8-K

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 18, 2018

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)

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 (see General Instruction A.2. below):

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

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

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

o 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 o

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. o

Item 2.02 Results of Operations and Financial Condition.*

On January 18, 2018, PacWest Bancorp announced its financial results for the quarter and year ended December 31, 2017.  The press release announcing the financial results for the quarter and year ended December 31, 2017 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, 2017 is furnished as Exhibit 99.2 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits.

Exhibit Number	Description
99.1	Press release dated January 18, 2018 announcing PacWest’s results of operations and financial condition for the quarter and year ended December 31, 2017.
99.2	Earnings Release Presentation

*The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibits, 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.

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release dated January 18, 2018 announcing PacWest’s results of operations and financial condition for the quarter and year ended December 31, 2017.
99.2	Earnings Release Presentation

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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
	By:	/s/ Bart R. Olson
	Name:	Bart R. Olson
	Title:	Executive Vice President
Date: January 18, 2018

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EX-99.1

Exhibit 99.1

PRESS RELEASE

PacWest Bancorp

(Nasdaq: PACW)

Contact:	Matthew P. Wagner	Patrick J. Rusnak
	President and CEO	Executive Vice President and CFO
Phone:	310-887-8520	714-989-4705
Contact:	Donald D. Destino
	Executive Vice President
	Corporate Development and Investor Relations
	Relations
Phone:	310-887-8521

FOR IMMEDIATE RELEASE January 18, 2018

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE FOURTH QUARTER AND FULL YEAR 2017

Fourth Quarter 2017 Highlights

·CU Bancorp (“CUB”) Acquisition Closed October 20, 2017

·Sold $1.5 Billion of Cash Flow Loans

·Net Earnings of $84.0 Million, or $0.66 Per Diluted Share

·New Loan and Lease Production of $1.6 Billion and Annualized Growth Excluding Acquired and Sold Loans of 17%

·Classified Loans and Leases Reduced by 19%

·Tax Benefit of $1.2 Million from Enactment of Tax Cuts and Jobs Act

Full Year 2017 Highlights

·Net Earnings of $357.8 Million, or $2.91 Per Diluted Share

·New Loan and Lease Production of $4.7 Billion and Growth Excluding Acquired and Sold Loans of 7%

·Core Deposits Growth of $3.4 Billion, Including $2.7 Billion from CUB Acquisition

·Tax Equivalent Net Interest Margin of 5.10%

·Classified Loans and Leases Reduced by 32%

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the fourth quarter of 2017 of $84.0 million, or $0.66 per diluted share, compared to net earnings for the third quarter of 2017 of $101.5 million, or $0.84 per diluted share.  Net earnings for the full year 2017 were $357.8 million, or $2.91 per diluted share, compared to net earnings for the full year 2016 of $352.2 million, or $2.90 per diluted share.

1

The decrease in net earnings from the prior quarter was due primarily to higher noninterest expense, higher income tax expense and lower noninterest income offset by higher net interest income and a lower provision for credit losses.  Noninterest expense for the fourth quarter of 2017 was higher mainly due to an increase in acquisition, integration and reorganization costs of $14.6 million related to the CUB acquisition and integration. Income tax expense for the fourth quarter of 2017 was higher as the third quarter of 2017 reflected a $13.6 million reversal of a valuation allowance related to tax credits, while the fourth quarter reflected a $2.0 million increase in the valuation allowance. Noninterest income for the fourth quarter of 2017 declined mainly due to the tax-related decision to sell certain securities resulting in a loss for the quarter of $3.3 million.

Matt Wagner, President and CEO, commented, “Although the fourth quarter included several significant items, the benefits of the CUB acquisition for our future profitability were apparent in our fourth quarter results. Interest income on loans and leases increased 10% over the prior quarter, core deposits increased to 85% of total deposits, and the CUB integration as well as the vast majority of cost save initiatives were achieved in December. We are on track to achieve the remainder of our targeted expense savings during the first quarter of 2018.”

Mr. Wagner continued, “Our organic loan growth of $684 million in the fourth quarter was the strongest of the year. The fourth quarter sale of $1.5 billion in cash flow loans and the exit from the CapitalSource Division origination operations related to general, technology, and healthcare cash flow loans allows us to focus on profitably growing our other businesses.”

Mr. Wagner added, “The strong fourth quarter capped a year of profitable growth and continued our solid operating performance resulting in a 2017 return on assets of 1.58% and return on tangible equity of 15.15%. These outstanding operating results allowed us to return $347 million to our stockholders in 2017 through stock repurchases and dividends, including $100 million of stock repurchases in the fourth quarter.”

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FINANCIAL HIGHLIGHTS

	At or For the Three Months Ended									At or For the Year Ended
	December 31,			September 30,						December 31,
Financial Highlights (1)	2017			2017			Change			2017			2016			Change
	(Dollars in thousands, except per share data)
Net earnings	$	84,037		$	101,466		$	(17,429	)	$	357,818		$	352,166		$	5,652
Diluted earnings per share	$	0.66		$	0.84		$	(0.18	)	$	2.91		$	2.90		$	0.01
Return on average assets	1.34		%	1.82		%	(0.48		)	1.58		%	1.66		%	(0.08		)
Return on average tangible equity (2)	13.75		%	16.85		%	(3.10		)	15.15		%	15.52		%	(0.37		)
Net interest margin (tax equivalent)	4.97		%	5.08		%	(0.11		)	5.10		%	5.40		%	(0.30		)
Efficiency ratio	41.0		%	40.4		%	0.6			40.8		%	39.8		%	1.0
Total assets	$	24,994,876		$	22,242,932		$	2,751,944		$	24,994,876		$	21,869,767		$	3,125,109
Loans and leases held for investment, net of deferred fees	$	16,972,743		$	15,690,517		$	1,282,226		$	16,972,743		$	15,455,954		$	1,516,789
Noninterest-bearing deposits	$	8,508,044		$	6,911,874		$	1,596,170		$	8,508,044		$	6,659,016		$	1,849,028
Core deposits	$	15,937,012		$	13,531,300		$	2,405,712		$	15,937,012		$	12,523,834		$	3,413,178
Total deposits	$	18,865,536		$	16,773,245		$	2,092,291		$	18,865,536		$	15,870,611		$	2,994,925
Noninterest-bearing deposits as percentage of total deposits	45		%	41		%	4			45		%	42		%	3
Core deposits as percentage of total deposits	85		%	81		%	4			85		%	79		%	6
Equity to assets ratio	19.91		%	20.73		%	(0.82		)	19.91		%	20.48		%	(0.57		)
Tangible common equity ratio (2)	10.50		%	12.02		%	(1.52		)	10.50		%	11.54		%	(1.04		)
Book value per share	$	38.65		$	37.96		$	0.69		$	38.65		$	36.93		$	1.72
Tangible book value per share (2)	$	18.24		$	19.84		$	(1.60	)	$	18.24		$	18.71		$	(0.47	)

(1) The operations of CU Bancorp are included from its October 20, 2017 acquisition date.

(2) Non-GAAP measure.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased by $21.3 million to $263.0 million for the fourth quarter of 2017 compared to $241.7 million for the third quarter of 2017 due mainly to higher average loan and lease balances primarily from the CUB acquisition. The loan and lease yield was 5.89% for the fourth quarter of 2017 compared to 6.01% for the third quarter of 2017.  The decrease in the loan and lease yield was principally due to a lower yield on the acquired CUB loans, offset partially by an increase in discount accretion on acquired loans.  Total discount accretion on acquired loans was $6.8 million for the fourth quarter of 2017 (15 basis points on the loan and lease yield) compared to $5.5 million for the third quarter of 2017 (14 basis points on the loan and lease yield). A total discount of $37.0 million was recorded in connection with the acquired CUB loan portfolio, of which $2.9 million was accreted during the fourth quarter. The total remaining acquired loan discount as of December 31, 2017 was $56.9 million.

The tax equivalent NIM was 4.97% for the fourth quarter of 2017 compared to 5.08% for the third quarter of 2017.  The decrease in the NIM was mostly due to the lower yield on the CUB loans and securities and a higher cost of average interest-bearing liabilities, offset partially by the increase in discount accretion on acquired loans.  Total discount accretion on acquired loans contributed 13 basis points to the NIM for the fourth quarter of 2017 and 11 basis points for the third quarter of 2017.

The cost of average total deposits decreased to 0.30% for the fourth quarter of 2017 from 0.31% for the third quarter of 2017 due to the lower cost of the deposits acquired from CUB.

Noninterest Income

Noninterest income decreased by $4.6 million to $26.8 million for the fourth quarter of 2017 compared to $31.4 million for the third quarter of 2017 due mainly to a $4.6 million decrease in the gain on sale of securities. In light of the reduction in the statutory federal income tax rate effective January 1, 2018, we sold approximately $173 million of securities during the fourth quarter of 2017 resulting in a realized loss for the quarter of $3.3 million. The proceeds will be reinvested into higher yielding securities that are expected to recoup the realized loss in approximately one year. In addition, dividends and gains on equity investments decreased by $1.5 million and service charges on deposit accounts increased by $1.1 million primarily due to the increased number of accounts from the CUB acquisition.

