# EDGAR Filing Document

**Accession Number:** 0001102112
**File Stem:** 0001104659-23-007033
**Filing Date:** 2023-1
**Character Count:** 96787
**Document Hash:** 2d9a45838acf56c27a9581b34ac7785d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-007033.hdr.sgml**: 20230126

**ACCESSION NUMBER**: 0001104659-23-007033

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 33

**CONFORMED PERIOD OF REPORT**: 20230126

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230126

**DATE AS OF CHANGE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PACWEST BANCORP
- **CENTRAL INDEX KEY:** 0001102112
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **IRS NUMBER:** 330885320
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36408
- **FILM NUMBER:** 23558140

**BUSINESS ADDRESS:**
- **STREET 1:** 130 S. STATE COLLEGE BLVD.
- **CITY:** BREA
- **STATE:** CA
- **ZIP:** 92821
- **BUSINESS PHONE:** (310) 887-8500

**MAIL ADDRESS:**
- **STREET 1:** 130 S. STATE COLLEGE BLVD.
- **CITY:** BREA
- **STATE:** CA
- **ZIP:** 92821

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FIRST COMMUNITY BANCORP /CA/
- **DATE OF NAME CHANGE:** 19991229

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest

event reported) **January 26, 2023**

**PacWest Bancorp**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-36408** | **33-0885320** |
| (State of | (Commission File Number) | (IRS Employer |
| Incorporation) |  | Identification No.) |

---

**9701 Wilshire Blvd., Suite 700, Beverly Hills, California 90212**

(Address of principal executive offices and zip code)

**(310) 887-8500**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

Securities registered pursuant to

Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Common Stock, par value $0.01 per share**<br>**Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series A** | **PACW**<br>**PACWP** | **The Nasdaq Stock Market, LLC**<br>**The Nasdaq Stock Market, LLC** |
| (Title of Each Class) | (Trading Symbol) | (Name of Exchange on Which Registered) |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2. below):

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**Item 2.02 Results of Operations and Financial Condition.\***

On January 26, 2023, PacWest Bancorp (the "Company") announced its results of operations and financial condition for the quarter and year ended December 31, 2022. The press release announcing the financial results for the quarter and year ended December 31, 2022 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation regarding the Company's financial results for the quarter and year ended December 31, 2022 is furnished as Exhibit 99.2 and incorporated herein by reference.

**Item 9.01 Financial Statements and Exhibits.\***

(d) Exhibits.

Exhibit

<u>Number</u> <u>Description</u>

---

| | |
|:---|:---|
| [99.1](tm234489d1_ex99-1.htm) | [Press release dated January 26, 2023 announcing PacWest's results of operations and financial condition for the quarter and year ended December 31, 2022.](tm234489d1_ex99-1.htm) |
| [99.2](tm234489d1_ex99-2.htm) | [Earnings Release Presentation](tm234489d1_ex99-2.htm) |
| 104 | Cover page interactive data file (embedded within the Inline XBRL document) |

---

\*The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of PacWest Bancorp under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| PacWest Bancorp | PacWest Bancorp |
| By: | /s/ Kevin L. Thompson |
| Name: | Kevin L. Thompson |
| Title: | Executive Vice President Chief Financial Officer |

---

Date: January 26, 2023

## Exhibit 99.1

**Exhibit 99.1**

---

| | |
|:---|:---|
| January 26, 2023 | ![](tm234489d1_ex99-1img001.jpg) |

---

**PACWEST BANCORP ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2022**

FOR IMMEDIATE RELEASE

**FOURTH QUARTER 2022 RESULTS**

---

| | | | |
|:---|:---|:---|:---|
| **$39.6M** | **$0.33** | **14.39%** | **8.70%** |
| Net Earnings Available to Common Stockholders | Diluted Earnings <br> per Common Share | ROATCE | CET1 |

---

**FOURTH QUARTER 2022 HIGHLIGHTS**

· Announced leadership transition with Paul Taylor as President and CEO and Kevin Thompson as CFO<br> · Strategically sold $1 billion of available-for-sale securities for a loss of $49 million to pay down FHLB borrowings and to improve the capital and liquidity position of the Bank<br> · Recorded goodwill impairment of $29 million related to Civic as part of a strategy to restructure this lending subsidiary<br> · Shut down Premium Finance and Multi-Family lending groups as part of a strategy to focus on relationship-based community banking, which will result in cost savings and improved capital<br> · Recorded early retirement benefits and severance expense of $5.7 million as a first step in operational efficiency initiative<br> · All risk-based capital ratios increased from 3Q22, with CET1 increasing from 8.56% to 8.70%<br> · Credit metrics remain steady with nonperforming assets ratio of 38 basis points<br>

**FULL YEAR 2022 RESULTS** 

---

| | | | |
|:---|:---|:---|:---|
| **$404.3M** | **$3.37** | **21.04%** | **51.0%** |
| Net Earnings Available to Common Stockholders | Diluted Earnings <br> per Common Share | ROATCE | Efficiency Ratio |

---

**FULL YEAR 2022 HIGHLIGHTS**

· Loan growth of $5.7 billion; up 24.7% from 2021

· Net interest income (TE) of $1.3 billion in 2022 vs. $1.1 billion in 2021; up 16.6%

· Strong earnings allowed us to return $140 million to our stockholders through dividends

**CEO COMMENTARY**

Paul Taylor, President and CEO, commented, "In the fourth quarter, we initiated a new strategic plan designed to maximize shareholder value by strengthening our community bank focus, exiting non-core products, and improving our operational efficiency. The first strategic step we took was to sell $1 billion of available-for-sale securities, resulting in a loss on sale of $49 million. The proceeds were used to pay down FHLB borrowings and to improve the capital and liquidity position of the Bank going forward. Secondly, we recorded goodwill impairment of $29 million related to Civic as part of a strategy to restructure this lending subsidiary. Goodwill is a non-cash charge and has no impact on our regulatory capital ratios, cash flows, or liquidity position. We believe these actions will result in an improvement in the profitability and risk profile of Civic going forward. Next, we are slowing loan growth to preserve capital and strengthen our balance sheet, including shutting down our operations in our Premium Finance and Multi-Family lending groups. Finally, we are working to improve the overall operational efficiency of the Bank. As a first step in this initiative, we recorded early retirement benefits and severance expense of $5.7 million."

"PacWest is a strong organization with extraordinary clients and has a talented and loyal team. Credit quality remains strong as evidenced by credit metrics such as nonperforming assets of 38 basis points and net charge-offs of four basis points for the quarter and two basis points for the year. As we head into 2023, our priority is to refocus on core relationship-based community banking, which is expected to result in increased core deposits, increased capital ratios, and an improved efficiency ratio, and allow us to maintain our credit quality at the current favorable levels."

**FINANCIAL HIGHLIGHTS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At or For the** | **At or For the** | | **At or For the** | **At or For the** | |
| | **Three Months Ended** | **Three Months Ended** | | **Year Ended December 31,** | **Year Ended December 31,** | |
| <br>**Financial Highlights (1)** | **December 31,**<br>**2022** | **September 30,**<br>**2022** |<br>**Increase**<br>**(Decrease)** | **2022** | **2021** |<br>**Increase**<br>**(Decrease)** |
|  | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** |
| Net earnings available to common stockholders | $39562 | $122224 | $(82662) | $404274 | $606959 | $(202685) |
| Diluted earnings per common share | $0.33 | $1.02 | $(0.69) | $3.37 | $5.10 | $(1.73) |
| Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") (2) | $106151 | $178182 | $(72031) | $621068 | $660334 | $(39266) |
| Return on average assets | 0.48% | 1.28% | (0.80) | 1.05% | 1.71% | (0.66) |
| PPNR return on average assets (2) | 1.02% | 1.73% | (0.71) | 1.53% | 1.86% | (0.33) |
| Return on average tangible common equity (2) | 14.39% | 24.11% | (9.72) | 21.04% | 24.41% | (3.37) |
| Yield on average loans and leases (tax equivalent) | 5.73% | 5.12% | 0.61 | 5.07% | 5.08% | (0.01) |
| Cost of average total deposits | 1.37% | 0.70% | 0.67 | 0.59% | 0.09% | 0.50 |
| Net interest margin ("NIM") (tax equivalent) | 3.41% | 3.57% | (0.16) | 3.49% | 3.40% | 0.09 |
| Efficiency ratio | 53.3% | 51.0% | 2.3 | 51.0% | 46.9% | 4.1 |
| Total assets | $41228936 | $41404592 | $(175656) | $41228936 | $40443344 | $785592 |
| Loans and leases held for investment, net of deferred fees | $28609129 | $27660041 | $949088 | $28609129 | $22941548 | $5667581 |
| Noninterest-bearing demand deposits | $11212357 | $12775756 | $(1563399) | $11212357 | $14543133 | $(3330776) |
| Core deposits | $26561129 | $28559310 | $(1998181) | $26561129 | $32734949 | $(6173820) |
| Total deposits | $33936334 | $34195872 | $(259538) | $33936334 | $34997757 | $(1061423) |
| As percentage of total deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing demand deposits | 33% | 37% | (4) | 33% | 41% | (8) |
| &nbsp;&nbsp;&nbsp;Core deposits | 78% | 83% | (5) | 78% | 93% | (15) |
| Equity to assets ratio | 9.58% | 9.36% | 0.22 | 9.58% | 9.89% | (0.31) |
| Common equity tier 1 capital ratio | 8.70% | 8.56% | 0.14 | 8.70% | 8.86% | (0.16) |
| Tier 1 capital ratio | 10.60% | 10.46% | 0.14 | 10.60% | 9.32% | 1.28 |
| Total capital ratio | 13.61% | 13.43% | 0.18 | 13.61% | 12.69% | 0.92 |
| Tangible common equity ratio (2) | 5.13% | 4.85% | 0.28 | 5.13% | 6.54% | (1.41) |
| Tangible book value per common share (2) | $17.00 | $16.11 | $0.89 | $17.00 | $21.31 | $(4.31) |

---

(1) The
operations of the HOA Business are included from its October 8, 2021 acquisition date and the operations of Civic are included from
its February 1, 2021 acquisition date.

(2) Non-GAAP
measure.

**INCOME STATEMENT HIGHLIGHTS**

**NET INTEREST INCOME**

Net interest income decreased by $12.2 million to $322.9 million for the fourth quarter of 2022 compared to $335.2 million for the third quarter of 2022 due mainly to higher interest expense on deposits and borrowings, offset partially by higher interest income on loans and leases and deposits in financial institutions. Interest income on loans and leases increased by $58.4 million in the fourth quarter of 2022 due to a 61 basis points increase in the tax equivalent yield on average loans and leases and a $1.2 billion increase in the average balance of loans and leases compared to the third quarter of 2022. Interest income on deposits in financial institutions increased by $7.4 million in the fourth quarter of 2022 due mainly to a 147 basis points increase in the yield on average deposits in financial institutions. The tax equivalent yield on average loans and leases was 5.73% for the fourth quarter of 2022 compared to 5.12% for the third quarter of 2022. The increase in the tax equivalent yield on average loans and leases was due primarily to higher coupon interest attributable to increased rates on production and on existing variable rate loans. Interest expense on deposits increased by $56.3 million in the fourth quarter of 2022 due mainly to increased market rates that contributed to a 67 basis points increase in the cost of average total deposits. Interest expense on borrowings increased by $16.9 million due to a $1.2 billion increase in the average balance and a 231 basis points increase in the cost of average borrowings attributable mainly to having a full quarter of the higher-cost credit-linked notes outstanding.

