past due amount at March 31, 2013, are two
loans to the same borrower totaling $32.3 million.These loans, which were 32
days past due at quarter-end, are now current.

The $2.6 million increase in non-covered nonaccrual loans and leases during
the first quarter of 2013 was attributable to (a) additions of $6.4 million,
(b) charge-offs of $1.1 million and (c) other reductions, payoffs and returns
to accrual status of $2.7 million. 

Below is a summary of the ten largest lending relationships on nonaccrual
status, excluding SBA-related loans, as of the date indicated:

Nonaccrual     
Amount       
March 31,      
2013           Description
(In thousands) 
              
               Two loans, each secured by a hotel in San Diego County,
$6,823       California.The borrower is paying according to the
               restructured terms of each loan.(1)
              
3,472         Two loans, one of which is secured by an office building in
              Clark County, Nevada, and the other is secured by an office
               building in Maricopa County, Arizona. (1)
              
2,692         This loan is secured by an office building in San Diego County,
               California. (2)
              
2,358         This loan is secured by a strip retail center in Riverside
               County, California. (1)
              
1,877         This loan is secured by a strip retail center in Clark County,
               Nevada. (1)
              
1,425         This loan is secured by two industrial buildings in San Diego
               County, California. (1)
              
1,298         This loan is secured by an industrial building in San
               Bernardino County, California (2).
              
1,250         This loan is unsecured and has a specific reserve for 100% of
               the balance. (1)
              
1,173         Two loans, one of which is secured by an apartment building in
              San Diego County, California, and the other is secured by an
               office building in San Diego County, California. (1)
              
1,147         This loan is secured by three industrial buildings in Riverside
               County, California. (1)
              
$23,515      Total
              
(1) On nonaccrual status at December 31, 2012.
(2) New nonaccrual in first quarter of 2013.

The following table presents the details of non-covered and covered OREO as of
the dates indicated:

                                  March 31, 2013      December 31, 2012
                                  Non-               Non-      
                                  Covered   Covered  Covered   Covered
Property Type                      OREO      OREO      OREO      OREO
                                  (In thousands)
Commercial real estate            $791    $7,292  $1,684  $11,635
Construction and land development 31,670   6,475    31,888   6,708
Multi-family                       --       3,301    --       4,239
Single family residence            3,500    243      --       260
Total OREO, net                    $35,961 $17,311 $33,572 $22,842

The following table presents non-covered and covered OREO activity for the
period indicated:

                           Three Months Ended
                           March 31, 2013
                           Non-Covered Covered  Total
                           OREO        OREO      OREO
                           (In thousands)
Beginning of period         $33,572   $22,842 $56,414
Foreclosures                3,500      1,480    4,980
Provision for losses        (92)       (1,093)  (1,185)
Reductions related to sales (1,019)    (5,918)  (6,937)
End of period               $35,961   $17,311 $53,272
                                               
Net gain on sale            $49       $1,861  $1,910

REGULATORY CAPITAL MEASURES ARE ABOVE THE WELL-CAPITALIZED MINIMUMS

PacWest and its wholly-owned banking subsidiary, Pacific Western Bank, each
remained well capitalized as of the date indicated as shown in the following
table:

                                March 31, 2013
                                Well       Pacific PacWest
                                Capitalized Western Bancorp
                                Requirement Bank    Consolidated
Tier 1 leverage capital ratio   5.00%       10.15%  10.89%
Tier 1 risk-based capital ratio 6.00%       14.51%  15.58%
Total risk-based capital ratio   10.00%      15.78%  16.85%
Tangible common equity ratio     N/A         10.74%  9.54%

FIRST CALIFORNIA FINANCIAL GROUP ACQUISITION

PacWest Bancorp expects to close the acquisition of First California Financial
Group, Inc. ("FCAL") in the second quarter of 2013, subject to receipt of
remaining regulatory approvals. Under the terms of the merger, PacWest will
acquire FCAL for $8.00 per FCAL common share, or an estimated $231 million in
aggregate consideration, payable in PacWest Bancorp common stock.

FCAL is the holding company for First California Bank ("FCB"), a full-service
commercial bank headquartered in Westlake Village, California. FCB provides a
full range of banking services, including revolving lines of credit, term
loans, commercial real estate loans, construction loans, consumer loans and
home equity loans to individuals, professionals, and small to mid-sized
businesses.FCB operates throughout Southern California in the Los Angeles,
Orange, Riverside, San Bernardino, San Diego, Ventura, and San Luis Obispo
Counties.

