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) April 21, 2020

PacWest Bancorp

(Exact name of registrant as specified in its charter)

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

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

(Address of principal executive offices and zip code)

(310) 887-8500

(Registrant’s telephone number, including area code)

N/A

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

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, par value $0.01 per share	PACW	The Nasdaq Stock Market, LLC
(Title of Each Class)	(Trading Symbol)	(Name of Exchange on Which Registered)

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

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

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

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

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

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

Emerging growth company  ¨

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

Item 2.02 Results of Operations and Financial Condition.*

On April 21, 2020, PacWest Bancorp (the “Company”) announced its results of operations and financial condition for the three months ended March 31, 2020. The press release announcing the financial results for the three months ended March 31, 2020 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation regarding the Company’s financial results for the three months ended March 31, 2020 is furnished as Exhibit 99.2 and incorporated herein by reference.

Item 8.01.  Other Events.

Stock Repurchase Program

On April 21, 2020, the Company announced that stock repurchases under its current stock repurchase program, authorized by the Board of Directors on February 12, 2020, were suspended indefinitely. PacWest Bancorp has not repurchased any shares under its current stock repurchase program, which became effective March 1, 2020.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits.

Exhibit Number	Description
99.1	Press release dated April 21, 2020 announcing PacWest’s results of operations and financial condition for the three months ended March 31, 2020.
99.2	Earnings Release Presentation
104	Cover page interactive data file (embedded within the Inline XBRL document)

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

SIGNATURE

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

PacWest Bancorp
By:	/s/ Bart R. Olson
Name:	Bart R. Olson
Title:	Executive Vice President Chief Accounting Officer

Date: April 21, 2020

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
FOR IMMEDIATE RELEASE		April 21, 2020

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE FIRST QUARTER 2020

Significant Items

• Net Loss of $1.43 Billion, or a Loss of $12.23 Per Diluted Share

• Recorded Goodwill Impairment of $1.47 Billion

• Excluding Goodwill Impairment, Net Earnings of $36.9 Million; $0.31 Per Diluted Share

• Provision for Credit Losses of $112.0 Million

• Loan and Lease Production of $790 Million; $898 Million of Net Loan Growth

• Core Deposits Represents 82% of Total Deposits

• Tax Equivalent Net Interest Margin of 4.31% Compared to 4.33% in Q4

• Cost of Average Total Deposits Decreased 12 Basis Points from Q4 to 59 Basis Points

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced a net loss for the first quarter of 2020 of $1.43 billion, or $12.23 per diluted share, compared to net earnings for the fourth quarter of 2019 of $117.9 million, or $0.98 per diluted share. The decrease in net earnings in the first quarter was primarily due to a $1.47 billion goodwill impairment charge and a higher provision for credit losses attributable primarily to the significant deterioration in the economic forecast used to estimate the allowance for credit losses.

Matt Wagner, President and CEO, commented, “The COVID-19 pandemic has significantly impacted the entire economy resulting in non-essential businesses temporarily closing, record increases in unemployment, and severe declines in business activity in certain industries such as travel and restaurants among others. Our first priority is the health and safety of our employees and customers and we have implemented social distancing actions including the temporary closure of 27 bank lobbies where drive-up tellers are available, the temporary closure of 19 branches where branches are in close proximity to each other, reducing branch hours, and enabling virtually all of our non-branch employees to work remotely. We are also committed to providing essential services to existing and new customers to help them with their financial needs during this crisis. We are waiving fees and modifying loans through payment deferrals and term extensions to help small and middle-market businesses weather this downturn. All our actions are focused on doing the right thing for our employees, customers, and the communities we serve.”

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Mr. Wagner continued, “The unprecedented decline in economic conditions triggered by the COVID-19 pandemic, caused a significant decline in stock market valuations in March, including our stock price. As a result, we recorded a goodwill impairment charge as our estimated fair value was less than our book value. This is a non-cash charge and has no impact on our regulatory capital ratios, cash flows or liquidity position. Our operations remain strong as evidenced by the increase in net interest income and the significant loan growth in the first quarter including $167.1 million in our Denver market.”

Mr. Wagner added, “We also took a significant provision for credit losses during the quarter driven by the bleak economic forecasts and impact from loan downgrades as we performed an extensive review of our loan portfolio with a special focus on the segments most impacted by COVID-19, including hotels, aviation, restaurants, and retail.”

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FINANCIAL HIGHLIGHTS

	At or For the									At or For the
	Three Months Ended									Three Months Ended
	March 31,			December 31,			Increase			March 31,						Increase
Financial Highlights	2020			2019			(Decrease)			2020			2019			(Decrease)
				(Dollars in thousands, except per share data)
Net (loss) earnings	$	(1,433,111	)	$	117,881		$	(1,550,992	)	$	(1,433,111	)	$	112,604		$	(1,545,715	)
Diluted (loss) earnings per share	$	(12.23	)	$	0.98		$	(13.21	)	$	(12.23	)	$	0.92		$	(13.15	)
Return on average assets		(21.27	)%		1.77	%		(23.04	)		(21.27	)%		1.77	%		(23.04	)
Return on average tangible equity (1)		6.88	%		19.98	%		(13.10	)		6.88	%		20.64	%		(13.76	)
Net interest margin ("NIM") (tax equivalent)		4.31	%		4.33	%		(0.02	)		4.31	%		4.69	%		(0.38	)
Yield on average loans and leases (tax equivalent)		5.54	%		5.67	%		(0.13	)		5.54	%		6.16	%		(0.62	)
Cost of average total deposits		0.59	%		0.71	%		(0.12	)		0.59	%		0.73	%		(0.14	)
Efficiency ratio		40.6	%		44.8	%		(4.2	)		40.6	%		42.4	%		(1.8	)
Total assets	$	26,143,267		$	26,770,806		$	(627,539	)	$	26,143,267		$	26,324,138		$	(180,871	)
Loans and leases held for investment, net of deferred fees	$	19,745,305		$	18,846,872		$	898,433		$	19,745,305		$	18,307,697		$	1,437,608
Noninterest-bearing demand deposits	$	7,510,218		$	7,243,298		$	266,920		$	7,510,218		$	7,712,409		$	(202,191	)
Core deposits	$	16,050,522		$	16,187,287		$	(136,765	)	$	16,050,522		$	16,127,638		$	(77,116	)
Total deposits	$	19,575,837		$	19,233,036		$	342,801		$	19,575,837		$	19,285,927		$	289,910
As percentage of total deposits:
Noninterest-bearing demand deposits		38	%		38	%		-			38	%		40	%		(2	)
Core deposits		82	%		84	%		(2	)		82	%		84	%		(2	)
Equity to assets ratio		12.97	%		18.51	%		(5.54	)		12.97	%		18.20	%		(5.23	)
Tangible common equity ratio (1)		9.10	%		9.79	%		(0.69	)		9.10	%		9.23	%		(0.13	)
Book value per share	$	28.75		$	41.36		$	(12.61	)	$	28.75		$	39.86		$	(11.11	)
Tangible book value per share (1)	$	19.31		$	19.77		$	(0.46	)	$	19.31		$	18.22		$	1.09

(1) Non-GAAP measure.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased by $3.1 million to $249.7 million for the first quarter of 2020 compared to $246.6 million for the fourth quarter of 2019 due mainly to a lower cost of average interest-bearing liabilities and a higher balance of average loans and leases, partially offset by a lower loan and lease yield and one less day in the first quarter. The tax equivalent yield on average loans and leases was 5.54% for the first quarter of 2020 compared to 5.67% for the fourth quarter of 2019. The decrease in the yield on average loans and leases was due principally to the repricing of variable-rate loans causing lower coupon interest.

The tax equivalent NIM was 4.31% for the first quarter of 2020 compared to 4.33% for the fourth quarter of 2019. The decrease in the NIM was due mainly to the repricing of variable-rate loans causing lower coupon interest, offset partially by the lower cost of average interest-bearing liabilities.

The cost of average total deposits decreased to 0.59% for the first quarter of 2020 from 0.71% for the fourth quarter of 2019. The lower cost of average interest-bearing deposits reflected actions taken to reduce deposit rates in light of the two emergency interest rate cuts by the Federal Reserve in March of 2020. We expect these rate reductions to be more fully realized in the second quarter as evidenced by our cost of deposits at March 31, 2020 of 0.33%.

Provision for Credit Losses

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

	Three Months Ended
	March 31,		December 31,		Increase
Provision for Credit Losses	2020		2019		(Decrease)
			(In thousands)
Addition to allowance for loan and lease losses	$	98,000	$	1,000	$	97,000
Addition to reserve for unfunded
loan commitments		14,000		2,000		12,000
Total provision for credit losses	$	112,000	$	3,000	$	109,000

The increase in the provision for credit losses in the first quarter of 2020 was the result of the impact of the current economic forecast which reflected a significant deterioration in key macro-economic forecast variables such as unemployment and GDP, significant loan downgrades into special mention, and higher provisions on individually evaluated loans.

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Noninterest Income

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

	Three Months Ended
	March 31,		December 31,			Increase
Noninterest Income	2020		2019			(Decrease)
			(In thousands)
Service charges on deposit accounts	$	2,658	$	3,611		$	(953	)
Other commissions and fees		9,721		10,170			(449	)
Leased equipment income		12,251		10,648			1,603
Gain on sale of loans and leases		87		23			64
Gain on sale of securities		182		184			(2	)
Other income:
Dividends and gains (losses) on equity investments		28		(794	)		822
Warrant income		837		1,240			(403	)
Other		3,336		2,094			1,242
Total noninterest income	$	29,100	$	27,176		$	1,924

Noninterest income increased by $1.9 million to $29.1 million for the first quarter of 2020 compared to $27.2 million for the fourth quarter of 2019 due primarily to a $1.6 million increase in leased equipment income and a $1.2 million increase in other income, offset partially by a $1.0 million decrease in deposit service charges. The increase in leased equipment income was due to early lease terminations, which resulted in higher termination gains and accretion of deferred fees. The increase in other income was due mainly to $1.1 million of bankruptcy proceeds received related to a former credit. The decrease in deposit service charges was due mainly to waivers of various fees (service charges, wire fees, overdraft fees, NSF fees) to offer assistance to our customers during the COVID-19 crisis.

Noninterest Expense

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

	Three Months Ended
	March 31,		December 31,			Increase
Noninterest Expense	2020		2019			(Decrease)
			(In thousands)
Compensation	$	61,282	$	74,637		$	(13,355	)
Occupancy		14,207		14,541			(334	)
Data processing		6,454		6,770			(316	)
Other professional services		4,258		4,261			(3	)
Insurance and assessments		4,249		4,168			81
Intangible asset amortization		3,948		4,153			(205	)
Leased equipment depreciation		7,205		6,856			349
Foreclosed assets expense (income), net		66		(3,446	)		3,512
Acquisition, integration and reorganization costs		-		(269	)		269
Customer related expense		3,932		3,952			(20	)
Loan expense		2,650		2,967			(317	)
Other		9,719		5,138			4,581
Total operating expense		117,970		123,728			(5,758	)
Goodwill impairment		1,470,000		-			1,470,000
Total noninterest expense	$	1,587,970	$	123,728		$	1,464,242

Page 5

Noninterest expense increased by $1.5 billion to $1.59 billion for the first quarter of 2020 compared to $123.7 million for the fourth quarter of 2019 attributable primarily to a $1.47 billion goodwill impairment charge. Excluding the goodwill impairment charge, noninterest expense decreased to $118.0 million or a decrease of $5.8 million. This $5.8 million decrease was mainly due to a $13.4 million decrease in compensation expense, partially offset by a $4.6 million increase in other expense and a $3.5 million increase in foreclosed assets expense. Compensation expense decreased mainly due to lower bonus accruals, partially offset by higher payroll tax expense. Other expense increased due primarily to the prior quarter including $2.8 million of credits related to the reversal of accrued merger costs and franchise tax refunds, while the first quarter includes a $1.5 million accrual for operational loss contingencies related to a system outage at a service provider. Foreclosed assets expense increased as the prior quarter included a $3.3 million gain on the sale of a repossessed asset.

Income Taxes

The effective income tax rate was (0.8)% in the first quarter of 2020 compared to 19.8% for the fourth quarter of 2019. Excluding non-deductible goodwill impairment, the effective income tax rate was 24.5%. The fourth quarter 2019 effective tax rate was lower due primarily to $9.1 million of benefits related to changes in state apportionment net of the federal tax effect. Excluding the non-deductible goodwill impairment, the effective tax rate for the full year 2020 is currently estimated to be in the range of 26-28%.