The tax equivalent NIM was 3.41% for the fourth quarter of 2022 compared to 3.57% for the third quarter of 2022. The decrease in the NIM was due mainly to a higher cost of average interest-bearing liabilities due primarily to a $1.7 billion decrease in the average balance of core deposits and an increase in average time deposits, offset partially by higher yields on average loans and leases and deposits in financial institutions.

The cost of average total deposits was 1.37% for the fourth quarter of 2022 compared to 0.70% for the third quarter of 2022 due mainly to higher market interest rates and an increase in the average balance of time deposits.

**PROVISION FOR CREDIT LOSSES**

The following table presents details of the provision for credit losses for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
| <br>**Provision for Credit Losses** | **December 31,**<br>**2022** | **September 30,**<br>**2022** |<br>**Increase**<br>**(Decrease)** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Addition to allowance for loan and lease losses | $14000 | $3000 | $11000 |
| Reduction in reserve for unfunded loan commitments | (4000) | - | (4000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loan-related provision | 10000 | 3000 | 7000 |
| Addition to allowance for held-to-maturity securities | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision for credit losses | $10000 | $3000 | $7000 |

---

The provision for credit losses was $10.0 million for the fourth quarter of 2022 compared to $3.0 million for the third quarter of 2022. The $7.0 million increase in the loan-related provision was due mainly to net loan growth in portfolios with a higher loss rate, a slight increase in the levels of special mention and classified loans and leases, and an updated economic forecast reflecting management's expectation of a mild recession ahead.

**Noninterest Income**

The following table presents details of noninterest income for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
| <br>**Noninterest Income** | **December 31,**<br>**2022** | **September 30,**<br>**2022** |<br>**Increase**<br>**(Decrease)** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Service charges on deposit accounts | $3178 | $3608 | $(430) |
| Other commissions and fees | 11208 | 10034 | 1174 |
| Leased equipment income | 12322 | 12835 | (513) |
| Gain on sale of loans and leases | 388 | 58 | 330 |
| (Loss) gain on sale of securities | (49302) | 86 | (49388) |
| Dividends and gains on equity investments | 661 | 3228 | (2567) |
| Warrant (loss) income | (46) | 292 | (338) |
| Other income | 2635 | 8478 | (5843) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest (loss) income | $(18956) | $38619 | $(57575) |

---

Noninterest income decreased by $57.6 million to a loss of $19.0 million for the fourth quarter of 2022 compared to income of $38.6 million for the third quarter of 2022 due primarily to decreases of $49.4 million in gain on sale of securities, $5.8 million in other income, and $2.6 million in dividends and gains on equity investments. The decrease in gain on sale of securities resulted from the sales of $1.0 billion of securities for a net loss of $49.3 million compared to sales of $440.4 million of securities for a net gain of $86,000 for the third quarter of 2022. The decrease in other income was due primarily to the receipt of a $5.5 million legal settlement, net of current year legal fees, in the third quarter of 2022. The decrease in dividends and gains on equity investments was due mainly to lower fair value gains on SBIC investments and income distributions on equity investments.

**Noninterest Expense**

The following table presents details of noninterest expense for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
| <br>**Noninterest Expense** | **December 31,**<br>**2022** | **September 30,**<br>**2022** |<br>**Increase**<br>**(Decrease)** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Compensation | $106124 | $105933 | $191 |
| Occupancy | 14922 | 15574 | (652) |
| Data processing | 9722 | 9568 | 154 |
| Other professional services | 6924 | 10674 | (3750) |
| Insurance and assessments | 7205 | 7159 | 46 |
| Intangible asset amortization | 2629 | 3649 | (1020) |
| Leased equipment depreciation | 8627 | 8908 | (281) |
| Foreclosed assets (income) expense, net | (108) | (248) | 140 |
| Acquisition, integration and reorganization costs | 5703 |  | 5703 |
| Customer related expense | 18197 | 12673 | 5524 |
| Loan expense | 6150 | 6228 | (78) |
| Other | 11737 | 15500 | (3763) |
| &nbsp;&nbsp;&nbsp;Total operating expense | 197832 | 195618 | 2214 |
| Goodwill impairment | 29000 | - | 29000 |
| &nbsp;&nbsp;&nbsp;Total noninterest expense | $226832 | $195618 | $31214 |

---

Noninterest expense increased by $31.2 million to $226.8 million for the fourth quarter 2022 compared to $195.6 million for the third quarter of 2022 due primarily to a $29.0 million goodwill impairment charge related to Civic. Excluding the goodwill impairment, noninterest expense increased by $2.2 million to $197.8 million. The $2.2 million increase was due mainly to increases of $5.7 million in acquisition, integration and reorganization costs and $5.5 million in customer related expense, offset partially by decreases of $3.8 million in other expense, $3.8 million in other professional services, and $1.0 million in intangible asset amortization. The increase in acquisition, integration and reorganization costs was due to early retirement benefits and severance expense in the fourth quarter. The increase in customer related expense was due mostly to higher third-party payments for deposit customers on account analysis. The decrease in other expense was due primarily to a non-recurring legal settlement accrual in the third quarter of 2022. The decrease in other professional services was due mostly to non-recurring issuance costs of the credit-linked notes transaction in the third quarter of 2022. The decrease in intangible asset amortization was due primarily to declining amortization expense on the intangible assets added from acquisitions prior to 2021.

**Income Taxes**

The effective income tax rate was 26.3% for the fourth quarter of 2022 compared to 24.9% for the third quarter of 2022. The increase from the third quarter of 2022 was primarily due to a tax benefit recorded in the third quarter resulting from a lapsed statute. The effective tax rate for the full year 2022 was 25.4%. The effective tax rate for the full year 2023 is currently estimated to be in the range of 26% to 28%.

**BALANCE SHEET HIGHLIGHTS**

**Deposits and Client Investment Funds**

The following table presents the composition of our deposit portfolio as of the dates indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2021** |
| <br>**Deposit Composition** |<br>**Balance** | **% of**<br>**Total** |<br>**Balance** | **% of**<br>**Total** |<br>**Balance** | **% of**<br>**Total** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Noninterest-bearing demand | $11212357 | 33% | $12775756 | 37% | $14543133 | 41% |
| Interest checking | 6990377 | 20% | 6780900 | 20% | 7319898 | 21% |
| Money market | 7780758 | 23% | 8361779 | 24% | 10241265 | 29% |
| Savings | 577637 | 2% | 640875 | 2% | 630653 | 2% |
| &nbsp;&nbsp;&nbsp;Total core deposits | 26561129 | 78% | 28559310 | 83% | 32734949 | 93% |
| Wholesale non-maturity deposits | 2637362 | 8% | 2367544 | 7% | 889976 | 3% |
| &nbsp;&nbsp;&nbsp;Total non-maturity deposits | 29198491 | 86% | 30926854 | 90% | 33624925 | 96% |
| Retail time deposits | 2434414 | 7% | 1778325 | 5% | 1177147 | 3% |
| Brokered time deposits | 2303429 | 7% | 1490693 | 5% | 195685 | 1% |
| &nbsp;&nbsp;&nbsp;Total time deposits (1) | 4737843 | 14% | 3269018 | 10% | 1372832 | 4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $33936334 | 100% | $34195872 | 100% | $34997757 | 100% |

---

(1) Includes time deposits over $250,000 of $1.5 billion, $1.0 billion, and $486.9 million at December 31, 2022, September 30, 2022, and December 31, 2021, respectively.

Total deposits decreased by $259.5 million or 0.8% in the fourth quarter of 2022 due primarily to a $2.0 billion or 7.0% decrease in core deposits, offset partially by a $1.5 billion increase in time deposits and a $269.8 million increase in wholesale non-maturity deposits. At December 31, 2022, core deposits totaled $26.6 billion or 78% of total deposits, including $11.2 billion of noninterest-bearing demand deposits or 33% of total deposits.

In addition to deposit products, we also offer alternative, non-depository cash investment options for select clients. These alternative options include investments managed by Pacific Western Asset Management Inc. ("PWAM"), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds decreased from $1.8 billion as of September 30, 2022 to $1.4 billion as of December 31, 2022, of which $0.9 billion was managed by PWAM.

**Loans and Leases**

The following table presents roll forwards of loans and leases held for investment, net of deferred fees, for the periods indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** |
| <br>**Roll Forward of Loans and Leases Held**<br>**for Investment, Net of Deferred Fees** | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2022** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Balance, beginning of period | $27660041 | $26501137 | $24352072 | $22941548 | $22941548 |
| &nbsp;&nbsp;&nbsp;Additions: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production | 1287248 | 1758107 | 2815181 | 2574860 | 8435396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disbursements | 1919979 | 1677795 | 1871627 | 1589152 | 7058553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total production and disbursements | 3207227 | 3435902 | 4686808 | 4164012 | 15493949 |
| &nbsp;&nbsp;&nbsp;Reductions: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payoffs | (1136016) | (977654) | (1347447) | (1448680) | (4909797) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paydowns | (1050727) | (1256557) | (1183178) | (1264571) | (4755033) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total payoffs and paydowns | (2186743) | (2234211) | (2530625) | (2713251) | (9664830) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales | (2611) | (19635) | (4319) | (36698) | (63263) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers to foreclosed assets | (4714) | (2966) |  | (305) | (7985) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (3352) | (4652) | (2799) | (3234) | (14037) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers to loans held for sale | (60719) | (15534) | - | - | (76253) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total reductions | (2258139) | (2276998) | (2537743) | (2753488) | (9826368) |
| &nbsp;&nbsp;&nbsp;Net increase | 949088 | 1158904 | 2149065 | 1410524 | 5667581 |
| Balance, end of period | $28609129 | $27660041 | $26501137 | $24352072 | $28609129 |
| Weighted average rate on production (1) | 7.55% | 5.92% | 4.61% | 4.31% | 5.24% |

---

(1) The
weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees. Amortized fees
added approximately 21 basis points to loan yields in 2022.

Loans and leases held for investment, net of deferred fees, increased by $949.1 million or 3.4% in the fourth quarter of 2022 to $28.6 billion at December 31, 2022. The overall increase in the loans and leases balance for the fourth quarter of 2022 was due primarily to increases in the residential real estate mortgage and residential real estate construction portfolios.

Civic loan production was $713 million for the fourth quarter of 2022 compared to $831 million for the third quarter of 2022. The Civic loan portfolio as of December 31, 2022 totaled $3.3 billion.

