PacWest Bancorp(PACW) - 2021 Q3 - Quarterly Report

Financial Performance - Net earnings for the three months ended September 30, 2021, were $139.99 million, compared to a loss of $1.35 billion in the same period of 2020[14]. - Net earnings for the nine months ended September 30, 2021, were $150.406 million, compared to a net loss of $1,433.111 million for the same period in 2020[22]. - Comprehensive income for the three months ended September 30, 2021, was $93.34 million, compared to a loss of $1.28 billion in the same period of 2020[14]. - Total revenue for the nine months ended September 30, 2021, reached $980,469,000, compared to $937,525,000 in 2020, indicating an increase of 4.6%[166]. - Total net earnings for the three months ended September 30, 2021, were $139,996,000, compared to $45,503,000 for the same period in 2020, representing a significant increase[159]. Asset and Liability Growth - Total assets increased to $35.89 billion as of September 30, 2021, up from $29.50 billion at the end of 2020, representing a growth of approximately 21%[11]. - Total liabilities increased to $31.97 billion as of September 30, 2021, up from $25.90 billion at the end of 2020, representing a growth of approximately 23.5%[11]. - Total deposits rose to $30.56 billion as of September 30, 2021, up from $24.94 billion at the end of 2020, marking an increase of approximately 22.6%[11]. - Stockholders' equity increased to $3.9 billion from $3.6 billion at year-end 2020, driven by $470.9 million in net earnings[196]. Income and Revenue Sources - Net interest income for the three months ended September 30, 2021, was $275.84 million, an increase from $251.32 million in the same period of 2020, reflecting a growth of about 9.8%[13]. - Total interest income for the three months ended September 30, 2021, was $290,082,000, an increase from $265,908,000 in the same period of 2020, representing a growth of 9.4%[163]. - Total noninterest income for the three months ended September 30, 2021, was $51,345,000, up from $38,252,000 in 2020, reflecting a growth of 34.2%[163]. Credit Quality and Loan Performance - Provision for credit losses decreased to $20 million in Q3 2021, compared to $97 million in Q3 2020, indicating improved credit quality[13]. - The allowance for loan and lease losses decreased to $203.73 million as of September 30, 2021, down from $348.18 million at the end of 2020, indicating a reduction in risk[11]. - Nonaccrual loans and leases totaled $64,507 thousand as of September 30, 2021, compared to $91,163 thousand at December 31, 2020, reflecting a reduction of 29.3%[62]. - The total amount of loans classified as "Classified" (6-8 rating) was $19.92 million, indicating a stable performance compared to prior periods[73]. Investment and Securities - The total fair value of securities available-for-sale as of September 30, 2021, was $9,276.9 million, an increase from $5,235.6 million as of December 31, 2020[48]. - The total amortized cost of securities available-for-sale as of September 30, 2021, was $9,140.3 million[54]. - The company reported a taxable interest income of $31.98 million for the three months ended September 30, 2021, compared to $17.84 million for the same period in 2020[55]. Acquisitions and Growth Strategies - The company completed the acquisition of the Homeowners Association Services Division from MUFG Union Bank for approximately $255 million, which includes a 5.9% deposit premium and the net book value of certain acquired assets[181]. - The acquisition added approximately $4.1 billion in deposits and $6.4 million in related loans, significantly expanding the Bank's HOA banking practice[182]. - The acquisition of Civic, completed on February 1, 2021, added $1.0 billion in loans outstanding to the Bank's portfolio[200]. Risk Management and Provisions - A provision for credit losses benefit of $20.0 million was recorded in Q3 2021, compared to $88.0 million in Q2 2021[206]. - The company has implemented loan modifications to assist borrowers affected by COVID-19, in compliance with the CARES Act, which has influenced TDR classifications[88]. - The company reported a net charge-off of $59,909,000 in the current year-to-date period for consumer loans, highlighting challenges in this segment[84]. Operational Metrics - The company reported net cash provided by operating activities of $392,311,000, up from $342,937,000 year-over-year[25]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $538,537,000, compared to $2,315,572,000 in the previous year[25]. - The company’s total loans and leases ending balance as of September 30, 2021, was $20,511,020,000, reflecting a stable loan portfolio amidst economic recovery[94].