On January 3, 2012, Pacific Western Bank completed the acquisition of Marquette Equipment Finance, or MEF, an equipment leasing company located in Midvale, Utah. Pacific Western Bank acquired all of the capital stock of MEF from Meridian Bank, N.A. for $35 million in cash.

At January 3, 2012, MEF had $162.2 million in gross leases and leases in process outstanding, with no leases on nonaccrual status. In addition, Pacific Western Bank assumed $154.8 million in outstanding debt and other liabilities, which included $129 million payable to MEF's former parent. Pacific Western Bank repaid MEF's intercompany debt on the closing date from its excess liquidity on deposit at the Federal Reserve Bank.

The following table presents the MEF balance sheet presented at fair value as of the acquisition date, January 3, 2012:

Marquette Equipment Finance	January 3, 2012 (Unaudited)

	(In thousands)
Assets Acquired:
Cash and cash equivalents	$	7,092
Direct financing leases		142,989
Leases in process		19,162
Customer relationship intangible		1,700
Other intangible assets		1,420
Goodwill		17,004
Other assets		467

Total assets acquired	$	189,834

Liabilities Assumed:
Borrowings	$	144,516
Accrued interest payable and other liabilities		10,318

Total liabilities assumed	$	154,834

Cash consideration paid	$	35,000

On March 7 and 8, 2012, the Company redeemed $18 million of the subordinated debentures of Trust I and Trust CI and recognized a pre-tax gain of approximately $1.6 million. We redeemed these subordinated debentures to reduce our cost of funds, as these two instruments carried fixed interest rates of 11.0% and 10.6%.

We have evaluated events that have occurred subsequent to December 31, 2011 and have concluded there are no subsequent events that would require recognition in the accompanying consolidated financial statements.