The weighted average rate on the $1.3 billion of production for the fourth quarter of 2022 increased to 7.55% from 5.92% for the third quarter of 2022 due primarily to the loan mix (lower percentage of multi-family production and a higher percentage of Civic production) and the increase in market interest rates.

The following table presents the composition of loans and leases held for investment by loan portfolio segment and class, net of deferred fees, as of the dates indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2021** |
| <br>**Loan and Lease Portfolio** |<br>**Balance** | **% of**<br>**Total** |<br>**Balance** | **% of**<br>**Total** |<br>**Balance** | **% of**<br>**Total** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Real estate mortgage: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | $3846831 | 13% | $3770706 | 14% | $3762299 | 17% |
| &nbsp;&nbsp;&nbsp;Residential | 11396781 | 40% | 10860043 | 39% | 7416421 | 32% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate mortgage | 15243612 | 53% | 14630749 | 53% | 11178720 | 49% |
| Real estate construction and land: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | 898592 | 3% | 843086 | 3% | 832591 | 4% |
| &nbsp;&nbsp;&nbsp;Residential | 3740292 | 13% | 3450430 | 12% | 2604536 | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate construction and land | 4638884 | 16% | 4293516 | 15% | 3437127 | 15% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate | 19882496 | 69% | 18924265 | 68% | 14615847 | 64% |
| Commercial: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset-based | 5140209 | 18% | 5154654 | 19% | 4075477 | 18% |
| &nbsp;&nbsp;&nbsp;Venture capital | 2033302 | 7% | 2001086 | 7% | 2320593 | 10% |
| &nbsp;&nbsp;&nbsp;Other commercial | 1108451 | 4% | 1115442 | 4% | 1471981 | 6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 8281962 | 29% | 8271182 | 30% | 7868051 | 34% |
| Consumer | 444671 | 2% | 464594 | 2% | 457650 | 2% |
| &nbsp;&nbsp;&nbsp;Total loans and leases held for investment, net of deferred fees | $28609129 | 100% | $27660041 | 100% | $22941548 | 100% |
| Total unfunded loan commitments | $11110264 |  | $11227234 |  | $9006350 |  |

---

**Allowance for Credit Losses ON LOANS AND LEASES**

The following tables present roll forwards of the allowance for credit losses on loans and leases for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
| <br>**Allowance for Credit**<br>**Losses on Loans and**<br>**Leases Rollforward** | **Allowance for**<br>**Loan and**<br>**Lease Losses** | **Reserve for**<br>**Unfunded Loan**<br>**Commitments** | **Total**<br>**Allowance for**<br>**Credit Losses** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Beginning balance | $189327 | $95071 | $284398 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (3352) |  | (3352) |
| &nbsp;&nbsp;&nbsp;Recoveries | 757 | - | 757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs | (2595) |  | (2595) |
| &nbsp;&nbsp;&nbsp;Provision | 14000 | (4000) | 10000 |
| Ending balance | $200732 | $91071 | $291803 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2022** | **Three Months Ended September 30, 2022** | **Three Months Ended September 30, 2022** |
| <br>**Allowance for Credit**<br>**Losses on Loans and**<br>**Leases Rollforward** | **Allowance for**<br>**Loan and**<br>**Lease Losses** | **Reserve for**<br>**Unfunded Loan**<br>**Commitments** | **Total**<br>**Allowance for**<br>**Credit Losses** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Beginning balance | $188705 | $95071 | $283776 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (4652) |  | (4652) |
| &nbsp;&nbsp;&nbsp;Recoveries | 2274 | - | 2274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs | (2378) |  | (2378) |
| &nbsp;&nbsp;&nbsp;Provision | 3000 | - | 3000 |
| Ending balance | $189327 | $95071 | $284398 |

---

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| **Allowance for Credit**<br>**Losses on Loans and**<br>**Leases Rollforward** | **2022** | **2021** |
|  | **(In thousands)** | **(In thousands)** |
| Beginning balance | $273635 | $433752 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (14037) | (10715) |
| &nbsp;&nbsp;&nbsp;Recoveries | 9205 | 12598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (charge-offs) recoveries | (4832) | 1883 |
| &nbsp;&nbsp;&nbsp;Provision | 23000 | (162000) |
| Ending balance | $291803 | $273635 |

---

The following table presents allowance for credit losses information on loans and leases as of and for the dates and periods indicated:

---

| | | | |
|:---|:---|:---|:---|
| **Allowance for Credit Losses**<br>**on Loans and Leases** | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **Increase**<br>**(Decrease)** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Allowance for loan and lease losses | $200732 | $189327 | $11405 |
| Reserve for unfunded loan commitments | 91071 | 95071 | (4000) |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | $291803 | $284398 | $7405 |
| Provision for credit losses (for the quarter) | $10000 | $3000 | $7000 |
| Net charge-offs (for the quarter) | $2595 | $2378 | $217 |
| Net charge-offs to average loans and leases (for the quarter) | 0.04% | 0.03% |  |
| Allowance for loan and lease losses to loans and leases held for investment | 0.70% | 0.68% |  |
| Allowance for credit losses to loans and leases held for investment | 1.02% | 1.03% |  |

---

The allowance for credit losses increased by $7.4 million in the fourth quarter of 2022 to $291.8 million at December 31, 2022. This increase was attributable mainly to a $10.0 million provision for credit losses, offset partially by $2.6 million in net charge-offs.

Net charge-offs over the trailing twelve months were $4.8 million, which results in net charge-offs to average loans and leases over the trailing twelve months of 0.2%.

**CREDIT QUALITY**

The following table presents loan and lease credit quality metrics as of the dates indicated:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Credit Quality Metrics** | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **Increase**<br>**(Decrease)** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **NPAs and Performing TDRs:** |  |  |  |
| Nonaccrual loans and leases held for investment (1) | $103778 | $89742 | $14036 |
| Accruing loans contractually past due 90 days or more |  |  |  |
| Foreclosed assets, net | 5022 | 2967 | 2055 |
| &nbsp;&nbsp;&nbsp;Total nonperforming assets ("NPAs") | $108800 | $92709 | $16091 |
| Performing TDRs held for investment | $7141 | $8106 | $(965) |
| Nonaccrual loans and leases held for investment to loans and leases held for investment | 0.36% | 0.32% |  |
| Nonperforming assets to loans and leases held for investment and foreclosed assets | 0.38% | 0.34% |  |
| Allowance for credit losses to nonaccrual loans and leases held for investment | 281.2% | 316.9% |  |
| **Loan and Lease Credit Risk Ratings:** |  |  |  |
| Pass | $27924599 | $27099362 | $825237 |
| Special mention | 566259 | 463994 | 102265 |
| Classified | 118271 | 96685 | 21586 |
| Total loans and leases held for investment, net of deferred fees | $28609129 | $27660041 | $949088 |
| Special mention loans and leases held for investment to loans and leases held for investment | 1.98% | 1.68% |  |
| Classified loans and leases held for investment to loans and leases held for investment | 0.41% | 0.35% |  |

---

(1) Nonaccrual loans include SBA guaranteed amounts of $14.3 million at December 31, 2022 and $17.2 million at September 30, 2022.

Nonaccrual loans and leases increased by $14.0 million to $103.8 million in the fourth quarter of 2022 due primarily to an increase in nonaccrual Civic loans.

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **Increase (Decrease)** | **Increase (Decrease)** |
|  |<br><br>**Nonaccrual** | **Accruing**<br>**and 30-89**<br>**Days Past**<br>**Due** |<br><br>**Nonaccrual** | **Accruing**<br>**and 30-89**<br>**Days Past**<br>**Due** |<br><br>**Nonaccrual** | **Accruing**<br>**and 30-89**<br>**Days Past**<br>**Due** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Real estate mortgage: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | $42509 | $1047 | $42772 | $14 | $(263) | $1033 |
| &nbsp;&nbsp;&nbsp;Residential | 45272 | 69397 | 25950 | 21700 | 19322 | 47697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate mortgage | 87781 | 70444 | 68722 | 21714 | 19059 | 48730 |
| Real estate construction and land: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential | 10621 | 26257 | 7101 | 3051 | 3520 | 23206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate construction and land | 10621 | 26257 | 7101 | 3051 | 3520 | 23206 |
| Commercial: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset-based | 865 |  | 2127 |  | (1262) |  |
| &nbsp;&nbsp;&nbsp;Venture capital |  |  | 3809 |  | (3809) |  |
| &nbsp;&nbsp;&nbsp;Other commercial | 4345 | 385 | 7616 | 265 | (3271) | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial | 5210 | 385 | 13552 | 265 | (8342) | 120 |
| Consumer | 166 | 1935 | 367 | 1996 | (201) | (61) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total held for investment | $103778 | $99021 | $89742 | $27026 | $14036 | $71995 |

---

Loans and leases accruing and 30-89 days past due generally fluctuate from period to period. The $72.0 million increase to $99.0 million in the fourth quarter of 2022 was due mainly to an increase in Civic delinquent loans. This was due primarily to an increase in matured loans and an increase in the dollar amount of delinquent loans which correlates with the continued growth in the Civic loan portfolio balance.

**CAPITAL**

The following table presents capital ratios as of the dates indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **December 31,**<br>**2021** |
| **PacWest Bancorp Consolidated:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Common equity tier 1 capital ratio (1) | 8.70% | 8.56% | 8.86% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital ratio (1) | 10.60% | 10.46% | 9.32% |
| &nbsp;&nbsp;&nbsp;Total capital ratio (1) | 13.61% | 13.43% | 12.69% |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage capital ratio (1) | 8.61% | 8.63% | 6.84% |
| &nbsp;&nbsp;&nbsp;Risk-weighted assets (1) *(in thousands)* | $33033597 | $33042173 | $28508808 |
| &nbsp;&nbsp;&nbsp;Tangible common equity ratio (2) | 5.13% | 4.85% | 6.54% |
| &nbsp;&nbsp;&nbsp;Tangible common equity ratio excluding the impact of AOCI for securities (2) | 7.12% | 6.97% | 6.37% |

---

(1) Capital information for December 31, 2022 is preliminary.

(2) Non-GAAP measure.

**CONFERENCE CALL**

PacWest Bancorp ("PacWest") will host a conference call at 8:00 AM PT/ 11:00 AM ET on Friday, January 27, 2023, to discuss the Company's performance for the fourth quarter of 2022.

Participants may access the conference call/webcast at:

Participant Dial-in: (888) 204-4368

Participant Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1590835&tp key=aedee87ee7

Confirmation Code: 2205611

The call will be recorded and made available for replay on January 27, 2023, after 12:00 PM PT. The recording may be accessed through the link above or at https://www.pacwestbancorp.com/news-market-data/presentations/default.aspx.

**ABOUT PACWEST BANCORP**

PacWest is a bank holding company with over $41 billion in assets headquartered in Los Angeles, California, with an executive office in Denver, Colorado, with one wholly-owned banking subsidiary, Pacific Western Bank (the "Bank"). Pacific Western Bank is a relationship-based community bank focused on providing business banking and treasury management services to small, middle-market, and venture-backed businesses. The Bank offers a broad range of loan and lease and deposit products and services through full-service branches throughout California and in Durham, North Carolina and Denver, Colorado, and loan production offices around the country. For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.

