8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest

event reported) April 20, 2021

PacWest Bancorp

(Exact name of registrant as specified in its charter)

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

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

(Address of principal executive offices and zip code)

(310) 887-8500

(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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

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

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

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

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

Emerging growth company  ¨

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

Item 2.02 Results of Operations and Financial Condition.*

On April 20, 2021, PacWest Bancorp (the “Company”) announced its results of operations and financial condition for the three months ended March 31, 2021. The press release announcing the financial results for the three months ended March 31, 2021 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation regarding the Company’s financial results for the three months ended March 31, 2021 is furnished as Exhibit 99.2 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits.

Exhibit Number	Description
99.1	Press release dated April 20, 2021 announcing PacWest’s results of operations and financial condition for the three months ended March 31, 2021.
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 Financial Officer

Date: April 20, 2021

EX-99.1

Exhibit 99.1

April 20, 2021

PACWEST BANCORP ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2021

FOR IMMEDIATE RELEASE

FIRST QUARTER 2021 RESULTS

FIRST QUARTER 2021 HIGHLIGHTS
•	Net Earnings of $150.4 Million or $1.27 Per Diluted Share
•	Core Deposits Up $3.3 Billion or 15% in 1Q21; Represents 91% of Total Deposits
•	Provision for Credit Losses Benefit of $48.0 Million in 1Q21 Compared to Provision of $10.0 Million in 4Q20
•	Net Interest Income (TE) of $264.6 Million, Compared With $262.1 Million in 4Q20
•	Noninterest Income of $44.8 Million, Up 12% From 4Q20, With Continued Strength in Warrant Income As Well As a $10.1 Million Gain on an Equity Investment
•	Noninterest Expense of $150.1 Million, Up 11% From 4Q20, Driven By Two Months of Civic Financial Services (“Civic”) Operations, Higher Acquisition Costs, and a Legal Settlement
•	Classified and Special Mention Loans Fell $102.1 Million and $88.3 Million, Respectively, From 4Q20
•	ACL Ratio of 2.02% and ALLL Ratio of 1.54%; Excluding PPP Loans, ACL Ratio of 2.14% and ALLL Ratio of 1.63%
•	Net Charge-offs to Average Loans/Leases of 6 bps
•	Cost of Deposits Decreased 3 bps to 11 bps
•	Loan and Lease Production of $1.6 Billion Up From $1.1 Billion in 4Q20; WAC of 5.39% (Excluding PPP Loans) vs. 4.41% in 4Q20
•	Net Loans and Leases of $19.0 Billion, Down Slightly From 4Q20 As Production Was Offset With Payoffs and Paydowns As Well As Further Reduction in the Security Monitoring Portfolio
•	Originated $381 Million of PPP Loans in 1Q21
•	Strong Capital Position – CET1 Ratio of 10.41%
•	Civic Acquisition Completed on February 1, 2021
•	On March 31, 2021, Signed Agreement to Purchase the Homeowners Association Business from MUFG Union Bank, N.A. With Approximately $4.0 Billion of Deposits With a Cost of 8 bps; Close Expected in 4Q21

CEO COMMENTARY

Matt Wagner, President and CEO, commented, “Our continued focus on growing net interest income produced strong first quarter earnings boosted by continued deposit driven balance sheet growth and improved credit costs as a result of improved economic conditions. Our first quarter results produced a return on assets of 1.94% and a return on tangible equity of 25.67%.”

“We experienced strong deposit growth again in the first quarter driven by outstanding growth from our venture banking clients as well as our commercial bank. This increasing liquidity has expanded our average balance of deposits at the Fed, which grew to $4.8 billion in the first quarter with a yield of 13 basis points. While our focus is on managing net interest income, this excess liquidity continues to be a drag on our net interest margin, which had a negative impact of 61 basis points in the first quarter.”

“Credit quality continued to improve as we experienced decreases in nonaccrual, special mention, and classified loans and leases in the first quarter, while net charge-offs were $2.7 million.”

“We closed the Civic acquisition on February 1, 2021 and in two months Civic originated $231 million of loans. We expect Civic loan production to remain strong and, as their loan portfolio continues to grow, it will help sustain our loan yields and drive loan growth.”

Page 1

FINANCIAL HIGHLIGHTS

`	At or For the									At or For the
	Three Months Ended									Three Months Ended
	March 31,			December 31,			Increase			March 31,						Increase
Financial Highlights (1)	2021			2020			(Decrease)			2021			2020			(Decrease)
	(Dollars in thousands, except per share data)
Net earnings (loss)	$	150,406		$	116,830		$	33,576		$	150,406		$	(1,433,111	)	$	1,583,517
Diluted earnings (loss) per share	$	1.27		$	0.99		$	0.28		$	1.27		$	(12.23	)	$	13.50
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") (2)	$	155,962		$	163,376		$	(7,414	)	$	155,962		$	160,877		$	(4,915	)
Return on average assets		1.94	%		1.58	%		0.36			1.94	%		(21.27	)%		23.21
PPNR return on average assets (2)		2.01	%		2.22	%		(0.21	)		2.01	%		2.39	%		(0.38	)
Return on average tangible equity (2)		25.67	%		19.63	%		6.04			25.67	%		6.88	%		18.79
Yield on average loans and leases (tax equivalent)		5.20	%		5.15	%		0.05			5.20	%		5.54	%		(0.34	)
Cost of average total deposits		0.11	%		0.14	%		(0.03	)		0.11	%		0.59	%		(0.48	)
Net interest margin ("NIM") (tax equivalent)		3.69	%		3.83	%		(0.14	)		3.69	%		4.31	%		(0.62	)
Efficiency ratio		46.4	%		43.6	%		2.8			46.4	%		40.6	%		5.8
Total assets	$	32,856,533		$	29,498,442		$	3,358,091		$	32,856,533		$	26,143,267		$	6,713,266
Loans and leases held for investment, net of deferred fees	$	18,979,228		$	19,083,377		$	(104,149	)	$	18,979,228		$	19,745,305		$	(766,077	)
Noninterest-bearing demand deposits	$	11,017,462		$	9,193,827		$	1,823,635		$	11,017,462		$	7,510,218		$	3,507,244
Core deposits	$	25,576,348		$	22,264,480		$	3,311,868		$	25,576,348		$	16,050,522		$	9,525,826
Total deposits	$	28,223,291		$	24,940,717		$	3,282,574		$	28,223,291		$	19,575,837		$	8,647,454
As percentage of total deposits:
Noninterest-bearing demand deposits		39	%		37	%		2			39	%		38	%		1
Core deposits		91	%		89	%		2			91	%		82	%		9
Equity to assets ratio		11.12	%		12.19	%		(1.07	)		11.12	%		12.97	%		(1.85	)
Common equity tier 1 capital ratio		10.41	%		10.53	%		(0.12	)		10.41	%		9.22	%		1.19
Total capital ratio		13.63	%		13.76	%		(0.13	)		13.63	%		12.07	%		1.56
Tangible common equity ratio (2)		7.68	%		8.78	%		(1.10	)		7.68	%		9.10	%		(1.42	)
Book value per share	$	30.68		$	30.36		$	0.32		$	30.68		$	28.75		$	1.93
Tangible book value per
share (2)	$	20.39		$	21.05		$	(0.66	)	$	20.39		$	19.31		$	1.08

(1) The operations of Civic are included from its February 1, 2021 acquisition date.

(2) Non-GAAP measure.

Page 2

INCOME STATEMENT HIGHLIGHTS

NET INTEREST INCOME

Net interest income increased by $2.1 million to $261.3 million for the first quarter of 2021 compared to $259.2 million for the fourth quarter of 2020 due mainly to higher income on investment securities and lower interest expense, partially offset by lower income on loans and leases and the negative impact on net interest income due to the change in the earning assets mix. The tax equivalent yield on average loans and leases was 5.20% for the first quarter of 2021 compared to 5.15% for the fourth quarter of 2020. The increase in the tax equivalent yield on average loans and leases was primarily due to higher loan discount accretion of $1.5 million and higher amortized loan fee income of $2.9 million mainly from higher PPP loan forgiveness in the first quarter of 2021 as compared to the fourth quarter of 2020.

The tax equivalent NIM was 3.69% for the first quarter of 2021 compared to 3.83% for the fourth quarter of 2020. The decrease in the NIM was primarily due to the change in the earning assets mix. The average balance of deposits in financial institutions increased by $1.2 billion, the average balance of investment securities increased by $494.1 million, and the average balance of loans and leases increased by $158.1 million in the first quarter of 2021. This excess liquidity had a negative impact on the first quarter tax equivalent NIM of 61 basis points.

The cost of average total deposits decreased to 0.11% in the first quarter of 2021 from 0.14% for the fourth quarter of 2020. The lower cost of average total deposits was due primarily to the repricing of maturing brokered time deposits and the increased average balance of noninterest-bearing deposits.

PROVISION FOR CREDIT LOSSES

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

	Three Months Ended
	March 31,			December 31,			Increase
Provision for Credit Losses	2021			2020			(Decrease)
					(In thousands)
(Reduction in) addition to allowance for loan  and lease losses	$	(53,000	)	$	21,000		$	(74,000	)
Addition to (reduction in) reserve for unfunded loan commitments		5,000			(11,000	)		16,000
Total provision for credit losses	$	(48,000	)	$	10,000		$	(58,000	)

The provision for credit losses decreased by $58.0 million to a benefit of $48.0 million for the first quarter of 2021 compared to a $10.0 million provision for the fourth quarter of 2020. This reduction reflected improvement in certain key macro-economic forecast variables and decreased provisions for individually evaluated loans and leases, partially offset by a higher provision for unfunded commitments which grew by $526.6 million.

Page 3

Noninterest Income

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

	Three Months Ended
	March 31,		December 31,		Increase
Noninterest Income	2021		2020		(Decrease)
			(In thousands)
Service charges on deposit accounts	$	2,934	$	3,119	$	(185	)
Other commissions and fees		9,158		9,974		(816	)
Leased equipment income		11,354		9,440		1,914
Gain on sale of loans and leases		139		1,671		(1,532	)
Gain on sale of securities		101		4		97
Other income:
Dividends and gains on equity investments		10,904		5,064		5,840
Warrant income		6,123		7,299		(1,176	)
Other		4,116		3,279		837
Total noninterest income	$	44,829	$	39,850	$	4,979

Noninterest income increased by $5.0 million to $44.8 million for the first quarter of 2021 compared to $39.9 million for the fourth quarter of 2020 due primarily to an increase of $5.8 million in dividends and gains on equity investments and a $1.9 million increase in leased equipment income, offset partially by decreases of $1.5 million in gain on sale of loans and leases and $1.2 million in warrant income. The increase in dividends and gains on equity investments was due primarily to a $10.1 million gain on one equity investment, offset partially by lower net fair value gains on equity investments still held. The increase in leased equipment income was due primarily to a higher average balance of equipment leased to others under operating leases. The decrease in the gain on sale of loans and leases resulted from the sales of $72.6 million of loans for gains of $0.1 million in the first quarter of 2021 compared to sales of $119.9 million for gains of $1.7 million in the fourth quarter of 2020. The decrease in warrant income was primarily attributable to lower gains from exercised warrants after record gains in the fourth quarter of 2020.