ABOUT PACWEST BANCORP

PacWest Bancorp ("PacWest") is a bank holding company with $5.3 billion in
assets as of March 31, 2013, with one wholly-owned banking subsidiary, Pacific
Western Bank ("Pacific Western"). Through 67 full-service community banking
branches, Pacific Western provides commercial banking services, including real
estate, construction and commercial loans, to small and medium-sized
businesses. Pacific Western's branches are located throughout California in
Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, San Diego, San
Francisco, San Luis Obispo, San Mateo and Ventura Counties. Through its
subsidiaries, BFI Business Finance and Celtic Capital Corporation, and its
divisions First Community Financial and Pacific Western Equipment Finance,
Pacific Western also provides working capital financing and equipment leasing
to growing companies located throughout the United States, with a focus on the
Southwestern U.S., primarily in Arizona, California, Utah and Texas.
Additional information regarding PacWest Bancorp is available on the Internet
at www.pacwestbancorp.com. Information regarding Pacific Western Bank is also
available on the Internet at www.pacificwesternbank.com.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking information about PacWest
that is intended to be covered by the safe harbor for "forward-looking
statements" provided by the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact are forward-looking
statements. Such statements involve inherent risks and uncertainties, many of
which are difficult to predict and are generally beyond the control of the
Company. We caution readers that a number of important factors could cause
actual results to differ materially from those expressed in, implied or
projected by, such forward-looking statements. Risks and uncertainties
include, but are not limited to: failure to obtain regulatory or other
required approvals; an inability to achieve expected cost savings in the
amounts or timeframes discussed if at all, or the costs associated with
transactions or the time needed to complete transactions being greater than
expected; lower than expected revenues; credit quality deterioration or a
reduction in real estate values could cause an increase in the allowance for
credit losses and a reduction in net earnings; increased competitive pressure
among depository institutions; the Company's ability to complete future
acquisitions, successfully integrate such acquired entities, or achieve
expected beneficial synergies and/or operating efficiencies within expected
time-frames or at all; settlements with the FDIC related to our loss-sharing
arrangements from the Los Padres Bank and Affinity Bank acquisitions; the
possibility that personnel changes will not proceed as planned; the cost of
additional capital is more than expected; a change in the interest rate
environment reduces net interest margins; asset/liability repricing risks and
liquidity risks; pending legal matters may take longer or cost more to resolve
or may be resolved adversely to the Company; general economic conditions,
either nationally or in the market areas in which the Company does or
anticipates doing business, are less favorable than expected; environmental
conditions, including natural disasters, may disrupt our business, impede our
operations, negatively impact the values of collateral securing the Company's
loans and leases or impair the ability of our borrowers to support their debt
obligations; the economic and regulatory effects of the continuing war on
terrorism and other events of war, including the conflicts in the Middle East;
legislative or regulatory requirements or changes adversely affecting the
Company's business; changes in the securities markets; regulatory approvals
for any capital activities cannot be obtained on the terms expected or on the
anticipated schedule; and, other risks that are described in PacWest's public
filings with the U.S. Securities and Exchange Commission (the "SEC"). If any
of these risks or uncertainties materializes or if any of the assumptions
underlying such forward-looking statements proves to be incorrect, PacWest's
results could differ materially from those expressed in, implied or projected
by such forward-looking statements. PacWest assumes no obligation to update
such forward-looking statements.

For a more complete discussion of risks and uncertainties, investors and
security holders are urged to read PacWest Bancorp's annual report on Form
10-K, quarterly reports on Form 10-Q and other reports filed by PacWest with
the SEC.The documents filed by PacWest with the SEC may be obtained at
PacWest Bancorp's website at www.pacwestbancorp.com or at the SEC's website at
www.sec.gov.These documents may also be obtained free of charge from PacWest
by directing a request to: PacWest Bancorp c/o Pacific Western Bank, 275 North
Brea Boulevard, Brea, CA 92821. Attention: Investor Relations. Telephone
714-671-6800.

