QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Commission File No. 001-36408 PACWEST BANCORP (Exact name of registrant as specified in its charter) Delaware 33-0885320 (State of Incorporation) (I.R.S. Employer Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Indicate by check mark ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☑ or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the quarterly period ended March 31, 2022 Commission File No. 001-36408 PACWEST BANCORP (Exact name of registrant as specified in its charter) Delaware 33-0885320 (State of Incorporation) (I.R.S. Employer Identification No.) 9701 Wilshire Blv ...

Financial Performance - The Bank had a cumulative net loss of $155.3 million during the three fiscal years of 2021, 2020, and 2019, primarily due to a $1.47 billion goodwill impairment in Q1 2020 [108]. - The Bank's retained deficit was $1.5 billion as of December 31, 2021, which will require DFPI and FDIC approval for any further cash dividends to the Company [108]. - For the year ended December 31, 2021, the Company incurred $12.0 million in FDIC assessment expense [119]. Capital Requirements - The Company is subject to the Basel III capital framework, which mandates increased capital levels and introduces a new capital measure called CET1 [110]. - Under Basel III, the Company must maintain a CET1 capital ratio to risk-weighted assets, with most deductions made to CET1 [110]. - The Company has a minimum CET1 capital ratio of 4.5% to risk-weighted assets, with a capital conservation buffer of 2.5%, resulting in a required CET1 ratio of at least 7% [112]. - The capital conservation buffer is designed to absorb losses during economic stress, impacting dividend distributions if capital ratios fall below required levels [112]. - The Company is required to maintain a leverage ratio of at least 4% of Tier 1 capital to average consolidated assets [111]. - As of December 31, 2021, the carrying amount of subordinated debt totaled $863.3 million, with $131.0 million included in Tier 1 capital and $718.2 million in Tier 2 capital [115]. Dividend Restrictions - The ability to pay dividends is restricted by various factors, including covenants in subordinated debt agreements and regulatory authority [103]. - The Dodd-Frank Act requires the Company to act as a source of financial strength to the Bank, even in adverse financial conditions [96]. - The Company must obtain prior approval from the FRB before acquiring more than 5% of the voting shares of any bank [97]. - The Bank may declare dividends without DFPI and FDIC approval as long as total dividends do not exceed retained earnings or net earnings for the previous three fiscal years [108]. - The Company is required to notify the FRB prior to declaring dividends if net earnings are insufficient to fund the dividend amount [106]. Regulatory Compliance - The Dodd-Frank Act and its implementing regulations impose stringent regulatory requirements on financial institutions based on their size and scope of activities [100]. - The Company must comply with various consumer protection laws, which can result in significant liabilities if violated [126]. - The USA PATRIOT Act requires the Company to implement anti-money laundering policies, with serious consequences for non-compliance [130]. - The Gramm-Leach-Bliley Act mandates the Company to implement privacy policies regarding the disclosure of non-public personal information [137]. Security and Privacy Regulations - Federal regulators issued statements emphasizing the need for financial institutions to implement multiple layers of security controls to protect against compromised customer credentials [138]. - A joint rule established by federal bank regulatory agencies requires banking organizations to notify incidents of computer-security breaches, effective from April 1, 2022 [139]. - Several states, including California and Colorado, have enacted comprehensive data privacy legislation, enhancing consumer rights and imposing significant requirements on financial institutions [140]. - The California Consumer Privacy Act (CCPA) took effect on January 1, 2020, followed by the California Privacy Rights Act (CPRA) effective January 1, 2023, which grants consumers enhanced control over personal information [140]. - Colorado's Privacy Act, modeled after the CCPA, is set to take effect on July 1, 2023, marking a continued trend in state-level privacy legislation [140]. Regulatory Oversight - The Bank received a CRA rating of "Outstanding" as of its most recent examination, which is crucial for undertaking certain activities, including acquisitions [133]. - The Company continues to prepare annual stress tests of its capital and earnings under adverse conditions, which are evaluated by the FRB and FDIC [116]. - The SEC has recommended enhancements to its examination authority over investment advisers, which may impact PWAM, though the specific effects are currently uncertain [141].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☑ or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the quarterly period ended September 30, 2021 Commission File No. 001-36408 PACWEST BANCORP (Exact name of registrant as specified in its charter) Delaware 33-0885320 (State of Incorporation) (I.R.S. Employer Identification No.) 9701 Wilshire ...

