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) July 16, 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 July 16, 2020, PacWest Bancorp (the “Company”) announced its results of operations and financial condition for the three and six months ended June 30, 2020. The press release announcing the financial results for the three and six months ended June 30, 2020 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation regarding the Company’s financial results for the three and six months ended June 30, 2020 is furnished as Exhibit 99.2 and incorporated herein by reference.

Item 8.01 Other Information

PacWest Bancorp has changed the timing of its third quarter dividend announcement from the first day of the second month following quarter-end until the middle of the second month following quarter-end. A definitive date will be communicated once the dividend is declared. The timing is being changed to allow additional time for regulatory approval as the Company is required to notify the Board of Governors of the Federal Reserve System (“FRB”) prior to declaring and paying a cash dividend to our shareholders and may not pay a dividend if the FRB objects. This approval, which was obtained for the second quarter dividend payment, is due to the impact of the trailing 12-month earnings being negative as a result of the $1.47 billion goodwill impairment charge in the first quarter of 2020. Additionally, the Company continues to seek FDIC and California Department of Business Oversight approval for quarterly dividends from Pacific Western Bank to the Company given the negative retained earnings at the Bank since the goodwill impairment charges during the previous financial crisis. The shift in announcement timing was made to provide the Company’s Board of Directors and regulators the opportunity to review final quarterly financial results and financial projections. The Company expects to continue this cadence in future quarters.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits.

Exhibit
Number	Description

99.1	Press release dated July 16, 2020 announcing PacWest’s results of operations and financial condition for the three and six months ended June 30, 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: July 16, 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:	303-802-8900	714-989-4705
Contact:	William Black
	Executive Vice President
	Strategy and Corporate Development
Phone:	919-597-7466

FOR IMMEDIATE RELEASE July 16, 2020

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE SECOND QUARTER 2020

Significant Items

• Net Earnings of $33.2 Million, or $0.28 Per Diluted Share

• Strong Pre-Provision, Pre-Tax Net Revenue (“PPNR”) of $166.2 Million

• Funded $1.2 Billion of Paycheck Protection Program Loans (“PPP”) in Q2

• Core Deposits Up $3.5 Billion or 22% in Q2; Represents 85% of Total Deposits

• Tax Equivalent Net Interest Margin of 4.20% Compared to 4.31% in Q1

• Cost of Average Total Deposits Decreased 34 Basis Points from Q1 to 25 Basis Points

• Quarter Includes $6.6 Million of Prepayment Penalties Related to Early Payoff of FHLB Term Advances and $7.7 Million of Gain on Sale of Securities

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the second quarter of 2020 of $33.2 million, or $0.28 per diluted share, compared to a net loss for the first quarter of 2020 of $1.43 billion, or $12.23 per diluted share. The increase in net earnings in the second quarter was due primarily to a $1.47 billion goodwill impairment charge in the first quarter.

Matt Wagner, President and CEO, commented, “Our focus continues to be the health and safety of our employees while assisting our customers during the COVID-19 pandemic. We assisted our customers by funding over 4,100 PPP loans in the second quarter totaling over $1.2 billion, while granting loan payment modifications on approximately $1.8 billion, or 9% of loans and leases, most during May and June. The ultimate resolution of these modified loans is largely dependent on how long the pandemic impacts consumer demand and business activity. ”

Mr. Wagner added, “We continued enhanced monitoring of our loan portfolios and saw less loan migration to special mention during the second quarter after being proactive in downgrading loans in the first quarter. We recorded another significant provision for credit losses largely due to deterioration in the macro-economic variables used in our CECL forecast.”

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Mr. Wagner continued, “Our operations remain healthy and continue to produce increasing revenues while generating internal capital. PPNR increased by $5.3 million in the second quarter to $166.2 million, which resulted in a PPNR return on average assets of 2.51%. These solid operating earnings highlight the resilience of our business as we continue to navigate the challenging economic conditions.”

FINANCIAL HIGHLIGHTS

	At or For the									At or For the
	Three Months Ended									Six Months Ended
	June 30,			March 31,			Increase			June 30,						Increase
Financial Highlights	2020			2020			(Decrease)			2020			2019			(Decrease)
	(Dollars in thousands, except per share data)
Net earnings (loss)	$	33,204		$	(1,433,111	)	$	1,466,315		$	(1,399,907	)	$	240,729		$	(1,640,636	)
Diluted earnings (loss) per share	$	0.28		$	(12.23	)	$	12.51		$	(11.98	)	$	1.99		$	(13.97	)
Return on average assets		0.50	%		(21.27	)%		21.77			(10.48	)%		1.88	%		(12.36	)
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") (1)	$	166,172		$	160,877		$	5,295		$	327,049		$	346,017		$	(18,968	)
PPNR return on average assets (1)		2.51	%		2.39	%		0.12			2.45	%		2.70	%		(0.25	)
Return on average tangible equity (1)		6.39	%		6.88	%		(0.49	)		6.64	%		22.79	%		(16.15	)
Net interest margin ("NIM") (tax equivalent)		4.20	%		4.31	%		(0.11	)		4.26	%		4.70	%		(0.44	)
Yield on average loans and leases (tax equivalent)		5.01	%		5.54	%		(0.53	)		5.27	%		6.21	%		(0.94	)
Cost of average total deposits		0.25	%		0.59	%		(0.34	)		0.41	%		0.77	%		(0.36	)
Efficiency ratio		42.9	%		40.6	%		2.3			41.8	%		42.0	%		(0.2	)
Total assets	$	27,365,738		$	26,143,267		$	1,222,471		$	27,365,738		$	26,344,414		$	1,021,324
Loans and leases held for investment, net of deferred fees	$	19,694,631		$	19,745,305		$	(50,674	)	$	19,694,631		$	18,472,852		$	1,221,779
Noninterest-bearing demand deposits	$	8,629,543		$	7,510,218		$	1,119,325		$	8,629,543		$	7,299,213		$	1,330,330
Core deposits	$	19,535,814		$	16,050,522		$	3,485,292		$	19,535,814		$	15,617,488		$	3,918,326
Total deposits	$	22,928,579		$	19,575,837		$	3,352,742		$	22,928,579		$	18,805,756		$	4,122,823
As percentage of total deposits:
Noninterest-bearing demand deposits		38	%		38	%		-			38	%		39	%		(1	)
Core deposits		85	%		82	%		3			85	%		83	%		2
Equity to assets ratio		12.62	%		12.97	%		(0.35	)		12.62	%		18.42	%		(5.80	)
Tangible common equity ratio (1)		8.93	%		9.10	%		(0.17	)		8.93	%		9.50	%		(0.57	)
Book value per share	$	29.17		$	28.75		$	0.42		$	29.17		$	40.49		$	(11.32	)
Tangible book value per share (1)	$	19.80		$	19.31		$	0.49		$	19.80		$	18.83		$	0.97

(1) Non-GAAP measure.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased by $4.5 million to $254.3 million for the second quarter of 2020 compared to $249.7 million for the first quarter of 2020 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 yield on average loans and leases and securities. The tax equivalent yield on average loans and leases was 5.01% for the second quarter of 2020 compared to 5.54% for the first quarter of 2020. The decrease in the yield on average loans and leases was due principally to lower market rates, a lower rate on loan production from the impact of the PPP loans, and lower loan discount accretion. Excluding the PPP loans, which have a coupon rate of 1%, the tax equivalent yield on average loans and leases was 5.10%.

The tax equivalent NIM was 4.20% for the second quarter of 2020 compared to 4.31% for the first quarter of 2020. The decrease in the NIM was due mainly to lower market rates resulting in lower loan and lease and security yields, a lower rate on loan production from the impact of the PPP loans, and lower loan discount accretion, offset partially by the lower cost of average interest-bearing liabilities. Excluding the PPP loans, the tax equivalent NIM was 4.25%.

The cost of average total deposits decreased to 0.25% for the second quarter of 2020 from 0.59% for the first quarter of 2020. 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. The cost of deposits at June 30, 2020 was 0.19%.

Provision for Credit Losses

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

	Three Months Ended
	June 30,		March 31,		Increase
Provision for Credit Losses	2020		2020		(Decrease)
	(In thousands)
Addition to allowance for loan and lease losses	$	93,000	$	98,000	$	(5,000	)
Addition to reserve for unfunded loan commitments		27,000		14,000		13,000
Total provision for credit losses	$	120,000	$	112,000	$	8,000

The provision for credit losses was $120.0 million for the second quarter of 2020, up $8.0 million from the first quarter of 2020, driven by reserve builds that reflected significant deterioration and continued uncertainty in the key macro-economic forecast variables such as unemployment and GDP as a result of the impact of COVID-19.

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Noninterest Income

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

	Three Months Ended
	June 30,		March 31,		Increase
Noninterest Income	2020		2020		(Decrease)
	(In thousands)
Service charges on deposit accounts	$	2,004	$	2,658	$	(654	)
Other commissions and fees		10,111		9,721		390
Leased equipment income		12,037		12,251		(214	)
Gain on sale of loans and leases		346		87		259
Gain on sale of securities		7,715		182		7,533
Other income:
Dividends and gains on equity investments		2,947		28		2,919
Warrant income		1,973		837		1,136
Other		1,725		3,336		(1,611	)
Total noninterest income	$	38,858	$	29,100	$	9,758

Noninterest income increased by $9.8 million to $38.9 million for the second quarter of 2020 compared to $29.1 million for the first quarter of 2020 due primarily to a $7.5 million increase in gain on sale of securities and a $2.9 million increase in dividends and gains on equity investments, partially offset by a $1.6 million decrease in other income. The increase in gain on sale of securities resulted from the sale of $122 million of securities in the second quarter. The increase in dividends and gains on equity investments resulted from increases in the fair value of equity investments still held and a $1.5 million gain on the sale of an equity investment. The decrease in other income was primarily due to $1.1 million of bankruptcy proceeds received on a former credit in the first quarter.

Noninterest Expense

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

	Three Months Ended
	June 30,			March 31,		Increase
Noninterest Expense	2020			2020		(Decrease)
	(In thousands)
Compensation	$	61,910		$	61,282	$	628
Occupancy		14,494			14,207		287
Data processing		7,102			6,454		648
Other professional services		4,146			4,258		(112	)
Insurance and assessments		9,373			4,249		5,124
Intangible asset amortization		3,882			3,948		(66	)
Leased equipment depreciation		7,102			7,205		(103	)
Foreclosed assets (income) expense, net		(146	)		66		(212	)
Customer related expense		4,408			3,932		476
Loan expense		3,379			2,650		729
Other		11,315			9,719		1,596
Total operating expense		126,965			117,970		8,995
Goodwill impairment		-			1,470,000		(1,470,000	)
Total noninterest expense	$	126,965		$	1,587,970	$	(1,461,005	)

Page 4

Noninterest expense decreased by $1.46 billion to $127.0 million for the second quarter of 2020 compared to $1.59 billion for the first quarter of 2020 attributable primarily to a $1.47 billion goodwill impairment charge in the first quarter. Excluding the goodwill impairment charge, noninterest expense increased by $9.0 million to $127.0 million. This increase was mainly due to a $5.1 million increase in insurance and assessments expense, a $1.6 million increase in other expense, a $0.7 million increase in loan expense, and a $0.6 million increase in data processing expense. The increase in insurance and assessments expense was due to an increase in FDIC assessment expense resulting from an increase in our assessment rate due primarily to the first quarter loss from the goodwill impairment charge. The higher assessment rate will continue for one year. The increase in other expense was due to $6.6 million in prepayment penalties incurred from the early payoff of $750 million of FHLB term advances, partially offset by the reversal of a $1.5 million accrual for operational loss contingencies and decreases in various business expenses due to less activity as a result of COVID-19. The FHLB term advances had a weighted average interest rate of 0.96% and the prepayment decision was made after the significant drop in market rates in March and the expectation of continued low rates for an extended time. The increase in loan expense was due primarily to higher loan-related legal and workout expenses. The increase in data processing expense was due to a one-time expense to create systems for the origination and loan documentation submissions necessary for the Paycheck Protection Program.

Income Taxes

The effective income tax rate was 28.1% for the second quarter of 2020 compared to (0.8)% for the first quarter of 2020. Excluding non-deductible goodwill impairment, the effective income tax rate for the first quarter of 2020 was 24.5%. 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%. The higher effective tax rate in the second quarter was mainly due to tax expense related to restricted stock vestings combined with benefits recorded in the first quarter related to the filing of amended state returns.