                                                        
PACWEST BANCORP AND SUBSIDIARIES                         
CONDENSED CONSOLIDATED BALANCE                           
SHEETS
(Unaudited)                                              
                                                        
                                    March 31,            December 31,
                                    2013                 2012
                                    (In thousands, except per share and share
                                     data)
ASSETS                                                   
Cash and due from banks              $90,659            $89,011
Interest-earning deposits in         41,019              75,393
financial institutions
Total cash and cash equivalents      131,678             164,404
                                                        
Non-covered securities               1,318,992           1,310,701
available-for-sale
Covered securities                   43,785              44,684
available-for-sale
Total securities available-for-sale, 1,362,777           1,355,385
at estimated fair value
Federal Home Loan Bank stock, at     33,400              37,126
cost
Total investment securities          1,396,177           1,392,511
                                                        
Non-covered loans and leases, net of 2,956,897           3,046,970
unearned income
Allowance for loan and lease losses  (65,216)            (65,899)
Total non-covered loans and leases,  2,891,681           2,981,071
net
Covered loans, net                   483,063             517,258
Total loans and leases, net          3,374,744           3,498,329
                                                        
Non-covered other real estate owned, 35,961              33,572
net
Covered other real estate owned, net 17,311              22,842
Total other real estate owned, net   53,272              56,414
                                                        
Premises and equipment, net          18,950              19,503
FDIC loss sharing asset              55,840              57,475
Cash surrender value of life         68,587              68,326
insurance
Goodwill                            79,673              79,866
Core deposit and customer            13,547              14,723
relationship intangibles, net
Other assets                         107,437             112,107
Total assets                         $5,299,905         $5,463,658
                                                        
LIABILITIES                                              
Noninterest-bearing demand deposits  $1,941,234         $1,939,212
Interest-bearing deposits            2,611,996           2,769,909
Total deposits                       4,553,230           4,709,121
Borrowings                           11,196              12,591
Subordinated debentures              108,250             108,250
Accrued interest payable and other   37,433              44,575
liabilities
Total liabilities                    4,710,109           4,874,537
STOCKHOLDERS' EQUITY (1)             589,796             589,121
Total liabilities and stockholders'  $5,299,905         $5,463,658
equity
                                                        
(1) Includes net unrealized gain on  $28,945            $32,900
securities available-for-sale, net
                                                        
Book value per share                 $15.91             $15.74
Tangible book value per share        $13.40             $13.22
                                                        
Shares outstanding (includes                             
unvested restricted shares of
1,203,495 at March 31, 2013;         37,071,357          37,420,909
1,698,281 at December 31, 2012)

                                                                 
                                                                 
PACWEST BANCORP AND SUBSIDIARIES                                  
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS                      
(Unaudited)                                                       
                                                                 
                                        Three Months Ended
                                        March 31,   December 31,   March 31,
                                        2013        2012           2012
                                        (In thousands, except per share data)
Interest income:                                                  
Loans and leases                         $61,010   $65,455      $64,752
Investment securities                   8,216      8,173         9,580
Deposits in financial institutions      43         74            68
Total interest income                   69,269     73,702        74,400
                                                                 
Interest expense:                                                 
Deposits                                2,649      3,039         3,604
Borrowings                              144        228           1,925
Subordinated debentures                 783        832           1,191
Total interest expense                  3,576      4,099         6,720
                                                                 
Net interest income                      65,693     69,603        67,680
                                                                 
Provision (negative provision)                                    
forcredit losses:
Non-covered loans and leases             --         --            (10,000)
Covered loans                            3,137      (4,333)       3,926
Total provision (negative provision) for 3,137      (4,333)       (6,074)
credit losses
                                                                 
Net interest income after provision for  62,556     73,936        73,754
credit losses
                                                                 
Noninterest income:                                               
Service charges on deposit accounts      2,863      3,063         3,353
Other commissions and fees              1,933      2,025         1,883
Gain on sale of leases                   225        1,242         990
Gain on sale of securities              409        1,239         --
Increase in cash surrender value of life 433        300           365
insurance
FDIC loss sharing expense, net           (3,137)    (6,022)       (3,579)
Other income                             114        210           250
Total noninterest income                2,840      2,057         3,262
                                                                 
Noninterest expense:                                              
Compensation                            25,350     23,269        24,187
Occupancy                               6,598      6,773         7,288
Data processing                         2,233      2,272         2,280
Other professional services             2,097      2,200         1,770
Business development                    736        684           638
Communications                          613        637           608
Insurance and assessments               1,261      1,270         1,293
Non-covered other real estate owned, net 313        316           1,821
Covered other real estate owned (income) (813)      (461)         822
expense, net
Intangible asset amortization           1,176      1,176         1,735
Acquisition and integration              692        1,092         25
Debt termination                         --         --            22,598
Other expenses                           3,927      4,297         3,830
Total noninterest expense               44,183     43,525        68,895
                                                                 
Earnings before income taxes            21,213     32,468        8,121
Income tax expense                      (7,719)    (12,576)      (2,857)
Net earnings                            $13,494   $19,892      $5,264
                                                                 
Basic and diluted earnings per share     $0.37     $0.54        $0.14

                                                             
                                                             
