ACQUISITIONS

3 Months Ended

Mar. 31, 2012

ACQUISITIONS

ACQUISITIONS

NOTE 2—ACQUISITIONS

        On January 3, 2012, Pacific Western Bank completed the acquisition of Marquette Equipment Finance (later renamed Pacific Western Equipment Finance, or PWE Finance), an equipment leasing company located in Midvale, Utah. Pacific Western Bank acquired all of the capital stock of PWE Finance for $35 million in cash. The acquisition diversified the Company's loan portfolio, expanded the Company's product lines, and deployed excess liquidity into higher yielding assets.

        At January 3, 2012, PWE Finance 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 $128.7 million payable to PWE Finance's former parent. Pacific Western Bank repaid PWE Finance's intercompany debt on the closing date from its excess liquidity on deposit at the Federal Reserve Bank.

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

Pacific Western Equipment Finance	January 3, 2012
	(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		17,003
Other assets		467
Total assets acquired	$	189,833
Liabilities Assumed:
Borrowings from parent	$	128,677
Other borrowings		15,839
Accrued interest payable and other liabilities		10,317
Total liabilities assumed	$	154,833
Cash consideration paid	$	35,000

        See Note 14, Subsequent Events, for information on acquisitions after March 31, 2012.