Financial Performance - Net earnings for the three months ended June 30, 2021, were $180.51 million, compared to a loss of $(1.40) billion for the same period in 2020[14]. - Net earnings for the six months ended June 30, 2021, were $330,918,000, a significant improvement compared to a net loss of $1,399,907,000 for the same period in 2020[25]. - Comprehensive income for the three months ended June 30, 2021, was $219.65 million, compared to a loss of $(1.33) billion for the same period in 2020[14]. - Basic earnings per share for the three months ended June 30, 2021, was $1.52, up from $0.28 in the same period of 2020[165]. - Total revenue for the three months ended June 30, 2021, reached $320,876,000, up from $312,933,000 in 2020, marking a year-over-year increase of 2.9%[169]. Asset and Liability Growth - Total assets increased to $34.87 billion as of June 30, 2021, up from $29.50 billion at December 31, 2020, representing a growth of 18.06%[11]. - Total liabilities increased to $31.02 billion as of June 30, 2021, from $25.90 billion at December 31, 2020, reflecting a growth of 19.00%[11]. - Total deposits rose to $29.65 billion as of June 30, 2021, up from $24.94 billion at December 31, 2020, marking an increase of 18.00%[11]. - Stockholders' equity increased to $3.8 billion, up from $3.6 billion at year-end, primarily due to $330.9 million in net earnings[195]. Credit Quality and Loss Provisions - Provision for credit losses was $(88.00) million for the three months ended June 30, 2021, compared to $120.00 million for the same period in 2020, indicating a significant improvement in credit quality[13]. - The allowance for loan and lease losses decreased to $225.60 million as of June 30, 2021, down from $348.18 million at December 31, 2020, indicating improved asset quality[11]. - The provision for loan and lease losses for the three months ended June 30, 2021, was $72.0 million, compared to a provision of $125.0 million for the six months ended June 30, 2021[100]. - The company reported a total of 28 troubled debt restructurings (TDRs) with an outstanding recorded investment of $18,974,000 for the three months ended June 30, 2021[93]. Loan Portfolio and Performance - Total loans and leases held for investment amounted to $19,280,657, an increase from $18,735,196 as of December 31, 2020, representing a growth of 2.9%[63]. - The total gross loans and leases held for investment rose to $19,580,731 as of June 30, 2021, compared to $19,153,357 as of December 31, 2020, an increase of 2.2%[63]. - Nonaccrual loans and leases totaled $56,803 as of June 30, 2021, compared to $91,163 as of December 31, 2020, reflecting a decline of 37.5%[67]. - The total past due loans (30-89 days and 90 or more days) amounted to $40,804 as of June 30, 2021, down from $48,755 as of December 31, 2020, a decrease of 16.3%[64]. Acquisitions and Strategic Initiatives - On February 1, 2021, the company acquired Civic Financial Services for a total consideration of $160,420,000, with total assets acquired valued at $307,997,000 and liabilities assumed at $147,577,000[44]. - The company announced the acquisition of Union Bank's Homeowners Association Services Division for approximately $250 million, which is expected to close in Q4 2021[48]. - The Civic acquisition included $125,448,000 in goodwill, which is expected to be fully deductible for tax purposes[45]. Interest Income and Revenue Sources - Net interest income for the three months ended June 30, 2021, was $266.31 million, compared to $254.28 million for the same period in 2020, reflecting an increase of 4.03%[13]. - Total interest income for the three months ended June 30, 2021, was $280,505,000, an increase from $274,075,000 in the same period of 2020[169]. - Total noninterest income for the three months ended June 30, 2021, was $40,371,000, compared to $38,858,000 in 2020, reflecting a growth of 3.9%[169]. Cash Flow and Dividends - The company reported a net cash provided by operating activities of $230,605,000 for the first half of 2021, down from $274,022,000 in 2020[25]. - Cash dividends paid in the first half of 2021 amounted to $59,503,000, a decrease from $100,711,000 in the same period of 2020[25]. - The company declared a quarterly cash dividend of $0.25 per common share on August 2, 2021, payable on August 31, 2021[184]. Risk Management and Economic Conditions - The company continues to monitor the impact of COVID-19, with 29 loans totaling $48.4 million on deferral as of June 30, 2021[200]. - The company actively purchases multi-family loans and private student loans to diversify its loan portfolio and manage risk[208]. - Credit quality is measured by classified loans, nonaccrual loans, and net charge-offs, with an allowance for credit losses maintained[209].

