10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2014

Commission File No. 00-30747

PACWEST BANCORP

(Exact name of registrant as specified in its charter)

Delaware	33-0885320
(State of Incorporation)	(I.R.S. Employer Identification No.)

10250 Constellation Blvd., Suite 1640

Los Angeles, CA 90067

(Address of Principal Executive Offices, Including Zip Code)

(310) 286-1144

(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

    Yes  þ      No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

    Yes  þ      No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

þ Large accelerated filer		o Accelerated filer
o Non-accelerated filer	(Do not check if a smaller reporting company)	o Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  o      No  þ

As of October 30, 2014 there were 101,912,280 shares of the registrant's common stock outstanding, excluding 1,115,550 shares of unvested restricted stock.

1

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Earnings (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	5
	Condensed Consolidated Statement Changes in Stockholders' Equity (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	87
Item 4.	Controls and Procedures	87
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	88
Item 1A.	Risk Factors	88
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	88
Item 6.	Index to Exhibits	89
Signatures		90

2

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2014			December 31, 2013
	(Unaudited)
	(Dollars in thousands, except par value and share data)
ASSETS
Cash and due from banks	$	145,463		$	96,424
Interest-earning deposits in financial institutions	115,399			50,998
Total cash and cash equivalents	260,862			147,422
Securities available-for-sale, at fair value	1,539,681			1,494,745
Federal Home Loan Bank stock, at cost	45,602			27,939
Total investment securities	1,585,283			1,522,684
Gross loans and leases	11,591,395			4,313,335
Deferred fees and costs	(16,510		)	(983		)
Allowance for loan and lease losses	(81,899		)	(82,034		)
Total loans and leases, net	11,492,986			4,230,318
Equipment leased to others under operating leases	125,119			—
Premises and equipment, net	38,368			32,435
Foreclosed assets, net	40,524			55,891
Goodwill	1,722,129			208,743
Core deposit and customer relationship intangibles, net	18,823			17,248
FDIC loss sharing asset	22,977			45,524
Deferred tax asset, net	331,176			79,636
Other assets	300,098			193,462
Total assets	$	15,938,345		$	6,533,363
LIABILITIES:
Non interest-bearing deposits	$	2,842,488		$	2,318,446
Interest-bearing deposits	8,680,949			2,962,541
Total deposits	11,523,437			5,280,987
Borrowings	363,672			113,726
Subordinated debentures	433,545			132,645
Accrued interest payable and other liabilities	139,445			196,912
Total liabilities	12,460,099			5,724,270
Commitments and contingencies	0			0
STOCKHOLDERS' EQUITY:
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued and outstanding)	—			—
Common stock ($0.01 par value, 200,000,000 and 75,000,000 shares authorized at September 30, 2014 and December 31, 2013, respectively; 104,225,010 and 46,526,124 shares issued, respectively, includes 1,115,550 and 1,216,524 shares of unvested restricted stock, respectively)	1,042			465
Additional paid-in capital	3,855,546			1,286,737
Accumulated deficit	(356,516		)	(454,422		)
Treasury stock, at cost (1,197,180 and 703,290 shares at September 30, 2014 and December 31, 2013, respectively)	(42,647		)	(20,340		)
Accumulated other comprehensive income, net	20,821			(3,347		)
Total stockholders' equity	3,478,246			809,093
Total liabilities and stockholders' equity	$	15,938,345		$	6,533,363

See "Notes to Condensed Consolidated Financial Statements."

3

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Unaudited)
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	189,961		$	192,201		$	75,196		$	459,625		$	199,374
Investment securities	12,331			11,986			9,871			35,140			26,501
Deposits in financial institutions	64			176			91			314			183
Total interest income	202,356			204,363			85,158			495,079			226,058
Interest expense:
Deposits	8,822			7,313			1,692			17,360			6,418
Borrowings	74			199			108			352			451
Subordinated debentures	4,614			4,318			1,069			9,973			2,734
Total interest expense	13,510			11,830			2,869			27,685			9,603
Net interest income	188,846			192,533			82,289			467,394			216,455
Provision (negative provision) for credit losses	5,050			5,030			(4,167		)	9,436			(2,872		)
Net interest income after provision (negative provision) for credit losses	183,796			187,503			86,456			457,958			219,327
Noninterest income:
Service charges on deposit accounts	2,725			2,719			2,938			8,446			8,568
Other commissions and fees	6,371			5,743			2,204			14,046			6,291
Leased equipment income	5,615			5,672			—			11,287			—
Gain (loss) on sale of loans and leases	973			(485		)	604			594			1,108
Gain on securities	—			89			5,222			4,841			5,631
FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
Other income	8,045			3,266			1,191			17,640			2,151
Total noninterest income	16,314			8,479			5,127			29,484			8,170
Noninterest expense:
Compensation and benefits	45,861			45,081			27,963			119,569			79,370
Occupancy	11,188			11,078			7,828			29,861			21,906
Data processing	3,929			4,099			2,590			10,568			7,278
Other professional services	3,687			2,843			1,906			8,053			4,984
Insurance and assessments	3,020			3,179			1,496			7,792			4,024
Intangible asset amortization	1,608			1,677			1,512			4,649			3,972
Other expense	13,355			12,115			7,875			32,758			19,860
Total operating expense	82,648			80,072			51,170			213,250			141,394
Leased equipment depreciation	2,961			3,095			—			6,056			—
Foreclosed assets expense (income), net	4,827			497			(420		)	3,463			(934		)
Acquisition, integration and reorganization costs	5,193			86,242			5,450			93,635			24,139
Total noninterest expense	95,629			169,906			56,200			316,404			164,599
Earnings from continuing operations before taxes	104,481			26,076			35,383			171,038			62,898
Income tax expense	(42,205		)	(14,846		)	(11,243		)	(71,627		)	(20,868		)
Net earnings from continuing operations	62,276			11,230			24,140			99,411			42,030
(Loss) earnings from discontinued operations before taxes	(8		)	(1,151		)	39			(2,572		)	(42		)
Income tax benefit	3			476			(16		)	1,067			18
Net (loss) earnings from discontinued operations	(5		)	(675		)	23			(1,505		)	(24		)
Net earnings	$	62,271		$	10,555		$	24,163		$	97,906		$	42,006
Basic earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03
Diluted earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03
Dividends declared per share	$	0.25		$	0.25		$	0.25		$	0.75		$	0.75

See "Notes to Condensed Consolidated Financial Statements."

4

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended								Nine Months Ended
	September 30,		June 30,			September 30,			September 30,
	2014		2014			2013			2014			2013
	(Unaudited)
	(In thousands)
Net earnings	$	62,271	$	10,555		$	24,163		$	97,906		$	42,006
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) on securities available-for-sale (1)	93		23,011			4,070			45,395			(50,529		)
Income tax benefit (expense) related to unrealized holding (losses) gains arising during the period (2)	607		(9,663		)	483			(18,342		)	23,415
Unrealized holding gains (losses) on securities available-for-sale, net of tax	700		13,348			4,553			27,053			(27,114		)
Reclassification adjustment for gain included in net earnings (3)	—		(89		)	(5,222		)	(4,841		)	(5,631		)
Income tax expense related to reclassification adjustment (2)	—		37			—			1,956			172
Reclassification adjustment for gains included in earnings, net of tax	—		(52		)	(5,222		)	(2,885		)	(5,459		)
Other comprehensive income (loss), net of tax	700		13,296			(669		)	24,168			(32,573		)
Comprehensive income	$	62,971	$	23,851		$	23,494		$	122,074		$	9,433

⁽¹⁾  Recognized in "Other income" on the Condensed Consolidated Statements of Earnings.

⁽²⁾  Recognized in "Income Tax Expense" on the Condensed Consolidated Statements of Earnings.

⁽³⁾  Recognized in "Gain on securities" on the Condensed Consolidated Statements of Earnings.

See "Notes to Condensed Consolidated Financial Statements."

5

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

	Nine Months Ended September 30, 2014
	Common Stock
	Shares		Par Value		Additional Paid-in Capital			Accumulated Deficit			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total
	(Unaudited)
	(Dollars in thousands, except share data)
Balance, December 31, 2013	45,822,834		$	465	$	1,286,737		$	(454,422	)	$	(20,340	)	$	(3,347	)	$	809,093
Net earnings	—		—		—			97,906			—			—			97,906
Other comprehensive income - net unrealized gain on securities available-for-sale, net of tax	—		—		—			—			—			24,168			24,168
Issuance of common stock for merger with CapitalSource Inc.	56,601,997		566		2,593,504			—			—			—			2,594,070
Restricted stock awarded and earned stock compensation, net of shares forfeited	1,095,538		11		33,630			—			—			—			33,641
Restricted stock surrendered	(493,890	)	—					—			(22,307		)	—			(22,307		)
Dividend reinvestment	1,351		—		57			—			—			—			57
Tax effect from vesting of restricted stock	—		—		4,402			—			—			—			4,402
Cash dividends paid	—		—		(62,784		)	—			—			—			(62,784		)
Balance, September 30, 2014	103,027,830		$	1,042	$	3,855,546		$	(356,516	)	$	(42,647	)	$	20,821		$	3,478,246

See "Notes to Condensed Consolidated Financial Statements."

6

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
	2014			2013
	(Unaudited)
	(Dollars in thousands)
Cash flows from operating activities:
Net earnings	$	97,906		$	42,006
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	28,434			23,768
Provision (negative provision) for credit losses	9,436			(2,872		)
Gain on sale of foreclosed assets	(2,746		)	(4,006		)
Provision for losses on foreclosed assets	5,065			2,094
Gain on sale of loans and leases	(594		)	(1,108		)
Gain on sale of premises and equipment	(1,523		)	(15		)
Gain on sale of securities	(4,841		)	(5,631		)
Foreign currency gain	(1,331		)	—
Derivatives loss	(1,062		)	—
Earned stock compensation	33,641			6,545
Write off of goodwill relating to the asset financing segment reorganization	6,645			—
Tax effect included in stockholders' equity of restricted stock vesting	(4,402		)	(985		)
Decrease (increase) in deferred income taxes, net	47,938			4,267
Decrease in FDIC loss sharing asset	22,547			19,063
(Increase) decrease in other assets	(8,206		)	6,254
Decrease in accrued interest payable and other liabilities	(79,644		)	(22,952		)
Net cash provided by operating activities	147,263			66,428
Cash flows from investing activities:
Cash acquired in acquisitions, net of cash consideration paid	346,047			273,013
Net (increase) decrease in loans and leases	(433,525		)	221,779
Proceeds from sale of loans and leases	35,696			18,812
Securities available-for-sale:
Proceeds from maturities and paydowns	95,039			264,654
Proceeds from sales	465,608			12,810
Purchases	(186,969		)	(504,936		)
Collection of securities sales proceeds	484,084			—
Net redemptions of Federal Home Loan Bank stock	28,397			12,549
Proceeds from sales of foreclosed assets	20,097			28,918
Purchases of premises and equipment, net	(2,283		)	(2,246		)
Proceeds from sales of premises and equipment	3,759			26
Net decrease of equipment leased to others under operating leases	30,502			—
Net cash provided by investing activities	886,452			325,379
Cash flows from financing activities:
Net increase (decrease) in deposits:
Noninterest-bearing	420,478			28,310
Interest-bearing	(518,012		)	(405,166		)
Net decrease in borrowings	(742,109		)	(4,258		)
Restricted stock surrendered	(22,307		)	(2,415		)
Tax effect included in stockholders' equity of restricted vesting stock	4,402			985
Cash dividends paid	(62,727		)	(29,648		)
Net cash used in financing activities	(920,275		)	(412,192		)
Net increase (decrease) in cash and cash equivalents	113,440			(20,385		)
Cash and cash equivalents, beginning of period	147,422			164,404
Cash and cash equivalents, end of period	$	260,862		$	144,019
Supplemental disclosures of cash flow information:
Cash paid for interest	$	23,959		$	10,604
Cash (received) paid for income taxes	(3,829		)	16,703
Loans transferred to other real estate owned	667			12,754
Common stock issued in CapitalSource acquisition	2,594,070			—
Common stock issued in First California Financial Group acquisition	—			242,268

See "Notes to Condensed Consolidated Financial Statements."

7

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1.  Organization    

PacWest Bancorp is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. Our principal business is to serve as the holding company for our Los Angeles‑based wholly owned banking subsidiary, Pacific Western Bank, which we refer to as “Pacific Western” or the “Bank.” When we say “we,” “our,” or the “Company,” we mean the Company on a consolidated basis with the Bank. When we refer to “PacWest” or to the holding company, we are referring to the parent company on a stand‑alone basis. As of September 30, 2014, we had total assets of $15.9 billion, total loans and leases of $11.5 billion, total deposits of $11.5 billion and total stockholders' equity of $3.5 billion.

Pacific Western is a full-service commercial bank offering a broad range of banking products and services including: accepting demand, money market, and time deposits; originating loans and leases, including an array of commercial real estate loans and commercial lending products. The Bank has a foundation of locally generated and relationship-based deposits, with 80 full-service branches located throughout the state of California. Our branch operations are located primarily in Southern California extending from San Diego County to California’s Central Coast, and we operate three banking offices in the San Francisco Bay area and two offices in the Central Valley. Our targeted collateral for our real estate loan offerings includes healthcare properties, office properties, industrial properties, multifamily properties, hospitality properties, and retail properties. Our commercial loan products include equipment loans and leases, asset-based loans, lender finance loans and loans secured by borrower future cash flows.

As a result of the CapitalSource Inc. merger, Pacific Western Bank established the CapitalSource Division, which we also refer to as the National Lending segment. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to small to middle market businesses. Pacific Western’s leasing operation, Pacific Western Equipment Finance, and its group specializing in asset-based lending, CapitalSource Business Finance Group (formerly BFI Business Finance and First Community Financial), also became part of the CapitalSource Division. The CapitalSource Division’s loan and lease origination efforts are conducted through offices located in Chevy Chase, Maryland; Los Angeles and San Jose, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; New York, New York; and Midvale, Utah. When we refer to "CapitalSource Inc." we are referring to the company acquired on April 7, 2014 and when we refer to the "CapitalSource Division" we are referring to a division of Pacific Western Bank that specializes in middle-market lending on a nationwide basis.

We generate our revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities, and fees received in connection with deposit services, extending credit and other services offered, including foreign exchange services. Our major operating expenses are the interest paid by the Bank on deposits and borrowings, compensation and general operating expenses.

We have completed 27 acquisitions from May 2000 through September 30, 2014, including the acquisition of CapitalSource Inc. on April 7, 2014. Since 2000, our acquisitions have been accounted for using the acquisition method of accounting and, accordingly, the operating results of the acquired entities have been included in the condensed consolidated financial statements from their respective acquisition dates. See Note 3, Acquisitions, for more information about the CapitalSource Inc. merger and the acquisition of First California Financial Group, Inc. ("FCAL") on May 31, 2013.

Significant Accounting Policies

Except as discussed below, our accounting policies are described in Note 1, Nature of Operations and Summary of Significant Accounting Policies, of our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission ("Form 10-K").

Basis of Presentation

Our interim consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all adjustments and eliminations, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K.

The accompanying financial statements reflect our consolidated accounts. All significant intercompany accounts and transactions have been eliminated.

8

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Use of Estimates

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these condensed consolidated financial statements in conformity with GAAP. Material estimates subject to change in the near term include, among other items, the allowance for credit losses, the carrying value and useful lives of intangible assets, the carrying value of the FDIC loss sharing asset, the realization of deferred tax assets, and the fair value estimates of assets acquired and liabilities assumed in acquisitions. These estimates may be adjusted as more current information becomes available, and any adjustment may be significant.

As described in Note 3, Acquisitions, the acquired assets and liabilities of CapitalSource Inc. and FCAL were measured at their estimated fair values. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and assumed liabilities.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period’s presentation format. As of September 30, 2014, the "Leases" loan portfolio segment is included in the "Equipment finance" class category of the "Commercial" loan portfolio segment; loan-related legal expenses which were previously reported within the "Other professional services" category are reported within the "Other expense" category; and other foreclosed assets which were previously reported within the "Other assets" category are reported within the "Foreclosed assets, net" category.

Note 2.  Discontinued Operations    

Discontinued operations include the income and expense related to Electronic Payment Services ("EPS"), a discontinued division of the Bank acquired in connection with the FCAL acquisition. For the three months endedSeptember 30, 2014, the EPS division recorded no revenues and a pre-tax loss of $8,000. For the nine months endedSeptember 30, 2014, the EPS division recorded no revenues and a pre-tax loss of $2.6 million. Liabilities of the EPS division, which consist primarily of noninterest‑bearing deposits, are included in the condensed consolidated balance sheets under the caption “Accrued interest payable and other liabilities.” For segment reporting purposes, the EPS division is included in our Community Banking segment.

9

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 3.  Acquisitions    

The following assets acquired and liabilities assumed of CapitalSource Inc. and FCAL are presented at estimated fair value as of their respective acquisition dates:

	Acquisition and Date Acquired
	CapitalSource Inc.		First California Financial Group
	April 7, 2014		May 31, 2013
	(In thousands)
Assets Acquired:
Cash and due from banks	$	768,553	$	6,124
Interest‑earning deposits in financial institutions	60,612		266,889
Investment securities available‑for‑sale	382,797		4,444
FHLB SF stock	46,060		9,518
Loans and leases	6,877,427		1,049,613
Equipment leased to others under operating leases	160,015		—
Premises and equipment	12,663		15,322
Foreclosed assets	6,382		13,772
FDIC loss sharing asset	—		17,241
Income tax assets	311,462		33,360
Goodwill	1,520,031		129,070
Core deposit and customer relationship intangibles	6,720		7,927
Other assets	581,905		27,576
Total assets acquired	$	10,734,627	$	1,580,856
Liabilities Assumed:
Noninterest‑bearing deposits	$	4,631	$	361,166
Interest‑bearing deposits	6,236,419		739,713
Other borrowings	992,109		—
Subordinated debentures	300,918		24,061
Discontinued operations	—		184,619
Accrued interest payable and other liabilities	123,362		19,729
Total liabilities assumed	$	7,657,439	$	1,329,288
Total consideration paid	$	3,077,188	$	251,568
Summary of consideration:
Cash paid	$	483,118	$	—
PacWest common stock issued	2,594,070		242,268
Cancellation of FCAL common stock owned by PacWest (at acquisition date fair value)	—		9,300
Total	$	3,077,188	$	251,568

CapitalSource Inc. Merger

We acquired CapitalSource Inc. on April 7, 2014. As part of the merger, CapitalSource Bank (“CSB”), a wholly owned subsidiary of CapitalSource Inc., merged with and into Pacific Western Bank. We completed the merger in order to augment our loan and lease generation capabilities and to diversify our loan portfolio.

Upon closing, we created the CapitalSource Division of the Bank. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses. When we refer to "CapitalSource Inc." we are referring to the company acquired on April 7, 2014 and when we refer to the "CapitalSource Division" we are referring to a division of the Bank that provides on a nationwide basis senior secured real estate loans, equipment loans and leases, asset-based loans, lender finance loans and cash flow loans secured by the enterprise value of the borrowing entity.

In the merger with CapitalSource Inc., each share of CapitalSource Inc. common stock was converted into the right to receive $2.47 in cash and 0.2837 of a share of PacWest common stock. PacWest issued an aggregate of approximately 56.6 million  shares of PacWest common stock to CapitalSource Inc. stockholders. Based on the closing price of PacWest’s common stock on April 7,

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PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

2014 of $45.83 per share, the aggregate consideration paid to CapitalSource Inc. common stockholders and holders of equity awards to acquire CapitalSource Inc. common stock was approximately $3.1 billion.

CSB was a commercial lender which operated under a California Industrial Loan Bank charter headquartered in Los Angeles, California. CSB provided financial products to small to middle market businesses nationwide and also provided depository products and services to consumers in Southern and Central California. CSB’s loan origination efforts were conducted nationwide, and continue as part of the CapitalSource Division, with offices located in Chevy Chase, Maryland; Los Angeles, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; and New York, New York.

The integration of CSB’s deposit system and the conversion of CSB’s branches to Pacific Western Bank’s operating platform were completed over the weekend of April 12, 2014. CSB had 21 branches, 12 of which were closed in the consolidation with Pacific Western at the close of business on April 11, 2014 and one overlapping Pacific Western branch was closed as well. All remaining branches opened on Monday, April 14, 2014 as Pacific Western branches.

The CapitalSource Inc. merger has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the merger date. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the merger date or when additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier. The application of the acquisition method of accounting resulted in goodwill of $1.5 billion. All of the recognized goodwill is expected to be non‑deductible for tax purposes. The fair value of the acquired tax assets, once the final tax returns have been filed, are expected to change.

As required by the merger agreement and as described in the joint proxy statement/prospectus relating to the merger, the Board of Directors of PacWest adopted a Tax Asset Protection Plan (the “Plan”). This Plan is similar to the Tax Benefit Preservation Plan that CapitalSource Inc. had in place prior to the merger. The purpose of the Plan is to seek to preserve PacWest’s ability to utilize net operating loss carryforwards and certain other tax assets (collectively, the “NOLs”) for U.S. federal income tax purposes that PacWest and certain of its subsidiaries have. The Plan seeks to protect the ability to utilize the NOLs by mitigating the potential for an “ownership change” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”).

In general, an “ownership change” would occur if PacWest’s “5‑percent shareholders,” as defined under Section 382 of the Code, collectively increase their ownership in PacWest, in relation to their respective historical low points, by more than 50 percentage points over a rolling three‑year period. In general, institutional holders that file as “investment advisers” for SEC purposes, such as mutual fund companies that hold PacWest common stock on behalf of several individual mutual funds where no single fund owns five percent or more of PacWest’s common stock, are typically not treated as “5‑percent shareholders” for purposes of Section 382 of the Code.

First California Financial Group Acquisition

On May 31, 2013, we acquired First California Financial Group, Inc. As part of this acquisition, First California Bank ("FCB"), a wholly owned subsidiary of FCAL, merged with and into Pacific Western. The FCAL acquisition has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the May 31, 2013 acquisition date. The application of the acquisition method of accounting resulted in goodwill of $129.1 million. All of the recognized goodwill is expected to be non‑deductible for tax purposes.

FCB was a full‑service commercial bank headquartered in Westlake Village, California. FCB provided a full range of banking services, including revolving lines of credit, term loans, commercial real estate loans, construction loans, consumer loans and home equity loans to individuals, professionals, and small to mid‑sized businesses. FCB operated 15 branches throughout Southern California in the Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, and San Luis Obispo Counties. We completed the conversion and integration of the FCB branches to Pacific Western’s operating platform in June 2013 and as a result, we added seven locations to our branch network.

Unaudited Pro Forma Results of Operations

The following table presents our unaudited pro forma results of operations for the periods presented as if the CapitalSource Inc. and FCAL acquisitions had been completed on January 1, 2013. The unaudited pro forma results of operations include the historical accounts of the Company, CapitalSource Inc. and FCAL and pro forma adjustments, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the CapitalSource

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Notes to Condensed Consolidated Financial Statements (Unaudited)

Inc. and FCAL acquisitions been completed at the beginning of 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2013		2014		2013
	(Dollars in thousands, except per share data)
Pro forma revenues (net interest income plus noninterest income)	$	209,558	$	591,283	$	606,570
Pro forma net earnings from continuing operations	$	82,662	$	177,846	$	180,219
Pro forma net earnings from continuing operations per share:
Basic	$	0.81	$	1.73	$	1.76
Diluted	$	0.81	$	1.73	$	1.76

No pro forma results of operations information have been provided for the three months ended September 30, 2014 as CapitalSource Inc. was acquired on April 7, 2014 and the actual results of CapitalSource Inc. and the Company are included together for this three-month period in the condensed consolidated statements of earnings.

Revenues and pre-tax net earnings from operations related to CapitalSource Inc. from the April 7, 2014 merger date through September 30, 2014, and included in the consolidated statement of earnings, were $259.0 million and $94.4 million, respectively.

Note 4.  Goodwill and Other Intangible Assets

Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Our intangible assets with definite lives are core deposit intangibles ("CDI") and customer relationship intangibles ("CRI"). In the second quarter of 2014, we wrote-off $6.6 million of goodwill and $0.5 million of CRI related to the reorganization of the legacy PacWest asset financing segment. These amounts are included in "Acquisition, integration and reorganization costs" in the condensed consolidated statement of earnings. In the third quarter of 2014, we had no such write-offs.

Goodwill and other intangible assets deemed to have indefinite lives generated from purchase business combinations are not subject to amortization and are instead tested for impairment no less than annually. Impairment exists when the carrying value of goodwill exceeds its implied fair value. An impairment loss would be recognized in an amount equal to that excess and would be included in “Noninterest expense” in the condensed consolidated statement of earnings.

CDI and CRI are amortized over their respective estimated useful lives and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or loan customers acquired. The weighted average amortization period remaining for all of our CDI and CRI is 4.6 years. The aggregate CDI and CRI amortization expense is expected to be $6.7 million for 2014. The estimated aggregate amortization expense related to these intangible assets for each of the next five years is $6.0 million for 2015, $4.1 million for 2016, $2.3 million for 2017, $2.0 million for 2018 and $1.7 million for 2019.

The following table presents the changes in the carrying amount of goodwill for the period indicated:    

	Goodwill
	(In thousands)
Balance, December 31, 2013	$	208,743
Addition from the CapitalSource Inc. merger	1,520,031
Write-off of goodwill	(6,645		)
Balance, September 30, 2014	$	1,722,129

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Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents the changes in CDI and CRI and the related accumulated amortization for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(In thousands)
Gross Amount of CDI and CRI:
Balance, beginning of period	$	53,090		$	48,963		$	53,339		$	48,963		$	45,412
Additions	—			6,720			—			6,720			7,927
Fully amortized portion	—			(1,293		)	(4,376		)	(1,293		)	(4,376		)
Write-off	—			(1,300		)	—			(1,300		)	—
Balance, end of period	53,090			53,090			48,963			53,090			48,963
Accumulated Amortization:
Balance, beginning of period	(32,659		)	(33,079		)	(33,149		)	(31,715		)	(30,689		)
Amortization	(1,608		)	(1,677		)	(1,512		)	(4,649		)	(3,972		)
Fully amortized portion	—			1,293			4,376			1,293			4,376
Write-off	—			804			—			804			—
Balance, end of period	(34,267		)	(32,659		)	(30,285		)	(34,267		)	(30,285		)
Net CDI and CRI, end of period	$	18,823		$	20,431		$	18,678		$	18,823		$	18,678

Note 5. Investments     

Securities Available-for-Sale

The following table presents amortized cost, gross unrealized gains and losses, and carrying values of securities available-for-sale. As of September 30, 2014 and December 31, 2013, our investment securities, available-for-sale were as follows:

	September 30, 2014									December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Residential mortgage-backed securities:
Government agency and
government-sponsored enterprise
pass through securities	$	537,969	$	17,917	$	(799	)	$	555,087	$	691,944	$	18,012	$	(2,768	)	$	707,188
Government agency and
government-sponsored enterprise
collateralized mortgage obligations	280,820		1,456		(2,485		)	279,791		197,069		388		(4,584		)	192,873
Covered private label collateralized
mortgage obligations	27,830		7,568		(89		)	35,309		30,502		7,552		(150		)	37,904
Other private label collateralized
mortgage obligations	12,563		35		(5		)	12,593		—		—		—			—
Municipal securities	473,426		12,212		(3,211		)	482,427		459,182		1,749		(24,273		)	436,658
Corporate debt securities	110,032		2,139		(28		)	112,143		84,119		71		(1,483		)	82,707
Government-sponsored enterprise debt
securities	36,214		168		—			36,382		10,046		—		(174		)	9,872
Other securities	26,044		33		(128		)	25,949		27,654		2		(113		)	27,543
Total	$	1,504,898	$	41,528	$	(6,745	)	$	1,539,681	$	1,500,516	$	27,774	$	(33,545	)	$	1,494,745

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PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The covered private label collateralized mortgage obligations ("CMO's") were acquired in the FDIC-assisted acquisition of Affinity Bank in August 2009. The loss sharing provisions for these private label CMO's expired in the third quarter of 2014. Other securities consist primarily of asset‑backed securities. See Note 11, Fair Value Measurements, for information on fair value measurements and methodology.

As of September 30, 2014, securities available‑for‑sale with a carrying value of $294.6 million were pledged as collateral for borrowings, public deposits and other purposes as required by various statutes and agreements.

During the three months endedSeptember 30, 2014 and 2013, we sold no securities. However, during the three months endedSeptember 30, 2013, we recorded a $5.2 million non-taxable gain to recognize our previously-held equity interest in FCAL common stock at its fair market value as of the acquisition date.

During the nine months endedSeptember 30, 2014, we sold $461.7 million of GSE pass through securities, other securities, and securities obtained in the CapitalSource Inc. merger, for which we realized gains of $4.9 million. During the nine months endedSeptember 30, 2013, we sold $12.4 million in corporate debt securities for which we realized gains of $409,000.

Realized gains or losses resulting from the sale of securities are calculated using the specific identification method and included in gain on securities. During the three months endedSeptember 30, 2014 and 2013, we had $0.7 million and $(0.7) million, respectively, of net unrealized after-tax gains (losses) as a component of accumulated other comprehensive income, net.