4

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

	Three Months Ended
	December 31,			September 30,		Increase
Noninterest Income	2017			2017		(Decrease)
	(In thousands)
Service charges on deposit accounts	$	4,574		$	3,465	$	1,109
Other commissions and fees	10,505			9,944		561
Leased equipment income	8,258			8,332		(74		)
Gain on sale of loans and leases	1,988			2,848		(860		)
(Loss) gain on sale of securities	(3,329		)	1,236		(4,565		)
Other income:
Dividends and realized gains on equity investments	342			1,845		(1,503		)
Warrant income	831			731		100
Other	3,626			2,981		645
Total noninterest income	$	26,795		$	31,382	$	(4,587	)

Noninterest Expense

Noninterest expense increased by $24.3 million to $142.9 million for the fourth quarter of 2017 compared to $118.5 million for the third quarter of 2017 due mostly to an increase in acquisition, integration and reorganization costs of $14.6 million related to the CUB acquisition and integration.  Almost all operating expense categories were higher quarter over quarter due mainly to the CUB acquisition. Compensation expense also includes $2.9 million for separation costs in connection with exiting the origination operations related to general, technology, and healthcare cash flow loans. Intangible asset amortization increased $2.0 million as a result of the CUB acquisition partially offset by scheduled reductions in amortization for previous acquisitions. The intangible asset amortization for 2018 is expected to be approximately $24 million. During the fourth quarter of 2017, a foreclosed property that represented approximately 90% of the total foreclosed property balance was sold for a nominal gain. This property was subject to a valuation write-down of $2.1 million in the third quarter of 2017.

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

	Three Months Ended
	December 31,			September 30,		Increase
Noninterest Expense	2017			2017		(Decrease)
	(In thousands)
Compensation	$	71,986		$	64,413	$	7,573
Occupancy	12,715			12,729		(14		)
Data processing	6,764			6,459		305
Other professional services	5,786			4,213		1,573
Insurance and assessments	5,384			4,702		682
Intangible asset amortization	5,062			3,049		2,013
Leased equipment depreciation	5,048			4,862		186
Foreclosed assets (income) expense, net	(475		)	2,191		(2,666		)
Acquisition, integration and reorganization costs	16,085			1,450		14,635
Loan expense	3,140			3,421		(281		)
Other	11,373			11,053		320
Total noninterest expense	$	142,868		$	118,542	$	24,326

5

Income Taxes

The overall effective income tax rate was 40.2% for the fourth quarter of 2017 and 27.2% for the third quarter of 2017.  The effective tax rate for the fourth quarter of 2017 was higher mainly due to the fourth quarter tax provision including a $2.0 million increase in the foreign tax credit valuation allowance due to the sale of certain foreign loans, whereas the prior quarter included a $13.6 million reversal of a valuation allowance related to foreign tax credits which were deemed more likely than not to be utilized before they expire. The fourth quarter tax provision also included $2.4 million of income tax expense related to non-deductible merger costs and other adjustments offset by a $1.2 million benefit from remeasuring the deferred federal tax assets and liabilities as a result of the Tax Cuts and Jobs Act. This adjustment to deferred federal tax liabilities is management’s best estimate based on the information available as of this earnings release and is subject to change as final tax calculations are completed in conjunction with the filing of the Form 10-K. The effective tax rate for the full year 2017 was 35.5%. While the analysis on the impact of the Tax Cuts and Jobs Act is still ongoing at this time, we expect the 2018 effective tax rate to be in the range of 27% to 29%.

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Total loans and leases held for investment, net of deferred fees, increased by $1.3 billion in the fourth quarter of 2017 to $17.0 billion at December 31, 2017.  The net increase was driven mainly by the acquisition of CUB loans of $2.1 billion, fourth quarter new production of $1.6 billion, and disbursements of $724 million, partially offset by loan sales of $1.0 billion, payoffs of $729 million, paydowns of $813 million, and transfers to loans held for sale of $481 million.  For the year ended December 31, 2017, loans and leases held for investment, net of deferred fees, increased by $1.5 billion. Excluding the effect of the acquired CUB loans and the two portfolio sales in 2017, the annualized loan growth rate for the fourth quarter of 2017 was 17% and the growth rate for the full year 2017 was 7%.

6

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

	Three Months Ended						Year Ended
Loans and Leases	December 31,			September 30,			December 31,
Held for Investment Roll Forward (1)	2017			2017			2017
	(Dollars in thousands)
Balance, beginning of period	$	15,690,517		$	15,543,457		$	15,455,954
New production	1,556,257			1,002,887			4,685,763
Existing loans and leases:
Payoffs	(728,628		)	(903,395		)	(3,801,592		)
Paydowns	(812,726		)	(637,674		)	(2,769,309		)
Disbursements	723,914			722,777			3,203,796
Sales (2)	(1,026,660		)	(31,528		)	(1,140,625		)
Transfers to foreclosed assets	—			—			(580		)
Charge-offs	(24,721		)	(6,007		)	(80,296		)
Transfers to loans held for sale	(481,100		)	—			(656,258		)
Loans acquired through CUB acquisition	2,075,890			—			2,075,890
Balance, end of period	$	16,972,743		$	15,690,517		$	16,972,743
Weighted average rate on new production (3)	4.95		%	5.04		%	4.96		%

(1)Includes direct financing leases but excludes equipment leased to others under operating leases.

(2)Sales for the three months ended December 31, 2017 exclude loans held for sale of $481.1 million at December 31, 2017. Sales for the three months ended September 30, 2017 exclude sales of loans that were transferred to loans held for sale of $175.2 million at June 30, 2017.

(3)The weighted average rate on new production presents contractual rates and does not include amortized fees. Amortized fees added approximately 30 basis points to loan yields in 2017.

Cash Flow Loan Sale

During the fourth quarter of 2017, the Company sold $1.5 billion of cash flow loans, of which none were on nonaccrual and $4.7 million were classified, and exited its CapitalSource Division origination operations related to general, technology, and healthcare cash flow loans.  These actions were taken to lower the Company’s credit risk profile and improve its funding mix by allowing the majority of our wholesale deposits to run off. As of December 31, 2017, $1.0 billion of the loans sold had settled while $481 million were classified as held for sale. As of January 17, 2018, 99% of the year-end loans held for sale balance was settled.

The impact of the loan sale and decision to exit the above-mentioned origination operations affected various components of our statement of earnings as follows:

	Three Months Ended
	December 31,
	2017
	(In thousands)
Gain on sale of loans	$	1,988
Negative provision for credit losses	14,132
Other commissions and fees	(1,155		)
Other income	(113		)
Compensation expense	(2,854		)
Other expense	(586		)
Total increase in pre-tax earnings	$	11,412

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

	December 31,		September 30,		June 30,		December 31,
Loan and Lease Portfolio	2017		2017		2017		2016
	(In thousands)
Real estate mortgage:
Commercial	$	5,385,724	$	4,338,933	$	4,418,463	$	4,396,696
Residential	2,466,894		1,850,324		1,719,269		1,314,036
Total real estate mortgage	7,852,618		6,189,257		6,137,732		5,710,732
Real estate construction and land:
Commercial	769,075		680,950		691,828		581,246
Residential	822,154		568,273		473,282		384,001
Total real estate construction and land	1,591,229		1,249,223		1,165,110		965,247
Total real estate	9,443,847		7,438,480		7,302,842		6,675,979
Commercial:
Asset-based	3,011,770		2,577,470		2,392,203		2,611,796
Venture capital	2,122,735		1,959,489		2,001,427		1,987,900
Cash flow	1,327,595		2,734,454		2,834,966		3,112,890
Equipment finance	656,995		594,473		613,550		691,967
Total commercial	7,119,095		7,865,886		7,842,146		8,404,553
Consumer	409,801		386,151		398,469		375,422
Total loans and leases held for investment, net of deferred fees (1)	$	16,972,743	$	15,690,517	$	15,543,457	$	15,455,954
Total unfunded loan commitments	$	6,234,061	$	5,037,084	$	4,926,743	$	4,166,703

(1) Excludes loans held for sale carried at lower of cost or fair value at December 31, 2017 and June 30, 2017.

Included in total loans as of December 31, 2017 were $2.0 billion acquired from CUB, of which $1.3 billion were real estate mortgage loans, $518 million were commercial loans, and $210 million were real estate construction and land loans. In addition, the total unfunded loan commitments as of December 31, 2017 included $914 million associated with loans acquired from CUB.

Deposits and Client Investment Funds

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

	December 31,			September 30,			June 30,			December 31,
Deposit Category	2017			2017			2017			2016
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	8,508,044		$	6,911,874		$	6,701,039		$	6,659,016
Interest checking deposits	2,226,885			1,957,485			1,762,016			1,448,394
Money market deposits	4,511,730			3,967,224			4,033,471			3,705,385
Savings deposits	690,353			694,717			721,048			711,039
Total core deposits	15,937,012			13,531,300			13,217,574			12,523,834
Non-core non-maturity deposits	863,202			1,118,694			1,329,324			1,174,487
Total non-maturity deposits	16,800,214			14,649,994			14,546,898			13,698,321
Time deposits $250,000 and under	1,709,980			1,770,439			1,940,872			1,758,434
Time deposits over $250,000	355,342			352,812			387,207			413,856
Total time deposits	2,065,322			2,123,251			2,328,079			2,172,290
Total deposits	$	18,865,536		$	16,773,245		$	16,874,977		$	15,870,611
Noninterest-bearing demand deposits as percentage of total deposits	45		%	41		%	40		%	42		%
Core deposits as percentage of total deposits	85		%	81		%	78		%	79		%

8

At December 31, 2017, core deposits totaled $15.9 billion, or 85% of total deposits, including $8.5 billion of noninterest-bearing demand deposits, or 45% of total deposits. Core deposits obtained in the CUB acquisition totaled $2.7 billion.