Financial Performance - Net earnings for the three months ended March 31, 2021, were $150,406 thousand, compared to a net loss of $(1,433,111) thousand in the same period of 2020[13]. - Basic earnings per share for the first quarter of 2021 were $1.27, compared to a loss per share of $(12.23) in the same period of 2020[13]. - Comprehensive income for the three months ended March 31, 2021, was $84,264 thousand, compared to a comprehensive loss of $(1,420,853) thousand in the same period of 2020[14]. - Adjusted net earnings for Q1 2021 were $150,406 thousand, compared to $116,830 thousand in Q4 2020 and $36,889 thousand in Q1 2020[209]. - The return on average tangible equity for Q1 2021 was 25.67%, up from 19.63% in Q4 2020, and significantly improved from a negative 116.28% in Q1 2020[204]. Asset and Liability Management - Total assets increased to $32,856,533 thousand as of March 31, 2021, up from $29,498,442 thousand at December 31, 2020, representing an increase of 8.0%[11]. - Total liabilities increased to $29.2 billion, up from $25.9 billion at December 31, 2020, primarily due to a $3.3 billion increase in core deposits[182]. - The total balance of stockholders' equity increased to $3,654,137 thousand as of March 31, 2021, from $3,594,951 thousand at the end of 2020[18]. - The equity to assets ratio decreased to 11.12% as of March 31, 2021, from 12.19% as of December 31, 2020[206]. Loan and Lease Performance - Total loans and leases held for investment as of March 31, 2021, were $18,686,783,000, a slight decrease from $18,735,196,000 as of December 31, 2020[54]. - The total amount of loans classified as 'Special mention' was $254,463,000, indicating potential credit quality concerns[67]. - The company reported a total of $1,400,405,000 in loans rated as 'Classified' as of March 31, 2021, reflecting a need for closer monitoring[67]. - The total amount of loans classified as special mention was $262,462,000 across various categories[74]. Credit Quality and Loss Provisions - Provision for credit losses was $(48,000) thousand for the first quarter of 2021, a significant improvement compared to $112,000 thousand in the same quarter of 2020[13]. - The allowance for loan and lease losses decreased to $(292,445) thousand as of March 31, 2021, down from $(348,181) thousand at December 31, 2020, reflecting improved asset quality[11]. - The net charge-offs for loans and leases in Q1 2021 were $2,736,000, with total charge-offs of $3,988,000 and recoveries of $1,252,000[96]. - The company reported a decrease in nonaccrual loans from $91.2 million at December 31, 2020, to $67.7 million at March 31, 2021[60]. Income and Revenue - Total revenue for the three months ended March 31, 2021, was $318,166 thousand, slightly down from $320,432 thousand in Q1 2020[155]. - Total interest income for Q1 2021 was $273,337 thousand, compared to $291,332 thousand in Q1 2020[155]. - Noninterest income for Q1 2021 was $44,829 thousand, an increase from $29,100 thousand in Q1 2020[155]. - Net interest income for the three months ended March 31, 2021, was $261,269 thousand, compared to $249,747 thousand for the same period in 2020, reflecting a year-over-year increase of 4.6%[13]. Acquisitions and Investments - The company acquired Civic on February 1, 2021, with a fair value of assets acquired amounting to $308,019 thousand, and cash paid of $159,237 thousand[23]. - The acquisition of Civic resulted in the recognition of $125.4 million in goodwill, fully deductible for tax purposes[185]. - The company announced an agreement to acquire Union Bank's Homeowners Association Services Division for approximately $250 million, with a 5.9% premium on deposits[185]. Market and Economic Conditions - The company anticipates potential risks from the COVID-19 pandemic affecting its business, financial position, and loan growth[176]. - The company has provided various loan modifications to assist borrowers affected by COVID-19, in compliance with the CARES Act[82]. - The company aims to enhance its technology infrastructure to improve client-facing systems and applications[176]. Regulatory and Compliance - The company is in the process of adopting ASU 2020-04 and ASU 2021-01 related to the transition away from LIBOR, which is not expected to have a material impact on financial statements[166]. - The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Form 10-K[34].