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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						Six Months Ended
Roll Forward of Loans and Leases Held	June 30,			March 31,			June 30,
for Investment, Net of Deferred Fees (1)	2020			2020			2020
	(Dollars in thousands)
Balance, beginning of period	$	19,745,305		$	18,846,872		$	18,846,872
Additions:
Production		1,802,956			789,746			2,592,702
Disbursements		800,458			1,997,080			2,797,538
Total production and disbursements		2,603,414			2,786,826			5,390,240
Reductions:
Payoffs		(612,837	)		(812,707	)		(1,425,544	)
Paydowns		(2,022,376	)		(1,053,705	)		(3,076,081	)
Total payoffs and paydowns		(2,635,213	)		(1,866,412	)		(4,501,625	)
Sales		(3,089	)		-			(3,089	)
Transfers to foreclosed assets		-			(1,776	)		(1,776	)
Charge-offs		(15,786	)		(20,205	)		(35,991	)
Total reductions		(2,654,088	)		(1,888,393	)		(4,542,481	)
Net (decrease) increase		(50,674	)		898,433			847,759
Balance, end of period	$	19,694,631		$	19,745,305		$	19,694,631
Weighted average rate on production (2)		2.33	%		4.31	%		2.93	%

(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 21 basis points to loan yields in 2020.

Loans and leases held for investment, net of deferred fees, decreased by $50.7 million in the second quarter of 2020 to $19.7 billion at June 30, 2020. We funded $1.2 billion of PPP loans in the second quarter and continued ongoing fundings in the construction loan class, however, this was more than offset by paydowns on existing credits in the venture capital and asset-based loan portfolio classes. Many borrowers who drew down on their loans in the first quarter to ensure liquidity during the COVID-19 pandemic paid back the funds in the second quarter as the economy began to reopen. In addition, our venture banking equity funds business saw balances decline $662.7 million in the second quarter after growing $203.2 million in the first quarter, as drawdowns by equity funds in late March were repaid during the second quarter. The weighted average rate on production decreased to 2.33% since most of the loan production related to PPP loans at a coupon rate of 1%. Excluding PPP loans, the weighted average rate on production was 5.39%.

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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:

	June 30, 2020					March 31, 2020					June 30, 2019
			% of					% of					% of
Loan and Lease Portfolio	Balance		Total			Balance		Total			Balance		Total
	(In thousands)
Real estate mortgage:
Commercial	$	4,222,075		22	%	$	4,220,649		21	%	$	4,435,274		24	%
Income producing and other
residential		3,733,659		19	%		3,788,295		19	%		3,640,752		20	%
Total real estate mortgage		7,955,734		41	%		8,008,944		40	%		8,076,026		44	%
Real estate construction and land:
Commercial		1,167,609		6	%		1,087,505		6	%		972,891		5	%
Residential		2,172,919		11	%		1,792,748		9	%		1,403,239		8	%
Total real estate construction and land		3,340,528		17	%		2,880,253		15	%		2,376,130		13	%
Total real estate		11,296,262		58	%		10,889,197		55	%		10,452,156		57	%
Commercial:
Asset-based		3,412,431		17	%		3,938,402		20	%		3,606,007		19	%
Venture capital		1,814,341		9	%		2,715,837		14	%		2,194,743		12	%
Other commercial		2,760,278		14	%		1,771,985		9	%		1,773,564		10	%
Total commercial		7,987,050		40	%		8,426,224		43	%		7,574,314		41	%
Consumer		411,319		2	%		429,884		2	%		446,382		2	%
Total loans and leases held for investment, net of deferred fees	$	19,694,631		100	%	$	19,745,305		100	%	$	18,472,852		100	%
Total unfunded loan commitments	$	7,745,921				$	7,697,724				$	7,610,899

Allowance for Credit Losses

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

	Three Months Ended June 30, 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	$	221,292		$	53,571	$	274,863
Charge-offs		(15,786	)		-		(15,786	)
Recoveries		2,544			-		2,544
Net charge-offs		(13,242	)		-		(13,242	)
Provision		93,000			27,000		120,000
Ending balance	$	301,050		$	80,571	$	381,621

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	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

The allowance for credit losses increased by $106.8 million in the second quarter of 2020 to $381.6 million at June 30, 2020. Substantially all of the increase in the allowance for credit losses during the second quarter was attributable to deterioration in the macro-economic variables used in our CECL forecast. Net charge-offs decreased from $19.1 million in the first quarter to $13.2 million in the second quarter.

The allowance for credit losses as a percentage of loans and leases held for investment was 1.94% at June 30, 2020 and 1.39% at March 31, 2020. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.53% at June 30, 2020 and 1.12% at March 31, 2020. The allowance for credit losses and allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding PPP loans that are fully guaranteed and do not carry any allowance, was 2.06% and 1.63% at June 30, 2020, respectively.

Gross charge-offs for the second quarter of 2020 were $15.8 million and included $6.5 million for venture capital loans, $5.0 million for other commercial loans, and $4.2 million for commercial real estate mortgage loans compared to gross charge-offs for the first quarter of 2020 of $20.2 million that included $11.5 million for an asset-based oil industry loan and $7.3 million for other commercial loans.

Recoveries for the second quarter of 2020 were $2.5 million and included $2.3 million for other commercial loans compared to recoveries for the first quarter of 2020 of $1.1 million that included $0.4 million for other commercial loans and $0.4 million for asset-based loans.

For the second quarter of 2020 and first quarter of 2020, annualized net charge-offs to average loans and leases were 0.27% and 0.40%, respectively.

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Deposits and Client Investment Funds

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

	June 30, 2020					March 31, 2020					June 30, 2019
			% of					% of					% of
Deposit Composition	Balance		Total			Balance		Total			Balance		Total
	(Dollars in thousands)
Noninterest-bearing demand	$	8,629,543		38	%	$	7,510,218		38	%	$	7,299,213		39	%
Interest checking		4,858,168		21	%		3,333,147		17	%		3,220,353		17	%
Money market		5,498,150		24	%		4,712,118		24	%		4,578,083		24	%
Savings		549,953		2	%		495,039		3	%		519,839		3	%
Total core deposits		19,535,814		85	%		16,050,522		82	%		15,617,488		83	%
Non-core non-maturity deposits		1,217,266		5	%		836,157		4	%		436,833		2	%
Total non-maturity deposits		20,753,080		90	%		16,886,679		86	%		16,054,321		85	%
Time deposits $250,000 and under		1,522,928		7	%		2,086,188		11	%		2,284,023		12	%
Time deposits over $250,000		652,571		3	%		602,970		3	%		467,412		3	%
Total time deposits		2,175,499		10	%		2,689,158		14	%		2,751,435		15	%
Total deposits	$	22,928,579		100	%	$	19,575,837		100	%	$	18,805,756		100	%

At June 30, 2020, core deposits totaled $19.5 billion, or 85% of total deposits, including $8.6 billion of noninterest-bearing demand deposits, or 38% of total deposits. Core deposits increased by $3.5 billion in the second quarter driven by PPP loan proceeds being deposited into customers’ accounts and venture banking which saw deposits increase by $2.0 billion to a record $8.7 billion as of June 30, 2020.

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 June 30, 2020 were $1.4 billion, of which $1.1 billion was managed by PWAM.

Page 9

CREDIT QUALITY

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

	June 30,			March 31,			Increase
Credit Quality Metrics	2020			2020			(Decrease)
	(Dollars in thousands)
NPAs and Performing TDRs:
Nonaccrual loans and leases held for investment (1)	$	166,113		$	95,602		$	70,511
Accruing loans contractually past due 90 days or more		-			-			-
Foreclosed assets, net		1,449			1,701			(252	)
Total nonperforming assets ("NPAs")	$	167,562		$	97,303		$	70,259
Performing TDRs held for investment	$	15,037		$	8,978		$	6,059
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.84	%		0.48	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.85	%		0.49	%
Loan and Lease Credit Risk Ratings:
Pass	$	18,635,004		$	18,698,942		$	(63,938	)
Special mention		766,397			898,658			(132,261	)
Classified		293,230			147,705			145,525
Total loans and leases held for investment, net of deferred fees	$	19,694,631		$	19,745,305		$	(50,674	)
Classified loans and leases held for investment to loans and leases held for investment		1.49	%		0.75	%
Allowance for Credit Losses:
Allowance for credit losses	$	381,621		$	274,863		$	106,758
Provision for credit losses (for the quarter)	$	120,000		$	112,000		$	8,000
Net charge-offs (for the quarter)	$	13,242		$	19,110		$	(5,868	)
Net charge-offs to average loans and leases (for the quarter)		0.27	%		0.40	%
Allowance for credit losses to loans and leases held for investment		1.94	%		1.39	%
Allowance for credit losses to nonaccrual loans and leases held for investment		229.7	%		287.5	%

(1) Nonaccrual loans include guaranteed amounts of $16.2 million at June 30, 2020 and $16.0 million at March 31, 2020.

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.

During the second quarter of 2020, classified loans and leases increased by $145.5 million, while special mention loans and leases decreased by $132.3 million. The increase in classified loans and leases and the decrease in special mention loans and leases was due primarily to three security monitoring loans totaling $119.2 million and two retail real estate loans totaling $42.0 million migrating out of special mention and into the classified category.

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:

	June 30, 2020				March 31, 2020				Increase (Decrease)
			Accruing				Accruing					Accruing
			and 30-89				and 30-89					and 30-89
			Days Past				Days Past					Days Past
	Nonaccrual		Due		Nonaccrual		Due		Nonaccrual			Due
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	61,771	$	-	$	19,088	$	1,807	$	42,683		$	(1,807	)
Income producing and other residential		2,207		-		2,308		1,064		(101	)		(1,064	)
Total real estate mortgage		63,978		-		21,396		2,871		42,582			(2,871	)
Real estate construction and land:
Commercial		337		-		351		-		(14	)		-
Residential		-		1,021		-		241		-			780
Total real estate construction and land		337		1,021		351		241		(14	)		780
Commercial:
Asset-based		19,013		3,697		17,104		-		1,909			3,697
Venture capital		8,270		1,924		18,612		183		(10,342	)		1,741
Other commercial		73,995		191		37,726		4,393		36,269			(4,202	)
Total commercial		101,278		5,812		73,442		4,576		27,836			1,236
Consumer		520		1,067		413		518		107			549
Total held for investment	$	166,113	$	7,900	$	95,602	$	8,206	$	70,511		$	(306	)

During the second quarter of 2020, nonaccrual loans and leases increased by $70.5 million due primarily to two retail real estate loans and one security monitoring loan.

Page 11

CAPITAL

The following table presents certain actual capital ratios and ratios excluding PPP loans:

	June 30, 2020
				Excluding			March 31,
				PPP			2020
	Actual (1)			Loans (1)			Actual
PacWest Bancorp Consolidated:
Tier 1 leverage capital ratio		8.93	%		9.22	%(3)		8.63	%
Common equity tier 1 capital ratio		9.97	%		9.97	%		9.22	%
Total capital ratio		13.18	%		13.18	%		12.07	%
Tangible common equity ratio (2)		8.93	%		9.36	%(3)		9.10	%

(1) Capital information for June 30, 2020 is preliminary.

(2) Non-GAAP measure.

(3) PPP loans have been excluded from total assets in denominator as they are zero risk-weighted.

STOCK REPURCHASE PROGRAM

During the second quarter of 2020, there were no stock repurchases. On April 21, 2020, we announced that stock repurchases were suspended indefinitely.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $27 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.

Page 12

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. The length of the COVID-19 pandemic and the severity of its impact on key macro-economic indicators such as unemployment and GDP may have a material impact on our allowance for credit losses and related provision for credit losses. Continued deterioration in general business and economic conditions could adversely affect PacWest Bancorp’s revenues and the values of its assets, including goodwill, 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, sustained high 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, and legal and regulatory developments. 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.

Page 13

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
	June 30,			March 31,			June 30,
	2020			2020			2019
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	174,059		$	172,570		$	185,075
Interest-earning deposits in financial institutions		1,747,077			439,690			422,663
Total cash and cash equivalents		1,921,136			612,260			607,738
Securities available-for-sale, at estimated fair value		3,851,141			3,757,663			3,807,244
Federal Home Loan Bank stock, at cost		17,250			54,244			43,146
Total investment securities		3,868,391			3,811,907			3,850,390
Gross loans and leases held for investment		19,780,476			19,806,394			18,532,740
Deferred fees, net		(85,845	)		(61,089	)		(59,888	)
Total loans and leases held for investment, net of deferred fees		19,694,631			19,745,305			18,472,852
Allowance for loan and lease losses		(301,050	)		(221,292	)		(135,037	)
Total loans and leases held for investment, net		19,393,581			19,524,013			18,337,815
Equipment leased to others under operating leases		295,191			306,530			300,668
Premises and equipment, net		42,299			39,799			38,162
Foreclosed assets, net		1,449			1,701			1,472
Goodwill		1,078,670			1,078,670			2,548,670
Core deposit and customer relationship intangibles, net		30,564			34,446			47,380
Other assets		734,457			733,941			612,119
Total assets	$	27,365,738		$	26,143,267		$	26,344,414
LIABILITIES:
Noninterest-bearing deposits	$	8,629,543		$	7,510,218		$	7,299,213
Interest-bearing deposits		14,299,036			12,065,619			11,506,543
Total deposits		22,928,579			19,575,837			18,805,756
Borrowings		60,000			2,295,000			1,913,059
Subordinated debentures		460,772			458,994			456,112
Accrued interest payable and other liabilities		463,489			423,047			317,477
Total liabilities		23,912,840			22,752,878			21,492,404
STOCKHOLDERS' EQUITY (1)		3,452,898			3,390,389			4,852,010
Total liabilities and stockholders’ equity	$	27,365,738		$	26,143,267		$	26,344,414
Book value per share	$	29.17		$	28.75		$	40.49
Tangible book value per share (2)	$	19.80		$	19.31		$	18.83
Shares outstanding		118,374,603			117,916,789			119,829,104

(1) Includes net unrealized gain on securities
available-for-sale, net	$	145,038	$	90,916	$	73,066
(2) Non-GAAP measure.