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at December 31, 2017 were $2.1 billion, of which $1.7 billion was managed by S1AM.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

A provision for credit losses of $6.4 million was recorded in the fourth quarter of 2017 compared to $15.1 million in the third quarter of 2017. The fourth quarter provision consisted of $6.5 million for non-purchased credit impaired (“Non-PCI”) loans and leases and a $0.1 million negative provision for PCI loans; this compares to a third quarter provision of $15.5 million and a $0.4 million negative provision, respectively.  The lower provision for the fourth quarter of 2017 was due mainly to releasing $14.1 million in general reserves relating to the cash flow loan sale. The allowance for Non-PCI credit losses to Non-PCI loans and leases held for investment coverage ratio declined to 0.95% at December 31, 2017 from 1.11% at September 30, 2017. The lower coverage ratio was principally due to the purchase accounting for the CUB acquired loan portfolio, which was not subject to the allowance for credit losses at the time of acquisition.

The following tables show roll forwards of the allowance for credit losses for the periods indicated:

	Three Months Ended December 31, 2017
	Non-PCI
Allowance for Credit	Loans and			Unfunded		Total			PCI
Losses Rollforward	Leases			Commitments		Non-PCI			Loans			Total
	(In thousands)
Beginning balance	$	152,770		$	20,809	$	173,579		$	6,836		$	180,415
Charge-offs	(24,335		)	—		(24,335		)	(386		)	(24,721		)
Recoveries	1,577			—		1,577			88			1,665
Net charge-offs	(22,758		)	—		(22,758		)	(298		)	(23,056		)
Provision	3,000			3,500		6,500			(94		)	6,406
Fair value of acquired reserve for unfunded commitments	—			4,326		4,326			—			4,326
Ending balance	$	133,012		$	28,635	$	161,647		$	6,444		$	168,091

	Three Months Ended September 30, 2017
	Non-PCI
Allowance for Credit	Loans and			Unfunded		Total			PCI
Losses Rollforward	Leases			Commitments		Non-PCI			Loans			Total
	(In thousands)
Beginning balance	$	138,879		$	20,263	$	159,142		$	7,079		$	166,221
Charge-offs	(5,928		)	—		(5,928		)	(79		)	(6,007		)
Recoveries	4,865			—		4,865			217			5,082
Net charge-offs	(1,063		)	—		(1,063		)	138			(925		)
Provision	14,954			546		15,500			(381		)	15,119
Ending balance	$	152,770		$	20,809	$	173,579		$	6,836		$	180,415

9

Gross charge-offs for the fourth quarter of 2017 included $20.1 million for venture capital loans while gross charge-offs for the third quarter of 2017 included $3.4 million for venture capital loans.

Mr. Wagner remarked, “We have taken action to remedy the unacceptably high level of venture capital credit losses during 2017, including adjustments to delegated lending authorities and portfolio management. In addition, significant progress has been made on our initiative to grow the lower-risk capital call line segment of the venture capital loan portfolio.”

The annualized ratio of total net charge-offs to total average loans was 0.52% for the quarter ended December 31, 2017 and 0.43% for the year ended December 31, 2017.

CREDIT QUALITY

Despite the elevated charge-offs on venture capital loans, the Company’s credit quality metrics showed significant improvement during the fourth quarter of 2017.

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

	December 31,			September 30,			Increase
Non-PCI Credit Quality Metrics	2017			2017			(Decrease)
	(Dollars in thousands)
Nonaccrual loans and leases held for investment (1)(2)	$	155,784		$	157,697		$	(1,913	)
Classified loans and leases held for investment (1)(3)	278,405			344,777			(66,372		)
Performing troubled debt restructured loans held for investment	56,838			56,552			286
Allowance for credit losses	161,647			173,579			(11,932		)
Provision for credit losses (for the quarter)	6,500			15,500			(9,000		)
Net charge-offs (for the quarter)	22,758			1,063			21,695
Net charge-offs to average loans and leases (for the quarter)	0.52		%	0.03		%
Allowance for credit losses to loans and leases held for investment	0.95		%	1.11		%
Allowance for credit losses to nonaccrual loans and leases held for investment	103.8		%	110.1		%
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.92		%	1.00		%
Nonperforming assets to loans and leases held for investment and foreclosed assets	0.93		%	1.08		%
Classified loans and leases held for investment to loans and leases held for investment	1.64		%	2.20		%

(1)Excludes loans held for sale carried at lower of cost or fair value at December 31, 2017.

(2)Nonaccrual loans include guaranteed amounts of $11.6 million and $9.1 million at December 31, 2017 and September 30, 2017.

(3)Classified loans include guaranteed amounts of $11.6 million and $9.1 million at December 31, 2017 and September 30, 2017.

10

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

	Non-PCI Nonaccrual Loans and Leases								Non-PCI Accruing and
	December 31, 2017				September 30, 2017				30-89 Days Past Due
			% of				% of		December 31,		September 30,
			Loan				Loan		2017		2017
	Amount		Category		Amount		Category		Amount		Amount
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	65,563	1.2	%	$	63,096	1.5	%	$	27,234	$	1,446
Residential	3,350		0.1	%	3,186		0.2	%	6,629		282
Total real estate mortgage	68,913		0.9	%	66,282		1.1	%	33,863		1,728
Real estate construction and land:
Commercial	—		0.0	%	—		0.0	%	—		—
Residential	—		0.0	%	—		0.0	%	2,081		—
Total real estate construction and land	—		0.0	%	—		0.0	%	2,081		—
Commercial:
Asset-based	3,174		0.1	%	3,977		0.2	%	1,512		—
Venture capital	29,424		1.4	%	22,686		1.2	%	5,959		2,720
Cash flow	23,315		1.8	%	33,514		1.2	%	924		72
Equipment finance	30,938		4.7	%	30,942		5.2	%	344		—
Total commercial	86,851		1.2	%	91,119		1.2	%	8,739		2,792
Consumer	20		0.0	%	296		0.1	%	562		286
Total held for investment (1)	$	155,784	0.9	%	$	157,697	1.0	%	$	45,245	$	4,806

(1) Excludes loans held for sale carried at lower of cost or fair value at December 31, 2017.

The majority of the loans representing the increase in Non-PCI accruing and 30-89 days past due loans have subsequently been brought current, renewed or are subject to guarantees.

The following table presents nonperforming assets as of the dates indicated:

	December 31,			September 30,			Increase
Nonperforming Assets	2017			2017			(Decrease)
	(Dollars in thousands)
Nonaccrual Non-PCI loans and leases held for investment (1)	$	155,784		$	157,697		$	(1,913	)
Nonaccrual PCI loans held for investment	1,761			1,761			—
Total nonaccrual loans and leases	157,545			159,458			(1,913		)
Foreclosed assets, net	1,329			11,630			(10,301		)
Total nonperforming assets	$	158,874		$	171,088		$	(12,214	)
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.92		%	1.01		%
Nonperforming assets to loans and leases held for investment and foreclosed assets	0.93		%	1.09		%

(1) Excludes loans held for sale carried at lower of cost or fair value at December 31, 2017.

11

STOCK REPURCHASE PROGRAM

During the fourth quarter of 2017, the Company amended its existing stock repurchase program to reduce the authorized repurchase amount from $400 million to $150 million and extend the program maturity to December 31, 2018. The Company expects that, subject to market conditions and other factors, the current $150 million share repurchase authorization will be completed during the first quarter of 2018. The Company anticipates an additional repurchase program will be authorized by the Board of Directors in 2018. During the fourth quarter of 2017, we repurchased 2,081,227 shares at an average cost of $47.89 and a total cost of $99.7 million.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with approximately $25 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 76 full-service branches located throughout the state of California and one branch in Durham, North Carolina. We provide commercial banking services, including real estate, construction, and commercial loans, and comprehensive deposit and treasury management services to small and medium-sized businesses.  We offer additional products and services through our CapitalSource and Square 1 Bank divisions. Our CapitalSource Division provides asset-based, equipment, real estate and security cash flow loans and treasury management services to established middle market businesses on a national basis.  Our Square 1 Bank Division offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovation hubs across the United States.  For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

12

FORWARD LOOKING STATEMENTS

This release contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results and metrics and including statements about our expectations regarding our future effective tax rate. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. These risks and uncertainties include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; the impact of changes in interest rates or levels of market activity, especially on our loan and investment portfolios; deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business (including the levels of IPOs and M&A activities); changes in credit quality and the effect of credit quality on our provision for loan and lease losses and allowance for loan and leases losses; our ability to attract deposits and other sources of funding or liquidity; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; the Company’s ability to complete future acquisitions and to successfully integrate such acquired entities or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected timeframes or at all; the impact of the Tax Cuts and Jobs Act on our future effective tax rate and our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including the Annual Report on Form 10-K for the year ended December 31, 2016, and particularly the discussion of risk factors within that document.