PACWEST BANCORP AND                                           
SUBSIDIARIES
AVERAGE BALANCE SHEETS AND                                    
YIELD ANALYSIS
(Unaudited)                                                   
                                                             
                              Three Months Ended
                              March 31,        December 31,    March 31,
                              2013             2012            2012
                              (Dollars in thousands)
Average Assets:                                               
Loans and leases, net of       $3,500,895     $3,565,635    $3,562,766
unearned income
Investment securities          1,365,210       1,364,457      1,363,067
Interest-earning deposits in   69,056          116,406        103,557
financial institutions
Average interest-earning       4,935,161       5,046,498      5,029,390
assets
Other assets                   440,990         458,520        471,177
Average total assets           $5,376,151     $5,505,018    $5,500,567
                                                             
Average liabilities:                                          
Interest checking deposits     $523,503       $512,322      $513,190
Money market deposits          1,207,332       1,257,094      1,199,226
Savings deposits               155,687         156,838        160,958
Time deposits                  796,644         839,783        942,501
Average interest-bearing       2,683,166       2,766,037      2,815,875
deposits
Borrowings                     12,561          21,126         239,779
Subordinated debentures        108,250         108,250        123,393
Average interest-bearing       2,803,977       2,895,413      3,179,047
liabilities
Noninterest-bearing demand     1,940,435       1,977,999      1,719,003
deposits
Other liabilities              42,532          46,081         49,731
Average total liabilities      4,786,944       4,919,493      4,947,781
Average stockholders' equity   589,207         585,525        552,786
Average liabilities and       $5,376,151     $5,505,018    $5,500,567
stockholders' equity
                                                             
Average deposits              $4,623,601     $4,744,036    $4,534,878
                                                             
Yield on:                                                     
Average loans and leases       7.07%            7.30%           7.31%
Average investment securities  2.44%            2.38%           2.83%
Average interest-earning       0.25%            0.25%           0.26%
deposits
Average interest-earning       5.69%            5.81%           5.95%
assets
                                                             
Cost of:                                                      
Average deposits/all-in        0.23%            0.25%           0.32%
deposit cost (1)
Average interest-bearing       0.40%            0.44%           0.51%
deposits
Average borrowings             4.65%            4.29%           3.23%
Average subordinated           2.93%            3.06%           3.88%
debentures
Average interest-bearing       0.52%            0.56%           0.85%
liabilities
                                                             
Net interest rate spread (2)   5.17%            5.25%           5.10%
Net interest margin (3)        5.40%            5.49%           5.41%
                                                             
(1) Cost of average deposits/all-in deposit cost is calculated as annualized
interest expense on deposits divided by average deposits.
(2) Net interest rate spread is calculated as the yield on average
interest-earning assets less the cost of average interest-bearing liabilities.
(3) Net interest margin is calculated as annualized net interest income
divided by average interest-earning assets.

                                                                   
                                                                   
PACWEST BANCORP AND                                                 
SUBSIDIARIES
LOAN CONCENTRATION                                                 
(Unaudited)                                                         
                                                                   
                       March 31, 2013
                       Total Loans        Non-Covered Loans  
                       and Leases         and Leases         Covered Loans
                                   % of              % of            % of
                       Amount       Total Amount       Total Amount     Total
                       (Dollars in thousands)
Real estate mortgage:                                               
Hospitality             $173,676   5%    $172,472   6%    $1,204   --
SBA 504                 55,403      2%    55,403      2%    --        --
Other                   2,097,837   59%   1,568,609   53%   529,228   95%
Total real estate       2,326,916   66%   1,796,484   61%   530,432   95%
mortgage
Real estate                                                         
construction:
Residential             46,122      1%    43,073      1%    3,049     1%
Commercial              92,934      3%    83,634      3%    9,300     2%
Total real estate       139,056     4%    126,707     4%    12,349    3%
construction
                                                                   
Total real estate loans 2,465,972   70%   1,923,191   65%   542,781   98%
                                                                   
Commercial:                                                         
Collateralized          444,207     13%   432,652     14%   11,555    2%
Unsecured               78,964      2%    78,428      3%    536       --
Asset-based            258,264     7%    258,264     8%    --        --
SBA 7(a)               25,075      1%    25,075      1%    --        --
Total commercial        806,510     23%   794,419     26%   12,091    2%
Leases                 204,766     6%    204,766     7%    --        --
Consumer               19,221      1%    18,677      1%    544       --
Foreign                 17,268      --   17,268      1%    --        --
Total gross loans and   $3,513,737 100%  2,958,321   100%  555,416   100%
leases
Less:                                                               
Unearned income                         (1,424)          --        
Discount                                 --               (43,050)  
Allowance for loan and                   (65,216)         (29,303)  
lease losses
Total net loans and                      $2,891,681      $483,063 
leases