Page 14

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2020			2020			2019			2020			2019
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	247,851		$	262,278		$	284,236		$	510,129		$	558,465
Investment securities		26,038			27,446			28,948			53,484			58,628
Deposits in financial institutions		186			1,608			1,349			1,794			1,999
Total interest income		274,075			291,332			314,533			565,407			619,092
Interest expense:
Deposits		13,075			28,247			38,720			41,322			72,955
Borrowings		1,319			6,778			7,210			8,097			14,920
Subordinated debentures		5,402			6,560			7,705			11,962			15,443
Total interest expense		19,796			41,585			53,635			61,381			103,318
Net interest income		254,279			249,747			260,898			504,026			515,774
Provision for credit losses		120,000			112,000			8,000			232,000			12,000
Net interest income after
provision for credit losses		134,279			137,747			252,898			272,026			503,774
Noninterest income:
Service charges on deposit accounts		2,004			2,658			3,771			4,662			7,501
Other commissions and fees		10,111			9,721			11,590			19,832			22,598
Leased equipment income		12,037			12,251			9,182			24,288			18,464
Gain on sale of loans and leases		346			87			326			433			326
Gain on sale of securities		7,715			182			22,192			7,897			24,353
Other income		6,645			4,201			3,832			10,846			8,715
Total noninterest income		38,858			29,100			50,893			67,958			81,957
Noninterest expense:
Compensation		61,910			61,282			68,956			123,192			139,801
Occupancy		14,494			14,207			14,457			28,701			28,777
Data processing		7,102			6,454			6,817			13,556			13,742
Other professional services		4,146			4,258			4,629			8,404			9,142
Insurance and assessments		9,373			4,249			4,098			13,622			8,136
Intangible asset amortization		3,882			3,948			4,870			7,830			9,740
Leased equipment depreciation		7,102			7,205			5,558			14,307			11,209
Foreclosed assets (income) expense, net		(146	)		66			(146	)		(80	)		(117	)
Acquisition, integration and reorganization costs		-			-			-			-			618
Customer related expense		4,408			3,932			3,405			8,340			6,348
Loan expense		3,379			2,650			3,451			6,029			6,336
Goodwill impairment		-			1,470,000			-			1,470,000			-
Other expense		11,315			9,719			9,332			21,034			17,982
Total noninterest expense		126,965			1,587,970			125,427			1,714,935			251,714
Earnings (loss) before income taxes		46,172			(1,421,123	)		178,364			(1,374,951	)		334,017
Income tax expense		12,968			11,988			50,239			24,956			93,288
Net earnings (loss)	$	33,204		$	(1,433,111	)	$	128,125		$	(1,399,907	)	$	240,729
Basic and diluted earnings (loss) per share	$	0.28		$	(12.23	)	$	1.07		$	(11.98	)	$	1.99
Dividends declared and paid per share	$	0.25		$	0.60		$	0.60		$	0.85		$	1.20

Page 15

PACWEST BANCORP AND SUBSIDIARIES

NET EARNINGS (LOSS) PER SHARE CALCULATIONS

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2020			2020			2019			2020			2019
	(In thousands, except per share data)
Basic Earnings (Loss) Per Share:
Net earnings (loss)	$	33,204		$	(1,433,111	)	$	128,125		$	(1,399,907	)	$	240,729
Less: earnings allocated to unvested restricted stock (1)		(362	)		(939	)		(1,190	)		(1,251	)		(2,343	)
Net earnings (loss) allocated to common shares	$	32,842		$	(1,434,050	)	$	126,935		$	(1,401,158	)	$	238,386
Weighted-average basic shares and unvested restricted stock outstanding		118,192			118,775			120,042			118,484			121,128
Less: weighted-average unvested restricted stock outstanding		(1,606	)		(1,495	)		(1,462	)		(1,551	)		(1,407	)
Weighted-average basic shares outstanding		116,586			117,280			118,580			116,933			119,721
Basic earnings (loss) per share	$	0.28		$	(12.23	)	$	1.07		$	(11.98	)	$	1.99
Diluted Earnings (Loss) Per Share:
Net earnings (loss) allocated to common shares	$	32,842		$	(1,434,050	)	$	126,935		$	(1,401,158	)	$	238,386
Weighted-average diluted shares outstanding		116,586			117,280			118,580			116,933			119,721
Diluted earnings (loss) per share	$	0.28		$	(12.23	)	$	1.07		$	(11.98	)	$	1.99

(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
	June 30, 2020							March 31, 2020							June 30, 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)	$	19,951,603	$	248,474		5.01	%	$	19,065,035	$	262,764		5.54	%	$	18,239,690	$	284,513		6.26	%
Investment securities (3)		3,846,459		27,430		2.87	%		3,853,217		28,641		2.99	%		3,790,436		29,462		3.12	%
Deposits in financial institutions		733,142		186		0.10	%		537,384		1,608		1.20	%		228,702		1,349		2.37	%
Total interest-earning assets (1)		24,531,204		276,090		4.53	%		23,455,636		293,013		5.02	%		22,258,828		315,324		5.68	%
Other assets		2,090,023							3,643,404							3,590,361
Total assets	$	26,621,227						$	27,099,040						$	25,849,189
Liabilities and Stockholders' Equity:
Interest checking	$	4,001,750		1,573		0.16	%	$	3,466,812		7,135		0.83	%	$	3,242,960		10,644		1.32	%
Money market		6,114,354		2,856		0.19	%		5,247,866		10,016		0.77	%		5,046,021		14,604		1.16	%
Savings		524,335		33		0.03	%		497,959		160		0.13	%		525,648		227		0.17	%
Time		2,475,858		8,613		1.40	%		2,684,143		10,936		1.64	%		2,731,156		13,245		1.95	%
Total interest-bearing deposits		13,116,297		13,075		0.40	%		11,896,780		28,247		0.95	%		11,545,785		38,720		1.35	%
Borrowings		871,110		1,319		0.61	%		2,026,749		6,778		1.35	%		1,142,223		7,210		2.53	%
Subordinated debentures		459,466		5,402		4.73	%		458,399		6,560		5.76	%		454,901		7,705		6.79	%
Total interest-bearing liabilities		14,446,873		19,796		0.55	%		14,381,928		41,585		1.16	%		13,142,909		53,635		1.64	%
Noninterest-bearing demand deposits		8,292,151							7,357,717							7,544,027
Other liabilities		435,353							402,617							343,364
Total liabilities		23,174,377							22,142,262							21,030,300
Stockholders' equity		3,446,850							4,956,778							4,818,889
Total liabilities and stockholders' equity	$	26,621,227						$	27,099,040						$	25,849,189
Net interest income (1)			$	256,294						$	251,428						$	261,689
Net interest spread (1)						3.98	%						3.86	%						4.04	%
Net interest margin (1)						4.20	%						4.31	%						4.72	%
Total deposits (4)	$	21,408,448	$	13,075		0.25	%	$	19,254,497	$	28,247		0.59	%	$	19,089,812	$	38,720		0.81	%

(1) Tax equivalent.

(2) Includes discount accretion on acquired loans of $2.5 million, $4.8 million, and $3.5 million for the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, respectively.

(3) Includes tax-equivalent adjustments of $1.4 million, $1.2 million, and $0.5 million for the three months ended June 30, 2020, March 31, 2020, and June 30, 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

	June 30,			March 31,			December 31,			September 30,			June 30,
	2020			2020			2019			2019			2019
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	174,059		$	172,570		$	172,585		$	252,596		$	185,075
Interest-earning deposits in financial institutions		1,747,077			439,690			465,039			483,405			422,663
Total cash and cash equivalents		1,921,136			612,260			637,624			736,001			607,738
Securities available-for-sale		3,851,141			3,757,663			3,797,187			3,817,348			3,807,244
Federal Home Loan Bank stock		17,250			54,244			40,924			26,865			43,146
Total investment securities		3,868,391			3,811,907			3,838,111			3,844,213			3,850,390
Gross loans and leases held for investment		19,780,476			19,806,394			18,910,740			18,796,011			18,532,740
Deferred fees, net		(85,845	)		(61,089	)		(63,868	)		(60,468	)		(59,888	)
Total loans and leases held for investment, net of deferred fees		19,694,631			19,745,305			18,846,872			18,735,543			18,472,852
Allowance for loan and lease losses		(301,050	)		(221,292	)		(138,785	)		(138,552	)		(135,037	)
Total loans and leases held for investment, net		19,393,581			19,524,013			18,708,087			18,596,991			18,337,815
Equipment leased to others under operating leases		295,191			306,530			324,084			295,854			300,668
Premises and equipment, net		42,299			39,799			38,585			37,926			38,162
Foreclosed assets, net		1,449			1,701			440			1,366			1,472
Goodwill		1,078,670			1,078,670			2,548,670			2,548,670			2,548,670
Core deposit and customer relationship intangibles, net		30,564			34,446			38,394			42,547			47,380
Other assets		734,457			733,941			636,811			621,059			612,119
Total assets	$	27,365,738		$	26,143,267		$	26,770,806		$	26,724,627		$	26,344,414
LIABILITIES:
Noninterest-bearing deposits	$	8,629,543		$	7,510,218		$	7,243,298		$	7,441,185		$	7,299,213
Interest-bearing deposits		14,299,036			12,065,619			11,989,738			12,292,018			11,506,543
Total deposits		22,928,579			19,575,837			19,233,036			19,733,203			18,805,756
Borrowings		60,000			2,295,000			1,759,008			1,253,031			1,913,059
Subordinated debentures		460,772			458,994			458,209			456,145			456,112
Accrued interest payable and other liabilities		463,489			423,047			365,856			362,140			317,477
Total liabilities		23,912,840			22,752,878			21,816,109			21,804,519			21,492,404
STOCKHOLDERS' EQUITY (1)		3,452,898			3,390,389			4,954,697			4,920,108			4,852,010
Total liabilities and stockholders’ equity	$	27,365,738		$	26,143,267		$	26,770,806		$	26,724,627		$	26,344,414
Book value per share	$	29.17		$	28.75		$	41.36		$	41.06		$	40.49
Tangible book value per share (2)	$	19.80		$	19.31		$	19.77		$	19.43		$	18.83
Shares outstanding		118,374,603			117,916,789			119,781,605			119,831,192			119,829,104

(1) Includes net unrealized gain on securities available-for-sale, net	$	145,038	$	90,916	$	78,658	$	95,887	$	73,066
(2) Non-GAAP measure.

