PacWest Bancorp(PACW) - 2021 Q2 - Quarterly Report

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].