All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (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.

13

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

	December 31,			September 30,			December 31,
	2017			2017			2016
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	233,215		$	147,579		$	337,965
Interest-earning deposits in financial institutions	165,222			122,439			81,705
Total cash and cash equivalents	398,437			270,018			419,670
Securities available-for-sale, at estimated fair value	3,774,431			3,532,230			3,223,830
Federal Home Loan Bank stock, at cost	20,790			17,250			21,870
Total investment securities	3,795,221			3,549,480			3,245,700
Loans held for sale	481,100			—			—
Non-PCI loans and leases	16,974,171			15,693,776			15,412,092
PCI loans	58,050			62,509			108,445
Total gross loans and leases held for investment	17,032,221			15,756,285			15,520,537
Deferred fees, net	(59,478		)	(65,768		)	(64,583		)
Total loans and leases held for investment, net of deferred fees	16,972,743			15,690,517			15,455,954
Allowance for loan and lease losses	(139,456		)	(159,606		)	(157,238		)
Total loans and leases held for investment, net	16,833,287			15,530,911			15,298,716
Equipment leased to others under operating leases	284,631			233,866			229,905
Premises and equipment, net	31,852			28,910			38,594
Foreclosed assets, net	1,329			11,630			12,976
Deferred tax asset, net	—			65,321			94,112
Goodwill	2,548,670			2,173,949			2,173,949
Core deposit and customer relationship intangibles, net	79,626			27,188			36,366
Other assets	540,723			351,659			319,779
Total assets	$	24,994,876		$	22,242,932		$	21,869,767
LIABILITIES:
Noninterest-bearing deposits	$	8,508,044		$	6,911,874		$	6,659,016
Interest-bearing deposits	10,357,492			9,861,371			9,211,595
Total deposits	18,865,536			16,773,245			15,870,611
Borrowings	467,342			250,399			905,812
Subordinated debentures	462,437			448,126			440,744
Accrued interest payable and other liabilities	221,963			160,494			173,545
Total liabilities	20,017,278			17,632,264			17,390,712
STOCKHOLDERS’ EQUITY (1)	4,977,598			4,610,668			4,479,055
Total liabilities and stockholders’ equity	$	24,994,876		$	22,242,932		$	21,869,767
Book value per share	$	38.65		$	37.96		$	36.93
Tangible book value per share (2)	$	18.24		$	19.84		$	18.71
Shares outstanding	128,782,878			121,449,794			121,283,669

(1) Includes net unrealized gain on securities available-for-sale, net	$	31,171	$	33,613	$	5,982
(2) Non-GAAP measure.

14

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2017			2017			2016			2017			2016
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	258,309		$	235,666		$	238,223		$	952,771		$	924,294
Investment securities	25,712			24,762			23,403			98,202			90,557
Deposits in financial institutions	576			538			147			1,543			1,061
Total interest income	284,597			260,966			261,773			1,052,516			1,015,912
Interest expense:
Deposits	14,041			13,071			7,369			45,694			31,512
Borrowings	1,366			188			631			3,638			2,259
Subordinated debentures	6,234			6,017			5,468			23,613			20,850
Total interest expense	21,641			19,276			13,468			72,945			54,621
Net interest income	262,956			241,690			248,305			979,571			961,291
Provision for credit losses	6,406			15,119			23,215			57,752			65,729
Net interest income after provision for credit losses	256,550			226,571			225,090			921,819			895,562
Noninterest income:
Service charges on deposit accounts	4,574			3,465			3,557			15,307			14,534
Other commissions and fees	10,505			9,944			12,036			41,422			47,126
Leased equipment income	8,258			8,332			8,614			37,700			33,919
Gain on sale of loans and leases	1,988			2,848			119			6,197			909
(Loss) gain on sale of securities	(3,329		)	1,236			515			(541		)	9,485
FDIC loss sharing expense, net	—			—			—			—			(8,917		)
Other income	4,799			5,557			4,054			28,488			15,419
Total noninterest income	26,795			31,382			28,895			128,573			112,475
Noninterest expense:
Compensation	71,986			64,413			66,013			266,567			251,913
Occupancy	12,715			12,729			12,076			48,863			48,911
Data processing	6,764			6,459			6,574			26,575			24,356
Other professional services	5,786			4,213			4,880			17,353			16,478
Insurance and assessments	5,384			4,702			4,124			19,733			18,364
Intangible asset amortization	5,062			3,049			3,176			14,240			16,517
Leased equipment depreciation	5,048			4,862			5,291			20,767			20,899
Foreclosed assets (income) expense, net	(475		)	2,191			2,693			1,702			1,881
Acquisition, integration and reorganization costs	16,085			1,450			—			19,735			200
Loan expense	3,140			3,421			3,140			13,832			9,371
Other expense	11,373			11,053			10,655			46,294			41,211
Total noninterest expense	142,868			118,542			118,622			495,661			450,101
Earnings before income taxes	140,477			139,411			135,363			554,731			557,936
Income tax expense	(56,440		)	(37,945		)	(49,716		)	(196,913		)	(205,770		)
Net earnings	$	84,037		$	101,466		$	85,647		$	357,818		$	352,166
Basic and diluted earnings per share	$	0.66		$	0.84		$	0.71		$	2.91		$	2.90

15

PACWEST BANCORP AND SUBSIDIARIES

NET EARNINGS PER SHARE CALCULATIONS

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2017			2017			2016			2017			2016
	(In thousands, except per share data)
Basic Earnings Per Share:
Net earnings	$	84,037		$	101,466		$	85,647		$	357,818		$	352,166
Less: earnings allocated to unvested restricted stock (1)	(951		)	(1,149		)	(1,004		)	(4,184		)	(3,988		)
Net earnings allocated to common shares	$	83,086		$	100,317		$	84,643		$	353,634		$	348,178
Weighted-average basic shares and unvested restricted stock outstanding	127,971			121,447			121,464			123,060			121,670
Less: weighted-average unvested restricted stock outstanding	(1,440		)	(1,394		)	(1,450		)	(1,447		)	(1,431		)
Weighted-average basic shares outstanding	126,531			120,053			120,014			121,613			120,239
Basic earnings per share	$	0.66		$	0.84		$	0.71		$	2.91		$	2.90
Diluted Earnings Per Share:
Net earnings allocated to common shares	$	83,086		$	100,317		$	84,643		$	353,634		$	348,178
Weighted-average basic shares outstanding	126,531			120,053			120,014			121,613			120,239
Diluted earnings per share	$	0.66		$	0.84		$	0.71		$	2.91		$	2.90

(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.

16

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	December 31, 2017						September 30, 2017						December 31, 2016
			Interest		Average				Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Cost		Balance		Expense		Cost		Balance		Expense		Cost
	(Dollars in thousands)
Assets:
PCI loans	$	52,782	$	2,536	19.06	%	$	60,126	$	3,308	21.83	%	$	104,234	$	17,481	66.72	%
Non-PCI loans and leases	17,374,091		256,050		5.85	%	15,514,904		232,510		5.95	%	14,904,034		220,742		5.89	%
Total loans and leases (1)	17,426,873		258,586		5.89	%	15,575,030		235,818		6.01	%	15,008,268		238,223		6.31	%
Investment securities (2)	3,807,928		30,709		3.20	%	3,510,956		29,495		3.33	%	3,293,003		28,229		3.41	%
Deposits in financial institutions	179,379		576		1.27	%	171,455		538		1.24	%	111,918		147		0.52	%
Total interest-earning assets	21,414,180		289,871		5.37	%	19,257,441		265,851		5.48	%	18,413,189		266,599		5.76	%
Other assets	3,375,656						2,880,433						3,014,761
Total assets	$	24,789,836					$	22,137,874					$	21,427,950
Liabilities and Stockholders’ Equity:
Interest checking	$	2,340,166	2,891		0.49	%	$	2,146,125	2,960		0.55	%	$	1,449,346	951		0.26	%
Money market	5,415,630		7,214		0.53	%	4,914,803		6,307		0.51	%	4,740,944		3,672		0.31	%
Savings	702,023		279		0.16	%	707,367		289		0.16	%	751,817		331		0.18	%
Time	2,120,749		3,657		0.68	%	2,256,259		3,515		0.62	%	2,384,973		2,415		0.40	%
Total interest-bearing deposits	10,578,568		14,041		0.53	%	10,024,554		13,071		0.52	%	9,327,080		7,369		0.31	%
Borrowings	445,106		1,366		1.22	%	61,071		188		1.22	%	505,567		631		0.50	%
Subordinated debentures	458,269		6,234		5.40	%	447,012		6,017		5.34	%	440,907		5,468		4.93	%
Total interest-bearing liabilities	11,481,943		21,641		0.75	%	10,532,637		19,276		0.73	%	10,273,554		13,468		0.52	%
Noninterest-bearing demand deposits	8,190,134						6,858,816						6,496,221
Other liabilities	197,261						153,932						156,227
Total liabilities	19,869,338						17,545,385						16,926,002
Stockholders’ equity	4,920,498						4,592,489						4,501,948
Total liabilities and stockholders’ equity	$	24,789,836					$	22,137,874					$	21,427,950
Net interest income (3)			$	268,230					$	246,575					$	253,131
Net interest spread (3)					4.62	%					4.75	%					5.24	%
Net interest margin (3)					4.97	%					5.08	%					5.47	%
Total deposits (4)	$	18,768,702	$	14,041	0.30	%	$	16,883,370	$	13,071	0.31	%	$	15,823,301	$	7,369	0.19	%
Funding sources (5)	$	19,672,077	$	21,641	0.44	%	$	17,391,453	$	19,276	0.44	%	$	16,769,775	$	13,468	0.32	%

(1) Starting with the third quarter of 2017, includes tax-equivalent adjustments related to tax-exempt interest on loans.