Noninterest Expense

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

	Three Months Ended
	March 31,		December 31,			Increase
Noninterest Expense	2021		2020			(Decrease)
			(In thousands)
Compensation	$	79,882	$	73,171		$	6,711
Occupancy		14,054		14,083			(29	)
Data processing		6,957		6,718			239
Other professional services		5,126		6,800			(1,674	)
Insurance and assessments		4,903		5,064			(161	)
Intangible asset amortization		3,079		3,172			(93	)
Leased equipment depreciation		8,969		7,501			1,468
Foreclosed assets (income) expense, net		1		(272	)		273
Acquisition, integration and reorganization costs		3,425		1,060			2,365
Customer related expense		4,818		4,430			388
Loan expense		3,193		3,926			(733	)
Other		15,729		10,029			5,700
Total noninterest expense	$	150,136	$	135,682		$	14,454

Page 4

Noninterest expense increased by $14.5 million to $150.1 million for the first quarter of 2021 compared to $135.7 million for the fourth quarter of 2020 due primarily to increases of $6.7 million in compensation expense, $5.7 million in other expense, $2.4 million in acquisition, integration and reorganization costs, and $1.5 million in leased equipment depreciation, offset partially by a decrease of $1.7 million in other professional expense. The increase in compensation expense was mostly due to compensation expense related to the Civic operations, while, in total, Civic’s noninterest expenses added $10.8 million to total noninterest expense. The increase in other expense was largely due to a legal settlement in excess of amounts previously accrued. The increase in acquisition, integration and reorganization costs was due to advisory services and integration expenses related to the closed Civic acquisition and the pending acquisition of MUFG Union Bank’s Homeowners Association Services Division. The increase in leased equipment depreciation was due primarily to an increase in the average balance of equipment leased to others under operating leases. The decrease in other professional expense was due primarily to lower consulting expense.

Income Taxes

The effective income tax rate was 26.3% in the first quarter of 2021 compared to 23.8% for the fourth quarter of 2020. The increase was primarily due to higher pre-tax income in relation to discrete items for the quarter. The effective income tax rate for the full year 2021 is currently estimated to be in the range of 25% to 27%.

BALANCE SHEET HIGHLIGHTS

Deposits and Client Investment Funds

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

	March 31, 2021					December 31, 2020					March 31, 2020
			% of					% of					% of
Deposit Composition	Balance		Total			Balance		Total			Balance		Total
	(Dollars in thousands)
Noninterest-bearing demand	$	11,017,462		39	%	$	9,193,827		37	%	$	7,510,218		38	%
Interest checking		6,862,398		25	%		5,974,910		24	%		3,333,147		17	%
Money market		7,112,610		25	%		6,532,917		26	%		4,712,118		24	%
Savings		583,878		2	%		562,826		2	%		495,039		3	%
Total core deposits		25,576,348		91	%		22,264,480		89	%		16,050,522		82	%
Non-core non-maturity deposits		1,162,590		4	%		1,149,467		5	%		836,157		4	%
Total non-maturity deposits		26,738,938		95	%		23,413,947		94	%		16,886,679		86	%
Time deposits $250,000 and under		940,340		3	%		994,197		4	%		2,086,188		11	%
Time deposits over $250,000		544,013		2	%		532,573		2	%		602,970		3	%
Total time deposits		1,484,353		5	%		1,526,770		6	%		2,689,158		14	%
Total deposits	$	28,223,291		100	%	$	24,940,717		100	%	$	19,575,837		100	%

At March 31, 2021, core deposits totaled $25.6 billion or 91% of total deposits, including $11.0 billion of noninterest-bearing demand deposits or 39% of total deposits. Core deposits increased by $3.3 billion or 15% in the first quarter of 2021 driven by continued strong deposit growth from our venture banking clients.

In addition to deposit products, we also offer alternative, non-depository cash investment options for select clients. These alternative options include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds at March 31, 2021 were $1.4 billion, of which $0.9 billion was managed by PWAM.

Page 5

Loans and Leases

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

	Three Months Ended
Roll Forward of Loans and Leases Held	March 31,			December 31,
for Investment, Net of Deferred Fees (1)	2021			2020
	(Dollars in thousands)
Balance, beginning of period	$	19,083,377		$	19,026,200
Additions:
Production		1,612,777			1,131,165
Disbursements		1,022,986			1,354,038
Total production and disbursements		2,635,763			2,485,203
Reductions:
Payoffs		(1,635,264	)		(1,330,321	)
Paydowns		(1,067,418	)		(957,075	)
Total payoffs and paydowns		(2,702,682	)		(2,287,396	)
Sales		(72,641	)		(119,931	)
Transfers to foreclosed assets		(647	)		(385	)
Charge-offs		(3,988	)		(20,314	)
Transfers to loans held for sale		(25,554	)		-
Total reductions		(2,805,512	)		(2,428,026	)
Loans acquired through Civic acquisition		65,600			-
Net increase (decrease)		(104,149	)		57,177
Balance, end of period	$	18,979,228		$	19,083,377
Weighted average rate on production (2)		4.36	%		4.41	%

(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 43 basis points to loan yields in 2021.

Loans and leases held for investment, net of deferred fees, decreased by $104.1 million in the first quarter of 2021 to $19.0 billion at March 31, 2021. The decrease in the loans and leases balance for the first quarter of 2021 was primarily due to a $123.5 million decrease in the security monitoring portfolio, for which new originations have been discontinued since the fourth quarter of 2019. The weighted average rate on first quarter of 2021 production decreased to 4.36% due to first quarter production including $381 million of PPP loans at a coupon rate of 1%, while the fourth quarter of 2020 included no PPP loan production. Excluding PPP loans, the weighted average rate on new production for the first quarter of 2021 was 5.39%.

Page 6

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

	March 31, 2021					December 31, 2020					March 31, 2020
			% of					% of					% of
Loan and Lease Portfolio	Balance		Total			Balance		Total			Balance		Total
		(In thousands)
Real estate mortgage:
Commercial	$	3,941,610		21	%	$	4,096,671		21	%	$	4,220,649		21	%
Income producing and other residential		4,045,603		21	%		3,803,265		20	%		3,788,295		19	%
Total real estate mortgage		7,987,213		42	%		7,899,936		41	%		8,008,944		40	%
Real estate construction and land:
Commercial		990,035		5	%		1,117,121		6	%		1,087,505		6	%
Residential		2,575,788		14	%		2,243,160		12	%		1,792,748		9	%
Total real estate construction and land		3,565,823		19	%		3,360,281		18	%		2,880,253		15	%
Total real estate		11,553,036		61	%		11,260,217		59	%		10,889,197		55	%
Commercial:
Asset-based		3,383,403		18	%		3,429,283		18	%		3,938,402		20	%
Venture capital		1,495,798		8	%		1,698,508		9	%		2,715,837		14	%
Other commercial		2,206,639		11	%		2,375,114		12	%		1,771,985		9	%
Total commercial		7,085,840		37	%		7,502,905		39	%		8,426,224		43	%
Consumer		340,352		2	%		320,255		2	%		429,884		2	%
Total loans and leases held for investment, net of deferred fees	$	18,979,228		100	%	$	19,083,377		100	%	$	19,745,305		100	%
Total unfunded loan commitments	$	8,127,999				$	7,601,390				$	7,697,724

Allowance for Credit Losses

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

	Three Months Ended March 31, 2021
	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	$	348,181		$	85,571	$	433,752
Charge-offs		(3,988	)		-		(3,988	)
Recoveries		1,252			-		1,252
Net charge-offs		(2,736	)		-		(2,736	)
Provision		(53,000	)		5,000		(48,000	)
Ending balance	$	292,445		$	90,571	$	383,016

	Three Months Ended December 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	$	345,966		$	96,571		$	442,537
Charge-offs		(20,314	)		-			(20,314	)
Recoveries		1,529			-			1,529
Net charge-offs		(18,785	)		-			(18,785	)
Provision		21,000			(11,000	)		10,000
Ending balance	$	348,181		$	85,571		$	433,752

Page 7

The following table presents allowance for credit losses information as of and for the dates and periods indicated:

	March 31,			December 31,			Increase
Allowance for Credit Losses	2021			2020			(Decrease)
		(Dollars in thousands)
Allowance for loan and lease losses	$	292,445		$	348,181		$	(55,736	)
Reserve for unfunded loan commitments		90,571			85,571			5,000
Allowance for credit losses	$	383,016		$	433,752		$	(50,736	)
Provision for credit losses (for the quarter)	$	(48,000	)	$	10,000		$	(58,000	)
Net charge-offs (for the quarter)	$	2,736		$	18,785		$	(16,049	)
Net charge-offs to average loans and leases (for the quarter)		0.06	%		0.40	%
Allowance for loan and lease losses to loans and leases held for investment		1.54	%		1.82	%
Allowance for loan and lease losses to loans and leases held for investment, excluding PPP loans		1.63	%		1.93	%
Allowance for credit losses to loans and leases held for investment		2.02	%		2.27	%
Allowance for credit losses to loans and leases held for investment, excluding PPP loans		2.14	%		2.41	%

The allowance for credit losses decreased by $50.7 million in the first quarter of 2021 to $383.0 million at March 31, 2021. The decrease in the allowance for credit losses during the first quarter of 2021 was attributable to a provision for credit losses benefit of $48.0 million and $2.7 million in net charge-offs.

Net charge-offs were $2.7 million for the first quarter of 2021. Gross charge-offs of $4.0 million were reduced by recoveries of $1.3 million.

Net charge-offs were $18.8 million for the fourth quarter of 2020. Gross charge-offs of $20.3 million were reduced by recoveries of $1.5 million. The most significant charge-off was $15.5 million related to a security monitoring loan.

Security monitoring loans decreased by 38% from $329.3 million as of December 31, 2020 to $205.8 million as of March 31, 2021, as the Company continues to actively reduce the remaining loans. As of March 31, 2021, $172.1 million or 84% of these security monitoring loans are performing and pass-rated, while $33.7 million are classified, of which $6.1 million are on nonaccrual.