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BALANCE SHEET HIGHLIGHTS

Loans and Leases

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

	Three Months Ended
Roll Forward of Loans and Leases Held	March 31,			December 31,
for Investment, Net of Deferred Fees (1)	2020			2019
	(Dollars in thousands)
Balance, beginning of period	$	18,846,872		$	18,735,543
Additions:
Production		789,746			1,021,334
Disbursements		1,997,080			1,317,389
Total production and disbursements		2,786,826			2,338,723
Reductions:
Payoffs		(812,707	)		(816,134	)
Paydowns		(1,053,705	)		(1,406,475	)
Total payoffs and paydowns		(1,866,412	)		(2,222,609	)
Sales		-			(43	)
Transfers to foreclosed assets		(1,776	)		(83	)
Charge-offs		(20,205	)		(4,659	)
Total reductions		(1,888,393	)		(2,227,394	)
Net increase		898,433			111,329
Balance, end of period	$	19,745,305		$	18,846,872
Weighted average rate on production (2)		4.31	%		4.73	%

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

(2) The weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees. Amortized fees added approximately 20 basis points to loan yields in 2020.

Loans and leases held for investment, net of deferred fees, increased by $898.4 million, or 19.2% annualized, in the first quarter of 2020, to $19.7 billion at March 31, 2020. The net loan growth in the first quarter was primarily from the venture capital and asset-based loan portfolio classes, along with ongoing fundings in the residential real estate construction loan class. The growth in venture capital, primarily from drawdown activity, included $241 million in expansion stage, $203 million in equity funds and $63 million in late stage loans.

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

	March 31, 2020					December 31, 2019					March 31, 2019
			% of					% of					% of
Loan and Lease Portfolio	Balance		Total			Balance		Total			Balance		Total
						(In thousands)
Real estate mortgage:
Commercial	$	4,220,649		21	%	$	4,202,687		22	%	$	4,640,510		25	%
Income producing and other residential		3,788,295		19	%		3,770,060		20	%		3,518,948		19	%
Total real estate mortgage		8,008,944		40	%		7,972,747		42	%		8,159,458		44	%
Real estate construction and land:
Commercial		1,087,505		6	%		1,082,368		6	%		943,596		5	%
Residential		1,792,748		9	%		1,655,434		9	%		1,408,128		8	%
Total real estate construction and land		2,880,253		15	%		2,737,802		15	%		2,351,724		13	%
Total real estate		10,889,197		55	%		10,710,549		57	%		10,511,182		57	%
Commercial:
Asset-based		3,938,402		20	%		3,748,407		20	%		3,422,202		19	%
Venture capital		2,715,837		14	%		2,179,422		12	%		2,027,450		11	%
Other commercial		1,771,985		9	%		1,767,667		9	%		1,974,702		11	%
Total commercial		8,426,224		43	%		7,695,496		41	%		7,424,354		41	%
Consumer		429,884		2	%		440,827		2	%		372,161		2	%
Total loans and leases held for investment, net of deferred fees	$	19,745,305		100	%	$	18,846,872		100	%	$	18,307,697		100	%
Total unfunded loan commitments	$	7,697,724				$	8,183,158				$	7,465,392

Allowance for Credit Losses

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

	Three Months Ended March 31, 2020
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
				(In thousands)
Beginning balance	$	138,785		$	35,861	$	174,646
Charge-offs		(20,205	)		-		(20,205	)
Recoveries		1,095			-		1,095
Net charge-offs		(19,110	)		-		(19,110	)
Provision		98,000			14,000		112,000
Cumulative effect of change in accounting principle - CECL		3,617			3,710		7,327
Ending balance	$	221,292		$	53,571	$	274,863

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	Three Months Ended December 31, 2019
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
				(In thousands)
Beginning balance	$	138,552		$	33,861	$	172,413
Charge-offs		(4,659	)		-		(4,659	)
Recoveries		3,892			-		3,892
Net charge-offs		(767	)		-		(767	)
Provision		1,000			2,000		3,000
Ending balance	$	138,785		$	35,861	$	174,646

We adopted CECL on January 1, 2020, which resulted in an increase in the allowance for credit losses of $7.3 million on the adoption date. The significant ACL increase during the first quarter was primarily attributable to the dramatic decline in the economic forecast, the significant increase in special mention loans caused by loan downgrades in the loan portfolios most impacted by the sudden decline in the economy, the loan growth during the quarter, and increased provisions for individually evaluated loans.

The allowance for credit losses as a percentage of loans and leases held for investment was 1.39% at March 31, 2020 under CECL and 0.93% at December 31, 2019 under the incurred loss model.

Gross charge-offs for the first quarter of 2020 were $20.2 million and included $11.5 million for an asset-based oil industry loan and $7.3 million for other commercial loans compared to gross charge-offs for the fourth quarter of 2019 of $4.7 million that included $3.2 million for venture capital loans and $1.0 million for other commercial loans.

Recoveries for the first quarter of 2020 were $1.1 million and included $0.4 million for other commercial loans and $0.4 million for asset-based loans compared to recoveries for the fourth quarter of 2019 of $3.9 million that included $1.8 million for other commercial loans, $0.9 million for asset-based loans, and $0.6 million for venture capital loans.

For the first quarter of 2020 and fourth quarter of 2019, annualized net charge-offs to average loans and leases were 0.40% and 0.02%.

Deposits and Client Investment Funds

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

	March 31, 2020					December 31, 2019					March 31, 2019
			% of					% of					% of
Deposit Composition	Balance		Total			Balance		Total			Balance		Total
						(Dollars in thousands)
Noninterest-bearing demand	$	7,510,218		38	%	$	7,243,298		38	%	$	7,712,409		40	%
Interest checking		3,333,147		17	%		3,753,978		19	%		3,163,228		16	%
Money market		4,712,118		24	%		4,690,420		24	%		4,714,078		25	%
Savings		495,039		3	%		499,591		3	%		537,923		3	%
Total core deposits		16,050,522		82	%		16,187,287		84	%		16,127,638		84	%
Non-core non-maturity deposits		836,157		4	%		496,407		3	%		454,277		2	%
Total non-maturity deposits		16,886,679		86	%		16,683,694		87	%		16,581,915		86	%
Time deposits $250,000 and under		2,086,188		11	%		2,065,733		11	%		2,258,989		12	%
Time deposits over $250,000		602,970		3	%		483,609		2	%		445,023		2	%
Total time deposits		2,689,158		14	%		2,549,342		13	%		2,704,012		14	%
Total deposits	$	19,575,837		100	%	$	19,233,036		100	%	$	19,285,927		100	%

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At March 31, 2020, core deposits totaled $16.1 billion, or 82% of total deposits, including $7.5 billion of noninterest-bearing demand deposits, or 38% of total deposits.

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds at March 31, 2020 were $1.4 billion, of which $1.1 billion was managed by PWAM.

CREDIT QUALITY

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

	March 31,			December 31,			Increase
Credit Quality Metrics	2020			2019			(Decrease)
				(Dollars in thousands)
NPAs and Performing TDRs:
Nonaccrual loans and leases held for investment (1)	$	95,602		$	92,353		$	3,249
Accruing loans contractually past due 90 days or more		-			-			-
Foreclosed assets, net		1,701			440			1,261
Total nonperforming assets ("NPAs")	$	97,303		$	92,793		$	4,510
Performing TDRs held for investment	$	8,978		$	12,257		$	(3,279	)
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.48	%		0.49	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.49	%		0.49	%
Loan and Lease Credit Risk Ratings:
Pass	$	18,698,942		$	18,348,004		$	350,938
Special mention		898,658			322,956			575,702
Classified		147,705			175,912			(28,207	)
Total loans and leases held for investment, net of deferred fees	$	19,745,305		$	18,846,872		$	898,433
Classified loans and leases held for investment to loans and leases held for investment		0.75	%		0.93	%
Allowance for Credit Losses:
Allowance for credit losses	$	274,863		$	174,646		$	100,217
Provision for credit losses (for the quarter)	$	112,000		$	3,000		$	109,000
Net charge-offs (for the quarter)	$	19,110		$	767		$	18,343
Net charge-offs to average loans and leases (for the quarter)		0.40	%		0.02	%
Allowance for credit losses to loans and leases held for investment		1.39	%		0.93	%
Allowance for credit losses to nonaccrual loans and leases held for investment		287.5	%		189.1	%

(1) Nonaccrual loans include guaranteed amounts of $16.0 million at March 31, 2020 and $17.5 million at December 31, 2019.

Page 10

Nonaccrual, classified, and special mention loans and leases fluctuate from period to period as a result of loan repayments and our ongoing active portfolio monitoring, including loan downgrades, which were higher than usual triggered by the economic impact from the COVID-19 pandemic.

During the first quarter of 2020, nonaccrual loans and leases increased by $3.2 million, while classified loans and leases decreased by $28.2 million and special mention loans and leases increased by $575.7 million. The decrease in the classified loans and leases category was primarily due to charge-offs totaling approximately $18.0 million, which included an $11.5 million charge-off on a previously classified asset-based oil industry loan and charge-offs totaling $6.1 million on two security monitoring loans. The increase in special mention loans and leases in the first quarter was attributable to loan downgrades primarily in the categories most acutely impacted by COVID-19 including hotels, aviation, restaurants, retail, and small business loans.

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

	Nonaccrual Loans and Leases										Accruing and
	March 31, 2020					December 31, 2019					30-89 Days Past Due
			% of					% of			March 31,		December 31,
			Loan					Loan			2020		2019
	Balance		Category			Balance		Category			Balance		Balance
						(Dollars in thousands)
Real estate mortgage:
Commercial	$	19,088		0.5	%	$	18,346		0.4	%	$	1,807	$	1,735
Income producing and other residential		2,308		0.1	%		2,478		0.1	%		1,064		2,094
Total real estate mortgage		21,396		0.3	%		20,824		0.3	%		2,871		3,829
Real estate construction and land:
Commercial		351		0.0	%		364		0.0	%		-		-
Residential		-		0.0	%		-		0.0	%		241		1,429
Total real estate construction and land		351		0.0	%		364		0.0	%		241		1,429
Commercial:
Asset-based		17,104		0.4	%		30,162		0.8	%		-		19
Venture capital		18,612		0.7	%		12,916		0.6	%		183		-
Other commercial		37,726		2.1	%		27,594		1.6	%		4,393		2,258
Total commercial		73,442		0.9	%		70,672		0.9	%		4,576		2,277
Consumer		413		0.1	%		493		0.1	%		518		1,006
Total held for investment	$	95,602		0.5	%	$	92,353		0.5	%	$	8,206	$	8,541

CAPITAL

Effective March 31, 2020, we elected the 5-year phase-in as allowed under the recently issued interim regulatory capital rule (IFR) revising the transition for CECL. The IFR allows the addback of 100% of the capital effect of the day one CECL transition adjustment and 25% of subsequent increases in the allowance for credit losses to regulatory capital through December 31, 2021. This cumulative amount will then be reduced from capital over a three year phase-in period. This election increased our regulatory capital ratios by approximately 12 basis points at March 31, 2020. The capital ratios are presented on page 21.

Page 11

STOCK REPURCHASE PROGRAM

During February 2020, we repurchased 1,953,711 shares at an average price of $35.83 and a total cost of $70.0 million under the previous share repurchase program which expired on February 29, 2020. At March 31, 2020, the remaining amount that could be used to repurchase shares under the $200 million Stock Repurchase Program approved on February 12, 2020 was $200.0 million. The previously announced suspension of share repurchases through June 30, 2020 has been extended indefinitely in light of recent COVID-19 related developments.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $26 billion in assets headquartered in Los Angeles, California, with executive offices in Denver, Colorado, with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located in California, one branch located in Durham, North Carolina, and one branch located in Denver, Colorado. The Bank provides community banking products including lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices and Denver, Colorado branch office. The Bank offers national lending products including asset-based, equipment, and real estate loans and treasury management services to established middle-market businesses on a national basis. The Bank also offers venture banking products including a comprehensive suite of financial services focused on entrepreneurial and venture-backed businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States. For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.