(2) Includes tax-equivalent adjustments of $5.0 million, $4.7 million, and $4.8 million for the three months ended December 31, 2017, September 30, 2017, and December 31, 2016 related to tax-exempt income on municipal securities.  The federal statutory tax-rate utilized was 35% for the periods.

(3) Tax equivalent.

(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 deposits divided by average total deposits.

(5) Funding sources is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated as annualized total interest expense divided by average funding sources.

17

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	December 31,			September 30,			June 30,			March 31,			December 31,
	2017			2017			2017			2017			2016
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	233,215		$	147,579		$	180,330		$	184,608		$	337,965
Interest-earning deposits in financial institutions	165,222			122,439			107,150			111,892			81,705
Total cash and cash equivalents	398,437			270,018			287,480			296,500			419,670
Securities available-for-sale	3,774,431			3,532,230			3,474,560			3,336,992			3,223,830
Federal Home Loan Bank stock	20,790			17,250			22,059			17,901			21,870
Total investment securities	3,795,221			3,549,480			3,496,619			3,354,893			3,245,700
Loans held for sale	481,100			—			175,158			—			—
Non-PCI loans and leases	16,974,171			15,693,776			15,536,735			15,526,518			15,412,092
PCI loans	58,050			62,509			72,445			96,353			108,445
Total gross loans and leases held for investment	17,032,221			15,756,285			15,609,180			15,622,871			15,520,537
Deferred fees, net	(59,478		)	(65,768		)	(65,723		)	(66,182		)	(64,583		)
Total loans and leases held for investment, net of deferred fees	16,972,743			15,690,517			15,543,457			15,556,689			15,455,954
Allowance for loan and lease losses	(139,456		)	(159,606		)	(145,958		)	(161,307		)	(157,238		)
Total loans and leases held for investment, net	16,833,287			15,530,911			15,397,499			15,395,382			15,298,716
Equipment leased to others under operating leases	284,631			233,866			203,212			224,580			229,905
Premises and equipment, net	31,852			28,910			29,108			28,908			38,594
Foreclosed assets, net	1,329			11,630			13,278			12,842			12,976
Deferred tax asset, net	—			65,321			70,354			88,765			94,112
Goodwill	2,548,670			2,173,949			2,173,949			2,173,949			2,173,949
Core deposit and customer relationship intangibles, net	79,626			27,188			30,237			33,302			36,366
Other assets	540,723			351,659			369,983			318,133			319,779
Total assets	$	24,994,876		$	22,242,932		$	22,246,877		$	21,927,254		$	21,869,767
LIABILITIES:
Noninterest-bearing deposits	$	8,508,044		$	6,911,874		$	6,701,039		$	6,789,808		$	6,659,016
Interest-bearing deposits	10,357,492			9,861,371			10,173,938			9,541,200			9,211,595
Total deposits	18,865,536			16,773,245			16,874,977			16,331,008			15,870,611
Borrowings	467,342			250,399			217,454			460,609			905,812
Subordinated debentures	462,437			448,126			445,743			442,516			440,744
Accrued interest payable and other liabilities	221,963			160,494			148,798			185,015			173,545
Total liabilities	20,017,278			17,632,264			17,686,972			17,419,148			17,390,712
STOCKHOLDERS’ EQUITY (1)	4,977,598			4,610,668			4,559,905			4,508,106			4,479,055
Total liabilities and stockholders’ equity	$	24,994,876		$	22,242,932		$	22,246,877		$	21,927,254		$	21,869,767
Book value per share	$	38.65		$	37.96		$	37.55		$	37.13		$	36.93
Tangible book value per share (2)	$	18.24		$	19.84		$	19.40		$	18.95		$	18.71
Shares outstanding	128,782,878			121,449,794			121,448,321			121,408,133			121,283,669

(1) Includes net unrealized gain on securities available-for-sale, net	$	31,171	$	33,613	$	29,729	$	12,718	$	5,982
(2) Non-GAAP measure.

18

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2017			2017			2017			2017			2016
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	258,309		$	235,666		$	234,618		$	224,178		$	238,223
Investment securities	25,712			24,762			24,689			23,039			23,403
Deposits in financial institutions	576			538			237			192			147
Total interest income	284,597			260,966			259,544			247,409			261,773
Interest expense:
Deposits	14,041			13,071			10,205			8,377			7,369
Borrowings	1,366			188			1,066			1,018			631
Subordinated debentures	6,234			6,017			5,800			5,562			5,468
Total interest expense	21,641			19,276			17,071			14,957			13,468
Net interest income	262,956			241,690			242,473			232,452			248,305
Provision for credit losses	6,406			15,119			11,499			24,728			23,215
Net interest income after provision for credit losses	256,550			226,571			230,974			207,724			225,090
Noninterest income:
Service charges on deposit accounts	4,574			3,465			3,510			3,758			3,557
Other commissions and fees	10,505			9,944			10,583			10,390			12,036
Leased equipment income	8,258			8,332			11,635			9,475			8,614
Gain on sale of loans and leases	1,988			2,848			649			712			119
(Loss) gain on sale of securities	(3,329		)	1,236			1,651			(99		)	515
Other income	4,799			5,557			7,254			10,878			4,054
Total noninterest income	26,795			31,382			35,282			35,114			28,895
Noninterest expense:
Compensation	71,986			64,413			65,288			64,880			66,013
Occupancy	12,715			12,729			11,811			11,608			12,076
Data processing	6,764			6,459			6,337			7,015			6,574
Other professional services	5,786			4,213			3,976			3,378			4,880
Insurance and assessments	5,384			4,702			4,856			4,791			4,124
Intangible asset amortization	5,062			3,049			3,065			3,064			3,176
Leased equipment depreciation	5,048			4,862			5,232			5,625			5,291
Foreclosed assets (income) expense, net	(475		)	2,191			(157		)	143			2,693
Acquisition, integration and reorganization costs	16,085			1,450			1,700			500			—
Loan expense	3,140			3,421			3,884			3,387			3,140
Other expense	11,373			11,053			11,715			12,153			10,655
Total noninterest expense	142,868			118,542			117,707			116,544			118,622
Earnings before income taxes	140,477			139,411			148,549			126,294			135,363
Income tax expense	(56,440		)	(37,945		)	(54,902		)	(47,626		)	(49,716		)
Net earnings	$	84,037		$	101,466		$	93,647		$	78,668		$	85,647
Basic and diluted earnings per share	$	0.66		$	0.84		$	0.77		$	0.65		$	0.71

19

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2017			2017			2017			2017			2016
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)	1.34		%	1.82		%	1.71		%	1.47		%	1.59		%
Return on average equity (1)	6.78		%	8.77		%	8.26		%	7.08		%	7.57		%
Return on average tangible equity (1)(2)	13.75		%	16.85		%	16.06		%	13.90		%	14.88		%
Yield on average loans and leases (1)(3)	5.89		%	6.01		%	6.07		%	5.94		%	6.31		%
Yield on average interest-earning assets (1)(4)	5.37		%	5.48		%	5.57		%	5.48		%	5.76		%
Cost of average total deposits (1)	0.30		%	0.31		%	0.25		%	0.21		%	0.19		%
Cost of average time deposits (1)	0.68		%	0.62		%	0.55		%	0.45		%	0.40		%
Cost of average interest-bearing liabilities (1)	0.75		%	0.73		%	0.65		%	0.59		%	0.52		%
Cost of average funding sources (1)	0.44		%	0.44		%	0.40		%	0.36		%	0.32		%
Net interest spread (1)(4)	4.62		%	4.75		%	4.92		%	4.89		%	5.24		%
Net interest margin (1)(4)	4.97		%	5.08		%	5.21		%	5.16		%	5.47		%
Efficiency ratio	41.0		%	40.4		%	40.3		%	41.4		%	40.1		%
Noninterest expense as a percentage of average assets (1)	2.29		%	2.12		%	2.15		%	2.18		%	2.20		%
Average Balances:
Loans and leases, net of deferred fees	$	17,426,873		$	15,575,030		$	15,497,921		$	15,297,044		$	15,008,268
Interest-earning assets	21,414,180			19,257,441			19,030,793			18,655,243			18,413,189
Total assets	24,789,836			22,137,874			21,936,602			21,645,534			21,427,950
Noninterest-bearing deposits	8,190,134			6,858,816			6,646,349			6,595,346			6,496,221
Interest-bearing deposits	10,578,568			10,024,554			9,692,352			9,330,235			9,327,080
Total deposits	18,768,702			16,883,370			16,338,701			15,925,581			15,823,301
Borrowings and subordinated debentures	903,375			508,083			901,530			1,038,424			946,474
Interest-bearing liabilities	11,481,943			10,532,637			10,593,882			10,368,659			10,273,554
Funding sources	19,672,077			17,391,453			17,240,231			16,964,005			16,769,775
Stockholders’ equity	4,920,498			4,592,489			4,545,276			4,503,675			4,501,948

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent starting with the third quarter of 2017.