                                                                    
                                                                    
PACWEST BANCORP AND SUBSIDIARIES                                     
NON-COVERED LOAN CONCENTRATION                                      
REAL ESTATE MORTGAGE LOANS                                           
(Unaudited)                                                          
                                                                    
                                      March 31, 2013      December 31, 2012
                                                  % of              % of
Loan Category                          Amount       Total  Amount       Total
                                      (Dollars in thousands)
Commercial real estate mortgage:                                     
Industrial/warehouse                   $286,911   16.0%  $315,096   16.4%
Retail                                 228,665     12.7%  271,412     14.2%
Office buildings                       290,399     16.2%  304,096     15.9%
Owner-occupied                         179,827     10.0%  195,170     10.2%
Hotel                                 172,472     9.6%   181,144     9.4%
Healthcare                             108,693     6.1%   102,816     5.4%
Mixed use                              50,243      2.8%   51,294      2.7%
Gas station                            28,558      1.6%   29,632      1.5%
Self storage                           32,662      1.8%   29,688      1.5%
Restaurant                             16,480      0.9%   16,755      0.9%
Land acquisition/development           21,851      1.2%   21,922      1.1%
Unimproved land                        11,778      0.7%   13,173      0.7%
Other                                  165,809     9.2%   172,273     9.0%
Total commercial real estate mortgage  1,594,348   88.8%  1,704,471   88.9%
                                                                    
Residential real estate mortgage:                                    
Multi-family                           100,666     5.6%   103,742     5.4%
Single family owner-occupied           40,014      2.2%   46,125      2.4%
Single family nonowner-occupied        11,896      0.6%   12,789      0.7%
HELOCs                                 49,560      2.8%   50,543      2.6%
Total residential real estate mortgage 202,136     11.2%  213,199     11.1%
                                                                    
Total gross non-covered real estate    $1,796,484 100.0% $1,917,670 100.0%
mortgage loans

                                                                    
                                                                    
PACWEST BANCORP AND SUBSIDIARIES                                     
COVERED LOAN CONCENTRATION                                          
REAL ESTATE MORTGAGE LOANS                                           
(Unaudited)                                                          
                                                                    
                                          March 31, 2013    December 31, 2012
                                                    % of            % of
Loan Category                              Amount     Total  Amount     Total
                                          (Dollars in thousands)
Commercial real estate mortgage:                                     
Industrial/warehouse                       $25,861  4.9%   $26,205  4.7%
Retail                                     93,201    17.6%  96,659    17.4%
Office buildings                           46,859    8.8%   53,674    9.7%
Owner-occupied                             17,232    3.3%   17,301    3.1%
Hotel                                     1,204     0.2%   2,888     0.5%
Healthcare                                 8,039     1.5%   8,568     1.5%
Mixed use                                  2,907     0.5%   2,919     0.5%
Gas station                                5,121     1.0%   5,131     0.9%
Self storage                               49,895    9.4%   48,937    8.8%
Restaurant                                 1,640     0.3%   1,686     0.3%
Unimproved land                            469       0.1%   493       0.1%
Other                                      14,542    2.7%   14,141    2.6%
Total commercial real estate mortgage      266,970   50.3%  278,602   50.1%
                                                                    
Residential real estate mortgage:                                    
Multi-family                               158,997   30.0%  169,601   30.6%
Single family owner-occupied               76,636    14.4%  78,960    14.2%
Single family nonowner-occupied            20,068    3.8%   20,309    3.7%
Mixed use                                  2,460     0.5%   2,474     0.4%
HELOCs                                     5,301     1.0%   5,275     1.0%
Total residential real estate mortgage     263,462   49.7%  276,619   49.9%
                                                                    
Total gross covered real estate mortgage   $530,432 100.0% $555,221 100.0%
loans



PACWEST BANCORP AND SUBSIDIARIES
NON-COVERED LOAN CONCENTRATION TREND
(Unaudited)
                                                             
