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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2014
BUSINESS SEGMENTS  
BUSINESS SEGMENTS

NOTE 15—BUSINESS SEGMENTS

        The Company's reportable segments consist of "Banking," "Asset Financing," and "Other." At March 31, 2014, the Other segment consisted of the PacWest Bancorp holding company and other elimination and reconciliation entries.

        The Bank's Asset Financing segment includes the operations of the divisions and subsidiaries that provide asset-based commercial loans and equipment leases. The asset-based lending products are offered primarily through three business units: (1) First Community Financial ("FCF"), a division of the Bank, based in Phoenix, Arizona; (2) BFI Business Finance ("BFI"), a wholly-owned subsidiary of the Bank, based in San Jose, California; and (3) Celtic Capital Corporation ("Celtic"), a wholly-owned subsidiary of the Bank based in Santa Monica, California. The equipment leasing products are offered through Pacific Western Equipment Finance ("EQF"), a division of the Bank based in Midvale, Utah.

        The following tables present information regarding our business segments as of and for the periods indicated (the only segment income statements for which discontinued operations are applicable and reported are those for the three months ended March 31, 2014 and December 31, 2013):

 
   March 31, 2014  
Balance Sheet Data
  Banking   Asset
Financing		   Other   Consolidated
Company		  
 
   (In thousands)
  

Loans and leases, net of unearned income

   $ 3,707,308   $ 453,759   $ —   $ 4,161,067  

Allowance for loan and lease losses

     (74,833 )   (6,347 )   —     (81,180 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans and leases, net

   $ 3,632,475   $ 447,412   $ —   $ 4,079,887  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Goodwill

   $ 183,065   $ 25,678   $ —   $ 208,743  

Core deposit and customer relationship intangibles, net

     14,139     1,745     —     15,884  

Total assets

     5,990,162     517,126     10,565     6,517,853  

Total deposits(1)

     5,415,691     —     (46,283 )   5,369,408  
(1)
The negative balance for total deposits in the "Other" segment represents the elimination of holding company cash held in deposit accounts at the Bank.


 
   March 31, 2013  
Balance Sheet Data
  Banking   Asset
Financing		   Other   Consolidated
Company		  
 
   (In thousands)
  

Loans and leases, net of unearned income

   $ 3,004,525   $ 464,738   $ —   $ 3,469,263  

Allowance for loan and lease losses

     (89,382 )   (5,137 )   —     (94,519 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans and leases, net

   $ 2,915,143   $ 459,601   $ —   $ 3,374,744  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Goodwill

   $ 53,995   $ 25,678   $ —   $ 79,673  

Core deposit and customer relationship intangibles, net

     11,159     2,388     —     13,547  

Total assets

     4,773,916     504,554     21,435     5,299,905  

Total deposits(1)

     4,580,514     —     (27,284 )   4,553,230  
(1)
The negative balance for total deposits in the "Other" segment represents the elimination of holding company cash held in deposit accounts at the Bank.

 
   Three Months Ended March 31, 2014  
Results of Operations
  Banking   Asset
Financing		   Other   Consolidated
Company		  
 
   (In thousands)
  

Interest income

   $ 77,595   $ 10,765   $ —   $ 88,360  

Intersegment interest income (expense)

     222     (222 )   —     —  

Other interest expense

     (1,227 )   (77 )   (1,041 )   (2,345 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net interest income

     76,590     10,466     (1,041 )   86,015  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Negative provision (provision) for credit losses

     826     (182 )   —     644  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Gain on sale of securities

     4,752     —     —     4,752  

FDIC loss sharing expense

     (11,430 )   —     —     (11,430 )

Other noninterest income

     6,897     4,445     27     11,369  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total noninterest income

     219     4,445     27     4,691  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

OREO income, net

     1,861     —     —     1,861  

Intangible asset amortization

     (1,191 )   (173 )   —     (1,364 )

Acquisition and integration costs

     (2,200 )   —     —     (2,200 )