Page 8

CREDIT QUALITY

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

	March 31,			December 31,			Increase
Credit Quality Metrics	2021			2020			(Decrease)
		(Dollars in thousands)
NPAs and Performing TDRs:
Nonaccrual loans and leases held for investment (1)	$	67,652		$	91,163		$	(23,511	)
Accruing loans contractually past due 90 days or more		-			-			-
Foreclosed assets, net		14,298			14,027			271
Total nonperforming assets ("NPAs")	$	81,950		$	105,190		$	(23,240	)
Performing TDRs held for investment	$	27,999		$	14,254		$	13,745
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.36	%		0.48	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.43	%		0.55	%
Allowance for credit losses to nonaccrual loans and leases held for investment		566.2	%		475.8	%
Loan and Lease Credit Risk Ratings:
Pass	$	18,183,114		$	18,096,830		$	86,284
Special mention		632,997			721,285			(88,288	)
Classified		163,117			265,262			(102,145	)
Total loans and leases held for investment, net of deferred fees	$	18,979,228		$	19,083,377		$	(104,149	)
Classified loans and leases held for investment to loans and leases held for investment		0.86	%		1.39	%

(1) Nonaccrual loans include guaranteed amounts of $18.4 million at March 31, 2021 and $13.9 million at December 31, 2020.

Since pro-actively downgrading certain loans at the onset of the pandemic in the first quarter of 2020, special mention loans and leases have decreased $265.7 million from their peak in the first quarter of 2020, while classified loans and leases have decreased $130.1 million from their peak in the second quarter of 2020, and each have continued their decline in the first quarter of 2021.

Page 9

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:

	March 31, 2021				December 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	$	46,436	$	5	$	43,731	$	3,636	$	2,705		$	(3,631	)
Income producing and other residential		2,471		6,339		1,826		600		645			5,739
Total real estate mortgage		48,907		6,344		45,557		4,236		3,350			2,108
Real estate construction and land:
Commercial		302		-		315		-		(13	)		-
Residential		416		1,241		-		759		416			482
Total real estate construction and land		718		1,241		315		759		403			482
Commercial:
Asset-based		2,379		-		2,679		-		(300	)		-
Venture capital		2,432		6,750		1,980		540		452			6,210
Other commercial		12,660		1,251		40,243		2,078		(27,583	)		(827	)
Total commercial		17,471		8,001		44,902		2,618		(27,431	)		5,383
Consumer		556		954		389		1,260		167			(306	)
Total held for investment	$	67,652	$	16,540	$	91,163	$	8,873	$	(23,511	)	$	7,667

During the first quarter of 2021, nonaccrual loans and leases decreased by $23.5 million due primarily to one security monitoring loan for $25.6 million being moved to held for sale at March 31, 2021. The sale of this loan was completed in early April 2021 and resulted in a gain of $1.4 million.

CAPITAL

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

	March 31, 2021
				Excluding				December 31,
				PPP				2020
	Actual (1)			Loans (1)				Actual
PacWest Bancorp Consolidated:
Tier 1 leverage capital ratio		7.95	%		8.25	%	(3)		8.55	%
Common equity tier 1 capital ratio		10.41	%		10.41	%			10.53	%
Total capital ratio		13.63	%		13.63	%			13.76	%
Tangible common equity ratio (2)		7.68	%		7.95	%	(3)		8.78	%

(1) Capital information for March 31, 2021 is preliminary.

(2) Non-GAAP measure.

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

Page 10

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $32 billion in assets headquartered in Los Angeles, California, with an executive office in Denver, Colorado, with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 70 full-service branches located in California, one branch located in Durham, North Carolina, and one branch located in Denver, Colorado. The Bank provides community banking products including lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices and Denver, Colorado branch office. The Bank offers national lending products including asset-based, equipment, and real estate loans and treasury management services to established middle-market businesses on a national basis. The Bank also offers venture banking products including a comprehensive suite of financial services focused on entrepreneurial and venture-backed businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States. For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.

FORWARD LOOKING STATEMENTS

This communication contains certain forward-looking information about PacWest 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, 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’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’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, the magnitude of individual loan losses on security monitoring loans, 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 PacWest 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 11

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
	March 31,			December 31,			March 31,
	2021			2020			2020
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	177,199		$	150,464		$	172,570
Interest-earning deposits in financial institutions		5,517,667			3,010,197			439,690
Total cash and cash equivalents		5,694,866			3,160,661			612,260
Securities available-for-sale, at estimated fair value		5,941,690			5,235,591			3,757,663
Federal Home Loan Bank stock, at cost		17,250			17,250			54,244
Total investment securities		5,958,940			5,252,841			3,811,907
Loans held for sale		25,554			-			-
Gross loans and leases held for investment		19,055,165			19,153,357			19,806,394
Deferred fees, net		(75,937	)		(69,980	)		(61,089	)
Total loans and leases held for investment, net of deferred fees		18,979,228			19,083,377			19,745,305
Allowance for loan and lease losses		(292,445	)		(348,181	)		(221,292	)
Total loans and leases held for investment, net		18,686,783			18,735,196			19,524,013
Equipment leased to others under operating leases		327,413			333,846			306,530
Premises and equipment, net		39,622			39,234			39,799
Foreclosed assets, net		14,298			14,027			1,701
Goodwill		1,204,092			1,078,670			1,078,670
Core deposit and customer relationship intangibles, net		21,312			23,641			34,446
Other assets		883,653			860,326			733,941
Total assets	$	32,856,533		$	29,498,442		$	26,143,267
LIABILITIES:
Noninterest-bearing deposits	$	11,017,462		$	9,193,827		$	7,510,218
Interest-bearing deposits		17,205,829			15,746,890			12,065,619
Total deposits		28,223,291			24,940,717			19,575,837
Borrowings		19,750			5,000			2,295,000
Subordinated debentures		465,814			465,812			458,994
Accrued interest payable and other liabilities		493,541			491,962			423,047
Total liabilities		29,202,396			25,903,491			22,752,878
STOCKHOLDERS' EQUITY (1)		3,654,137			3,594,951			3,390,389
Total liabilities and stockholders’ equity	$	32,856,533		$	29,498,442		$	26,143,267
Book value per share	$	30.68		$	30.36		$	28.75
Tangible book value per share (2)	$	20.39		$	21.05		$	19.31
Shares outstanding		119,105,642			118,414,853			117,916,789

(1) Includes net unrealized gain on securities available-for-sale, net	$	106,381	$	172,523	$	90,916
(2) Non-GAAP measure.

Page 12

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS)
	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	241,544		$	242,198		$	262,278
Investment securities		30,265			28,843			27,446
Deposits in financial institutions		1,528			1,135			1,608
Total interest income		273,337			272,176			291,332
Interest expense:
Deposits		7,500			8,454			28,247
Borrowings		193			37			6,778
Subordinated debentures		4,375			4,477			6,560
Total interest expense		12,068			12,968			41,585
Net interest income		261,269			259,208			249,747
Provision for credit losses		(48,000	)		10,000			112,000
Net interest income after provision for credit losses		309,269			249,208			137,747
Noninterest income:
Service charges on deposit accounts		2,934			3,119			2,658
Other commissions and fees		9,158			9,974			9,721
Leased equipment income		11,354			9,440			12,251
Gain on sale of loans and leases		139			1,671			87
Gain on sale of securities		101			4			182
Other income		21,143			15,642			4,201
Total noninterest income		44,829			39,850			29,100
Noninterest expense:
Compensation		79,882			73,171			61,282
Occupancy		14,054			14,083			14,207
Data processing		6,957			6,718			6,454
Other professional services		5,126			6,800			4,258
Insurance and assessments		4,903			5,064			4,249
Intangible asset amortization		3,079			3,172			3,948
Leased equipment depreciation		8,969			7,501			7,205
Foreclosed assets (income) expense, net		1			(272	)		66
Acquisition, integration and reorganization costs		3,425			1,060			-
Customer related expense		4,818			4,430			3,932
Loan expense		3,193			3,926			2,650
Goodwill impairment		-			-			1,470,000
Other expense		15,729			10,029			9,719
Total noninterest expense		150,136			135,682			1,587,970
Earnings (loss) before income taxes		203,962			153,376			(1,421,123	)
Income tax expense		53,556			36,546			11,988
Net earnings (loss)	$	150,406		$	116,830		$	(1,433,111	)
Basic and diluted earnings (loss) per share	$	1.27		$	0.99		$	(12.23	)
Dividends declared and paid per share	$	0.25		$	0.25		$	0.60

Page 13

PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS (LOSS) PER SHARE CALCULATIONS
	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
	(In thousands, except per share data)
Basic Earnings (Loss) Per Share:
Net earnings (loss)	$	150,406		$	116,830		$	(1,433,111	)
Less: earnings allocated to unvested restricted stock (1)		(2,355	)		(1,398	)		(939	)
Net earnings (loss) allocated to common shares	$	148,051		$	115,432		$	(1,434,050	)
Weighted-average basic shares and unvested restricted stock outstanding		118,852			118,446			118,775
Less: weighted-average unvested restricted stock outstanding		(2,003	)		(1,652	)		(1,495	)
Weighted-average basic shares outstanding		116,849			116,794			117,280
Basic earnings (loss) per share	$	1.27		$	0.99		$	(12.23	)
Diluted Earnings (Loss) Per Share:
Net earnings (loss) allocated to common shares	$	148,051		$	115,432		$	(1,434,050	)
Weighted-average diluted shares outstanding		116,849			116,794			117,280
Diluted earnings (loss) per share	$	1.27		$	0.99		$	(12.23	)

(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 14

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	March 31, 2021							December 31, 2020							March 31, 2020
			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)	$	18,927,314	$	242,846		5.20	%	$	18,769,214	$	243,188		5.15	%	$	19,065,035	$	262,764		5.54	%
Investment securities (3)		5,383,140		32,329		2.44	%		4,888,993		30,757		2.50	%		3,853,217		28,641		2.99	%
Deposits in financial institutions		4,790,231		1,528		0.13	%		3,576,335		1,135		0.13	%		537,384		1,608		1.20	%
Total interest-earning assets (1)		29,100,685		276,703		3.86	%		27,234,542		275,080		4.02	%		23,455,636		293,013		5.02	%
Other assets		2,315,197							2,100,247							3,643,404
Total assets	$	31,415,882						$	29,334,789						$	27,099,040
Liabilities and Stockholders' Equity:
Interest checking	$	6,401,869		2,232		0.14	%	$	5,191,435		2,064		0.16	%	$	3,466,812		7,135		0.83	%
Money market		7,975,996		3,278		0.17	%		7,636,220		3,225		0.17	%		5,247,866		10,016		0.77	%
Savings		572,959		35		0.02	%		567,646		35		0.02	%		497,959		160		0.13	%
Time		1,493,267		1,955		0.53	%		1,650,150		3,130		0.75	%		2,684,143		10,936		1.64	%
Total interest-bearing deposits		16,444,091		7,500		0.18	%		15,045,451		8,454		0.22	%		11,896,780		28,247		0.95	%
Borrowings		226,053		193		0.35	%		237,098		37		0.06	%		2,026,749		6,778		1.35	%
Subordinated debentures		466,101		4,375		3.81	%		463,951		4,477		3.84	%		458,399		6,560		5.76	%
Total interest-bearing liabilities		17,136,245		12,068		0.29	%		15,746,500		12,968		0.33	%		14,381,928		41,585		1.16	%
Noninterest-bearing demand deposits		10,173,459							9,589,789							7,357,717
Other liabilities		488,930							462,075							402,617
Total liabilities		27,798,634							25,798,364							22,142,262
Stockholders' equity		3,617,248							3,536,425							4,956,778
Total liabilities and stockholders' equity	$	31,415,882						$	29,334,789						$	27,099,040
Net interest income (1)			$	264,635						$	262,112						$	251,428
Net interest spread (1)						3.57	%						3.69	%						3.86	%
Net interest margin (1)						3.69	%						3.83	%						4.31	%
Total deposits (4)	$	26,617,550	$	7,500		0.11	%	$	24,635,240	$	8,454		0.14	%	$	19,254,497	$	28,247		0.59	%

(1) Tax equivalent.