Credit Losses and Provisions - The total allowance for credit losses as of December 31, 2020, was $433,752,000, compared to $174,646,000 in 2019, reflecting a significant increase [358]. - The allowance for loan and lease losses was $348,181,000 in 2020, up from $138,785,000 in 2019, indicating a rise of 151% [358]. - The reserve for unfunded loan commitments increased to $85,571,000 in 2020 from $35,861,000 in 2019, representing a growth of 138% [358]. - The allowance for credit losses to loans and leases held for investment ratio was 2.27% as of December 31, 2020, compared to 0.93% in 2019 [358]. - The allowance for credit losses to nonaccrual loans and leases held for investment was 475.8% in 2020, significantly higher than 189.1% in 2019 [358]. - Excluding PPP loans, the allowance for credit losses ratio as of December 31, 2020, would be 2.41% [359]. - The allowance for credit losses increased to $433.8 million as of December 31, 2020, from $174.6 million in 2019, reflecting a significant rise in provisions for credit losses [361]. - Total provision for credit losses for 2020 was $339 million, a substantial increase from $22 million in 2019 [361]. - Net charge-offs for 2020 were $87.2 million, compared to $16.7 million in 2019, indicating a deterioration in credit quality [361]. - Commercial real estate mortgage gross charge-offs rose to $10.2 million in 2020 from $0.9 million in 2019, largely due to pandemic-related impacts on retail properties [365]. - Asset-based gross charge-offs decreased slightly to $11.8 million in 2020 from $12 million in 2019, with a notable charge-off related to a single loan in the equipment finance subclass [366]. - Venture capital gross charge-offs decreased to $6.8 million in 2020 from $9.4 million in 2019, attributed to improved underwriting and credit administration [368]. - Other commercial gross charge-offs surged to $63.5 million in 2020 from $9.1 million in 2019, with $59.6 million related to five security monitoring loans [369]. - The net charge-offs to average loans and leases ratio was 0.45% for 2020, up from 0.09% in 2019, indicating increased credit risk [361]. - The balance of the allowance for credit losses at the beginning of 2020 was $174.6 million, reflecting a cumulative effect of $7.3 million from the CECL accounting standard [361]. - Total loans and leases charged off in 2020 amounted to $93.6 million, significantly higher than $32.3 million in 2019 [364]. - The total recoveries for the year ended December 31, 2020, were $6.368 million, a decrease of 59% from $15.575 million in 2019 [370]. Loans and Leases - The total loans and leases held for investment, net of deferred fees, amounted to $13,794,198,000 as of December 31, 2020 [348]. - The fixed-rate loans due after one year totaled $3,967,191,000, while variable-rate loans amounted to $9,827,007,000 [348]. - The total allowance for loan and lease losses across all segments was $348.2 million as of December 31, 2020 [371]. - The allowance for loan and lease losses for real estate mortgage loans increased to $138.3 million in 2020 from $44.6 million in 2019, representing a ratio of 1.75% to real estate mortgage loans [372]. - The allowance for loan and lease losses for real estate construction and land loans rose to $78.4 million in 2020 from $30.5 million in 2019, with a ratio of 2.33% [373]. - The allowance for loan and lease losses for commercial loans and leases increased to $126.4 million in 2020 from $61.5 million in 2019, with a ratio of 1.68% [374]. - Total loans and leases held for investment increased to $19.1 billion, up from $18.8 billion in 2019, with classified loans increasing by $89.4 million to $265.3 million [390][391]. - Special mention loans and leases rose by $398.3 million to $721.3 million, driven by significant increases in commercial real estate mortgage and asset-based loans [393]. Deposits and Liquidity - Total deposits increased by $5.7 billion, or 30%, to $24.9 billion at December 31, 2020, primarily due to a $6.1 billion increase in core deposits [376]. - Noninterest-bearing demand deposits