Other noninterest expense

     (40,990 )   (6,573 )   (1,603 )   (49,166 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total noninterest expense

     (42,520 )   (6,746 )   (1,603 )   (50,869 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Earnings (loss) from continuing operations before income taxes

     35,115     7,983     (2,617 )   40,481  

Income tax (expense) benefit

     (12,334 )   (3,331 )   1,089     (14,576 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net earnings (loss) from continuing operations

     22,781     4,652     (1,528 )   25,905  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss from discontinued operations before income taxes

     (1,413 )   —     —     (1,413 )

Income tax benefit

     588     —     —     588  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loss from discontinued operations

     (825 )   —     —     (825 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net earnings (loss)

   $ 21,956   $ 4,652   $ (1,528 ) $ 25,080  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   


 

 
   Three Months Ended December 31, 2013  
Results of Operations
  Banking   Asset
Financing		   Other   Consolidated
Company		  
 
   (In thousands)
  

Interest income

   $ 72,391   $ 11,465   $ —   $ 83,856  

Intersegment interest income (expense)

     241     (241 )   —     —  

Other interest expense

     (1,451 )   (85 )   (1,062 )   (2,598 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net interest income

     71,181     11,139     (1,062 )   81,258  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Negative provision (provision) for credit losses

     2,026     (688 )   —     1,338  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss on sale of securities

     (272 )   —     —     (272 )

FDIC loss sharing expense

     (10,593 )   —     —     (10,593 )

Other noninterest income

     5,933     979     27     6,939  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total noninterest income

     (4,932 )   979     27     (3,926 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accelerated vesting of restricted stock

     (12,420 )   —     —     (12,420 )

OREO income, net

     569     —     —     569  

Intangible asset amortization

     (1,274 )   (156 )   —     (1,430 )

Acquisition and integration costs

     (4,253 )   —     —     (4,253 )

Other noninterest expense

     (41,248 )   (5,720 )   (1,586 )   (48,554 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total noninterest expense

     (58,626 )   (5,876 )   (1,586 )   (66,088 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Earnings (loss) from continuing operations before income taxes

     9,649     5,554     (2,621 )   12,582  

Income tax (expense) benefit

     (7,902 )   (2,287 )   1,054     (9,135 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net earnings (loss) from continuing operations

     1,747     3,267     (1,567 )   3,447  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loss from discontinued operations before income taxes

     (578 )   —     —     (578 )

Income tax benefit

     240     —     —     240  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loss from discontinued operations

     (338 )   —     —     (338 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net earnings (loss)

   $ 1,409   $ 3,267   $ (1,567 ) $ 3,109  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   


 

 
   Three Months Ended March 31, 2013  
Results of Operations
  Banking   Asset
Financing		   Other   Consolidated
Company		  
 
   (In thousands)
  

Interest income

   $ 56,907   $ 12,362   $ —   $ 69,269  

Intersegment interest income (expense)

     471     (471 )   —     —  

Other interest expense

     (2,650 )   (143 )   (783 )   (3,576 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net interest income

     54,728     11,748     (783 )   65,693  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Negative provision (provision) for credit losses

     (2,336 )   (801 )   —     (3,137 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Gain on sale of securities

     409     —     —     409  

FDIC loss sharing expense

     (3,137 )   —     —     (3,137 )

Other noninterest income

     5,001     544     23     5,568  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total noninterest income

     2,273     544     23     2,840  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

OREO income, net

     500     —     —     500  

Intangible asset amortization

     (993 )   (183 )   —     (1,176 )

Acquisition and integration costs

     (692 )   —     —     (692 )

Other noninterest expense

     (35,346 )   (6,053 )   (1,416 )   (42,815 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total noninterest expense

     (36,531 )   (6,236 )   (1,416 )   (44,183 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Earnings (loss) before income taxes

     18,134     5,255     (2,176 )   21,213  

Income tax (expense) benefit

     (6,430 )   (2,199 )   910     (7,719 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net earnings (loss)

   $ 11,704   $ 3,056   $ (1,266 ) $ 13,494  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​