**FORWARD-LOOKING STATEMENTS**

This communication 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. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward-looking statements. Such statements often use words such as "anticipates," "targets," "expects," "estimates," "intends," "plans," "believes," "continue" and other similar expressions or future or conditional verbs such as "will," "may," "might," "should," "would" and "could." Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of PacWest's management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those expressed in them. Continued deterioration in general business, economic, and political conditions, geopolitical tensions, uncertainty in U.S. fiscal monetary policy, including the interest rate policies of the Federal Reserve Board, and volatility and disruptions in credit and capital markets could lead to a tightening of credit and an increase of credit losses, adversely affect PacWest's revenues and the values of our assets, including goodwill, and liabilities, and increase stock price volatility. The risks and impacts of the COVID-19 pandemic appear to have largely subsided, however, new variants may continue to impact key macro-economic indicators such as unemployment and GDP and may have a material impact on our business, financial position, and results of operations. In addition, PacWest's results could be adversely affected by changes in interest rates, inflation, and unemployment rates, our ability to attract deposits and other sources of funding and liquidity, deterioration in the credit quality of our loan portfolio or in the value of the collateral securing those loans, deterioration in the value of our investment securities, our ability to successfully execute on our digital and innovation initiatives, the effectiveness of our risk management framework and quantitative models, and legal and regulatory developments. Actual results may differ materially from those set forth or implied in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by PacWest with the U.S. Securities and Exchange Commission.

All forward-looking statements in this communication are based on information available at the time the statement is made. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

**PACWEST BANCORP AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEET**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **December 31,**<br>**2021** |
|  | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** |
| **ASSETS:** |  |  |  |
| Cash and due from banks | $212273 | $216436 | $112548 |
| Interest-earning deposits in financial institutions | 2027949 | 2244272 | 3944686 |
| &nbsp;&nbsp;&nbsp;**Total cash and cash equivalents** | 2240222 | 2460708 | 4057234 |
| Securities available-for-sale, at estimated fair value | 4843487 | 5891328 | 10694458 |
| Securities held-to-maturity, at amortized cost, net of allowance for credit losses | 2269135 | 2264601 |  |
| Federal Home Loan Bank stock, at cost | 34290 | 36990 | 17250 |
| &nbsp;&nbsp;&nbsp;**Total investment securities** | 7146912 | 8192919 | 10711708 |
| **Loans held for sale** | 65076 | 15534 | - |
| Gross loans and leases held for investment | 28726016 | 27775962 | 23026308 |
| Deferred fees, net | (116887) | (115921) | (84760) |
| Total loans and leases held for investment, net of deferred fees | 28609129 | 27660041 | 22941548 |
| Allowance for loan and lease losses | (200732) | (189327) | (200564) |
| &nbsp;&nbsp;&nbsp;**Total loans and leases held for investment, net** | 28408397 | 27470714 | 22740984 |
| Equipment leased to others under operating leases | 404245 | 338691 | 339150 |
| Premises and equipment, net | 54315 | 50781 | 46740 |
| Foreclosed assets, net | 5022 | 2967 | 12843 |
| Goodwill | 1376736 | 1405736 | 1405736 |
| Core deposit and customer relationship intangibles, net | 31381 | 34010 | 44957 |
| Other assets | 1496630 | 1432532 | 1083992 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $41228936 | $41404592 | $40443344 |
| **LIABILITIES:** |  |  |  |
| Noninterest-bearing deposits | $11212357 | $12775756 | $14543133 |
| Interest-bearing deposits | 22723977 | 21420116 | 20454624 |
| &nbsp;&nbsp;&nbsp;**Total deposits** | 33936334 | 34195872 | 34997757 |
| Borrowings | 1764030 | 1864815 |  |
| Subordinated debt | 867087 | 863379 | 863283 |
| Accrued interest payable and other liabilities | 710954 | 604581 | 582674 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | 37278405 | 37528647 | 36443714 |
| **STOCKHOLDERS' EQUITY (1)** | 3950531 | 3875945 | 3999630 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $41228936 | $41404592 | $40443344 |
| Book value per common share | $28.71 | $28.07 | $33.45 |
| Tangible book value per common share (2) | $17.00 | $16.11 | $21.31 |
| Common shares outstanding | 120222057 | 120314023 | 119584854 |
| (1) Includes net unrealized (loss) gain on: |  |  |  |
| &nbsp;&nbsp;&nbsp; Securities available-for-sale, net | $(586450) | $(637346) | $65968 |
| &nbsp;&nbsp;&nbsp; Securities held to maturity | (204453) | (210868) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(790903) | $(848214) | $65968 |
| (2) Non-GAAP measure. |  |  |  |

---

**PACWEST BANCORP AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENT OF EARNINGS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | | | | **December 31,** | **December 31,** |
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **December 31,**<br>**2021** | **2022** | **2021** |
|  | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** |
| **Interest income:** |  |  |  |  |  |
| Loans and leases | $404985 | $346550 | $263662 | $1312580 | $996457 |
| Investment securities | 50292 | 53135 | 48469 | 209751 | 153468 |
| Deposits in financial institutions | 17746 | 10359 | 2674 | 34158 | 8804 |
| &nbsp;&nbsp;&nbsp;Total interest income | 473023 | 410044 | 314805 | 1556489 | 1158729 |
| **Interest expense:** |  |  |  |  |  |
| Deposits | 117591 | 61288 | 6622 | 200449 | 27808 |
| Borrowings | 19962 | 3081 | 64 | 25645 | 623 |
| Subordinated debt | 12531 | 10494 | 7714 | 39633 | 26474 |
| &nbsp;&nbsp;&nbsp;Total interest expense | 150084 | 74863 | 14400 | 265727 | 54905 |
| &nbsp;&nbsp;&nbsp;**Net interest income** | 322939 | 335181 | 300405 | 1290762 | 1103824 |
| Provision for credit losses | 10000 | 3000 | (6000) | 24500 | (162000) |
| &nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 312939 | 332181 | 306405 | 1266262 | 1265824 |
| **Noninterest income:** |  |  |  |  |  |
| Service charges on deposit accounts | 3178 | 3608 | 3476 | 13991 | 13269 |
| Other commissions and fees | 11208 | 10034 | 10633 | 43635 | 42287 |
| Leased equipment income | 12322 | 12835 | 12602 | 50586 | 45746 |
| Gain on sale of loans and leases | 388 | 58 | 172 | 518 | 1733 |
| (Loss) gain on sale of securities | (49302) | 86 | 999 | (50321) | 1615 |
| Dividends and gains (losses) on equity investments | 661 | 3228 | (1570) | (3389) | 23115 |
| Warrant (loss) income | (46) | 292 | 23990 | 2490 | 49341 |
| Other income | 2635 | 8478 | 7080 | 17317 | 16821 |
| &nbsp;&nbsp;&nbsp;Total noninterest (loss) income | (18956) | 38619 | 57382 | 74827 | 193927 |
| **Noninterest expense:** |  |  |  |  |  |
| Compensation | 106124 | 105933 | 99700 | 406839 | 368450 |
| Occupancy | 14922 | 15574 | 14656 | 60964 | 58422 |
| Data processing | 9722 | 9568 | 8171 | 38177 | 30277 |
| Other professional services | 6924 | 10674 | 5946 | 30278 | 21492 |
| Insurance and assessments | 7205 | 7159 | 5032 | 25486 | 17365 |
| Intangible asset amortization | 2629 | 3649 | 3876 | 13576 | 12734 |
| Leased equipment depreciation | 8627 | 8908 | 9569 | 35658 | 35755 |
| Foreclosed assets (income) expense, net | (108) | (248) | (260) | (3737) | (213) |
| Acquisition, integration and reorganization costs | 5703 |  | 5590 | 5703 | 9415 |
| Customer related expense | 18197 | 12673 | 6175 | 55273 | 20504 |
| Loan expense | 6150 | 6228 | 5627 | 24572 | 17031 |
| Goodwill impairment | 29000 |  |  | 29000 |  |
| Other expense | 11737 | 15500 | 12028 | 51732 | 46185 |
| &nbsp;&nbsp;&nbsp;Total noninterest expense | 226832 | 195618 | 176110 | 773521 | 637417 |
| Earnings before income taxes | 67151 | 175182 | 187677 | 567568 | 822334 |
| Income tax expense | 17642 | 43566 | 51632 | 143955 | 215375 |
| &nbsp;&nbsp;&nbsp;**Net earnings** | 49509 | 131616 | 136045 | 423613 | 606959 |
| Preferred stock dividends | 9947 | 9392 | - | 19339 | - |
| &nbsp;&nbsp;&nbsp;**Net earnings available to common stockholders** | $39562 | $122224 | $136045 | $404274 | $606959 |
| Basic and diluted earnings per common share | $0.33 | $1.02 | $1.14 | $3.37 | $5.10 |
| Dividends declared and paid per common share | $0.25 | $0.25 | $0.25 | $1.00 | $1.00 |

---

**PACWEST BANCORP AND SUBSIDIARIES**

**NET EARNINGS PER COMMON SHARE**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | | | | **December 31,** | **December 31,** |
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **December 31,**<br>**2021** | **2022** | **2021** |
|  | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** |
| **Basic Earnings Per Common Share:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net earnings | $49509 | $131616 | $136045 | $423613 | $606959 |
| &nbsp;&nbsp;&nbsp;Less: Preferred stock dividends | (9947) | (9392) | - | (19339) | - |
| &nbsp;&nbsp;&nbsp;Net earnings available to common stockholders | 39562 | 122224 | 136045 | 404274 | 606959 |
| &nbsp;&nbsp;&nbsp;Less: Earnings allocated to unvested restricted stock (1) | (714) | (2331) | (2311) | (7474) | (10248) |
| &nbsp;&nbsp;&nbsp;Net earnings allocated to common shares | $38848 | $119893 | $133734 | $396800 | $596711 |
| &nbsp;&nbsp;&nbsp;Weighted average basic shares and unvested restricted stock outstanding | 120314 | 120342 | 119577 | 120071 | 119349 |
| &nbsp;&nbsp;&nbsp;Less: weighted average unvested restricted stock outstanding | (2503) | (2556) | (2314) | (2442) | (2255) |
| &nbsp;&nbsp;&nbsp;Weighted average basic shares outstanding | 117811 | 117786 | 117263 | 117629 | 117094 |
| &nbsp;&nbsp;&nbsp;Basic earnings per common share | $0.33 | $1.02 | $1.14 | $3.37 | $5.10 |
| **Diluted Earnings Per Common Share:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net earnings allocated to common shares | $38848 | $119893 | $133734 | $396800 | $596711 |
| &nbsp;&nbsp;&nbsp;Weighted average diluted shares outstanding | 117811 | 117786 | 117263 | 117629 | 117094 |
| &nbsp;&nbsp;&nbsp;Diluted earnings per common share | $0.33 | $1.02 | $1.14 | $3.37 | $5.10 |