Unrealized Losses on Investment Securities

As of September 30, 2014 and December 31, 2013, the gross unrealized losses and fair values of investment securities that were in unrealized loss positions, for which other-than-temporary impairments have not been recognized in earnings, were as follows:

	September 30, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Residential mortgage-backed securities:
Government agency and government-
sponsored enterprise pass through
securities	$	38,316	$	(191	)	$	27,894	$	(608	)	$	66,210	$	(799	)
Government agency and government-
sponsored enterprise collateralized
mortgage obligations	159,329		(967		)	42,340		(1,518		)	201,669		(2,485		)
Covered private label collateralized
mortgage obligations	—		—			1,050		(89		)	1,050		(89		)
Other private label collateralized
mortgage obligations	893		(5		)	—		—			893		(5		)
Municipal securities	18,058		(75		)	133,602		(3,136		)	151,660		(3,211		)
Corporate debt securities	—		—			12,971		(28		)	12,971		(28		)
securities	—		—			—		—			—		—
Other securities	6,427		(108		)	10,030		(20		)	16,457		(128		)
Total	$	223,023	$	(1,346	)	$	227,887	$	(5,399	)	$	450,910	$	(6,745	)

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Notes to Condensed Consolidated Financial Statements (Unaudited)

	December 31, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Residential mortgage-backed securities:
Government agency and government-
sponsored enterprise pass through
securities	$	148,662	$	(2,767	)	$	32	$	(1	)	$	148,694	$	(2,768	)
Government agency and government-
sponsored enterprise collateralized
mortgage obligations	179,938		(4,486		)	4,383		(98		)	184,321		(4,584		)
Covered private label collateralized
mortgage obligations	1,640		(60		)	617		(90		)	2,257		(150		)
Municipal securities	337,208		(24,273		)	—		—			337,208		(24,273		)
Corporate debt securities	72,636		(1,483		)	—		—			72,636		(1,483		)
Government-sponsored enterprise debt
securities	9,872		(174		)	—		—			9,872		(174		)
Other securities	23,969		(113		)	—		—			23,969		(113		)
Total	$	773,925	$	(33,356	)	$	5,032	$	(189	)	$	778,957	$	(33,545	)

We reviewed the securities that were in a loss position at September 30, 2014, and concluded their losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. Accordingly, we determined the securities were temporarily impaired and we did not recognize such impairment in the condensed consolidated statements of earnings. Additionally, we have no plans to sell these securities and believe that it is more likely than not we would not be required to sell these securities before recovery of their amortized cost.

Contractual Maturities

The following table presents the contractual maturities of our available-for-sale securities portfolio based on amortized cost and carrying value as of the date indicated.

	September 30, 2014
	Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	4,386	$	4,422
Due after one year through five years	85,057		85,209
Due after five years through ten years	249,748		252,685
Due after ten years	1,165,707		1,197,365
Total securities available-for-sale	$	1,504,898	$	1,539,681

Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities may differ from contractual maturities because obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

FHLB Stock

At September 30, 2014, we had a $45.6 million investment in Federal Home Loan Bank of San Francisco ("FHLB SF") stock carried at cost. During the nine months endedSeptember 30, 2014, FHLB SF stock increased $17.7 million due primarily to the addition of FHLB SF stock from the CapitalSource Inc. merger. We evaluated the carrying value of our FHLB SF stock investment at September 30, 2014, and determined that it was not impaired. Our evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB SF, repurchase activity of excess stock by the FHLB SF at its carrying value, the return on the investment, and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment.

Interest Income on Investment Securities

The following table presents the composition of our interest income on investment securities:

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2014		2014		2013		2014		2013
	(In thousands)
Taxable interest	$	7,850	$	7,668	$	6,028	$	22,438	$	16,979
Non-taxable interest	3,343		3,333		3,302		10,004		8,443
Dividend income	1,138		985		541		2,698		1,079
Total interest income on investment securities	$	12,331	$	11,986	$	9,871	$	35,140	$	26,501

Note 6.  Loans and Leases and Credit Quality

The Company’s loan and lease portfolio includes originated and purchased loans and leases. Originated loans and leases and purchased loans and leases, in each case, for which there was no evidence of credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments, are referred to collectively as non-purchased credit impaired loans, or "Non-PCI loans." Purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and it was probable that we would be unable to collect all contractually required payments are referred to as purchased credit impaired loans, or "PCI loans".

Non-PCI loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired non-impaired loans are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold.

PCI loans are accounted for in accordance with ASC Subtopic 310‑30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” For PCI loans, at the time of acquisition we (i) calculate the contractual amount and timing of undiscounted principal and interest payments (the "undiscounted contractual cash flows") and (ii) estimate the amount and timing of undiscounted expected principal and interest payments (the "undiscounted expected cash flows"). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The difference between the undiscounted cash flows expected to be collected and the estimated fair value of the acquired loans is the accretable yield. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loan portfolios; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income.

In the CapitalSource Inc. merger, the estimated fair value of the loans and leases acquired, excluding PCI loans, was $6.8 billion, the related gross contractual cash flows was $9.4 billion, and the estimated contractual cash flows not expected to be collected was $839.8 million. The estimated fair value of loans acquired that were identified as PCI loans was $79.2 million.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table summarizes the accretable yield on the PCI loans acquired in the CapitalSource Inc. merger as of April 7, 2014:

	April 7, 2014 Accretable Yield
	(In thousands)
Undiscounted contractual cash flows	$	227,688
Undiscounted cash flows not expected to be collected (nonaccretable difference)	(134,726		)
Undiscounted cash flows expected to be collected	92,962
Estimated fair value of PCI loans acquired	(79,234		)
Accretable yield	$	13,728

The following table summarizes the composition of our loan and lease portfolio as of the dates indicated:

	September 30, 2014									December 31, 2013
	Non-PCI									Non-PCI
	Loans			PCI						Loans			PCI
	and Leases			Loans			Total			and Leases			Loans			Total
	(In thousands)
Real estate mortgage	$	5,406,371		$	314,919		$	5,721,290		$	2,424,864		$	371,134		$	2,795,998
Real estate construction	285,109			8,208			293,317			209,090			10,427			219,517
Commercial	5,440,144			27,961			5,468,105			1,241,776			974			1,242,750
Consumer	108,340			343			108,683			54,809			261			55,070
Total gross loans and leases	11,239,964			351,431			11,591,395			3,930,539			382,796			4,313,335
Deferred fees and costs	(16,458		)	(52		)	(16,510		)	(983		)	—			(983		)
Total loans and leases, net of unearned income	11,223,506			351,379			11,574,885			3,929,556			382,796			4,312,352
Allowance for loan and lease losses	(63,084		)	(18,815		)	(81,899		)	(60,241		)	(21,793		)	(82,034		)
Total net loans and leases	$	11,160,422		$	332,564		$	11,492,986		$	3,869,315		$	361,003		$	4,230,318

The following tables present a summary of the activity in the allowance for loan and lease losses on Non‑PCI loans and leases by portfolio segment and PCI loans for the periods indicated:

	Three Months Ended September 30, 2014
	Real Estate Mortgage			Real Estate Construction		Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	22,276		$	4,302	$	35,530		$	3,415		$	65,523		$	16,626		$	82,149
Charge-offs	(395		)	—		(7,282		)	(171		)	(7,848		)	(108		)	(7,956		)
Recoveries	1,312			24		337			52			1,725			—			1,725
Provision (negative provision)	3,810			1,591		422			(2,139		)	3,684			2,297			5,981
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899

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Notes to Condensed Consolidated Financial Statements (Unaudited)

	Nine Months Ended September 30, 2014
	Real Estate Mortgage			Real Estate Construction		Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	26,078		$	4,298	$	26,921		$	2,944		$	60,241		$	21,793		$	82,034
Charge-offs	(976		)	—		(9,049		)	(203		)	(10,228		)	(4,712		)	(14,940		)
Recoveries	1,949			112		1,301			294			3,656			51			3,707
Provision (negative provision)	(48		)	1,507		9,834			(1,878		)	9,415			1,683			11,098
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	1,568		$	119	$	7,654		$	34		$	9,375
Collectively evaluated for impairment	$	25,435		$	5,798	$	21,353		$	1,123		$	53,709
Acquired loans with deteriorated credit quality															$	18,815
Loan and Leases:
Ending balance	$	5,398,244		$	283,067	$	5,433,787		$	108,408		$	11,223,506		$	351,379		$	11,574,885
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	59,729		$	12,692	$	47,180		$	3,655		$	123,256
Collectively evaluated for impairment	$	5,338,515		$	270,375	$	5,386,607		$	104,753		$	11,100,250
Acquired loans with deteriorated credit quality															$	351,379

	Three Months Ended September 30, 2013
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for loan and lease losses:
Balance, beginning of period	$	31,804		$	3,432		$	26,343		$	1,667		$	63,246		$	27,397		$	90,643
Charge-offs	(281		)	—			(2,439		)	(75		)	(2,795		)	—			(2,795		)
Recoveries	152			179			324			15			670			5			675
Provision (negative provision)	(2,069		)	(66		)	1,233			332			(570		)	(4,167		)	(4,737		)
Balance, end of period	$	29,606		$	3,545		$	25,461		$	1,939		$	60,551		$	23,235		$	83,786

18

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

	Nine Months Ended September 30, 2013
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for loan and lease losses:
Balance, beginning of period	$	38,700		$	3,221		$	22,252		$	1,726		$	65,899		$	26,069		$	91,968
Charge-offs	(3,840		)	—			(4,631		)	(111		)	(8,582		)	—			(8,582		)
Recoveries	1,665			514			2,028			57			4,264			38			4,302
Provision (negative provision)	(6,919		)	(190		)	5,812			267			(1,030		)	(2,872		)	(3,902		)
Balance, end of period	$	29,606		$	3,545		$	25,461		$	1,939		$	60,551		$	23,235		$	83,786
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	3,225		$	103		$	6,147		$	240		$	9,715
Collectively evaluated for impairment	$	26,381		$	3,442		$	19,314		$	1,699		$	50,836
Acquired loans with deteriorated credit quality																$	23,235
Loan and Leases:
Ending balance	$	2,548,932		$	188,872		$	1,178,923		$	33,909		$	3,950,636		$	432,757		$	4,383,393
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	90,329		$	14,878		$	25,083		$	792		$	131,082
Collectively evaluated for impairment	$	2,458,603		$	173,994		$	1,153,840		$	33,117		$	3,819,554
Acquired loans with deteriorated credit quality																$	432,757

19

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Non‑Purchased Credit Impaired (Non‑PCI) Loans and Leases

The following table presents the credit risk rating categories for Non‑PCI loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful.

	September 30, 2014						December 31, 2013
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	504,066	$	15,284	$	519,350	$	168,216	$	12,337	$	180,553
SBA	344,285		7,483		351,768		39,869		5,297		45,166
Other	4,430,742		96,384		4,527,126		2,132,109		64,279		2,196,388
Total real estate mortgage	5,279,093		119,151		5,398,244		2,340,194		81,913		2,422,107
Real estate construction:
Residential	71,961		925		72,886		58,131		750		58,881
Commercial	205,258		4,923		210,181		142,607		6,291		148,898
Total real estate construction	277,219		5,848		283,067		200,738		7,041		207,779
Commercial:
Collateralized	416,759		11,818		428,577		567,643		18,838		586,481
Unsecured	125,373		1,666		127,039		151,896		1,856		153,752
Asset-based	1,575,920		18,512		1,594,432		195,569		6,859		202,428
Cash flow	2,238,196		76,002		2,314,198		—		—		—
Equipment finance	906,494		21,966		928,460		272,851		632		273,483
SBA	39,042		2,039		41,081		22,880		5,761		28,641
Total commercial	5,301,784		132,003		5,433,787		1,210,839		33,946		1,244,785
Consumer	104,424		3,984		108,408		50,474		4,411		54,885
Total Non-PCI loans and leases	$	10,962,520	$	260,986	$	11,223,506	$	3,802,245	$	127,311	$	3,929,556

In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. Risk rating downgrades generally result in higher allowances for credit losses.

20

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present an aging analysis of our Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2014
	30-89 Days Past Due		90 or More  Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	519,350	$	519,350
SBA	2,304		516		2,820		348,948		351,768
Other	8,150		13,128		21,278		4,505,848		4,527,126
Total real estate mortgage	10,454		13,644		24,098		5,374,146		5,398,244
Real estate construction:
Residential	—		542		542		72,344		72,886
Commercial	1,928		1,487		3,415		206,766		210,181
Total real estate construction	1,928		2,029		3,957		279,110		283,067
Commercial:
Collateralized	56		940		996		427,581		428,577
Unsecured	38		25		63		126,976		127,039
Asset-based	271		—		271		1,594,161		1,594,432
Cash flow	235		—		235		2,313,963		2,314,198
Equipment finance	119		132		251		928,209		928,460
SBA	—		—		—		41,081		41,081
Total commercial	719		1,097		1,816		5,431,971		5,433,787
Consumer	168		3,244		3,412		104,996		108,408
Total Non-PCI loans and leases	$	13,269	$	20,014	$	33,283	$	11,190,223	$	11,223,506

	December 31, 2013
	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	180,553	$	180,553
SBA	2,564		—		2,564		42,602		45,166
Other	13,026		2,406		15,432		2,180,956		2,196,388
Total real estate mortgage	15,590		2,406		17,996		2,404,111		2,422,107
Real estate construction:
Residential	—		—		—		58,881		58,881
Commercial	—		2,013		2,013		146,885		148,898
Total real estate construction	—		2,013		2,013		205,766		207,779
Commercial:
Collateralized	473		259		732		585,749		586,481
Unsecured	83		68		151		153,601		153,752
Asset-based	—		—		—		202,428		202,428
Equipment finance	2,662		244		2,906		270,577		273,483
SBA	1,770		243		2,013		26,628		28,641
Total commercial	4,988		814		5,802		1,238,983		1,244,785
Consumer	3,319		—		3,319		51,566		54,885
Total Non-PCI loans and leases	$	23,897	$	5,233	$	29,130	$	3,900,426	$	3,929,556

21

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

At September 30, 2014 and December 31, 2013, the Company had no loans and leases (excluding PCI loans) that were greater than 90 days past due and still accruing interest. It is the Company’s policy to discontinue accruing interest when principal or interest payments are past due 90 days or more unless the loan is both well secured and in the process of collection or when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business.

The following table presents our nonaccrual and performing Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2014						December 31, 2013
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	6,451	$	512,899	$	519,350	$	6,723	$	173,830	$	180,553
SBA	7,483		344,285		351,768		2,602		42,564		45,166
Other	26,575		4,500,551		4,527,126		18,648		2,177,740		2,196,388
Total real estate mortgage	40,509		5,357,735		5,398,244		27,973		2,394,134		2,422,107
Real estate construction:
Residential	925		71,961		72,886		389		58,492		58,881
Commercial	2,703		207,478		210,181		2,830		146,068		148,898
Total real estate construction	3,628		279,439		283,067		3,219		204,560		207,779
Commercial:
Collateralized	5,165		423,412		428,577		9,991		576,490		586,481
Unsecured	226		126,813		127,039		458		153,294		153,752
Asset-based	5,003		1,589,429		1,594,432		1,070		201,358		202,428
Cash flow	15,958		2,298,240		2,314,198		—		—		—
Equipment finance	12,885		915,575		928,460		632		272,851		273,483
SBA	2,039		39,042		41,081		3,037		25,604		28,641
Total commercial	41,276		5,392,511		5,433,787		15,188		1,229,597		1,244,785
Consumer	3,535		104,873		108,408		394		54,491		54,885
Total Non-PCI loans and leases	$	88,948	$	11,134,558	$	11,223,506	$	46,774	$	3,882,782	$	3,929,556

At September 30, 2014, nonaccrual loans and leases totaled $88.9 million. Nonaccrual loans and leases included $7.4 million of loans 30 to 89 days past due and $61.6 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectibility. Nonaccrual loans and leases totaled $46.8 million at December 31, 2013, including $4.2 million of loans 30 to 89 days past due and $37.3 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectibility.

Non‑PCI nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. The following table presents the composition of our impaired loans and leases as of the dates indicated:

	September 30, 2014						December 31, 2013
			Performing		Total				Performing		Total
	Nonaccrual		Restructured		Impaired		Nonaccrual		Restructured		Impaired
	Loans/Leases		Loans		Loans/Leases		Loans/Leases		Loans		Loans/Leases
	(In thousands)
Real estate mortgage	$	40,509	$	19,220	$	59,729	$	27,973	$	34,303	$	62,276
Real estate construction	3,628		9,064		12,692		3,219		4,293		7,512
Commercial	41,276		5,904		47,180		15,188		2,744		17,932
Consumer	3,535		120		3,655		394		308		702
Total	$	88,948	$	34,308	$	123,256	$	46,774	$	41,648	$	88,422

22

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present information regarding our Non‑PCI impaired loans and leases by portfolio segment and class for the dates indicated:

	September 30, 2014						December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,957	$	1,956	$	92	$	5,717	$	6,215	$	198
SBA	—		—		—		1,642		1,643		230
Other	13,302		13,389		1,476		15,937		16,571		1,760
Real estate construction:
Residential	767		767		72		778		778		168
Commercial	1,162		4,945		47		1,250		1,250		1
Commercial:
Collateralized	5,404		5,789		3,536		4,377		4,692		4,270
Unsecured	620		631		416		801		829		375
Asset-based	262		262		262		1,070		1,070		180
Cash flow	15,958		18,014		2,666		—		—		—
Equipment finance	1,864		1,864		774		—		—		—
SBA	—		—		—		1,136		1,136		178
Consumer	146		145		34		424		471		240
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,451	$	7,593	$	—	$	3,013	$	3,385	$	—
SBA	7,483		10,712		—		2,602		3,646		—
Other	30,536		41,596		—		33,365		46,062		—
Real estate construction:
Residential	542		550		—		—		—		—
Commercial	10,221		10,995		—		5,484		9,923		—
Commercial:
Collateralized	3,820		10,932		—		6,700		9,924		—
Unsecured	180		278		—		179		247		—
Asset-based	4,741		5,584		—		—		—		—
Cash flow	—		505		—		—		—		—
Equipment finance	11,021		14,809		—		632		632		—
SBA	3,310		4,984		—		3,037		4,945		—
Consumer	3,509		3,681		—		278		394		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	59,729	$	75,246	$	1,568	$	62,276	$	77,522	$	2,188
Real estate construction	12,692		17,257		119		7,512		11,951		169
Commercial	47,180		63,652		7,654		17,932		23,475		5,003
Consumer	3,655		3,826		34		702		865		240
Total	$	123,256	$	159,981	$	9,375	$	88,422	$	113,813	$	7,600

23

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

	Three Months Ended September 30,
	2014				2013
	Weighted Average Balance(1)		Interest Income Recognized		Weighted Average Balance(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,963	$	20	$	8,779	$	226
SBA	—		—		1,659		23
Other	13,401		99		51,327		513
Real estate construction:
Residential	768		4		393		—
Commercial	1,176		6		8,540		87
Commercial:
Collateralized	5,815		43		3,804		10
Unsecured	624		6		2,062		8
Asset-based	265		—		223		5
Cash flow	15,695		—		—		—
Equipment finance	1,889		—		—		—
SBA	—		—		1,094		12
Consumer	148		2		436		3
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,485	$	—	$	—	$	—
SBA	7,746		38		2,935		—
Other	31,313		87		25,041		133
Real estate construction:
Residential	542		—		441		—
Commercial	10,236		74		4,568		(59		)
Commercial:
Collateralized	5,252		21		4,266		—
Unsecured	202		—		179		—
Asset-based	—		—		—		—
Cash flow	—		—		—		—
Equipment finance	9,818		671		244		—
SBA	3,756		36		2,872		5
Consumer	3,745		2		173		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	60,908	$	244	$	89,741	$	895
Real estate construction	12,722		84		13,942		28
Commercial	43,316		777		14,744		40
Consumer	3,893		4		609		3
Total	$	120,839	$	1,109	$	119,036	$	966

_________________________

(1) For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2014 and 2013, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

24

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

	Nine Months Ended September 30,
	2014				2013
	Weighted Average Balance(1)		Interest Income Recognized		Weighted Average Balance(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,971	$	60	$	8,770	$	109
SBA	—		—		1,649		23
Other	13,218		376		47,411		481
Real estate construction:
Residential	770		12		391		—
Commercial	539		13		8,541		88
Commercial:
Collateralized	5,167		92		4,467		7
Unsecured	664		18		787		8
Asset-based	268		—		2,377		—
Cash flow	5,232		—		—		—
Equipment finance	1,073		—		—		—
SBA	—		—		1,278		12
Consumer	1,890		11		429		3
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,529	$	—	$	—	$	—
SBA	5,378		38		2,791		—
Other	26,235		240		25,540		410
Real estate construction:
Residential	406		—		435		—
Commercial	8,888		171		5,511		98
Commercial:
Collateralized	2,772		52		8,989		15
Unsecured	264		—		217		—
Asset-based	1,560		—		—		—
Cash flow	58		—		—		—
Equipment finance	7,436		671		244		—
SBA	2,189		36		2,846		5
Consumer	1,417		2		248		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	53,331	$	714	$	86,161	$	1,023
Real estate construction	10,603		196		14,878		186
Commercial	26,683		869		21,205		47
Consumer	3,307		13		677		3
Total	$	93,924	$	1,792	$	122,921	$	1,259

_________________________

(1) For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2014 and 2013, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

25

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Troubled debt restructurings are a result of rate reductions, term extensions, fee concessions, and debt forgiveness or a combination thereof. The following tables present new troubled debt restructurings of Non-PCI loans for the periods indicated:

	Three Months Ended September 30, 2014					Three Months Ended September 30, 2013
Troubled Debt Restructurings:	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Real estate mortgage:
SBA	1	$	64	$	64	—	$	—	$	—
Other	7	10,496		10,496		—	—		—
Commercial:
Collateralized	9	1,507		1,507		8	4,824		4,824
Unsecured	3	173		173		2	499		499
Asset-based	—	—		—		1	17		17
SBA	2	1,313		1,313		—	—		—
Consumer	3	183		183		—	—		—
Total	25	$	13,736	$	13,736	11	$	5,340	$	5,340

	Nine Months Ended September 30, 2014					Nine Months Ended September 30, 2013
Troubled Debt Restructurings:	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars In thousands)
Real estate mortgage:
SBA	1	$	64	$	64	—	$	—	$	—
Other	15	14,352		14,352		12	16,215		16,215
Real estate construction - Commercial	2	4,920		4,920		—	—		—
Commercial:
Collateralized	15	4,853		4,853		7	4,553		4,553
Unsecured	5	211		211		5	502		502
Asset-based	—	—		—		1	2,032		2,032
SBA	2	1,313		1,313		4	137		137
Consumer	4	307		307		—	—		—
Total	44	$	26,020	$	26,020	29	$	23,439	$	23,439

26

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated:

	Three Months Ended September 30,
	2014				2013
Troubled Debt Restructurings	Number of	Recorded			Number of	Recorded
That Subsequently Defaulted:	Loans	Investment(1)			Loans	Investment(1)
	(Dollars in thousands)
Real estate construction - Commercial	1	$	1,190		—	$	—
Commercial - Unsecured	2	37			2	70
Total	3	$	1,227	(2)	2	$	70	(3)

_________________________

(1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.

(2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million.

(3) Represents the balance at September 30, 2013 and there were no charge-offs.

	Nine Months Ended September 30,
	2014				2013
Troubled Debt Restructurings	Number of	Recorded			Number of	Recorded
That Subsequently Defaulted:	Loans	Investment(1)			Loans	Investment(1)
	(Dollars in thousands)
Real estate mortgage - Other	—	$	—		1	$	1,327
Real estate construction - Commercial	1	1,190			—	—
Commercial:
Collateralized	1	22			1	427
Unsecured	2	37			2	70
Consumer	1	109			—	—
Total	5	$	1,358	(2)	4	$	1,824	(3)

_________________________

(1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.

(2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million

(3) Represents the balance at September 30, 2013, and is net of charge-offs of $1.1 million

Purchased Credit Impaired (PCI) Loans

The following table reflects the PCI loans by portfolio segment as of the dates indicated:

	September 30, 2014			December 31, 2013
	(In thousands)
Real estate mortgage	$	356,151		$	412,791
Real estate construction	8,506			12,015
Commercial	28,532			3,021
Consumer	402			424
Total gross PCI loans	393,591			428,251
Less:
Discount	(42,212		)	(45,455		)
Allowance for loan losses	(18,815		)	(21,793		)
Total net PCI loans	$	332,564		$	361,003

27

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table summarizes the changes in the carrying amount of PCI loans and accretable yield on those loans for the period indicated:

	Carrying Amount			Accretable Yield
	(In thousands)
Balance, December 31, 2013	$	361,003		$	(139,568	)
Addition	79,234			(13,728		)
Accretion	45,919			45,919
Payments received	(151,910		)	—
Decrease in expected cash flows, net	—			(12,435		)
Provision for credit losses	(1,682		)	—
Balance, September 30, 2014	$	332,564		$	(119,812	)

The following table presents the credit risk rating categories for PCI loans by portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful.

	September 30, 2014						December 31, 2013
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage	$	180,763	$	134,108	$	314,871	$	216,092	$	155,042	$	371,134
Real estate construction	1,921		6,282		8,203		4,399		6,028		10,427
Commercial	232		27,730		27,962		569		405		974
Consumer	—		343		343		—		261		261
Total PCI loans	$	182,916	$	168,463	$	351,379	$	221,060	$	161,736	$	382,796

In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations.

Note 7.  Foreclosed Assets

The following tables summarize foreclosed assets at the dates indicated:

Property Type:	September 30, 2014		December 31, 2013
	(In thousands)
Commercial real estate	$	2,559	$	15,753
Construction and land development	27,731		35,063
Multi‑family	835		835
Single family residence	13		186
Total other real estate owned, net	31,138		51,837
Other foreclosed assets	9,386		4,054
Total foreclosed assets	$	40,524	$	55,891

28

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents a rollforward of foreclosed assets, net of the valuation allowance, for the periods indicated:

	Foreclosed Assets
	(In thousands)
Balance, December 31, 2013	$	55,891
Addition from the CapitalSource Inc. merger	6,382
Foreclosures	667
Provision for losses	(5,065		)
Reductions related to sales	(17,351		)
Balance, September 30, 2014	$	40,524

Note 8.  FDIC Loss Sharing Asset

We are a party to four loss sharing agreements with the FDIC. Such agreements cover a substantial portion of losses incurred on acquired covered loans and other real estate owned. The loss sharing agreements relate to the acquisitions of: (1) Affinity Bank ("Affinity") in August 2009, (2) Los Padres Bank ("Los Padres") in August 2010, (3) Western Commercial Bank ("Western Commercial") in connection with the May 2013 FCAL acquisition, and (4) San Luis Trust Bank ("San Luis") in connection with the May 2013 FCAL acquisition. Generally, under the terms of the loss sharing agreements, the FDIC is responsible for 80% of losses in connection with covered assets and is entitled to receive 80% of loss recoveries on the covered assets during the applicable contractual periods. The loss sharing provisions for the Affinity Bank non-single family covered assets expired in the third quarter of 2014; accordingly, further activity will be limited to recoveries through the third quarter of 2017 for assets covered by this loss sharing agreement.

The following table presents the changes in the FDIC loss sharing asset for the period indicated:

	FDIC Loss Sharing Asset
	(In thousands)
Balance, December 31, 2013	$	45,524
FDIC share of additional losses, net of recoveries	(4,654		)
Cash paid to the FDIC	3,363
Net amortization	(21,256		)
Balance, September 30, 2014	$	22,977

The following table presents information about the composition of the FDIC loss sharing asset, the true‑up liability, and the non‑single family and the single family covered assets as of the date indicated:

	September 30, 2014
	Affinity Bank			Los Padres Bank		Western Commercial Bank		San Luis Trust Bank		Total
	(In thousands)
FDIC loss sharing asset	$	(819	)	$	13,283	$	1,432	$	9,081	$	22,977
True‑up liability	N/A			N/A		$	1,574	$	5,350	$	6,924
Non-single family covered assets	$	142,454		$	92,440	$	13,746	$	30,670	$	279,310
Single family covered assets	$	12,536		$	64,131	N/A		$	31,302	$	107,969
Loss sharing expiration dates:
Non‑single family	3rd Quarter 2014			3rd Quarter 2015		4th Quarter 2015		1st Quarter 2016
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021
Loss recovery expiration dates:
Non‑single family	3rd Quarter 2017			3rd Quarter 2018		4th Quarter 2018		1st Quarter 2019
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021

29

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 9. Borrowings, Subordinated Debentures and Brokered Deposits

Borrowings

The following table summarizes our borrowings as of the dates indicated:

	September 30, 2014				December 31, 2013
	Amount		Rate		Amount		Rate
	(Dollars in thousands)
Non‑recourse debt	$	3,672	6.26	%	$	7,126	6.30	%
FHLB overnight advances	360,000		0.07	%	106,600		0.06	%
Total borrowings	$	363,672			$	113,726

The non‑recourse debt represents the payment stream of certain equipment leases sold to third parties. The debt is secured by the equipment in the leases and all interest rates are fixed. As of September 30, 2014, this debt had a weighted average remaining maturity of 2.2 years.

The Bank has established secured and unsecured lines of credit. We may borrow funds from time to time on a term or overnight basis from the FHLB SF, the Federal Reserve Bank of San Francisco (“FRBSF”), or other financial institutions.

FHLB SF Secured Lines of Credit. The borrowing arrangement with the FHLB SF is based on an FHLB program collateralized by a blanket lien on certain qualifying loans in our loan portfolio which were not pledged to the FRBSF. As of September 30, 2014, our borrowing capacity under the FHLB SF secured borrowing lines was $2.4 billion. As of September 30, 2014 and December 31, 2013, the balances outstanding were $360.0 million and $106.6 million, respectively.

FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of September 30, 2014, the Bank had secured borrowing capacity of $1.0 billion collateralized by liens covering $1.4 billion of certain qualifying loans. As of September 30, 2014 and December 31, 2013, there were no balances outstanding.

Federal Funds Arrangements with Commercial Banks. As of September 30, 2014, the Bank had unsecured lines of credit of $80.0 million with correspondent banks for the purchase of overnight funds, subject to availability of funds. These lines are renewable annually and have no unused commitment fees. As of September 30, 2014 and December 31, 2013, there were no balances outstanding.