FORWARD LOOKING STATEMENTS

This communication contains certain forward-looking information about PacWest Bancorp that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward-looking statements. Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. The COVID-19 pandemic is adversely affecting PacWest Bancorp, its employees, customers and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity and prospects is uncertain. Continued deterioration in general business and economic conditions could adversely affect PacWest Bancorp’s revenues and the values of its assets and liabilities, lead to a tightening of credit and increase stock price volatility. In addition, PacWest Bancorp’s results could be adversely affected by changes in interest rates, further increases in unemployment rates, deterioration in the credit quality of its loan portfolio or in the value of the collateral securing those loans, deterioration in the value of its investment securities, legal and regulatory developments, the price of crude oil and the adoption of the CECL accounting standard. Actual results may differ materially from those set forth or implied in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the U.S. Securities and Exchange Commission.

Page 12

We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Page 13

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

	March 31,			December 31,			March 31,
	2020			2019			2019
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	172,570		$	172,585		$	224,758
Interest-earning deposits in financial institutions		439,690			465,039			332,124
Total cash and cash equivalents		612,260			637,624			556,882
Securities available-for-sale, at estimated fair value		3,757,663			3,797,187			3,994,708
Federal Home Loan Bank stock, at cost		54,244			40,924			29,430
Total investment securities		3,811,907			3,838,111			4,024,138
Loans held for sale		-			-			25,124
Gross loans and leases held for investment		19,806,394			18,910,740			18,371,295
Deferred fees, net		(61,089	)		(63,868	)		(63,598	)
Total loans and leases held for investment,
net of deferred fees		19,745,305			18,846,872			18,307,697
Allowance for loan and lease losses		(221,292	)		(138,785	)		(136,281	)
Total loans and leases held for investment, net		19,524,013			18,708,087			18,171,416
Equipment leased to others under operating leases		306,530			324,084			293,853
Premises and equipment, net		39,799			38,585			37,783
Foreclosed assets, net		1,701			440			3,291
Goodwill		1,078,670			2,548,670			2,548,670
Core deposit and customer relationship intangibles, net		34,446			38,394			52,250
Other assets		733,941			636,811			610,731
Total assets	$	26,143,267		$	26,770,806		$	26,324,138
LIABILITIES:
Noninterest-bearing deposits	$	7,510,218		$	7,243,298		$	7,712,409
Interest-bearing deposits		12,065,619			11,989,738			11,573,518
Total deposits		19,575,837			19,233,036			19,285,927
Borrowings		2,295,000			1,759,008			1,481,087
Subordinated debentures		458,994			458,209			454,458
Accrued interest payable and other liabilities		423,047			365,856			311,684
Total liabilities		22,752,878			21,816,109			21,533,156
STOCKHOLDERS' EQUITY (1)		3,390,389			4,954,697			4,790,982
Total liabilities and stockholders’ equity	$	26,143,267		$	26,770,806		$	26,324,138
Book value per share	$	28.75		$	41.36		$	39.86
Tangible book value per share (2)	$	19.31		$	19.77		$	18.22
Shares outstanding		117,916,789			119,781,605			120,201,149

(1) Includes net unrealized gain on securities
available-for-sale, net	$	90,916	$	78,658	$	37,258
(2) Non-GAAP measure.

Page 14

PACWEST BANCORP AND SUBSIDIARIES 

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

	Three Months Ended
	March 31,			December 31,			March 31,
	2020			2019			2019
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	262,278		$	263,402		$	274,229
Investment securities		27,446			28,135			29,680
Deposits in financial institutions		1,608			2,056			650
Total interest income		291,332			293,593			304,559
Interest expense:
Deposits		28,247			34,802			34,235
Borrowings		6,778			5,189			7,710
Subordinated debentures		6,560			6,983			7,738
Total interest expense		41,585			46,974			49,683
Net interest income		249,747			246,619			254,876
Provision for credit losses		112,000			3,000			4,000
Net interest income after
provision for credit losses		137,747			243,619			250,876
Noninterest income:
Service charges on deposit accounts		2,658			3,611			3,730
Other commissions and fees		9,721			10,170			11,008
Leased equipment income		12,251			10,648			9,282
Gain on sale of loans and leases		87			23			-
Gain on sale of securities		182			184			2,161
Other income		4,201			2,540			4,883
Total noninterest income		29,100			27,176			31,064
Noninterest expense:
Compensation		61,282			74,637			70,845
Occupancy		14,207			14,541			14,320
Data processing		6,454			6,770			6,925
Other professional services		4,258			4,261			4,513
Insurance and assessments		4,249			4,168			4,038
Intangible asset amortization		3,948			4,153			4,870
Leased equipment depreciation		7,205			6,856			5,651
Foreclosed assets expense (income), net		66			(3,446	)		29
Acquisition, integration and
reorganization costs		-			(269	)		618
Customer related expense		3,932			3,952			2,943
Loan expense		2,650			2,967			2,885
Goodwill impairment		1,470,000			-			-
Other expense		9,719			5,138			8,650
Total noninterest expense		1,587,970			123,728			126,287
(Loss) earnings before income taxes		(1,421,123	)		147,067			155,653
Income tax expense		11,988			29,186			43,049
Net (loss) earnings	$	(1,433,111	)	$	117,881		$	112,604
Basic and diluted (loss) earnings per share	$	(12.23	)	$	0.98		$	0.92
Dividends declared and paid per share	$	0.60		$	0.60		$	0.60

Page 15

PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
	Three Months Ended
	March 31,			December 31,			March 31,
	2020			2019			2019
	(In thousands, except per share data)
Basic Earnings Per Share:
Net (loss) earnings	$	(1,433,111	)	$	117,881		$	112,604
Less: earnings allocated to unvested
restricted stock (1)		(939	)		(1,458	)		(1,163	)
Net (loss) earnings allocated to
common shares	$	(1,434,050	)	$	116,423		$	111,441
Weighted-average basic shares and
unvested restricted stock outstanding		118,775			119,804			122,227
Less: weighted-average unvested
restricted stock outstanding		(1,495	)		(1,566	)		(1,352	)
Weighted-average basic shares
outstanding		117,280			118,238			120,875
Basic (loss) earnings per share	$	(12.23	)	$	0.98		$	0.92
Diluted Earnings Per Share:
Net (loss) earnings allocated to
common shares	$	(1,434,050	)	$	116,423		$	111,441
Weighted-average diluted shares
outstanding		117,280			118,238			120,875
Diluted (loss) earnings per share	$	(12.23	)	$	0.98		$	0.92

(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.

Page 16

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	March 31, 2020							December 31, 2019							March 31, 2019
			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:
Loans and leases (1)(2)	$	19,065,035	$	262,764		5.54	%	$	18,470,583	$	263,783		5.67	%	$	18,064,230	$	274,513		6.16	%
Investment securities (3)		3,853,217		28,641		2.99	%		3,811,216		29,509		3.07	%		3,968,531		30,572		3.12	%
Deposits in financial institutions		537,384		1,608		1.20	%		498,068		2,056		1.64	%		111,950		650		2.35	%
Total interest-earning assets (1)		23,455,636		293,013		5.02	%		22,779,867		295,348		5.14	%		22,144,711		305,735		5.60	%
Other assets		3,643,404							3,600,872							3,631,238
Total assets	$	27,099,040						$	26,380,739						$	25,775,949
Liabilities and Stockholders' Equity:
Interest checking	$	3,466,812		7,135		0.83	%	$	3,731,696		10,031		1.07	%	$	3,041,822		9,321		1.24	%
Money market		5,247,866		10,016		0.77	%		5,117,553		12,063		0.94	%		5,274,987		14,908		1.15	%
Savings		497,959		160		0.13	%		509,497		204		0.16	%		553,032		242		0.18	%
Time		2,684,143		10,936		1.64	%		2,744,156		12,504		1.81	%		2,286,932		9,764		1.73	%
Total interest-bearing deposits		11,896,780		28,247		0.95	%		12,102,902		34,802		1.14	%		11,156,773		34,235		1.24	%
Borrowings		2,026,749		6,778		1.35	%		1,179,220		5,189		1.75	%		1,218,319		7,710		2.57	%
Subordinated debentures		458,399		6,560		5.76	%		456,997		6,983		6.06	%		454,203		7,738		6.91	%
Total interest-bearing liabilities		14,381,928		41,585		1.16	%		13,739,119		46,974		1.36	%		12,829,295		49,683		1.57	%
Noninterest-bearing demand deposits		7,357,717							7,338,888							7,783,652
Other liabilities		402,617							372,550							347,037
Total liabilities		22,142,262							21,450,557							20,959,984
Stockholders' equity		4,956,778							4,930,182							4,815,965
Total liabilities and stockholders' equity	$	27,099,040						$	26,380,739						$	25,775,949
Net interest income (1)			$	251,428						$	248,374						$	256,052
Net interest spread (1)						3.86	%						3.78	%						4.03	%
Net interest margin (1)						4.31	%						4.33	%						4.69	%
Total deposits (4)	$	19,254,497	$	28,247		0.59	%	$	19,441,790	$	34,802		0.71	%	$	18,940,425	$	34,235		0.73	%

(1) Tax equivalent.

(2) Includes discount accretion on acquired loans of $4.8 million, $3.0 million, and $3.0 million for the three months ended March 31, 2020, December 31, 2019, and March 31, 2019, respectively.

(3) Includes tax-equivalent adjustments of $1.2 million, $1.4 million, and $0.9 million for the three months ended March 31, 2020, December 31, 2019, and March 31, 2019 related to tax-exempt income on investment securities.

The federal statutory tax rate utilized was 21%.

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

Page 17 

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	March 31,			December 31,			September 30,			June 30,			March 31,
	2020			2019			2019			2019			2019
				(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	172,570		$	172,585		$	252,596		$	185,075		$	224,758
Interest-earning deposits in financial institutions		439,690			465,039			483,405			422,663			332,124
Total cash and cash equivalents		612,260			637,624			736,001			607,738			556,882
Securities available-for-sale		3,757,663			3,797,187			3,817,348			3,807,244			3,994,708
Federal Home Loan Bank stock		54,244			40,924			26,865			43,146			29,430
Total investment securities		3,811,907			3,838,111			3,844,213			3,850,390			4,024,138
Loans held for sale		-			-			-			-			25,124
Gross loans and leases held for investment		19,806,394			18,910,740			18,796,011			18,532,740			18,371,295
Deferred fees, net		(61,089	)		(63,868	)		(60,468	)		(59,888	)		(63,598	)
Total loans and leases held for
investment, net of deferred fees		19,745,305			18,846,872			18,735,543			18,472,852			18,307,697
Allowance for loan and lease losses		(221,292	)		(138,785	)		(138,552	)		(135,037	)		(136,281	)
Total loans and leases held for investment, net		19,524,013			18,708,087			18,596,991			18,337,815			18,171,416
Equipment leased to others under operating leases		306,530			324,084			295,854			300,668			293,853
Premises and equipment, net		39,799			38,585			37,926			38,162			37,783
Foreclosed assets, net		1,701			440			1,366			1,472			3,291
Goodwill		1,078,670			2,548,670			2,548,670			2,548,670			2,548,670
Core deposit and customer relationship intangibles, net		34,446			38,394			42,547			47,380			52,250
Other assets		733,941			636,811			621,059			612,119			610,731
Total assets	$	26,143,267		$	26,770,806		$	26,724,627		$	26,344,414		$	26,324,138
LIABILITIES:
Noninterest-bearing deposits	$	7,510,218		$	7,243,298		$	7,441,185		$	7,299,213		$	7,712,409
Interest-bearing deposits		12,065,619			11,989,738			12,292,018			11,506,543			11,573,518
Total deposits		19,575,837			19,233,036			19,733,203			18,805,756			19,285,927
Borrowings		2,295,000			1,759,008			1,253,031			1,913,059			1,481,087
Subordinated debentures		458,994			458,209			456,145			456,112			454,458
Accrued interest payable and other liabilities		423,047			365,856			362,140			317,477			311,684
Total liabilities		22,752,878			21,816,109			21,804,519			21,492,404			21,533,156
STOCKHOLDERS' EQUITY (1)		3,390,389			4,954,697			4,920,108			4,852,010			4,790,982
Total liabilities and stockholders’ equity	$	26,143,267		$	26,770,806		$	26,724,627		$	26,344,414		$	26,324,138
Book value per share	$	28.75		$	41.36		$	41.06		$	40.49		$	39.86
Tangible book value per share (2)	$	19.31		$	19.77		$	19.43		$	18.83		$	18.22
Shares outstanding		117,916,789			119,781,605			119,831,192			119,829,104			120,201,149

(1) Includes net unrealized gain on
securities available-for-sale, net	$	90,916	$	78,658	$	95,887	$	73,066	$	37,258
(2) Non-GAAP measure.