             March 31,    December 31, September    June 30,     March 31,
                                        30,
             2013         2012         2012         2012         2012
             (In thousands)
Real estate   $1,796,484 $1,917,670 $1,928,890 $1,828,777 $1,896,052
mortgage
Real estate   126,707     129,959     152,748     129,107     118,304
construction
Commercial   794,419     787,775     772,768     701,044     665,441
Leases       204,766     174,373     161,934     153,793     153,845
Consumer     18,677      22,487      20,615      17,151      15,826
Foreign:                                                      
Commercial   15,712      15,567      14,679      15,507      16,747
Other,
including     1,556       1,674       1,447       1,510       2,005
real estate
Total gross
non-covered   $2,958,321 $3,049,505 $3,053,081 $2,846,889 $2,868,220
loans and
leases



PACWEST BANCORP AND SUBSIDIARIES
COVERED LOAN CONCENTRATION TREND
(Unaudited)
                                                               
                  March 31,  December 31, September 30, June 30,   March 31,
                  2013       2012         2012          2012       2012
                  (In thousands)
Real estate        $530,432 $555,221   $606,424    $650,997 $699,653
mortgage
Real estate        12,349    23,220      26,595       32,125    41,191
construction
Commercial        12,091    15,243      16,900       18,954    20,889
Consumer          544       594         618          659       686
Total gross        555,416   594,278     650,537      702,735   762,419
covered loans
Less: discount     (43,050)  (50,951)    (52,437)     (62,323)  (66,312)
Less: allowance    (29,303)  (26,069)    (30,704)     (31,463)  (35,810)
for loan losses
Total covered      $483,063 $517,258   $567,396    $608,949 $660,297
loans, net



PACWEST BANCORP AND SUBSIDIARIES
NON-COVERED NONCLASSIFIED AND CLASSIFIED LOANS AND LEASES
(Unaudited)
                                                            
                              March 31, 2013
                              Nonclassified     Classified    Total
                              (In thousands)
Real estate mortgage:                                        
Hospitality                    $158,812        $13,660     $172,472
SBA 504                        49,678           5,725        55,403
Other                          1,516,137        52,472       1,568,609
Total real estate mortgage     1,724,627        71,857       1,796,484
Real estate construction:                                    
Residential                    41,055           2,018        43,073
Commercial                     79,852           3,782        83,634
Total real estate construction 120,907          5,800        126,707
Commercial:                                                  
Collateralized                 418,425          14,227       432,652
Unsecured                      75,880           2,548        78,428
Asset-based                   254,633          3,631        258,264
SBA 7(a)                      19,048           6,027        25,075
Total commercial               767,986          26,433       794,419
Leases                         204,522          244          204,766
Consumer                      17,810           867          18,677
Foreign                        17,268           --           17,268
Total non-covered loans and    $2,853,120      $105,201    $2,958,321
leases
                                                            
                                                            
                              December 31, 2012
                              Nonclassified     Classified    Total
                              (In thousands)
Real estate mortgage:                                        
Hospitality                    $168,489        $12,655     $181,144
SBA 504                        48,372           5,786        54,158
Other                          1,633,448        48,920       1,682,368
Total real estate mortgage     1,850,309        67,361       1,917,670
Real estate construction:                                    
Residential                    46,591           2,038        48,629
Commercial                     77,503           3,827        81,330
Total real estate construction 124,094          5,865        129,959
Commercial:                                                  
Collateralized                 440,187          12,989       453,176
Unsecured                      66,947           2,897        69,844
Asset-based                   235,075          4,355        239,430
SBA 7(a)                      18,888           6,437        25,325
Total commercial               761,097          26,678       787,775
Leases                         174,129          244          174,373
Consumer                      21,616           871          22,487
Foreign                        17,241           --           17,241
Total non-covered loans and    $2,948,486      $101,019    $3,049,505
leases
                                                            
Note: Nonclassified loans and leases are those with a credit risk rating of
either pass or special mention, whileclassified loans and leases are those
with a credit risk rating of either substandard or doubtful.
                                                            


PACWEST BANCORP AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES ROLLFORWARD
AND NET CHARGE-OFF RATIOS FOR
NON-COVERED LOANS AND LEASES (1)
(Unaudited)
                                                                  
                                             Three Months Ended
                                             March 31, December 31, March 31,
                                             2013      2012         2012
                                             (Dollars in thousands)
                                                                  
Allowance for credit losses, beginning of     $72,119 $75,012    $93,783
period
Loans and leases charged-off:                                      
Real estate mortgage                         (322)    (1,789)     (2,190)
Commercial                                    (708)    (1,865)     (871)
Leases                                        (114)    (28)        --
Consumer                                     (9)      (32)        (199)
Total loans and leases charged off           (1,153)  (3,714)     (3,260)
Recoveries on loans charged-off:                                   
Real estate mortgage                         177      381         329
Real estate construction                     323      14          10
Commercial                                    407      368         824
Consumer                                     23       58          31
Foreign                                      --       --          20
Total recoveries on loans charged off        930      821         1,214
Net charge-offs                               (223)    (2,893)     (2,046)
Provision (negative provision) forcredit     --       --          (10,000)
losses
Allowance for credit losses, end of period   $71,896 $72,119    $81,737
                                                                  
Annualized net charge-offs to averageloans   0.03%     0.38%        0.29%
and leases
                                                                  
(1) Applies only to non-covered loans and leases.