30

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table summarizes the terms of each issuance of subordinated debentures outstanding as of the dates indicated:

	September 30, 2014					December 31, 2013
											Date	Maturity	Rate Index
Series	Amount			Rate (1)		Amount			Rate (2)		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Trust V	$	10,310		3.33	%	$	10,310		3.34	%	8/15/2003	9/17/2033	3 month LIBOR + 3.10
Trust VI	10,310			3.28	%	10,310			3.29	%	9/3/2003	9/15/2033	3 month LIBOR + 3.05
Trust CII	5,155			3.18	%	5,155			3.19	%	9/17/2003	9/17/2033	3 month LIBOR + 2.95
Trust VII	61,856			2.99	%	61,856			2.99	%	2/5/2004	4/23/2034	3 month LIBOR + 2.75
Trust CIII	20,619			1.92	%	20,619			1.93	%	8/15/2005	9/15/2035	3 month LIBOR + 1.69
Trust FCCI	16,495			1.83	%	16,495			1.84	%	1/25/2007	3/15/2037	3 month LIBOR + 1.60
Trust FCBI	10,310			1.78	%	10,310			1.79	%	9/30/2005	12/15/2035	3 month LIBOR + 1.55
Trust CS 2005-1 (3)	82,475			2.18	%	—			—		11/21/2005	12/15/2035	3 month LIBOR + 1.95
Trust CS 2005-2 (3)	128,866			2.19	%	—			—		12/14/2005	1/30/2036	3 month LIBOR + 1.95
Trust CS 2006-1 (3)	51,545			2.19	%	—			—		2/22/2006	4/30/2036	3 month LIBOR + 1.95
Trust CS 2006-2 (3)	51,550			2.19	%	—			—		9/27/2006	10/30/2036	3 month LIBOR + 1.95
Trust CS 2006-3 (3)	32,551			1.29	%	—			—		9/29/2006	10/30/2036	3 month EURIBOR + 2.05
Trust CS 2006-4 (3)	16,470			2.19	%	—			—		12/5/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2006-5 (3)	6,650			2.19	%	—			—		12/19/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2007-2 (3)	39,177			2.19	%	—			—		6/13/2007	7/30/2037	3 month LIBOR + 1.95
Gross subordinated debentures	544,339					135,055
Unamortized discount (4)	(110,794		)			(2,410		)
Net subordinated debentures	$	433,545				$	132,645

___________________

(1) As of September 30, 2014.

(2) As of January 28, 2014.

(3) Acquired in the CapitalSource Inc. merger.

(4) Amount represents the fair value adjustment on trust preferred securities assumed in the CapitalSource Inc. and FCAL acquisitions.

Interest payments made by the Company on subordinated debentures are considered dividend payments under the Board of Governors of the Federal Reserve System (“FRB”) regulations. Bank holding companies, such as PacWest, are required to notify the FRB prior to declaring and paying a dividend to stockholders during any period in which quarterly and/or cumulative twelve‑month net earnings are insufficient to fund the dividend amount, among other requirements.

Brokered Deposits

Brokered time deposits totaled $288.2 million and $49.4 million at September 30, 2014 and December 31, 2013, respectively. During the third quarter, the Company added $200.0 million of brokered time deposits. Brokered time deposits under the Certificate of Deposit Account Registry Service Program ("CDARS Program") totaled $48.2 million and $49.4 million at September 30, 2014 and December 31, 2013, respectively. The CDARS Program represents deposits that are participated with other FDIC‑insured financial institutions as a means to provide FDIC deposit insurance coverage for the full amount of our customers’ deposits.

Note 10. Commitments and Contingencies

Lending Commitments

The Bank is a party to financial instruments with off‑balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, and commitments to purchase equipment being acquired for lease to others. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the condensed consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

31

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents a summary of the financial instruments described above as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Loan commitments to extend credit	$	1,818,694	$	1,001,740
Standby letters of credit	82,207		39,200
Commitments to purchase equipment being acquired for lease to others	6,199		8,475
	$	1,907,100	$	1,049,415

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. We provide standby letters of credit in conjunction with several of our lending arrangements and property lease obligations. Most guarantees expire within one year from the date of issuance. If a borrower defaults on its commitments subject to any letter of credit issued under these arrangements, we would be required to meet the borrower's financial obligation but would seek repayment of that financial obligation from the borrower. In some cases, borrowers have pledged cash and investment securities as collateral with us under these arrangements.

In addition, the Company has investments in low income housing project partnerships, which provide the Company income tax credits, and in a few small business investment companies. The investments call for capital contributions up to an amount specified in the partnership agreements. As of September 30, 2014 and December 31, 2013, the Company had commitments to contribute capital to these entities totaling $12.9 million and $11.0 million, respectively. In connection with equity investments added from the CapitalSource Inc. merger, we have committed to contribute up to an additional $2.5 million to 11 private equity funds.

Legal Matters

In the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, in addition to amounts already accrued, would not have a material adverse effect on the Company’s financial statements or operations.

Note 11. Fair Value Measurements

We use fair value to measure certain assets on a recurring basis, primarily securities available‑for‑sale; we have no liabilities being measured at fair value. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for impaired loans and other real estate owned and also to record impairment on certain assets, such as goodwill, core deposit intangibles, and other long‑lived assets.

32

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents information on the assets measured and recorded at fair value on a recurring basis as of September 30, 2014:

	Fair Value Measurements as of
	September 30, 2014
Measured on a Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Government agency and government‑sponsored enterprise
pass through securities	$	555,087	$	—	$	555,087	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	279,791		—		279,791		—
Covered private label CMOs	35,309		—		—		35,309
Other private label CMOs	12,593		—		12,593		—
Municipal securities	482,427		—		482,427		—
Corporate debt securities	112,143		—		112,143		—
Government‑sponsored enterprise debt securities	36,382		—		36,382		—
Other securities	25,949		514		25,435		—
Total	$	1,539,681	$	514	$	1,503,858	$	35,309

There were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a recurring basis during the three and nine months endedSeptember 30, 2014.

The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third party pricing service for our Level 3 covered private label CMOs measured at fair value on a recurring basis as of September 30, 2014:

	Covered Private Label CMOs
Unobservable Inputs:	Range of Inputs	Weighted Average Input
Voluntary annual prepayment speeds	0% - 34.2%	10.2%
Annual default rates	0% - 9.7%	3.2%
Loss severity rates	0% - 65.2%	40.9%
Discount rates	0% - 7.1%	4.9%

The following table summarizes activity for assets measured at fair value on a recurring basis that are categorized as Level 3 for the period indicated:

	Covered Private Label CMOs (Level 3)
	(In thousands)
Balance, December 31, 2013	$	37,904
Total realized in earnings	862
Total unrealized gain in comprehensive income	76
Net settlements	(3,533		)
Balance, September 30, 2014	$	35,309

33

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following tables present assets measured at fair value on a non‑recurring basis as of the date indicated and the losses recognized on such assets for the period indicated:

	Fair Value Measurement as of								Gain (Loss)
	September 30, 2014								Three Months Ended			Nine Months Ended
	Total		Level 1		Level 2		Level 3		September 30, 2014
Measured on a Non‑Recurring Basis:	(In thousands)
Impaired Non‑PCI loans	$	42,728	$	—	$	2,366	$	40,362	$	(1,374	)	$	(10,205	)
Other real estate owned	28,011		—		26,352		1,659		(4,863		)	(4,863		)
Total non-recurring	$	70,739	$	—	$	28,718	$	42,021	$	(6,237	)	$	(15,068	)

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2014:

Asset	Fair Value (In thousands)		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Impaired Non-PCI loans	$	36,306	Discounted cash flows	Discount rates	0% - 10.46%	6.87%
	$	4,056	Appraisals	No discounts
OREO	$	1,659	Appraisals	Discount, including selling costs	11.19% - 62.61%	39.98%

ASC Topic 825, “Financial Instruments,” requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements.

The following tables present a summary of the carrying values and estimated fair values of certain financial instruments as of the dates indicated:

	September 30, 2014
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	145,463	$	145,463	$	145,463	$	—	$	—
Interest‑earning deposits in financial institutions	115,399		115,399		115,399		—		—
Securities available‑for‑sale	1,539,681		1,539,681		514		1,503,858		35,309
Investment in FHLB stock	45,602		45,602		—		45,602		—
Loans and leases, net	11,492,986		11,396,792		—		2,366		11,394,426
Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	6,006,958		6,006,958		—		6,006,958		—
Time deposits	5,516,479		5,524,373		—		5,524,373		—
Borrowings	363,672		363,804		360,000		3,804		—
Subordinated debentures	433,545		417,349		—		417,349		—

34

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

	December 31, 2013
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	96,424	$	96,424	$	96,424	$	—	$	—
Interest‑earning deposits in financial institutions	50,998		50,998		50,998		—		—
Securities available‑for‑sale	1,494,745		1,494,745		507		1,456,334		37,904
Investment in FHLB stock	27,939		27,939		—		27,939		—
Loans and leases, net	4,230,318		4,231,078		—		2,051		4,229,027
SBA loan servicing asset	807		807		—		—		807
Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	4,616,616		4,616,616		—		4,616,616		—
Time deposits	664,371		665,148		—		665,148		—
Borrowings	113,726		113,726		106,600		7,126		—
Subordinated debentures	132,645		132,498		—		132,498		—

The following is a description of the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820, “Fair Value Measurement”) and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825).

Cash and due from banks. The carrying amount is assumed to be the fair value because of the liquidity of these instruments.

Interest‑earning deposits in financial institutions. The carrying amount is assumed to be the fair value given the short‑term nature of these deposits.

Securities available‑for‑sale. Securities available‑for‑sale are measured and carried at fair value on a recurring basis. Unrealized gains and losses on available‑for‑sale securities are reported as a component of “Accumulated other comprehensive income” in the condensed consolidated balance sheets. See Note 5, Investment Securities, for further information on unrealized gains and losses on securities available‑for‑sale.

Fair value for securities categorized as Level 1, which are publicly traded securities, are based on readily available quoted prices. In determining the fair value of the securities categorized as Level 2, we obtain a report from a nationally recognized broker‑dealer detailing the fair value of each investment security we hold as of each reporting date. The broker‑dealer uses observable market information to value our securities, with the primary source being a nationally recognized pricing service. We review the market prices provided by the broker‑dealer for our securities for reasonableness based on our understanding of the marketplace and we consider any credit issues related to the securities. As we have not made any adjustments to the market quotes provided to us and they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy.

Our covered private label CMOs are categorized as Level 3 due in part to the inactive market for such securities. There is a wide range of prices quoted for private label CMOs among independent third party pricing services and this range reflects the significant judgment being exercised over the assumptions and variables that determine the pricing of such securities. We consider this subjectivity to be a significant unobservable input and have concluded that the covered private label CMOs should be categorized as a Level 3 measured asset. Our fair value estimate was based on prices provided to us by a nationally recognized pricing service which we also use to determine the fair value of the majority of our securities portfolio. We determined the reasonableness of the fair values by reviewing assumptions at the individual security level about prepayment, default expectations, estimated severity loss factors, and discount rates, all of which are not directly observable in the market. Significant changes in default expectations, severity loss factors, or discount rates, which occur all together or in isolation, would result in different fair value measurements.

FHLB stock. Investments in FHLB stock are recorded at cost and measured for impairment quarterly. Ownership of FHLB stock is restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB stock is equal to the carrying amount.

35

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Impaired Non‑PCI loans. Nonaccrual loans and performing restructured loans are considered impaired for reporting purposes and are measured and recorded at fair value on a non‑recurring basis. Nonaccrual Non‑PCI loans with an unpaid principal balance over $250,000 and all performing restructured loans are reviewed individually for the amount of impairment, if any. Nonaccrual Non‑PCI loans with an unpaid principal balance less than $250,000 are not individually assessed for impairment but are instead reserved for under our general reserve component.

To the extent a loan is collateral dependent, we measure such impaired loan based on the estimated fair value of the underlying collateral. The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral; such valuation inputs result in a nonrecurring fair value measurement that is categorized as a Level 2 measurement. The Level 2 measurement is based on appraisals obtained within the last 12 months and for which a charge‑off was recognized or a change in the specific valuation allowance was made during the nine months endedSeptember 30, 2014.

When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. The impaired loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, including an SBA government guarantee, cash flows discounted at the effective loan rate, and management’s judgment.

The impaired Non‑PCI loan balances shown above as measured on a non-recurring basis represent those nonaccrual and restructured loans for which impairment was recognized during the nine months endedSeptember 30, 2014. The amounts shown as net losses include the impairment recognized during the nine months endedSeptember 30, 2014, for the loan balances shown. Of the $88.9 million of nonaccrual Non-PCI loans at September 30, 2014, $2.6 million were written down to their collateral fair values through charge‑offs during the nine months endedSeptember 30, 2014.

Other real estate owned ("OREO"). The fair value of foreclosed real estate is generally based on estimated market prices from independently prepared current appraisals or negotiated sales prices with potential buyers, less estimated costs to sell; such valuation inputs result in a fair value measurement that is categorized as a Level 2 measurement on a nonrecurring basis. As a matter of policy, appraisals are required annually and may be updated more frequently as circumstances require in the opinion of management. The Level 2 measurement for OREO is based on appraisals obtained within the last 12 months and for which a write‑down was recognized during the nine months endedSeptember 30, 2014.

When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. The OREO losses disclosed are write‑downs based on either a recent appraisal obtained after foreclosure or an accepted purchase offer by an independent third party received after foreclosure.

Deposits. Deposits are carried at historical cost. The fair value of deposits with no stated maturity, such as noninterest‑bearing demand deposits, interest checking, money market, and savings accounts, is equal to the amount payable on demand as of the balance sheet date and considered Level 2. The fair value of time deposits is based on the discounted value of contractual cash flows and considered Level 2. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. No value has been separately assigned to the Company’s long‑term relationships with its deposit customers, such as a core deposit intangible.

Borrowings. Borrowings include overnight FHLB advances and other fixed‑rate term borrowings. Borrowings are carried at amortized cost. The fair value of overnight FHLB advances is equal to the carrying value and considered Level 1. The fair value of fixed‑rate borrowings is calculated by discounting scheduled cash flows through the estimated maturity dates or call dates, if applicable, using estimated market discount rates that reflect current rates offered for borrowings with similar remaining maturities and characteristics and are considered Level 2.

Subordinated debentures. Subordinated debentures are carried at amortized cost. The fair value of subordinated debentures with variable rates is determined using a market discount rate on the expected cash flows.

Commitments to extend credit. The majority of our commitments to extend credit carry current market interest rates if converted to loans. Because these commitments are generally unassignable by either the borrower or us, they only have value to the borrower and us. The estimated fair value approximates the recorded deferred fee amounts and is excluded from the table above because it is not material.

36

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

Limitations

Fair value estimates are made at a specific point in time and are based on relevant market information and information about the financial instrument. These estimates do not reflect income taxes or any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on what management believes to be conservative judgments regarding expected future cash flows, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimated fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Since the fair values have been estimated as of September 30, 2014, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different.

Note 12. Earnings Per Share

The computations of basic and diluted net earnings per share for the periods indicated were as follows:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands, except per share data)
Basic earnings per share:
Net earnings from continuing operations	$	62,276		$	11,230		$	24,140		$	99,411		$	42,030
Less: earnings allocated to unvested restricted stock(1)	(685		)	(290		)	(786		)	(1,147		)	(1,137		)
Net earnings from continuing operations allocated to common shares	61,591			10,940			23,354			98,264			40,893
Net (loss) earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares and unvested restricted stock outstanding	103,029			98,817			46,091			82,758			41,306
Less: weighted-average unvested restricted stock outstanding	(1,117		)	(678		)	(1,795		)	(981		)	(1,663		)
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Basic earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net loss from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03
Diluted earnings per share:
Net earnings from continuing operations allocated to common shares	$	61,591		$	10,940		$	23,354		$	98,264		$	40,893
Net (loss) earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Diluted earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net loss from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03

________________________

(1) Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

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Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 13. Stock Based Compensation

The Company’s 2003 Stock Incentive Plan, or the 2003 Plan, permits stock-based compensation awards to officers, directors, key employees and consultants. As of September 30, 2014, the 2003 Plan authorized grants of stock‑based compensation instruments to purchase or issue up to 19,686,565 shares of Company common stock, subject to adjustments provided by the 2003 Plan. The authorized amount includes 10,686,565 shares that were added to the 2003 Plan as a result of the CapitalSource Inc. merger. Such shares were available for grant under the former CapitalSource Inc. Equity Incentive Plan and remain available for: (a) former employees of CapitalSource Inc. and CapitalSource Bank who remain employed with the Company, and (b) newly hired employees of the Company. As of September 30, 2014, there were 13,524,674 shares available for grant under the 2003 Plan, which includes 10,682,069 shares related to those added from the CapitalSource Inc. merger.

Restricted Stock

At September 30, 2014, there were 1,115,550 shares of unvested time‑based restricted common stock outstanding. The awarded shares of time‑based restricted common stock vest over a service period of three to four years from the date of the grant. The time-based restricted common stock vests immediately upon a change in control of the Company, as defined in the 2003 Plan, and upon death of the employee. In April 2014, upon closing of the CapitalSource Inc. merger, 1,013,377 awarded shares of restricted common stock vested due to the triggering of the change of control provision contained within the 2003 Plan. We recorded a $26.1 million charge to earnings for the vesting of such shares. Such amount is included in acquisition, integration and reorganization costs on the accompanying condensed consolidated statements of earnings in the second quarter of 2014.

Compensation expense related to time‑based restricted stock awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight‑line method. Restricted stock amortization totaled $2.9 million, $2.4 million, and $2.4 million for the three months endedSeptember 30, 2014, June 30, 2014, and September 30, 2013, respectively, and $6.9 million and $6.1 million for the nine months endedSeptember 30, 2014 and 2013, respectively. Such amounts are included in compensation expense on the accompanying condensed consolidated statements of earnings.

The amount of unrecognized compensation expense related to all unvested restricted stock as of September 30, 2014 totaled $39.2 million.

Note 14. Business Segments

The Company’s reportable segments consist of “Community Banking,” “National Lending,” and “Other.”

As a result of the CapitalSource Inc. merger, Pacific Western Bank established the CapitalSource Division, which we also refer to as the National Lending segment. The CapitalSource Division, or National Lending segment, includes the lending operations gained through the CapitalSource Inc. merger, Pacific Western Equipment Finance, and the CapitalSource Business Finance Group (formerly BFI Business Finance and First Community Financial). We reorganized our asset-based lending and leasing operations when we established the CapitalSource Division combining BFI Business Finance and First Community Financial into the Capital Source Business Finance Group, selling Celtic Capital Corporation in July 2014, and having Pacific Western Equipment Finance and the Capital Source Business Finance Group become part of the CapitalSource Division. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses, including senior secured real estate loans, equipment loans and leases, asset-based loans, lender finance loans and cash flow loans secured by the enterprise value of the borrowing entity. The CapitalSource Division’s loan and lease origination efforts are conducted through offices located in Chevy Chase, Maryland; Los Angeles and San Jose, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; New York, New York; and Midvale, Utah.

The Community Banking and National Lending segments include all of the operations of Pacific Western Bank. The Community Banking segment includes the operations of Pacific Western Bank, excluding the CapitalSource Division, and includes lending and deposit gathering activities conducted primarily through its California-based branch offices and the Bank’s treasury management function and corporate overhead. The Other segment consists of holding company operations which result in expenses principally for compensation, facilities, professional services, interest on subordinated debentures, and the non-bank subsidiary operations including interest income from a loan portfolio and related loan servicing expense.

The accounting policies of the reported segments are the same as those of the Company described in Note 1, “Nature of Operations and Summary of Significant Accounting Policies,” of our Form 10‑K. Transactions between segments consist primarily of borrowed funds and expense allocations for interest, deposit gathering, corporate overhead and credit loss provisions. Intersegment interest expense is allocated from the Community Banking segment to the National Lending segment based upon National Lending’s average interest-earning assets and operating leases, net of a capital allocation, and the Bank’s total cost of deposits. The Community Banking segment further allocates to the National Lending segment noninterest expense for deposit

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Notes to Condensed Consolidated Financial Statements (Unaudited)

gathering and maintenance costs and the Bank’s corporate overhead. The provision for credit losses is allocated based on actual charge‑offs for the period as well as net portfolio growth and credit quality trends. All costs associated with investing the Bank’s excess liquidity and acquisition, integration, and reorganization costs are housed in the Community Banking segment. The lending and loan servicing activities are housed in our respective segments. Noninterest income and noninterest expense directly attributable to a segment are assigned to it.

The following tables present information regarding our business segments as of and for the periods indicated:

	September 30, 2014
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,482,125		$	8,064,868		$	27,892		$	11,574,885
Allowance for loan and lease losses	(56,712		)	(25,187		)	—			(81,899		)
Total loans and leases, net	$	3,425,413		$	8,039,681		$	27,892		$	11,492,986
Goodwill	$	327,728		$	1,394,401		$	—		$	1,722,129
Core deposit and customer relationship intangibles, net	17,814			1,009			—			18,823
Total assets	6,492,869			9,182,617			262,859			15,938,345
Total deposits(1)	11,826,681			—			(303,244		)	11,523,437

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	September 30, 2013
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,912,885		$	470,508		$	—		$	4,383,393
Allowance for loan and lease losses	(76,496		)	(7,290		)	—			(83,786		)
Total loans and leases, net	$	3,836,389		$	463,218		$	—		$	4,299,607
Goodwill	$	190,184		$	25,678		$	—		$	215,862
Core deposit and customer relationship intangibles, net	16,604			2,074			—			18,678
Total assets	6,100,587			507,339			8,929			6,616,855
Total deposits(1)	5,467,568			—			(34,424		)	5,433,144

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

39

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Notes to Condensed Consolidated Financial Statements (Unaudited)

	Three Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	67,132		$	134,624		$	600		$	202,356
Interest expense	(8,851		)	(45		)	(4,614		)	(13,510		)
Intersegment interest income (expense)	5,250			(5,250		)	—			—
Net interest income (expense)	63,531			129,329			(4,014		)	188,846
Negative provision (provision) for credit losses	6,314			(11,364		)	—			(5,050		)
Gain on securities	—			—			—			—
FDIC loss sharing expense	(7,415		)	—			—			(7,415		)
Other noninterest income	7,566			9,953			6,210			23,729
Total noninterest income	151			9,953			6,210			16,314
Foreclosed assets (expense) income, net	(4,627		)	(322		)	122			(4,827		)
Intangible asset amortization	(1,517		)	(91		)	—			(1,608		)
Acquisition, integration and reorganization costs	(3,953		)	(1,240		)	—			(5,193		)
Other noninterest expense	(53,784		)	(24,835		)	(5,382		)	(84,001		)
Total noninterest expense	(63,881		)	(26,488		)	(5,260		)	(95,629		)
Intersegment noninterest income (expense)	26,411			(26,411		)	—			—
Total noninterest expense - adjusted	(37,470		)	(52,899		)	(5,260		)	(95,629		)
Earnings (loss) from continuing operations before taxes	32,526			75,019			(3,064		)	104,481
Income tax (expense) benefit	(13,870		)	(30,113		)	1,778			(42,205		)
Net earnings (loss) from continuing operations	18,656			44,906			(1,286		)	62,276
Loss from discontinued operations before taxes	(8		)	—			—			(8		)
Income tax benefit	3			—			—			3
Net loss from discontinued operations	(5		)	—			—			(5		)
Net earnings (loss)	$	18,651		$	44,906		$	(1,286	)	$	62,271

40

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

	Three Months Ended June 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	69,977		$	132,742		$	1,644		$	204,363
Interest expense	(7,450		)	(62		)	(4,318		)	(11,830		)
Intersegment interest income (expense)	4,071			(4,071		)	—			—
Net interest income	66,598			128,609			(2,674		)	192,533
Negative provision (provision) for credit losses	4,418			(9,448		)	—			(5,030		)
Gain on securities	89			—			—			89
FDIC loss sharing expense	(8,525		)	—			—			(8,525		)
Other noninterest income	3,681			12,487			747			16,915
Total noninterest income	(4,755		)	12,487			747			8,479
Foreclosed assets (expense) income, net	(633		)	38			98			(497		)
Intangible asset amortization	(1,530		)	(147		)	—			(1,677		)
Acquisition, integration and reorganization costs	(77,713		)	(7,474		)	(1,055		)	(86,242		)
Other noninterest expense	(51,507		)	(24,484		)	(5,499		)	(81,490		)
Total noninterest expense	(131,383		)	(32,067		)	(6,456		)	(169,906		)
Intersegment noninterest income (expense)	23,533			(23,533		)	—			—
Total noninterest expense - adjusted	(107,850		)	(55,600		)	(6,456		)	(169,906		)
(Loss) earnings from continuing operations before taxes	(41,589		)	76,048			(8,383		)	26,076
Income tax benefit (expense)	12,081			(30,259		)	3,332			(14,846		)
Net (loss) earnings from continuing operations	(29,508		)	45,789			(5,051		)	11,230
Loss from discontinued operations before taxes	(1,151		)	—			—			(1,151		)
Income tax benefit	476			—			—			476
Net loss from discontinued operations	(675		)	—			—			(675		)
Net (loss) earnings	$	(30,183	)	$	45,789		$	(5,051	)	$	10,555

41

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Notes to Condensed Consolidated Financial Statements (Unaudited)

	Three Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	72,873		$	12,285		$	—		$	85,158
Interest expense	(1,692		)	(108		)	(1,069		)	(2,869		)
Intersegment interest income (expense)	353			(353		)	—			—
Net interest income	71,534			11,824			(1,069		)	82,289
Negative provision (provision) for credit losses	5,782			(1,615		)	—			4,167
FDIC loss sharing expense	(7,032		)	—			—			(7,032		)
Other noninterest income	5,466			1,443			5,250			12,159
Total noninterest income	(1,566		)	1,443			5,250			5,127
Foreclosed assets income, net	420			—			—			420
Intangible asset amortization	(1,354		)	(158		)	—			(1,512		)
Acquisition, integration and reorganization costs	(5,190		)	—			(260		)	(5,450		)
Other noninterest expense	(42,435		)	(5,822		)	(1,401		)	(49,658		)
Total noninterest expense	(48,559		)	(5,980		)	(1,661		)	(56,200		)
Earnings (loss) from continuing operations before taxes	27,191			5,672			2,520			35,383
Income tax (expense) benefit	(9,996		)	(2,378		)	1,131			(11,243		)
Net earnings (loss) from continuing operations	17,195			3,294			3,651			24,140
Earnings from discontinued operations before taxes	39			—			—			39
Income tax expense	(16		)	—			—			(16		)
Net earnings from discontinued operations	23			—			—			23
Net earnings	$	17,218		$	3,294		$	3,651		$	24,163

42

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Notes to Condensed Consolidated Financial Statements (Unaudited)

	Nine Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	214,704		$	278,131		$	2,244		$	495,079
Interest expense	(17,528		)	(184		)	(9,973		)	(27,685		)
Intersegment interest income (expense)	9,543			(9,543		)	—			—
Net interest income (expense)	206,719			268,404			(7,729		)	467,394
Negative provision (provision) for credit losses	11,558			(20,994		)	—			(9,436		)
Gain on securities	4,841			—			—			4,841
FDIC loss sharing expense	(27,370		)	—			—			(27,370		)
Other noninterest income	18,144			26,885			6,984			52,013
Total noninterest income	(4,385		)	26,885			6,984			29,484
Foreclosed assets (expense) income, net	(3,399		)	(284		)	220			(3,463		)
Intangible asset amortization	(4,238		)	(411		)	—			(4,649		)
Acquisition, integration and reorganization costs	(83,866		)	(8,714		)	(1,055		)	(93,635		)
Other noninterest expense	(146,281		)	(55,892		)	(12,484		)	(214,657		)
Total noninterest expense	(237,784		)	(65,301		)	(13,319		)	(316,404		)
Intersegment noninterest income (expense)	49,944			(49,944		)	—			—
Total noninterest expense - adjusted	(187,840		)	(115,245		)	(13,319		)	(316,404		)
Earnings from continuing operations before taxes	26,052			159,050			(14,064		)	171,038
Income tax (expense) benefit	(14,123		)	(63,703		)	6,199			(71,627		)
Net earnings (loss) from continuing operations	11,929			95,347			(7,865		)	99,411
Loss from discontinued operations before taxes	(2,572		)	—			—			(2,572		)
Income tax benefit	1,067			—			—			1,067
Net loss from discontinued operations	(1,505		)	—			—			(1,505		)
Net earnings (loss)	$	10,424		$	95,347		$	(7,865	)	$	97,906

43

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Notes to Condensed Consolidated Financial Statements (Unaudited)

	Nine Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	189,101		$	36,957		$	—		$	226,058
Interest expense	(6,422		)	(447		)	(2,734		)	(9,603		)
Intersegment interest income (expense)	1,284			(1,284		)	—			—
Net interest income	183,963			35,226			(2,734		)	216,455
Negative provision (provision) for credit losses	6,053			(3,181		)	—			2,872
Gain on securities	5,631			—			—			5,631
FDIC loss sharing expense	(15,579		)	—			—			(15,579		)
Other noninterest income	10,240			2,579			5,299			18,118
Total noninterest income	292			2,579			5,299			8,170
Foreclosed assets income, net	934			—			—			934
Intangible asset amortization	(3,474		)	(498		)	—			(3,972		)
Acquisition, integration and reorganization costs	(23,879		)	—			(260		)	(24,139		)
Other noninterest expense	(115,352		)	(17,855		)	(4,215		)	(137,422		)
Total noninterest expense	(141,771		)	(18,353		)	(4,475		)	(164,599		)
Earnings (loss) from continuing operations before taxes	48,537			16,271			(1,910		)	62,898
Income tax (expense) benefit	(17,038		)	(6,814		)	2,984			(20,868		)
Net earnings from continuing operations	31,499			9,457			1,074			42,030
Loss from discontinued operations before taxes	(42		)	—			—			(42		)
Income tax benefit	18			—			—			18
Net loss from discontinued operations	(24		)	—			—			(24		)
Net earnings	$	31,475		$	9,457		$	1,074		$	42,006

Note 15. Related Party Transactions

In connection with the CapitalSource Inc. merger, the Bank paid an advisory fee of $9 million to Castle Creek Financial LLC (“Castle Creek Financial”) during 2014. In connection with the FCAL acquisition, the Bank paid an advisory fee of $1.3 million to Castle Creek Financial during 2013. Castle Creek Financial is an affiliate of Castle Creek Capital LLC, which the Company's Chairman of the Board, Mr. Eggemeyer, is co-founder and chief executive.

Note 16.  Recently Issued Accounting Standards

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014‑01, “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” ASU 2014‑01 allows investors in low‑income housing tax credit (“LIHTC”) entities that meet certain conditions to present the net tax benefits (net of the amortization of the cost of the investment) within income tax expense. The cost of the investments that meet the conditions will be amortized in proportion to (and over the same period as) the total expected tax benefits, including tax credits and other tax benefits, as they are realized on the tax return. ASU 2014‑01 is effective for us on January 1, 2015 and is to be applied retrospectively if investors elect the proportional amortization method. However, if investors have LIHTC investments accounted for under the effective yield method at adoption, they may continue to apply that method for those existing investments. The adoption of this standard permits expenses currently reported in noninterest expense to be reported in income tax expense. Early adoption is permitted. The adoption of this standard in January 2015 is not expected to have a material impact on our financial statements, however, total noninterest expense and income tax expense may change.