---

(1) Represents cash dividends paid to holders of unvested stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

**PACWEST BANCORP AND SUBSIDIARIES**

**AVERAGE BALANCE SHEET AND YIELD ANALYSIS**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **September 30, 2022** | **September 30, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  |<br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Cost** |<br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Cost** |<br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Cost** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **<u>Assets:</u>** |  |  |  |  |  |  |  |  |  |
| Loans and leases (1)(2) | $28192953 | $407135 | 5.73% | $27038873 | $348639 | 5.12% | $21367665 | $265549 | 4.93% |
| Investment securities (3) | 7824915 | 50697 | 2.57% | 8803349 | 54423 | 2.45% | 9964568 | 50710 | 2.02% |
| Deposits in financial institutions | 1881950 | 17746 | 3.74% | 1809809 | 10359 | 2.27% | 5961104 | 2674 | 0.18% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets (1) | 37899818 | 475578 | 4.98% | 37652031 | 413421 | 4.36% | 37293337 | 318933 | 3.39% |
| Other assets | 3252145 |  |  | 3189241 |  |  | 3064810 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $41151963 |  |  | $40841272 |  |  | $40358147 |  |  |
| **<u>Liabilities and Stockholders' Equity:</u>** |  |  |  |  |  |  |  |  |  |
| Interest checking | $7146333 | 41427 | 2.30% | $6650477 | 19475 | 1.16% | $7767211 | 2041 | 0.10% |
| Money market | 10088641 | 51687 | 2.03% | 10914027 | 31780 | 1.16% | 10226366 | 3400 | 0.13% |
| Savings | 616298 | 66 | 0.04% | 649574 | 42 | 0.03% | 634874 | 39 | 0.02% |
| Time | 3909130 | 24411 | 2.48% | 3000187 | 9991 | 1.32% | 1421859 | 1142 | 0.32% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 21760402 | 117591 | 2.14% | 21214265 | 61288 | 1.15% | 20050310 | 6622 | 0.13% |
| Borrowings | 1675738 | 19962 | 4.73% | 505482 | 3081 | 2.42% | 234391 | 64 | 0.11% |
| Subordinated debt | 864581 | 12531 | 5.75% | 863719 | 10494 | 4.82% | 862777 | 7714 | 3.55% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 24300721 | 150084 | 2.45% | 22583466 | 74863 | 1.32% | 21147478 | 14400 | 0.27% |
| Noninterest-bearing demand deposits | 12325902 |  |  | 13653177 |  |  | 14713385 |  |  |
| Other liabilities | 626540 |  |  | 593450 |  |  | 543017 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 37253163 |  |  | 36830093 |  |  | 36403880 |  |  |
| Stockholders' equity | 3898800 |  |  | 4011179 |  |  | 3954267 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $41151963 |  |  | $40841272 |  |  | $40358147 |  |  |
| Net interest income (1) |  | $325494 |  |  | $338558 |  |  | $304533 |  |
| Net interest spread (1) |  |  | 2.53% |  |  | 3.04% |  |  | 3.12% |
| Net interest margin (1) |  |  | 3.41% |  |  | 3.57% |  |  | 3.24% |
| Total deposits (4) | $34086304 | $117591 | 1.37% | $34867442 | $61288 | 0.70% | $34763695 | $6622 | 0.08% |

---

(1) Tax
equivalent.

(2) Includes
net loan premium amortization of $2.5 million, $3.8 million, and $6.4 million for the three months ended December 31, 2022, September 30,
2022, and December 31, 2021, respectively.

(3) Includes
tax-equivalent adjustments of $0.4 million, $1.3 million, and $2.2 million for the three months ended December 31, 2022, September 30,
2022, and December 31, 2021 related to tax-exempt income on investment securities.

The federal statutory tax rate utilized was 21%.

(4) Total
deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits. The cost of total deposits
is calculated as annualized interest expense on total deposits divided by average total deposits.

**PACWEST BANCORP AND SUBSIDIARIES**

**FIVE QUARTER BALANCE SHEET**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2021** |
|  | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** |
| **ASSETS:** |  |  |  |  |  |
| Cash and due from banks | $212273 | $216436 | $197027 | $205446 | $112548 |
| Interest-earning deposits in financial institutions | 2027949 | 2244272 | 2192877 | 1865235 | 3944686 |
| &nbsp;&nbsp;&nbsp;**Total cash and cash equivalents** | 2240222 | 2460708 | 2389904 | 2070681 | 4057234 |
| Securities available-for-sale | 4843487 | 5891328 | 6780648 | 9975109 | 10694458 |
| Securities held-to-maturity | 2269135 | 2264601 | 2260367 |  |  |
| Federal Home Loan Bank stock | 34290 | 36990 | 33210 | 17250 | 17250 |
| &nbsp;&nbsp;&nbsp;**Total investment securities** | 7146912 | 8192919 | 9074225 | 9992359 | 10711708 |
| **Loans held for sale** | 65076 | 15534 | - | - | - |
| Gross loans and leases held for investment | 28726016 | 27775962 | 26608541 | 24439749 | 23026308 |
| Deferred fees, net | (116887) | (115921) | (107404) | (87677) | (84760) |
| &nbsp;&nbsp;&nbsp;Total loans and leases held for investment, net of deferred fees | 28609129 | 27660041 | 26501137 | 24352072 | 22941548 |
| Allowance for loan and lease losses | (200732) | (189327) | (188705) | (197398) | (200564) |
| &nbsp;&nbsp;&nbsp;**Total loans and leases held for investment, net** | 28408397 | 27470714 | 26312432 | 24154674 | 22740984 |
| Equipment leased to others under operating leases | 404245 | 338691 | 324233 | 325305 | 339150 |
| Premises and equipment, net | 54315 | 50781 | 51083 | 51011 | 46740 |
| Foreclosed assets, net | 5022 | 2967 |  | 304 | 12843 |
| Goodwill | 1376736 | 1405736 | 1405736 | 1405736 | 1405736 |
| Core deposit and customer relationship intangibles, net | 31381 | 34010 | 37659 | 41308 | 44957 |
| Other assets | 1496630 | 1432532 | 1355451 | 1208261 | 1083992 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $41228936 | $41404592 | $40950723 | $39249639 | $40443344 |
| **LIABILITIES:** |  |  |  |  |  |
| Noninterest-bearing deposits | $11212357 | $12775756 | $13338029 | $14057051 | $14543133 |
| Interest-bearing deposits | 22723977 | 21420116 | 20630123 | 19167844 | 20454624 |
| &nbsp;&nbsp;&nbsp;**Total deposits** | 33936334 | 34195872 | 33968152 | 33224895 | 34997757 |
| Borrowings | 1764030 | 1864815 | 1592000 | 991000 |  |
| Subordinated debt | 867087 | 863379 | 863756 | 863880 | 863283 |
| Accrued interest payable and other liabilities | 710954 | 604581 | 548412 | 519269 | 582674 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | 37278405 | 37528647 | 36972320 | 35599044 | 36443714 |
| **STOCKHOLDERS' EQUITY (1)** | 3950531 | 3875945 | 3978403 | 3650595 | 3999630 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $41228936 | $41404592 | $40950723 | $39249639 | $40443344 |
| Book value per common share | $28.71 | $28.07 | $28.93 | $30.52 | $33.45 |
| Tangible book value per common share (2) | $17.00 | $16.11 | $16.93 | $18.42 | $21.31 |
| Common shares outstanding | 120222057 | 120314023 | 120288024 | 119601766 | 119584854 |
| (1) Includes net unrealized (loss) gain on: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities available-for-sale, net | $(586450) | $(637346) | $(428242) | $(376475) | $65968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities held to maturity | (204453) | (210868) | (216508) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(790903) | $(848214) | $(644750) | $(376475) | $65968 |
| (2) Non-GAAP measure. |  |  |  |  |  |

---

**PACWEST BANCORP AND SUBSIDIARIES**

**FIVE QUARTER STATEMENT OF EARNINGS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2021** |
|  | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** | ***(In thousands, except per share data)*** |
| **Interest income:** |  |  |  |  |  |
| Loans and leases | $404985 | $346550 | $293286 | $267759 | $263662 |
| Investment securities | 50292 | 53135 | 52902 | 53422 | 48469 |
| Deposits in financial institutions | 17746 | 10359 | 4330 | 1723 | 2674 |
| &nbsp;&nbsp;&nbsp;Total interest income | 473023 | 410044 | 350518 | 322904 | 314805 |
| **Interest expense:** |  |  |  |  |  |
| Deposits | 117591 | 61288 | 15362 | 6208 | 6622 |
| Borrowings | 19962 | 3081 | 2441 | 161 | 64 |
| Subordinated debt | 12531 | 10494 | 8790 | 7818 | 7714 |
| &nbsp;&nbsp;&nbsp;Total interest expense | 150084 | 74863 | 26593 | 14187 | 14400 |
| &nbsp;&nbsp;&nbsp;**Net interest income** | 322939 | 335181 | 323925 | 308717 | 300405 |
| Provision for credit losses | 10000 | 3000 | 11500 | - | (6000) |
| &nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 312939 | 332181 | 312425 | 308717 | 306405 |
| **Noninterest income:** |  |  |  |  |  |
| Service charges on deposit accounts | 3178 | 3608 | 3634 | 3571 | 3476 |
| Other commissions and fees | 11208 | 10034 | 10813 | 11580 | 10633 |
| Leased equipment income | 12322 | 12835 | 12335 | 13094 | 12602 |
| Gain on sale of loans and leases | 388 | 58 | 12 | 60 | 172 |
| (Loss) gain on sale of securities | (49302) | 86 | (1209) | 104 | 999 |
| Dividends and gains (losses) on equity investments | 661 | 3228 | 4097 | (11375) | (1570) |
| Warrant (loss) income | (46) | 292 | 1615 | 629 | 23990 |
| Other income | 2635 | 8478 | 3049 | 3155 | 7080 |
| &nbsp;&nbsp;&nbsp;Total noninterest (loss) income | (18956) | 38619 | 34346 | 20818 | 57382 |
| **Noninterest expense:** |  |  |  |  |  |
| Compensation | 106124 | 105933 | 102542 | 92240 | 99700 |
| Occupancy | 14922 | 15574 | 15268 | 15200 | 14656 |
| Data processing | 9722 | 9568 | 9258 | 9629 | 8171 |
| Other professional services | 6924 | 10674 | 6726 | 5954 | 5946 |
| Insurance and assessments | 7205 | 7159 | 5632 | 5490 | 5032 |
| Intangible asset amortization | 2629 | 3649 | 3649 | 3649 | 3876 |
| Leased equipment depreciation | 8627 | 8908 | 8934 | 9189 | 9569 |
| Foreclosed assets (income) expense, net | (108) | (248) | (28) | (3353) | (260) |
| Acquisition, integration and reorganization costs | 5703 |  |  |  | 5590 |
| Customer related expense | 18197 | 12673 | 11748 | 12655 | 6175 |
| Loan expense | 6150 | 6228 | 7037 | 5157 | 5627 |
| Goodwill impairment | 29000 |  |  |  |  |
| Other expense | 11737 | 15500 | 12879 | 11616 | 12028 |
| &nbsp;&nbsp;&nbsp;Total noninterest expense | 226832 | 195618 | 183645 | 167426 | 176110 |
| Earnings before income taxes | 67151 | 175182 | 163126 | 162109 | 187677 |
| Income tax expense | 17642 | 43566 | 40766 | 41981 | 51632 |
| &nbsp;&nbsp;&nbsp;**Net earnings** | 49509 | 131616 | 122360 | 120128 | 136045 |
| Preferred stock dividends | 9947 | 9392 | - | - | - |
| &nbsp;&nbsp;&nbsp;**Net earnings available to common stockholders** | $39562 | $122224 | $122360 | $120128 | $136045 |
| Basic and diluted earnings per common share | $0.33 | $1.02 | $1.02 | $1.01 | $1.14 |
| Dividends declared and paid per common share | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 |