Page 18 

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS

	Three Months Ended
	March 31,			December 31,			September 30,		June 30,			March 31,
	2020			2019			2019		2019			2019
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	262,278		$	263,402		$	275,978	$	284,236		$	274,229
Investment securities		27,446			28,135			28,806		28,948			29,680
Deposits in financial institutions		1,608			2,056			2,424		1,349			650
Total interest income		291,332			293,593			307,208		314,533			304,559
Interest expense:
Deposits		28,247			34,802			40,703		38,720			34,235
Borrowings		6,778			5,189			6,852		7,210			7,710
Subordinated debentures		6,560			6,983			7,417		7,705			7,738
Total interest expense		41,585			46,974			54,972		53,635			49,683
Net interest income		249,747			246,619			252,236		260,898			254,876
Provision for credit losses		112,000			3,000			7,000		8,000			4,000
Net interest income after provision for credit losses		137,747			243,619			245,236		252,898			250,876
Noninterest income:
Service charges on deposit accounts		2,658			3,611			3,525		3,771			3,730
Other commissions and fees		9,721			10,170			10,855		11,590			11,008
Leased equipment income		12,251			10,648			9,615		9,182			9,282
Gain on sale of loans and leases		87			23			765		326			-
Gain on sale of securities		182			184			908		22,192			2,161
Other income		4,201			2,540			7,761		3,832			4,883
Total noninterest income		29,100			27,176			33,429		50,893			31,064
Noninterest expense:
Compensation		61,282			74,637			71,424		68,956			70,845
Occupancy		14,207			14,541			14,089		14,457			14,320
Data processing		6,454			6,770			7,044		6,817			6,925
Other professional services		4,258			4,261			4,400		4,629			4,513
Insurance and assessments		4,249			4,168			4,100		4,098			4,038
Intangible asset amortization		3,948			4,153			4,833		4,870			4,870
Leased equipment depreciation		7,205			6,856			5,951		5,558			5,651
Foreclosed assets expense (income), net		66			(3,446	)		8		(146	)		29
Acquisition, integration and
reorganization costs		-			(269	)		-		-			618
Customer related expense		3,932			3,952			3,539		3,405			2,943
Loan expense		2,650			2,967			3,628		3,451			2,885
Goodwill impairment		1,470,000			-			-		-			-
Other expense		9,719			5,138			7,793		9,332			8,650
Total noninterest expense		1,587,970			123,728			126,809		125,427			126,287
(Loss) earnings before income taxes		(1,421,123	)		147,067			151,856		178,364			155,653
Income tax expense		11,988			29,186			41,830		50,239			43,049
Net (loss) earnings	$	(1,433,111	)	$	117,881		$	110,026	$	128,125		$	112,604
Basic and diluted (loss) earnings per share	$	(12.23	)	$	0.98		$	0.92	$	1.07		$	0.92
Dividends declared and paid per share	$	0.60		$	0.60		$	0.60	$	0.60		$	0.60

Page 19 

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2020			2019			2019			2019			2019
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)		(21.27	)%		1.77	%		1.65	%		1.99	%		1.77	%
Return on average equity (1)		(116.28	)%		9.49	%		8.93	%		10.66	%		9.48	%
Return on average tangible equity (1)(2)		6.88	%		19.98	%		19.01	%		23.15	%		20.64	%
Efficiency ratio		40.6	%		44.8	%		42.3	%		41.6	%		42.4	%
Noninterest expense as a percentage
of average assets (1)		23.57	%		1.86	%		1.91	%		1.95	%		1.99	%
Average Yields/Costs (1):
Yield on:
Average loans and leases (3)		5.54	%		5.67	%		5.91	%		6.26	%		6.16	%
Average interest-earning assets (3)		5.02	%		5.14	%		5.41	%		5.68	%		5.60	%
Cost of:
Average interest-bearing deposits		0.95	%		1.14	%		1.34	%		1.35	%		1.24	%
Average total deposits		0.59	%		0.71	%		0.83	%		0.81	%		0.73	%
Average interest-bearing liabilities		1.16	%		1.36	%		1.60	%		1.64	%		1.57	%
Net interest spread (3)		3.86	%		3.78	%		3.81	%		4.04	%		4.03	%
Net interest margin (3)		4.31	%		4.33	%		4.46	%		4.72	%		4.69	%
Average Balances:
Assets:
Loans and leases, net of deferred fees	$	19,065,035		$	18,470,583		$	18,539,281		$	18,239,690		$	18,064,230
Interest-earning assets		23,455,636			22,779,867			22,793,676			22,258,828			22,144,711
Total assets		27,099,040			26,380,739			26,406,603			25,849,189			25,775,949
Liabilities:
Noninterest-bearing deposits		7,357,717			7,338,888			7,487,555			7,544,027			7,783,652
Interest-bearing deposits		11,896,780			12,102,902			12,031,776			11,545,785			11,156,773
Total deposits		19,254,497			19,441,790			19,519,331			19,089,812			18,940,425
Borrowings		2,026,749			1,179,220			1,181,313			1,142,223			1,218,319
Subordinated debentures		458,399			456,997			456,011			454,901			454,203
Interest-bearing liabilities		14,381,928			13,739,119			13,669,100			13,142,909			12,829,295
Stockholders' equity		4,956,778			4,930,182			4,890,746			4,818,889			4,815,965

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent.

Page 20 

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2020			2019			2019			2019			2019
	(Dollars in thousands)
Credit Quality Ratios:
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.48	%		0.49	%		0.53	%		0.44	%		0.48	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.49	%		0.49	%		0.54	%		0.45	%		0.50	%
Classified loans and leases held for investment to loans and leases held for investment		0.75	%		0.93	%		1.01	%		1.03	%		1.04	%
Provision for credit losses (for the quarter) to average loans and leases held for investment (annualized)		2.36	%		0.06	%		0.15	%		0.18	%		0.09	%
Net charge-offs (for the quarter) to average loans and leases held for investment (annualized)		0.40	%		0.02	%		0.10	%		0.25	%		0.00	%
Trailing 12 months net charge-offs to average loans and leases held for investment		0.19	%		0.09	%		0.20	%		0.18	%		0.22	%
Allowance for credit losses to loans and leases held for investment		1.39	%		0.93	%		0.92	%		0.92	%		0.95	%
Allowance for credit losses to nonaccrual loans and leases held for investment		287.5	%		189.1	%		174.0	%		209.1	%		195.6	%
PacWest Bancorp Consolidated
Capital:
Tier 1 leverage ratio (1)		8.64	%		9.74	%		9.50	%		9.49	%		9.38	%
Common equity tier 1 capital ratio (1)		9.23	%		9.78	%		9.55	%		9.53	%		9.48	%
Tier 1 capital ratio (1)		9.23	%		9.78	%		9.55	%		9.53	%		9.48	%
Total capital ratio (1)		12.21	%		12.41	%		12.16	%		12.18	%		12.15	%
Risk-weighted assets (1)	$	24,178,995		$	23,582,495		$	23,579,614		$	23,117,199		$	22,939,074
Equity to assets ratio		12.97	%		18.51	%		18.41	%		18.42	%		18.20	%
Tangible common equity ratio (2)		9.10	%		9.79	%		9.65	%		9.50	%		9.23	%
Book value per share	$	28.75		$	41.36		$	41.06		$	40.49		$	39.86
Tangible book value per share (2)	$	19.31		$	19.77		$	19.43		$	18.83		$	18.22
Pacific Western Bank Capital:
Tier 1 leverage ratio (1)		9.72	%		10.95	%		10.72	%		10.76	%		10.57	%
Common equity tier 1 capital ratio (1)		10.39	%		11.00	%		10.79	%		10.80	%		10.69	%
Tier 1 capital ratio (1)		10.39	%		11.00	%		10.79	%		10.80	%		10.69	%
Total capital ratio (1)		11.53	%		11.74	%		11.52	%		11.53	%		11.45	%

(1) Capital information for March 31, 2020 is preliminary.

(2) Non-GAAP measure.

Page 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
	March 31,			December 31,			March 31,
Return on Average Tangible Equity	2020			2019			2019
	(Dollars in thousands)
Net (loss) earnings	$	(1,433,111	)	$	117,881		$	112,604
Add: Intangible asset amortization		3,948			-			-
Add: Goodwill amortization		1,470,000			-			-
Adjusted net earnings	$	40,837		$	117,881		$	112,604
Average stockholders' equity	$	4,956,778		$	4,930,182		$	4,815,965
Less: Average intangible assets		2,569,189			2,589,217			2,603,842
Average tangible common equity	$	2,387,589		$	2,340,965		$	2,212,123
Return on average equity (1)		(116.28	)%		9.49	%		9.48	%
Return on average tangible equity (2)		6.88	%		19.98	%		20.64	%

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

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

Tangible Common Equity Ratio/	March 31,			December 31,			September 30,			June 30,			March 31,
Tangible Book Value Per Share	2020			2019			2019			2019			2019
	(Dollars in thousands, except per share data)
Stockholders' equity	$	3,390,389		$	4,954,697		$	4,920,108		$	4,852,010		$	4,790,982
Less: Intangible assets		1,113,116			2,587,064			2,591,217			2,596,050			2,600,920
Tangible common equity	$	2,277,273		$	2,367,633		$	2,328,891		$	2,255,960		$	2,190,062
Total assets	$	26,143,267		$	26,770,806		$	26,724,627		$	26,344,414		$	26,324,138
Less: Intangible assets		1,113,116			2,587,064			2,591,217			2,596,050			2,600,920
Tangible assets	$	25,030,151		$	24,183,742		$	24,133,410		$	23,748,364		$	23,723,218
Equity to assets ratio		12.97	%		18.51	%		18.41	%		18.42	%		18.20	%
Tangible common equity ratio (1)		9.10	%		9.79	%		9.65	%		9.50	%		9.23	%
Book value per share	$	28.75		$	41.36		$	41.06		$	40.49		$	39.86
Tangible book value per share (2)	$	19.31		$	19.77		$	19.43		$	18.83		$	18.22
Shares outstanding		117,916,789			119,781,605			119,831,192			119,829,104			120,201,149

(1) Tangible common equity divided by tangible assets.

(2) Tangible common equity divided by shares outstanding.

Page 22 

EX-99.2

Exhibit 99.2

2020 First Quarter Results Earnings Release Presentation April 21, 2020

First Quarter 2020 | PACW | p. 2 This communication contains certain forward - looking information about PacWest Bancorp that is intended to be covered by the safe harbor for “forward - looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward - looking statements. Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. The COVID - 19 pandemic is adversely affecting PacWest Bancorp, its employees, customers and third - party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity and prospects is uncertain. Continued deterioration in general business and economic conditions could adversely affect PacWest Bancorp’s revenues and the values of its assets and liabilities, lead to a tightening of credit and increase stock price volatility. In addition, PacWest Bancorp’s results could be adversely affected by changes in interest rates, further increases in unemployment rates, deterioration in the credit quality of its loan portfolio or in the value of the collateral securing those loans, deterioration in the value of its investment securities, legal and regulatory developments, the price of crude oil and the adoption of the CECL accounting standard. Actual results may differ materially from those set forth or implied in the forward - looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the U.S. Securities and Exchange Commission. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward - looking statements, whether as a result of new information, future events or otherwise, except as required by law . Forward - Looking Statements

First Quarter 2020 | PACW | p. 3 Presentation Index Impacts from COVID - 19 Pandemic 4 First Quarter Significant Items 8 Loans and Leases & Credit Quality 12 Deposits 32 Net Interest Margin 35 Investment Securities 40 Controlled Expenses 42 Company Overview 44 Non - GAAP Measurements 51

First Quarter 2020 | PACW | p. 4 Impacts from COVID - 19 Pandemic

First Quarter 2020 | PACW | p. 5 In light of the COVID - 19 as a pandemic, we activated our Business Continuity Plan and Pandemic Task Force with a focus on the health and safety of our employees and customers. Health and safety actions taken: • Temporarily closed 19 branches; closed the lobbies of 27 branches with drive - up service only; remaining branches operating with reduced hours; temporarily closed several other office locations • Increased janitorial/cleaning services • Remote working for virtually all non - branch employees • Implemented business travel restrictions; 14 - day quarantine after personal travel • Implemented social distancing protocols Actions taken to support our employees: • Employees continuing to receive full salary and benefits, even if unable to work • Purchased additional laptops and equipment to implement remote working model • Special bonus for essential employees working on - site at branch offices/critical locations Impacts from COVID - 19 Pandemic