In January 2014, the FASB issued ASU 2014‑04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310‑40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure.” ASU 2014‑04 clarifies when a creditor should reclassify mortgage loans collateralized by residential real estate from loans receivable to other real estate owned. ASU 2014‑04 defines when an in‑substance repossession or foreclosure has occurred and when a creditor is considered to have received physical possession of residential real estate collateralizing a mortgage loan. ASU 2014‑04 is effective for us on

44

PACWEST BANCORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

January 1, 2015 and can be applied either prospectively or using a modified retrospective transition method, and early adoption is permitted. We do not expect the adoption of this standard in January 2015 to have a material impact on our financial statements.

In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 is an amendment to Subtopic 205-20 that changes the criteria for reporting discontinued operations by raising the threshold for disposals to qualify as discontinued operations. Effectively, this update aims to reduce the unnecessarily frequent reporting of disposals of small groups of assets that are recurring in nature. The revised definition states that a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. ASU 2014-08 is effective for us for all disposals that occur after December 31, 2014. The adoption of this standard is not expected to have a material impact on our financial statements.

ASU 2014-09, "Revenue Recognition (Topic 606): Revenue from Contracts with Customers," was issued May 2014 and will be effective for annual and interim periods beginning after December 15, 2016. Early application is not permitted. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

ASU 2014-12, "Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period," was issued June 2014 and will be effective for annual and interim periods beginning after December 15, 2015. ASU 2014-12 applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide for a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. We do not currently have outstanding performance-based awards and, as a result, ASU 2014-12 would not impact our financial statements and its related disclosures.

In August 2014, the FASB issued ASU 2014-14, "Receivables - Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure." This ASU requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU 2014-14 is effective for public business entities for reporting periods, including interim periods, beginning after December 15, 2014. The Company is evaluating the effect that ASU 2014-14 will have on its financial statements and related disclosures since we have covered loans with loss sharing agreements with the FDIC, pursuant to which we will be reimbursed for a substantial portion of any future losses under the terms and agreements.

Note 17. Subsequent Events

On October 1, 2014, the Company obtained an unsecured, variable-rate revolving line of credit in the amount of $75 million with an expiration date of September 30, 2015.

On November 5, 2014 the Company announced that the Board of Directors had declared a quarterly cash dividend of $0.50 per common share. The cash dividend is payable on November 26, 2014 to stockholders of record at the close of business on November 17, 2014.

On November 5, 2014, the Board of Directors of the Company approved the Amended and Restated Bylaws (the "Amended and Restated Bylaws"). The Amended and Restated Bylaws changed the voting standard for the election of directors in uncontested elections from a plurality to a majority of the votes cast at any meeting for the election of directors at which a quorum is present. The plurality voting standard continues to apply in any contested elections. The Amended and Restated Bylaws became effective immediately upon their adoption. 

We have evaluated events that have occurred subsequent to September 30, 2014 and have concluded there are no subsequent events that would require recognition in the accompanying consolidated financial statements.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Information

This Form 10-Q contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our expectations regarding our net interest income, allowance for loan and lease losses, net interest margin, deposit growth, loan and lease portfolio growth and production, Company and Pacific Western Bank liquidity, effective tax rates, and interest rate risk management. All statements contained in this Form 10-Q that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. Actual results could differ materially from those contained or implied by such forward-looking statements for a variety of factors, including without limitation:

• change in interest rates and lending spreads;

• compression of spreads on newly originated loans;

• unfavorable changes in asset mix;

• changes in our loan product could further compress net interest margin;

• changes in economic or competitive market conditions could negatively impact investment or lending opportunities or product pricing and services;

• higher than anticipated loan losses;

• credit quality deterioration or pronounced and sustained reduction in market values or other economic factors which adversely affect our borrowers' ability to repay loans and leases;

• continued or worsening credit losses or charge-offs;

• higher than anticipated delinquencies and reserves;

• a change in the interest rate environment reduces interest margins;

• asset/liability repricing risks and liquidity risks reduces interest margins and the value of investments;

• our inability to grow deposits and access wholesale funding sources;

• legislative or regulatory requirements or changes adversely affecting the Company’s business, including an increase to capital requirements;

• loan repayments higher than expected;

• reduced demand for our services due to strategic or regulatory reasons;

• the success and timing of other business strategies and asset sales;

• lower than expected taxable income which adversely affects the value of deferred tax assets;

• lower than expected dividends paid from Pacific Western Bank to the holding company;

• changes in tax laws or regulations affecting our business;

• our inability to generate sufficient earnings;

• tax planning or disallowance of tax benefits by tax authorities;

• changes in tax filing jurisdictions or entity classifications;

• changes in the forward yield curve;

• changes in the relationship between yields on investments and loans repaid and yields on assets reinvested; and

• other risk factors described in our audited consolidated financial statements, and other risk factors described in this Form 10-Q and documents filed by PacWest with the U.S. Securities and Exchange Commission (“SEC”).

All forward-looking statements included in this Form 10-Q are based on information available at the time the statement is made. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

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Overview

PacWest Bancorp (“PacWest”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. Our principal business is to serve as the holding company for our Los Angeles‑based wholly owned banking subsidiary, Pacific Western Bank, which we refer to as “Pacific Western” or the “Bank.”

Pacific Western is a full-service commercial bank offering a broad range of banking products and services including: accepting demand, money market, and time deposits; originating loans and leases, including an array of commercial real estate loans and commercial lending products.  The Bank has a foundation of locally generated and relationship‑based deposits, with 80 full-service branches located throughout the state of California. Our branch operations are located primarily in Southern California extending from San Diego County to California’s Central Coast, and we operate three banking offices in the San Francisco Bay area and two offices in the Central Valley. Our targeted collateral for our real estate loan offerings includes healthcare properties, office properties, industrial properties, multifamily properties, hospitality properties, and retail properties.  Our commercial loan products, available on a nationwide basis, include equipment loans and leases, asset based loans, lender finance loans and loans secured by borrower future cash flows; and providing other business‑oriented products.

As a result of the CapitalSource Inc. merger, Pacific Western Bank established the CapitalSource Division, which we also refer to as the National Lending segment. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses. Pacific Western’s leasing operation, Pacific Western Equipment Finance, and its group specializing in asset-based lending, CapitalSource Business Finance Group (formerly BFI Business Finance and First Community Financial), also became part of the CapitalSource Division. The CapitalSource Division’s loan and lease origination efforts are conducted through offices located in Chevy Chase, Maryland; Los Angeles and San Jose, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; New York, New York; and Midvale, Utah. When we refer to "CapitalSource Inc." we are referring to the company acquired on April 7, 2014 and when we refer to the "CapitalSource Division" we are referring to a division of Pacific Western Bank that specializes in middle-market lending on a nationwide basis.

Pacific Western competes actively for deposits, and emphasizes solicitation of noninterest‑bearing deposits. In managing the top line of our business, we focus on loan growth, loan yield, deposit cost, and net interest margin. Net interest income, on a year‑to‑date basis, accounted for 94.1% of our net revenues (net interest income plus noninterest income).

As of September 30, 2014, we had total assets of $15.9 billion, total gross loans and leases of $11.6 billion, total deposits of $11.5 billion and stockholders' equity of $3.5 billion. Total assets increased $9.4 billion and gross loans and leases increased $7.3 billion since December 31, 2013 due mainly to the CapitalSource Inc. merger. The gross Non‑PCI loan and lease portfolio totaled $11.2 billion as of September 30, 2014 compared to $3.9 billion as of December 31, 2013. Organic loan and lease growth was $384.8 million in the third quarter, while the PCI loan portfolio, which is comprised mostly of covered loans, decreased $31.4 million during the nine months endedSeptember 30, 2014. The decrease is due to payments and resolutions for the period.

Total liabilities increased $6.7 billion, including a $4.9 billion increase in time deposits and a $1.4 billion increase in core deposits during the nine months endedSeptember 30, 2014 due mainly to the CapitalSource Inc. merger. At September 30, 2014, time deposits totaled $5.5 billion or 48% of total deposits, while core deposits totaled $6.0 billion or 52% of total deposits.

CapitalSource Inc. Merger

On April 7, 2014, we completed the merger with CapitalSource Inc. As part of the merger, CapitalSource Bank (“CSB”), a wholly owned subsidiary of CapitalSource Inc., merged with and into Pacific Western Bank. We completed the merger in order to augment our loan and lease generation capabilities and to diversify our loan portfolio.

Upon closing, we created the CapitalSource Division of the Bank. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses.

In the merger with CapitalSource Inc., each share of CapitalSource Inc. common stock was converted into the right to receive $2.47 in cash and $0.2837 of a share of PacWest common stock. We issued an aggregate of approximately 56.7 million shares of PacWest common stock to CapitalSource Inc. stockholders. Based on the closing price of PacWest’s common stock on April 7, 2014 of $56,601,997.00 per share, the aggregate consideration paid to CapitalSource Inc. common stockholders and holders of equity awards to acquire CapitalSource Inc. common stock was approximately $3.1 billion.

The integration of CSB’s deposit system and the conversion of CSB’s branches to Pacific Western Bank’s operating platform were completed over the weekend of April 12, 2014. CSB had 21 branches, 12 of which were closed in the consolidation with Pacific Western at the close of business on April 11, 2014 and one overlapping Pacific Western branch was closed as well. All remaining branches opened on Monday, April 14, 2014 as Pacific Western branches.

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For further information, see Note 3, Acquisitions, in the Notes to Condensed Consolidated Financial Statements (Unaudited) contained in “Item 1. Condensed Consolidated Financial Statements (Unaudited).”

First California Financial Group Acquisition

On May 31, 2013, we completed the acquisition of First California Financial Group, Inc. (“FCAL”). As part of the acquisition, First California Bank (“FCB”), a wholly owned subsidiary of FCAL, merged with and into Pacific Western. For further information, see Note 3, Acquisitions, in the Notes to Condensed Consolidated Financial Statements (Unaudited) contained in “Item 1. Condensed Consolidated Financial Statements (Unaudited).”

Key Performance Indicators

Among other factors, our operating results depend generally on the following key performance indicators:

The Level of Our Net Interest Income

Net interest income is the excess of interest earned on our interest‑earning assets over the interest paid on our interest‑bearing liabilities. Net interest margin is net interest income expressed as a percentage of average interest‑earning assets. A sustained low interest rate environment combined with low loan growth and high levels of marketplace liquidity may lower both our net interest income and net interest margin going forward.

Our primary interest‑earning assets are loans and investments. Our primary interest‑bearing liabilities are deposits. We attribute our high net interest margin to our high level of noninterest‑bearing deposits and low cost of deposits. While our deposit balances will fluctuate depending on deposit holders’ perceptions of alternative yields available in the market, we attempt to minimize these variances by attracting a high percentage of noninterest‑bearing deposits, which have no expectation of yield. As an industrial loan bank, CapitalSource Inc. funded its balance sheet with a large proportion of higher-cost time deposits. We added $5.3 billion of time deposits in the CapitalSource Inc. merger. Over time, our goal is to replace higher-costing time deposits with core deposits through a dedicated deposit transformation initiative that includes sourcing deposits from CapitalSource Division borrowers.

Loan and Lease Growth

We actively seek new lending opportunities under an array of commercial real estate loans and commercial and industrial ("C&I") lending products. Our targeted collateral for our real estate loan offerings includes healthcare properties, office properties, industrial properties, multifamily properties, hospitality properties, and retail properties. Our C&I loan products include equipment loans and leases, asset-based loans, lender finance loans and loans secured by borrower future cash flows. Our loan origination process emphasizes credit quality. We strive to foster lender relationships with borrowers that have had proven loan repayment performance. Our commitment sizes vary by loan product and can range up to $50 million for certain asset-based lending arrangements and multi-property real estate loans. The term of our loans tends to be up to three years with certain loan products having extension options which are subject to credit performance hurdles. We price loans to preserve our interest spread and maintain our net interest margin. Achieving net loan growth is subject to many factors, including maintaining strict credit standards, competitive pressure related to loan pricing and loan proceeds, and successful borrowers that opt to prepay loans.

The Magnitude of Credit Losses

We emphasize credit quality in originating and monitoring the loans that we make and measure our success by the levels of our nonperforming assets, net charge‑offs, and allowance for credit losses. We maintain an allowance for credit losses on loans and leases, which is the sum of our allowance for loan and lease losses and our reserve for unfunded loan commitments. Provisions for credit losses are charged to operations as and when needed for both on and off‑balance sheet credit exposure. Loans and leases which are deemed uncollectible are charged off and deducted from the allowance for loan and lease losses. Recoveries on loans and leases previously charged off are added to the allowance for loan and lease losses. The provision for credit losses on the loan and lease portfolio was based on our allowance methodology and reflected historical and current net charge‑offs, the levels and trends of nonaccrual and classified loans and leases, the migration of loans and leases into various risk classifications, and the level of outstanding loans and leases. For originated and acquired non‑impaired loans, a provision for credit losses may be recorded to reflect credit deterioration after the origination or acquisition date. For purchased credit impaired ("PCI") loans, a provision for credit losses may be recorded to reflect decreases in expected cash flows on such loans compared to those previously estimated.

We regularly review our loans and leases to determine whether there has been any deterioration in credit quality stemming from economic conditions or other factors which may affect collectibility of our loans and leases. Changes in economic conditions, such as inflation, unemployment, increases in the general level of interest rates, declines in real estate values and adverse conditions in borrowers’ businesses could negatively impact our customers and cause us to adversely classify loans and leases and increase portfolio loss factors. An increase in classified loans and leases generally results in increased provisions for credit losses. Any

48

deterioration in the real estate market may lead to increased provisions for credit losses because of our concentration in real estate loans.

The Level of Our Noninterest Expense

Our noninterest expense includes fixed and controllable overhead, the major components of which are compensation, occupancy, data processing, and other professional services. It also includes costs that tend to vary based on the volume of activity, such as loan production and foreclosed asset expense. We measure success in controlling both fixed and variable costs through monitoring of the efficiency ratio. We calculate the base efficiency ratio by dividing noninterest expense by net revenues (the sum of net interest income plus noninterest income). We also calculate a non‑GAAP measure called the “adjusted efficiency ratio.” The adjusted efficiency ratio is calculated in the same manner as the base efficiency ratio except that (a) net revenues are reduced by net FDIC loss sharing expense, gain (loss) on sale of assets, and accelerated discount accretion resulting from early payoffs of acquired loans and (b) noninterest expense is reduced by covered foreclosed assets expense and acquisition, integration and reorganization costs.

We present this non-GAAP financial measure and others for supplemental information purposes only in order to understand the Company's operating results and these non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with United States generally accepted accounting principles ("GAAP").

The consolidated base and adjusted efficiency ratios have been as follows:

Three Months Ended	Base Efficiency Ratio	Adjusted Efficiency Ratio
September 30, 2014	46.6%	43.4%
June 30, 2014	84.5%	43.1%
March 31, 2014	56.1%	52.7%
December 31, 2013	85.5%	56.7%
September 30, 2013	64.3%	57.3%

We disclose the adjusted efficiency ratio as it shows the trend in recurring overhead‑related noninterest expense relative to recurring net revenues. See “Non‑GAAP Measurements” for the calculations of the base and adjusted efficiency ratios.

Adjusted Net Earnings

Our net earnings for the third quarter of 2014 totaled $62.3 million. Another measure of earnings used as an indicator of earnings generating capability, excluding non-recurring and/or volatile items, is adjusted net earnings. We calculate adjusted net earnings by excluding accelerated discount accretion resulting from the early payoff of acquired loans, net FDIC loss sharing expense, gain (loss) on sale of loans and leases, securities gains and losses, gain on sale of an owned building, covered foreclosed assets expense, and acquisition, integration and reorganization costs. Adjusted net earnings for the third quarter of 2014 totaled $68.4 million. See “Non‑GAAP Measurements” for the calculation of adjusted net earnings.

Critical Accounting Policies

The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. The Company has identified several policies as being critical because they require management to make particularly difficult, subjective and/or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions. These policies relate to the allowance for credit losses, the carrying values of intangible assets, the realization of deferred income tax assets, and the fair value estimates of assets acquired and liabilities assumed in acquisitions. For further information, refer to our Annual Report on Form 10‑K for the year ended December 31, 2013.

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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. The non-GAAP measures used in this Form 10-Q include the following:

• Adjusted net earnings: As analysts and investors view this measure as an indicator of the Company's ability to both generate earnings and absorb credit losses, we disclose this amount in addition to net earnings.

• Adjusted return on average assets, adjusted return on average equity, return on average tangible equity, adjusted return on average tangible equity, tangible common equity amounts and ratios, and tangible book value per share: Given that the use of these measures is prevalent among banking regulators, investors and analysts, we disclose them in addition to return on average assets, return on average equity, equity-to-assets ratio, and book value per share, respectively.

• Adjusted efficiency ratio: We disclose this measure in addition to the efficiency ratio as it shows the trend in recurring overhead-related noninterest expense relative to recurring net revenues.

• Adjusted allowance for credit losses to loans and leases: As the allowance for credit losses takes into consideration credit deterioration on acquired loans and leases only after the purchase date and an estimate of credit losses is included in their initial fair values, we disclose the adjusted allowance for credit losses to loans and leases in addition to the allowance for credit losses to loans and leases. The adjusted allowance for credit losses to loans and leases excludes acquired loans and leases and the related allowance.

The methodology for determining adjusted net earnings, adjusted return on average assets, adjusted return on average equity, return on average tangible equity, adjusted return on average tangible equity, tangible common equity amounts and ratios, tangible book value per share, adjusted efficiency ratio and adjusted allowance for credit losses to loans and leases may differ among companies.

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The following tables present performance amounts and ratios in accordance with GAAP and a reconciliation of the non‑GAAP financial measurements to the GAAP financial measurements:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Adjusted Net Earnings and Related Ratios:	2014			2014			2013			2014			2013
	(In thousands)
Reported net earnings	$	62,271		$	10,555		$	24,163		$	97,906		$	42,006
Subtract: Tax benefit on discontinued operations	(3		)	(476		)	16			(1,067		)	(18		)
Add: Tax expense on continuing operations	42,205			14,846			11,243			71,627			20,868
Reported pre-tax earnings	104,473			24,925			35,422			168,466			62,856
Add: Acquisition, integration and reorganization
costs	5,193			86,242			5,450			93,635			24,139
Subtract: FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
(Loss) gain on sale of loans and leases	973			(485		)	604			594			1,108
Gain on securities	—			89			5,222			4,841			5,631
Covered foreclosed assets (expense) income, net	(452		)	185			332			1,348			1,239
Gain on sale of owned office building	—			—			—			1,570			—
Adjusted pre-tax earnings before accelerated
discount accretion	116,560			119,903			41,746			281,118			94,596
Subtract: Accelerated discount accretion resulting
from payoffs of acquired loans	4,501			15,290			2,105			27,446			2,959
Adjusted pre-tax earnings	112,059			104,613			39,641			253,672			91,637
Tax expense (1)	(43,703		)	(40,799		)	(13,874		)	(98,932		)	(32,073		)
Adjusted net earnings	$	68,356		$	63,814		$	25,767		$	154,740		$	59,564
Average assets	$	15,716,539		$	15,037,101		$	6,660,854		$	12,456,182		$	5,943,004
Average stockholders' equity	$	3,465,119		$	3,233,018		$	797,725		$	2,515,506		$	685,216
Less: Average intangible assets	1,744,542			1,638,267			228,947			1,208,266			151,360
Average tangible common equity	$	1,720,577		$	1,594,751		$	568,778		$	1,307,240		$	533,856
Annualized return on average assets (2)	1.57		%	0.28		%	1.44		%	1.05		%	0.95		%
Annualized adjusted return on average assets (3)	1.73		%	1.70		%	1.53		%	1.66		%	1.34		%
Annualized return on average equity (4)	7.13		%	1.31		%	12.02		%	5.20		%	8.20		%
Annualized adjusted return on average equity (5)	7.83		%	7.92		%	12.81		%	8.22		%	11.62		%
Annualized return on average tangible equity (6)	14.36		%	2.65		%	16.85		%	10.01		%	10.52		%
Annualized adjusted return on average tangible equity (7)	15.76		%	16.05		%	17.97		%	15.83		%	14.92		%

_____________________________________

(1) Full-year expected effective rate of 39% used in 2014 periods (excluding acquisition, integration and reorganization costs) and actual effective rate of 35% used in 2013 periods.

(2) Annualized net earnings divided by average assets.

(3) Annualized adjusted net earnings divided by average assets.

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

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

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

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

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		Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
Adjusted Efficiency Ratio:		2014			2014			2013			2014			2013
		(Dollars in thousands)
Noninterest expense		$	95,629		$	169,906		$	56,200		$	316,404		$	164,599
Less:	Acquisition, integration and reorganization costs	5,193			86,242			5,450			93,635			24,139
	Covered foreclosed assets expense (income), net	452			(185		)	(332		)	(1,348		)	(1,239		)
	Adjusted noninterest expense	$	89,984		$	83,849		$	51,082		$	224,117		$	141,699
Net interest income		$	188,846		$	192,533		$	82,289		$	467,394		$	216,455
Noninterest income		16,314			8,479			5,127			29,484			8,170
Net revenues		205,160			201,012			87,416			496,878			224,625
Less:	FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
	(Loss) gain on sale of loans and leases	973			(485		)	604			594			1,108
	Gain on securities	—			89			5,222			4,841			5,631
	Gain on sale of owned office building	—			—			—			1,570			—
	Accelerated discount accretion resulting from early
	payoffs of acquired loans	4,501			15,290			2,105			27,446			2,959
Adjusted net revenues		$	207,101		$	194,643		$	86,517		$	489,797		$	230,506
Base efficiency ratio(1)		46.6		%	84.5		%	64.3		%	63.7		%	73.3		%
Adjusted efficiency ratio(2)		43.4		%	43.1		%	59.0		%	45.8		%	61.5		%

_______________________________________

(1) Noninterest expense divided by net revenues.

(2) Adjusted noninterest expense divided by adjusted net revenues.

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Tangible Common Equity:	September 30, 2014			December 31, 2013
	(Dollars in thousands)
PacWest Bancorp Consolidated:
Stockholders’ equity	$	3,478,246		$	809,093
Less: Intangible assets	1,740,951			225,991
Tangible common equity	$	1,737,295		$	583,102
Total assets	$	15,938,345		$	6,533,363
Less: Intangible assets	1,740,951			225,991
Tangible assets	$	14,197,394		$	6,307,372
Equity to assets ratio	21.8		%	12.4		%
Tangible common equity ratio(1)	12.2		%	9.2		%
Book value per share	$	33.76		$	17.66
Tangible book value per share	$	16.86		$	12.73
Shares outstanding	103,027,830			45,822,834
Pacific Western Bank:
Stockholders’ equity	$	3,357,138		$	911,200
Less: Intangible assets	1,740,951			225,991
Tangible common equity	$	1,616,187		$	685,209
Total assets	$	15,675,486		$	6,507,288
Less: Intangible assets	1,740,951			224,627
Tangible assets	$	13,934,535		$	6,282,661
Equity to assets ratio	21.4		%	14.0		%
Tangible common equity ratio(1)	11.6		%	10.9		%

_______________________________________

(1) Tangible common equity divided by tangible assets.

Adjusted Allowance for Credit Losses to Loans and Leases (Excludes PCI Loans):	September 30, 2014			December 31, 2013
	(Dollars in thousands)
Allowance for credit losses	$	68,997		$	67,816
Less: Allowance related to acquired Non-PCI loans and leases	3,038			607
Adjusted allowance for credit losses	$	65,959		$	67,209
Gross Non-PCI loans and leases	$	11,239,964		$	3,930,539
Less: Carrying value of acquired Non‑PCI loans and leases	7,039,518			1,060,172
Adjusted loans and leases	$	4,200,446		$	2,870,367
Allowance for credit losses to loans and leases(1)	0.61		%	1.73		%
Adjusted allowance for credit losses to loans and leases(2)	1.57		%	2.34		%

_______________________________________

(1) Allowance for credit losses divided by gross Non-PCI loans and leases.

(2) Adjusted allowance for credit losses divided by adjusted loans and leases.

Results of Operations

Acquisitions Impact Earnings Performance

The comparability of financial information is affected by our acquisitions. We completed the FCAL and CapitalSource Inc. acquisitions on May 31, 2013 ($1.6 billion in assets) and April 7, 2014 ($9.1 billion in assets), respectively. The transactions have been accounted for using the acquisition method of accounting and, accordingly, the related operating results have been included in the consolidated financial statements from the respective acquisition dates.

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Earnings Performance

The following table presents profitability metrics for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
Profitability Measures:
Diluted earnings per share	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03
Annualized return on:
Average assets	1.57		%	0.28		%	1.44		%	1.05		%	0.95		%
Average equity	7.13		%	1.31		%	12.02		%	5.20		%	8.20		%
Average tangible equity (1)	14.36		%	2.65		%	16.85		%	10.01		%	10.52		%
Annualized adjusted return on:
Average assets (2)	1.73		%	1.70		%	1.53		%	1.66		%	1.34		%
Average tangible equity (2)	15.76		%	16.05		%	17.97		%	15.83		%	14.92		%
Net interest margin	5.78		%	6.24		%	5.46		%	5.99		%	5.36		%
Core net interest margin (3)	5.64		%	5.74		%	5.32		%	5.64		%	5.28		%
Base efficiency ratio	46.60		%	84.50		%	64.30		%	63.68		%	73.28		%
Adjusted efficiency ratio (2)	43.45		%	43.08		%	59.04		%	45.76		%	61.47		%

_____________________________

(1) Calculation reduces average equity by average intangible assets.

(2) See "Non-GAAP Measurements" for the calculation of this item.

(3) Excludes accelerated accretion of acquisition discounts resulting from early payoffs of acquired loans.

Third Quarter of 2014 Compared to Second Quarter of 2014

Net earnings were $62.3 million, or $0.60 per diluted share, for the third quarter of 2014, compared to $10.6 million, or $0.10 per diluted share, for the second quarter of 2014. The quarter‑over‑quarter increase of $51.7 million in net earnings was due mostly to: (a) the $74.3 million decrease in noninterest expense, which was comprised of an $81.0 million decrease in acquisition, integration and reorganization costs offset by a $4.3 million increase in foreclosed assets expense and $2.6 million increase in operating expense, and (b) the $7.8 million increase in noninterest income. These items were offset partially by the $3.7 million decrease in net interest income. When certain income and expense items are excluded, adjusted net earnings were $68.4 million for the third quarter compared to $63.8 million for the prior quarter. The $4.6 million increase in adjusted net earnings was driven by higher net interest income from higher average average loan and lease balances offset by higher foreclosed assets expense and operating expense. The adjusted efficiency ratio remained flat at 43.4% for the third quarter compared to 43.1% for the prior quarter. The third quarter of 2014 adjusted return on assets and adjusted return on tangible equity stood at 1.73% and 15.76%, respectively.

Third Quarter of 2014 Compared to Third Quarter of 2013

Net earnings for the third quarter of 2014 were $62.3 million, or $0.60 per diluted share, compared to net earnings for the third quarter of 2013 of $24.2 million, or $0.53 per diluted share. The $38.1 million increase in net earnings was due to the $106.6 million increase in net interest income and the $11.2 million increase in noninterest income, offset partially by the $39.4 million increase in noninterest expense. All of the changes from period to period are due mostly to the CapitalSource Inc. merger.

Nine Months Ended September 30, 2014 Compared to Nine Months Ended September 30, 2013

Net earnings for the nine months endedSeptember 30, 2014 were $97.9 million, or $1.18 per diluted share, compared to net earnings for the nine months endedSeptember 30, 2013 of $42.0 million, or $1.03 per diluted share. The $55.9 million increase in net earnings was due to the $250.9 million increase in net interest income and the $21.3 million increase in noninterest income, offset partially by the $151.8 million increase in noninterest expense. The noninterest expense increase was comprised of a $71.9 million increase in operating expense, a $69.5 million increase in acquisition, integration and reorganization costs, a $6.1 million increase in leased equipment depreciation and a $4.4 million increase in foreclosed assets expense. When certain income and expense items are excluded, adjusted net earnings are $154.7 million for the nine months ended September 30, 2014 compared to $59.6 million for the same period in 2013. The $95.1 million increase was due mostly to the growth through the CapitalSource Inc. and FCAL acquisitions.

54

Net Interest Income

Net interest income, which is our principal source of revenue, represents the difference between interest earned on interest‑earning assets and interest paid on interest‑bearing liabilities. Net interest margin is net interest income expressed as a percentage of average interest‑earning assets. Net interest income is affected by changes in both interest rates and the volume of average interest‑earning assets and interest‑bearing liabilities.

The following tables present, for the periods indicated, the distribution of average assets, liabilities and stockholders’ equity, as well as interest income and yields earned on average interest‑earning assets and interest expense and rates paid on average interest‑bearing liabilities:

	Three Months Ended
	September 30, 2014						June 30, 2014						September 30, 2013
	Average Balance		Interest Income/ Expense		Yields and Rates		Average Balance		Interest Income/ Expense		Yields and Rates		Average Balance		Interest Income/ Expense		Yields and Rates
	(Dollars in thousands)
ASSETS
Loans and leases, net of unearned income(1)	$	11,285,689	$	189,961	6.68	%	$	10,500,521	$	192,201	7.34	%	$	4,320,770	$	75,196	6.90	%
Investment securities(2)	1,584,811		12,331		3.09	%	1,606,848		11,986		2.99	%	1,518,256		9,871		2.58	%
Deposits in financial institutions	99,276		64		0.26	%	276,095		176		0.26	%	140,785		91		0.26	%
Total interest‑earning assets	12,969,776		202,356		6.19	%	12,383,464		204,363		6.62	%	5,979,811		85,158		5.65	%
Other assets	2,746,763						2,653,637						681,043
Total assets	$	15,716,539					$	15,037,101					$	6,660,854
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest checking deposits	$	605,288	$	86	0.06	%	$	601,958	$	77	0.05	%	$	619,884	$	83	0.05	%
Money market deposits	1,733,445		908		0.21	%	1,691,115		874		0.21	%	1,567,976		730		0.18	%
Savings deposits	759,177		575		0.30	%	722,808		548		0.30	%	216,174		14		0.03	%
Time deposits	5,680,732		7,253		0.51	%	5,613,601		5,814		0.42	%	765,890		865		0.45	%
Total interest‑bearing deposits	8,778,642		8,822		0.40	%	8,629,482		7,313		0.34	%	3,169,924		1,692		0.21	%
Borrowings	96,711		74		0.30	%	39,931		199		2.00	%	9,012		108		4.75	%
Subordinated debentures	434,625		4,614		4.21	%	409,934		4,318		4.22	%	132,413		1,069		3.20	%
Total interest‑bearing liabilities	9,309,978		13,510		0.58	%	9,079,347		11,830		0.52	%	3,311,349		2,869		0.34	%
Noninterest‑bearing demand deposits	2,778,260						2,546,540						2,329,197
Other liabilities	163,182						178,196						222,583
Total liabilities	12,251,420						11,804,083						5,863,129
Stockholders’ equity	3,465,119						3,233,018						797,725
Total liabilities and stockholders’
equity	$	15,716,539					$	15,037,101					$	6,660,854
Net interest income			$	188,846					$	192,533					$	82,289
Net interest rate spread					5.61	%					6.10	%					5.31	%
Net interest margin					5.78	%					6.24	%					5.46	%
Total deposits (3)	$	11,556,902	$	8,822	0.30	%	$	11,176,022	$	7,313	0.26	%	$	5,499,121	$	1,692	0.12	%
Funding sources (4)	$	12,088,238	$	13,510	0.44	%	$	11,625,887	$	11,830	0.41	%	$	5,640,546	$	2,869	0.20	%

_____________________

(1) Includes nonaccrual loans and leases and loan fees.