---

**PACWEST BANCORP AND SUBSIDIARIES**

**FIVE QUARTER SELECTED FINANCIAL DATA**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **At or For the Three Months Ended** | **At or For the Three Months Ended** | **At or For the Three Months Ended** | **At or For the Three Months Ended** | **At or For the Three Months Ended** |
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2021** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Performance Ratios:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Return on average assets (1) | 0.48% | 1.28% | 1.23% | 1.22% | 1.34% |
| &nbsp;&nbsp;&nbsp;Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") return on average assets (1)(2) | 1.02% | 1.73% | 1.75% | 1.65% | 1.79% |
| &nbsp;&nbsp;&nbsp;Return on average equity (1) | 5.04% | 13.02% | 13.44% | 12.66% | 13.65% |
| &nbsp;&nbsp;&nbsp;Return on average tangible common equity (1)(2) | 14.39% | 24.11% | 24.42% | 20.93% | 22.06% |
| &nbsp;&nbsp;&nbsp;Efficiency ratio | 53.3% | 51.0% | 49.5% | 50.1% | 46.2% |
| &nbsp;&nbsp;&nbsp;Noninterest expense as a percentage of average assets (1) | 2.19% | 1.90% | 1.84% | 1.70% | 1.73% |
| **Average Yields/Costs (1):** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Yield on: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average loans and leases (3) | 5.73% | 5.12% | 4.65% | 4.66% | 4.93% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average investment securities (3) | 2.57% | 2.45% | 2.32% | 2.17% | 2.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average interest-earning assets (3) | 4.98% | 4.36% | 3.85% | 3.59% | 3.39% |
| &nbsp;&nbsp;&nbsp;Cost of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average interest-bearing deposits | 2.14% | 1.15% | 0.31% | 0.13% | 0.13% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average total deposits | 1.37% | 0.70% | 0.18% | 0.07% | 0.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average interest-bearing liabilities | 2.45% | 1.32% | 0.49% | 0.27% | 0.27% |
| &nbsp;&nbsp;&nbsp;Net interest spread (3) | 2.53% | 3.04% | 3.36% | 3.32% | 3.12% |
| &nbsp;&nbsp;&nbsp;Net interest margin (3) | 3.41% | 3.57% | 3.56% | 3.43% | 3.24% |
| **Average Balances:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and leases, net of deferred fees | $28192953 | $27038873 | $25499773 | $23433019 | $21367665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 7824915 | 8803349 | 9488653 | 10397709 | 9964568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits in financial institutions | 1881950 | 1809809 | 1984751 | 3083159 | 5961104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-earning assets | 37899818 | 37652031 | 36973177 | 36913887 | 37293337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | 41151963 | 40841272 | 40031891 | 39883304 | 40358147 |
| &nbsp;&nbsp;&nbsp;Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing deposits | 12325902 | 13653177 | 13987398 | 14463667 | 14713385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing deposits | 21760402 | 21214265 | 19661618 | 19868395 | 20050310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 34086304 | 34867442 | 33649016 | 34332062 | 34763695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 1675738 | 505482 | 1356616 | 298444 | 234391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated debt | 864581 | 863719 | 863653 | 863572 | 862777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing liabilities | 24300721 | 22583466 | 21881887 | 21030411 | 21147478 |
| &nbsp;&nbsp;&nbsp;Stockholders' equity | 3898800 | 4011179 | 3652368 | 3847481 | 3954267 |

---

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent.

**PACWEST BANCORP AND SUBSIDIARIES**

**FIVE QUARTER SELECTED FINANCIAL DATA**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **At or For the Three Months Ended** | **At or For the Three Months Ended** | **At or For the Three Months Ended** | **At or For the Three Months Ended** | **At or For the Three Months Ended** |
|  | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **December 31,**<br>**2021** |
|  | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** |
| **Credit Quality Metrics for Loans and Leases Held for Investment:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Nonaccrual loans and leases | $103778 | $89742 | $78527 | $66538 | $61174 |
| &nbsp;&nbsp;&nbsp;Nonperforming assets | 108800 | 92709 | 78527 | 66842 | 74017 |
| &nbsp;&nbsp;&nbsp;Special mention loans and leases | 566259 | 463994 | 480261 | 377315 | 391611 |
| &nbsp;&nbsp;&nbsp;Classified loans and leases | 118271 | 96685 | 104264 | 82068 | 116104 |
| &nbsp;&nbsp;&nbsp;Allowance for loan and lease losses | 200732 | 189327 | 188705 | 197398 | 200564 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses | 291803 | 284398 | 283776 | 272469 | 273635 |
| &nbsp;&nbsp;&nbsp;For the quarter: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 10000 | 3000 | 10000 |  | (6000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) | 2595 | 2378 | (1307) | 1166 | 169 |
| &nbsp;&nbsp;&nbsp;Nonaccrual loans and leases to loans and leases | 0.36% | 0.32% | 0.30% | 0.27% | 0.27% |
| &nbsp;&nbsp;&nbsp;Nonperforming assets to loans and leases and foreclosed assets | 0.38% | 0.34% | 0.30% | 0.27% | 0.32% |
| &nbsp;&nbsp;&nbsp;Special mention loans and leases to loans and leases | 1.98% | 1.68% | 1.81% | 1.55% | 1.71% |
| &nbsp;&nbsp;&nbsp;Classified loans and leases to loans and leases | 0.41% | 0.35% | 0.39% | 0.34% | 0.51% |
| &nbsp;&nbsp;&nbsp;Allowance for loan and lease losses to loans and leases | 0.70% | 0.68% | 0.71% | 0.81% | 0.87% |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses to loans and leases | 1.02% | 1.03% | 1.07% | 1.12% | 1.19% |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses to nonaccrual loans and leases | 281.18% | 316.91% | 361.37% | 409.49% | 447.31% |
| &nbsp;&nbsp;&nbsp;Net charge-offs (recoveries) to average loans and leases | 0.04% | 0.03% | (0.02)% | 0.02% | 0.00% |
| &nbsp;&nbsp;&nbsp;Trailing 12 months net charge-offs (recoveries) to average loans and leases | 0.02% | 0.01% | 0.00% | (0.02)% | (0.01)% |
| **PacWest Bancorp Consolidated:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common equity tier 1 capital ratio (1) | 8.70% | 8.56% | 8.24% | 8.64% | 8.86% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital ratio (1) | 10.60% | 10.46% | 10.15% | 9.07% | 9.32% |
| &nbsp;&nbsp;&nbsp;Total capital ratio (1) | 13.61% | 13.43% | 13.12% | 12.27% | 12.69% |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage capital ratio (1) | 8.61% | 8.63% | 8.52% | 7.11% | 6.84% |
| &nbsp;&nbsp;&nbsp;Risk-weighted assets (1) | $33033597 | $33042173 | $33009455 | $30297312 | $28508808 |
| &nbsp;&nbsp;&nbsp;Equity to assets ratio | 9.58% | 9.36% | 9.72% | 9.30% | 9.89% |
| &nbsp;&nbsp;&nbsp;Tangible common equity ratio (2) | 5.13% | 4.85% | 5.15% | 5.83% | 6.54% |
| &nbsp;&nbsp;&nbsp;Book value per common share | $28.71 | $28.07 | $28.93 | $30.52 | $33.45 |
| &nbsp;&nbsp;&nbsp;Tangible book value per common share (2) | $17.00 | $16.11 | $16.93 | $18.42 | $21.31 |
| **Pacific Western Bank:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common equity tier 1 capital ratio (1) | 10.32% | 10.17% | 9.78% | 9.32% | 9.56% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital ratio (1) | 10.32% | 10.17% | 9.78% | 9.32% | 9.56% |
| &nbsp;&nbsp;&nbsp;Total capital ratio (1) | 12.34% | 12.16% | 11.77% | 11.45% | 11.80% |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage capital ratio (1) | 8.39% | 8.39% | 8.21% | 7.31% | 7.00% |

---

(1) Capital information for December 31, 2022 is preliminary.

(2) Non-GAAP measure.

**GAAP TO NON-GAAP RECONCILIATIONS**

This press release contains certain non-GAAP financial disclosures for: (1) Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR"), (2) PPNR return on average assets (3) return on average tangible common equity, (4) tangible common equity ratio, and (5) tangible book value per common share. The Company uses these 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. In particular, the use of PPNR, return on average tangible common equity, tangible common equity ratio, and tangible book value per common share is prevalent among banking regulators, investors, and analysts. Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) net earnings, (2) return on average assets, (3) return on average equity, (4) equity to assets ratio, and (5) book value per common share.

The tables below present the reconciliations of these GAAP financial measures to the related non-GAAP financial measures:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| **PPNR and PPNR Return** | **December 31,** | **September 30,** | **December 31,** | **December 31,** | **December 31,** |
| **<u>on Average Assets</u>** | **2022** | **2022** | **2021** | **2022** | **2021** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Net earnings | $49509 | $131616 | $136045 | $423613 | $606959 |
| Net interest income | $322939 | $335181 | $300405 | $1290762 | $1103824 |
| Add: Noninterest (loss) income | (18956) | 38619 | 57382 | 74827 | 193927 |
| Less: Noninterest expense | (226832) | (195618) | (176110) | (773521) | (637417) |
| Add: Goodwill impairment | 29000 | - | - | 29000 | - |
| &nbsp;&nbsp;&nbsp; Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") | $106151 | $178182 | $181677 | $621068 | $660334 |
| Average assets | $41151963 | $40841272 | $40358147 | $40481581 | $35518488 |
| Return on average assets (1) | 0.48% | 1.28% | 1.34% | 1.05% | 1.71% |
| PPNR return on average assets (2) | 1.02% | 1.73% | 1.79% | 1.53% | 1.86% |

---

(1) Annualized net earnings divided by average assets.