Page 18

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS (LOSS)  

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,		June 30,
	2020			2020			2019			2019		2019
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	247,851		$	262,278		$	263,402		$	275,978	$	284,236
Investment securities		26,038			27,446			28,135			28,806		28,948
Deposits in financial institutions		186			1,608			2,056			2,424		1,349
Total interest income		274,075			291,332			293,593			307,208		314,533
Interest expense:
Deposits		13,075			28,247			34,802			40,703		38,720
Borrowings		1,319			6,778			5,189			6,852		7,210
Subordinated debentures		5,402			6,560			6,983			7,417		7,705
Total interest expense		19,796			41,585			46,974			54,972		53,635
Net interest income		254,279			249,747			246,619			252,236		260,898
Provision for credit losses		120,000			112,000			3,000			7,000		8,000
Net interest income after provision for credit losses		134,279			137,747			243,619			245,236		252,898
Noninterest income:
Service charges on deposit accounts		2,004			2,658			3,611			3,525		3,771
Other commissions and fees		10,111			9,721			10,170			10,855		11,590
Leased equipment income		12,037			12,251			10,648			9,615		9,182
Gain on sale of loans and leases		346			87			23			765		326
Gain on sale of securities		7,715			182			184			908		22,192
Other income		6,645			4,201			2,540			7,761		3,832
Total noninterest income		38,858			29,100			27,176			33,429		50,893
Noninterest expense:
Compensation		61,910			61,282			74,637			71,424		68,956
Occupancy		14,494			14,207			14,541			14,089		14,457
Data processing		7,102			6,454			6,770			7,044		6,817
Other professional services		4,146			4,258			4,261			4,400		4,629
Insurance and assessments		9,373			4,249			4,168			4,100		4,098
Intangible asset amortization		3,882			3,948			4,153			4,833		4,870
Leased equipment depreciation		7,102			7,205			6,856			5,951		5,558
Foreclosed assets (income) expense, net		(146	)		66			(3,446	)		8		(146	)
Acquisition, integration and reorganization costs		-			-			(269	)		-		-
Customer related expense		4,408			3,932			3,952			3,539		3,405
Loan expense		3,379			2,650			2,967			3,628		3,451
Goodwill impairment		-			1,470,000			-			-		-
Other expense		11,315			9,719			5,138			7,793		9,332
Total noninterest expense		126,965			1,587,970			123,728			126,809		125,427
Earnings (loss) before income taxes		46,172			(1,421,123	)		147,067			151,856		178,364
Income tax expense		12,968			11,988			29,186			41,830		50,239
Net earnings (loss)	$	33,204		$	(1,433,111	)	$	117,881		$	110,026	$	128,125
Basic and diluted earnings (loss) per share	$	0.28		$	(12.23	)	$	0.98		$	0.92	$	1.07
Dividends declared and paid per share	$	0.25		$	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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2020			2020			2019			2019			2019
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)		0.50	%		(21.27	)%		1.77	%		1.65	%		1.99	%
Return on average equity (1)		3.87	%		(116.28	)%		9.49	%		8.93	%		10.66	%
Return on average tangible equity (1)(2)		6.39	%		6.88	%		20.68	%		19.84	%		24.03	%
Efficiency ratio		42.9	%		40.6	%		44.8	%		42.3	%		41.6	%
Noninterest expense as a percentage of average assets (1)		1.92	%		23.57	%		1.86	%		1.91	%		1.95	%
Average Yields/Costs (1):
Yield on:
Average loans and leases (3)		5.01	%		5.54	%		5.67	%		5.91	%		6.26	%
Average interest-earning assets (3)		4.53	%		5.02	%		5.14	%		5.41	%		5.68	%
Cost of:
Average interest-bearing deposits		0.40	%		0.95	%		1.14	%		1.34	%		1.35	%
Average total deposits		0.25	%		0.59	%		0.71	%		0.83	%		0.81	%
Average interest-bearing liabilities		0.55	%		1.16	%		1.36	%		1.60	%		1.64	%
Net interest spread (3)		3.98	%		3.86	%		3.78	%		3.81	%		4.04	%
Net interest margin (3)		4.20	%		4.31	%		4.33	%		4.46	%		4.72	%
Average Balances:
Assets:
Loans and leases, net of deferred fees	$	19,951,603		$	19,065,035		$	18,470,583		$	18,539,281		$	18,239,690
Interest-earning assets		24,531,204			23,455,636			22,779,867			22,793,676			22,258,828
Total assets		26,621,227			27,099,040			26,380,739			26,406,603			25,849,189
Liabilities:
Noninterest-bearing deposits		8,292,151			7,357,717			7,338,888			7,487,555			7,544,027
Interest-bearing deposits		13,116,297			11,896,780			12,102,902			12,031,776			11,545,785
Total deposits		21,408,448			19,254,497			19,441,790			19,519,331			19,089,812
Borrowings		871,110			2,026,749			1,179,220			1,181,313			1,142,223
Subordinated debentures		459,466			458,399			456,997			456,011			454,901
Interest-bearing liabilities		14,446,873			14,381,928			13,739,119			13,669,100			13,142,909
Stockholders' equity		3,446,850			4,956,778			4,930,182			4,890,746			4,818,889

(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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2020			2020			2019			2019			2019
	(Dollars in thousands)
Credit Quality Ratios:
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.84	%		0.48	%		0.49	%		0.53	%		0.44	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.85	%		0.49	%		0.49	%		0.54	%		0.45	%
Classified loans and leases held for investment to loans and leases held for investment		1.49	%		0.75	%		0.93	%		1.01	%		1.03	%
Provision for credit losses (for the quarter) to average loans and leases held for investment (annualized)		2.42	%		2.36	%		0.06	%		0.15	%		0.18	%
Net charge-offs (for the quarter) to average loans and leases held for investment (annualized)		0.27	%		0.40	%		0.02	%		0.10	%		0.25	%
Trailing 12 months net charge-offs to average loans and leases held for investment		0.20	%		0.19	%		0.09	%		0.20	%		0.18	%
Allowance for credit losses to loans and leases held for investment		1.94	%		1.39	%		0.93	%		0.92	%		0.92	%
Allowance for credit losses to nonaccrual loans and leases held for investment		229.7	%		287.5	%		189.1	%		174.0	%		209.1	%
PacWest Bancorp Consolidated:
Tier 1 leverage capital ratio (1)		8.93	%		8.63	%		9.74	%		9.50	%		9.49	%
Common equity tier 1 capital ratio (1)		9.97	%		9.22	%		9.78	%		9.55	%		9.53	%
Tier 1 capital ratio (1)		9.97	%		9.22	%		9.78	%		9.55	%		9.53	%
Total capital ratio (1)		13.18	%		12.07	%		12.41	%		12.16	%		12.18	%
Risk-weighted assets (1)	$	22,781,405		$	24,214,209		$	23,582,495		$	23,579,614		$	23,117,199
Equity to assets ratio		12.62	%		12.97	%		18.51	%		18.41	%		18.42	%
Tangible common equity ratio (2)		8.93	%		9.10	%		9.79	%		9.65	%		9.50	%
Book value per share	$	29.17		$	28.75		$	41.36		$	41.06		$	40.49
Tangible book value per share (2)	$	19.80		$	19.31		$	19.77		$	19.43		$	18.83
Pacific Western Bank:
Tier 1 leverage capital ratio (1)		10.03	%		9.71	%		10.95	%		10.72	%		10.76	%
Common equity tier 1 capital ratio (1)		11.18	%		10.38	%		11.00	%		10.79	%		10.80	%
Tier 1 capital ratio (1)		11.18	%		10.38	%		11.00	%		10.79	%		10.80	%
Total capital ratio (1)		12.44	%		11.39	%		11.74	%		11.52	%		11.53	%

(1) Capital information for June 30, 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) PPNR, (2) PPNR return on average assets (3) return on average tangible equity, (4) tangible common equity ratio, and (5) 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, tangible book value per share, and PPNR is prevalent among banking regulators, investors, and analysts. Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) net earnings, (2) return on average assets, (3) return on average equity, (4) equity to assets ratio, and (5) 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									Six Months Ended
PPNR and PPNR Return	June 30,			March 31,			June 30,			June 30,
on Average Assets	2020			2020			2019			2020			2019
	(Dollars in thousands)
Net earnings (loss)	$	33,204		$	(1,433,111	)	$	128,125		$	(1,399,907	)	$	240,729
Add: Provision for credit losses		120,000			112,000			8,000			232,000			12,000
Add: Goodwill impairment		-			1,470,000			-			1,470,000			-
Add: Income tax expense		12,968			11,988			50,239			24,956			93,288
Pre-provision, pre-goodwill impairment,
pre-tax net revenue ("PPNR")	$	166,172		$	160,877		$	186,364		$	327,049		$	346,017
Average assets	$	26,621,227		$	27,099,040		$	25,849,189		$	26,860,133		$	25,812,771
Return on average assets (1)		0.50	%		(21.27	)%		1.99	%		(10.48	)%		1.88	%
PPNR return on average assets (2)		2.51	%		2.39	%		2.89	%		2.45	%		2.70	%

(1) Annualized net earnings (loss) divided by average assets.

(2) Annualized PPNR divided by average assets.                

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
Return on Average Tangible Equity	2020			2020			2019			2020			2019
	(Dollars in thousands)
Net earnings (loss)	$	33,204		$	(1,433,111	)	$	128,125		$	(1,399,907	)	$	240,729
Add: Intangible asset amortization		3,882			3,948			4,870			7,830			9,740
Add: Goodwill impairment		-			1,470,000			-			1,470,000			-
Adjusted net earnings	$	37,086		$	40,837		$	132,995		$	77,923		$	250,469
Average stockholders' equity	$	3,446,850		$	4,956,778		$	4,818,889		$	4,201,814		$	4,817,435
Less: Average intangible assets		1,111,302			2,569,189			2,598,762			1,840,246			2,601,288
Average tangible common equity	$	2,335,548		$	2,387,589		$	2,220,127		$	2,361,568		$	2,216,147
Return on average equity (1)		3.87	%		(116.28	)%		10.66	%		(67.00	)%		10.08	%
Return on average tangible equity (2)		6.39	%		6.88	%		24.03	%		6.64	%		22.79	%

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

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

Page 22

Tangible Common Equity Ratio/	June 30,			March 31,			December 31,			September 30,			June 30,
Tangible Book Value Per Share	2020			2020			2019			2019			2019
		(Dollars in thousands, except per share data)
Stockholders' equity	$	3,452,898		$	3,390,389		$	4,954,697		$	4,920,108		$	4,852,010
Less: Intangible assets		1,109,234			1,113,116			2,587,064			2,591,217			2,596,050
Tangible common equity	$	2,343,664		$	2,277,273		$	2,367,633		$	2,328,891		$	2,255,960
Total assets	$	27,365,738		$	26,143,267		$	26,770,806		$	26,724,627		$	26,344,414
Less: Intangible assets		1,109,234			1,113,116			2,587,064			2,591,217			2,596,050
Tangible assets	$	26,256,504		$	25,030,151		$	24,183,742		$	24,133,410		$	23,748,364
Equity to assets ratio		12.62	%		12.97	%		18.51	%		18.41	%		18.42	%
Tangible common equity ratio (1)		8.93	%		9.10	%		9.79	%		9.65	%		9.50	%
Book value per share	$	29.17		$	28.75		$	41.36		$	41.06		$	40.49
Tangible book value per share (2)	$	19.80		$	19.31		$	19.77		$	19.43		$	18.83
Shares outstanding		118,374,603			117,916,789			119,781,605			119,831,192			119,829,104

(1) Tangible common equity divided by tangible assets.

(2) Tangible common equity divided by shares outstanding.  

Page 23

EX-99.2

Exhibit 99.2

2020 Second Quarter Results Earnings Release Presentation July 16, 2020

Second 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. The length of the COVID - 19 pandemic and the severity of its impact on key macro - economic indicators such as unemployment and GDP may have a material impact on our allowance for credit losses and related provision for credit losses. Continued deterioration in general business and economic conditions could adversely affect PacWest Bancorp’s revenues and the values of its assets and liabilities, including goodwill, 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, sustained high 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 and legal and regulatory developments. 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

Second Quarter 2020 | PACW | p. 3 Presentation Index COVID - 19 Pandemic Update 4 Second Quarter Significant Items 8 Loans and Leases & Credit Quality 13 Deposits 34 Net Interest Margin 37 Investment Securities 42 Controlled Expenses 44 Company Overview 46 Non - GAAP Measurements 51

Second Quarter 2020 | PACW | p. 4 COVID - 19 Pandemic Update

Second Quarter 2020 | PACW | p. 5 Our Response to the COVID - 19 Pandemic Our Employees, Clients and Communities • Nearly all non - branch employees continue to work remotely • Business travel remains suspended • Provided a special bonus of $1,000 for employees in our branches and critical locations • Provided Personal Protection Equipment (PPE) to our employees • Made changes to facilities such as plexi - glass shields, enhanced cleaning and social distancing • Developed a Return - to - Office Strategy and Plan based on guidance from State/Local government agencies and the CDC; slow phased - in approach started in late June • Conducted employee training and provided guidance to ensure a safe environment • 27 branch lobbies remain closed where drive - up tellers are available • In June re - opened all but 3 of the 19 branches initially closed; and returned to normal business hours • Continue to monitor pandemic health metric trends to modify operations as needed • COVID - related donations to date of over $800,000 • COVID - related investments under Community Re - investment Act: $2.3 million