First Quarter 2020 | PACW | p. 6 Actions taken to support our customers and communities: • Offering short - term modifications of loan terms • Waiving loan late charges • Participation in the Paycheck Protection Program • Supporting loan customers by funding draw requests per the contractual loan terms • For deposit customers, waiving certain monthly service charges and transaction - related fees (wire fees, NSF fees, overdraft fees, stop payment fees) • Donations of $600,000 to various community organizations Areas of ongoing focus: • The health and safety of our employees and customers remains a top priority • Continue to support our employees and provide our customers and communities with essential services for the duration of this crisis • Offer support to our customers via fee waivers, participation in government sponsored programs and working with customers who request modified terms on a temporary basis • Heightened monitoring of our loan portfolio and proactive engagement with borrowers most affected by COVID - 19 Impacts from COVID - 19 Pandemic

First Quarter 2020 | PACW | p. 7 Impacts to our business and financial results: • Loan portfolio in terms of modifications and heightened monitoring of credit quality • Performed a thorough review of the loan portfolio with a special focus on segments most impacted by COVID - 19 (hotel, aviation, restaurants and retail) • Total Q1 loan downgrades of $576 million from pass/watch to special mention • Increase in borrower requests for short - term loan modifications (payment deferrals, t erm extensions) • Significant number of requests for Paycheck Protection Program loans • Adopted CECL in Q1 – the deterioration of economic conditions in March impacted the forecast and assumptions used to estimate our ACL; r ecorded a provision for credit losses of $112 million in Q1 • On March 23 rd , temporarily suspended our stock repurchase program; have not repurchased shares since February 28, 2020; program now suspended indefinitely • March market events resulted in a reassessment of goodwill – recorded impairment of $1.47 billion in Q1 • Despite these impacts, strong pre - provision net revenue, solid capital and liquidity positions Impacts from COVID - 19 Pandemic

First Quarter 2020 | PACW | p. 8 First Quarter Significant Items

First Quarter 2020 | PACW | p. 9 First Quarter Significant Items • Net loss of $1.43 billion • Loss per share of $12.23 • Recorded goodwill impairment of $1.47 billion • Excluding goodwill impairment, net earnings of $36.9 million, $0.31 EPS Operating Results Key Metrics • Net interest margin of 4.31% • Loan and lease yield of 5.54% • Cost of deposits of 59bps; 71bps in Q4 • March spot rate on deposits of 33bps • Efficiency ratio of 40.6% Loan Growth & Credit Quality • Loan production of $790 million • $167mm of loan growth in Colorado • Classified loans to total loans of 0.75% • Net charge - offs of $19.1 million; 40bps of average loans and leases • Provision for credit losses of $112.0 million; impacted by economic forecast Strong Deposit Base & Capital • Core deposits at 82% of total deposits • Noninterest - bearing demand deposits at 38% of total deposits • $21mm of deposit growth in Colorado • Tangible common equity ratio of 9.10% • CET1 ratio of 9.23%

First Quarter 2020 | PACW | p. 10 ∆ ($ in millions, except per share amounts) 1Q20 4Q19 Q / Q Total Assets 26,143$ 26,771$ -2% Loans and Leases HFI, net of deferred fees 19,745$ 18,847$ 5% Total Deposits 19,576$ 19,233$ 2% Core Deposits 16,051$ 16,187$ -1% Net (Loss) Earnings (1,433.1)$ 117.9$ -1316% (Loss) Earnings Per Share (12.23)$ 0.98$ -1348% Return on Average Assets ("ROAA") (1) -21.27% 1.77% -23.04 Return on Average Tangible Equity ("ROATE") (1) 6.88% 19.98% -13.10 Tangible Common Equity Ratio (1) 9.10% 9.79% -0.69 Tangible Book Value Per Share (1) 19.31$ 19.77$ -2% Tax Equivalent Net Interest Margin 4.31% 4.33% -0.02 Efficiency Ratio 40.6% 44.8% -4.2 Quarter - Over - Quarter Financial Highlights (1) See “Non - GAAP Measurements” slide on page 51.

First Quarter 2020 | PACW | p. 11 ∆ ($ in millions, except per share amounts) 1Q20 1Q19 Y / Y Total Assets 26,143$ 26,324$ -1% Loans and Leases HFI, net of deferred fees 19,745$ 18,308$ 8% Total Deposits 19,576$ 19,286$ 2% Core Deposits 16,051$ 16,128$ 0% Net (Loss) Earnings (1,433.1)$ 112.6$ -1373% (Loss) Earnings Per Share (12.23)$ 0.92$ -1429% Return on Average Assets ("ROAA") -21.27% 1.77% -23.04 Return on Average Tangible Equity ("ROATE") (1) 6.88% 20.64% -13.76 Tangible Common Equity Ratio (1) 9.10% 9.23% -0.13 Tangible Book Value Per Share (1) 19.31$ 18.22$ 6% Tax Equivalent Net Interest Margin 4.31% 4.69% -0.38 Efficiency Ratio 40.6% 42.4% -1.8 Year - Over - Year Financial Highlights (1) See “Non - GAAP Measurements” slide on page 51.

First Quarter 2020 | PACW | p. 12 Loans and Leases & Credit Quality

First Quarter 2020 | PACW | p. 13 Commercial mortgage Income producing and other residential Commercial construction Residential construction Asset - based Venture capital Other commercial Consumer As of March 31, 2020 ($ in millions) $ Mix $ Mix Real Estate Mortgage: Commercial 4,221$ 21% 4,641$ 25% Income producing and other residential 3,788 19% 3,519 19% Total Real Estate Mortgage 8,009 40% 8,160 44% RE Construction & Land: Commercial 1,087 6% 944 5% Residential 1,793 9% 1,408 8% Total RE Construction & Land 2,880 15% 2,352 13% Total Real Estate 10,889 55% 10,512 57% Commercial: Asset-based 3,938 20% 3,422 19% Venture capital 2,716 14% 2,027 11% Other commercial 1,772 9% 1,975 11% Total Commercial 8,426 43% 7,424 41% Consumer 430 2% 372 2% Total Loans HFI (1) 19,745$ 100% 18,308$ 100% Unfunded commitments 7,698$ 7,465$ 3/31/2020 3/31/2019 Diversified Loan and Lease Portfolio (1) Net of deferred fees and costs

First Quarter 2020 | PACW | p. 14 Other Commercial, $2,748mm, 25% SBA , $561mm , 5% Hotel , $621mm , 6% Income Producing Residential, $3,688mm, 34% Healthcare , $291mm , 3% Other Residential , $100mm , 1% Construction & Land , $2,880mm , 26% Real Estate ($10.9B) Lender Finance & Timeshare, $2,294mm, 58% Equipment Finance, $822mm, 21% Premium Finance, $490mm, 13% Other, $332mm, 8% Asset - Based ($3.9B) ($ in millions) $ Mix $ Mix Asset-Based: Lender Finance & Timeshare 2,294$ 58% 1,861$ 54% Equipment Finance 822 21% 749 22% Premium Finance 490 13% 390 11% Other 332 8% 422 13% Total Asset-Based 3,938$ 100% 3,422$ 100% 3/31/2020 3/31/2019 ($ in millions) $ Mix $ Mix Real Estate: Income Producing Residential 3,688$ 34% 3,406$ 32% Construction & Land (1) 2,880 26% 2,352 22% Other Commercial 2,748 25% 3,084 30% Hotel 621 6% 588 6% SBA 561 5% 554 5% Healthcare 291 3% 415 4% Other Residential 100 1% 113 1% Total Real Estate 10,889$ 100% 10,512$ 100% 3/31/2020 3/31/2019 Diversified Loan and Lease Portfolio (1) Of which land represents $169 million and $174 million as of 3/31/20 and 3/31/19.

First Quarter 2020 | PACW | p. 15 Secured Business Loans , $667mm , 38% Municipal , $155mm , 9% Cash Flow , $38mm , 2% SBA , $74mm , 4% Security Monitoring , $539mm , 30% HOA Loans , $73mm , 4% Unsecured Business Loans , $226mm , 13% Other Commercial ($1.8B) Equity Fund Loans, $1,403mm, 52% Expansion Stage, $934mm, 34% Early Stage, $242mm, 9% Late Stage, $137mm, 5% Venture Capital ($2.7B) ($ in millions) $ Mix $ Mix Venture Capital: Equity Fund Loans 1,403$ 52% 871$ 43% Expansion Stage 934 34% 859 42% Early Stage 242 9% 207 10% Late Stage 137 5% 90 5% Total Venture Capital 2,716$ 100% 2,027$ 100% 3/31/2020 3/31/2019 ($ in millions) $ Mix $ Mix Other Commercial: Secured Business Loans 667$ 38% 744$ 38% Security Monitoring 539 30% 633 32% Unsecured Business Loans 226 13% 221 11% Municipal 155 9% 116 6% SBA 74 4% 82 4% HOA Loans 73 4% 67 3% Cash Flow 38 2% 112 6% Total Other Commercial 1,772$ 100% 1,975$ 100% 3/31/2020 3/31/2019 Diversified Loan and Lease Portfolio

First Quarter 2020 | PACW | p. 16 $1,175 $1,436 $1,231 $1,021 $790 $1,193 $1,294 $1,288 $1,318 $1,997 $933 $1,529 $1,391 $816 $813 $1,039 $980 $838 $1,407 $1,054 $2,368 $2,730 $2,519 $2,339 $2,787 $1,972 $2,509 $2,229 $2,223 $1,867 4.0% 4.5% 5.0% 5.5% 6.0% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1Q19 2Q19 3Q19 4Q19 1Q20 Avg. Rate on Production Millions Production Disbursements Payoffs Paydowns Rate on Production ($ in millions) Production/ Disbursements Payoffs/ Paydowns Net Difference Rate on Production (1) ($ in millions) Loans Beginning Balance (2) Loans Ending Balance (2) Quarterly Change (3) 1Q20 2,787$ 1,867$ 920$ 4.31% 1Q20 18,847$ 19,745$ 898$ 4Q19 2,339 2,223 116 4.73% 4Q19 18,736 18,847 111 3Q19 2,519 2,229 290 5.28% 3Q19 18,473 18,736 263 2Q19 2,730 2,509 221 5.15% 2Q19 18,308 18,473 165 1Q19 2,368 1,972 396 5.11% 1Q19 17,958 18,308 350 Loan and Lease Production of $790 Million in 1Q20 (1) The weighted average TE rate on production presents contractual rates and does not include amortized fees. Amortized fees add ed approximately 20 basis points to loan yields in 2020 and 22 basis points in 2019. (2) Net of deferred fees and costs (3) “Quarterly Change” equals “Net Difference” plus transfers to loans held for sale, transfers to OREO, charge - offs and loan sales. (4) Disbursements in 1Q20 of $2.0bn were larger than usual as borrowers drew on lines for liquidity during pandemic crisis. Segme nts with largest disbursements were venture capital, lender finance and business loans. (4)

First Quarter 2020 | PACW | p. 17 Multi - Family Apts , 52% Condominiums , 6% Hotel , 14% Office , 6% Land , 3% Retail , 3% Mixed - Use , 8% Industrial, SFR & Other , 8% Commitments by Property Type Construction & Land Loans - $2.9 Billion at 3/31/20 Nevada , 3% Other , 9% Florida , 5% Wash. DC , 6% New York , 12% Virginia , 3% N. Carolina , 3% California , 59% Portfolio by State Commitment Amount Count 3/31/20 Tota l 3/31/20 % of Tota l $0 ~ $10mm 134 $ 537mm 9% $10mm ~ $25mm 61 923mm 16% $25mm ~ $50mm 54 2,049mm 34% $50mm ~ $100mm 20 1,372mm 23% $100mm ~ $150mm 9 1,104mm 18% Total $ 5,986mm LTC < 40 %, 5% LTC 40% - 50%, 12% LTC 50% - 60%, 38% LTC 60% - 70%, 30% LTC > 70%, 15% Commitments By Loan - To - Cost Range Risk Rating Count 3/31/20 Tota l Pass/Watch 276 $ 2,869mm Special Mention 1 10.6mm Classified 1 0.4mm Total 278 $ 2,880mm