(2) Includes discount accretion on acquired loans of $5.4 million, $3.8 million, and $4.8 million for the three months ended March 31, 2021, 

December 31, 2020, and March 31, 2020, respectively.

(3) Includes tax-equivalent adjustments of $2.1 million, $1.9 million, and $1.2 million for the three months ended March 31, 2021,   

December 31, 2020, and March 31, 2020 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 15 

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	177,199		$	150,464		$	187,176		$	174,059		$	172,570
Interest-earning deposits in financial institutions		5,517,667			3,010,197			2,766,020			1,747,077			439,690
Total cash and cash equivalents		5,694,866			3,160,661			2,953,196			1,921,136			612,260
Securities available-for-sale		5,941,690			5,235,591			4,532,614			3,851,141			3,757,663
Federal Home Loan Bank stock		17,250			17,250			17,250			17,250			54,244
Total investment securities		5,958,940			5,252,841			4,549,864			3,868,391			3,811,907
Loans held for sale		25,554			-			-			-			-
Gross loans and leases held for investment		19,055,165			19,153,357			19,101,680			19,780,476			19,806,394
Deferred fees, net		(75,937	)		(69,980	)		(75,480	)		(85,845	)		(61,089	)
Total loans and leases held for investment, net of deferred fees		18,979,228			19,083,377			19,026,200			19,694,631			19,745,305
Allowance for loan and lease losses		(292,445	)		(348,181	)		(345,966	)		(301,050	)		(221,292	)
Total loans and leases held for investment, net		18,686,783			18,735,196			18,680,234			19,393,581			19,524,013
Equipment leased to others under operating leases		327,413			333,846			286,425			295,191			306,530
Premises and equipment, net		39,622			39,234			40,544			42,299			39,799
Foreclosed assets, net		14,298			14,027			13,747			1,449			1,701
Goodwill		1,204,092			1,078,670			1,078,670			1,078,670			1,078,670
Core deposit and customer relationship intangibles, net		21,312			23,641			26,813			30,564			34,446
Other assets		883,653			860,326			797,223			734,457			733,941
Total assets	$	32,856,533		$	29,498,442		$	28,426,716		$	27,365,738		$	26,143,267
LIABILITIES:
Noninterest-bearing deposits	$	11,017,462		$	9,193,827		$	9,346,744		$	8,629,543		$	7,510,218
Interest-bearing deposits		17,205,829			15,746,890			14,618,951			14,299,036			12,065,619
Total deposits		28,223,291			24,940,717			23,965,695			22,928,579			19,575,837
Borrowings		19,750			5,000			60,000			60,000			2,295,000
Subordinated debentures		465,814			465,812			463,282			460,772			458,994
Accrued interest payable and other liabilities		493,541			491,962			451,508			463,489			423,047
Total liabilities		29,202,396			25,903,491			24,940,485			23,912,840			22,752,878
STOCKHOLDERS' EQUITY (1)		3,654,137			3,594,951			3,486,231			3,452,898			3,390,389
Total liabilities and stockholders’ equity	$	32,856,533		$	29,498,442		$	28,426,716		$	27,365,738		$	26,143,267
Book value per share	$	30.68		$	30.36		$	29.42		$	29.17		$	28.75
Tangible book value per share (2)	$	20.39		$	21.05		$	20.09		$	19.80		$	19.31
Shares outstanding		119,105,642			118,414,853			118,489,927			118,374,603			117,916,789

(1) Includes net unrealized gain on securities available-for-sale, net	$	106,381	$	172,523	$	155,474	$	145,038	$	90,916
(2) Non-GAAP measure.

Page 16 

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS (LOSS)

	Three Months Ended
	March 31,			December 31,			September 30,		June 30,			March 31,
	2021			2020			2020		2020			2020
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	241,544		$	242,198		$	240,811	$	247,851		$	262,278
Investment securities		30,265			28,843			24,443		26,038			27,446
Deposits in financial institutions		1,528			1,135			654		186			1,608
Total interest income		273,337			272,176			265,908		274,075			291,332
Interest expense:
Deposits		7,500			8,454			9,887		13,075			28,247
Borrowings		193			37			27		1,319			6,778
Subordinated debentures		4,375			4,477			4,670		5,402			6,560
Total interest expense		12,068			12,968			14,584		19,796			41,585
Net interest income		261,269			259,208			251,324		254,279			249,747
Provision for credit losses		(48,000	)		10,000			97,000		120,000			112,000
Net interest income after provision for credit losses		309,269			249,208			154,324		134,279			137,747
Noninterest income:
Service charges on deposit accounts		2,934			3,119			2,570		2,004			2,658
Other commissions and fees		9,158			9,974			10,541		10,111			9,721
Leased equipment income		11,354			9,440			9,900		12,037			12,251
Gain on sale of loans and leases		139			1,671			35		346			87
Gain on sale of securities		101			4			5,270		7,715			182
Other income		21,143			15,642			9,936		6,645			4,201
Total noninterest income		44,829			39,850			38,252		38,858			29,100
Noninterest expense:
Compensation		79,882			73,171			75,131		61,910			61,282
Occupancy		14,054			14,083			14,771		14,494			14,207
Data processing		6,957			6,718			6,505		7,102			6,454
Other professional services		5,126			6,800			4,713		4,146			4,258
Insurance and assessments		4,903			5,064			3,939		9,373			4,249
Intangible asset amortization		3,079			3,172			3,751		3,882			3,948
Leased equipment depreciation		8,969			7,501			7,057		7,102			7,205
Foreclosed assets (income) expense, net		1			(272	)		335		(146	)		66
Acquisition, integration and reorganization costs		3,425			1,060			-		-			-
Customer related expense		4,818			4,430			4,762		4,408			3,932
Loan expense		3,193			3,926			3,499		3,379			2,650
Goodwill impairment		-			-			-		-			1,470,000
Other expense		15,729			10,029			8,939		11,315			9,719
Total noninterest expense		150,136			135,682			133,402		126,965			1,587,970
Earnings (loss) before income taxes		203,962			153,376			59,174		46,172			(1,421,123	)
Income tax expense		53,556			36,546			13,671		12,968			11,988
Net earnings (loss)	$	150,406		$	116,830		$	45,503	$	33,204		$	(1,433,111	)
Basic and diluted earnings (loss) per share	$	1.27		$	0.99		$	0.38	$	0.28		$	(12.23	)
Dividends declared and paid per share	$	0.25		$	0.25		$	0.25	$	0.25		$	0.60

Page 17 

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)		1.94	%		1.58	%		0.65	%		0.50	%		(21.27	)%
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") return on average assets (1)(2)		2.01	%		2.22	%		2.22	%		2.51	%		2.39	%
Return on average equity (1)		16.86	%		13.14	%		5.18	%		3.87	%		(116.28	)%
Return on average tangible equity (1)(2)		25.67	%		19.63	%		8.20	%		6.39	%		6.88	%
Efficiency ratio		46.4	%		43.6	%		45.1	%		42.9	%		40.6	%
Noninterest expense as a percentage of average assets (1)		1.94	%		1.84	%		1.90	%		1.92	%		23.57	%
Average Yields/Costs (1):
Yield on:
Average loans and leases (3)		5.20	%		5.15	%		5.01	%		5.01	%		5.54	%
Average interest-earning assets (3)		3.86	%		4.02	%		4.13	%		4.53	%		5.02	%
Cost of:
Average interest-bearing deposits		0.18	%		0.22	%		0.27	%		0.40	%		0.95	%
Average total deposits		0.11	%		0.14	%		0.17	%		0.25	%		0.59	%
Average interest-bearing liabilities		0.29	%		0.33	%		0.38	%		0.55	%		1.16	%
Net interest spread (3)		3.57	%		3.69	%		3.75	%		3.98	%		3.86	%
Net interest margin (3)		3.69	%		3.83	%		3.90	%		4.20	%		4.31	%
Average Balances:
Assets:
Loans and leases, net of deferred fees	$	18,927,314		$	18,769,214		$	19,195,737		$	19,951,603		$	19,065,035
Interest-earning assets		29,100,685			27,234,542			25,858,001			24,531,204			23,455,636
Total assets		31,415,882			29,334,789			27,935,193			26,621,227			27,099,040
Liabilities:
Noninterest-bearing deposits		10,173,459			9,589,789			8,812,391			8,292,151			7,357,717
Interest-bearing deposits		16,444,091			15,045,451			14,516,923			13,116,297			11,896,780
Total deposits		26,617,550			24,635,240			23,329,314			21,408,448			19,254,497
Borrowings		226,053			237,098			181,315			871,110			2,026,749
Subordinated debentures		466,101			463,951			462,375			459,466			458,399
Interest-bearing liabilities		17,136,245			15,746,500			15,160,613			14,446,873			14,381,928
Stockholders' equity		3,617,248			3,536,425			3,497,869			3,446,850			4,956,778

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent.