Second Quarter 2020 | PACW | p. 6 Our Response to the COVID - 19 Pandemic Impacts to O ur Business In the 2 nd Quarter of 2020: • Continued enhanced monitoring of the loan portfolio; COVID impacted portfolios (hotel, retail CRE, commercial aviation, restaurant) represent ~ 11% of total loans • Provision of $120 million due primarily to forecasted macro - economic variables given economic conditions triggered by the pandemic • Funded $1.2 billion in PPP loans; overall loan balances down slightly • Provided over 800 loan modifications for $1.8 billion representing approximately 9% of the portfolio • Significant deposit growth of $3.5 billion due to PPP loan proceeds disbursed to customer accounts and venture banking client activity • S ignificant deposit growth allowed us to reduce our other borrowings by $2.2 billion from March 31 st • Reduced our quarterly dividend to $0.25 per share In the 1 st Quarter of 2020: • Enhanced monitoring of the loan portfolio • Proactively downgraded approximately $600 million in loans from pass to special mention • Economic conditions impacted our ACL calculations under CECL resulting in a $112 million provision • Economic conditions led to market volatility and a significant decline in our stock price resulting in a non - cash goodwill impairment charge of $1.47 billion; no impact to regulatory capital or liquidity • Suspended our share repurchase program in mid - March

Second Quarter 2020 | PACW | p. 7 ($ in thousands) Gross Average Orig. Orig. Balance Range Count Amount Balance Fee % Fee $ Greater than or equal to $2,000,000 101 356,950$ 3,534$ 1.00% 3,570$ $350,001 - $1,999,999 731 573,838 785 3.00% 17,215 Less than or equal to $350,000 3,309 311,921 94 5.00% 15,596 Total 4,141 1,242,709$ 300$ 2.93% 36,381$ Our Response to the COVID - 19 Pandemic • Loan coupon 1% • Two - year term • Fee income amortized over 2 years; acceleration upon forgiveness or repayment Paycheck Protection Program (PPP) Loan Payment/Deferral Modifications • Data as of July 10, 2020 • Most modifications in May/June ~ 81% • Most deferrals were 3 months; some up to 6 months • Most extensions were 3 months; some up to one year • Some modifications requested by borrowers for liquidity preservation purposes • Further details on certain portfolios (see slides 20 - 27) Total Deferral & Portfolio Deferral and Count Portfolio Class Extensions Balance Balance Extensions % 117 Commercial Real Estate 858$ 4,222$ 20.3% 49 Income Producing Residential 225 3,734 6.0% 13 Commercial Construction 284 2,173 13.1% 6 Residential Construction 176 1,168 15.1% 42 Asset Based 111 3,413 3.3% 18 Venture Capital 16 1,814 0.9% 151 Other Commercial 46 2,760 1.7% 485 Consumer 33 411 8.0% 881 1,749$ 19,695$ 8.9% ($ in thousands)

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

Second Quarter 2020 | PACW | p. 9 Second Quarter Significant Items • Net earnings of $33.2 million, $0.28 EPS • Pre - provision, pre - goodwill impairment, pre - tax net revenues (“PPNR”) of $166.2 million; increase of $5.3mm from Q1 • PPNR ROAA of 2.51%; 2.39% in Q1 • Q2 includes $7.7mm of securities gains and $6.6mm of debt prepayment penalties Operating Results Key Metrics • Net interest margin of 4.20%; excluding PPP 4.25% • Loan and lease yield of 5.01%; excluding PPP 5.10% • Cost of deposits of 25bps; 59bps in Q1 • June 30th spot rate on deposits of 19bps • Efficiency ratio of 42.9%; excluding FHLB prepayment penalty would be 40.7% Loan Portfolio & Credit Quality • Loan production of $1.8bn; includes $1.2bn of PPP loans • Classified loans to total loans of 1.49% • Net charge - offs of $13.2 million; 27bps of average loans and leases down from 40bps in Q1 • Provision for credit losses of $120.0 million driven by CECL economic forecast Strong Deposit Base & Capital • Core deposits up $3.5bn in Q2; 85% of total deposits • Noninterest - bearing demand deposits at 38% of total deposits • Tangible common equity ratio of 8.93%; excluding PPP 9.36% • CET1 ratio of 9.97%

Second Quarter 2020 | PACW | p. 10 ∆ ($ in millions, except per share amounts) 2Q20 1Q20 Q / Q Total Assets 27,366$ 26,143$ 5% Loans and Leases HFI, net of deferred fees 19,695$ 19,745$ 0% Total Deposits 22,929$ 19,576$ 17% Core Deposits 19,536$ 16,051$ 22% Net Earnings (Loss) 33.2$ (1,433.1)$ 102% Earnings (Loss) Per Share 0.28$ (12.23)$ 102% Pre-Provision, Pre-Goodwill Impairment, Pre-Tax Net Revenue ("PPNR") (1) 166.2$ 160.9$ 3% Return on Average Assets 0.50% -21.27% 21.77 PPNR Return on Average Assets (1) 2.51% 2.39% 0.12 Return on Average Tangible Equity ("ROATE") (1) 6.39% 6.88% -0.49 Tangible Common Equity Ratio (1) 8.93% 9.10% -0.17 Tangible Book Value Per Share (1) 19.80$ 19.31$ 3% Tax Equivalent Net Interest Margin 4.20% 4.31% -0.11 Efficiency Ratio 42.9% 40.6% 2.3 Quarter - Over - Quarter Financial Highlights (1) See “Non - GAAP Measurements” slide on page 51.

Second Quarter 2020 | PACW | p. 11 Year - Over - Year Financial Highlights (1) See “Non - GAAP Measurements” slide on page 51. ∆ ($ in millions, except per share amounts) 2Q20 2Q19 Y / Y Total Assets 27,366$ 26,344$ 4% Loans and Leases HFI, net of deferred fees 19,695$ 18,473$ 7% Total Deposits 22,929$ 18,806$ 22% Core Deposits 19,536$ 15,617$ 25% Net Earnings 33.2$ 128.1$ -74% Earnings Per Share 0.28$ 1.07$ -74% Pre-Provision, Pre-Goodwill Impairment, Pre-Tax Net Revenue ("PPNR") (1) 166.2$ 186.4$ -11% Return on Average Assets 0.50% 1.99% -1.49 PPNR Return on Average Assets (1) 2.51% 2.89% -0.38 Return on Average Tangible Equity ("ROATE") (1) 6.39% 24.03% -17.64 Tangible Common Equity Ratio (1) 8.93% 9.50% -0.57 Tangible Book Value Per Share (1) 19.80$ 18.83$ 5% Tax Equivalent Net Interest Margin 4.20% 4.72% -0.52 Efficiency Ratio 42.9% 41.6% 1.3

Second Quarter 2020 | PACW | p. 12 Solid Capital Position – June 30, 2020 • Tier 1 leverage capital ratio increased 30bps in Q2 to 8.93%. • CET1 capital ratio increased 55bps in Q2 from 9.22% to 9.97%. • Total capital ratio increased 111bps in Q2 from 12.07% to 13.18%. (1) Excluding PPP loans from total assets given zero risk - weighting, consolidated leverage ratio would be 9.22% and bank leverage ratio would be 10.35%. PACWEST BANCORP For Capital Basel III For Adequacy Fully Well-Capitalized ($ in thousands) Balance Ratio Purposes Phased-In Classification Tier 1 leverage capital 2,270,504$ 8.93% (1) 4.00% 4.00% N/A Common equity Tier 1 capital 2,270,504$ 9.97% 4.50% 7.00% N/A Tier 1 capital 2,270,504$ 9.97% 6.00% 8.50% N/A Total capital 3,002,710$ 13.18% 8.00% 10.50% N/A PACIFIC WESTERN BANK For Capital Basel III For Adequacy Fully Well-Capitalized ($ in thousands) Balance Ratio Purposes Phased-In Classification Tier 1 leverage capital 2,544,093$ 10.03% (1) 4.00% 4.00% 5.00% Common equity Tier 1 capital 2,544,093$ 11.18% 4.50% 7.00% 6.50% Tier 1 capital 2,544,093$ 11.18% 6.00% 8.50% 8.00% Total capital 2,828,922$ 12.44% 8.00% 10.50% 10.00% Actual Actual

Second Quarter 2020 | PACW | p. 13 Loans and Leases & Credit Quality

Second Quarter 2020 | PACW | p. 14 Commercial mortgage Income producing and other residential Commercial construction Residential construction Asset - based Venture capital Other commercial Consumer As of June 30, 2020 Diversified Loan and Lease Portfolio (1) Net of deferred fees and costs ($ in millions) $ Mix $ Mix Real Estate Mortgage: Commercial 4,222$ 21% 4,435$ 24% Income producing and other residential 3,734 19% 3,641 20% Total Real Estate Mortgage 7,956 40% 8,076 44% RE Construction & Land: Commercial 1,168 6% 973 5% Residential 2,173 11% 1,403 8% Total RE Construction & Land 3,341 17% 2,376 13% Total Real Estate 11,297 57% 10,452 57% Commercial: Asset-based 3,413 18% 3,606 19% Venture capital 1,814 9% 2,195 12% Other commercial 2,760 14% 1,774 10% Total Commercial 7,987 41% 7,575 41% Consumer 411 2% 446 2% Total Loans HFI (1) 19,695$ 100% 18,473$ 100% Unfunded commitments 7,746$ 7,611$ 6/30/2020 6/30/2019

Second Quarter 2020 | PACW | p. 15 Other Commercial, $2,764mm, 24% SBA , $573mm , 5% Hotel , $648mm , 6% Income Producing Residential, $3,639mm, 32% Healthcare , $237mm , 2% Other Residential , $95mm , 1% Construction & Land , $3,341mm , 30% Real Estate ($11.3B) Lender Finance & Timeshare, $1,980mm, 58% Equipment Finance, $786mm, 23% Premium Finance, $421mm, 12% Other, $226mm, 7% Asset - Based ($3.4B) ($ in millions) $ Mix $ Mix Asset-Based: Lender Finance & Timeshare 1,980$ 58% 2,022$ 56% Equipment Finance 786 23% 765 21% Premium Finance 421 12% 411 12% Other 226 7% 408 11% Total Asset-Based 3,413$ 100% 3,606$ 100% 6/30/2020 6/30/2019 ($ in millions) $ Mix $ Mix Real Estate: Income Producing Residential 3,639$ 32% 3,535$ 34% Construction & Land (1) 3,341 30% 2,376 23% Other Commercial (2) 2,764 24% 3,015 29% Hotel 648 6% 535 5% SBA 573 5% 557 5% Healthcare 237 2% 328 3% Other Residential 95 1% 106 1% Total Real Estate 11,297$ 100% 10,452$ 100% 6/30/2020 6/30/2019 Diversified Loan and Lease Portfolio (1) Of which land represents $146 million and $159 million as of 6/30/20 and 6/30/19. (2) Comprised of 44% office, 29% industrial, 19% retail and 8% other at 6/30/20.

Second Quarter 2020 | PACW | p. 16 ($ in millions) $ Mix $ Mix Other Commercial: Paycheck Protection Program 1,211$ 44% -$ - Secured Business Loans 502 18% 557 31% Security Monitoring 499 18% 630 36% Unsecured Business Loans 213 8% 220 12% Municipal 154 6% 126 7% SBA 73 3% 85 5% HOA Loans 71 2% 68 4% Cash Flow 37 1% 88 5% Total Other Commercial 2,760$ 100% 1,774$ 100% 6/30/2020 6/30/2019 Secured Business Loans , $502mm , 18% Municipal , $154mm , 6% Cash Flow , $37mm , 1% SBA , $73mm , 3% Security Monitoring , $499mm , 18% HOA Loans , $71mm , 2% Unsecured Business Loans , $213mm , 8% Paycheck Protection Program , $1,211mm , 44% Other Commercial ($2.8B) Equity Fund Loans, $740mm, 41% Expansion Stage, $738mm, 41% Early Stage, $212mm, 11% Late Stage, $124mm, 7% Venture Capital ($1.8B) ($ in millions) $ Mix $ Mix Venture Capital: Equity Fund Loans 740$ 41% 1,116$ 51% Expansion Stage 738 41% 785 36% Early Stage 212 11% 221 10% Late Stage 124 7% 73 3% Total Venture Capital 1,814$ 100% 2,195$ 100% 6/30/2020 6/30/2019 Diversified Loan and Lease Portfolio

Second Quarter 2020 | PACW | p. 17 $1,436 $1,231 $1,021 $790 $546 $1,294 $1,288 $1,318 $1,997 $800 $1,257 $1,529 $1,391 $816 $813 $613 $980 $838 $1,407 $1,054 $2,022 $2,730 $2,519 $2,339 $2,787 $2,603 $2,509 $2,229 $2,223 $1,867 $2,635 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2Q19 3Q19 4Q19 1Q20 2Q20 Avg. Rate on Production Millions Production Disbursements PPP Loans Payoffs Paydowns Rate on Production ($ 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) 2Q20 2,603$ 2,635$ (32)$ 2.33% 2Q20 19,745$ 19,695$ (50)$ 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 Loan and Lease Production of $1.8 Billion in 2Q20 (1) The weighted average TE rate on production presents contractual rates and does not include amortized fees. Amortized fees add ed approximately 21 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 preservation during pandemic cri sis. Segments with largest disbursements were venture capital, lender finance and business loans. (4)