(2) The tax‑equivalent yield on investment securities was 3.39%, 3.35% and 2.74% for the three months endedSeptember 30, 2014, June 30, 2014, and September 30, 2013, respectively.

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

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

55

	Nine Months Ended
	September 30, 2014						September 30, 2013
	Average Balance		Interest Income/ Expense		Yields and Rates		Average Balance		Interest Income/ Expense		Yields and Rates
	(Dollars in thousands)
ASSETS
Loans and leases, net of unearned income(1)	$	8,698,351	$	459,625	7.06	%	$	3,865,463	$	199,374	6.90	%
Investment securities(2)	1,568,382		35,140		3.00	%	1,436,650		26,501		2.47	%
Deposits in financial institutions	164,613		314		0.26	%	95,456		183		0.26	%
Total interest‑earning assets	10,431,346		495,079		6.35	%	5,397,569		226,058		5.60	%
Other assets	2,024,836						545,435
Total assets	$	12,456,182					$	5,943,004
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest checking deposits	$	611,499	$	241	0.05	%	$	567,295	$	220	0.05	%
Money market deposits	1,626,539		2,400		0.20	%	1,362,219		1,800		0.18	%
Savings deposits	570,317		1,137		0.27	%	185,527		49		0.04	%
Time deposits	4,005,299		13,582		0.45	%	772,735		4,349		0.75	%
Total interest‑bearing deposits	6,813,654		17,360		0.34	%	2,887,776		6,418		0.30	%
Borrowings	51,894		352		0.91	%	14,030		451		4.30	%
Subordinated debentures	326,858		9,973		4.08	%	119,309		2,734		3.06	%
Total interest‑bearing liabilities	7,192,406		27,685		0.51	%	3,021,115		9,603		0.42	%
Noninterest‑bearing demand deposits	2,568,396						2,115,608
Other liabilities	179,874						121,065
Total liabilities	9,940,676						5,257,788
Stockholders’ equity	2,515,506						685,216
Total liabilities and stockholders’ equity	$	12,456,182					$	5,943,004
Net interest income			$	467,394					$	216,455
Net interest rate spread					5.84	%					5.18	%
Net interest margin					5.99	%					5.36	%
Total deposits (3)	$	9,382,050	$	17,360	0.25	%	$	5,003,384	$	6,418	0.17	%
Funding sources (4)	$	9,760,802	$	27,685	0.38	%	$	5,136,723	$	9,603	0.25	%

_____________________

(1) Includes nonaccrual loans and leases and loan fees.

(2) The tax‑equivalent yield for investment securities was 3.41% and 2.84% for the nine months endedSeptember 30, 2014 and 2013, respectively.

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

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

56

The net interest margin (“NIM”) and loan and lease yields are impacted by accelerated accretion of acquisition discounts resulting from early payoffs of acquired loans, which causes volatility from period to period. The effects of this item on the NIM and loan and lease yield are shown in the following tables for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2014		2014		2013		2014		2013
NIM:
Reported	5.78	%	6.24	%	5.46	%	5.99	%	5.36	%
Less: Accelerated accretion of acquisition discounts resulting from early payoffs of acquired loans	(0.14	)%	(0.50	)%	(0.14	)%	(0.35	)%	(0.08	)%
Core	5.64	%	5.74	%	5.32	%	5.64	%	5.28	%
Loan and Lease Yield:
Reported	6.68	%	7.34	%	6.90	%	7.06	%	6.90	%
Less: Accelerated accretion of acquisition discounts resulting from early payoffs of acquired loans	(0.16	)%	(0.58	)%	(0.19	)%	(0.42	)%	(0.10	)%
Core	6.52	%	6.76	%	6.71	%	6.64	%	6.80	%

The following table present the impact on the NIM from all purchase accounting items as indicated in the table below for the period indicated:

	Three Months Ended
	September 30, 2014
	Amount			Impact on NIM
	(Dollars in thousands)
NIM - as reported	$	188,846		5.78	%
Less: accelerated accretion of acquisition discounts
from early acquired loan payoffs	(4,501		)	(0.14	)%
Remaining accretion of Non-PCI loan acquisition
discounts	(15,072		)	(0.46	)%
Amortization of TruPS discount	1,402			0.04	%
Accretion of time deposits premium	(5,081		)	(0.16	)%
	(23,252		)	(0.72	)%
NIM - excluding purchase accounting	$	165,594		5.06	%

The following table presents the loan and lease yields and related average balances for our Non‑PCI loans and leases, PCI loans, and total loan and lease portfolio for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands)
Yields:
Non‑PCI loans and leases	6.41		%	7.06		%	6.35		%	6.63		%	6.48		%
PCI loans	14.74		%	15.08		%	11.88		%	17.07		%	9.93		%
Total loans and leases	6.68		%	7.34		%	6.90		%	7.06		%	6.90		%
Average Balances:
Non‑PCI loans and leases	$	10,922,640		$	10,125,327		$	3,889,780		$	8,339,072		$	3,397,398
PCI loans	363,049			375,194			430,990			359,278			468,065
Total loans and leases	$	11,285,689		$	10,500,521		$	4,320,770		$	8,698,350		$	3,865,463

57

Third Quarter of 2014 Compared to Second Quarter of 2014

Net interest income decreased by $3.7 million to $188.8 million for the third quarter of 2014 compared to $192.5 million for the second quarter of 2014 due to lower accelerated discount accretion resulting from early payoffs of acquired loans partially offset by higher interest income from higher average loan and lease balances.

Our NIM for the third quarter of 2014 was 5.78% compared to 6.24% for the second quarter of 2014. The 46 basis point decrease in NIM was driven by the lower accelerated discount accretion resulting from early payoffs of acquired loans.

The yield on loans and leases decreased to 6.68% for the third quarter of 2014 from 7.34% for the second quarter of 2014. The accelerated discount accretion resulting from early payoffs of acquired loans totaled $4.5 million for the third quarter and $15.3 million for the second quarter, a decrease of $10.8 million. When accelerated discount accretion is excluded, the core yield on loans and leases was 6.52% for the third quarter and 6.76% for the second quarter.

The yield on PCI loans decreased to 14.74% for the third quarter of 2014 from 15.08% for the second quarter of 2014. The accelerated discount accretion resulting from early payoffs of PCI loans totaled $1.8 million for the third quarter and $3.0 million for the second quarter, a decrease of $1.2 million. When accelerated accretion is excluded, the core PCI loan yield was 12.70% for the third quarter compared to 11.83% for the second quarter.

The cost of all funding sources increased in the third quarter due to $1.6 million lower premium accretion on time deposits acquired in the CapitalSource Inc. merger. The cost of average funding sources increased 3 basis points to 0.44% for the third quarter of 2014 from 0.41% for the second quarter of 2014. This increase includes the all‑in deposit cost which increased 4 basis points to 0.30% for the current quarter compared to the prior quarter. The cost of total interest‑bearing deposits increased 6 basis points to 0.40% and total interest‑bearing liabilities increased 6 basis points to 0.58%, respectively, for the third quarter. At the acquisition date, the weighted average contractual rate of the acquired CapitalSource Inc. time deposits was 98 basis points and the weighted average effective rate was 70 basis points. The effective rate is lower than the contractual rate due to the $5.1 million accretion of the purchase accounting premium on such acquired time deposits that lowered interest expense in the quarter. The remaining unamortized time deposit premium as of September 30, 2014 was $5.9 million and has a weighted average life of eleven months. The purchase accounting discount accretion on acquired time deposits lowered the all-in deposit cost by 16 basis points in the third quarter.

Third Quarter of 2014 Compared to Third Quarter of 2013

Net interest income increased by $106.6 million to $188.8 million for the third quarter of 2014 compared to $82.3 million for the third quarter 2013 due to the significant increase in interest-earning assets acquired in the CapitalSource Inc. merger.

The NIM increased 32 basis points to 5.78% for the third quarter of 2014 compared to 5.46% for the same quarter last year driven by the increase in interest-earning assets, which resulted from the loans and leases added with the CapitalSource Inc. merger and organic loan growth during the period. The increase in the NIM was also a result of loans and leases being a higher percentage of interest-earning assets than in the prior period.

The yield on loans and leases decreased 22 basis points to 6.68% for the third quarter of 2014 compared to 6.90% for the same quarter of 2013. This decrease was due to rates on newly originated loans being lower than the average portfolio rate and the higher-yielding PCI loan portfolio being a smaller percentage of the entire loan portfolio in the current quarter.

The cost of all funding sources increased in the third quarter of 2014 due to the addition of the higher-cost time deposits and subordinated debt from CapitalSource Inc. The cost of average funding sources increased 24 basis points to 0.44% for the third quarter of 2014 from 0.20% for the third quarter of 2013. This includes the all‑in deposit cost which increased 18 basis points to 0.30% for the current quarter from 0.12% for the same quarter last year. The cost of total interest‑bearing liabilities increased 24 basis points to 0.58% for the third quarter of 2014 from 0.34% for the same quarter last year.

Nine Months Ended September 30, 2014 Compared to Nine Months Ended September 30, 2013

Net interest income increased by $250.9 million to $467.4 million for the nine months ended September 30, 2014 compared to $216.5 million for the same period of 2013 due to the significant increase in interest-earning assets acquired in the CapitalSource Inc. merger.

The NIM increased 63 basis points to 5.99% for the nine months ended September 30, 2014 compared to 5.36% for the same period last year driven by the increase in interest-earning assets, which resulted from the loans and leases added with the CapitalSource Inc. merger and organic loan growth during the period. The increase in the NIM was also a result of loans and leases being a higher percentage of interest-earning assets than in the prior period.

58

The yield on loans and leases increased 16 basis points to 7.06% for the nine months ended September 30, 2014 compared to 6.90% for the same period of 2013. This increase was due to higher accelerated accretion of acquisition discounts resulting from early payoffs of acquired loans. Such accelerated accretion totaled $27.4 million for the first nine months of 2014 and $3.0 million for the first nine months of 2013. When accelerated accretion is excluded, the core yield on loans and leases was 6.64% for the nine months ended September 30, 2014 and 6.80% for the same period of 2013.

The cost of all funding sources increased in the nine months ended September 30, 2014 due to the addition of the higher-cost time deposits and subordinated debt from CapitalSource Inc. The cost of average funding sources increased 13 basis points to 0.38% for the nine months ended September 30, 2014 from 0.25% for the same period of 2013. The increase in the cost of average funding sources in the first nine months of 2014 was due to noninterest-bearing deposits becoming a smaller percentage of funding liabilities than in the prior period. The cost of total interest‑bearing deposits increased 4 basis points to 0.34% and total interest‑bearing liabilities increased 9 basis points to 0.51% for the nine months ended September 30, 2014.

Provision for Credit Losses

The following table sets forth the details of the provision for credit losses and allowance for credit losses data for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands)
Provision For Credit Losses:
Addition to (reduction in) allowance
for Non‑PCI loans and leases	$	3,684		$	5,131		$	(570	)	$	9,415		$	(1,030	)
Addition to (reduction in) reserve for
unfunded loan commitments	(931		)	(131		)	570			(1,662		)	1,030
Total provision (negative
provision) for Non‑PCI loans
and leases	2,753			5,000			—			7,753			—
Provision (negative provision) for
PCI loans	2,297			30			(4,167		)	1,683			(2,872		)
Total provision (negative
provision) for credit losses	$	5,050		$	5,030		$	(4,167	)	$	9,436		$	(2,872	)
Non‑PCI Credit Quality Metrics:
Net charge‑offs (recoveries) on
Non‑PCI loans and leases	$	6,123		$	(412	)	$	2,125		$	6,572		$	4,318
Annualized net charge‑offs to
average Non‑PCI loans and leases	0.22		%	(0.02		)%	0.22		%	0.11		%	0.17		%
At Period End:
Allowance for loan and lease losses	$	63,084		$	65,523		$	60,551
Allowance for credit losses	68,997			72,367			67,801
Non‑PCI nonaccrual loans and leases	88,948			96,802			50,845
Non‑PCI classified loans and leases	260,986			304,627			130,791
Allowance for credit losses to
Non‑PCI loans and leases	0.61		%	0.67		%	1.72		%
Allowance for credit losses to
Non‑PCI nonaccrual loans
and leases	77.6		%	74.8		%	133.3		%

59

Provisions for credit losses are charged to earnings for both on and off‑balance sheet credit exposures. We have a provision for credit losses on our Non‑PCI loans and leases and a provision for credit losses on our PCI loans. The provision for credit losses on our Non‑PCI loans and leases is based on our allowance methodology and is an expense, or contra‑expense, that, in our judgment, is required to maintain the adequacy of the allowance for loan and lease losses and the reserve for unfunded loan commitments. Our allowance methodology reflects net charge‑offs, the levels and trends of nonaccrual and classified loans and leases, the migration of loans and leases into various risk classifications, and the level of outstanding loans and leases and commitments. The provision for credit losses on our PCI loans results from decreases or increases in expected cash flows on such loans compared to those previously estimated.

Our Non‑PCI loans and leases at September 30, 2014, included $7.0 billion in loans and leases acquired in acquisitions. These acquired loans and leases were initially recorded at their estimated fair values and such initial fair values included an estimate of credit losses. The allowance calculation for Non‑PCI loans and leases takes into consideration those acquired loans and leases whose credit quality has deteriorated since their acquisition dates. At September 30, 2014, $3.0 million of our allowance for credit losses applies to these acquired loans and leases. When these acquired loans and leases are excluded from the total of Non‑PCI loans and leases and the related allowance of $3.0 million is excluded from the allowance for credit losses, the result is an adjusted coverage ratio of our allowance for credit losses to Non‑PCI loans and leases of 1.57% at September 30, 2014; the comparable ratio at June 30, 2014 was 2.07%. The decrease in coverage ratio results from the combination of charge-offs on loans that were reserved for in the second quarter, the full payoff of a significant classified loan in the third quarter, and a lower balance of unamortized discount.

Non-PCI loans and leases include $4.2 billion of originated loans and leases that were not obtained through acquisitions. The allowance related to these loans and leases totaled $60.0 million, or 1.43% of the outstanding balance.

Increased provisions for credit losses may be required in the future based on loan and lease and unfunded commitment growth, the effect that changes in economic conditions, such as inflation, unemployment, market interest rate levels, and real estate values, may have on the ability of our borrowers to repay their loans, and other negative conditions specific to our borrowers’ businesses. See further discussion in “Balance Sheet Analysis - Allowance for Credit Losses on Non‑PCI Loans” and “Balance Sheet Analysis - Allowance for Credit Losses on PCI Loans” contained herein.

Noninterest Income

The following table summarizes noninterest income by category for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(In thousands)
Noninterest Income:
Service charges on deposit accounts	$	2,725		$	2,719		$	2,938		$	8,446		$	8,568
Other commissions and fees	6,371			5,743			2,204			14,046			6,291
Leased equipment income	5,615			5,672			—			11,287			—
Gain (loss) on sale of loans and leases	973			(485		)	604			594			1,108
Gain on securities	—			89			5,222			4,841			5,631
FDIC loss sharing expense, net	(7,415		)	(8,525		)	(7,032		)	(27,370		)	(15,579		)
Other income:
Dividends and realized gains on equity investments	3,625			658			—			4,283
Foreign currency translation net gains	2,253			251			—			2,504
Income recognized on early repayment of leases	510			961			—			4,976			—
Gain on sale of owned office building	—			—			—			1,570			—
Other	1,657			1,396			1,191			4,307			2,151
Total noninterest income	$	16,314		$	8,479		$	5,127		$	29,484		$	8,170

60

The following table presents the details of FDIC loss sharing expense, net for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(In thousands)
FDIC Loss Sharing Expense, Net:
(Loss) gain on FDIC loss sharing asset(1)	$	(1,735	)	$	(991	)	$	269		$	(4,932	)	$	4,229
FDIC loss sharing asset amortization, net	(6,074		)	(7,270		)	(6,971		)	(21,256		)	(18,718		)
Net reimbursement to FDIC for covered OREOs(2)	491			(175		)	(276		)	(908		)	(1,039		)
Other	(97		)	(89		)	(54		)	(274		)	(51		)
Total FDIC loss sharing expense, net	$	(7,415	)	$	(8,525	)	$	(7,032	)	$	(27,370	)	$	(15,579	)

_______________________

(1) Includes increases related to covered loan loss provisions and decreases for: (a) write‑offs for covered loans expected to be resolved at amounts higher than their carrying values, and (b) amounts to be reimbursed to the FDIC for covered loans resolved at amounts higher than their carrying values.

(2) Represents amounts to be reimbursed to the FDIC for gains on covered OREO sales and due from the FDIC for covered OREO write‑downs.

Third Quarter of 2014 Compared to Second Quarter of 2014

Noninterest income increased by $7.8 million to $16.3 million for the third quarter of 2014 from $8.5 million for the second quarter of 2014. The increase was due mostly to higher gain on sales of loans and leases, lower FDIC loss sharing expense and higher other income. The increase in other income is attributable to higher dividends on other equity investments and higher foreign currency translation net gains. We have approximately $38.8 million of other equity investments that may generate principal returns, dividends and/or gains on sale each period. We have approximately $54.3 million in loans denominated in Canadian Dollars, Euros and the British Pound and hedged with cross currency swaps with a notional value of $58.0 million. In addition, we have $32.6 million of subordinated debt denominated in Euros which is unhedged. The FDIC loss sharing expense decreased $1.1 million due mostly to lower amortization of the FDIC loss sharing asset as one of the Bank's loss sharing agreements reached the end of its initial indemnification period during the quarter.

Third Quarter of 2014 Compared to Third Quarter of 2013

Noninterest income increased by $11.2 million to $16.3 million for the third quarter of 2014 compared to $5.1 million for the third quarter of 2013. The increase was due mostly to income streams acquired in connection with the CapitalSource Inc. merger, including certain other commissions and fees, certain dividends and gains on other equity investments and foreign currency translation net gains. The increase in other commissions and fees is due to higher loan-related fees (unused commitment fees and prepayment fees) of $3.3 million and leased equipment income increased by $5.6 million, all attributable to the added CapitalSource Division operations.

Nine Months Ended September 30, 2014 Compared to Nine Months Ended September 30, 2013

Noninterest income increased by $21.3 million to $29.5 million for the nine months ended September 30, 2014 compared to $8.2 million for the same period of 2013. The increase was due mostly to the described income streams acquired in the CapitalSource Inc. merger, offset by higher FDIC loss sharing expense. The increase in FDIC loss sharing expense was due mainly to higher losses on the FDIC loss sharing asset and amortization of the FDIC loss sharing asset. The 2014 period also includes a gain on the sale of an owned office building of $1.6 million which was not present in the 2013 period.

61

Noninterest Expense

The following table summarizes noninterest expense by category for the periods indicated:

	Three Months Ended							Nine Months Ended
	September 30,		June 30,		September 30,			September 30,
	2014		2014		2013			2014		2013
	(In thousands)
Noninterest Expense:
Compensation and benefits	$	45,861	$	45,081	$	27,963		$	119,569	$	79,370
Occupancy	11,188		11,078		7,828			29,861		21,906
Data processing	3,929		4,099		2,590			10,568		7,278
Other professional services	3,687		2,843		1,906			8,053		4,984
Insurance and assessments	3,020		3,179		1,496			7,792		4,024
Intangible asset amortization	1,608		1,677		1,512			4,649		3,972
Other expense:
Loan expense	3,711		3,024		1,378			7,929		3,304
Communications	1,369		1,421		828			3,527		2,063
Other	8,275		7,670		5,669			21,302		14,493
Total operating expense	82,648		80,072		51,170			213,250		141,394
Leased equipment depreciation	2,961		3,095		—			6,056		—
Foreclosed assets expense (income), net	4,827		497		(420		)	3,463		(934		)
Acquisition, integration and reorganization costs	5,193		86,242		5,450			93,635		24,139
Total noninterest expense	$	95,629	$	169,906	$	56,200		$	316,404	$	164,599

The following tables present the components of foreclosed assets expense (income), net for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(In thousands)
Foreclosed Assets Expense:
Provision for losses	$	4,698		$	274		$	617		$	5,065		$	2,094
Maintenance costs	177			606			367			1,152			978
Gain on sale	(48		)	(383		)	(1,404		)	(2,754		)	(4,006		)
Total foreclosed assets expense (income), net	$	4,827		$	497		$	(420	)	$	3,463		$	(934	)

Third Quarter of 2014 Compared to Second Quarter of 2014

Noninterest expense decreased by $74.3 million to $95.6 million for the third quarter of 2014 compared to $169.9 million for the second quarter of 2014. The decrease was due mostly to lower acquisition, integration and reorganization costs, which decreased $81.0 million, offset by higher foreclosed assets expense of $4.3 million and higher operating expense of $2.6 million. The increase in foreclosed assets expense was due mostly to write-downs on existing properties. Operating expenses increased to $82.6 million for the third quarter of 2014 compared to $80.1 million for the second quarter of 2014 due to increases in compensation, other professional services and other expenses. Compensation expense was affected by a number of items including (a) lower base salaries and payroll taxes of $1.8 million; (b) higher incentive compensation expense of $1.9 million largely due to the level of loan and lease originations; and (c) higher restricted stock expense of $600,000 as new awards were made in May 2014. Other professional services increased due to higher legal and other consulting expenses related to corporate initiatives. Other expense increased due to higher loan-related expenses related to origination and work-out activities and an accrual for loan-related litigation exposure.

62

Third Quarter of 2014 Compared to Third Quarter of 2013

Noninterest expense increased by $39.4 million to $95.6 million for the third quarter of 2014 compared to $56.2 million for the third quarter of 2013. The increase was in all expense categories as a result of including the CapitalSource Inc. operations after its acquisition date.

Nine Months Ended September 30, 2014 Compared to Nine Months Ended September 30, 2013

Noninterest expense increased by $151.8 million to $316.4 million for the nine months ended September 30, 2014 compared to $164.6 million for the same period of 2013. The increase was due mostly to higher acquisition, integration and reorganization costs, which increased $69.5 million, and higher operating expenses of $71.9 million as a result of including the CapitalSource Inc. and FCAL operations after their respective acquisition dates.

Income Taxes

The effective tax rate for the third quarter of 2014 was 40.4% compared to 57.7% for the second quarter of 2014 and 31.8% for the third quarter of 2013. The second quarter of 2014 effective tax rate was driven higher than normal by the non-deductibility and and tax treatment of certain acquisition, integration and reorganization costs. When these items are excluded, the adjusted effective tax rate was 40.2% for the second quarter. The Company operates primarily in the states of California and Maryland and the blended statutory tax rate for federal and states is 41%.

Business Segments

The Company’s reportable segments consist of “Community Banking,” “National Lending,” and “Other.”

As a result of the CapitalSource Inc. merger, Pacific Western Bank established the CapitalSource Division, which we also refer to as the National Lending segment. The CapitalSource Division, or National Lending segment, includes the lending operations gained through the CapitalSource Inc. merger, Pacific Western Equipment Finance, and the CapitalSource Business Finance Group (formerly BFI Business Finance and First Community Financial). We reorganized our asset-based lending and leasing operations when we established the CapitalSource Division combining BFI Business Finance and First Community Financial into the Capital Source Business Finance Group, selling Celtic Capital Corporation in July 2014, and having Pacific Western Equipment Finance and the Capital Source Business Finance Group become part of the CapitalSource Division. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses, including senior secured real estate loans, equipment loans and leases, asset-based loans, lender finance loans and cash flow loans secured by the enterprise value of the borrowing entity. The CapitalSource Division’s loan and lease origination efforts are conducted through offices located in Chevy Chase, Maryland; Los Angeles and San Jose, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; New York, New York; and Midvale, Utah.

The Community Banking and National Lending segments include all of the operations of Pacific Western Bank. The Community Banking segment includes the operations of Pacific Western Bank, excluding the CapitalSource Division, and includes lending and deposit gathering activities conducted primarily through its California-based branch offices and the Bank’s treasury management function and corporate overhead. The Other segment consists of holding company operations which result in expenses principally for compensation, facilities, professional services, interest on subordinated debentures, and the non-bank subsidiary operations including interest income from a loan portfolio and related loan servicing expense. For further information, see Note 15, Business Segments, in the Notes to Condensed Consolidated Financial Statements (Unaudited) contained in "Item 1. Condensed Consolidated Financial Statements (Unaudited)."

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The following tables present information regarding our business segments as of and for the periods indicated:

	September 30, 2014
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,482,125		$	8,064,868		$	27,892		$	11,574,885
Allowance for loan and lease losses	(56,712		)	(25,187		)	—			(81,899		)
Total loans and leases, net	$	3,425,413		$	8,039,681		$	27,892		$	11,492,986
Goodwill	$	327,728		$	1,394,401		$	—		$	1,722,129
Core deposit and customer relationship intangibles, net	17,814			1,009			—			18,823
Total assets	6,492,869			9,182,617			262,859			15,938,345
Total deposits(1)	11,826,681			—			(303,244		)	11,523,437

_______________________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	September 30, 2013
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,912,885		$	470,508		$	—		$	4,383,393
Allowance for loan and lease losses	(76,496		)	(7,290		)	—			(83,786		)
Total loans and leases, net	$	3,836,389		$	463,218		$	—		$	4,299,607
Goodwill	$	190,184		$	25,678		$	—		$	215,862
Core deposit and customer relationship intangibles, net	16,604			2,074			—			18,678
Total assets	6,100,587			507,339			8,929			6,616,855
Total deposits(1)	5,467,568			—			(34,424		)	5,433,144

______________________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

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	Three Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	67,132		$	134,624		$	600		$	202,356
Interest expense	(8,851		)	(45		)	(4,614		)	(13,510		)
Intersegment interest income (expense)	5,250			(5,250		)	—			—
Net interest income (expense)	63,531			129,329			(4,014		)	188,846
Negative provision (provision) for credit losses	6,314			(11,364		)	—			(5,050		)
Gain on securities	—			—			—			—
FDIC loss sharing expense	(7,415		)	—			—			(7,415		)
Other noninterest income	7,566			9,953			6,210			23,729
Total noninterest income	151			9,953			6,210			16,314
Foreclosed assets (expense) income, net	(4,627		)	(322		)	122			(4,827		)
Intangible asset amortization	(1,517		)	(91		)	—			(1,608		)
Acquisition, integration and reorganization costs	(3,953		)	(1,240		)	—			(5,193		)
Other noninterest expense	(53,784		)	(24,835		)	(5,382		)	(84,001		)
Total noninterest expense	(63,881		)	(26,488		)	(5,260		)	(95,629		)
Intersegment noninterest income (expense)	26,411			(26,411		)	—			—
Total noninterest expense - adjusted	(37,470		)	(52,899		)	(5,260		)	(95,629		)
Earnings (loss) from continuing operations before taxes	32,526			75,019			(3,064		)	104,481
Income tax (expense) benefit	(13,870		)	(30,113		)	1,778			(42,205		)
Net earnings (loss) from continuing operations	18,656			44,906			(1,286		)	62,276
Loss from discontinued operations before taxes	(8		)	—			—			(8		)
Income tax benefit	3			—			—			3
Net loss from discontinued operations	(5		)	—			—			(5		)
Net earnings (loss)	$	18,651		$	44,906		$	(1,286	)	$	62,271

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	Three Months Ended June 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	69,977		$	132,742		$	1,644		$	204,363
Interest expense	(7,450		)	(62		)	(4,318		)	(11,830		)
Intersegment interest income (expense)	4,071			(4,071		)	—			—
Net interest income	66,598			128,609			(2,674		)	192,533
Negative provision (provision) for credit losses	4,418			(9,448		)	—			(5,030		)
Gain on securities	89			—			—			89
FDIC loss sharing expense	(8,525		)	—			—			(8,525		)
Other noninterest income	3,681			12,487			747			16,915
Total noninterest income	(4,755		)	12,487			747			8,479
Foreclosed assets (expense) income, net	(633		)	38			98			(497		)
Intangible asset amortization	(1,530		)	(147		)	—			(1,677		)
Acquisition, integration and reorganization costs	(77,713		)	(7,474		)	(1,055		)	(86,242		)
Other noninterest expense	(51,507		)	(24,484		)	(5,499		)	(81,490		)
Total noninterest expense	(131,383		)	(32,067		)	(6,456		)	(169,906		)
Intersegment noninterest income (expense)	23,533			(23,533		)	—			—
Total noninterest expense - adjusted	(107,850		)	(55,600		)	(6,456		)	(169,906		)
(Loss) earnings from continuing operations before taxes	(41,589		)	76,048			(8,383		)	26,076
Income tax benefit (expense)	12,081			(30,259		)	3,332			(14,846		)
Net (loss) earnings from continuing operations	(29,508		)	45,789			(5,051		)	11,230
Loss from discontinued operations before taxes	(1,151		)	—			—			(1,151		)
Income tax benefit	476			—			—			476
Net loss from discontinued operations	(675		)	—			—			(675		)
Net (loss) earnings	$	(30,183	)	$	45,789		$	(5,051	)	$	10,555