(2) Annualized PPNR divided by average assets.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| **Return on Average** | **December 31,** | **September 30,** | **December 31,** | **December 31,** | **December 31,** |
| **<u>Tangible Common Equity</u>** | **2022** | **2022** | **2021** | **2022** | **2021** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Net earnings | $49509 | $131616 | $136045 | $423613 | $606959 |
| Less: Preferred stock dividends | (9947) | (9392) | - | (19339) | - |
| &nbsp;&nbsp;&nbsp;Net earnings available to common stockholders | 39562 | 122224 | 136045 | 404274 | 606959 |
| Add: Intangible asset amortization | 2629 | 3649 | 3876 | 13576 | 12734 |
| Add: Goodwill impairment | 29000 | - | - | 29000 | - |
| &nbsp;&nbsp;&nbsp;Adjusted net earnings | $71191 | $125873 | $139921 | $446850 | $619693 |
| Average stockholders' equity | $3898800 | $4011179 | $3954267 | $3853033 | $3808019 |
| Less: Average intangible assets | 1438173 | 1441689 | 1437780 | 1443528 | 1269546 |
| Less: Average preferred stock | 498516 | 498516 | - | 285488 | - |
| &nbsp;&nbsp;&nbsp;Average tangible common equity | $1962111 | $2070974 | $2516487 | $2124017 | $2538473 |
| Return on average equity (1) | 5.04% | 13.02% | 13.65% | 10.99% | 15.94% |
| Return on average tangible common equity (2) | 14.39% | 24.11% | 22.06% | 21.04% | 24.41% |

---

(1) Annualized net earnings divided by average stockholders' equity.

(2) Annualized adjusted net earnings divided by average tangible common equity.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Tangible Common Equity Ratio/** | | | | | |
| **Tangible Book Value Per** | **December 31,** | **September 30,** | **June 30,** | **March 31,** | **December 31,** |
| **<u>Common Share</u>** | **2022** | **2022** | **2022** | **2022** | **2021** |
|  | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** | ***(Dollars in thousands, except per share data)*** |
| Stockholders' equity | $3950531 | $3875945 | $3978403 | $3650595 | $3999630 |
| Less: Preferred stock | 498516 | 498516 | 498516 | - | - |
| &nbsp;&nbsp;&nbsp;Total common equity | 3452015 | 3377429 | 3479887 | 3650595 | 3999630 |
| Less: Intangible assets | 1408117 | 1439746 | 1443395 | 1447044 | 1450693 |
| &nbsp;&nbsp;&nbsp;Tangible common equity | 2043898 | 1937683 | 2036492 | 2203551 | 2548937 |
| Add: Accumulated other comprehensive loss (income) | 790903 | 848214 | 644750 | 376475 | (65968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted tangible common equity | $2834801 | $2785897 | $2681242 | $2580026 | $2482969 |
| Total assets | $41228936 | $41404592 | $40950723 | $39249639 | $40443344 |
| Less: Intangible assets | 1408117 | 1439746 | 1443395 | 1447044 | 1450693 |
| &nbsp;&nbsp;&nbsp;Tangible assets | $39820819 | $39964846 | $39507328 | $37802595 | $38992651 |
| Equity to assets ratio | 9.58% | 9.36% | 9.72% | 9.30% | 9.89% |
| Tangible common equity ratio (1) | 5.13% | 4.85% | 5.15% | 5.83% | 6.54% |
| Tangible common equity ratio, excluding AOCI (2) | 7.12% | 6.97% | 6.79% | 6.82% | 6.37% |
| Book value per common share (3) | $28.71 | $28.07 | $28.93 | $30.52 | $33.45 |
| Tangible book value per common share (4) | $17.00 | $16.11 | $16.93 | $18.42 | $21.31 |
| Tangible book value per common share, excluding AOCI (5) | $23.58 | $23.16 | $22.29 | $21.57 | $20.76 |
| Common shares outstanding | 120222057 | 120314023 | 120288024 | 119601766 | 119584854 |

---

(1) Tangible common equity divided by tangible assets.

(2) Adjusted tangible common equity divided by tangible assets.

(3) Total common equity divided by common shares outstanding.

(4) Tangible common equity divided by common shares outstanding.

(5) Adjusted tangible common equity divided by common shares outstanding.

**CONTACTS**

---

| | |
|:---|:---|
| **Kevin L. Thompson**<br> Executive Vice President, <br> Chief Financial Officer<br> 303.802.8934 | **William J. Black**<br> Executive Vice President,<br> Strategy and Corporate Development<br> 919.597.7466 |

---

## Exhibit 99.2

**Exhibit 99.2**

![](tm234489d1_ex99-2img001.jpg)

THE EVOLUTION OF PACWEST Investor Presentation January 26, 2023

![](tm234489d1_ex99-2img002.jpg)

Fourth Quarter 2022 \| PACW \| p. 2 PacWest Bancorp Overview Corporate overview Headquarters Los Angeles, CA Exchange/Listing NASDAQ: PACW Market capitalization $2.76B (1) Dividend yield 4.36% (2) Branch network 71 branches Financial highlights BALANCE SHEET CAPITAL Assets $41.2B Total RB (3) 13.61% Loans HFI $28.6B CET1 (3) 8.70% Deposits $33.9B Leverage (3) 8.61% NIB/Deposits 33% TCE (4) 5.13% National Lending office Venture Banking office Community Banking office (1) Calculated using common shares outstanding and closing stock price of $22.95 as of 12.31.22 . (2) Dividend yield calculated using closing stock price of $22.95 as of 12.31.22. (3) Preliminary estimate – subject to change. (4) See "Non - GAAP Measurements" on page 16. LOS ANGELES, CA DURHAM, NC CHEVY CHASE, MD CHICAGO, IL DENVER, CO NEW YORK, NY BOSTON, MA AUSTIN, TX CAMPBELL, CA MENLO PARK, CA SAN FRANCISCO, CA SAN DIEGO, CA

![](tm234489d1_ex99-2img003.jpg)

Fourth Quarter 2022 \| PACW \| p. 3 Key Investment Highlights Sharpened Strategic Focus • Strong focus on deposit - focused, r elationship - based community banking • Exiting non - core products and services • Operational efficiency initiatives underway to optimize expense structure Financial Performance • Robust historical return on equity • Strong pre - provision net revenue generation • High dividend yield at 4.36% Strong Risk Management • Consistent, conservative underwriting standards • Balanced exposure to varied industries • Strategic actions help to better position the company in the current environment Franchise Value • High quality deposit franchise with sophisticated treasury management services • Robust product set to support small, middle - market, and venture - backed businesses • Strong profitability across cycles Experienced Management Team • Leadership transition with Paul Taylor, President & CEO, and Kevin Thompson, CFO • Long - tenured, experienced team • Completion of over 30 acquisitions at PacWest

![](tm234489d1_ex99-2img004.jpg)

Fourth Quarter 2022 \| PACW \| p. 4 Recent Leadership Changes Previous Role New Role Paul Taylor President President & CEO Matt Wagner CEO Executive Chairman of the Board John Eggemeyer Chairman of the Board Lead Director Kevin Thompson Appointed new EVP, CFO as of 11.28.22 EVP, CFO

![](tm234489d1_ex99-2img005.jpg)

Fourth Quarter 2022 \| PACW \| p. 5 • Our mission is ONE TEAM working to maximize shareholder returns by exceeding customer expectations • Sharpen our business focus on relationship - based, community banking • Top quartile financial performance targets/goals • Return on average assets : 1.50% • Efficiency ratio: 45% • Nonperforming asset ratio: < 50bps • Top quartile EPS growth • DDA: 40% of total deposits • Build Capital to CET1 10%+ • Best in class customer service • High performance culture to attract, retain, and develop top talent • Maximize franchise value through improved profitability Our ONE TEAM Goals

![](tm234489d1_ex99-2img006.jpg)

Fourth Quarter 2022 \| PACW \| p. 6 • We have initiated a new strategic plan designed to maximize shareholder value by strengthening our community bank focus, exiting non - core products and services, and improving our operational efficiency. • The first steps in this process include: • We sold $1 billion of available - for - sale securities, resulting in a loss on sale of $49 million. Proceeds were used to pay down FHLB borrowings to improve the liquidity and capital position of the Bank going forward. • We recorded goodwill impairment of $29 million related to Civic as part of a strategy to restructure this lending subsidiary. These actions will result in an improvement in the profitability and risk profile of Civic. • We are slowing loan growth to preserve capital and strengthen our balance sheet, including winding down our operations in our Premium Finance and Multi - Family lending groups. • We are working to improve the overall operational efficiency of the Bank. PacWest Bancorp 4Q22 and Full Year Results 4Q22 EPS - $0.33 Full Year 2022 EPS - $3.37 Return on Average Assets 0.48 % Return on Average Assets 1.05% Efficiency Ratio 53% Efficiency Ratio 51% Nonperforming Asset Ratio 38bps Nonperforming Asset Ratio 38bps DDA 33% DDA 33% CET1 8.70% (1) CET1 8.70% (1) (1) Preliminary estimate – subject to change.

![](tm234489d1_ex99-2img007.jpg)

Fourth Quarter 2022 \| PACW \| p. 7 $35.0bn $33.2bn $34.0bn $34.2bn $33.9bn 0.08% 0.07% 0.18% 0.70% 1.37% 4Q21 1Q22 2Q22 3Q22 4Q22 Core and Total Deposits (1)(2) $22.9mm $24.4mm $26.5mm $27.7mm $28.6mm 1.19% 1.12% 1.07% 1.03% 1.02% 4.93% 4.66% 4.65% 5.12% 5.73% 4Q21 1Q22 2Q22 3Q22 4Q22 Loans (3) Balance Sheet Highlights (1) ■ Core Deposits ■ Non - core Deposits (2) ■ Line is quarterly cost of average total deposits (3) ■ Line is TE loan yield ■ Line is ACL as % of loans and leases Commercial RE 13% Multi - family 20% Investor - owned residential 10% Residential mortgage 10% Asset - based 7% Venture capital 2% Other commercial 4% Consumer 2% Construction 16% Lender finance 11% Equity funds 5% Loan Mix Noninterest - bearing demand 33% Interest checking 20% Money market 23% Savings 2% Wholesale non - maturity deposits 8% Retail time deposits 7% Brokered time deposits 7% Deposit Mix

![](tm234489d1_ex99-2img008.jpg)

Fourth Quarter 2022 \| PACW \| p. 8 ($ in millions) Production/ Disbursements Payoffs/ Paydowns Net Difference (3) Rate on Production (1) ($ in millions) Loans Beginning Balance (2) Loans Ending Balance (2) Net Loan Growth (3) 4Q22 3,207$2,187$1,020$7.55% 4Q22 27,660$28,609$949$3Q22 3,436 2,235 1,201 5.92% 3Q22 26,501 27,660 1,159 2Q22 4,687 2,530 2,157 4.61% 2Q22 24,352 26,501 2,149 1Q22 4,164 2,714 1,450 4.31% 1Q22 22,942 24,352 1,410 4Q21 5,290 2,845 2,445 3.89% 4Q21 20,511 22,942 2,431 $3,373 $2,575 $2,815 $1,758 $1,287 $1,917 $1,589 $1,872 $1,678 $1,920 $2,000 $1,449 $1,347 $978 $1,136 $845 $1,265 $1,183 $1,257 $1,051 $5,290 $4,164 $4,687 $3,436 $3,207 $2,845 $2,714 $2,530 $2,235 $2,187 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 4Q21 1Q22 2Q22 3Q22 4Q22 Avg. Rate on Production Millions Production Disbursements Payoffs Paydowns Rate on Production Loan and Lease P roduction of $1.3 billion in 4Q22 (1) The weighted average TE rate on production presents contractual rates and does not include amortized fees. Amortized fees add ed approximately 21 basis points to loan yields in 2022 and 38 basis points in 2021. (2) Net of deferred fees and costs. (3) "Net Loan Growth" equals "Net Difference" plus transfers to loans held for sale, transfers to foreclosed assets, charge - offs, loan sales and loans acquired through acquisitions.

