PacWest Bancorp(PACW) - 2021 Q1 - Quarterly Report

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].