First Quarter 2020 | PACW | p. 18 California, 63% Washington DC , 8% Florida , 6% Washington , 5% Virginia , 6% N. Carolina , 5% Others , 7% $1.4bn (1) MF Construction Portfolio Multi - Family Loans Principal Balance Amount Count 3/31/20 Tota l 3/31/20 % of Tota l < $1mm 430 $ 189mm 5% $1mm ~ $5mm 657 1,571mm 43% $5mm ~ $10mm 159 1,089mm 30% $10mm ~ $25mm 42 603mm 16% $25mm ~ $106mm 3 236mm 6% Total $ 3,688mm California, 71% Washington , 7% Florida , 6% Oregon , 4% New York , 3% Colorado , 3% Others , 6% $3.7bn (2) Income Producing Residential Portfolio Income Producing Residential (1) MF construction commitments total $3.1bn and have a weighted average loan - to - cost ratio of 60% as of March 31, 2020. (2) $1.6bn, or approximately 44%, of MF portfolio is 50% risk - weighted. LTC 40% - 50%, 10% LTC 50% - 60 %, 44% LTC 60% - 70 %, 27% LTC > 70 %, 19% Commitments By Loan - To - Cost Range Risk Rating Count 3/31/20 Tota l Pass/Watch 1,285 $ 3,685mm Special Mention - - Classified 6 3mm Total 1,291 $ 3,688mm

First Quarter 2020 | PACW | p. 19 Residential 51% Commercial 46% Personal Emergency Response Systems 3% Portfolio by Revenue Source (1) Security Monitoring Loans ▪ New technology is disrupting the security alarm business, causing increased customer acquisition costs and customer attrition and, thereby, adversely impacting business models and valuations ▪ Portfolio balance declined $80mm in 1Q20; heightened monitoring of our credit risk for this portfolio in 2Q19; discontinued new originations in October 2019 ▪ $233mm or 43% of the portfolio are SNCs ▪ 5.24% WAC; 100% variable rate; WAM 24 months ▪ $126mm of unfunded commitments; subject to an availability formula based upon eligible recurring monthly revenue ▪ A lending product since 2003; experienced one loss in 2019 ($1.5mm) and losses on two credits ($6.1mm) in 1Q20 ▪ In 1Q20 special mention loans increased $11mm and classified loans decreased $7mm Risk Rating Count 3/31/20 Tota l Pass/Watch 23 $ 337mm Special Mention 7 174mm Classified 2 28mm Total 32 $ 539mm Balance by Tranche Count 3/31/20 Tota l < $5mm 8 $ 20mm $5mm ~ $10mm 10 83mm $10mm ~ $20mm 3 45mm $20mm ~ $30mm 2 53mm $30mm ~ $40mm 7 241mm $40mm ~ $55mm 2 97mm Total 32 $ 539mm (1) Revenue allocated based upon the borrowers’ customer mix. $94mm $138mm $170mm $137mm 2020 2021 2022 2023-24 Contractual Maturity Table

First Quarter 2020 | PACW | p. 20 ▪ Hotel industry significantly impacted by the pandemic and widespread travel restrictions. We are maintaining contact with borrowers and monitoring flash reports to assess impacts. ▪ No “conference center” hotels. ▪ Hotel construction borrowers are sophisticated sponsors with significant invested equity and resources. ▪ Majority of CRE and construction borrowers are experienced hotel operators with top franchise brands. ▪ Some hotel construction borrowers have seen delays in materials or labor shortages as a result of COVID - 19. ▪ Average loan - to - cost for hotel construction loans is 47%. ▪ SBA guarantied portions retained (75% average guaranty). ▪ $293.4mm CRE and $10.6mm construction downgraded to special mention in 1Q20. ▪ Indirect exposure from timeshare receivable and inventory loans ($364mm), hotel - related lender finance loans ($49mm) and venture banking loans ($9mm). Hotel Portfolio Overview CA, $ 475mm Other, $49mm FL, $ 126mm TN, $ 55mm NV, $ 46mm GA, $ 22mm SC, $ 21mm NY , $291 Hotel by State $1.1bn (5.6% of total loans) Global Top Tier Flags, $309mm, 12 properties Other, $9mm, 8 properties Boutique , $208mm, 9 properties National Economy Flags, $95mm, 18 properties Hotel CRE by Brands Count 3/31/20 Commitment 3/31/20 Outstanding Avg. O/S Balance Hotel CRE 45 $ 688mm $ 621mm $ 13.8mm Hotel Construction 19 853mm 432mm 22.7mm Hotel SBA 62 36mm 32mm 0.5mm Total 126 $ 1,577mm $ 1,085mm $ 8.6mm Hotels by Product Risk Rating Count 3/31/20 Tota l Pass/Watch 66 $ 779mm Special Mention 48 304mm Classified 12 2mm Total 126 $ 1,085mm

First Quarter 2020 | PACW | p. 21 Construction 18% CRE 74% SBA 8% Retail Loan Types Outstanding balance $643mm (1) /3.3% of total loans Urban luxury center 10% Lifestyle center 33% Suburban retail/strip center 27% Single Tenant 30% CRE Retail Property Types $476mm/2.4% of Loans Loan Types • Construction - significant projects include: ▪ A lifestyle center in Studio City, CA ▪ A retail storefront in Santa Monica, CA ▪ A grocery - anchored community shopping center in Cary, NC ▪ High traffic retail infill on San Vicente Blvd. in Los Angeles • Owner - Occupied ▪ Not adversely affected by rental market volatility ▪ SBA retail is 100% owner - occupied o SBA guarantied portions retained (75% average guaranty) • CRE ▪ Traditional retail - focused commercial real estate lending including: o National Lending $56mm portfolio mostly consists of two lifestyle centers (NJ & IL) totaling $47mm which were downgraded to special mention in 1Q20 o Community Banking $420mm portfolio almost entirely in California focused on suburban retail/strip centers and single tenant retail storefronts o No traditional retail mall exposure (1) $5.1 million in classified loans at March 31, 2020 (down from $5.5 million at December 31, 2019) with related SBA guaranties totaling $ 0.2 million . $48mm downgraded to special mention in 1Q20. Retail Real Estate Portfolio Overview Risk Rating Count 3/31/20 Tota l Pass/Watch 226 $ 590mm Special Mention 5 48mm Classified 14 5mm Total 245 $ 643mm

First Quarter 2020 | PACW | p. 22 ▪ Majority of credits are to well - known international and domestic airlines. ▪ Passenger transportation exposure is mostly narrow - body jets which have historically performed well in maintaining collateral value. ▪ One credit for $13.3 million more exposed to COVID - 19 as borrower is a tour operator with airline and cruise line. ▪ No classified or nonaccrual aviation loans at March 31, 2020. ▪ $119 million downgraded to special mention in 1Q20. Aviation Portfolio Overview Passenger , 66% Engine leases , 10% Freight , 24% Aviation by Type, $346mm (1.7% of total loans) Count 3/31/20 Commitment 3/31/20 Outstanding Avg. O/S Balance Passenger 26 $ 233mm $ 230mm $ 8.8mm Freight 13 83mm 81mm 6.3mm Engine leases 4 35mm 35mm 8.8mm Total 43 $ 351mm $ 346mm $ 8.0mm Aviation Portfolio by Type Risk Rating Count 3/31/20 Tota l Pass/Watch 26 $ 227mm Special Mention 17 119mm Classified - - Total 43 $ 346mm

First Quarter 2020 | PACW | p. 23 Other Impacted Portfolios • $162 million total exposure (0.8% of total loans and operating leases) of which $94 million is real estate secured • $98 million are SBA guaranteed (75% average guaranty as we don’t sell the guaranteed portions) • $10.3 million of classified loans at March 31, 2020 (estimated SBA guaranties of $7.7 million) Restaurant Oil Services • $137 million total exposure (0.7% of total loans and operating leases) • $73 million loans receivable • $64 million operating leases • All credits are related to support services and $125.1 million is collateralized by equipment (railcars $64.5mm, land - based fracking equipment $32.4mm, offshore vessels $28.2mm) and $11.6 million is ABL lines collateralized by A/R and inventory • $65 million to borrowers rated BB - or above of which $51 million is rated BBB+ • $123 million, or 90%, outstanding to six borrowers with average balance of $20.5 million • One loan of $15.3 million classified and nonaccrual since 1Q’15

First Quarter 2020 | PACW | p. 24 Shared National Credits (SNCs) $2.3bn $1.2bn $840mm $755mm $810mm 2016 2017 2018 2019 1Q20 Total $2.3bn $1.2bn $840mm $755mm $810mm Classified $70mm $41mm $67mm $40mm $33mm Nonaccrual $13mm $15mm $- $15mm $28mm SNC Loans Healthcare RE, $42mm , 5% Equity Funds Lines, $83mm , 10% RE Development , $30mm , 4% Consumer Finance , $261mm , 32% RE Rental & Leasing , $52mm , 6% Other , $39mm , 5% Security Monitoring, $ 233mm , 29% Information , $70mm , 9% $810mm of SNC Loans at 3/31/2020 ▪ SNCs are not a line of business. SNC relationships are included in business line balances. ▪ SNCs are facilities of $100 million or greater with a federally supervised agent/lead bank shared by three or more federally supervised financial institutions. ▪ Credit underwriting standards are the same as standards applied to all loans. ▪ No energy - related or franchise restaurant SNCs. 65% decrease

First Quarter 2020 | PACW | p. 25 ($ in thousands) 1Q19 2Q19 3Q19 4Q19 1Q20 Nonaccrual Loans and Leases HFI $ 88,527 81,265 99,113 92,353 95,602 As a % of Loans and Leases HFI % 0.48% 0.44% 0.53% 0.49% 0.48% Nonperforming Assets $ 91,818 82,737 100,479 92,793 97,303 As a % of Loans and Leases & Foreclosed Assets % 0.50% 0.45% 0.54% 0.49% 0.49% Classified Loans and Leases HFI (1) $ 190,305 190,979 188,607 175,912 147,705 As a % of Loans and Leases HFI % 1.04% 1.03% 1.01% 0.93% 0.75% Credit Loss Provision $ 4,000 8,000 7,000 3,000 112,000 As a % of Average Loans and Leases (annualized) % 0.09% 0.18% 0.15% 0.06% 2.36% Net Charge-offs $ 191 11,244 4,485 767 19,110 As a % of Average Loans and Leases (annualized) % 0.00% 0.25% 0.10% 0.02% 0.40% Trailing Twelve Months Net Charge-offs $ 38,994 33,102 35,868 16,687 35,606 As a % of Average Loans and Leases % 0.22% 0.18% 0.20% 0.09% 0.19% Allowance for Credit Losses (ACL) (2) $ 173,142 169,898 172,413 174,646 274,863 As a % of Loans and Leases HFI % 0.95% 0.92% 0.92% 0.93% 1.39% ACL / Nonaccrual Loans and Leases HFI % 195.58% 209.07% 173.96% 189.11% 287.51% Quarterly Credit Quality Trends (1) Classified loans and leases are those with a credit risk rating of substandard or doubtful. (2) Allowance for credit losses includes allowance for loan and lease losses and reserve for unfunded loan commitments.

First Quarter 2020 | PACW | p. 26 0.22% 0.18% 0.20% 0.09% 0.19% 1Q19 2Q19 3Q19 4Q19 1Q20 Trailing Twelve Months Net Charge - offs / Average Loans and Leases Key Credit Trends – Loans HFI 0.48% 0.44% 0.53% 0.49% 0.48% 1Q19 2Q19 3Q19 4Q19 1Q20 Nonaccrual Loans and Leases / Loans and Leases 0.95% 0.92% 0.92% 0.93% 1.39% 1Q19 2Q19 3Q19 4Q19 1Q20 ACL / Loans and Leases 1.04% 1.03% 1.01% 0.93% 0.75% 1Q19 2Q19 3Q19 4Q19 1Q20 Classified Loans and Leases/ Loans and Leases

First Quarter 2020 | PACW | p. 27 ($ in thousands) 2017 2018 2019 1Q20 Nonaccrual Loans and Leases HFI $ 155,784 79,333 92,353 95,602 As a % of Loans and Leases HFI % 0.92% 0.44% 0.49% 0.48% Nonperforming Assets $ 157,113 84,632 92,793 97,303 As a % of Loans and Leases & Foreclosed Assets % 0.93% 0.47% 0.49% 0.49% Classified Loans and Leases HFI (2) $ 278,405 237,110 175,912 147,705 As a % of Loans and Leases HFI % 1.65% 1.32% 0.93% 0.75% Credit Loss Provision $ 59,000 (3) 45,000 22,000 112,000 As a % of Average Loans and Leases % 0.37% 0.27% 0.12% 2.36% Net Charge-offs $ 62,957 43,758 16,687 19,110 As a % of Average Loans and Leases % 0.40% 0.26% 0.09% 0.40% Allowance for Credit Losses (ACL) (4) $ 161,647 169,333 174,646 274,863 As a % of Loans and Leases HFI % 0.96% 0.94% 0.93% 1.39% ACL / Nonaccrual Loans and Leases HFI % 103.76% 213.45% 189.11% 287.51% Annual Credit Quality Trends (1) (1) Amounts and ratios related to 2020, 2019 and 2018 periods are for total loans and leases. Amounts and ratios for 2017 are for No n - PCI loans and leases. (2) Classified loans and leases are those with a credit risk rating of substandard or doubtful. (3) Net of $14.1 million negative provision recorded in conjunction with the sale of $1.5 billion of cash flow loans. (4) Allowance for credit losses includes allowance for loan and lease losses and reserve for unfunded loan commitments.