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	Three Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	72,873		$	12,285		$	—		$	85,158
Interest expense	(1,692		)	(108		)	(1,069		)	(2,869		)
Intersegment interest income (expense)	353			(353		)	—			—
Net interest income	71,534			11,824			(1,069		)	82,289
Negative provision (provision) for credit losses	5,782			(1,615		)	—			4,167
FDIC loss sharing expense	(7,032		)	—			—			(7,032		)
Other noninterest income	5,466			1,443			5,250			12,159
Total noninterest income	(1,566		)	1,443			5,250			5,127
Foreclosed assets income, net	420			—			—			420
Intangible asset amortization	(1,354		)	(158		)	—			(1,512		)
Acquisition, integration and reorganization costs	(5,190		)	—			(260		)	(5,450		)
Other noninterest expense	(42,435		)	(5,822		)	(1,401		)	(49,658		)
Total noninterest expense	(48,559		)	(5,980		)	(1,661		)	(56,200		)
Earnings (loss) from continuing operations before taxes	27,191			5,672			2,520			35,383
Income tax (expense) benefit	(9,996		)	(2,378		)	1,131			(11,243		)
Net earnings (loss) from continuing operations	17,195			3,294			3,651			24,140
Earnings from discontinued operations before taxes	39			—			—			39
Income tax expense	(16		)	—			—			(16		)
Net earnings from discontinued operations	23			—			—			23
Net earnings	$	17,218		$	3,294		$	3,651		$	24,163

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	Nine Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	214,704		$	278,131		$	2,244		$	495,079
Interest expense	(17,528		)	(184		)	(9,973		)	(27,685		)
Intersegment interest income (expense)	9,543			(9,543		)	—			—
Net interest income (expense)	206,719			268,404			(7,729		)	467,394
Negative provision (provision) for credit losses	11,558			(20,994		)	—			(9,436		)
Gain on securities	4,841			—			—			4,841
FDIC loss sharing expense	(27,370		)	—			—			(27,370		)
Other noninterest income	18,144			26,885			6,984			52,013
Total noninterest income	(4,385		)	26,885			6,984			29,484
Foreclosed assets (expense) income, net	(3,399		)	(284		)	220			(3,463		)
Intangible asset amortization	(4,238		)	(411		)	—			(4,649		)
Acquisition, integration and reorganization costs	(83,866		)	(8,714		)	(1,055		)	(93,635		)
Other noninterest expense	(146,281		)	(55,892		)	(12,484		)	(214,657		)
Total noninterest expense	(237,784		)	(65,301		)	(13,319		)	(316,404		)
Intersegment noninterest income (expense)	49,944			(49,944		)	—			—
Total noninterest expense - adjusted	(187,840		)	(115,245		)	(13,319		)	(316,404		)
Earnings from continuing operations before taxes	26,052			159,050			(14,064		)	171,038
Income tax (expense) benefit	(14,123		)	(63,703		)	6,199			(71,627		)
Net earnings (loss) from continuing operations	11,929			95,347			(7,865		)	99,411
Loss from discontinued operations before taxes	(2,572		)	—			—			(2,572		)
Income tax benefit	1,067			—			—			1,067
Net loss from discontinued operations	(1,505		)	—			—			(1,505		)
Net earnings (loss)	$	10,424		$	95,347		$	(7,865	)	$	97,906

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	Nine Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	189,101		$	36,957		$	—		$	226,058
Interest expense	(6,422		)	(447		)	(2,734		)	(9,603		)
Intersegment interest income (expense)	1,284			(1,284		)	—			—
Net interest income	183,963			35,226			(2,734		)	216,455
Negative provision (provision) for credit losses	6,053			(3,181		)	—			2,872
Gain on securities	5,631			—			—			5,631
FDIC loss sharing expense	(15,579		)	—			—			(15,579		)
Other noninterest income	10,240			2,579			5,299			18,118
Total noninterest income	292			2,579			5,299			8,170
Foreclosed assets income, net	934			—			—			934
Intangible asset amortization	(3,474		)	(498		)	—			(3,972		)
Acquisition, integration and reorganization costs	(23,879		)	—			(260		)	(24,139		)
Other noninterest expense	(115,352		)	(17,855		)	(4,215		)	(137,422		)
Total noninterest expense	(141,771		)	(18,353		)	(4,475		)	(164,599		)
Earnings (loss) from continuing operations before taxes	48,537			16,271			(1,910		)	62,898
Income tax (expense) benefit	(17,038		)	(6,814		)	2,984			(20,868		)
Net earnings from continuing operations	31,499			9,457			1,074			42,030
Loss from discontinued operations before taxes	(42		)	—			—			(42		)
Income tax benefit	18			—			—			18
Net loss from discontinued operations	(24		)	—			—			(24		)
Net earnings	$	31,475		$	9,457		$	1,074		$	42,006

Third Quarter of 2014 Compared to Third Quarter of 2013

Net earnings for the Community Banking segment increased $1.4 million for the third quarter of 2014 to $18.6 million, compared to net earnings of $17.2 million in the third quarter of 2013. Net earnings before taxes increased $5.3 million as a result of lower noninterest expense of $11.1 million and higher noninterest income of $1.7 million, offset by lower net interest income of $8.0 million. The decrease in noninterest expense is due mostly to a higher allocation of expenses from the Community Banking segment to the National Lending segment than in the prior year, offset by higher noninterest expense which is a result of the growth in the Bank's lending and deposit operations. The increase in noninterest income is primarily due to higher gains on early repayment of leases. Net interest income decreased compared to the prior year period due to lower average loan and lease balances as $523 million of loans were transferred from the Community Banking segment to the National Lending segment in the second quarter of 2014.

For further information on the Community Banking segment regarding results of operations, loans, credit quality, deposits and liquidity, see the sections titled “Results of Operations” and “Balance Sheet Analysis”.

Net earnings for the National Lending segment increased $41.6 million for the third quarter of 2014 to $44.9 million, compared to $3.3 million for the third quarter of 2013. The increase in net earnings was a result of the CapitalSource Inc. merger which increased interest-earning assets and net interest income in 2014. Loans increased $7.6 billion to $8.1 billion in the third quarter of 2014 from $470.5 million for the third quarter of 2013. Noninterest expense for the National Lending segment increased $46.9 million largely as a result of the addition of the CapitalSource Division operations.

The net loss for the Other segment increased $4.9 million for the third quarter of 2014 as compared to third quarter 2013 due primarily to higher interest expense of $3.5 million due to a higher balance of subordinated debentures acquired in connection with the CapitalSource Inc. merger. The Other segment consists of holding company operations resulting in expenses principally for compensation, facilities, professional services and interest on subordinated debentures, and non-bank subsidiary operations

69

including interest income from a $28 million loan portfolio that is being wound down and loan servicing costs paid to the National Lending segment for such portfolio.

Nine Months Ended September 30, 2014 Compared to Nine Months Ended September 30, 2013

Net earnings for the Community Banking segment decreased $21.1 million for the first nine months of 2014 to $10.4 million, compared to earnings of $31.5 million in the same period of 2013. The decrease in net earnings was due mainly to the $60.0 million increase in acquisition, integration and reorganization costs. Excluding acquisition, integration and reorganization costs, net earnings before taxes increased $37.5 million due to (a) higher net interest income of $22.8 million, (b) lower provision for credit losses of $5.5 million, and (c) higher allocation of expenses from the Community Banking segment to the National Lending segment of $49.9 million offset by higher noninterest expense of $36.0 million and lower noninterest income of $4.7 million. The 2014 net interest income for the Community Banking segment increased $22.8 million due mostly to an increase in the discount accretion on loans acquired during 2014 and 2013. Noninterest expense increased due to the growth in the Bank's lending and deposit operations which was mostly a result of the CapitalSource Inc. merger and FCAL acquisition. Noninterest income decreased due to higher FDIC loss sharing expense.

For further information on the Community Banking segment regarding results of operations, loans, credit quality, deposits and liquidity, see the sections titled “Results of Operations” and “Balance Sheet Analysis”.

Net earnings for the National Lending segment increased $85.9 million for the first nine months of 2014 compared to 2013. The increase was primarily the result of the April 2014 CapitalSource Inc. merger, which increased interest-earning assets and net interest income in 2014. Loans increased $7.6 billion to $8.1 billion in the third quarter of 2014 from $470.5 million for the third quarter of 2013.

Balance Sheet Analysis

Investment Portfolio

The following table presents the components, yields, and durations of our securities available-for-sale as of the date indicated:

	September 30, 2014
Security Type:	Amortized Cost		Fair Value		Yield(1)	Duration (in years)
	(Dollars in thousands)
Residential mortgage-backed securities:
Government agency and government-sponsored enterprise
pass through securities	$	537,969	$	555,087	2.79%	3.8
Government agency and government-sponsored enterprise
collateralized mortgage obligations	280,820		279,791		2.57%	4.9
Private label collateralized mortgage obligations	40,393		47,902		7.57%	2.3
Municipal securities (2)	473,426		482,427		2.96%	5.7
Corporate debt securities	110,032		112,143		3.84%	2.5
Government-sponsored enterprise debt securities	36,214		36,382
Other securities	26,044		25,949		0.62%	3.6
Total securities available-for-sale (2)	$	1,504,898	$	1,539,681	2.98%	4.5

_______________________________________

(1) Represents the yield for the month of September 30, 2014.

(2) The tax equivalent yield was 4.32% and 3.41% for municipal securities and total securities available-for-sale, respectively.

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The following table shows the geographic composition of the majority of our municipal securities portfolio as of the date indicated:

	September 30, 2014
Municipal Securities by State:	Carrying Value		% of Total
	(Dollars in thousands)
Texas	$	91,831	19	%
Washington	45,208		9	%
New York	34,069		7	%
Colorado	30,251		6	%
Illinois	26,686		6	%
Ohio	25,183		5	%
California	22,213		5	%
Hawaii	16,562		3	%
Massachusetts	15,808		3	%
Florida	15,799		3	%
Total of 10 largest states	323,610		66	%
All other states	158,817		34	%
Total municipal securities	$	482,427	100	%

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Loan and Leases

The following table presents the balance of our total gross loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2014				June 30, 2014				December 31, 2013
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(Dollars in thousands)
Real estate mortgage:
Hospitality	$	530,628	5	%	$	560,832	5	%	$	181,735	4	%
SBA	357,923		3	%	352,492		3	%	45,166		1	%
Commercial real estate	2,492,883		22	%	2,390,066		22	%	1,712,125		40	%
Healthcare real estate	1,006,164		9	%	976,539		9	%	189,737		4	%
Multi-family	811,234		7	%	857,907		8	%	330,229		8	%
Other	514,283		3	%	457,746		4	%	334,249		8	%
Total real estate mortgage	5,713,115		49	%	5,595,582		51	%	2,793,241		65	%
Real estate construction:
Residential	72,881		1	%	73,488		1	%	58,898		1	%
Commercial	218,389		2	%	235,019		2	%	159,308		4	%
Total real estate construction	291,270		3	%	308,507		3	%	218,206		5	%
Total real estate loans	6,004,385		52	%	5,904,089		54	%	3,011,447		70	%
Commercial:
Collateralized	429,011		4	%	446,754		4	%	587,326		13	%
Unsecured	127,150		1	%	145,632		1	%	153,881		4	%
Asset-based	1,594,488		14	%	1,488,267		13	%	202,428		5	%
Cash flow	2,341,511		20	%	2,167,135		19	%	—		—	%
Equipment finance	928,460		8	%	932,554		8	%	273,483		6	%
SBA	41,129		—	%	42,333		—	%	28,641		1	%
Total commercial	5,461,749		47	%	5,222,675		45	%	1,245,759		29	%
Consumer	108,751		1	%	63,341		1	%	55,146		1	%
Total gross loans and leases(1)	$	11,574,885	100	%	$	11,190,105	100	%	$	4,312,352	100	%

_______________________________________

(1) Includes PCI loans of $351.4 million, $398.4 million and $382.8 million at September 30, 2014, June 30, 2014 and December 31, 2013, respectively, of which the majority are Other Real Estate Mortgage loans.

The following table presents a roll forward of the loan and lease portfolio by segment for the period indicated:

	Three Months Ended September 30, 2014
	Community			National
Loan and Lease Roll Forward by Portfolio Segment(1):	Banking			Lending			Total
	(In thousands)
Beginning balance	$	3,521,367		$	7,668,738		$	11,190,105
Loans and leases originated and purchased	236,384			738,274			974,658
Existing loans and leases:
Principal repayments, net(2)	(269,365		)	(266,393		)	(535,758		)
Loan and lease sales	(223		)	(12,816		)	(13,039		)
Transfers to held for sale	—			(33,125		)	(33,125		)
Charge-offs	(6,038		)	(1,918		)	(7,956		)
Ending balance	$	3,482,125		$	8,092,760		$	11,574,885

_______________________________________

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

(2) Includes principal repayments on existing loans, changes in revolving lines of credit (repayments and draws) and other changes within the loan portfolio.

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Our real estate loan portfolio is predominantly commercial-related loans and as such does not expose us to the risks generally associated with residential mortgage loans such as option ARM, interest-only, or subprime mortgage loans. Our portfolio does expose us to risk elements associated with mortgage loans on commercial property. Commercial real estate mortgage loan repayments typically do not rely on the sale of the underlying collateral, but instead rely on the income producing potential of the collateral as the source of repayment. Ultimately, though, due to the loan amortization period generally being greater than the contractual loan term, the borrower may be required to refinance the loan, either with us or another lender, or pay off the loan, by selling the underlying collateral.

At September 30, 2014, we had $410.0 million of commercial real estate mortgage loans maturing over the next 12 months. For any of these loans, in the event that we provide a concession through a refinance or modification which we would not ordinarily consider in order to protect as much of our investment as possible, such loans may be considered troubled debt restructurings ("TDRs") even though they performed throughout their terms. The circumstances regarding any modification and a borrower’s specific situation, such as their ability to obtain financing from another source at similar market terms, are evaluated on an individual basis to determine if a TDR has occurred. Higher levels of TDRs may lead to increased classified assets and credit loss provisions.

The following table presents the composition of our total real estate mortgage loan portfolio as of the dates indicated:

	September 30, 2014				June 30, 2014				December 31, 2013
Loan Category:	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(Dollars in thousands)
Commercial real estate mortgage:
Industrial/warehouse	$	487,902	9	%	$	489,043	9	%	$	354,345	13	%
Retail	453,835		8	%	446,080		8	%	346,370		12	%
Office buildings	821,076		14	%	732,807		13	%	432,204		16	%
Owner-occupied	584,937		10	%	577,029		10	%	233,195		8	%
Hotel	532,991		9	%	563,248		10	%	181,735		7	%
Healthcare	1,006,164		19	%	976,539		19	%	189,737		7	%
Mixed use	131,101		2	%	60,514		1	%	68,966		2	%
Gas station	12,654		—	%	13,127		—	%	35,224		1	%
Self storage	62,820		1	%	67,077		1	%	73,760		3	%
Restaurant	18,262		—	%	24,459		—	%	21,510		1	%
Land acquisition/development	7,907		—	%	8,858		—	%	4,420		—	%
Unimproved land	7,870		—	%	8,702		—	%	12,517		—	%
Other	260,079		5	%	312,446		6	%	174,780		6	%
Total commercial real estate mortgage	4,387,598		77	%	4,279,929		77	%	2,128,763		76	%
Residential real estate mortgage:
Multi-family	811,234		15	%	857,907		16	%	330,229		12	%
Single family owner-occupied	183,211		3	%	185,990		3	%	212,508		8	%
Single family nonowner-occupied	251,559		4	%	192,413		3	%	33,741		1	%
Mixed use	11,478		—	%	11,305		—	%	10,701		—	%
HELOCs	68,035		1	%	68,038		1	%	77,299		3	%
Total residential real estate mortgage	1,325,517		23	%	1,315,653		23	%	664,478		24	%
Total gross real estate mortgage loans	$	5,713,115	100	%	$	5,595,582	100	%	$	2,793,241	100	%

Allowance for Credit Losses on Non-PCI Loans and Leases

The allowance for credit losses on Non-PCI loans and leases is the combination of the allowance for loan and lease losses and the reserve for unfunded loan commitments. The allowance for loan and lease losses is reported as a reduction of outstanding loan and lease balances and the reserve for unfunded loan commitments is included within “Accrued interest payable and other liabilities” on the condensed consolidated balance sheets. Generally, as unfunded commitments are funded, the related amount in the reserve for unfunded loan commitments is transferred from the reserve for unfunded loan commitments to the allowance for loan and lease losses. The following discussion is for Non-PCI loans and leases and the allowance for credit losses thereon. Refer to “Balance Sheet Analysis-Allowance for Credit Losses on PCI Loans” for the policy on PCI loans. For loans and leases acquired and measured at fair value and deemed non-impaired on the acquisition date, our allowance methodology measures deterioration in credit quality or other inherent risks related to these acquired assets that may occur after the purchase date.

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The allowance for loan and lease losses is maintained at a level deemed appropriate by management to adequately provide for known and inherent risks in the loan and lease portfolio and other extensions of credit at the balance sheet date. The allowance is based upon our continual review of the credit quality of the loan and lease portfolio which includes loan and lease payment performance and related historical payment trends, borrowers' compliance with loan agreements, borrowers' current and budgeted financial performance, collateral valuation trends, and current economic factors and external conditions that may affect our borrowers' ability to pay. Loans and leases that are deemed to be uncollectible are charged off and deducted from the allowance. The provision for loan and lease losses and recoveries on loans and leases previously charged off are added to the allowance.

The allowance for loan and lease losses contains a specific reserve component for loans and leases determined to be impaired and a general reserve component for loans and leases with no credit impairment.

A loan or lease is considered impaired when it is probable that we will be unable to collect all amounts due according to the original contractual terms of the agreement. We assess our loans for impairment on an on-going basis using certain criteria such as payment performance, borrower reported financial results and budgets, and other external factors when appropriate. We measure impairment of a loan based upon the fair value of the loan’s collateral if the loan is collateral-dependent or the present value of cash flows, discounted at the loan’s effective interest rate, if the loan is not collateral-dependent. We measure impairment of a lease based upon the present value of the scheduled lease and residual cash flows, discounted at the lease's effective interest rate. To the extent a loan or lease exceeds the estimated collectible value, a specific reserve or charge-off is recorded depending upon the certainty of the estimate of loss. Smaller balance loans (under $250,000), with a few exceptions for certain loan types, are generally not individually assessed for impairment but are evaluated collectively.

The methodology we use to estimate the general reserve component of our allowance for credit losses considers both objective and subjective criteria. The objective criteria uses our actual historical loan and lease charge-off experience on pools of similar loans and leases to establish loss factors that are applied to our current loan and lease balances to estimate credit losses. The pools used to establish the loss factors for estimating the general reserve component are comprised of similar loan products and consider the credit risk ratings and the migration of the ratings over a historical timeframe. Greater reserve weight is placed on loans with more adverse credit risk ratings. The migration of the ratings is updated quarterly based on historic losses and movement of loans between ratings. We recognize that the determination of the allowance for loan and lease losses is sensitive to the assigned credit risk ratings and inherent loss rates at any given point in time. To ensure the accuracy of our credit risk ratings, an independent credit review function assesses the ratings assigned to loans on an on-going basis. The subjective inputs used to establish the loss factors consider delinquency and nonaccrual trends, collateral valuation trends, and current economic factors and external conditions that may affect our borrowers' ability to pay.

The reserve for unfunded commitments is estimated by applying to the unfunded commitment amounts the same methodology used for the allowance for loan and lease losses. For unfunded commitments related to loans with borrowing availability, we compute the reserve for unfunded commitments based only on the expected usage of such borrowing availability.

The credit risk ratings which are applied to every loan and lease is one of the following four categories: "pass," "special mention," "substandard," and "doubtful," which we define as follows:

• Pass: Loans and leases classified as "pass" are not adversely classified and collection and repayment in full is expected.

• Special Mention: Loans and leases classified as "special mention" have a potential weakness that requires management's attention. If not addressed, these potential weaknesses may result in further deterioration in the borrower's ability to repay the loan or lease.

• Substandard: Loans and leases classified as "substandard" have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the possibility that we will sustain some loss if the weaknesses are not corrected.

• Doubtful: Loans and leases classified as "doubtful" have all the weaknesses of those classified as "substandard," with the additional trait that the weaknesses make collection or repayment in full highly questionable and improbable.

In addition, we may refer to the loans and leases classified as "substandard" and "doubtful" together as "classified" loans and leases. For additional information on classified loans and leases, see Note 6, Loans and Leases, in the Notes to Condensed Consolidated Financial Statements (Unaudited) contained in "Item 1. Condensed Consolidated Financial Statements (Unaudited)."

Management believes that the allowance for credit losses is appropriate for the known and inherent risks in our Non-PCI loan and lease portfolio and that the credit risk ratings and inherent loss rates currently assigned are appropriate. It is possible that others, given the same information, may at any point in time reach different conclusions that could result in a significant impact to the Company's financial statements. In addition, current credit risk ratings are subject to change as we continue to review loans and leases within our portfolio and as our borrowers are impacted by economic trends within their market areas. To the extent we experience, for example, increased levels of documentation deficiencies, adverse changes in collateral values, or negative changes in economic and business conditions that adversely affect our borrowers, our classified loans and leases may increase. Higher

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levels of classified loans and leases generally result in higher allowances for credit losses. Although we have established an allowance for credit losses that we consider appropriate, there can be no assurance that the established allowance will be sufficient to absorb related losses in the future.

The following table presents information regarding the allowance for credit losses on Non-PCI loans and leases as of the dates indicated:

Non-PCI Allowance for Credit Losses Data:	September 30, 2014			June 30, 2014			December 31, 2013			September 30, 2013
	(Dollars in thousands)
Allowance for loan and lease losses	$	63,084		$	65,523		$	60,241		$	60,551
Reserve for unfunded loan commitments	5,913			6,844			7,575			7,250
Total allowance for credit losses	$	68,997		$	72,367		$	67,816		$	67,801
Allowance for credit losses to loans and leases	0.61		%	0.67		%	1.73		%	1.72		%
Adjusted allowance for credit losses to loans and leases	1.57		%	2.07		%	2.34		%	2.43		%
Allowance for credit losses to nonaccrual loans and leases	77.6		%	74.8		%	145.0		%	133.3		%
Allowance for credit losses to nonperforming assets	53.3		%	48.0		%	66.1		%	63.5		%

The following table presents the changes in our allowance for credit losses on Non-PCI loans and leases for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Non-PCI Allowance for Credit Losses:	2014			2014			2013			2014			2013
	(Dollars in thousands)
Allowance for credit losses, beginning of period	$	72,367		$	66,955		$	69,926		$	67,816		$	72,119
Provision for credit losses:
Addition to (reduction in) allowance for loan and lease losses	3,684			5,131			(570		)	9,415			(1,030		)
Addition to (reduction in) reserve for unfunded loan
commitments	(931		)	(131		)	570			(1,662		)	1,030
Provision for credit losses	2,753			5,000			—			7,753			—
Loans and leases charged off:
Real estate mortgage	(395		)	(487		)	(281		)	(976		)	(3,840		)
Commercial	(7,282		)	(326		)	(2,439		)	(9,049		)	(4,631		)
Consumer	(171		)	(17		)	(75		)	(203		)	(111		)
Total loans and leases charged off	(7,848		)	(830		)	(2,795		)	(10,228		)	(8,582		)
Recoveries on loans charged off:
Real estate mortgage	1,312			376			152			1,949			1,665
Real estate construction	24			64			179			112			514
Commercial	337			587			324			1,301			2,028
Consumer	52			215			15			294			57
Total recoveries on loans charged off	1,725			1,242			670			3,656			4,264
Net (charge-offs) recoveries	(6,123		)	412			(2,125		)	(6,572		)	(4,318		)
Allowance for credit losses, end of period	$	68,997		$	72,367		$	67,801		$	68,997		$	67,801
Ratios:
Annualized net charge-offs to average loans and leases	0.22		%	0.02		%	0.22		%	0.11		%	0.17		%

Allowance for Credit Losses on PCI Loans

The PCI loans are subject to our internal and external credit review. If deterioration in the expected cash flows results in a reserve requirement, a provision for credit losses is charged to earnings. For PCI loans, the allowance for loan losses is measured at the end of each financial reporting period based on expected cash flows. Decreases or (increases) in the amount and changes in the timing of expected cash flows on the PCI loans as of the financial reporting date compared to those previously estimated are usually recognized by recording a provision or a (negative provision) for credit losses on such loans.

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The following table presents the changes in our allowance for credit losses on PCI loans for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
PCI Allowance for Credit Losses:	2014			2014			2013			2014			2013
	(In thousands)
Allowance for credit losses on PCI loans, beginning of period	$	16,626		$	21,200		$	27,397		$	21,793		$	26,069
Provision (negative provision)	2,297			30			(4,167		)	1,683			(2,872		)
Net (charge-offs) recoveries	(108		)	(4,604		)	5			(4,661		)	38
Allowance for credit losses on PCI loans, end of period	$	18,815		$	16,626		$	23,235		$	18,815		$	23,235

Nonperforming Assets and Performing Restructured Loans

The following table presents nonperforming assets and performing restructured loans information as of the dates indicated:

	September 30, 2014			June 30, 2014			December 31, 2013			September 30, 2013
	(Dollars in thousands)
Nonaccrual Non-PCI loans and leases	$	88,948		$	96,802		$	46,774		$	50,845
Nonaccrual PCI loans(1)	27,670			38,467			—			—
Total nonaccrual loans	116,618			135,269			46,774			50,845
Foreclosed assets, net	40,524			53,821			55,891			55,972
Total nonperforming assets	$	157,142		$	189,090		$	102,665		$	106,817
Performing restructured loans(3)	$	34,308		$	33,741		$	41,648		$	80,237
Nonaccrual loans and leases to loans and leases (2)	1.01		%	1.21		%	1.19		%	1.29		%
Nonperforming assets to loans and leases and foreclosed
assets, net (2)	1.35		%	1.68		%	2.48		%	2.67		%

_______________________________________

(1) Represents legacy CapitalSource borrowing relationships placed on nonaccrual status as of the acquisition date.

(2) Calculation includes total loans and leases as of September 30, 2014 and June 30, 2014. For prior periods, calculation excludes PCI loans.

(3) Excludes PCI loans.

Nonperforming assets include Non-PCI and PCI nonaccrual loans and leases and foreclosed assets and totaled $157.1 million at September 30, 2014 compared to $189.1 million at June 30, 2014. The $32.0 million decrease in nonperforming assets was due to a $18.7 million decrease in nonaccrual loans and leases due to resolutions and charge-offs for the period and a $13.3 million decrease in foreclosed assets due to sales and write-downs for the period. The nonperforming assets ratio decreased to 1.35% at September 30, 2014 from 1.68% at June 30, 2014.

Nonaccrual Loans and Leases

The $18.7 million decrease in nonaccrual loans and leases during the third quarter of 2014 was attributable mainly to (1) an $8.6 million change in Day 1 estimated goodwill related to the fair value adjustment of a PCI nonaccrual loan added in the CapitalSource Inc. merger, (2) $6.8 million in charge-offs, and (3) $10.2 million in principal payments, returns to accrual status, and other reductions, offset partially by $6.9 million in additions.

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

	Nonaccrual Loans and Leases								Accruing and
	September 30, 2014				June 30, 2014				30 - 89 Days Past Due
	Amount		% of Loan Category		Amount		% of Loan Category		September 30, 2014		June 30, 2014
	(Dollars in thousands)
Real estate mortgage:
Hospitality	$	6,451	1.0	%	$	6,552	1.2	%	$	—	$	—
SBA	7,483		2.0	%	8,032		2.3	%	529		1,233
Other	26,575		1.0	%	28,098		0.6	%	4,014		1,427
Total real estate mortgage	40,509		1.0	%	42,682		0.8	%	4,543		2,660
Real estate construction:
Residential	925		1.0	%	927		1.3	%	—		—
Commercial	2,703		1.0	%	2,737		1.2	%	1,190		—
Total real estate construction	3,628		1.0	%	3,664		1.2	%	1,190		—
Commercial:
Collateralized	5,165		1.0	%	11,247		2.5	%	—		575
Unsecured	226		—	%	322		0.2	%	1		145
Asset-based	5,003		—	%	4,874		0.3	%	—		—
Cash flow	15,958		1.0	%	15,793		0.7	%	—		—
Equipment finance	12,885		1.0	%	10,576		1.1	%	—		—
SBA	2,039		5.0	%	4,096		9.7	%	—		75
Total commercial	41,276		1.0	%	46,908		0.9	%	1		795
Consumer	3,535		3.0	%	3,548		0.6	%	165		128
Total Non-PCI loans and leases	$	88,948	1.0	%	$	96,802	0.9	%	$	5,899	$	3,583

The following table lists the ten largest Non-PCI lending relationships on nonaccrual status, excluding SBA-related loans, as of the date indicated:

September 30, 2014 Nonaccrual Amount		Description
(In thousands)
$	15,723	Two healthcare cash flow loans secured by enterprise value. Borrower is current on principal and interest payments, but credit risk has increased due a decline in performance.
6,451		Two loans, each secured by a hotel in San Diego County. The borrower is paying according to the restructured terms of each loan.
5,847		Loan secured by 2nd trust deeds on two single family residences in Los Angeles County.
4,616		Loans secured by equipment used for coal production. Borrower is current on principal and interest payments but operating performance has declined.(1)
4,469		Asset based loan secured by consumer sales installment contracts. Although operating performance of the borrower has declined, loan payments have remained current and the loan is fully secured by performing receivables.
3,484		Two loans secured by various residential and commercial properties located predominantly in San Luis Obispo County.
3,240		Equipment leases secured by coal mining equipment. Borrower is current on lease payments.
3,154		Loan secured by an industrial building in Santa Barbara County.
2,652		Two loans that are both unsecured. The borrower is paying according to the restructured terms of each loan.
2,436		Two equipment leases secured by the inventory management system of a specialty retailer. Lease payments are current.
$	52,073	Total

_________________________________

(1) New nonaccrual in third quarter of 2014.

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Foreclosed Assets

The following table presents the components of foreclosed assets (primarily other real estate owned, or OREO) as of the dates indicated:

Property Type:	September 30, 2014		June 30, 2014		December 31, 2013		September 30, 2013
	(In thousands)
Commercial real estate	$	2,559	$	10,770	$	15,753	$	18,826
Construction and land development	27,731		32,682		35,063		36,131
Multi-family	835		835		835		989
Single family residence	13		31		186		26
Total OREO, net	31,138		44,318		51,837		55,972
Other foreclosed assets	9,386		9,503		4,054		—
Total foreclosed assets	$	40,524	$	53,821	$	55,891	$	55,972

Foreclosed assets decreased $13.3 million during the third quarter of 2014 as a result of sales of $8.6 million and write downs of $4.7 million.