reached $9.2 billion, accounting for 37% of total deposits as of December 31, 2020 [376]. - Interest checking deposits increased by $2.2 billion, while money market deposits rose by $1.8 billion during 2020 [376]. - The company’s top ten depositors represented 13.4% of total deposits, indicating a diversified deposit base [376]. - The increase in core deposits was significantly driven by capital market activities and PPP loan proceeds being deposited into customer accounts [376]. - As of December 31, 2020, total time deposits amounted to $1.53 billion, with $994.2 million due within 12 months [377]. - The Bank's primary liquidity increased by $4.0 billion to $7.9 billion, primarily due to a $2.5 billion increase in interest-earning deposits and a $1.4 billion increase in securities available-for-sale [406]. - Core deposits totaled $22.3 billion at December 31, 2020, representing 89% of the Company's total deposits, indicating a stable funding source [408]. - Brokered deposits amounted to $1.3 billion at December 31, 2020, down from $1.7 billion in 2019, indicating a reduction in reliance on brokered funding [410]. - The Company had contractual obligations totaling $2.44 billion as of December 31, 2020, with time deposits accounting for $1.53 billion of this total [417]. - Loan commitments and standby letters of credit were $7.6 billion and $337.3 million, respectively, as of December 31, 2020, contributing to potential future profitability [421]. - The Bank maintained compliance with all established liquidity guidelines as of December 31, 2020, ensuring adequate liquidity levels [411]. Capital and Borrowings - The capital ratios as of December 31, 2020, included a Tier 1 capital ratio of 8.55%, CET1 capital ratio of 10.53%, and total capital ratio of 13.76%, all exceeding minimum required levels [398]. - The Company and Bank were in compliance with the capital conservation buffer requirements, maintaining a minimum common equity Tier 1 risk-based capital ratio of 7.00% [396]. - The carrying value of subordinated debentures totaled $465.8 million at December 31, 2020, with $451.8 million included in Tier II capital [400]. - The total gross subordinated debentures amounted to $543.3 million as of December 31, 2020, with a weighted average rate of 2.24% [381]. - The weighted average rate for net subordinated debentures was 4.58% for the year ended December 31, 2020 [381]. - Total borrowings as of December 31, 2020, were $5.0 million, significantly reduced from $1.76 billion in 2019 [380]. - The maximum borrowing capacity under the secured credit line with FHLB was $3.3 billion, with $3.295 billion available as of December 31, 2020 [379]. Nonperforming Assets - Nonperforming assets totaled $105.2 million as of December 31, 2020, an increase from $92.8 million in 2019 [382]. - Nonaccrual loans and leases held for investment decreased by $1.2 million to $91.2 million during 2020, primarily due to $88.3 million in charge-offs [384]. - Foreclosed assets increased by $13.6 million to $14.0 million at December 31, 2020, mainly due to the addition of a commercial real estate property valued at $12.6 million [387]. - Classified loans and leases held for investment increased to $265.3 million as of December 31, 2020, compared to $175.9 million in 2019 [382]. - Classified loans peaked at $293.2 million in Q2 2020, reflecting proactive downgrades due to the economic impact of the COVID-19 pandemic [391]. Management and Governance - The Executive Management Asset/Liability Management Committee is responsible for managing liquidity to meet financial commitments and customer demands [402]. - The Company maintains pools of liquid assets on-balance sheet, including cash and due from banks, to manage liquidity effectively [403]. - The Company is required to receive approval from the FRB prior to declaring dividends due to insufficient net earnings since the goodwill impairment charge in Q1 2020 [401]. - A new Stock Repurchase Program was authorized for up to $200 million, but no shares were repurchased under this program by December 31, 2020 [416].