First Quarter 2020 | PACW | p. 28 % of Loan % of Loan 3/31/2020 12/31/2019 ($ in thousands) Balance Category Balance Category Balance Balance Real estate mortgage: Commercial 19,088$ 0.5% 18,346$ 0.4% 1,807$ 1,735$ Income producing and other residential 2,308 0.1% 2,478 0.1% 1,064 2,094 Total real estate mortgage 21,396 0.3% 20,824 0.3% 2,871 3,829 Real estate construction and land: Commercial 351 0.0% 364 0.0% - - Residential - 0.0% - 0.0% 241 1,429 Total R.E. construction and land 351 0.0% 364 0.0% 241 1,429 Commercial: Commercial - Asset-based 17,104 0.4% 30,162 0.8% - 19 Commercial - Venture capital 18,612 0.7% 12,916 0.6% 183 - Commercial - Other commercial 37,726 2.1% 27,594 1.6% 4,393 2,258 Total commercial 73,442 0.9% 70,672 0.9% 4,576 2,277 Consumer 413 0.1% 493 0.1% 518 1,006 Total 95,602$ 0.5% 92,353$ 0.5% 8,206$ 8,541$ 3/31/2020 Nonaccrual Loans and Leases 12/31/2019 Accruing and 30 -89 Days Past Due Nonaccrual & Delinquent Loan and Lease Detail

First Quarter 2020 | PACW | p. 29 (In thousands) Classified Special Mention Pass/Watch Total Classified Special Mention Pass/Watch Total Real estate mortgage: Commercial 33,908$ 371,667$ 3,815,074$ 4,220,649$ 33,535$ 30,070$ 4,139,082$ 4,202,687$ Income producing and other residential 7,083 2,491 3,778,721 3,788,295 8,600 1,711 3,759,749 3,770,060 Total real estate mortgage 40,991 374,158 7,593,795 8,008,944 42,135 31,781 7,898,831 7,972,747 Real estate construction and land: Commercial 351 10,577 1,076,577 1,087,505 364 - 1,082,004 1,082,368 Residential - - 1,792,748 1,792,748 - 1,429 1,654,005 1,655,434 Total real estate construction and land 351 10,577 2,869,325 2,880,253 364 1,429 2,736,009 2,737,802 Commercial: Asset-based 23,218 152,137 3,763,047 3,938,402 32,223 38,936 3,677,248 3,748,407 Venture capital 31,110 173,947 2,510,780 2,715,837 35,316 74,813 2,069,293 2,179,422 Other commercial 51,498 186,368 1,534,119 1,771,985 65,261 174,785 1,527,621 1,767,667 Total commercial 105,826 512,452 7,807,946 8,426,224 132,800 288,534 7,274,162 7,695,496 Consumer 537 1,471 427,876 429,884 613 1,212 439,002 440,827 Total 147,705$ 898,658$ 18,698,942$ 19,745,305$ 175,912$ 322,956$ 18,348,004$ 18,846,872$ March 31, 2020 December 31, 2019 Loan Portfolio By Risk Rating ▪ Increase in special mention loans of $576 million due primarily to loan downgrades caused by COVID - 19 pandemic ▪ Real estate mortgage - commercial increase due to $293 million in hotel downgrades and two retail centers totaling $47mm ▪ Commercial - asset - based increase due primarily to $119 million in aviation downgrades ▪ Commercial - venture capital increase due primarily to $72 million in expansion stage lending downgrades ▪ Commercial - other commercial increase due to $11 million in security monitoring downgrades

First Quarter 2020 | PACW | p. 30 $175 $182 $275 $7 $77 $20 $19 $(19) $(4) 4Q19 Adoption Impact 1/1/2020 Economic Forecast Individually Evaluated Loan Downgrades Net Charge- offs Other, net 1Q20 ACL Reserve Build (in millions) Current Expected Credit Losses (CECL) ▪ Day 1 transition adjustment under CECL consisted of allowance for credit losses (ACL) increase of $7.3 million (approximately 4%) and decrease to retained earnings of $5.3 million ▪ Our ACL methodology includes numerous models and assumptions that rely on historical information, current conditions and reasonable/supportable forecasts among others. One key assumption is the economic forecast which was based on Moody’s baseline economic forecast dated March 27 th however this is just one of many assumptions used in the ACL process ▪ Economic forecast reflects a recession with significant deterioration in key macro - economic variables such as unemployment and Real GDP due to COVID - 19 impacts ▪ Elected 5 - year capital phase - in under recently proposed regulatory capital rule guidance 0.93% 0.97% 1.39%

First Quarter 2020 | PACW | p. 31 Allowance for Credit Losses Amount % of Loans and Leases Amount % of Loans and Leases Amount % of Loans and Leases Allowance for loan and lease losses: Real estate mortgage: Commercial 20,389$ 0.49% 27,667$ 0.66% 69,243$ 1.64% Income producing and other residential 24,186 0.64% 22,216 0.59% 22,128 0.58% Total real estate mortgage 44,575 0.56% 49,883 0.63% 91,372 1.14% Real estate construction and land: Commercial 16,247 1.50% 7,462 0.69% 18,082 1.66% Residential 14,297 0.86% 14,490 0.88% 22,091 1.23% Total real estate construction and land 30,544 1.12% 21,952 0.80% 40,173 1.39% Commercial: Asset-based 21,027 0.56% 27,581 0.74% 33,907 0.86% Venture capital 24,670 1.13% 20,572 0.94% 34,082 1.25% Other commercial 15,832 0.90% 20,235 1.14% 19,581 1.11% Total commercial 61,528 0.80% 68,389 0.89% 87,570 1.04% Consumer 2,138 0.48% 2,179 0.49% 2,177 0.51% Allowance for loans and leases losses 138,785$ 0.74% 142,402$ 0.76% 221,292$ 1.12% Reserve for unfunded commitments 35,861 0.19% 39,571 0.21% 53,571 0.27% Allowance for credit losses 174,646$ 0.93% 181,974$ 0.97% 274,863$ 1.39% December 31, 2019 Incurred Losses January 1, 2020 CECL Transition March 31, 2020 CECL (In thousands)

First Quarter 2020 | PACW | p. 32 Deposits

First Quarter 2020 | PACW | p. 33 Noninterest - bearing demand Interest checking Money market Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 March 31, 2020 Noninterest - bearing demand Interest checking Money market Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 March31, 2019 ($ in millions) Deposit Category Average $ Quarter-End $ Mix Average $ Quarter-End $ Mix Noninterest-bearing demand 7,358$ 7,511$ 38% 7,784$ 7,713$ 40% Interest checking 3,396 3,333 17% 2,973 3,163 16% Money market 4,668 4,712 24% 4,878 4,714 25% Savings 498 495 3% 553 538 3% Total core deposits 15,920 16,051 82% 16,188 16,128 84% Non-core non-maturity deposits 650 836 4% 465 454 2% Total non-maturity deposits 16,570 16,887 86% 16,653 16,582 86% Time deposits $250,000 and under 2,112 2,086 11% 1,859 2,259 12% Time deposits over $250,000 572 603 3% 428 445 2% Total time deposits 2,684 2,689 14% 2,287 2,704 14% Total deposits (1) 19,254$ 19,576$ 100% 18,940$ 19,286$ 100% At or For the Quarter Ended March 31, 2020 At or For the Quarter Ended March 31, 2019 Deposit Detail (1) Does not include $1.4 billion and $2.2 billion of client investment funds held at March 31, 2020 and March 31, 2019, respectively. Core: 82% Core: 84%

First Quarter 2020 | PACW | p. 34 ($ in millions) Time Deposits Time Deposits Total Time Maturities $250,000 and Under Over $250,000 Deposits Due in three months or less 1,010$ 154$ 1,164$ Due in over three months through six months 690 158 848 Due in over six months through twelve months 315 278 593 Due in over 12 months through 24 months 57 11 68 Due in over 24 months 14 2 16 Total 2,086$ (1) 603$ 2,689$ March 31, 2020 Deposit Portfolio (1) Includes brokered deposits of $1.2 billion with a weighted average maturity of 3 months and a weighted average cost of 1.68%. $19.3 $18.8 $19.7 $19.2 $19.6 1.24% 1.35% 1.34% 1.14% 0.95% 0.73% 0.81% 0.83% 0.71% 0.59% 0.00% 0.50% 1.00% 1.50% 2.00% 0.0 5.0 10.0 15.0 20.0 25.0 1Q19 2Q19 3Q19 4Q19 1Q20 Cost Balance ($ in Billions) Core Deposits Non-Core Deposits Cost of Average Interest-Bearing Deposits Cost of Average Total Deposits

First Quarter 2020 | PACW | p. 35 Net Interest Margin

First Quarter 2020 | PACW | p. 36 5.11% 5.18% 4.99% 4.91% 4.69% 4.72% 4.46% 4.33% 4.31% 3.60% 3.64% 3.61% 3.64% 3.58% 3.58% 3.45% 3.43% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 PACW Reported TE NIM KRX Median NIM Industry Leading Tax Equivalent Net Interest Margin Source: S&P Global Market Intelligence. Peer data is through 4Q19. Peer group is banks in the KBW Nasdaq Regional Bank Index – “KRX”.

First Quarter 2020 | PACW | p. 37 6.11% 6.30% 6.20% 6.27% 6.16% 6.26% 5.91% 5.67% 5.54% 5.92% 6.09% 6.06% 6.11% 6.09% 6.18% 5.86% 5.60% 5.44% 4.60% 4.78% 4.89% 5.01% 5.08% 5.09% 4.99% 4.79% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 PACW - Reported TE Avg. Loan Yield PACW - Loan Yield Excluding Discount Accretion KRX - Median Loan Yield Higher Loan Yields From Disciplined & Diversified Lending Source: S&P Global Market Intelligence. Peer data is through 4Q19. Peer group is banks in the KBW Nasdaq Regional Bank Index – “KRX”.

First Quarter 2020 | PACW | p. 38 0.31% 0.37% 0.46% 0.62% 0.73% 0.81% 0.83% 0.71% 0.59% 0.43% 0.52% 0.60% 0.71% 0.81% 0.86% 0.85% 0.77% 1.20% 1.45% 1.74% 1.92% 2.40% 2.40% 2.19% 1.76% 1.39% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 PACW - Reported Average Total Deposits Cost KRX - Median Deposits Cost Avg Fed Funds Rate Deposit Franchise – 1Q20 Cost of 59 Basis Points Source: S&P Global Market Intelligence. Peer data through 4Q19. Peer group is banks in the KBW Nasdaq Regional Bank Index – “KRX”.

First Quarter 2020 | PACW | p. 39 Interest Rate Components of the Loan and Lease Portfolio 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Floor is In the Money Now cut 25 bps cut 50 bps cut 75 bps % of Variable Rate Loans Cumulative Balance ($ 000’s) Amount of Rate Cut Floor Analysis - Variable Rate Loans as of March 31, 2020 Volume Percent ($ in millions) Interest Rate Scenario Forecasted Net Interest Income (Tax Equivalent) Percentage Change from Base Forecasted Net Interest Margin (Tax Equivalent) Up 300 bps $ 1,140.7 12.6% 4.75% Up 200 bps 1,037.9 2.4% 4.32% Up 100 bps 1,024.1 1.1% 4.26% Base case 1,013.3 - 4.22% Down 25 bps 1,010.8 - 0.3% 4.21% Down 50 bps 1,006.3 - 0.7% 4.19% Note: The above table presents forecasted net interest income and net interest margin for the next 12 months using the forward yield curve as of March 31, 2020 as the base scenario and shocking the static balance sheet for immediate and sustained parallel upward movements in interest rates of 100, 200 and 300 basis points and a downward movement in interest rates of 25 and 50 basis points.