Performing Restructured Loans

Non-PCI performing restructured loans increased by $0.6 million during the third quarter of 2014 to $34.3 million at September 30, 2014. The increase was attributable primarily to $2.7 million in additions, offset partially by $2.3 million in payoffs. At September 30, 2014, we had $19.2 million in real estate mortgage loans, $9.1 million in real estate construction loans, $5.9 million in commercial loans, and $120,000 in consumer loans that were accruing interest under the terms of troubled debt restructurings.

The majority of the performing restructured loans were on accrual status prior to the loan modifications and have remained on accrual status after the loan modifications due to the borrowers making payments before and after the restructurings. In these circumstances, generally, a borrower may have had a fixed-rate loan that they continued to repay, but may be having cash flow difficulties. In an effort to work with certain borrowers, we have agreed to interest rate reductions and/or interest-only payments for a period of time. In these cases, we do not forgive principal or extend the maturity date as part of the loan modification. As a result of the current economic environment, we anticipate loan restructurings to continue.

PCI Delinquent and Nonaccrual Loans

Loans accounted for as PCI are generally considered accruing and performing loans as the loans accrete their discount to interest income over the estimated life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. If the timing and amount of future cash flows is not reasonably estimable, the loans are classified as nonaccrual loans and interest income is not recognized until the timing and amount of future cash flows can be reasonably estimated. As of September 30, 2014, there are $27.7 million of PCI loans on nonaccrual status and included in the delinquency table below.

The following table presents a summary of the borrowers' underlying payment status of PCI loans as of the dates indicated:

	September 30, 2014		June 30, 2014		December 31, 2013		September 30, 2013
	(In thousands)
Current	$	309,129	$	319,074	$	326,152	$	368,487
30 to 89 days past due	3,685		29,610		4,784		16,321
90 days or more past due	38,565		49,752		51,860		47,949
Total	$	351,379	$	398,436	$	382,796	$	432,757

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Deposits

The following table presents the balance of each major category of deposits at the dates indicated:

	September 30, 2014				June 30, 2014				December 31, 2013
Deposit Category:	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(Dollars in thousands)
Noninterest-bearing deposits	$	2,842,488	25	%	$	2,701,434	23	%	$	2,318,446	44	%
Interest checking deposits	683,014		6		587,418		5		620,622		12
Money market deposits	1,721,563		15		1,688,773		14		1,458,910		28
Savings deposits	759,893		6		760,553		7		218,638		4
Total core deposits	6,006,958		52		5,738,178		49		4,616,616		88
Time deposits under $100,000	2,267,013		20		2,251,473		19		225,360		4
Time deposits $100,000 and over	3,249,466		28		3,678,146		32		439,011		8
Total time deposits	5,516,479		48		5,929,619		51		664,371		12
Total deposits	$	11,523,437	100	%	$	11,667,797	100	%	$	5,280,987	100	%

Total deposits decreased $0.1 billion during the third quarter to $11.5 billion at September 30, 2014, due to a decrease in time deposits of $0.4 billion partially offset by an increase in core deposits of $0.3 billion. The remaining unamortized purchase accounting premium on acquired CapitalSource Inc. time deposits as of September 30, 2014 was $5.9 million with a weighted average life of eleven months. Organic core deposit growth was $269 million in the third quarter, including $85 million generated from CapitalSource Division borrowers.

The following table summarizes time deposits together with their weighted average contractual rate and estimated effective rate for the maturity horizons as of the date indicated:

	September 30, 2014
Maturity:	Time Deposits Under $100,000		Time Deposits $100,000 or More		Total Time Deposits		Contractual Rate	Estimated Effective Rate
	(Dollars in thousands)
Due in three months or less	$	611,767	$	925,768	$	1,537,535	0.81%	0.65%
Due in over three months through six months	539,313		735,895		1,275,208		0.77%	0.67%
Due in over six months through twelve months	892,299		1,327,287		2,219,586		0.78%	0.72%
Due in over 12 months through 24 months	152,307		179,141		331,448		1.01%	0.72%
Due in over 24 months	71,327		81,375		152,702		0.97%	0.70%
Total	$	2,267,013	$	3,249,466	$	5,516,479	0.80%	0.69%

Regulatory Matters

Capital

Bank regulatory agencies measure capital adequacy through standardized risk-based capital guidelines that compare different levels of capital (as defined by such guidelines) to risk-weighted assets and off-balance sheet obligations. Banks and bank holding companies considered to be “well capitalized” must maintain a minimum Tier 1 leverage ratio of 5%, a minimum Tier 1 risk-based capital ratio of 6.0%, and a minimum total risk-based capital ratio of 10%. Regulatory capital requirements limit the amount of deferred tax assets that may be included when determining the amount of regulatory capital. Deferred tax asset amounts in excess of the calculated limit are deducted from regulatory capital. At September 30, 2014, such amount was $178.6 million for the Company and $1.0 million for the Bank. No assurance can be given that the regulatory capital deferred tax asset limitation will not increase in the future. See "New Capital Rules" below for information on the new capital standards effective January 1, 2015.

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The following table presents regulatory capital requirements and our regulatory capital ratios as of the date indicated:

	September 30, 2014
	Pacific Western Bank		PacWest Bancorp Consolidated		Well Capitalized Requirement
Tier-1 Leverage	11.74	%	12.17	%	5.00	%
Tier-1 Risk-Based Capital	12.74		13.24		6.00
Total Risk-Based Capital	13.44		16.24		10.00
Tangible common equity ratio	11.60		12.24		N/A

Subordinated Debentures

The Company issued subordinated debentures to trusts that were established by us or entities we have acquired, which, in turn, issued trust preferred securities. The amount of subordinated debentures totaled $433.5 million at September 30, 2014 and includes $301.9 million of debentures acquired in connection with the CapitalSource Inc. merger. The Company includes in Tier 1 capital an amount of trust preferred securities equal to no more than 25% of the sum of all core capital elements, which is generally defined as shareholders’ equity less goodwill, net of any related deferred income tax liability. At September 30, 2014, the amount of trust preferred securities included in Tier I capital was $131.0 million, which is comprised of the trust preferred securities issued by us or bank holding companies we have acquired. The acquired CapitalSource Inc. trust preferred securities are ineligible for inclusion in Tier 1 capital but are included in Tier 2 capital. The $131.0 million of trust preferred securities are currently grandfathered as Tier 1 capital under the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, under new capital rules approved in July 2013 by the FRB and FDIC, as a result of the Company having exceeded $15 billion in consolidated total assets, beginning in 2015, only 25% of the Company’s $131.0 million of trust preferred securities currently outstanding will be included in Tier 1 capital, and in 2016, none of the Company’s trust preferred securities will be included in Tier 1 capital. Further, under such rules, trust preferred securities no longer included in the Company’s Tier 1 capital may be included as a component of Tier 2 capital on a permanent basis without phase-out. See “-New Capital Rules” below. If the $131 million of trust preferred securities are excluded from regulatory capital, we remain “well capitalized” at September 30, 2014.

New Capital Rules

In July 2013, the Company’s primary federal regulator, the FRB, and the Bank’s primary federal regulator, the FDIC, approved final rules (the “New Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The New Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The New Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including the Company and the Bank, as compared to the current U.S. general risk-based capital rules. The New Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The New Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing general risk-weighting approach, which was derived from the Basel Committee’s 1988 “Basel I” capital accords, with a more risk-sensitive approach based, in part, on the “standardized approach” in the Basel Committee’s 2004 “Basel II” capital accords. The New Capital Rules are effective for the Company and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions. Our preliminary analysis indicates both the Company and the Bank will remain "well-capitalized" under the New Capital Rules.

Dividends on Common Stock and Interest on Subordinated Debentures

Bank holding companies, such as PacWest Bancorp, are required to notify the Board of Governors of the Federal Reserve System (“FRB”) prior to declaring and paying a dividend to stockholders during any period in which quarterly and/or cumulative twelve-month net earnings are insufficient to fund the dividend amount, among other requirements. Interest payments made by the Company on subordinated debentures are considered dividend payments under FRB regulations.

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Liquidity Management

Liquidity

The goals of our liquidity management are to ensure the ability of the Company to meet its financial commitments when contractually due and to respond to other demands for funds such as the ability to meet the cash flow requirements of customers who may be either depositors wanting to withdraw funds or borrowers who may need assurance that sufficient funds will be available to meet their credit needs. We have an Executive Management ALM Committee, or Executive ALM Committee, which is comprised of members of senior management and is responsible for managing balance sheet and off-balance sheet commitments to meet the needs of customers while achieving our financial objectives. Our Executive ALM Committee meets regularly to review funding capacities, current and forecasted loan demand, and investment opportunities.

The Company manages its liquidity by maintaining pools of liquid assets on-balance sheet, consisting of cash and due from banks, interest-earning deposits in other financial institutions and unpledged investment securities available-for-sale, which we refer to as our primary liquidity. In addition, we also maintain available borrowing capacity under secured borrowing lines with the FHLB SF and the Federal Reserve Bank of San Francisco (“FRBSF”), which we refer to as our secondary liquidity. In addition to its secured lines of credit, the Bank also maintains unsecured lines of credit, subject to availability, of $80.0 million with correspondent banks for purchase of overnight funds.

The following table provides a summary of the Bank’s primary and secondary liquidity levels at the dates indicated:

	September 30, 2014			June 30, 2014			December 31, 2013
	(In thousands)
Primary Liquidity-On-Balance Sheet:
Cash and due from banks	$	145,463		$	243,583		$	96,424
Interest-earning deposits at financial institutions	115,399			119,782			50,998
Investment securities available-for-sale	1,539,681			1,552,115			1,494,745
Less: pledged securities	(294,574		)	(327,432		)	(208,340		)
Total primary liquidity	$	1,505,969		$	1,588,048		$	1,433,827
Ratio of primary liquidity to total deposits	13.1		%	13.6		%	27.2		%
	September 30, 2014			June 30, 2014			December 31, 2013
	(In thousands)
Secondary Liquidity-Off-Balance Sheet Available Secured Borrowing Capacity:
Total secured borrowing capacity with the FHLB SF	$	2,367,424		$	2,410,157		$	1,329,512
Less: secured advances outstanding	(360,000		)	(150		)	(106,600		)
Net secured borrowing capacity with the FHLB SF	2,007,424			2,410,007			1,222,912
Secured credit line with the FRBSF	1,034,484			529,993			563,560
Total secondary liquidity	$	3,041,908		$	2,940,000		$	1,786,472

During the three months ended September 30, 2014, the Bank’s primary liquidity decreased $82.1 million due to a $98.1 million decrease in cash and due from banks offset partially by a $20.4 million increase in unpledged investment securities available-for-sale. The Bank’s secondary liquidity increased $101.9 million during the third quarter due to a $504.5 millionincrease in the borrowing capacity on the secured credit line with the FRBSF due to additional loans pledged as collateral, offset partially by a decline in available borrowings on the secured credit line with the FHLB SF due to an increase in outstanding borrowings.

At September 30, 2014, $1.4 billion of certain qualifying loans were specifically pledged as collateral for the secured borrowing line maintained with the FRBSF. The FHLB SF borrowing lines are secured by a blanket lien on certain qualifying loans in our loan portfolio which are not pledged to the FRBSF.

In addition to our primary liquidity, we generate liquidity from cash flow from our amortizing loan and securities portfolios and from our large base of core customer deposits, defined as noninterest-bearing demand, interest checking, savings and money market accounts. At September 30, 2014, such deposits totaled $6.0 billion and represented 52% of the Bank's total deposits. These core deposits are normally less volatile, often with customer relationships tied to other products offered by the Company promoting long-standing relationships and stable funding sources.

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Deposits from our customers may decline if interest rates increase significantly or if corporate customers move funds from the Bank generally. In order to address the Bank’s liquidity risk as deposit balances may fluctuate, the Bank maintains adequate levels of available liquidity.

The following table provides a summary of the Bank’s core deposits at the dates indicated:

	September 30, 2014		June 30, 2014		December 31, 2013
	(In thousands)
Core Deposits:
Noninterest-bearing demand	$	2,842,488	$	2,701,434	$	2,318,446
Interest checking	683,014		587,418		620,622
Money market deposits	1,721,563		1,688,773		1,458,910
Savings deposits	759,893		760,553		218,638
Total core deposits	$	6,006,958	$	5,738,178	$	4,616,616

Our liquidity policy establishes various liquidity guidelines for the Bank. The policy includes guidelines for On-Balance Sheet Liquidity (a measurement of primary liquidity to total deposits), Coverage and Crisis Coverage Ratios (measurements of liquid assets to expected short-term liquidity required for the loan and deposit portfolios under normal and stressed conditions), Loan to Funding Ratio, Wholesale Funding Ratio, and other guidelines developed for measuring and maintaining liquidity. As of September 30, 2014, we were in compliance with all liquidity guidelines established in the liquidity policy.

We may use large denomination brokered time deposits, the availability of which is uncertain and subject to competitive market forces, for liquidity management purposes. At September 30, 2014, the Bank had $288.2 million of brokered deposits. During the third quarter, the Company added $200.0 million of brokered time deposits. Brokered time deposits under the Certificate of Deposit Account Registry Service Program ("CDARS Program") totaled $48.2 million and $49.4 million at September 30, 2014 and December 31, 2013, respectively. The CDARS Program represents deposits that are participated with other FDIC‑insured financial institutions as a means to provide FDIC deposit insurance coverage for the full amount of our customers’ deposits.

Holding Company Liquidity

The primary sources of liquidity for the Company, on a stand-alone basis, include dividends from the Bank and our ability to raise capital, issue subordinated debt and secure outside borrowings. The ability of the Company to obtain funds for the payment of dividends to our stockholders and for other cash requirements is largely dependent upon the Bank’s earnings. Pacific Western is subject to restrictions under certain federal and state laws and regulations that limit its ability to transfer funds to the Company through intercompany loans, advances or cash dividends.

Dividends paid by state banks, such as the Bank, are regulated by the California Department of Business Oversight (“DBO”) under its general supervisory authority as it relates to a bank’s capital requirements. A state bank may declare a dividend without the approval of the DBO as long as the total dividends declared in a calendar year do not exceed either the retained earnings or the total of net profits for three previous fiscal years less any dividends paid during such period. During the three and nine months endedSeptember 30, 2014, PacWest received $15.0 million and $81.0 million in dividends from the Bank. For the foreseeable future, any dividends from the Bank to the Company require DBO approval.

At September 30, 2014, the Company had, on a stand-alone basis, $303.4 million in cash, of which the majority is on deposit at the Bank. We believe this amount of cash, along with anticipated dividends from the Bank, will be sufficient to fund the Company’s cash flow needs over the next 12 months.

On October 1, 2014, we obtained an unsecured, variable-rate revolving line of credit in the amount of $75 million with an expiration date of September 30, 2015. This borrowing facility provides additional available liquidity to the Company.

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Contractual Obligations

The following table summarizes the known contractual obligations of the Company as of September 30, 2014:

	September 30, 2014
	Due Within One Year		Due in One to Three Years		Due in Three to Five Years		Due After Five Years		Total
	(In thousands)
Time deposits(1)	$	5,028,332	$	420,562	$	59,775	$	1,146	$	5,509,815
Overnight FHLB advance	360,000		—		—		—		360,000
Long-term debt obligations(1)	1,825		1,681		155		547,074		550,735
Contractual interest(2)	14,000		6,571		2,376		59		23,006
Operating lease obligations	23,323		34,894		22,561		30,286		111,064
Other contractual obligations	14,037		4,859		238		203		19,337
Total	$	5,441,517	$	468,567	$	85,105	$	578,768	$	6,573,957

_______________________________________

(1) Excludes purchase accounting fair value adjustments.

(2) Excludes interest on subordinated debentures as these instruments are floating rate.

Long-term debt obligations include subordinated debentures. Debt obligations are also discussed in Note 9, Borrowings, Subordinated Debentures and Brokered Deposits, in the Notes to Condensed Consolidated Financial Statements (Unaudited) contained in “Item 1. Condensed Consolidated Financial Statements (Unaudited).” Operating lease obligations are discussed in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013. The other contractual obligations relate to our minimum liability associated with our data and item processing contract with a third-party provider and commitments to contribute capital to investments in low income housing project partnerships.

We believe that we will be able to meet our contractual obligations as they come due through the maintenance of adequate cash levels. We expect to maintain adequate cash levels through profitability, loan and securities repayment and maturity activity, and continued deposit gathering activities. We believe we have in place various borrowing mechanisms for both short-term and long-term liquidity needs.

Off-Balance Sheet Arrangements

Our obligations also include off-balance sheet arrangements consisting of loan and lease-related commitments, of which only a portion is expected to be funded. At September 30, 2014, our loan and lease-related commitments, including standby letters of credit, totaled $1.9 billion. The commitments, which result in funded loans and leases, increase our profitability through net interest income. We manage our overall liquidity taking into consideration funded and unfunded commitments as a percentage of our liquidity sources. Our liquidity sources have been and are expected to be sufficient to meet the cash requirements of our lending activities.

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Asset/Liability Management and Interest Rate Sensitivity

Interest Rate Risk

We measure our interest rate risk position on at least a quarterly basis using two methods: (i) net interest income simulation analysis, and (ii) market value of equity modeling. The results of these analyses are reviewed by the Executive Management ALM Committee and the Board Asset Liability Committee quarterly. If hypothetical changes to interest rates cause changes to our simulated net present value of equity and/or net interest income outside our pre-established limits, we may adjust our asset and liability mix in an effort to bring our interest rate risk exposure within our established limits.

We evaluated the results of our net interest income simulation and market value of equity models prepared as of September 30, 2014, the results of which are presented below. Our net interest income and market value of equity simulations indicate that our balance sheet is asset sensitive. An asset sensitive profile would suggest that a sudden sustained increase in rates would result in an increase in our estimated net interest income and market value of equity, while a liability sensitive profile would suggest that these amounts would decrease. In general, we view the net interest income model results as more relevant to the Company's current operating profile and manage our balance sheet giving priority to this information.

Net Interest Income Simulation

We used a simulation model to measure the estimated changes in net interest income that would result over the next 12 months from immediate and sustained changes in interest rates as of September 30, 2014. This model is an interest rate risk management tool and the results are not necessarily an indication of our future net interest income. This model has inherent limitations and these results are based on a given set of rate changes and assumptions at one point in time. We have assumed no growth in either our total interest-sensitive assets or liabilities over the next 12 months; therefore, the results reflect an interest rate shock to a static balance sheet.

This analysis calculates the difference between net interest income forecasted using both increasing and declining interest rate scenarios and net interest income forecasted using a base market interest rate derived from the yield curve at September 30, 2014. In order to arrive at the base case, we extend our balance sheet at September 30, 2014 one year and reprice any assets and liabilities that would contractually reprice or mature during that period using the products' pricing as of September 30, 2014. Based on such repricings, we calculate an estimated net interest income and net interest margin.

The repricing relationship for each of our assets and liabilities includes many assumptions. For example, many of our assets are floating-rate loans, which are assumed to reprice to the same extent as the change in market rates according to their contracted index. The repricing of certain floating-rate loans is limited by interest rate floors or hybrid-arm note structures, which contain an initial fixed-rate period before becoming floating-rate. Some loans and investment vehicles include the opportunity of prepayment (imbedded options) and the simulation model uses a prepayment model to estimate these prepayments and reinvest these proceeds at current simulated yields. Our deposit products reprice at our discretion and are assumed to reprice more slowly in a rising or declining interest rate environment and usually reprice at a rate less than the change in market rates. In December 31, 2013, we decreased the assumed pricing sensitivity of money market and savings deposits to changes in market interest rates (the "deposit pricing beta"), based on an updated study of the historical repricing relationship. This assumption change resulted in lower interest expense in rising interest rate scenarios, which caused the Bank's net interest income simulation results to be more asset sensitive. The effects of certain balance sheet attributes, such as fixed-rate loans, floating-rate loans that have reached their floors, and the volume of noninterest-bearing deposits as a percentage of earning assets, impact our assumptions and consequently the results of our interest rate risk management model. Changes that could vary significantly from our assumptions include loan and deposit growth or contraction, changes in the mix of our earning assets or funding sources, the actual deposit pricing beta, and future asset/liability management decisions, all of which may have significant effects on our net interest income.

The simulation analysis does not account for all factors that impact this analysis, including changes by management to mitigate the impact of interest rate changes or the impact a change in interest rates may have on our credit risk profile, loan prepayment estimates, and spread relationships, which can change regularly. In addition, the simulation analysis does not make any assumptions regarding loan fee income, which is a component of our net interest income and tends to increase our net interest margin. Management reviews the model assumptions for reasonableness on a quarterly basis.

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The following table presents as of September 30, 2014, forecasted net interest income and net interest margin for the next 12 months using a base market interest rate and the estimated change to the base scenario given immediate and sustained upward and downward movements in interest rates of 100, 200 and 300 basis points:

					Estimated
	Estimated		Percentage	Estimated	Net Interest
September 30, 2014	Net Interest		Change	Net Interest	Margin Change
Interest Rate Scenario:	Income		From Base	Margin	From Base
	(Dollars in millions)
Up 300 basis points	$	808.9	14.3%	5.91%	0.72%
Up 200 basis points	$	765.6	8.2%	5.60%	0.41%
Up 100 basis points	$	726.5	2.7%	5.33%	0.14%
BASE CASE	$	707.7	—	5.19%	—
Down 100 basis points	$	710.5	0.4%	5.21%	0.02%
Down 200 basis points	$	710.2	0.4%	5.21%	0.02%
Down 300 basis points	$	710.1	0.3%	5.21%	0.02%

The net interest income ("NII") simulation model prepared as of September 30, 2014 suggests our balance sheet is asset sensitive. The degree of asset sensitivity in the third quarter’s NII rate shock results increased slightly compared to the prior quarter because of changes in the mix of floating and fixed-rate loans and an increase in noninterest-bearing demand deposits, along with interest checking and money market accounts.

Although $8.8 billion of the $11.6 billion of total loans in the portfolio have variable interest rate terms, only $2.0 billion of those variable-rate loans would immediately reprice at September 30, 2014 under the modeled scenarios. Of the remaining variable-rate loans, $6.0 billion would not immediately reprice because the loans' fully-indexed rates are below their floor rates. Of these $6.0 billion of loans at their floors, the fully-indexed rates would rise off of the floors and reprice as follows:

September 30, 2014
		Rate
Cumulative		Increase
Amount of		Needed to
Loans		Reprice
(Dollars in millions)
$	4,584	100 bps
$	5,472	200 bps
$	5,654	300 bps

Additionally, certain variable-rate hybrid ARM loans do not immediately reprice because the loans contain an initial fixed-rate period before they become adjustable. The cumulative amounts of hybrid ARM loans that would switch from being fixed-rate to floating-rate, because the initial fixed-rate term would expire, was approximately $118.0 million, $360.1 million, and $489.7 million in the next one, two, and three years, respectively.

Market Value of Equity

We measure the impact of market interest rate changes on the net present value of estimated cash flows from our assets, liabilities and off-balance sheet items, defined as the market value of equity, using a simulation model. This simulation model assesses the changes in the market value of our interest-sensitive financial instruments that would occur in response to an instantaneous and sustained increase or decrease in market interest rates of 100, 200, and 300 basis points. This analysis assigns significant value to our noninterest-bearing deposit balances. The projections are by their nature forward-looking and therefore inherently uncertain, and include various assumptions regarding cash flows and interest rates.

This model is an interest rate risk management tool and the results are not necessarily an indication of our actual future results. Actual results may vary significantly from the results suggested by the market value of equity table. Loan prepayments and deposit attrition, changes in the mix of our earning assets or funding sources, and future asset/liability management decisions, among others, may vary significantly from our assumptions. The base case is determined by applying various current market

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discount rates to the estimated cash flows from the different types of assets, liabilities and off-balance sheet items existing at September 30, 2014.

The following table shows the projected change in the market value of equity for the set of rate scenarios presented as of September 30, 2014:

September 30, 2014 Interest Rate Scenario:	Estimated Market Value		Dollar Change From Base			Percentage Change From Base		Percentage of Total Assets		Ratio of Estimated Market Value to Book Value
	(Dollars in millions)
Up 300 basis points	$	4,077.2	$	129.1		3.3	%	25.6	%	117.2	%
Up 200 basis points	$	4,024.9	$	76.8		1.9	%	25.3	%	115.7	%
Up 100 basis points	$	3,976.7	$	28.6		0.7	%	25.0	%	114.3	%
BASE CASE	$	3,948.1	$	—		—		24.8	%	113.5	%
Down 100 basis points	$	3,934.3	$	(13.8	)	(0.3	)%	24.7	%	113.1	%
Down 200 basis points	$	3,923.9	$	(24.2	)	(0.6	)%	24.6	%	112.8	%
Down 300 basis points	$	3,921.5	$	(26.6	)	(0.7	)%	24.6	%	112.7	%

In comparing the September 30, 2014 simulation results to December 31, 2013, our base case estimated market value of equity has increased while our overall profile has become more asset sensitive. Base case market value of equity increased $2.9 billion compared to December 31, 2013; this increase was due primarily to the increase in shareholders’ equity attributable to the CapitalSource Inc. merger.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Please see the section above titled "Asset/Liability Management and Interest Rate Sensitivity" in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" which provides an update to our quantitative and qualitative disclosure about market risk. This analysis should be read in conjunction with text under the caption "Quantitative and Qualitative Disclosure About Market Risk" in our Annual Report on Form 10-K for the year ended December 31, 2013, which text is incorporated herein by reference. Our analysis of market risk and market-sensitive financial information contains forward-looking statements and is subject to the disclosure at the beginning of Item 2 regarding such forward-looking information.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, an evaluation was carried out by the Company's management, with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, these disclosure controls and procedures were effective.

There have been no changes in the Company's internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, in addition to amounts already accrued, taking into consideration insurance which may be applicable, would not have a material adverse effect on the Company’s financial statements or operations.

ITEM 1A. RISK FACTORS

There have been no material changes to risk factors as previously disclosed in the "Risk Factors" section of our Quarterly Report on Form 10-Q for the period ended June 30, 2014, filed with the SEC on August 8, 2014.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

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ITEM 6. INDEX TO EXHIBITS

Exhibit Number	Description
3.1	Certificate of Incorporation, as amended, of PacWest Bancorp, a Delaware corporation (Exhibit 3.1 to Form 8-K filed on May 14, 2008 and incorporated herein by this reference).
3.2	Certificate of Amendment, dated May 14, 2010, to Certificate of Incorporation of PacWest Bancorp (Exhibit 3.1 to Form 8-K filed on May 14, 2010 and incorporated herein by this reference).
3.3	Certificate of Merger filed with the Delaware Secretary of State, dated April 7, 2014.
3.4	Certificate of Correction of Certificate of Merger filed with the Delaware Secretary of State, dated April 14, 2014.
3.5	Amended and Restated Bylaws of PacWest Bancorp, a Delaware corporation, dated November 5, 2014. *
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. *
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. *
32.1	Section 1350 Certification of Chief Executive Officer. *
32.2	Section 1350 Certification of Chief Financial Officer. *
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013, (ii) the Condensed Consolidated Statements of Earnings for the three months ended September 30, 2014, June 30, 2014, and September 30, 2013 and the six months ended September 30, 2014 and 2013, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended September 30, 2014, June 30, 2014, and September 30, 2013 and the six months ended September 30, 2014 and 2013, (iv) the Condensed Consolidated Statement of Changes in Stockholders' Equity for the six months ended September 30, 2014 and 2013, (v) the Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2014 and 2013, and (vi) the Notes to Condensed Consolidated Financial Statements.

_____________________

* Filed herewith.