Second Quarter 2020 | PACW | p. 18 Multi - Family Apts, 53% Condominiums , 6% Hotel , 14% Office, 7% Land , 3% Retail , 3% Mixed - Use, 4% Industrial, SFR & Other, 10% Commitments by Property Type Construction & Land Loans Nevada , 3% Other, 12% Florida, 6% Wash. DC, 5% New York, 11% Virginia , 3% N. Carolina , 3% California , 57% Portfolio by State Commitment Amount Count 6/30/20 Tota l 6/30/20 % of Tota l $0 ~ $10mm 166 $ 510mm 8% $10mm ~ $25mm 67 1,002mm 17% $25mm ~ $50mm 52 1,990mm 33% $50mm ~ $100mm 21 1,446mm 24% $100mm ~ $150mm 9 1,104mm 18% Total 315 $ 6,052mm LTC < 40 %, 5% LTC 40% - 50%, 11% LTC 50% - 60%, 37% LTC 60% - 70%, 31% LTC > 70%, 16% Commitments By Loan - To - Cost Range Risk Rating Count 6/30/20 Tota l Pass/Watch 313 $ 3,328mm Special Mention 1 12mm Classified 1 0.3mm Total 315 $ 3,341mm

Second Quarter 2020 | PACW | p. 19 California, 63% Washington DC , 6% Florida , 9% Washington , 4% Virginia , 6% N. Carolina , 4% Others , 8% $1.6bn (1) MF Construction Portfolio Multi - Family Loans Principal Balance Amount Count 6/30/20 Tota l 6/30/20 % of Tota l < $1mm 500 $ 211mm 6% $1mm ~ $5mm 621 1,482mm 41% $5mm ~ $10mm 161 1,097mm 30% $10mm ~ $25mm 43 612mm 17% $25mm ~ $106mm 3 237mm 6% Total 1,328 $ 3,639mm California, 71% Washington , 7% Florida , 6% Oregon , 4% New York , 3% Colorado , 3% Others , 6% $3.6bn (2) Income Producing Residential Portfolio Income Producing Residential (1) MF construction commitments total $3.4bn and have a weighted average loan - to - cost ratio of 60% as of June 30, 2020. (2) $1.9bn , or approximately 52%, of MF portfolio is 50% risk - weighted. LTC 40% - 50%, 10% LTC 50% - 60 %, 45% LTC 60% - 70 %, 27% LTC > 70 %, 18% Commitments By Loan - To - Cost Range Risk Rating Count 6/30/20 Tota l Pass/Watch 1,320 $ 3,632mm Special Mention 2 4mm Classified 6 3mm Total 1,328 $ 3,639mm

Second Quarter 2020 | PACW | p. 20 Residential 52% Commercial 45% Personal Emergency Response Systems 3% Portfolio by Revenue Source (1) Security Monitoring Loans ▪ A lending product since 2003, however, 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 has declined $120mm in 2020 ; heightened monitoring of our credit risk for this portfolio in 2Q19; discontinued new originations in October 2019 ▪ $ 222mm or 44% of the portfolio are SNCs ▪ 4.78% WAC; 100% variable rate; WAM 23 months ▪ $ 122mm of unfunded commitments; subject to an availability formula based upon eligible recurring monthly revenue ▪ Downgraded three loans totaling $119.2 million to classified in 2Q20 ▪ COVID m odifications as of 6/30/20 - none Risk Rating Count 6/30/20 Tota l Pass/Watch 20 $ 287mm Special Mention 4 72mm Classified 6 140mm Total 30 $ 499mm Balance by Tranche Count 6/30/20 Tota l < $5mm 8 $ 20mm $5mm ~ $10mm 9 71mm $10mm ~ $20mm 2 28mm $20mm ~ $30mm 2 49mm $30mm ~ $40mm 7 235mm $40mm ~ $55mm 2 96mm Total 30 $ 499mm (1) Revenue allocated based upon the borrowers’ customer mix. $87mm $111mm $157mm $144mm 2020 2021 2022 2023-24 Contractual Maturity Table

Second Quarter 2020 | PACW | p. 21 ▪ 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 46%. ▪ SBA guarantied portions retained (75% average guaranty). ▪ $293.4mm CRE and $10.6mm construction downgraded to special mention in 1Q20. ▪ Indirect exposure from timeshare inventory loans ($24mm), hotel - related lender finance loans ($43mm) and venture banking loans ($9mm). ▪ COVID modifications as of 6/30/20 – 33 loans totaling $459mm. Hotel Portfolio Overview CA, $520mm Other, $31mm NJ, $23mm TN , $ 55mm NV , $64mm GA , $ 22mm FL, $133mm NY, $ 295mm Hotel by State $1.1bn (5.8% of total loans) Upper Upscale, $315mm, 49% Midscale, $48mm, 8% Upscale, $148mm, 23% Upper Midscale, $119mm, 18% Economy, $18mm, 2% Hotel CRE by Brands Count 6/30/20 Commitment 6/30/20 Outstanding Avg. O/S Balance Hotel CRE 48 $ 701mm $ 648mm $ 13.5mm Hotel Construction 18 839mm 464mm 25.8mm Hotel SBA 58 35mm 31mm 0.5mm Total 124 $ 1,575mm $ 1,143mm $ 9.2mm Hotels by Product Risk Rating Count 6/30/20 Tota l Pass/Watch 67 $ 836mm Special Mention 47 305mm Classified 10 2mm Total 124 $ 1,143mm

Second Quarter 2020 | PACW | p. 22 Urban luxury center 10% Lifestyle center 33% Suburban retail/strip center 26% Single Tenant 31% CRE Retail Property Types $466mm (2.4% of total loans) Loan Types • Construction - significant projects include: ▪ A lifestyle center in Studio City, CA ▪ A community shopping center in Encinitas, CA ▪ A grocery - anchored community shopping center in Cary, NC ▪ High traffic retail infill on San Vicente Blvd. in Los Angeles ▪ COVID modifications as of 6/30/20 – 2 loans totaling $42mm • Owner - Occupied ▪ Not adversely affected by rental market volatility ▪ SBA retail is 100% owner - occupied o SBA guarantied portions retained (75% average guaranty ) o COVID modifications as of 6/30/20 – 5 loans totaling $2mm • CRE ▪ Traditional retail - focused commercial real estate lending including: o National Lending $52mm portfolio mostly consists of two lifestyle centers (NJ & IN) totaling $42mm which were downgraded from special mention to classified in 2Q20 o Community Banking $414mm portfolio almost entirely in California focused on suburban retail/strip centers and single tenant retail storefronts o COVID modifications as of 6/30/20 – 18 loans totaling $198mm (1) $43 million in classified loans at June 30, 2020 (up from $5.1 million at March 31, 2020) with related SBA guaranties totaling $ 0.2 million . $42mm downgraded from special mention to classified in 2Q20. Retail Real Estate Portfolio Overview Risk Rating Count 6/30/20 Tota l Pass/Watch 226 $ 580mm Special Mention 5 2mm Classified 14 43mm Total 245 $ 625mm Count Net Commitment Recorded Investment Avg. O/S Balance Retail CRE 153 $ 513mm $ 466mm $ 3.0mm Coml. Construction 7 157mm 102mm 14.6mm Retail SBA 85 58mm 57mm 0.7mm Total 245 $ 728mm $ 625mm $ 2.6mm Retail by Product

Second Quarter 2020 | PACW | p. 23 ▪ Credits are to well - known U.S - based airlines (41%), foreign - based airlines (34%) and freight carriers (25%). ▪ 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 June 30, 2020. ▪ $119 million downgraded to special mention in 1Q20 and additional $38 million in 2Q20. ▪ COVID modifications as of 6/30/20 – 2 loans totaling $18mm. Commercial Aviation Portfolio Overview Passenger, $ 223mm , 75% Freight , $74mm, 25% Aviation by Type, $297mm (1.5% of total loans) Count 6/30/20 Commitment 6/30/20 Outstanding Avg. O/S Balance Equipment Finance 39 $ 284mm $ 281mm $ 7.2mm Operating leases 3 16mm 16mm 5.3mm Total 42 $ 300mm $ 297mm $ 7.1mm Aviation by Product Risk Rating Count 6/30/20 Tota l Pass/Watch 22 $ 147mm Special Mention 20 150mm Classified - - Total 42 $ 297mm

Second Quarter 2020 | PACW | p. 24 Other Impacted Portfolios Count Net Commitment Recorded Investment Avg. O/S Balance Operating Leases 5 $ 63.9mm $ 63.9mm $ 12.8mm Equipment Finance 7 71.1mm 54.4mm 7.8mm Asset - Based 6 20.0mm 5.6mm 0.9mm Venture Capital 2 2.5mm 1.0mm 0.5mm Total 20 $ 157.5mm $ 124.9mm $ 6.2mm Oil Services by Product Restaurant ▪ $ 161 million total exposure (0.8% of total loans and operating leases) of which $ 93 million is real estate secured. ▪ $ 92 million are SBA guaranteed (75% average guaranty as we don’t sell the guaranteed portions ). ▪ $ 11.5 million of classified loans at June 30, 2020 (estimated SBA guaranties of $8.5 million ). ▪ COVID modifications as of 6/30/20 – 27 loans totaling $38mm. Oil Services ▪ $125 million total exposure (0.6% of total loans and operating leases) ▪ $61 million loans receivable ▪ $64 million operating leases ▪ All credits are related to support services and $119.3 million is collateralized by equipment (railcars $63.9mm, land - based fracking equipment $28.0mm, offshore vessels $27.4mm) and $5.6 million is ABL lines collateralized by A/R and inventory. ▪ $63 million to borrowers rated BB - or above. ▪ $118 million, or 94%, outstanding to six borrowers with average balance of $19.7 million. ▪ One loan of $15.3 million classified and nonaccrual since 1Q’15. ▪ COVID modifications as of 6/30/20 – none. Count Net Commitment Recorded Investment Avg. O/S Balance SBA – Real Estate 65 $ 64.0mm $ 61.3mm $ 0.9mm SBA – Cash Flow 64 38.0mm 37.6mm 0.6mm Commercial Real Estate 35 33.8mm 31.4mm 0.9mm Collateralized Commercial Loans 20 27.1mm 26.0mm 1.3mm Unsecured Business Loans 69 14.3mm 4.7mm 0.1mm Venture Capital 4 14.1mm - - Total 257 $ 191.3mm $ 161.0mm $ 0.6mm Restaurant by Product

Second Quarter 2020 | PACW | p. 25 ▪ Represents loans to companies to purchase finance receivables or extend finance receivables. Borrowers include lenders to businesses, consumer lenders, and timeshare operators. ▪ Senior lines of credit secured by the finance receivables owed to our borrowers. Borrowing availability under these lines is subject to a formula which includes only qualifying collateral and allows for borrowing at a level supported by historical collateral collections. These lines of credit have an initial revolving term followed by an amortization term. ▪ Segments expected to be directly impacted by COVID - 19: ▪ Direct consumer lenders ▪ Small business lenders ▪ Lenders with hotel exposure ($43mm) ▪ COVID modifications as of 6/30/20 – 7 loans totaling $67 million. Lender Finance Portfolio Overview Direct consumer lender , 32% Other , 5% Timeshare, 17% Auto finance lender , 10% Commercial lender , 8% Consumer receivable purch. , 6% Coml. RE lender , 22% Lender Finance by Type, $2.0bn (10.1% of total loans) Count 6/30/20 Commitment 6/30/20 Outstanding Avg. O/S Balance Direct consumer lender 34 $ 1,304mm $ 631mm $ 18.6mm Commercial RE lender 17 885mm 434mm 25.5mm Timeshare 13 455mm 342mm 26.3mm Auto finance lender 11 347mm 207mm 18.8mm Commercial lender 6 331mm 152mm 25.3mm Consumer receivable purchaser 4 184mm 114mm 28.5mm Other 7 208mm 100mm 14.3mm Total 92 $ 3,714mm $ 1,980mm $ 21.5mm Lender Finance Portfolio by Type Risk Rating Count 6/30/20 Tota l Pass/Watch 88 $ 1,977mm Special Mention - - Classified 4 3mm Total 92 $ 1,980mm