PACWEST BANCORP AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING
ASSETS AND CREDIT QUALITY RATIOS FOR
NON-COVERED LOANS AND LEASES
(Unaudited)
                                                       March 31, December 31,
                                                       2013      2012
                                                       (Dollars in thousands)
Allowance for loan and lease losses (1)                 $65,216 $65,899
Reserve for unfunded loan commitments (1)               6,680    6,220
Total allowance for credit losses                       $71,896 $72,119
                                                                
Nonaccrual loans and leases (2)                        $41,893 $39,284
Other real estate owned (2)                             35,961   33,572
Total nonperforming assets                              $77,854 $72,856
                                                                
Performing restructured loans (1)                       $80,501 $106,288
                                                                
Allowance for credit losses to loans and leases, net of 2.43%     2.37%
unearned income
Allowance for credit losses to nonaccrual loansand     171.6%    183.6%
leases
Nonperforming assets to loans and leases, net           2.60%     2.37%
ofunearned income, and other real estate owned
Nonperforming assets to total assets                    1.47%     1.33%
Nonaccrual loans and leases to loans and leases,net of 1.42%     1.29%
unearned income
                                                                
(1) Applies only to non-covered loans and leases.
(2) Excludes covered nonperforming assets.



PACWEST BANCORP AND SUBSIDIARIES
DEPOSITS
(Unaudited)
                                                                
                                                    March 31,    December 31,
Deposit Category                                     2013         2012
                                                    (Dollars in thousands)
Noninterest-bearing demand deposits                 $1,941,234 $1,939,212
Interest checking deposits                           512,645     513,389
Money market deposits                                1,184,987   1,282,513
Savings deposits                                     157,572     153,680
Total core deposits                                  3,796,438   3,888,794
Time deposits under $100,000                         252,605     274,622
Time deposits of $100,000 and over                   504,187     545,705
Total time deposits                                  756,792     820,327
Total deposits                                      $4,553,230 $4,709,121
                                                                
Noninterest-bearing demand deposits as a percentage  43%          41%
of total deposits
Core deposits as a percentage of total deposits      83%          83%



PACWEST BANCORP AND SUBSIDIARIES
TIME DEPOSITS
(Unaudited)
                                       March 31, 2013
                                       Time      Time                
                                       Deposits   Deposits   Total      
                                       Under     $100,000   Time       
Maturity                                $100,000   or More    Deposits   Rate
                                       (Dollars in thousands)
Due in three months or less             $90,542  $184,361 $274,903 1.26%
Due in over three months through six    46,877    107,703   154,580   0.83%
months
Due in over six months through twelve   62,221    115,282   177,503   0.78%
months
Due in over 12 months through 24 months 32,946    52,540    85,486    0.74%
Due in over 24 months                   20,019    44,301    64,320    0.98%
Total                                  $252,605 $504,187 $756,792 0.98%



PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATIONS
(Unaudited)
                                                                  
                                             Three Months Ended
                                             March 31, December 31, March 31,
Adjusted Earnings Before Income Taxes         2013      2012         2012
                                             (In thousands)
Earnings before income taxes                  $21,213 $32,468    $8,121
Plus: Provision (negative provision) for      3,137    (4,333)     (6,074)
credit losses
 Non-covered OREO expense, net               313      316         1,821
 Covered OREO (income) expense, net         (813)    (461)       822
 Acquisition and integration costs           692      1,092       25
 Debt termination expense                    --       --          22,598
Less: FDIC loss sharing income(expense), net (3,137)  (6,022)     (3,579)
 Gain on sale of securities                  409      1,239       --
 Adjusted earnings beforeincome taxes       $27,270 $33,865    $30,892
                                                                  
                                                                  
                                             Three Months Ended
                                             March 31, December 31, March 31,
Adjusted Efficiency Ratio                     2013      2012         2012
                                             (Dollars in thousands)
Noninterest expense                           $44,183 $43,525    $68,895
Less: Non-covered OREO expense, net           313      316         1,821
 Covered OREO (income) expense, net         (813)    (461)       822
 Acquisition and integration costs           692      1,092       25
 Debt termination expense                    --       --          22,598
 Adjusted noninterest expense               $43,991 $42,578    $43,629
                                                                  