First Quarter 2020 | PACW | p. 40 Investment Securities

First Quarter 2020 | PACW | p. 41 Diversified Investment Portfolio (1) Fair value at 3/31/20 (2) Yield is for 1Q20 (3) Not rated category comprised primarily of not rated revenue bonds backed by an underlying agency security or CRA - related revenue bon ds. Asset - backed Securities , $211mm , 6% Agency Residential MBS , $290mm , 8% Agency Residential CMOs , $1,102mm , 29% Agency Commercial MBS , $1,125mm , 30% Private CMOs , $98mm , 3% Municipal Securities , $734mm , 19% Collateralized Loan Obligations , $130mm , 3% Other , $68mm , 2% $3.8 Billion Total Investment Portfolio (1) 5.6 6.0 6.3 6.3 6.1 5.0 4.5 4.4 4.4 3.5 2 3 4 5 6 7 1Q19 2Q19 3Q19 4Q19 1Q20 Years Average Life and Effective Duration Average Life Effective Duration S&P Ratings % Total Issue Type % Total AAA 11% G.O. Limited 5% AA 83% G.O . Unlimited 49% A 2% Revenue 46% BBB 1% Not Rated (3) 3% 100% 100% 2.99% overall portfolio tax equivalent yield (2) Municipal Securities Composition

First Quarter 2020 | PACW | p. 42 Controlled Expenses

First Quarter 2020 | PACW | p. 43 41.7% 39.8% 40.9% 41.7% 42.4% 41.6% 42.3% 44.8% 40.6% 56.3% 54.8% 53.6% 54.1% 54.3% 54.3% 54.1% 56.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 PACW Efficiency Ratio Median Efficiency Ratio Banks in KRX Index Efficiency Ratio Trend

First Quarter 2020 | PACW | p. 44 Company Overview

First Quarter 2020 | PACW | p. 45 Product Offerings Community Banking Products National Lending Products Venture Banking Products • Attractive branch network with 74 full service branches in California and one in Denver, Colorado • Offers a full suite of deposit products and services, including on - line banking • Business lending products: includes secured business loans, asset - based and tax - exempt • Real estate lending products: includes multifamily, commercial real estate and construction • Limited consumer loan offerings • Borrower relationships generally include a deposit account • Diversified by loan and lease type, geography and industry o Asset - Based Lending (ABL) ▪ Lender Finance & Timeshare, Equipment Financing and Premium Finance o Commercial Real Estate ▪ Multifamily, Hotel, Office, Retail, Industrial, SBA and Construction • Focus on small to middle - market businesses • Expertise in niche segments (aviation lending and corporate finance) limits new competitors • Borrower relationships may include deposit accounts and treasury services • Five product offerings: Technology, Life Sciences, Fund Finance, Structured Finance, Specialty Finance • Offices located in key innovative hubs across the United States • Offers a comprehensive suite of financial services for venture - backed companies and their venture capital and private equity investors • Provides comprehensive treasury management solutions, including credit cards, international - related products and asset management services to clients • Borrower relationships almost always include a deposit account • Branch office in Durham, North Carolina

First Quarter 2020 | PACW | p. 46 Nationwide Lender Combined with California Branch Network Los Angeles, CA Durham, NC Chevy Chase, MD Chicago, IL Denver, CO New York, NY Boston, MA Minneapolis, MN Austin, TX Campbell, CA Menlo Park, CA San Francisco, CA San Diego, CA National Lending office Venture Banking office Community Banking branch Colorado Market Expansion • Jon Lorenz - C olorado Market President • Added executive office • Added loan production office • Opened full - service branch in November 2019 • Community Banking team of 16 employees

First Quarter 2020 | PACW | p. 47 Our Acquisition History and Strategy 19 Acquisitions 4 Acquisitions Square1 Assets added: $4.6bn CUB Assets added: $3.5bn 3 FDIC Assisted Acquisitions CapitalSource Assets added: $10.7bn Key Drivers of Accretion Core Funding Customer Retention Cost Savings In - Market Consolidation Market Expansion Asset Generation Capability Strong Core Deposit Base Sound Strategic Focus 2000 - 2007 2008 - 2010 2010 - 2013 2014 2015 2017

First Quarter 2020 | PACW | p. 48 Balancing Quality Growth with Our Credit De - Risking Strategy 2014 2015 2016 2017 2018 2019 Sold PWEF Leasing Growth Initiatives De - Risking Initiatives New National Construction Lending Team New Multi - Family Lending Team Square 1 Acquisition CapitalSource Acquisition New Tax - Exempt Lending Team CUB Acquisition Colorado Market Expansion Strengthened construction lending criteria - lower loan - to - cost ratio Began to reduce exposure to Healthcare Real Estate Sold $1.5bn of Cash Flow Loans Began to emphasize Equity Fund Loans in Venture Banking Sold Celtic Capital Discontinued originating Security Monitoring and NL Healthcare RE loans

First Quarter 2020 | PACW | p. 49 Credit De - Risking – Specific Portfolios $955mm $844mm $452mm $334mm $291mm 2016 2017 2018 2019 1Q20 Healthcare Real Estate Loans 16% 22% 39% 55% 52% 46% 45% 45% 32% 34% 15% 12% 5% 3% 5% 23% 21% 11% 10% 9% $2.0b $2.1b $2.0b $2.2b $2.7b 2016 2017 2018 2019 1Q20 Venture Banking Loan Portfolio Equity Fund Loans Expansion Stage Late Stage Early Stage ▪ Exited Cash Flow lending business in 2017 ▪ Shifted Venture Banking strategy to grow Equity Fund Loans ▪ Reduced exposure to Healthcare R.E. and in October 2019 ceased originating NL Healthcare R.E. loans ▪ Results: ▪ Decreased classified loans from 2.67% at YE2016 to 0.75% at 1Q20 ▪ Decreased nonaccrual loans from 1.11% at YE2016 to 0.48% at 1Q20 $2,373mm $279mm $114mm $38mm $38mm 2016 2017 2018 2019 1Q20 Commercial Cash Flow Loans Exited Business Reduced Exposure

First Quarter 2020 | PACW | p. 50 Solid Capital Position – March 31, 2020 Basel III Fully Balance Ratio Balance Ratio Phased-In Tier 1 leverage capital 2,232,231$ 8.64% 1,292,065$ 5.00% 4.00% Common equity Tier 1 capital 2,232,231$ 9.23% 1,571,635$ 6.50% 7.00% Tier 1 capital 2,232,231$ 9.23% 1,934,320$ 8.00% 8.50% Total capital 2,952,318$ 12.21% 2,417,900$ 10.00% 10.50% Actual Well Capitalized Minimum Requirement

First Quarter 2020 | PACW | p. 51 ($ in thousands, except per share amounts) March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Tangible Common Equity Ratio & Tangible Book Value Per Share Stockholders' equity 3,390,389$ 4,954,697$ 4,920,108$ 4,852,010$ 4,790,982$ Less: Intangible assets 1,113,116 2,587,064 2,591,217 2,596,050 2,600,920 Tangible common equity 2,277,273$ 2,367,633$ 2,328,891$ 2,255,960$ 2,190,062$ Total assets 26,143,267$ 26,770,806$ 26,724,627$ 26,344,414$ 26,324,138$ Less: Intangible assets 1,113,116 2,587,064 2,591,217 2,596,050 2,600,920 Tangible assets 25,030,151$ 24,183,742$ 24,133,410$ 23,748,364$ 23,723,218$ Equity to assets ratio 12.97% 18.51% 18.41% 18.42% 18.20% Tangible common equity ratio (1) 9.10% 9.79% 9.65% 9.50% 9.23% Book value per share 28.75$ 41.36$ 41.06$ 40.49$ 39.86$ Tangible book value per share (2) 19.31$ 19.77$ 19.43$ 18.83$ 18.22$ Shares outstanding 117,916,789 119,781,605 119,831,192 119,829,104 120,201,149 Return on Average Tangible Equity Net (loss) earnings (1,433,111)$ 117,881$ 110,026$ 128,125$ 112,604$ Add back: goodwill impairment 1,470,000$ -$ -$ -$ -$ Adjusted net earnings 36,889$ 117,881$ 110,026$ 128,125$ 112,604$ Average stockholders' equity 4,956,778$ 4,930,182$ 4,890,746$ 4,818,889$ 4,815,965$ Less: Average intangible assets 2,569,189 2,589,217 2,593,925 2,598,762 2,603,842 Average tangible common equity 2,387,589$ 2,340,965$ 2,296,821$ 2,220,127$ 2,212,123$ Return on average equity -116.28% 9.49% 8.93% 10.66% 9.48% Return on average tangible equity (3) 6.88% 19.98% 19.01% 23.15% 20.64% (1) Tangible common equity divided by tangible assets (2) Tangible common equity divided by shares outstanding (3) Annualized adjusted net earnings divided by average tangible common equity Non - GAAP Measurements The Company uses certain non - GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. These non - GAAP financial measures should not be considered a substitute for financial measures presented in accordance with GAAP and may be different from non - GAAP financial measures used by other companies. The table below presents reconciliations of certain GAAP to non - GAAP financial measures:

First Quarter 2020 | PACW | p. 52 Bank Holding Companies and Banks in the KRX Index Total Assets ( in billions ) Source: S&P Global Market Intelligence. Total assets as of December 31, 2019. Banks in the KRX Index as of March 31, 2020. 1 Popular, Inc. BPOP $ 52.115 26 Prosperity Bancshares, Inc. PB $ 22.093 2 Signature Bank SBNY $ 50.616 27 Fulton Financial Corporation FULT $ 21.897 3 Synovus Financial Corp. SNV $ 48.203 28 BancorpSouth Bank BXS $ 21.053 4 TCF Financial Corp. TCF $ 46.652 29 First Hawaiian, Inc. FHB $ 20.599 5 East West Bancorp, Inc. EWBC $ 44.196 30 Old National Bancorp ONB $ 20.412 6 First Horizon National Corporation FHN $ 43.311 31 United Bankshares , Inc. UBSI $ 19.751 7 Wintrust Financial Corporation WTFC $ 36.621 32 Cathay General Bancorp CATY $ 18.097 8 F.N.B. Corporation FNB $ 34.615 33 Bank of Hawaii Corporation BOH $ 18.095 9 Valley National Bancorp VLY $ 33.766 34 First Midwest Bancorp, Inc. FMBI $ 17.850 10 BankUnited , Inc. BKU $ 32.871 35 Cadence Bancorporation CADE $ 17.785 11 Texas Capital Bankshares , Inc. TCBI $ 32.548 36 Washington Federal, Inc. WAFD $ 16.423 12 Associated Banc - Corp ASB $ 32.386 37 Hope Bancorp, Inc. HOPE $ 15.667 13 Cullen/Frost Bankers, Inc. CFR $ 32.248 38 Home Bancshares, Inc. HOMB $ 15.032 14 IBERIABANK Corporation IBKC $ 31.713 39 First Financial Bancorp FFBC $ 14.512 15 Hancock Whitney Corporation HWC $ 30.601 40 Columbia Banking Systems, Inc. COLB $ 14.080 16 Sterling Bancorp STL $ 30.586 41 Glacier Bancorp, Inc. GBCI $ 13.684 17 Webster Financial Corporation WBS $ 30.389 42 Trustmark Corporation TRMK $ 13.585 18 Umpqua Holdings Corporation UMPQ $ 28.847 43 United Community Banks, Inc. UCBI $ 12.916 19 Pinnacle Financial Partners, Inc. PNFP $ 27.805 44 Community Bank Systems, Inc. CBU $ 11.410 20 Western Alliance Bancorporation WAL $ 26.822 45 CVB Financial Corp. CVBF $ 11.282 21 PacWest Bancorp PACW $ 26.771 46 Provident Financial Services, Inc. PFS $ 9.918 22 Investors Bancorp ISBC $ 26.725 47 Boston Private Financial Holdings, Inc. BPFH $ 8.831 23 Commerce Bankshares , Inc. CBSH $ 26.066 48 First Financial Bankshares , Inc. FFIN $ 8.262 24 UMB Financial Corporation UMBF $ 24.143 49 First Commonwealth Financial Corporation FCF $ 8.152 25 Bank OZK OZK $ 23.559 50 Brookline Bancorp, Inc. BRKL $ 7.878

XML

Cover	Apr. 21, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 21, 2020
Entity File Number	001-36408
Entity Registrant Name	PacWest Bancorp
Entity Central Index Key	0001102112
Entity Tax Identification Number	33-0885320
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	9701 Wilshire Blvd.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Beverly Hills
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90212
City Area Code	310
Local Phone Number	887-8500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	PACW
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false