![](tm234489d1_ex99-2img009.jpg)

Fourth Quarter 2022 \| PACW \| p. 9 - $6.0mm $0.0mm $10.0mm $3.0mm $10.0mm 4Q21 1Q22 2Q22 3Q22 4Q22 Provision for Credit Losses (3) $0.2mm $1.2mm ($1.3mm) $2.4mm $2.6mm - 0.01% - 0.02% 0.00% 0.01% 0.02% 0.00% 0.02% - 0.02% 0.03% 0.04% 4Q21 1Q22 2Q22 3Q22 4Q22 Net Charge - offs (Recoveries) (2) Asset Quality $61.2mm $66.5mm $78.5mm $89.7mm $103.8mm $116.1mm $82.1mm $104.3mm $96.7mm $118.3mm 0.27% 0.27% 0.30% 0.32% 0.36% 0.51% 0.34% 0.39% 0.35% 0.41% 4Q21 1Q22 2Q22 3Q22 4Q22 Nonaccrual and Classified Loans and Leases (1) (1) ■ Nonaccrual ■ Classified ■ Nonaccrual as a % of total loans and leases ■ Classified as a % of total loans and lease (2) ■ Net charge - offs/(recoveries) for quarter ■ Trailing 12 months net C/O % ■ Net C/O as a % of average loans land leases (annualized) (3) Excludes $1.5mm provision for HTM securities in 2Q22 (4) ■ ALLL as % of loans and leases ■ ACL as % of loans and leases $273.6mm $272.5mm $283.8mm $284.4mm $291.8mm 1.19% 1.12% 1.07% 1.03% 1.02% 0.87% 0.81% 0.71% 0.68% 0.70% 4Q21 1Q22 2Q22 3Q22 4Q22 Allowance for Credit Losses (4)

![](tm234489d1_ex99-2img010.jpg)

Fourth Quarter 2022 \| PACW \| p. 10 Capital Base 4Q21 1Q22 2Q22 3Q22 4Q22 Common equity tier 1 (1) 8.86% 8.64% 8.24% 8.56% 8.70% Tier 1 risk - based capital (1) 9.32% 9.07% 10.15% 10.46% 10.60% Tier 1 leverage ratio (1) 6.84% 7.11% 8.52% 8.63% 8.61% Tangible common equity/tangible assets (2) 6.54% 5.83% 5.15% 4.85% 5.13% Tangible book value per share (2) $21.31 $18.42 $16.93 $16.11 $17.00 Capital change drivers 8.70% (1) 10.00% 4Q22 Goal CET1 10.60% (1) 12.00% 4Q22 Goal Tier 1 Risk - Based 1 4Q22 amounts are preliminary estimates – subject to change. 2 See "Non - GAAP Measurements" on page 16.

![](tm234489d1_ex99-2img011.jpg)

Fourth Quarter 2022 \| PACW \| p. 11 $13,404 $12,050 $10,171 $10,272 $9,695 $614 $534 $561 $603 $677 4Q21 1Q22 2Q22 3Q22 4Q22 Deposits Loans Venture Banking $2,052 $1,904 $1,894 $1,922 $1,601 $1,707 $1,543 $1,618 $1,398 $1,356 4Q21 1Q22 2Q22 3Q22 4Q22 Deposits Loans Equity Funds Group Venture Banking Business Deposits $11.0bn $13.6bn $14.6bn $15.3bn $15.5bn $14.0bn $12.1bn $12.2bn $11.3bn 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 • Strong presence in vibrant industry focused on deposits • Roughly $11B of Deposits and $2B of Loans • Current market conditions remain challenging given the slowdown in VC investments and lack of capital market activity pressuring deposit levels • Transaction activity further impacted in Q4 by the FTX situation, but VCs still have sizeable dry powder • In 2022, US VC deal value was down 31% vs . 2021, however it was up 39% from 2020 (1) (1) Source: 4Q22 Pitchbook - NVCA Venture Monitor

![](tm234489d1_ex99-2img012.jpg)

Fourth Quarter 2022 \| PACW \| p. 12 2023 - Economic Challenges Ahead • Stubborn Inflation • Rapidly Increasing Interest Rates • Slowing Economy • Quantitative Tightening • Supply Chain Issues

![](tm234489d1_ex99-2img013.jpg)

Fourth Quarter 2022 \| PACW \| p. 13 Appendix

![](tm234489d1_ex99-2img014.jpg)

Fourth Quarter 2022 \| PACW \| p. 14 Condensed Quarterly Income S tatements $ in millions Except per share amounts 4Q22 3Q22 Key Drivers Interest Income $473,023 $410,044 Higher average balances of loans/leases and higher rates Interest Expense 150,084 74,863 Higher market rates and higher average balances on wholesale deposits and borrowings Net Interest Income 322,939 335,181 Provision for Credit Losses 10,000 3,000 Increase due to net loan growth in portfolios with a higher loss rate and a slight increase in special mention and classified loans Noninterest (Loss) Income (18,956) 38,619 $49mm loss on sale of securities Total Operating Expense 197,832 195,618 Increase primarily due to $5.7mm of acquisition, integration and reorganization costs (related to early retirement benefits and severance expense) Goodwill Impairment 29,000 - Impairment at Civic operating subsidiary Earnings Before Income Taxes 67,151 175,192 Income Taxes 17,642 43,566 Effective tax rate of 26.3% vs. 24.9% Net Earnings 49,509 131,616 Preferred Stock Dividends 9,947 9,393 Net Earnings Available to Common Stockholders $39,562 $122,224 EPS $0.33 $1.02

![](tm234489d1_ex99-2img015.jpg)

Fourth Quarter 2022 \| PACW \| p. 15 Condensed Quarterly Balance Sheets $ in millions 4Q22 3Q22 Key Drivers Cash and Cash equivalents $2,240 $2,461 Investment securities 7,147 8,193 Decrease due to sale of $1.0bn of AFS securities in Q4 Loans held for sale 65 16 Loans and leases, net of deferred fees 28,609 27,660 Allowance for loan and lease s losses (201) (189) Loans and leases, net 28,408 27,471 Increase primarily due to increase in Civic portfolio balance Equipment leased to others under operating leases 404 339 Premises and equipment, net 54 51 Foreclosed assets, net 5 3 Goodwill 1,377 1,406 Intangible assets, net 31 34 Other assets 1,497 1,433 Total assets $41,229 $41,405 Noninterest - bearing deposits $11,212 $12,776 Decrease primarily in venture banking deposits Interest - bearing deposits 22,724 21,420 Increased use of wholesale deposits Total deposits 33,936 34,196 Borrowings 1,767 1,853 Subordinated debt 867 863 Accrued interest payable and other liabilities 711 605 Total liabilities 37,278 37,529 Stockholders' equity 3,951 3,876 Total liabilities and stockholders' equity $41,229 $41,405

![](tm234489d1_ex99-2img016.jpg)

Fourth Quarter 2022 \| PACW \| p. 16 ($ in thousands, except per share amounts) December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Tangible Common Equity Ratio & Tangible Book Value Per Common Share Stockholders' equity 3,950,531$3,875,945$3,978,403$3,650,595$3,999,630$ Less: Preferred stock 498,516 498,516 498,516 - - Total common equity 3,452,015 3,377,429$3,479,887$3,650,595$3,999,630$ Less: Intangible assets 1,408,117 1,439,746 1,443,395 1,447,044 1,450,693 Tangible common equity 2,043,898$1,937,683$2,036,492$2,203,551$2,548,937$ Total assets 41,228,936$41,404,592$40,950,723$39,249,639$40,443,344$ Less: Intangible assets 1,408,117 1,439,746 1,443,395 1,447,044 1,450,693 Tangible assets 39,820,819$39,964,846$39,507,328$37,802,595$38,992,651$ Equity to assets ratio 9.58% 9.36% 9.72% 9.30% 9.89% Tangible common equity ratio (1) 5.13% 4.85% 5.15% 5.83% 6.54% Book value per common share 28.71$28.07$28.93$30.52$33.45$ Tangible book value per common share (2) 17.00$16.11$16.93$18.42$21.31$ Common shares outstanding 120,222,057 120,314,023 120,288,024 119,601,766 119,584,854 (1) Tangible common equity divided by tangible assets (2) Tangible common equity divided by common shares outstanding Non - GAAP Measurements 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. These non - GAAP financial measures should not be considered a substitute for financial measures presented in accordance with GAAP and may be different from non - GAAP financial measures used by other companies. The table below presents reconciliations of certain GAAP to non - GAAP financial measures:

![](tm234489d1_ex99-2img017.jpg)

Fourth Quarter 2022 \| PACW \| p. 17 Forward - Looking Statements This communication contains certain forward - looking information about PacWest Bancorp ("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. Statements that are not historical or current facts, including statements about future financial and operational results, exp ect ations, or intentions are forward - looking statements. Such statements often use words such as "anticipates," "targets," "expects," "estimates," intends," "plans," "believes," "continue" and other similar expressions or future or conditional verbs such as " wil l," "may," "might," "should," "would" and "could." Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of the PacWest's management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those expressed in them. Continued deterioration in general business, economic, and political conditions, geopolitical tensions, uncertainty in U.S. fiscal monetary policy, including the interest rate policies of the Federal Reserve Board, and volatility and disruptions in credit and capital markets could lead to a tightening of credit and an increase of credit losses, adversely affect PacWest's revenues and the values of our assets, including goodwill, and liabilit ies , and increase stock price volatility. The risks and impacts of the COVID - 19 pandemic appear to have largely subsided, however, new variants may continue to impact key macro - economic indicators such as unemployment and GDP and may have a material impact on our business, financial position, and results of operations. In addition, PacWest's results could be adversely affected by changes in interest rates, inflation, and unemployment rates, our ability to attract deposits and other sources of funding an d liquidity, deterioration in the credit quality of our loan portfolio or in the value of the collateral securing those loans, det erioration in the value of our investment securities, our ability to successfully execute on our digital and innovation initiatives, the ef fec tiveness of our risk management framework and quantitative models, and legal and regulatory developments. Actual results may differ materially from those set forth or implied in the forward - looking statements due to a variety of factors, including the risk fac tors described in documents filed by PacWest with the U.S. Securities and Exchange Commission. All forward - looking statements in this communication are based on information available at the time the statement is made. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward - looking statements, whether as a result of new information, future events or otherwise, except as required by law .