Second Quarter 2020 | PACW | p. 26 CA 55% NY 7% TX 7% PA 5% NJ 3% FL 4% Other 19% Office by State $1,575mm (8.0% of total loans) Office Portfolio Overview Risk Rating Count 6/30/20 Tota l Pass/Watch 316 $ 1,566mm Special Mention 6 6mm Classified 7 3mm Total 329 $ 1,575mm Office by Product Count Net Commitment Recorded Investment Avg. O/S Balance Office CRE 214 $ 1,375mm $ 1,206mm $ 5.6mm Commercial Construction 12 440mm 259mm 21.6mm Office SBA 103 111mm 110mm 1.1mm Total 329 $ 1,926mm $ 1,575mm $ 4.8mm ▪ Disciplined underwriting based on the lesser of actual or market rents and market vacancy, not projections or positive market trends. ▪ $104 million of CRE and all $110 million of SBA are owner - occupied. ▪ Average loan - to - cost for office construction loans is 58%. ▪ COVID modifications as of 6/30/20 – 24 loans totaling $289 million. $0~$5mm , $200mm , 17% $5mm~$15mm , $201mm , 17% $15mm~$25mm , $174mm , 14% $25mm~$45mm , $214mm , 18% $45mm~$60mm , $267mm , 22% $60mm+ , $150mm , 12% CRE By Balance Range $60mm+ , $150mm , 34% $0~$5mm , $4mm , 1% $5mm~$15mm , $33mm , 8% $15mm~$25mm , $15mm , 3% $25mm~$45mm , $138mm , 31% $45mm~$60mm , $100mm , 23% Construction by Commitment Range

Second Quarter 2020 | PACW | p. 27 Shared National Credits (SNCs) $2.3bn $1.2bn $840mm $755mm $658mm 2016 2017 2018 2019 2Q20 Total $2.3bn $1.2bn $840mm $755mm $658mm Classified $70mm $41mm $67mm $40mm $145mm Nonaccrual $13mm $15mm $- $15mm $64mm SNC Loans Healthcare RE , $42mm , 6% Equity Fund Loans , $47mm , 7% Cash Flow , $5mm , 1% Lender Finance & Timeshare , $176mm , 27% Secured Business Loans , $103mm , 16% Unsecured Business Loans , $16mm , 2% Security Monitoring , $222mm , 34% Equipment Finance , $28mm , 4% Other Coml RE , $19mm , 3% $658mm of SNC Loans at 6/30/2020 ▪ 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 . ▪ Increase in classified loans in 2Q20 related to downgrade of three security monitoring loans totaling $119.2 million. 71% decrease

Second Quarter 2020 | PACW | p. 28 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. ($ in thousands) 2Q19 3Q19 4Q19 1Q20 2Q20 Nonaccrual Loans and Leases HFI $ 81,265 99,113 92,353 95,602 166,113 As a % of Loans and Leases HFI % 0.44% 0.53% 0.49% 0.48% 0.84% Nonperforming Assets $ 82,737 100,479 92,793 97,303 167,562 As a % of Loans and Leases & Foreclosed Assets % 0.45% 0.54% 0.49% 0.49% 0.85% Classified Loans and Leases HFI (1) $ 190,979 188,607 175,912 147,705 293,230 As a % of Loans and Leases HFI % 1.03% 1.01% 0.93% 0.75% 1.49% Credit Loss Provision $ 8,000 7,000 3,000 112,000 120,000 As a % of Average Loans and Leases (annualized) % 0.18% 0.15% 0.06% 2.36% 2.42% Net Charge-offs $ 11,244 4,485 767 19,110 13,242 As a % of Average Loans and Leases (annualized) % 0.25% 0.10% 0.02% 0.40% 0.27% Trailing Twelve Months Net Charge-offs $ 33,102 35,868 16,687 35,606 37,604 As a % of Average Loans and Leases % 0.18% 0.20% 0.09% 0.19% 0.20% Allowance for Loan Losses (ALLL) $ 135,037 138,552 138,785 221,292 301,050 As a % of Loans and Leases HFI % 0.73% 0.74% 0.74% 1.12% 1.53% Allowance for Credit Losses (ACL) (2) $ 169,898 172,413 174,646 274,863 381,621 As a % of Loans and Leases HFI % 0.92% 0.92% 0.93% 1.39% 1.94% ACL / Nonaccrual Loans and Leases HFI % 209.07% 173.96% 189.11% 287.51% 229.74%

Second Quarter 2020 | PACW | p. 29 0.18% 0.20% 0.09% 0.19% 0.20% 2Q19 3Q19 4Q19 1Q20 2Q20 Trailing Twelve Months Net Charge - offs / Average Loans and Leases Key Credit Trends – Loans HFI 0.44% 0.53% 0.49% 0.48% 0.84% 2Q19 3Q19 4Q19 1Q20 2Q20 Nonaccrual Loans and Leases / Loans and Leases 0.92% 0.92% 0.93% 1.39% 1.94% 2Q19 3Q19 4Q19 1Q20 2Q20 ACL / Loans and Leases 1.03% 1.01% 0.93% 0.75% 1.49% 2Q19 3Q19 4Q19 1Q20 2Q20 Classified Loans and Leases/ Loans and Leases

Second Quarter 2020 | PACW | p. 30 % of Loan % of Loan 6/30/2020 3/31/2020 ($ in thousands) Balance Category Balance Category Balance Balance Real estate mortgage: Commercial 61,771$ 1.5% 19,088$ 0.5% -$ 1,807$ Income producing and other residential 2,207 0.1% 2,308 0.1% - 1,064 Total real estate mortgage 63,978 0.8% 21,396 0.3% - 2,871 Real estate construction and land: Commercial 337 0.0% 351 0.0% - - Residential - 0.0% - 0.0% 1,021 241 Total R.E. construction and land 337 0.0% 351 0.0% 1,021 241 Commercial: Commercial - Asset-based 19,013 0.6% 17,104 0.4% 3,697 - Commercial - Venture capital 8,270 0.5% 18,612 0.7% 1,924 183 Commercial - Other commercial 73,995 2.7% 37,726 2.1% 191 4,393 Total commercial 101,278 1.3% 73,442 0.9% 5,812 4,576 Consumer 520 0.1% 413 0.1% 1,067 518 Total 166,113$ 0.8% 95,602$ 0.5% 7,900$ 8,206$ 6/30/2020 Nonaccrual Loans and Leases 3/31/2020 Accruing and 30 -89 Days Past Due Nonaccrual & Delinquent Loan and Lease Detail ▪ Real estate mortgage - commercial nonaccrual increase due to addition of two lifestyle retail centers totaling $42 million ▪ Commercial - other commercial nonaccrual increase due to addition of one security monitoring loan of $44 million

Second Quarter 2020 | PACW | p. 31 ($ in thousands) Classified Special Mention Pass/Watch Total Classified Special Mention Pass/Watch Total Real estate mortgage: Commercial real estate 71,446$ 322,312$ 3,828,317$ 4,222,075$ 33,908$ 371,687$ 3,815,074$ 4,220,649$ Residential real estate 6,941 6,151 3,720,568 3,733,659 7,083 2,491 3,778,721 3,788,295 Total real estate mortgage 78,387 328,462 7,548,885 7,955,734 40,991 374,158 7,593,795 8,008,944 Real estate construction: Commercial construction 337 12,354 1,154,918 1,167,609 351 10,577 1,076,577 1,087,505 Residential construction - - 2,172,919 2,172,919 - - 1,792,748 1,792,748 Total real estate construction 337 12,354 3,327,837 3,340,528 351 10,577 2,869,325 2,880,253 Commercial: Asset based 25,008 186,813 3,200,610 3,412,431 23,218 152,137 3,763,047 3,938,402 Venture capital 29,054 138,403 1,646,884 1,814,341 31,110 173,947 2,510,780 2,715,837 Other commercial 159,813 82,313 2,518,152 2,760,278 51,498 186,368 1,534,119 1,771,985 Total commercial 213,876 407,529 7,365,646 7,987,050 105,826 512,452 7,807,946 8,426,224 Consumer 630 18,053 392,636 411,318 537 1,471 427,876 429,884 Total loans and leases 293,230$ 766,397$ 18,635,004$ 19,694,631$ 147,705$ 898,658$ 18,698,942$ 19,745,305$ June 30, 2020 March 31, 2020 Loan Portfolio By Risk Rating ▪ Loan downgrades in Q2 were substantially all from special mention to classified. ▪ Real estate mortgage - commercial classified increase due to two lifestyle retail centers totaling $42mm downgraded from special mention ▪ Commercial - other commercial classified increase due to three security monitoring loans totaling $119.2 million downgraded from special mention to classified ▪ Consumer special mention increase due to downgrades of student loans

Second Quarter 2020 | PACW | p. 32 $175 $182 $275 $382 $7 $77 $20 $19 $(19) $(4) $99 $15 $8 $(13) $(2) 4Q19 Adoption Impact 1/1/2020 Economic Forecast Individually Evaluated Loan Downgrades Net Charge- offs Other, net 1Q20 Economic forecast Individually evaluated Loan downgrades Net charge- offs Other 2Q20 ACL Reserve Build (in millions) Current Expected Credit Losses (CECL) ▪ Our ACL methodology is based on numerous models and key assumptions that rely on economic forecasts, historical information, current conditions, loan segmentation, prepayment rates, loss given default rates, the historical loss period, t he reasonable and supportable forecast period, the reversion period, and utilization rates on unfunded commitments in addition to numerous qualitative factors based on management judgment; the result is a complex process with various potential outcomes for which management makes a best estimate ▪ Used the Moody’s Consensus Scenario Forecast dated June 11, 2020; macro - economic variables deteriorated since the March 27, 2020 baseline scenario forecast used in Q1 ▪ Due to the dramatic and sudden spikes in key macro - economic variables, regression models have limitations; as a result additional adjustments are necessary to determine the best estimate of the allowance for credit losses ▪ The ALLL ratio increased from 1.12% as of 3/31/20 to 1.53% as of 6/30/20; excluding PPP loans the ALLL ratio is 1.64% at 6/30/20 0.93% 0.97% 1.39% 1.94 %

Second Quarter 2020 | PACW | p. 33 Allowance for Credit Losses Note: As of 12/31/19 under the incurred loss model the ALLL was $138,875 or 0.74% while the ACL was $174,646 or 0.93%. ($ in thousands) 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 real estate 27,667$ 0.66% 69,649$ 1.64% 103,354$ 2.45% Residential real estate 22,216 0.59% 21,816 0.58% 27,370 0.73% Total real estate mortgage 49,883 0.63% 91,465 1.14% 130,724 1.64% Real estate construction: Commercial construction 7,462 0.69% 18,174 1.66% 31,680 2.71% Residential construction 14,490 0.88% 22,124 1.23% 38,432 1.77% Total real estate construction 21,952 0.80% 40,298 1.39% 70,112 2.10% Commercial: Asset based 27,581 0.74% 33,755 0.86% 35,233 1.03% Venture capital 20,572 0.94% 34,086 1.25% 34,862 1.92% Other commercial 20,235 1.14% 19,552 1.11% 27,852 1.00% Total commercial 68,389 0.89% 87,393 1.04% 97,947 1.23% Consumer 2,179 0.49% 2,136 0.51% 2,267 0.55% Allowance for loan and lease losses 142,402$ 0.76% 221,292$ 1.12% 301,050$ 1.53% Reserve for unfunded commitments 39,571 0.21% 53,571 0.27% 80,571 0.41% Allowance for credit losses 181,974$ 0.97% 274,863$ 1.39% 381,621$ 1.94% CECL Adoption January 1, 2020 March 31, 2020 June 30, 2020

Second Quarter 2020 | PACW | p. 34 Deposits

Second Quarter 2020 | PACW | p. 35 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 June 30, 2020 Noninterest - bearing demand Interest checking Money market Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 June 30, 2019 ($ in millions) Deposit Category Average $ Quarter-End $ Mix Average $ Quarter-End $ Mix Noninterest-bearing demand 8,292$ 8,630$ 38% 7,544$ 7,299$ 39% Interest checking 3,899 4,858 21% 3,190 3,220 17% Money market 5,153 5,498 24% 4,650 4,578 24% Savings 524 550 2% 526 520 3% Total core deposits 17,868 19,536 85% 15,910 15,617 83% Non-core non-maturity deposits 1,064 1,217 5% 449 437 2% Total non-maturity deposits 18,932 20,753 90% 16,359 16,054 85% Time deposits $250,000 and under 1,843 1,523 7% 2,278 2,284 12% Time deposits over $250,000 633 653 3% 453 468 3% Total time deposits 2,476 2,176 10% 2,731 2,752 15% Total deposits (1) 21,408$ 22,929$ 100% 19,090$ 18,806$ 100% At or For the Quarter Ended June 30, 2020 At or For the Quarter Ended June 30, 2019 Deposit Detail (1) Does not include $1.4 billion and $2.0 billion of client investment funds held at June 30, 2020 and June 30, 2019, respectively. Core: 85% Core: 83%

Second Quarter 2020 | PACW | p. 36 ($ in millions) Time Deposits Time Deposits Total Time Maturities $250,000 and Under Over $250,000 Deposits Due in three months or less 810$ 258$ 1,068$ Due in over three months through six months 249 109 358 Due in over six months through twelve months 282 273 555 Due in over 12 months through 24 months 76 11 87 Due in over 24 months 106 2 108 Total 1,523$ (1) 653$ 2,176$ June 30, 2020 $18.8 $19.7 $19.2 $19.6 $22.9 1.35% 1.34% 1.14% 0.95% 0.40% 0.81% 0.83% 0.71% 0.59% 0.25% 0.00% 0.50% 1.00% 1.50% 2.00% 0.0 5.0 10.0 15.0 20.0 25.0 2Q19 3Q19 4Q19 1Q20 2Q20 Cost Balance ($ in Billions) Core Deposits Non-Core Deposits Cost of Average Interest-Bearing Deposits Cost of Average Total Deposits Deposit Portfolio (1) Includes brokered deposits of $0.7 billion with a weighted average maturity of 8 months and a weighted average cost of 1.34%.