Page 18 

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
	At or For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
	(Dollars in thousands)
Credit Quality Ratios:
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.36	%		0.48	%		0.45	%		0.84	%		0.48	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.43	%		0.55	%		0.52	%		0.85	%		0.49	%
Classified loans and leases held for investment to loans and leases held for investment		0.86	%		1.39	%		1.44	%		1.49	%		0.75	%
Provision for credit losses (for the quarter) to average loans and leases held for investment (annualized)		(1.03	)%		0.21	%		2.01	%		2.42	%		2.36	%
Net charge-offs (for the quarter) to average loans and leases held for investment (annualized)		0.06	%		0.40	%		0.75	%		0.27	%		0.40	%
Trailing 12 months net charge-offs to average loans and leases held for investment		0.37	%		0.45	%		0.36	%		0.20	%		0.19	%
Allowance for loan and lease losses to loans and leases held for investment		1.54	%		1.82	%		1.82	%		1.53	%		1.12	%
Allowance for credit losses to loans and leases held for investment		2.02	%		2.27	%		2.33	%		1.94	%		1.39	%
Allowance for credit losses to nonaccrual loans and leases held for investment		566.2	%		475.8	%		516.9	%		229.7	%		287.5	%
PacWest Bancorp Consolidated:
Tier 1 leverage capital ratio (1)		7.95	%		8.55	%		8.66	%		8.93	%		8.63	%
Common equity tier 1 capital ratio (1)		10.41	%		10.53	%		10.45	%		9.97	%		9.22	%
Tier 1 capital ratio (1)		10.41	%		10.53	%		10.45	%		9.97	%		9.22	%
Total capital ratio (1)		13.63	%		13.76	%		13.74	%		13.18	%		12.07	%
Risk-weighted assets (1)	$	22,968,958		$	22,837,693		$	22,114,040		$	22,781,836		$	24,214,209
Equity to assets ratio		11.12	%		12.19	%		12.26	%		12.62	%		12.97	%
Tangible common equity ratio (2)		7.68	%		8.78	%		8.71	%		8.93	%		9.10	%
Book value per share	$	30.68		$	30.36		$	29.42		$	29.17		$	28.75
Tangible book value per share (2)	$	20.39		$	21.05		$	20.09		$	19.80		$	19.31
Pacific Western Bank:
Tier 1 leverage capital ratio (1)		8.83	%		9.53	%		9.70	%		10.03	%		9.71	%
Common equity tier 1 capital ratio (1)		11.57	%		11.73	%		11.70	%		11.18	%		10.38	%
Tier 1 capital ratio (1)		11.57	%		11.73	%		11.70	%		11.18	%		10.38	%
Total capital ratio (1)		12.82	%		12.99	%		12.95	%		12.44	%		11.39	%

(1) Capital information for March 31, 2021 is preliminary.

(2) Non-GAAP measure.                                        

Page 19 

GAAP TO NON-GAAP RECONCILIATIONS

This press release contains certain non-GAAP financial disclosures for: (1) Pre-provision, pre-goodwill impairment, pre-tax net revenue (“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
PPNR and PPNR Return	March 31,			December 31,			March 31,
on Average Assets	2021			2020			2020
	(Dollars in thousands)
Net earnings (loss)	$	150,406		$	116,830		$	(1,433,111	)
Add: Provision for credit losses		(48,000	)		10,000			112,000
Add: Goodwill impairment		-			-			1,470,000
Add: Income tax expense		53,556			36,546			11,988
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR")	$	155,962		$	163,376		$	160,877
Average assets	$	31,415,882		$	29,334,789		$	27,099,040
Return on average assets (1)		1.94	%		1.58	%		(21.27	)%
PPNR return on average assets (2)		2.01	%		2.22	%		2.39	%

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

(2) Annualized PPNR divided by average assets.                        

	Three Months Ended
	March 31,			December 31,			March 31,
Return on Average Tangible Equity	2021			2020			2020
	(Dollars in thousands)
Net earnings (loss)	$	150,406		$	116,830		$	(1,433,111	)
Add: Intangible asset amortization		3,079			3,172			3,948
Add: Goodwill impairment		-			-			1,470,000
Adjusted net earnings	$	153,485		$	120,002		$	40,837
Average stockholders' equity	$	3,617,248		$	3,536,425		$	4,956,778
Less: Average intangible assets		1,192,780			1,103,945			2,569,189
Average tangible common equity	$	2,424,468		$	2,432,480		$	2,387,589
Return on average equity (1)		16.86	%		13.14	%		(116.28	)%
Return on average tangible equity (2)		25.67	%		19.63	%		6.88	%

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

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

Page 20 

Tangible Common Equity Ratio/	March 31,			December 31,			September 30,			June 30,			March 31,
Tangible Book Value Per Share	2021			2020			2020			2020			2020
		(Dollars in thousands, except per share data)
Stockholders' equity	$	3,654,137		$	3,594,951		$	3,486,231		$	3,452,898		$	3,390,389
Less: Intangible assets		1,225,404			1,102,311			1,105,483			1,109,234			1,113,116
Tangible common equity	$	2,428,733		$	2,492,640		$	2,380,748		$	2,343,664		$	2,277,273
Total assets	$	32,856,533		$	29,498,442		$	28,426,716		$	27,365,738		$	26,143,267
Less: Intangible assets		1,225,404			1,102,311			1,105,483			1,109,234			1,113,116
Tangible assets	$	31,631,129		$	28,396,131		$	27,321,233		$	26,256,504		$	25,030,151
Equity to assets ratio		11.12	%		12.19	%		12.26	%		12.62	%		12.97	%
Tangible common equity ratio (1)		7.68	%		8.78	%		8.71	%		8.93	%		9.10	%
Book value per share	$	30.68		$	30.36		$	29.42		$	29.17		$	28.75
Tangible book value per share (2)	$	20.39		$	21.05		$	20.09		$	19.80		$	19.31
Shares outstanding		119,105,642			118,414,853			118,489,927			118,374,603			117,916,789

(1) Tangible common equity divided by tangible assets.

(2) Tangible common equity divided by shares outstanding.                                        

CONTACTS

Matthew P. Wagner President and CEO 303.802.8900 Bart R. Olson EVP and CFO 714.989.4149 William J. Black EVP Strategy and Corporate Development 919.597.7466

Page 21 

EX-99.2

Exhibit 99.2

 2021FirstQuarter Results Earnings Release Presentation April 20, 2021

 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 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.

 Financial Highlights First Quarter 2021 | PACW | p. 3

 First Quarter Highlights Strong Balance Sheet Profitability Growth CET1 ratio of 10.41% Total capital ratio of 13.63% ACL ratio of 2.02% - excluding PPP loans, 2.14% Classified loans to total loans of 0.86% Net charge-offs to average loans and leases of 0.06% Net charge-offs of $2.7 million Classified loans of $163.1mm, a decline of 44% from 2Q20 high Special mention loans of $633.0mm, a decline of 30% from 1Q20 high 91% of deposits are core deposits; 39% are noninterest-bearing Loans to deposit ratio of 67% Net earnings of $150.4mm, EPS of $1.27 Pre-provision, pre-tax net revenues (“PPNR”) of $156.0mm ROAA of 1.94% ROATE of 25.67% Net interest margin of 3.69%; excluding negative impact from excess liquidity (61bps) net interest margin of 4.30% Loan and lease yield of 5.20% Cost of deposits of 11 bps Efficiency ratio of 46.4% Provision for credit losses benefit of $48mm driven primarily by the improved economic forecast Loan production of $1.6bn at weighted average rate of 4.36% - excluding PPP loans, weighted average rate of 5.39% Total assets increased $3.4bn or 11% compared to 4Q20 Core deposits increased $3.3bn or 15% compared to 4Q20 Total deposits increased $3.3bn or 13% compared to 4Q20 Closed Civic acquisition on 2/01/21 On March 31, 2021, signed agreement to purchase the Homeowners Association Business from MUFG Union Bank, N.A. with approximately $4.0bn of deposits with a cost of 8 bps; close expected in 4Q21

 Balance Sheet Highlights Loans & Leases HFI, Net (1) $19.7bn$19.7bn $19.0bn $19.1bn $19.0bn 1.94% 1.93% 1.63% 1.63% 1.12% 1Q20 2Q20 3Q20 4Q20 1Q21 Allowance for Credit Losses (2) $442.5mm $433.8mm $381.6mm $383.0mm $274.9mm 2.49% 2.41% 2.06% 2.14% 1.39% 1Q20 2Q20 3Q20 4Q20 1Q21 Core Deposits $25.6bn $21.1bn $22.3bn $19.5bn $16.1bn 1Q20 2Q20 3Q20 4Q20 1Q21 Total Deposits (3) $28.2bn $22.9bn $24.0bn $24.9bn $19.6bn 0.59% 0.25% 0.17% 0.14% 0.11% 1Q20 2Q20 3Q20 4Q20 1Q21 Line is ALLL as % of loans and leases, excluding PPP loans Line is ACL as % of loans and leases, excluding PPP loans Line is cost of total deposits

 Profitability Highlights Net Earnings (Loss) (1) $150.4mm $36.9mm (2) $116.8mm $33.2mm $45.5mm $0.99 $1.27 $0.31 (3) $0.28 $0.38 $(12.23) ($1,433.1)mm 1Q202Q20 3Q20 4Q20 1Q21 PPNR (4) $166.2mm $163.4mm $160.9mm $156.2mm $156.0mm 2.39% 2.51% 2.22% 2.22% 2.01% 1Q20 2Q20 3Q20 4Q20 1Q21 Efficiency Ratio 46.4% 45.1% 42.9% 43.6% 40.6% 1Q20 2Q20 3Q20 4Q20 1Q21 ROAA ROATE 25.67% 19.63% 1.58% 1.94% 0.50% 0.65% 6.88% 6.39% 8.20% -21.27% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Line is EPS Amount is net earnings excluding goodwill impairment in 1Q20 Amount is EPS excluding goodwill impairment in 1Q20 Line is PPNR return on average assets

 Strong Capital Position Highlights CET1 Capital Tier 1 capital Total Capital 10.41% 10.41% 13.63% C 4.50% 7.00% 6.00% 8.50% 8.00% 10.50% $783mm $449mm $718mm MinimumCapital Conservation BufferPACW Overall, capital ratios have increased as a result of strong earnings despite elevated credit provisions in 2020 1Q20 2Q20 3Q20 4Q20 1Q21 Regulatory Capital Ratios: • CET1 capital to RWA9.22%9.97%10.46%10.53%10.41% • Tier 1 capital to RWA9.22%9.97%10.46%10.53%10.41% • Total capital to RWA12.07%13.18%13.74%13.76%13.63% Tangible book value per share$19.31$19.80$20.09$21.05$20.39 Robust Capital Levels Elected CECL transition for regulatory capital relief in 2020. Retains ~ 21bps of CET1 and Tier 1 capital At beginning of pandemic in 1Q20, suspended share repurchases and reduced dividend from $0.60 to $0.25 to preserve capital during downturn Capital ratio decreases in 1Q21 due primarily to the cash purchase of Civic Capital levels remain sufficient in a severely adverse economic scenario First Quarter 2021 | PACW | p. 7

 Supplemental Information First Quarter 2021 | PACW | p. 8

 As of March 31, 2021 Consumer Other commercial Commercial mortgage Venture capital Asset-based Income producing and other residential Residential construction Commercial construction Net of deferred fees and costs