(4) Tax equivalent.

20

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2017			2017			2017			2017			2016
	(Dollars in thousands)
Non-PCI Credit Quality:
Allowance for credit losses to loans and leases held for investment	0.95		%	1.11		%	1.02		%	1.08		%	1.05		%
Allowance for credit losses to nonaccrual loans and leases held for investment	103.8		%	110.1		%	92.2		%	96.9		%	94.5		%
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.92		%	1.00		%	1.11		%	1.11		%	1.11		%
Nonperforming assets to loans and leases held for investment and foreclosed assets	0.93		%	1.08		%	1.20		%	1.20		%	1.19		%
Nonperforming assets to total assets	0.63		%	0.76		%	0.84		%	0.85		%	0.84		%
Trailing twelve month net charge-offs to average loans and leases held for investment	0.40		%	0.35		%	0.37		%	0.24		%	0.15		%
PacWest Bancorp Consolidated Capital:
Tier 1 leverage ratio (1)	10.66		%	12.02		%	11.90		%	11.87		%	11.91		%
Common equity tier 1 capital ratio (1)	10.92		%	12.52		%	12.28		%	12.31		%	12.31		%
Tier 1 capital ratio (1)	10.92		%	12.52		%	12.28		%	12.31		%	12.31		%
Total capital ratio (1)	13.77		%	15.74		%	15.42		%	15.56		%	15.56		%
Risk-weighted assets (1)	$	21,637,503		$	19,086,798		$	19,084,823		$	18,732,723		$	18,568,622
Equity to assets ratio	19.91		%	20.73		%	20.50		%	20.56		%	20.48		%
Tangible common equity ratio (2)	10.50		%	12.02		%	11.75		%	11.67		%	11.54		%
Book value per share	$	38.65		$	37.96		$	37.55		$	37.13		$	36.93
Tangible book value per share (2)	$	18.24		$	19.84		$	19.40		$	18.95		$	18.71
Pacific Western Bank Capital:
Tier 1 leverage ratio (1)	11.75		%	11.46		%	11.41		%	11.36		%	11.40		%
Common equity tier 1 capital ratio (1)	11.92		%	11.95		%	11.79		%	11.79		%	11.78		%
Tier 1 capital ratio (1)	11.92		%	11.95		%	11.79		%	11.79		%	11.78		%
Total capital ratio (1)	12.70		%	12.89		%	12.66		%	12.74		%	12.72		%

(1) Capital information for December 31, 2017 is preliminary.

(2) Non-GAAP measure.

21

GAAP TO NON-GAAP RECONCILIATIONS

This press release contains certain non-GAAP financial disclosures for: (1) return on average tangible equity, (2) tangible common equity ratio, and (3) tangible book value per 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 return on average tangible equity, tangible common equity ratio, and tangible book value per 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) return on average equity, (2) equity to assets ratio, and (3) book value per share.

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

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
Return on Average Tangible Equity	2017			2017			2016			2017			2016
	(Dollars in thousands)
Net earnings	$	84,037		$	101,466		$	85,647		$	357,818		$	352,166
Average stockholders’ equity	$	4,920,498		$	4,592,489		$	4,501,948		$	4,641,495		$	4,488,862
Less: Average intangible assets	2,495,876			2,202,922			2,212,042			2,279,010			2,219,756
Average tangible common equity	$	2,424,622		$	2,389,567		$	2,289,906		$	2,362,485		$	2,269,106
Return on average equity (1)	6.78		%	8.77		%	7.57		%	7.71		%	7.85		%
Return on average tangible equity (2)	13.75		%	16.85		%	14.88		%	15.15		%	15.52		%

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

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

Tangible Common Equity Ratio/	December 31,			September 30,			June 30,			March 31,			December 31,
Tangible Book Value Per Share	2017			2017			2017			2017			2016
	(Dollars in thousands, except per share data)
Stockholders’ equity	$	4,977,598		$	4,610,668		$	4,559,905		$	4,508,106		$	4,479,055
Less: Intangible assets	2,628,296			2,201,137			2,204,186			2,207,251			2,210,315
Tangible common equity	$	2,349,302		$	2,409,531		$	2,355,719		$	2,300,855		$	2,268,740
Total assets	$	24,994,876		$	22,242,932		$	22,246,877		$	21,927,254		$	21,869,767
Less: Intangible assets	2,628,296			2,201,137			2,204,186			2,207,251			2,210,315
Tangible assets	$	22,366,580		$	20,041,795		$	20,042,691		$	19,720,003		$	19,659,452
Equity to assets ratio	19.91		%	20.73		%	20.50		%	20.56		%	20.48		%
Tangible common equity ratio (1)	10.50		%	12.02		%	11.75		%	11.67		%	11.54		%
Book value per share	$	38.65		$	37.96		$	37.55		$	37.13		$	36.93
Tangible book value per share (2)	$	18.24		$	19.84		$	19.40		$	18.95		$	18.71
Shares outstanding	128,782,878			121,449,794			121,448,321			121,408,133			121,283,669

(1) Tangible common equity divided by tangible assets.

(2) Tangible common equity divided by shares outstanding.

22

EX-99.2

Exhibit 99.2

2017 Fourth Quarter Results Earnings Release Presentation January 18, 2018

This communication contains certain “forward-looking statements” about PacWest Bancorp (the “Company”) and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our expectations regarding our allowance for loan and lease losses, credit trends, deposit growth, profitability, capital management, interest rate risk, estimated impacts of the Tax Cuts and Jobs Act and operating expenses. All statements contained in this communication that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such forward-looking statements for a variety of factors, including without limitation: higher than anticipated delinquencies, charge-offs and loan and lease losses; reduced demand for our services due to strategic or regulatory reasons; changes in economic or competitive market conditions could negatively impact investment or lending opportunities or product pricing and services; credit quality deterioration or pronounced and sustained reduction in market values or other economic factors which adversely affect our borrowers’ ability to repay loans and leases and/or require an increased provision for loan and lease losses; compression of the net interest margin due to changes in our interest rate environment, loan products, spreads on newly originated loans and leases and/or asset mix; the impact of asset/liability repricing risk and liquidity risk on net interest margin and the value of investments; higher than anticipated increases in operating expenses; increased costs to manage and sell foreclosed assets; the need to retain capital for strategic or regulatory reasons; the financial performance of the Company; increased litigation; increased asset workout or loan servicing expenses; higher compensation costs and professional fees to retain and/or incent employees; our ability to complete future acquisitions, and to successfully integrate such acquired entities or achieve expected benefits, synergies and/or operating efficiencies within expected timeframes or at all; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business and business strategies; and other risk factors described in documents filed by the Company with the U.S. Securities and Exchange Commission (“SEC”). All forward-looking statements included in this communication are based on information available at the time of the communication. Pro forma, projected and estimated numbers are used for illustrative purposes only and are not forecasts, and actual results may differ materially. We are under no obligation to (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. Forward-Looking Statements

Fourth Quarter Highlights 4 Investment Securities 11 Loans and Leases 13 Credit Quality 17 Deposits 21 Controlled Expenses 24 Non-GAAP Measurements 27 Presentation Index

Fourth Quarter Highlights

Fourth Quarter Highlights Robust Earnings Net earnings of $84.0 million EPS of $0.66 ROAA and ROATE of 1.34% and 13.75% (1) Q4 includes $16.1 million of acquisition and integration costs related to CUB acquisition Industry Leading Net Interest Margin Tax equivalent NIM of 4.97% Yield on average loans and leases of 5.89% Low Efficiency Ratio Efficiency ratio of 41.0% Average branch size of $245 million in deposits Noninterest expense to average assets of 2.29% Profitable Deposit Base Cost of average total deposits of 30 bps $2.4 billion net core deposit growth, primarily from CUB acquisition Core deposits now represent 85% of total deposits Loan and Lease Production and Credit Quality Loan and lease production of $1.6 billion Organic loan and lease growth of 17% annualized NPAs to total loans and leases and foreclosed assets, excluding PCI loans, of 0.93% compared to 1.08% at September 30, 2017 Classified loans and leases to total loans and leases of 1.64% compared to 2.20% at September 30, 2017 Strong Capital Levels Tangible common equity ratio of 10.50% (1) CET1 and total capital ratios of 10.92% and 13.77% Tangible book value per share of $18.24 (1) See “Non-GAAP Measurements” slide on page 27.