Second Quarter 2020 | PACW | p. 37 Net Interest Margin

Second Quarter 2020 | PACW | p. 38 5.18% 4.99% 4.91% 4.69% 4.72% 4.46% 4.33% 4.31% 4.20% 3.64% 3.61% 3.64% 3.59% 3.60% 3.49% 3.43% 3.34% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 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 1Q20. Peer group is banks in the KBW Nasdaq Regional Bank Index – “KRX”.

Second Quarter 2020 | PACW | p. 39 6.30% 6.20% 6.27% 6.16% 6.26% 5.91% 5.67% 5.54% 5.01% 6.09% 6.06% 6.11% 6.09% 6.18% 5.86% 5.60% 5.44% 4.96% 4.77% 4.87% 4.99% 5.08% 5.08% 4.96% 4.76% 4.57% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 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 1Q20. Peer group is banks in the KBW Nasdaq Regional Bank Index – “KRX”.

Second Quarter 2020 | PACW | p. 40 0.37% 0.46% 0.62% 0.73% 0.81% 0.83% 0.71% 0.59% 0.25% 0.50% 0.60% 0.69% 0.80% 0.84% 0.85% 0.76% 0.64% 1.45% 1.74% 1.92% 2.40% 2.40% 2.19% 1.76% 1.39% 0.25% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 PACW - Reported Average Total Deposits Cost KRX - Median Deposits Cost Avg Fed Funds Rate Deposit Franchise – 2Q20 Cost of 25 Basis Points Source: S&P Global Market Intelligence. Peer data through 1Q20. Peer group is banks in the KBW Nasdaq Regional Bank Index – “KRX”.

Second Quarter 2020 | PACW | p. 41 Interest Rate Components of the Loan and Lease Portfolio 74.0% 76.0% 78.0% 80.0% 82.0% 84.0% 8,000 8,250 8,500 8,750 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 June 30, 2020 Volume Percent ($ in millions) Interest Rate Scenario Forecasted Net Interest Income* Percentage Change from Base Forecasted Net Interest Margin* Up 300 bps 1,145.3 15.9 4.65% Up 200 bps 1,036.4 4.9 4.21% Up 100 bps 1,015.1 2.7 4.12% Base case 998.43 - 4.22% Down 25 bps 1,010.8 - 0.3% 4.21% Down 50 bps 1,006.3 - 0.7% 4.19% * - Tax equivalent 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 June 30, 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. $899mm $2,290mm $874mm $4,492mm 1 Year 2 Years 3 Years > 3 Years Fixed/Hybrid Years to Maturity/Repricing Fixed - Rate , 24% Variable - Rate, 57% Hybrid , 19%, Loan Portfolio by Repricing Type A1

Second Quarter 2020 | PACW | p. 42 Investment Securities

Second Quarter 2020 | PACW | p. 43 Diversified Investment Portfolio (1) Fair value at 6/30/20 (2) Yield is for 2Q20 (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 , $227mm , 6% Agency Residential MBS , $249mm , 6% Agency Residential CMOs , $1,050mm , 27% Agency Commercial MBS , $1,133mm , 29% Private CMOs , $97mm , 3% Municipal Securities , $888mm , 23% Collateralized Loan Obligations , $137mm , 4% Other, $70mm , 2% $3.9 Billion Total Investment Portfolio (1) 6.0 6.3 6.3 6.1 6.4 4.5 4.4 4.4 3.5 3.6 2 3 4 5 6 7 2Q19 3Q19 4Q19 1Q20 2Q20 Years Average Life and Effective Duration Average Life Effective Duration S&P Ratings % Total Issue Type % Total AAA 18% G.O. Limited 5% AA 77% G.O . Unlimited 59% A 2% Revenue 36% Not Rated (3) 3% 100% 100% 2.87% overall portfolio tax equivalent yield (2) Municipal Securities Composition

Second Quarter 2020 | PACW | p. 44 Controlled Expenses

Second Quarter 2020 | PACW | p. 45 39.8% 40.9% 41.7% 42.4% 41.6% 42.3% 44.8% 40.6% 42.9% 54.8% 53.7% 54.1% 54.3% 54.3% 54.1% 55.3% 56.4% 40.7% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 PACW Efficiency Ratio Median Efficiency Ratio Banks in KRX Index Efficiency Ratio Trend Excluding FHLB prepayment penalty

Second Quarter 2020 | PACW | p. 46 Company Overview

Second Quarter 2020 | PACW | p. 47 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

Second Quarter 2020 | PACW | p. 48 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

Second Quarter 2020 | PACW | p. 49 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

Second Quarter 2020 | PACW | p. 50 Credit De - Risking – Specific Portfolios $955mm $844mm $452mm $334mm $237mm 2016 2017 2018 2019 2Q20 Healthcare Real Estate Loans 16% 22% 39% 55% 52% 41% 15% 12% 5% 3% 5% 7% 46% 45% 45% 32% 34% 41% 23% 21% 11% 10% 9% 11% $2.0b $2.1b $2.0b $2.2b $2.7b $1.8b 2016 2017 2018 2019 1Q20 2Q20 Venture Banking Loan Portfolio Equity Fund Loans Late Stage Expansion 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 ▪ Healthcare R.E. comprised of $98mm in skilled nursing, $79mm in assisted living and $60mm in other healthcare facilities $2,373mm $279mm $114mm $38mm $37mm 2016 2017 2018 2019 2Q20 Commercial Cash Flow Loans Exited Business Reduced Exposure

Second Quarter 2020 | PACW | p. 51 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: ($ in thousands, except per share amounts) June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 Tangible Common Equity Ratio & Tangible Book Value Per Share Stockholders' equity 3,452,898$ 3,390,389$ 4,954,697$ 4,920,108$ 4,852,010$ Less: Intangible assets 1,109,234 1,113,116 2,587,064 2,591,217 2,596,050 Tangible common equity 2,343,664$ 2,277,273$ 2,367,633$ 2,328,891$ 2,255,960$ Total assets 27,365,738$ 26,143,267$ 26,770,806$ 26,724,627$ 26,344,414$ Less: Intangible assets 1,109,234 1,113,116 2,587,064 2,591,217 2,596,050 Tangible assets 26,256,504$ 25,030,151$ 24,183,742$ 24,133,410$ 23,748,364$ Equity to assets ratio 12.62% 12.97% 18.51% 18.41% 18.42% Tangible common equity ratio (1) 8.93% 9.10% 9.79% 9.65% 9.50% Book value per share 29.17$ 28.75$ 41.36$ 41.06$ 40.49$ Tangible book value per share (2) 19.80$ 19.31$ 19.77$ 19.43$ 18.83$ Shares outstanding 118,374,603 117,916,789 119,781,605 119,831,192 119,829,104 Return on Average Tangible Equity Net earnings (loss) 33,204$ (1,433,111)$ 117,881$ 110,026$ 128,125$ Add: goodwill impairment - 1,470,000 - - - Add: intangible amortization 3,882 3,948 4,153 4,833 4,870 Adjusted net earnings 37,086$ 40,837$ 122,034$ 114,859$ 132,995$ Average stockholders' equity 3,446,850$ 4,956,778$ 4,930,182$ 4,890,746$ 4,818,889$ Less: Average intangible assets 1,111,302 2,569,189 2,589,217 2,593,925 2,598,762 Average tangible common equity 2,335,548$ 2,387,589$ 2,340,965$ 2,296,821$ 2,220,127$ Return on average equity 3.87% -116.28% 9.49% 8.93% 10.66% Return on average tangible equity (3) 6.39% 6.88% 20.68% 19.84% 24.03% (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

Second Quarter 2020 | PACW | p. 52 Non - GAAP Measurements The table below presents reconciliations of certain GAAP to non - GAAP financial measures: ($ in thousands) June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 PPNR and PPNR Return on Average Assets Net earnings (loss) 33,204$ (1,433,111)$ 128,125$ (1,399,907)$ 240,729$ Add: Provision for credit losses 120,000 112,000 8,000 232,000 12,000 Add: Goodwill impairment - 1,470,000 - 1,470,000 - Add: Income tax expense 12,968 11,988 50,239 24,956 93,288 Pre-provision, pre-goodwill impairment, pre-tax revenue ("PPNR") 166,172$ 160,877$ 186,364$ 327,049$ 346,017$ Average assets 26,621,227$ 27,099,040$ 25,849,189$ 26,860,133$ 25,812,771$ Return on average assets (1) 0.50% -21.27% 1.99% -10.48% 1.88% PPNR return on average assets (2) 2.51% 2.39% 2.89% 2.45% 2.70% (1) Annualized net earnings (loss) divided by average assets (2) Annualized PPNR divided by average asets Three Months Ended Six Months Ended

Second Quarter 2020 | PACW | p. 53 Bank Holding Companies and Banks in the KRX Index Total Assets ( in billions ) Source: S&P Global Market Intelligence. Total assets as of March 31, 2020. Banks in the KRX Index as of June 30, 2020. 1 New York Community Bancorp, Inc. NYCB $ 54.261 26 Fulton Financial Corporation FULT $ 22.930 2 Signature Bank SBNY $ 53.075 27 BancorpSouth Bank BXS $ 21.033 3 Popular, Inc. BPOP $ 52.804 28 First Hawaiian, Inc. FHB $ 20.756 4 Synovus Financial Corp. SNV $ 50.620 29 Old National Bancorp ONB $ 20.741 5 TCF Financial Corp. TCF $ 48.594 30 United Bankshares , Inc. UBSI $ 20.371 6 East West Bancorp Inc. EWBC $ 45.949 31 First Midwest Bancorp, Inc. FMBI $ 19.753 7 Valley National Bancorp VLY $ 39.121 32 Bank of Hawaii Corporation BOH $ 18.542 8 Wintrust Financial Corporation WTFC $ 38.800 33 Cathay General Bancorp CATY $ 18.296 9 Texas Capital Bankshares , Inc. TCBI $ 35.879 34 Washington Federal, Inc. WAFD $ 17.376 10 F.N.B. Corporation FNB $ 35.049 35 Cadence Bancorporation CADE $ 17.238 11 Cullen/Frost Bankers, Inc. CFR $ 34.147 36 South State Corporation SSB $ 16.643 12 Associated Banc - Corp ASB $ 33.908 37 Hope Bancorp, Inc. HOPE $ 16.021 13 BankUnited , Inc. BKU $ 33.596 38 Home Bancshares, Inc. HOMB $ 15.532 14 Hancock Whitney Corporation HWC $ 31.762 39 Glacier Bancorp, Inc. GBCI $ 15.158 15 Prosperity Bancshares, Inc. PB $ 31.743 40 First Financial Bancorp FFBC $ 15.058 16 Webster Financial Corporation WBS $ 31.655 41 Columbia Banking Systems, Inc. COLB $ 14.039 17 Sterling Bancorp STL $ 30.335 42 Trustmark Corporation TRMK $ 14.020 18 Pinnacle Financial Partners, Inc. PNFP $ 29.264 43 United Community Banks, Inc. UCBI $ 13.086 19 Western Alliance Bancorporation WAL $ 29.158 44 Community Bank Systems, Inc. CBU $ 11.809 20 Umpqua Holdings Corporation UMPQ $ 27.540 45 CVB Financial Corp. CVBF $ 11.607 21 Commerce Bankshares , Inc. CBSH $ 26.793 46 Provident Financial Services, Inc. PFS $ 10.085 22 Investors Bancorp ISBC $ 26.678 47 First Financial Bankshares , Inc. FFIN $ 9.701 23 UMB Financial Corporation UMBF $ 26.245 48 Boston Private Financial Holdings, Inc. BPFH $ 8.746 24 PacWest Bancorp PACW $ 26.143 49 First Commonwealth Financial Corporation FCF $ 8.515 25 Bank OZK OZK $ 24.566 50 Brookline Bancorp, Inc. BRKL $ 8.462

XML

Cover	Jul. 16, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 16, 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