 Diversified Loan and Lease Portfolio Construction & Land, $3,566mm, 31% Real Estate ($11.6B) ($ in millions) 3/31/20213/31/2020 $Mix$Mix Real Estate: Income Producing Residential $3,82333% $3,68834% Construction & Land (1) 3,56631% 2,88026% Other Commercial (2) 2,61723% 2,74825% SBA 6105% 5615% Hotel 5395% 6216% Other Residential 2232% 1001% Healthcare 1751% 2913% Total Real Estate $ 11,553100% $ 10,889100% $2,617mm, 23% Other Residential, $223mm, 2% Healthcare, $175mm, 1% Income Producing Residential, $3,823mm, 33% Asset-Based ($3.4B) SBA, $610mm, 5% Hotel, $539mm, 5% Of which land represents $148 million and $169 million at 3/31/21 and 3/31/20. Comprised of 45% office, 18% industrial, 18% retail and 19% other at 3/31/21. Premium Finance $450mm, 13% Other ($ in millions) 3/31/20213/31/2020 $Mix$Mix Asset-Based: Lender Finance $ 2,113 63% $ 2,294 58% Equipment Finance 647 19% 822 21% Premium Finance 450 13% 490 13% Other 173 5% 332 8% Total Asset-Based $ 3,383 100% $ 3,938 100% Equipment Finance $647mm, 19% Lender Finance $2,113mm, 63%

 Diversified Loan and Lease Portfolio Municipal, $126mm, 6% Other Commercial ($2.2B) ($ in millions) 3/31/20213/31/2020 $Mix$Mix Other Commercial: Paycheck Protection Program $1,07949%$--Secured Business Loans 39818%66738% Unsecured Business Loans 23711%22613% Security Monitoring 2069%53930% Municipal 1266%1559% Other 1617%18510% Total Other Commercial $ 2,207100%$ 1,772100% $161mm, 7% Unsecured Business Loans, $237mm, 11% Security Monitoring, $206mm, 9% Paycheck Protection Program, $1,079mm, 49% Secured Business Loans, $398mm, 18% Venture Capital ($1.5B) Venture Capital, $606mm, 41% ($ in millions) 3/31/20213/31/2020 $Mix$Mix Venture Capital: Equity Fund Loans $ 890 59% $ 1,403 52% Venture Capital 606 41% 1,313 48% Total Venture Capital $ 1,496 100% $ 2,716 100% $890mm, 59%

 Loan and Lease Production of $1.6 Billion in 1Q21 Millions $2$,7087 $2,635 $2,603 $0 $2,485 $2,636 $2,702 $2,287 $381 $2,144 $1,867 $1,067 $1,257 $1,997 $1,354$957 $2,022 $1$,5028 $1,023 $1,161 $1,054 $800 $1,008 $1,635 $1,330 $1,232 $790 $813 $983 $1,131 $546 $613 $520 1Q20 2Q20 3Q20 4Q20 1Q21 Avg. Rate on Production 6.0% $2,500 $2,000 5.0% 4.0% $1,500 3.0% $1,000 $500 2.0% 1.0% $00.0% ProductionDisbursementsPPP LoansPayoffsPaydownsRate on Production ($ in millions)Production/ Disbursements Payoffs/NetRate on PaydownsDifferenceProduction (1) Loans ($ in millions)Beginning Balance (2) Loans Ending Balance (2) Quarterly Change (3) The weighted average TE rate on production presents contractual rates and does not include amortized fees. Amortized fees added approximately 43 basis points to loan yields in 2021 and 25 basis points in 2020. Net of deferred fees and costs “Quarterly Change” equals “Net Difference” plus transfers to loans held for sale, transfers to OREO, charge-offs and loan sales.

 Construction & Land Loans Risk Rating Pass/Watch Special Mention Classified Total Count 243 4 3 250 3/31/21 Total $ $ 3,498mm 67mm 1mm 3,566mm SFR, 8% Land & Other, 6% Commitment Amount $0 ~ $10mm $10mm ~ $25mm $25mm ~ $50mm $50mm ~ $100mm $100mm ~ $150mm Total Count 102 66 45 28 9 250 3/31/21 Total $ 3/31/21 % of Total 14% 16% 26% 28% 16% $ 933mm 1,043mm 1,696mm 1,863mm 1,059mm 6,594mm Retail, 2% Industrial, 3% Office, 5% Hotel, 11% Multi-Family Apts, 58% Condominiums, 4% Commitments By Loan-To-Cost Range(1) LTC < 40%, 4% Commitments by State Georgia, 3% Virginia, 3% Nevada, 4% LTC > 70%, 15% (2) LTC 60%-70%, 25% LTC 40%-50%, 9% LTC 50%-60%, 47% Excludes $717mm of land and Civic commitments. 59% of loans with LTC > 70% are for low income housing projects. California, 53%% Other, 10% Florida, 6% Wash. DC, 3% New York, 9% Colorado 6% Washington, 3% First Quarter 2021 | PACW | p. 13

 Multi-Family Loans Risk Rating Pass/Watch Special Mention Classified Total Count 2,093 9 5 2,107 3/31/21 Total $ $ 3,758mm 60mm 5mm 3,823mm Others, 11% Nevada , 4% Georgia, 4% Virginia, 6% Washington, 4% Florida, 9% Colorado, 5% Income Producing Residential Principal Balance Amount $0 ~ $5mm $5mm ~ $10mm $10mm ~ $30mm $30mm ~ $106mm Total Count 1,917 141 45 4 2,107 3/31/21 Total 1,924mm 941mm 656mm 302mm $ 3,823mm 3/31/21 % of Total 50% 25% 17% 8% MF Construction Commitments By Loan-To-Cost Range(3) LTC 60%-70%, 23% LTC > 70%, 19% $3.8bn(2) Income Producing Residential LTC 40%-50%, 4% Others, 8% Colorado, 3% New York, 2% Oregon, 3% Portfolio Florida, 6% LTC 50%-60%, 54% Washington, 7% MF construction commitments total $3.8bn and have an average loan-to-cost ratio of 62% as of March 31, 2021. $1.9bn, or approximately 49%, of MF portfolio is 50% risk-weighted. Included in MF construction commitments are $814mm of commitments to build low income housing MF projects with a weighted average LTC of 71%. California, 71% First Quarter 2021 | PACW | p. 14

 Security Monitoring Loans Risk Rating Pass/Watch Special Mention Classified Total Count 12 - 4 16 $ $ 3/31/21 Total 172mm - 34mm 206mm Portfolio declined by $123mm (5 loans) or 37% in 1Q21. Balance by Tranche < $5mm $5mm ~ $10mm $10mm ~ $20mm $20mm ~ $30mm $30mm ~ $40mm $40mm ~ $55mm Total Count 7 3 2 1 2 1 16 $ $ 3/31/21 Total 17mm 24mm 28mm 24mm 62mm 51mm 206mm $32.8mm in Q320 related to one and only junior lien exposure in portfolio. No charge-offs in 1Q21 $91mm or 44% of the portfolio are SNCs. 3.83% WAC; 100% variable rate; WAM 20 months. $65mm of unfunded commitments; subject to an availability formula based upon eligible recurring monthly revenue (net available credit is $49mm). Security Monitoring Loans $619 $539 67% decrease $499 $411 $329 $206 4Q191Q202Q203Q204Q201Q21 Contractual Maturity Table $85mm $65mm $38mm $18mm 2021 2022 2023 2024

 Hotel Portfolio Overview Risk Rating Pass/Watch Special Mention Classified Total Count 80 19 6 105 3/31/21 Total $ $ 807mm 227mm 17mm 1,051mm Majority of CRE and construction borrowers are experienced hotel operators with top franchise brands. No “conference center” hotels. Weighted average loan-to-cost for hotel construction loans is 46%. SBA guarantied portions retained (75% average guaranty). Indirect exposure from timeshare inventory loans ($23mm), hotel-related lender finance loans ($153mm) and venture banking loans ($2mm). Total hotel loans outstanding decreased $100mm in 1Q21. COVID modifications active as of 3/31/21 – 3 loans totaling $15mm. Hotel CRE by Brands Economy, $15mm, 3% Upper Midscale, $88mm, 16% Upscale, $82mm, 15% NY, $243mm FL, $104mm Hotels by Product 3/31/21 3/31/21 Avg. O/S Count Commitment Outstanding Balance Hotel CRE 41 $581mm $539mm $ 13.1mm Hotel Construction 15 727mm 483mm 32.2mm Hotel SBA 49 31mm 29mm 0.6mm Total 105 $1,339mm $1,051mm $ 10.0mm $1.1bn (5.5% of total loans) CA, $477mm Midscale, $43mm, 8% Upper Upscale, $311mm, 58% GA, $20mm NV, $88mm TN, $57mm NJ, $36mm Other, $26mm

 Retail Real Estate Portfolio Overview Loan Types Risk Rating Pass/Watch Special Mention Classified Total Count 219 11 10 240 3/31/21 Total $ $ 574mm 5mm 23mm 602mm A lifestyle center in N. Hollywood, CA A community shopping center in Santa Clarita, CA A community shopping center in Garden Grove, CA A community shopping center in Murrieta, CA Weighted average loan-to-cost of 64.5% COVID modifications active as of 3/31/21 – none Retail by Product Net Recorded Avg. O/S Count Commitment Investment Balance Retail CRE 144 $517mm $470mm $3.3mm Coml. Construction 6 115mm 68mm 11.3mm Retail SBA 90 70mm 64mm 0.7mm Total 240 $702mm $602mm $2.5mm SBA retail is 100% owner-occupied SBA guarantied portions retained (75% average guaranty) COVID modifications active as of 3/31/21 – 1 loan totaling $0.6mm CRE Traditional retail-focused commercial real estate lending including: National Lending $30mm portfolio mostly consists of one $23mm lifestyle center (IN) which paid off in full in April 2021 Community Banking $440mm portfolio almost entirely in California focused on suburban retail/strip centers and single tenant retail storefronts COVID modifications active as of 3/31/21 – none Single Tenant 29% CRE Retail Property Types $470mm (2.5% of total loans) Urban luxury center 9% Suburban retail/strip center 33% Lifestyle center 29%

 Commercial Aviation Portfolio Overview Risk Rating Pass/Watch Special Mention Classified Total Count 13 11 1 25 3/31/21 Total $ $ 88mm 106mm 19mm 213mm Passenger transportation exposure is mostly narrow-body jets which have historically maintained their collateral value. Strong government support for foreign airlines. Portfolio has declined by $133mm, or 38%, since 3/31/20 (beginning of COVID-19 pandemic) One classified and no nonaccrual loans at March 31, 2021. Commercial Aviation by Product Aviation by Type, $213mm (1.1% of total loans) U.S. passenger, COVID modifications active as of 3/31/21 – none. Freight, $61mm, 29% $67mm, 31% Foreign passenger, $85mm, 40%