Financial Highlights See “Non-GAAP Measurements” slide on page 27. ? ($ in millions, except per share amounts) 4Q17 3Q17 Q / Q Total Assets 24,995 $ 22,243 $ 12% Loans and Leases Held for Investment, net of deferred fees 16,973 $ 15,691 $ 8% Total Deposits 18,866 $ 16,773 $ 12% Core Deposits 15,937 $ 13,531 $ 18% Net Earnings 84.0 $ 101.5 $ -17% Earnings Per Share 0.66 $ 0.84 $ -21% Return on Average Assets ("ROAA") 1.34% 1.82% -0.48 Return on Average Tangible Equity ("ROATE") (1) 13.75% 16.85% -3.10 Tangible Common Equity Ratio (1) 10.50% 12.02% -1.52 Tangible Book Value Per Share (1) 18.24 $ 19.84 $ -8% Net Interest Margin 4.97% 5.08% -0.11 Efficiency Ratio 41.0% 40.4% 0.6

Solid Earnings Track Record ($ in millions, except Diluted EPS) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Net Earnings 90.5 $ 82.2 $ 93.9 $ 85.6 $ 78.7 $ 93.6 $ 101.5 $ 84.0 $ Diluted EPS 0.74 $ 0.68 $ 0.77 $ 0.71 $ 0.65 $ 0.77 $ 0.84 $ 0.66 $ $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Diluted EPS Millions Net Earnings Diluted EPS

Source: SNL Financial. Peer data through 3Q17. Solid Capital Position – 4Q17 (Preliminary) 11.38% 11.87% 12.12% 12.19% 11.54% 11.67% 11.75% 12.02% 10.50% 8.54% 8.77% 8.68% 8.79% 8.63% 8.60% 8.75% 8.67% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 TCE / TA PACW Median Banks $15-$25B 11.67% 11.51% 11.92% 12.13% 11.91% 11.87% 11.90% 12.02% 10.66% 9.16% 8.99% 9.06% 9.11% 9.21% 9.30% 9.27% 9.37% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 T1 Leverage PACW Median Banks $15-$25B 15.65% 15.96% 16.08% 16.18% 15.56% 15.56% 15.42% 15.56% 13.77% 13.20% 13.16% 13.09% 12.99% 13.22% 12.95% 13.17% 13.00% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Total Capital PACW Median Banks $15-$25B 12.58% 12.63% 12.72% 12.83% 12.31% 12.31% 12.28% 12.52% 10.92% 10.68% 10.64% 10.67% 10.48% 11.26% 11.15% 11.00% 10.67% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 CET1 PACW Median Banks $15-$25B

4Q17 Loan Sales/Loans Held For Sale Deemphasized cash flow lending; in 4Q17 made decision to sell cash flow loans totaling $1.5 billion and exit the CapitalSource Division origination operations related to general, technology and healthcare cash flow loans. Approximately $1.0 billion sold and settled prior to year-end Approximately $481 million sold of which 99% settled as of January 17, 2018 No nonaccrual loans sold $4.7 million of sold loans were classified Retained general, technology and healthcare cash flow portfolio contains approximately $39 million of classified loans at December 31, 2017 Impact to 4Q17 results and financial statements $481.1 million classified as LHFS on balance sheet at December 31, 2017 Gain on sale of loans of $2.0 million and other related costs of $1.3 million recorded to noninterest income Gross charge-offs in 4Q include $2.2 million to record LHFS at lower of cost or market (“LOCOM”) Decreased provision for loan losses of $14.1 million due in part to release of general reserves on loans transferred to LHFS in excess of LOCOM charge-offs Compensation expense of $2.9 million related to exiting certain lending operations $0.6 million noninterest expense charge related to sold unfunded commitments Increase in DTA valuation allowance of $2.0 million related to loans sold which generated foreign-sourced income utilized for foreign tax credits Healthcare Cash Flow, $411mm General Cash Flow, $356mm Technology Cash Flow, $705mm Loans Sold by Loan Type Total = $1.5 billion Healthcare, $29mm General, $20mm Technology, $200mm Retained General, Technology & Healthcare Cash Flow Loans Total = $249 million

Impacts in 4th quarter 2017: Net DTAs reduced from $65.3 million at 9/30/17 to a net DTL of $2.3 million at 12/31/17 driven by: Approximately $100 million of bonus tax depreciation for leased assets placed in service in Q4 which resulted in increased deferred tax liabilities of approximately $40 million Accelerated deduction of a portion of the 2017 bonuses deemed fixed and determinable (to be paid in 2018) which resulted in decreased deferred tax assets of approximately $15 million Re-measured federal deferred tax assets and liabilities at newly enacted federal tax rate of 21% which resulted in a $1.2 million tax benefit Sold approximately $173 million of securities to realize the loss of $3.3 million at the higher 35% tax rate; reinvested into higher yielding securities; recapture of loss expected in approximately one year Expected impacts going forward: Federal statutory corporate income tax rate reduced from 35% to 21% Allows for immediate capital expensing of certain qualified property Tax-equivalent net interest margin will be reduced by approximately 5 bps beginning in 2018 Performance based executive compensation now subject to $1 million deduction cap and definition of “covered person” expanded for senior executive officer compensation greater than $1 million Approximately 35% to 40% of our FDIC insurance assessments will no longer be deductible; deduction fully phased out at $50 billion in assets Analysis ongoing currently estimates that our 2018 effective tax rate will range from 27% to 29% Continue to analyze the new tax law and monitor guidance as issued Impacts of the Tax Cuts and Jobs Act

Investment Securities

3.73% overall portfolio tax equivalent yield (2) (1) Fair value (2) Yield is for 4Q17 Investment Portfolio Average Life and Effective Duration Municipal Securities Composition Diversified Investment Portfolio 6.1 7.0 6.7 6.8 7.0 4.8 5.7 5.7 5.9 6.0 3 4 5 6 7 8 4Q16 1Q17 2Q17 3Q17 4Q17 Years Average Life Effective Duration S&P Ratings % Total Issue Type % Total AAA 12% G.O. Limited 6% AA 79% G.O. Unlimited 45% A 3% Revenue 49% Not rated 6% 100% 100% Municipal Securities Collateralized Loan Obligations, $7.0mm, 0% SBA Securities, $160.3mm, 4% Agency Residential MBS, $246.3mm, 7% Agency Residential CMOs, $275.7mm, 7% Agency Commercial MBS, $1,164.0mm, 31% Private CMOs, $126.0mm, 3% Municipal Securities, $1,680.1mm, 45% Other, $115.1mm, 3% $3.8 Billion Total Portfolio (1)

Loans and Leases

Diversified Loan and Lease Portfolio Lender Finance & Timeshare Equipment Finance Healthcare Asset - Based Other Asset - Based Security Cash Flow Technology Cash Flow General and Other Cash Flow Healthcare Cash Flow Commercial Real Estate Income Producing Residential Construction and Land Healthcare Real Estate Small Business Owner - Occupied Residential Venture Capital Other As of December 31, 2017 ($ in millions) $ Mix $ Mix Lender Finance & Timeshare 1,610 $ 9% 1,667 $ 11% Equipment Finance 657 4% 692 4% Healthcare Asset-Based 93 1% 181 1% Other Asset-Based 1,308 8% 764 5% Total Asset-Based 3,668 22% 3,304 21% Security Cash Flow 573 3% 440 3% Technology Cash Flow 200 2% 1,048 7% General and Other Cash Flow 183 1% 564 4% Healthcare Cash Flow 29 0% 799 5% Total Cash Flow 985 6% 2,851 19% Commercial Real Estate 3,990 24% 2,987 19% Income Producing Residential 2,245 13% 1,169 8% Construction and Land 1,591 9% 965 6% Healthcare Real Estate 844 5% 955 6% Small Business 552 3% 454 3% Owner-Occupied Residential 222 1% 145 1% Total Real Estate 9,444 55% 6,675 43% Venture Capital 2,123 13% 1,988 13% Other 753 4% 638 4% Total Loans HFI (1) 16,973 $ 100% 15,456 $ 100% (1) Net of deferred fees and costs 12/31/2017 12/31/2016

Diversified Loan and Lease Portfolio Healthcare, $841mm, 9% SBA, $552mm, 6% Hospitality, $695mm, 7% Retail, $629mm, 7% Multifamily, $2,085mm, 22% Office, $912mm, 10% Owner - occupied, $1,314mm, 14% Construction, $1,591mm, 16% Other, $822mm, 9% Real Estate ($9.4B) Technology, $200mm, 20% Healthcare, $29mm, 3% Security, $573mm, 58% General, $20mm, 2% Municipal, $67mm, 7% SBA, $96mm, 10% Cash Flow ($1.0B) Lender Finance & Timeshare, $1,610mm, 44% Equipment Finance, $657mm, 18% Healthcare, $93mm, 2% Other, $1,308mm, 36% Asset - Based ($3.7B) Later Stage, $263mm, 12% Expansion Stage, $891mm, 45% Equity Funds Group, $471mm, 22% Early Stage, $443mm, 21% Venture Capital ($2.1B)

Loan and Lease Production of $1.6 Billion in 4Q17 The weighted average rate on new production presents contractual rates and does not include amortized fees. Amortized fees added approximately 30 basis points to loan yields in 2017. $1,273 $1,049 $1,078 $1,003 $1,556 $765 $1,057 $700 $722 $724 $709 $1,213 $956 $903 $729 $582 $732 $587 $638 $813 $2,038 $2,106 $1,778 $1,725 $2,280 $1,291 $1,945 $1,543 $1,541 $1,542 4.0% 4.5% 5.0% 5.5% 6.0% $0 $500 $1,000 $1,500 $2,000 $2,500 Q4 Q1 Q2 Q3 Q4 2016 2017 Avg. Rate on Production Millions Production Disbursements Payoffs Paydowns Avg Production/Disbursement Avg Payoffs/Paydowns Rate on Production ($ in millions) Production/ Disbursement Payoffs/ Paydowns Net Change Rate on Production (1) 4Q17 2,280 $ 1,542 $ 738 $ 4.95% 3Q17 1,725 1,541 184 5.04% 2Q17 1,778 1,543 235 4.93% 1Q17 2,106 1,945 161 4.91% 4Q16 2,038 1,291 747 4.83%