Net interest income                           $65,693 $69,603    $67,680
Noninterest income                            2,840    2,057       3,262
Net revenues                                  68,533   71,660      70,942
Less: FDIC loss sharing income(expense), net (3,137)  (6,022)     (3,579)
 Gain on sale of securities                  409      1,239       --
 Adjusted net revenues                      $71,261 $76,443    $74,521
                                                                  
Base efficiency ratio (1)                     64.5%     60.7%        97.1%
Adjusted efficiency ratio (2)                 61.7%     55.7%        58.5%
                                                                  
(1)Noninterest expense divided by net revenues.
(2)Adjusted noninterest expense divided by adjusted net revenues.



PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATIONS
(Unaudited)
                                                               
                                         Three Months Ended
                                         March 31,  December 31, March 31,
Return on Average Tangible Equity         2013       2012         2012
                                         (Dollars in thousands)
PacWest Bancorp Consolidated:                                   
Net earnings                              $13,494  $19,892    $5,264
                                                               
Average stockholders' equity              $589,207 $585,525   $552,786
Less: Average intangible assets           93,786    94,604      73,983
 Average tangible common equity          $495,421 $490,921   $478,803
                                                               
 Annualized return on averageequity (1) 9.29%      13.51%       3.83%
 Annualized return on averagetangible   11.05%     16.12%       4.42%
equity (2)
                                                               
(1) Calculated as annualized net earnings divided by average stockholders'
equity.
(2) Calculated as annualized net earnings divided by average tangible common
equity.
                                                               
                                                               
                                                   March 31,    December 31,
Tangible Common Equity                              2013         2012
                                                   (Dollars in thousands)
PacWest Bancorp Consolidated:                                   
Stockholders' equity                                $589,796   $589,121
Less: Intangible assets                             93,220      94,589
 Tangible common equity                            $496,576   $494,532
                                                               
Total assets                                        $5,299,905 $5,463,658
Less: Intangible assets                             93,220      94,589
 Tangible assets                                   $5,206,685 $5,369,069
                                                               
 Equity to assets ratio                            11.13%       10.78%
 Tangible common equity ratio (1)                  9.54%        9.21%
                                                               
Book value per share                                $15.91     $15.74
Tangible book value per share (2)                   $13.40     $13.22
Shares outstanding                                  37,071,357  37,420,909
                                                               
Pacific Western Bank:                                           
Stockholders' equity                                $650,258   $649,656
Less: Intangible assets                             93,220      94,589
 Tangible common equity                            $557,038   $555,067
                                                               
Total assets                                        $5,278,470 $5,443,484
Less: Intangible assets                             93,220      94,589
 Tangible assets                                   $5,185,250 $5,348,895
                                                               
 Equity to assets ratio                            12.32%       11.93%
 Tangible common equity ratio (1)                  10.74%       10.38%
                                                               
(1) Calculated as tangible common equity divided by tangible assets.
(2) Calculated as tangible common equity divided by shares outstanding.



PACWEST BANCORP AND SUBSIDIARIES
EARNINGS PER SHARE CALCULATIONS
(Unaudited)
                                                              
                                Three Months Ended
                                March 31,      December 31,     March 31,
                                2013           2012             2012
                                (In thousands, except per share data)
Basic Earnings Per Share:                                      
Net earnings                    $13,494      $19,892        $5,264
Less: earnings allocated to      (326)         (678)           (122)
unvestedrestricted stock (1)
Net earnings allocated tocommon $13,168      $19,214        $5,142
shares
                                                              
Weighted-average basic shares
andunvested restricted stock    37,391.1      37,420.3        37,284.0
outstanding
Less: weighted-average
unvestedrestricted stock        (1,594.1)     (1,704.8)       (1,654.0)
outstanding
Weighted-average basic shares    35,797.0      35,715.5        35,630.0
outstanding
                                                              
Basic earnings per share         $0.37        $0.54          $0.14
                                                              
Diluted Earnings Per Share:                                    
Net earnings allocated tocommon $13,168      $19,214        $5,142
shares
Weighted-average basic           35,797.0      35,715.5        35,630.0
sharesoutstanding
                                                              
Diluted earnings per share       $0.37        $0.54          $0.14
                                                              
(1) Represents cash dividends paid to holders of unvested restricted stock,
net of estimatedforfeitures, plus undistributed earnings amounts available to
holders of unvested restrictedstock, if any.

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