 Other Impacted Portfolios Restaurant $150 million total exposure (0.8% of total loans and operating leases) of which $80 million is real estate secured. $109 million are SBA guaranteed (75% average guaranty as we don’t sell the guaranteed portions). $7.0 million of classified loans at March 31, 2021 (estimated SBA guaranties of $5.0 million). COVID modifications active as of 3/31/21 – none. Oil Services $73 million total exposure (0.4% of total loans and operating leases) $50 million operating leases $23 million loans receivable All credits are related to support services and $66 million is collateralized by equipment (railcars $50mm, land-based fracking equipment $16mm) and $7 million is ABL lines collateralized by A/R and inventory. $56 million to borrowers rated BB-or above. $69 million, or 94%, outstanding to four borrowers with average balance of $17.2 million. Restaurant by Product Rise in oil prices has lowered potential credit risks. Count 3/31/21 Net Commitment 3/31/21 Recorded Investment Avg. O/S Balance SBA – Real Estate 72 $ 69.8mm $ 65.0mm $ 0.9mm SBA – Cash Flow 78 41.4mm 41.1mm 0.5mm Collateralized Commercial Loans 15 26.1mm 25.2mm 1.7mm Commercial Real Estate 25 16.2mm 15.0mm 0.6mm Unsecured 66 14.3mm 3.2mm 0.4mm Business Loans Venture Capital 3 0.1mm - - Total 259 $ 167.9mm $ 149.5mm $ 0.6mm

 Lender Finance Portfolio Overview Risk Rating Pass/Watch Special Mention Classified Total Count 84 - 1 85 3/31/21 Total $ $ 2,111mm - 2mm 2,113mm 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 being monitored for COVID-19 impacts: Direct consumer lenders Small business lenders Lenders with hotel exposure ($153mm) COVID modifications active as of 3/31/21 – none. Lender Finance Portfolio by Type Lender Finance by Type, $2.1bn (11.1% of total loans) Coml. RE lender, 27% Consumer receivable purch., 5% Commercial lender, 3% Auto finance lender, 10% Direct consumer lender, 37% Other, 6% Timeshare, 12%

 Office Portfolio Overview Risk Rating Pass/Watch Special Mention Classified Total Count 269 1 5 275 3/31/21 Total $ $ 1,360mm 1mm 1mm 1,362mm $93 million of CRE and all $62 million of SBA are owner-occupied. Average loan-to-cost for office construction loans is 55%. COVID modifications active as of 3/31/21 – 4 loans totaling $31 million. CRE By Balance Range $60mm+, $282mm, 24% $45mm~$60mm, $145mm, 12% $25mm~$45mm, $237mm, 20% $0~$5mm, Office by Product Net Recorded Avg. O/S Count Commitment Investment Balance Office CRE 124 $1,199mm $1,088mm $8.8mm Commercial Construction 9 351mm 119mm 13.2mm Office CRE – Owner Occupied 66 96mm 93mm 1.4mm Office SBA 76 63mm 62mm 0.8mm Total 275 $1,709mm $1,362mm $5.0mm $5mm~$15mm, $143mm, 12% $15mm~$25mm, $202mm, 17% Construction by Commitment Range $0~$5mm, $4mm, 1% $5mm~$15mm, $22mm, 6% $15mm~$45mm, $70mm, 20% $45mm~$110mm, $256mm, 73% Office by State $1,362mm (7.2% of total loans) Other CO 12% 3% FL 4% NJ 3% MA 3% TX 8%CA NY61% 6%

 Shared National Credits (SNCs) $528mm of SNC Loans at 3/31/2021 SNC Loans Equipment Finance, $55mm, 11% Other Coml RE, $19mm, 4% Healthcare RE, $2.3bn 77% decrease $1.2bn $840mm $755mm $579mm $528mm Equity Fund Loans, $11mm, 2% Security Monitoring, $91mm, 17% Construction, $76mm, 14% Business Loans, $47mm, 9% Lender Finance, $190mm, 36% 201620172018201920201Q21 Total$2.3bn $1.2bn $840mm $755mm $579mm $528mm Classified $70mm $41mm $67mm $40mm $82mm $35mm Nonaccrual $13mm $15mm $-$15mm $30mm $4mm 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. Decrease in classified loans in 2021 related to one security monitoring loan transferred to HFS at 3/31/21 and another security monitoring loan paid down in 1Q21.

 Quarterly Credit Quality Trends ($ in thousands) 1Q20 2Q20 3Q20 4Q20 Nonaccrual Loans and Leases HFI $ 95,602 166,113 85,615 91,163 As a % of Loans and Leases HFI % 0.48% 0.84% 0.45% 0.48% Nonperforming Assets $ 97,303 167,562 99,362 105,190 As a % of Loans and Leases & Foreclosed Assets % 0.49% 0.85% 0.52% 0.55% Classified Loans and Leases HFI(1) $ 147,705 293,230 274,572 265,262 As a % of Loans and Leases HFI % 0.75% 1.49% 1.44% 1.39% Credit Loss Provision $ 112,000 120,000 97,000 10,000 As a % of Average Loans and Leases (annualized) % 2.36% 2.42% 2.01% 0.21% Net Charge-offs $ 19,110 13,242 36,084 18,785 As a % of Average Loans and Leases (annualized) % 0.40% 0.27% 0.75% 0.40% Trailing Twelve Months Net Charge-offs $ 35,606 37,604 69,203 87,221 As a % of Average Loans and Leases % 0.19% 0.20% 0.36% 0.45% Allowance for Loan Losses (ALLL) $ 221,292 301,050 345,966 348,181 As a % of Loans and Leases HFI % 1.12% 1.53% 1.82% 1.82% Allowance for Credit Losses (ACL)(2) $ 274,863 381,621 442,537 433,752 As a % of Loans and Leases HFI % 1.39% 1.94% 2.33% 2.27% ACL / Nonaccrual Loans and Leases HFI % 287.51% 229.74% 516.89% 475.80% 1Q21 67,652 0.36% 81,950 0.43% 163,117 0.86% (48,000) -1.03% 2,736 0.06% 70,847 0.37% 292,445 1.54% 383,016 2.02% 566.16% Classified loans and leases are those with a credit risk rating of substandard or doubtful. Allowance for credit losses includes allowance for loan and lease losses and reserve for unfunded loan commitments.

 Key Credit Trends – Loans HFI Nonaccrual Loans and Leases / Loans and Leases 0.84% 0.48% 0.45% 0.48% 0.36% 1Q20 2Q20 3Q20 4Q20 1Q21 Classified Loans and Leases/ Loans and Leases 1.49% 1.44% 1.39% 0.75% 0.86% 1Q20 2Q20 3Q20 4Q20 1Q21 Trailing Twelve Months Net Charge-offs / Average Loans and Leases 0.45% 0.36% 0.37% 0.19% 0.20% 1Q20 2Q20 3Q20 4Q20 1Q21 ACL / Loans and Leases 2.33% (1) (1) 2.27% (1) 1.94% (1) 2.02% 1.39% 1Q20 2Q20 3Q20 4Q20 1Q21 Excluding PPP loans the ACL ratio would be 2.06%, 2.49%, 2.41% and 2.14% as of 2Q20, 3Q20, 4Q20 and 1Q21.

 Loan Portfolio By Risk Rating March 31, 2021 Special December 31, 2020 Special ($ in thousands) Classified Mention Pass/Watch Total Classified Mention Pass/Watch Total Real estate mortgage: Commercial real estate $77,444 $ 254,463 $3,609,703 $3,941,610 $91,544 $ 262,461 $3,742,666 $4,096,671 Residential real estate9,06563,2303,973,3084,045,6038,76661,3853,733,1143,803,265 Total real estate mortgage 86,509 317,693 7,583,011 7,987,213 100,310 323,846 7,475,780 7,899,936 Real estate construction: Commercial construction30266,791922,942990,03542,558107,593966,9701,117,121 Residential construction4166012,574,7712,575,788-7592,242,4012,243,160 Total real estate construction 718 67,392 3,497,713 3,565,823 42,558 108,352 3,209,371 3,360,281 Commercial: Significant changes in categories from 4Q20 to 1Q21 were as follows. Real estate mortgage – commercial classified decrease due to the payoff of three hotel loans totaling approximately $21mm Commercial construction – special mention decrease due to the payoff of a $40mm hotel construction loan Commercial construction - classified decrease due to the payoff of a $42mm hotel construction loan Venture capital – special mention decrease due mainly to the upgrade of a $19mm loan Commercial – other commercial classified decrease due to $18mm paydown of a security monitoring loan and the transfer to loans held-for-sale of a $26mm security monitoring loan First Quarter 2021 | PACW | p. 25

First Quarter 2021 | PACW | p. 26 $182 $434 $383 $166 $84 $84 $(87) $5 $(88) $1 $6 $(3) $33 1/1/2020 Economic Forecast Individually Evaluated Loan Downgrades Net Charge- offs Other, net 12/31/2020 Economic Forecast Individually Evaluated Loan Downgrades Net Charge- offs Other, net 3/31/2021 Changes in the Allowance for Credit Losses (ACL) (in millions) Current Expected Credit Losses (CECL) ▪ CECL is a complex process that relies on numerous models and key assumptions such as 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 various qualitative factors based on management judgment. ▪ Used the Moody’s Consensus Scenario Forecast dated March 10, 2021 for 1Q21; key macro - economic variables continued to improve. ▪ Provision for credit losses benefit of $48 million in 1Q21, a decline from a provision of $10 million in 4Q20. ▪ The ALLL ratio declined from 1.82% as of 12/31/20 to 1.54% as of 3/31/21; excluding PPP loans the ALLL ratio decreased from 1.93% as of 12/31/20 to 1.63% as of 3/31/21. The total ACL ratios are noted below; the ACL ratio excluding PPP loans declined from 2.41% as of 12/31/20 to 2.14% as of 3/31/21. 0.97% 2.27 % 2.02 % Twelve Months of 2020 Q1 2021 (1) Other, net includes loan upgrades, loan balance changes and qualitative adjustments. (1) (1)

 Allowance for Credit Losses March 31, 2021 % of Loans December 31, 2020 % of Loans March 31, 2020 % of Loans ($ in thousands) Amount and Leases Amount and Leases Amount and Leases Allowance for loan and lease losses: Real estate mortgage: Commercial real estate $114,448 2.90% $111,556 2.72%$ 69,649 1.64% Residential real estate26,6740.66%26,7860.70%21,8160.58% Total real estate mortgage141,1221.77%138,3421.75%91,4651.14% Real estate construction: Commercial construction34,1633.45%41,1343.68%18,1741.66% Residential construction32,6121.27%37,2221.66%22,1241.23% Asset based 34,769 1.03% 56,691 1.65% 33,755 0.86% Venture capital 26,381 1.76% 43,518 2.56% 34,086 1.25% Other commercial 17,566 0.80% 26,195 1.10% 19,552 1.11% Total commercial 78,716 1.11% 126,403 1.68% 87,393 1.04% Consumer 5,832 1.71% 5,080 1.59% 2,136 0.51% Allowance for loan and lease losses $292,445 1.54% $348,181 1.82% $221,292 1.12% Reserve for unfunded commitments 90,571 0.48% 85,571 0.45% 53,571 0.27% Allowance for credit losses $383,016 2.02% $433,752 2.27% $274,863 1.39% Upon adoption of CECL on 1/1/20 the ALLL was $142,402 or 0.76% while the ACL was $181,973 or 0.97%. Excluding PPP loans the ACL ratio would be 2.14% and 2.41% as of March 31, 2021 and December 31, 2020.