Credit Quality

Classified loans and leases are those with a credit risk rating of substandard or doubtful Allowance for credit losses includes allowance for loan and lease losses and reserve for unfunded commitments Non-PCI Credit Quality ($ in thousands) 4Q17 3Q17 2Q17 1Q17 4Q16 Nonaccrual Loans and Leases HFI $ 155,784 157,697 172,576 173,030 170,599 As a % of Loans and Leases HFI % 0.92% 1.00% 1.11% 1.11% 1.11% Nonperforming Assets (NPAs) $ 157,113 169,327 185,854 185,872 183,575 As a % of Loans and Leases & Foreclosed Assets % 0.93% 1.08% 1.20% 1.20% 1.19% Classified Loans and Leases HFI (1) $ 278,405 344,777 339,977 424,399 409,645 As a % of Loans and Leases HFI % 1.64% 2.20% 2.19% 2.73% 2.66% Credit Loss Provision $ 6,500 15,500 12,500 24,500 21,000 As a % of Average Loans and Leases (annualized) % 0.15% 0.40% 0.33% 0.64% 0.56% Trailing Twelve Months Net Charge-offs $ 62,957 53,991 56,802 36,287 21,990 As a % of Average Loans and Leases % 0.40% 0.35% 0.37% 0.24% 0.15% Allowance for Credit Losses (ACL) (2) $ 161,647 173,579 159,142 167,589 161,278 As a % of Loans and Leases HFI % 0.95% 1.11% 1.02% 1.08% 1.05% ACL / Nonaccrual Loans and Leases HFI % 103.77% 110.08% 92.22% 96.86% 94.54%

Key Credit Trends – Non-PCI Loans HFI 1.05% 1.08% 1.02% 1.11% 0.95% 4Q16 1Q17 2Q17 3Q17 4Q17 ACL / Loans and Leases 2.66% 2.73% 2.19% 2.20% 1.64% 4Q16 1Q17 2Q17 3Q17 4Q17 Classified Loans and Leases/ Average Loans and Leases 1.11% 1.11% 1.11% 1.00% 0.92% 4Q16 1Q17 2Q17 3Q17 4Q17 Nonaccrual Loans and Leases / Loans and Leases 1.19% 1.20% 1.20% 1.08% 0.93% 4Q16 1Q17 2Q17 3Q17 4Q17 NPAs / Loans and Leases and Foreclosed Assets

At December 31, 2017, the Company’s ten largest Non-PCI loan relationships on nonaccrual status had an aggregate book balance of $120 million and represented 77% of total Non-PCI nonaccrual loans and leases. Non-PCI Nonaccrual Loan and Lease Detail Excludes loans held for sale at lower of cost or fair value at December 31, 2017. The majority of the loans representing the increase in Non-PCI accruing and 30-89 days past due loans have subsequently been brought current, renewed or are subject to guarantees. % of Loan % of Loan 12/31/2017 9/30/2017 ($ in thousands) Balance Category Balance Category Balance Balance Real estate mortgage: Commercial 65,563 $ 1.2% 63,096 $ 1.5% 27,234 $ 1,446 $ Residential 3,350 0.1% 3,186 0.2% 6,629 282 Total real estate mortgage 68,913 0.9% 66,282 1.1% 33,863 1,728 Real estate construction and land: Commercial - 0.0% - 0.0% - - Residential - 0.0% - 0.0% 2,081 - Total R.E. construction and land - 0.0% - 0.0% 2,081 - Commercial: Cash flow 23,315 1.8% 33,514 1.2% 924 72 Equipment finance 30,938 4.7% 30,942 5.2% 1,512 - Venture capital 29,424 1.4% 22,686 1.2% 5,959 2,720 Asset-based 3,174 0.1% 3,977 0.2% 344 - Total commercial 86,851 1.2% 91,119 1.2% 8,739 2,792 Consumer 20 0.0% 296 0.1% 562 286 Total (1)(2) 155,784 $ 0.9% 157,697 $ 1.0% 45,245 $ 4,806 $ 12/31/2017 Nonaccrual Loans and Leases 9/30/2017 Accruing and 30 -89 Days Past Due

Deposits

Does not include $2.1 billion and $1.3 billion of client investment funds held at December 31, 2017 and December 31, 2016, respectively. Deposit Detail Core: 85% Core: 79% Noninterest - bearing demand deposits Interest checking deposits Money market deposits Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 December 31, 2017 Noninterest - bearing demand deposits Interest checking deposits Money market deposits Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 December 31, 2016 ($ in millions) Deposit Category Amount % of Total Amount % of Total Noninterest-bearing demand deposits 8,508 $ 45% 6,659 $ 42% Interest checking deposits 2,227 12% 1,448 9% Money market deposits 4,512 24% 3,706 23% Savings deposits 690 4% 711 5% Total core deposits 15,937 85% 12,524 79% Non-core non-maturity deposits 863 4% 1,175 7% Total non-maturity deposits 16,800 89% 13,699 86% Time deposits $250,000 and under 1,710 9% 1,758 11% Time deposits over $250,000 355 2% 414 3% Total time deposits 2,065 11% 2,172 14% Total deposits (1) 18,865 $ 100% 15,871 $ 100% December 31, 2017 December 31, 2016

Deposit Portfolio Includes brokered deposits of $682 million with a weighted average maturity of 4 months and a weighted average cost of 1.20%. $15.9 $16.3 $16.9 $16.8 $18.9 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.0 5.0 10.0 15.0 20.0 25.0 4Q16 1Q17 2Q17 3Q17 4Q17 Cost Balance ($ in Billions) Core Deposits Non-Core Deposits Cost of Interest-Bearing Deposits Cost of Total Deposits ($ in millions) Time Deposits Time Deposits Total $250,000 Over Time Time Deposit Maturities and Under $250,000 Deposits Due in three months or less 632 $ 182 $ 814 $ Due in over three months through six months 516 101 617 Due in over six months through twelve months 446 54 500 Due in over 12 months through 24 months 77 10 87 Due in over 24 months 39 8 47 Total 1,710 $ (1) 355 $ 2,065 $ December 31, 2017

Controlled Expenses

Source: SNL Financial. Peer data through 3Q17. Efficiency Ratio Trend 38.0% 39.6% 39.3% 38.5% 40.6% 40.1% 40.1% 41.4% 40.3% 40.4% 41.0% 63.4% 65.9% 63.2% 64.3% 62.8% 61.8% 63.0% 62.9% 61.3% 60.3% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 PACW Efficiency Ratio Median Efficiency Ratio Banks $15-$25B

Focus and Execution Drive Efficiency 55.0% 54.0% 56.4% 60.7% 41.6% 38.5% 39.8% 40.8% 2010 2011 2012 2013 2014 2015 2016 2017 Efficiency Ratio $57 $60 $70 $72 $147 $193 $203 $245 2010 2011 2012 2013 2014 2015 2016 2017 Average Branch Size ($ - M)

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: Non-GAAP Measurements ($ in thousands, except per share amounts) December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 Tangible Common Equity Ratio & Tangible Book Value Per Share Stockholders' equity 4,977,598 $ 4,610,668 $ 4,559,905 $ 4,508,106 $ 4,479,055 $ Less: Intangible assets 2,628,296 2,201,137 2,204,186 2,207,251 2,210,315 Tangible common equity 2,349,302 $ 2,409,531 $ 2,355,719 $ 2,300,855 $ 2,268,740 $ Total assets 24,994,876 $ 22,242,932 $ 22,246,877 $ 21,927,254 $ 21,869,767 $ Less: Intangible assets 2,628,296 2,201,137 2,204,186 2,207,251 2,210,315 Tangible assets 22,366,580 $ 20,041,795 $ 20,042,691 $ 19,720,003 $ 19,659,452 $ Tangible common equity ratio (1) 10.50% 12.02% 11.75% 11.67% 11.54% Tangible book value per share (2) 18.24 $ 19.84 $ 19.40 $ 18.95 $ 18.71 $ Shares outstanding 128,782,878 121,449,794 121,448,321 121,408,133 121,283,669 Return on Average Tangible Equity Net earnings 84,037 $ 101,466 $ 93,647 $ 78,668 $ 85,647 $ Average stockholders' equity 4,920,498 $ 4,592,489 $ 4,545,276 $ 4,503,675 $ 4,501,948 $ Less: Average intangible assets 2,495,876 2,202,922 2,205,814 2,209,112 2,212,042 Average tangible common equity 2,424,622 $ 2,389,567 $ 2,339,462 $ 2,294,563 $ 2,289,906 $ Return on average tangible equity (3) 13.75% 16.85% 16.06% 13.90% 14.88% (1) Tangible common equity divided by tangible assets (2) Tangible common equity divided by shares outstanding (3) Annualized net earnings divided by average tangible common equity. PacWest Bancorp Consolidated