 Deposit Detail ($ in millions) Deposit Category At or For the Quarter Ended March 31, 2021At or For the Quarter Ended March 31, 2020 Average $ Quarter-End $ Mix Average $ Quarter-End $ Mix Interest checking March 31, 2021 Core: 91% Money market Noninterest-bearing demand Time deposits over $250,000 Savings deposits Non-core non-maturity deposits Time deposits $250,000 and under Interest check March 31, 2020 ing Money market ore: 82% b Noninterest-earing demand Savings deposits Non-core non-maturity deposits Time deposits Time deposits $250,000 and over $250,000under

 30.0($ in Billions) $28.2 2.00% 25.0 $24.0 $24.9 $22.9 1.50% $19.6 20.0 15.0 1.00% 0.95% 10.0 0.59% 0.50% 5.0 0.40% 0.27% 0.22% 0.18% 0.25% 0.17% 0.14% 0.0 1Q20 2Q20 3Q20 4Q20 0.11% 1Q21 0.00% Core Deposits Non-Core Deposits Cost of Average Interest-Bearing Deposits Cost of Average Total Deposits Balance Cost (1) Includes brokered deposits of $0.2 billion with a weighted average maturity of 38 months and a weighted average cost of 0.78%.

 Loan Yield (TE) 5.54% 5.15% 5.20% 5.44% 5.01% 5.00% 4.96% 4.96% 5.07% 5.09% 4.55% 4.02% 3.89% 4.00% Net Interest Margin (TE) 4.31% 4.20% 3.90% 3.83% 3.69% 3.34% 3.12% 3.03% 3.12% Cost of Total Deposits 0.64% 0.59% 0.40% 0.31% 0.23% 0.25% 0.17% 0.14% 1Q20 2Q20 3Q20 4Q20 0.11% 1Q21 PACW Avg. Total Deposits CostKRX Median Deposits Cost Net Interest Income $259.2mm $261.3mm $249.7mm $254.3mm $251.3mm 1Q20 2Q20 3Q20 4Q20 1Q21

 Interest Rate Components of the Loan and Lease Portfolio Variable-Rate, 56% Loan Portfolio by Repricing Type Hybrid, 16%, Fixed-Rate, 28% Fixed/Hybrid Years to Maturity/Repricing $4,766mm $1,325mm $1,529mm $729mm 1 Year2 Years3 Years> 3 Years Cumulative Balance ($ bn’s) 10.00 8.00 6.00 Floor Analysis - Variable Rate Loans as of March 31, 2021 ($ in millions) Variable Loans by Rate Index Amount % of Total Variable 1-month LIBOR $5,497 2-month LIBOR - 3-month LIBOR 155 6-month LIBOR 217 12-month LIBOR 7 Total LIBOR-based Loans $5,876 55% Prime Rate 3,219 30% Other Index 1,637 15% Total Variable Loans $10,732 100% 90% 80% 70% 60% 50% 4.00 2.00 - Floor is "In Increase 50 Increase Increase Increase Increase Increase 40% 30% 20% 10% 0% the Money" bps 100 bps 150 bps 200 bps 250 bps 300 bps Now Amount of Rate Increase Loan Book% of Total Variable

 Average Life and Effective Duration 8 7 6.6 6.7 6.9 6.1 6.4 6 5 4 4.5 4.8 3 3.5 3.6 3.8 2 1Q20 2Q20 Average Life 3Q20 4Q20 1Q21 Effective Duration $5.9 Billion Total Investment Portfolio (1) Asset-backed Collateralized Loan Obligations, $244mm, 4% Municipal Securities, $1,646mm, 28% Other, $140mm, 2% Securities, $224mm, 4% Agency Residential MBS, $433mm, 7% Agency Residential CMOs, Years Municipal Securities Composition Corporate Securities, $380mm, 6% Treasuries, $491mm, 8% S&P Ratings % Total Issue Type % Total AAA 33% G.O. Limited 5% AA 65% G.O. Unlimited 76% A 1% Revenue 19% Not Rated (3) 1% 100% 100% $1,273mm, 22% % overall portfolio tax equivalent yield (2) (1) Fair value at 3/31/21 (2) Yield is for 1Q21 (3) Not rated category comprised primarily of not rated revenue bonds backed by an underlying agency security or CRA-related revenue bonds.

 Company Overview First Quarter 2021 | PACW | p. 33

 Product Offerings Community Banking Products Attractive branch network with 70 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, asset-based and tax-exempt loans Real estate lending products: includes multifamily, commercial real estate and construction loans Limited consumer loan offerings Borrower relationships generally include a deposit relationship National Lending Products Diversified by loan and lease type, geography and industry Asset-Based Lending (ABL) Lender Finance, Equipment Financing and Premium Finance 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 Venture Banking Products Four product offerings: Technology, Life Sciences, Fund Finance, Structured 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 relationship Branch office in Durham, North Carolina Civic Products Four product offerings: Construction – Renovation, Construction – Bridge, SFR For-Rent, Multi-family Lends to investors who want to renovate and “flip” property or rent property Offices located across the United States Headquartered in Redondo Beach, CA Subsidiary of Pacific Western Bank First Quarter 2021 | PACW | p. 34

 Nationwide Lender Combined with California Branch Network National Lending office Venture Banking office Community Banking branch Primary offices in 14 states Boston, MA Minneapolis, MN San Francisco, CA Menlo Park, CA Campbell, CA Denver, CO Chicago, IL New York, NY Chevy Chase, MD Los Angeles, CA Durham, NC San Diego, CA Austin, TX First Quarter 2021 | PACW | p. 35

 Balancing Quality Growth with Our Credit De-Risking Strategy Growth Initiatives New Multi-Family Lending Team CUB Acquisition Civic Acquisition 2/01/21 CapitalSource Acquisition Square 1 Acquisition New Tax-Exempt Lending Team Colorado Market Expansion HOA Business Acquisition (Close in 4Q21) De-Risking Initiatives 20202021 Sold Celtic Capital Strengthened construction Sold PWEF Leasing Began to reduce Began to emphasize Equity Fund Loans in Venture Banking Sold $1.5bn of Cash Discontinued originating Security Monitoring and NL Healthcare RE loans Pandemic – intensely lending criteria - lower loan-to-cost ratio exposure to Healthcare Real Estate Flow Loans managed loan portfolio First Quarter 2021 | PACW | p. 36

 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: Tangible common equity divided by tangible assets Tangible common equity divided by shares outstanding Annualized adjusted net earnings divided by average tangible common equity First Quarter 2021 | PACW | p. 37

 Non-GAAP Measurements The table below presents reconciliations of certain GAAP to non-GAAP financial measures. PPNR represents pre-provision, pre-tax net revenues and excludes goodwill impairment. Annualized net earnings (loss) divided by average assets Annualized PPNR divided by average asets

 Bank Holding Companies and Banks in the KRX Index Total Assets (in billions) Popular, Inc.BPOP$ 65.92626 Investors BancorpISBC$ 26.023 New York Community Bancorp, Inc.NYCB$ 56.30627 Fulton Financial CorporationFULT$ 25.907 Synovus Financial Corp.SNV$ 54.36628 BancorpSouth BankBXS$ 24.081 East West Bancorp Inc.EWBC$ 52.15729 Old National BancorpONB$ 22.961 Wintrust Financial CorporationWTFC$ 45.08130 First Hawaiian, Inc.FHB$ 22.663 Cullen/Frost Bankers, Inc.CFR$ 42.39131 First Midwest Bancorp, Inc.FMBI$ 20.839 Valley National BancorpVLY$ 40.68632 Bank of Hawaii CorporationBOH$ 20.604 South State CorporationSSB$ 37.79033 Washington Federal, Inc.WAFD$ 19.064 Texas Capital Bankshares, Inc.TCBI$ 37.72634 Cathay General BancorpCATY$ 19.043 F.N.B. CorporationFNB$ 37.35435 Cadence BancorporationCADE$ 18.713 Western Alliance BancorporationWAL$ 36.46136 Glacier Bancorp, Inc.GBCI$ 18.504 BankUnited, Inc.BKU$ 35.01037 United Community Banks, Inc.UCBI$ 17.794 Pinnacle Financial Partners, Inc.PNFP$ 34.93338 Hope Bancorp, Inc.HOPE$ 17.107 Prosperity Bancshares, Inc.PB$ 34.05939 Columbia Banking Systems, Inc.COLB$ 16.585 Hancock Whitney CorporationHWC$ 33.63940 Trustmark CorporationTRMK$ 16.552 Associated Banc-CorpASB$ 33.42041 Home Bancshares, Inc.HOMB$ 16.399 UMB Financial CorporationUMBF$ 33.12842 First Financial BancorpFFBC$ 15.973 Commerce Bankshares, Inc.CBSH$ 32.92343 Eastern Bankshares, Inc.EBC$ 15.964 Webster Financial CorporationWBS$ 32.59144 CVB Financial Corp.CVBF$ 14.419 Flagstar Bancorp, Inc.FBC$ 31.03845 Community Bank Systems, Inc.CBU$ 13.931 Sterling BancorpSTL$ 29.82046 Provident Financial Services, Inc.PFS$ 12.920 PacWest BancorpPACW$ 29.49847 First Financial Bankshares, Inc.FFIN$ 10.905 Umpqua Holdings CorporationUMPQ$ 29.23548 Boston Private Financial Holdings, Inc.BPFH$ 10.049 Bank OZKOZK$ 27.16349 First Commonwealth Financial Corporation FCF$9.068 United Bankshares, Inc.UBSI$ 26.18450 Brookline Bancorp, Inc.BRKL$8.942 Source: S&P Global Market Intelligence. Total assets as of December 31, 2020. Banks in the KRX Index as of March 31, 2021.

XML

Cover	Apr. 20, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 20, 2021
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