89

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	PACWEST BANCORP
Date: November 7, 2014	/s/    VICTOR R. SANTORO
	Victor R. Santoro
	Executive Vice President and Chief Financial Officer

90

EX-3.5

Formatted: S&C DocID AMENDED AND RESTATED BYLAWS OF PACWEST BANCORP April 22, 2008 November 5, 2014 ARTICLE I Stockholders Section 1.1. Annual Meetings. An annual meeting of stockholders shall be held for the election of directors at such date, time and place either within or without the State of Delaware as may be designated by the Board of Directors from time to time. Any other proper business may be transacted at the annual meeting. Section 1.2. Special Meetings. Special meetings of stockholders may be called at any time by the Chairman of the Board, if any, the Vice Chairman of the Board, if any, the Chief Executive Officer, the Board of Directors or the holders of shares entitled to cast not less than ten percent of the votes at the meeting, such meeting, such meeting to be held at such date, time and place either within or without the State of Delaware as may be stated in the notice of the meeting. Section 1.3. Notice of Meetings. Whenever stockholders are required or permitted to take any action at a meeting, a written notice of the meeting shall be given which shall state the place, date and hour of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. The notice of any meeting at which directors are to be elected shall include a list of the names of the nominees intended at the time of the mailing of the notice to be presented by the Board for election. Unless otherwise provided by law, the written notice of any meeting shall be given not less than ten nor more than sixty days before the date of the meeting to each stockholder entitled to vote at such meeting. If mailed, such notice shall be deemed to be given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder’s address as it appears on the records of the Corporation. Section 1.4. Adjournments. Any meeting of stockholders, annual or special, may be adjourned from time to time, to reconvene at the same or some other place, and notice need not be given of any such adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting the Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. Section 1.5. Quorum. At each meeting of stockholders, except where otherwise provided by law or the certificate of incorporation or these bylaws, the holders of a majority of the outstanding shares of stock entitled to vote on a matter at the meeting, present in person or represented by proxy, shall constitute a quorum. For purposes of the foregoing, where a separate vote by class or classes is required for any matter, the holders of a majority of the outstanding shares of such class or classes, present in person or represented by proxy, shall constitute a quorum to take action with respect to that vote on that matter. Two or more classes or series of stock shall be considered a single class if the holders thereof are entitled to vote together as a single class at the meeting. In the absence of a quorum of the holders of any class of stock entitled to vote on a matter, the holders of such class so present or represented may, by majority vote, adjourn the meeting of such class from time to time in the manner provided by Section 1.4 of these bylaws until a quorum of such class shall be so present or represented. Shares of its own capital stock belonging on the record date for the meeting to the Corporation or to another corporation, if a majority of the

LA_LAN01:278326.2 Formatted: S&C DocID shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the Corporation, shall neither be entitled to vote nor be counted for quorum purposes; provided, however, that the foregoing shall not limit the right of the Corporation to vote stock, including but not limited to its own stock, held by it in a fiduciary capacity. Section 1.6. Organization. Meetings of stockholders shall be presided over by the Chairman of the Board, if any, or in the absence of the Chairman of the Board by the Vice Chairman of the Board, if any, or in the absence of the Vice Chairman of the Board by the Chief Executive Officer, or in the absence of the foregoing persons by a chairman designated by the Board of Directors, or in the absence of such designation by a chairman chosen at the meeting. The Secretary, or in the absence of the Secretary an Assistant Secretary, shall act as secretary of the meeting, but in the absence of the Secretary and any Assistant Secretary the chairman of the meeting may appoint any person to act as secretary of the meeting. Section 1.7. Inspectors. Prior to any meeting of stockholders, the Board of Directors or the President shall appoint one or more inspectors to act at such meeting and any adjournment thereof and make a written report thereof and may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is able to act at the meeting of stockholders, the person presiding at the meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before entering upon the discharge of his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of his or her ability. The inspectors shall ascertain the number of shares outstanding and the voting power of each, determine the shares represented at the meeting and the validity of proxies and ballots, count all votes and ballots, determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors and certify their determination of the number of shares represented at the meeting and their count of all votes and ballots. The inspectors may appoint or retain other persons to assist them in the performance of their duties. The date and time of the opening and closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting. No ballot, proxy or vote, nor any revocation thereof or change thereto, shall be accepted by the inspectors after the closing of the polls. In determining the validity and counting of proxies and ballots, the inspectors shall be limited to an examination of the proxies, any envelopes submitted therewith, any information provided by a stockholder who submits a proxy by telegram, cablegram or other electronic transmission from which it can be determined that the proxy was authorized by the stockholder, ballots and the regular books and records of the Corporation, and they may also consider other reliable information for the limited purpose of reconciling proxies and ballots submitted by or on behalf of banks, brokers, their nominees or similar persons which represent more votes than the holder of a proxy is authorized by the record owner to cast or more votes than the stockholder holds of record. If the inspectors consider other reliable information for such purpose, they shall, at the time they make their certification, specify the precise information considered by them, including the person or persons from whom they obtained the information, when the information was obtained, the means by which the information was obtained and the basis for the inspectors’ belief that such information is accurate and reliable. If there are three inspectors of election, the decision, act or certificate of a majority is effective in all respects as the decision, act or certificate of all. Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated therein. Section 1.8. Voting; Proxies. Unless otherwise provided in the certificate of incorporation, each stockholder entitled to vote at any meeting of stockholders shall be entitled to one vote for each share of stock held by such stockholder which has voting power upon the matter in question. Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to corporate action in writing without a meeting may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. A duly executed proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power, regardless of whether the interest with which it is coupled is an interest in the stock itself or an interest in the Corporation generally. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by filing an instrument in writing revoking the proxy or another duly executed proxy bearing a later date with the Secretary of the Corporation. Voting at meetings of stockholders need not be by written ballot unless the holders of a majority of the outstanding shares of all classes of stock entitled to vote thereon present in person or represented by proxy at such meeting shall so determine. Directors shall be elected by a plurality of the

LA_LAN01:278326.2 Formatted: S&C DocID votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.Except as may be otherwise required by the certificate of incorporation, each director shall be elected by the vote of the majority of the votes cast (meaning the number of shares voted “for” a nominee must exceed the number of shares voted “against” such nominee) at any meeting for the election of directors at which a quorum is present, provided that the directors shall be elected by a plurality of the votes cast (instead of by votes cast for or against a nominee) at any meeting at which a quorum is present for which (i) the Secretary of the Corporation receives a notice pursuant to these bylaws that a stockholder intends to nominate a director or directors and (ii) such proposed nomination has not been withdrawn by such stockholder on or prior to the tenth day preceding the date the Corporation first mails its notice of meeting for such meeting to the stockholders. In all other matters, unless otherwise provided by law or by the certificate of incorporation or these bylaws, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders. Where a separate vote by class or classes is required, the affirmative vote of the holders of a majority of the shares of such class or classes present in person or represented by proxy at the meeting shall be the act of such class or classes, except as otherwise provided by law or by the certificate of incorporation or these bylaws. Section 1.9. Fixing Date for Determination of Stockholders of Record. In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall not be more than sixty nor less than ten days before the date of such meeting. If no record date is fixed by the Board of Directors, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting. In order that the Corporation may determine the stockholders entitled to consent to corporate action in writing without a meeting, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which date shall not be more than ten days after the date upon which the resolution fixing the record date is adopted by the Board of Directors. If no record date has been fixed by the Board of Directors, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting, when no prior action by the Board of Directors is required by law, shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Corporation by delivery to its registered office in the State of Delaware, its principal place of business, or an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the Corporation’s registered office shall be by hand or by certified or registered mail, return receipt requested. If no record date has been fixed by the Board of Directors and prior action by the Board of Directors is required by law, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting shall be at the close of business on the day on which the Board of Directors adopts the resolution taking such prior action. In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than sixty days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto. Section 1.10. List of Stockholders Entitled to Vote. The Secretary shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the Formatted: Font: 10 pt

LA_LAN01:278326.2 Formatted: S&C DocID meeting, during ordinary business hours, for a period of at least ten days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof and may be inspected by any stockholder who is present. Section 1.11. Consent of Stockholders in Lieu of Meeting. Unless otherwise provided in the certificate of incorporation or these bylaws, any action required by law to be taken at any annual or special meeting of stockholders of the Corporation, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation by delivery to (a) its registered office in the State of Delaware by hand or by certified mail or registered mail, return receipt requested, (b) its principal place of business, or (c) an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Every written consent shall bear the date of signature of each stockholder who signs the consent and no written consent shall be effective to take the corporate action referred to therein unless, within sixty days of the earliest dated consent delivered in the manner required by this bylaw to the Corporation, written consents signed by a sufficient number of holders to take action are delivered to the Corporation by delivery to (a) its registered office in the State of Delaware by hand or by certified or registered mail, return receipt requested, (b) its principal place of business, or (c) an officer or agent of the Corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for such meeting had been the date that written consents signed by a sufficient number of stockholders to take the action were delivered to the Corporation as provided in this Section 1.11. Section 1.12. Advance Notice of Stockholder Nominees for Director and Other Stockholder Proposals. (a) The matters to be considered and brought before any annual or special meeting of stockholders of the Corporation shall be limited to only such matters, including the nomination and election of directors, as shall be brought properly before such meeting in compliance with the procedures set forth in this Section 1.12. (b) For any matter to be properly before any annual meeting of stockholders, the matter must be (i) specified in the notice of annual meeting given by or at the direction of the Board of Directors, (ii) otherwise brought before the annual meeting by or at the direction of the Board of Directors or (iii) brought before the annual meeting in the manner specified in this Section 1.12(b) by a stockholder of record. In addition to any other requirements under applicable law and these bylaws, persons nominated by stockholders for election as directors of the Corporation and any other proposals by stockholders shall be properly brought before the meeting only if notice in the manner contemplated hereby of any such matter to be presented by a stockholder at such meeting of stockholders (the “Stockholder Notice”) is delivered to the Secretary of the Corporation at the principal executive office of the Corporation not less than 90 nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year; provided, however, if and only if the annual meeting is not scheduled to be held within a period that commences 30 days before such anniversary date and ends 30 days after such anniversary date (an annual meeting date outside such period being referred to herein as an “Other Meeting Date”), such Stockholder Notice shall be given in the manner provided herein by the later of the close of business on (i) the date 90 days prior to such Other Meeting Date or (ii) the tenth day following the date such Other Annual Meeting Date is first publicly announced or disclosed. Any stockholder entitled to nominate any person or persons (as the case may be) for election as a director or directors of the Corporation shall deliver, as part of such Stockholder Notice, a statement in writing setting forth the name of the person or persons to be nominated, the number and class of all shares of each class of stock of the Corporation owned of record and beneficially by each such person, as reported to such stockholder by such nominee(s), the information regarding each such person required by paragraphs (a), (e) and (f) of Item 401 of Regulation S-K adopted by the Securities and Exchange Commission (or the corresponding provisions of any regulation subsequently adopted by the Securities and Exchange Commission applicable to the Corporation), each such person’s signed consent to serve as a director of the Corporation if elected, such stockholder’s name and

LA_LAN01:278326.2 Formatted: S&C DocID address and the number and class of all shares of each class of stock of the Corporation owned of record and beneficially by such stockholder. Any stockholder who gives a Stockholder Notice of any matter proposed to be brought before the meeting (not involving nominees for director) shall deliver, as part of such Stockholder Notice, the text of the proposal to be presented (including the text of any resolutions to be proposed for consideration by stockholders) and a brief written statement of the reasons why such stockholder favors the proposal and setting forth such stockholder’s name and address, the number and class of all shares of each class of stock of the Corporation owned of record and beneficially by such stockholder and, if applicable, any material interest of such stockholder in the matter proposed (other than as a stockholder). As used herein, shares “beneficially owned” shall mean all shares which such person is deemed to beneficially own pursuant to Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934 (the “Exchange Act”). The Corporation may require any proposed nominee to furnish such other information as it may reasonably require to determine whether the nominee would be considered “independent” under the various rules and standards applicable to the Corporation. Notwithstanding anything in this Section 1.12(b) to the contrary, in the event that the number of directors to be elected to the Board of Directors of the Corporation is increased and either all of the nominees for director or the size of the increased Board of Directors is not publicly announced or disclosed by the Corporation at least 100 days prior to the first anniversary of the preceding year’s annual meeting, a Stockholder Notice shall also be considered timely hereunder, but only with respect to nominees for any new positions created by such increase, if it shall be delivered to the Secretary of the Corporation at the principal executive office of the Corporation not later than the close of business on the tenth day following the first date all of such nominees or the size of the increased Board of Directors shall have been publicly announced or disclosed. (c) Only such matters shall be properly brought before a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation’s notice of meeting. In the event the Corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors, any stockholder may nominate a person or persons (as the case may be), for election to such position(s) as specified in the Corporation’s notice of meeting, if the Stockholder Notice required by Section 1.12(b) hereof shall be delivered to the Secretary of the Corporation at the principal executive office of the Corporation not later than the close of business on the tenth day following the day on which the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting is publicly announced or disclosed. (d) For purposes of this Section 1.12, a matter shall be deemed to have been “publicly announced or disclosed” if such matter is disclosed in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission. (e) Only persons who are nominated in accordance with the procedures set forth in this Section 1.12 shall be eligible for election as directors of the Corporation. In no event shall the postponement or adjournment of an annual meeting already publicly noticed, or any announcement of such postponement or adjournment, commence a new period (or extend any time period) for the giving of notice as provided in this Section 1.12. This Section 1.12 shall not apply to (i) stockholders proposals made pursuant to Rule 14a-8 under the Exchange Act or (ii) the election of directors selected by or pursuant to the provisions of Article Four of the Certificate of Incorporation relating to the rights of the holders of any class or series of stock of the Corporation having a preference over the Common Stock as to dividends or upon liquidation to elect directors under specified circumstances. (f) The person presiding at any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall have the power and duty to determine whether notice of nominees and other matters proposed to be brought before a meeting has been duly given in the manner provided in this Section 1.12 and, if not so given, shall direct and declare at the meeting that such nominees and other matters are not properly before the meeting and shall not be considered. ARTICLE II

LA_LAN01:278326.2 Formatted: S&C DocID Board of Directors Section 2.1. Powers; Number; Qualifications. The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors, except as may be otherwise provided by law or in the certificate of incorporation. The number of directors of the Corporation shall be from seven (7) to fifteen (15), the exact number thereof to be determined from time to time by the Board by resolution. Directors need not be stockholders. Section 2.2. Election; Term of Office; Resignation; Removal; Vacancies. Each director shall hold office until his or her successor is elected and qualified or until his or her earlier resignation or removal. Any director may resign effective upon giving written notice to the Chairman of the Board, the Board of Directors or to the Secretary of the Corporation unless the notice specifies a time for the effectiveness of such notice. If the resignation is effective at a future time, a successor may be elected to take office when the resignation becomes effective. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein no acceptance of such resignation shall be necessary to make it effective. Any director or the entire Board of Directors may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors; except that, if the certificate of incorporation provides for cumulative voting and less than the entire Board is to be removed, no director may be removed without cause if the votes cast against his or her removal would be sufficient to elect him or her if then cumulatively voted at an election of the entire Board. Unless otherwise provided in the certificate of incorporation or these bylaws, vacancies and newly created directorships resulting from any increase in the authorized number of directors elected by all of the stockholders having the right to vote as a single class or from any other cause may be filled by a majority of the directors then in office, although less than a quorum, or by the sole remaining director. Any director elected or appointed to fill a vacancy shall hold office until the next election of the class of directors of the director which such director replaced, and until and his or her successor is elected and qualified or until his or her earlier resignation or removal. Section 2.3. Regular Meetings. Regular meetings of the Board of Directors may be held at such places within or without the State of Delaware and at such times as the Board may from time to time determine, and if so determined notice thereof need not be given. Section 2.4. Special Meetings. Special meetings of the Board of Directors may be held at any time or place within or without the State of Delaware whenever called by the Chairman of the Board, if any, by the Vice Chairman of the Board, if any, or by any two directors. Reasonable notice thereof shall be given by the person or persons calling the meeting. Section 2.5. Participation in Meetings by Conference Telephone Permitted. Unless otherwise restricted by the certificate of incorporation or these bylaws, members of the Board of Directors, or any committee designated by the Board, may participate in a meeting of the Board or of such committee, as the case may be, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this bylaw shall constitute presence in person at such meeting. Section 2.6. Quorum; Vote Required for Action. At all meetings of the Board of Directors one-third of the entire Board shall constitute a quorum for the transaction of business. The vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board unless the certificate of incorporation or these bylaws shall require a vote of a greater number. In case at any meeting of the Board a quorum shall not be present, the members of the Board present may adjourn the meeting from time to time until a quorum shall be present. Section 2.7. Organization. Meetings of the Board of Directors shall be presided over by the Chairman of the Board, if any, or in the absence of the Chairman of the Board by the Vice Chairman of the Board, if any, or in the absence of the Vice Chairman of the Board by the President, or in their absence by a chairman chosen at the meeting. The Secretary, or in the absence of the Secretary an Assistant Secretary, shall act as secretary of the meeting, but in the absence of the Secretary and any Assistant Secretary the chairman of the meeting may appoint any person to act as secretary of the meeting.

LA_LAN01:278326.2 Formatted: S&C DocID Section 2.8. Action by Directors Without a Meeting. Unless otherwise restricted by the certificate of incorporation or these bylaws, any action required or permitted to be taken at any meeting of the Board of Directors, or of any committee thereof, may be taken without a meeting if all members of the Board or of such committee, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board or committee. Section 2.9. Compensation of Directors. Unless otherwise restricted by the certificate of incorporation or these bylaws, the Board of Directors shall have the authority to fix the compensation of directors. ARTICLE III Committees Section 3.1. Committees. The Board of Directors may designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board of Directors or in these bylaws, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to the following matters: (i) approving or adopting, or recommending to the stockholders, any action or matter expressly required by law to be submitted to stockholders for approval, (ii) adopting, amending or repealing these bylaws or (iii) removing or indemnifying directors. Section 3.2. Committee Rules. Unless the Board of Directors otherwise provides, each committee designated by the Board may adopt, amend and repeal rules for the conduct of its business. In the absence of a provision by the Board or a provision in the rules of such committee to the contrary, a majority of the entire authorized number of members of such committee shall constitute a quorum for the transaction of business, the vote of a majority of the members present at a meeting at the time of such vote if a quorum is then present shall be the act of such committee, and in other respects each committee shall conduct its business in the same manner as the Board conducts its business pursuant to Article II of these bylaws. ARTICLE IV Officers Section 4.1. Officers; Election. As soon as practicable after the annual meeting of stockholders in each year, the Board of Directors shall elect a Chairman of the Board, a Secretary and a Chief Financial Officer, and it may, if it so determines, elect from among its members a Vice Chairman of the Board. The Board may also elect one or more Managing Directors, one or more Assistant Secretaries, a Treasurer and one or more Assistant Treasurers and such other officers as the Board may deem desirable or appropriate and may give any of them such further designations or alternate titles as it considers desirable. Any number of offices may be held by the same person unless the certificate of incorporation or these bylaws otherwise provide. Section 4.2. Term of Office; Resignation; Removal; Vacancies. Except as otherwise provided in the resolution of the Board of Directors electing any officer, each officer shall hold office until the first meeting of the Board after the annual meeting of shareholders next succeeding his or her election, and until his or her successor is elected and qualified or until his or her earlier resignation or removal. Any officer may resign at any time upon written notice to the Board or to the Chairman of the Board or the Secretary of the Corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein no acceptance of such resignation shall be

LA_LAN01:278326.2 Formatted: S&C DocID necessary to make it effective. The Board may remove any officer with or without cause at any time. Any such removal shall be without prejudice to the contractual rights of such officer, if any, with the Corporation, but the election of an officer shall not of itself create contractual rights. Any vacancy occurring in any office of the Corporation by death, resignation, removal or otherwise may be filled for the unexpired portion of the term by the Board at any regular or special meeting. Section 4.3. Powers and Duties. The officers of the Corporation shall have such powers and duties in the management of the Corporation as shall be stated in these bylaws or in a resolution of the Board of Directors which is not inconsistent with these bylaws and, to the extent not so stated, as generally pertain to their respective offices, subject to the control of the Board. The Secretary shall have the duty to record the proceedings of the meetings of the stockholders, the Board of Directors and any committees in a book to be kept for that purpose. The Board may require any officer, agent or employee to give security for the faithful performance of his or her duties. ARTICLE V Stock Section 5.1. Certificates. The shares of stock in the Corporation shall be represented by certificates, provided that the Board of Directors may provide by resolution or resolutions that some or all of any or all classes or series of the Corporation’s stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate theretofore issued until such certificate is surrendered to the Corporation. Notwithstanding the adoption of such a resolution by the Board, every holder of stock represented by certificates, and upon request every holder of uncertificated shares, shall be entitled to have a certificate signed by or in the name of the Corporation by the Chairman or Vice Chairman of the Board, if any, or the President or a Vice President, and by the Chief Financial Officer or Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary, of the Corporation, representing the number of shares of stock registered in certificate form owned by such holder. If such certificate is manually signed by one officer or manually countersigned by a transfer agent or by a registrar, any other signature on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if such person were such officer, transfer agent or registrar at the date of issue. If the Corporation is authorized to issue more than one class of stock or more than one series of any class, the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or back of the certificate which the Corporation shall issue to represent such class or series of stock, provided that, except as otherwise provided by law, in lieu of the foregoing requirements, there may be set forth on the face or back of the certificate which the Corporation shall issue to represent such class or series of stock a statement that the Corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Within a reasonable time after the issuance or transfer of uncertificated shares, the Corporation shall send to the registered owner thereof a written notice containing the information required by law to be set forth or stated on certificates or a statement that the Corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Except as otherwise expressly provided by law, the rights and obligations of the holders of uncertificated shares and the rights and obligations of the holders of certificates representing stock of the same class and series shall be identical. Section 5.2. Lost, Stolen or Destroyed Stock Certificates; Issuance of New Certificates. The Corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it, alleged to

LA_LAN01:278326.2 Formatted: S&C DocID have been lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed certificate, or such owner’s legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares. ARTICLE VI Miscellaneous Section 6.1. Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors. Section 6.2. Seal. The Corporation may have a corporate seal which shall have the name of the Corporation inscribed thereon and shall be in such form as may be approved from time to time by the Board of Directors. The corporate seal may be used by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced. Section 6.3. Waiver of Notice of Meetings of Stockholders, Directors and Committees. Whenever notice is required to be given by law or under any provision of the certificate of incorporation or these bylaws, a written waiver thereof, signed by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders, directors or members of a committee of directors need be specified in any written waiver of notice unless so required by the certificate of incorporation or these bylaws. Section 6.4. Indemnification of Directors, Officers and Employees. The Corporation shall indemnify to the full extent permitted by law any person made or threatened to be made a party to any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person or such person’s testator or intestate is or was a director, officer or employee of the Corporation or serves or served at the request of the Corporation any other enterprise as a director, officer or employee. Expenses, including attorneys’ fees, incurred by any such person in defending any such action, suit or proceeding shall be paid or reimbursed by the Corporation promptly upon receipt by it of an undertaking of such person to repay such expenses if it shall ultimately be determined that such person is not entitled to be indemnified by the Corporation. The rights provided to any person by this bylaw shall be enforceable against the Corporation by such person who shall be presumed to have relied upon it in serving or continuing to serve as a director, officer or employee as provided above. No amendment of this bylaw shall impair the rights of any person arising at any time with respect to events occurring prior to such amendment. For purposes of this bylaw, the term “Corporation” shall include any predecessor of the Corporation and any constituent Corporation (including any constituent of a constituent) absorbed by the Corporation in a consolidation or merger; the term “other enterprise” shall include any Corporation, partnership, joint venture, trust or employee benefit plan; service “at the request of the Corporation” shall include service as a director, officer or employee of the Corporation which imposes duties on, or involves services by, such director, officer or employee with respect to an employee benefit plan, its participants or beneficiaries; any excise taxes assessed on a person with respect to an employee benefit plan shall be deemed to be indemnifiable expenses; and action by a person with respect to an employee benefit plan which such person reasonably believes to be in the interest of the participants and beneficiaries of such plan shall be deemed to be action not opposed to the best interests of the Corporation. Section 6.5. Interested Directors; Quorum. No contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other Corporation, partnership, association or other organization in which one or more of its directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because his or her or their votes are counted for such purpose, if: (1) the material facts as to his or her relationship or

LA_LAN01:278326.2 Formatted: S&C DocID interest and as to the contract or transaction are disclosed or are known to the Board or the committee, and the Board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (2) the material facts as to his or her relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or (3) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board, a committee thereof or the stockholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors or of a committee which authorizes the contract or transaction. Section 6.6. Form of Records. Any records maintained by the Corporation in the regular course of its business, including its stock ledger, books of account and minute books, may be kept on, or be in the form of, punch cards, magnetic tape, photographs, microphotographs or any other information storage device, provided that the records so kept can be converted into clearly legible form within a reasonable time. The Corporation shall so convert any records so kept upon the request of any person entitled to inspect the same. Section 6.7. Amendment of Bylaws. These bylaws may be amended or repealed, and new bylaws adopted, by the Board of Directors, but the stockholders entitled to vote may adopt additional bylaws and may amend or repeal any bylaw whether or not adopted by them. Section 6.8. Principal Executive or Business Offices. The Board of Directors shall fix the location of the principal executive office of the Corporation at any place either within or without the State of Delaware. If the principal executive office is located outside Delaware and the Corporation has one or more business offices in Delaware, the Board shall designate one of these offices as the Corporation’s principal business office in Delaware.

EX-31.1

Exhibit 31.1

Certification

Pursuant to Section 302 of the

Sarbanes-Oxley Act of 2002

I, Matthew P. Wagner, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended September 30, 2014 of PacWest Bancorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 7, 2014	/s/ Matthew P. Wagner
		Matthew P. Wagner Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

Pursuant to Section 302 of the

Sarbanes-Oxley Act of 2002

I, Victor R. Santoro, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended September 30, 2014 of PacWest Bancorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 7, 2014	/s/ Victor R. Santoro
		Victor R. Santoro Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted

Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), the undersigned officer of PacWest Bancorp (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 7, 2014	/s/ Matthew P. Wagner
		Matthew P. Wagner Chief Executive Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted

Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), the undersigned officer of PacWest Bancorp (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 7, 2014	/s/ Victor R. Santoro
		Victor R. Santoro Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) and is not being filed as part of the Report or as a separate disclosure document.

XML

Acquisitions Acquisitions (Details 1) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Business Acquisition, Pro Forma Revenue	$ 209,558	$ 591,283	$ 606,570
Pro forma net earnings from continuing operations	$ 82,662	$ 177,846	$ 180,219
Pro forma net earnings from continuing operations per share - Basic	$ 0.81	$ 1.73	$ 1.76
Pro forma net earnings from continuing operations per share - Diluted	$ 0.81	$ 1.73	$ 1.76

XML

Loans and Credit Quality (Details 5) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 11,574,885	$ 4,312,352	$ 4,383,393
Non-PCI nonaccrual loans	88,948	46,774
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	108,408
NonCovered [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,223,506	3,929,556	3,950,636
Non-PCI nonaccrual loans		3,929,556
NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income		54,885	33,909
NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,398,244	2,422,107	2,548,932
NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	283,067	207,779	188,872
NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,433,787	1,244,785	1,178,923
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Hospitality [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	6,451	6,723
Nonperforming Financing Receivable [Member] | NonCovered [Member] | SBA Loans [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	7,483	2,602
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Real Estate Other Class [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	26,575	18,648
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Residential Real Estate Construction Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	925	389
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,703	2,830
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Collateralized Loan Obligations [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,165	9,991
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Unsecured Commercial Member [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	226	458
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Asset Based [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,003	1,070
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Cash Flow [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	15,958	0
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Equipment Finance Commercial Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	12,885	632
Nonperforming Financing Receivable [Member] | NonCovered [Member] | SBA Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,039	3,037
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,535	394
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	40,509	27,973
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,628	3,219
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	41,276	15,188
Performing Financing Receivable [Member] | NonCovered [Member]
Financing Receivable, Impaired [Line Items]
Non-PCI nonaccrual loans	11,134,558	3,882,782
Performing Financing Receivable [Member] | NonCovered [Member] | Hospitality [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	512,899	173,830
Performing Financing Receivable [Member] | NonCovered [Member] | SBA Loans [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	344,285	42,564
Performing Financing Receivable [Member] | NonCovered [Member] | Real Estate Other Class [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	4,500,551	2,177,740
Performing Financing Receivable [Member] | NonCovered [Member] | Residential Real Estate Construction Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	71,961	58,492
Performing Financing Receivable [Member] | NonCovered [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	207,478	146,068
Performing Financing Receivable [Member] | NonCovered [Member] | Collateralized Loan Obligations [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	423,412	576,490
Performing Financing Receivable [Member] | NonCovered [Member] | Unsecured Commercial Member [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	126,813	153,294
Performing Financing Receivable [Member] | NonCovered [Member] | Asset Based [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,589,429	201,358
Performing Financing Receivable [Member] | NonCovered [Member] | Cash Flow [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,298,240	0
Performing Financing Receivable [Member] | NonCovered [Member] | Equipment Finance Commercial Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	915,575	272,851
Performing Financing Receivable [Member] | NonCovered [Member] | SBA Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	39,042	25,604
Performing Financing Receivable [Member] | NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	104,873	54,491
Performing Financing Receivable [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,357,735	2,394,134
Performing Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	279,439	204,560
Performing Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,392,511	1,229,597
Collateralized Loan Obligations [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	428,577	586,481
Unsecured Commercial Member [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	127,039	153,752
Asset Based [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,594,432	202,428
Cash Flow [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,314,198	0
Equipment Finance Commercial Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	928,460	273,483
SBA Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	41,081	28,641
Residential Real Estate Construction Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	72,886	58,881
Commercial Real Estate Construction Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	210,181	148,898
Hospitality [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	519,350	180,553
SBA Loans [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	351,768	45,166
Real Estate Other Class [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 4,527,126	$ 2,196,388

XML

Investments (Details Textual) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Available For Sale Securities Pledged As Collateral Amortized Cost	$ 294,600,000			$ 294,600,000
Proceeds from Sale of Available-for-sale Securities	0			465,608,000	12,810,000
Gain (Loss) on Sale of Investments			5,200,000	4,900,000	409,000
Sales of available-for-sale securities during the period				461,700,000
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	700,000	13,296,000	(669,000)	24,168,000	(32,573,000)
Federal Home Loan Bank stock, at cost	45,602,000			45,602,000		27,939,000
Federal Home Loan Bank of San Francisco [Member]
Schedule of Available-for-sale Securities [Line Items]
Increase (Decrease) in Marketable Securities, Restricted				17,700,000
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Sales of available-for-sale securities during the period					12,400,000
Government agency and government-sponsored enterprise pass through securities
Schedule of Available-for-sale Securities [Line Items]
Proceeds from Sale of Available-for-sale Securities			$ 0

XML

Commitments and Contingencies (Details Textual) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013 Private Equity Funds [Member]
Long-term Purchase Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed			$ 2.5
Number of funds			11
Commitment To Contribute Capital	$ 12.9	$ 11.0

XML

Loans and Credit Quality (Details 6) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013		Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Gross	$ 11,591,395				$ 11,591,395				$ 4,313,335
Loans and Leases Receivable, Net of Deferred Income	11,574,885		4,383,393		11,574,885		4,383,393		4,312,352
Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	34				34
Loans and Leases Receivable, Gross	108,683				108,683				55,070
Loans and Leases Receivable, Net of Deferred Income	108,408				108,408
Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	1,568				1,568
Loans and Leases Receivable, Gross	5,721,290				5,721,290				2,795,998
Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	119				119
Loans and Leases Receivable, Gross	293,317				293,317				219,517
Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	7,654				7,654
Loans and Leases Receivable, Gross	5,468,105				5,468,105				1,242,750
NonCovered [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance	9,375				9,375				7,600
Impaired Financing Receivable Performing Restructured Loans	34,308				34,308				41,648
Impaired Financing Receivable, Recorded Investment	123,256				123,256				88,422
Financing Receivable, Recorded Investment, Nonaccrual Status	88,948				88,948
Impaired Financing Receivable, Unpaid Principal Balance	159,981				159,981				113,813
Loans and Leases Receivable, Gross	11,239,964				11,239,964				3,930,539
Impaired Financing Receivable, Average Recorded Investment	120,839	[1]	119,036	[1]	93,924	[1]	122,921	[1]
Impaired Financing Receivable, Interest Income, Accrual Method	1,109		966		1,792		1,259
Financing Receivable, Individually Evaluated for Impairment	123,256		131,082		123,256		131,082
Loans and Leases Receivable, Net of Deferred Income	11,223,506		3,950,636		11,223,506		3,950,636		3,929,556
NonCovered [Member] | Hospitality [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,957				1,957				5,717
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	1,956				1,956				6,215
Impaired Financing Receivable, Related Allowance	92				92				198
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	6,451				6,451				3,013
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	7,593				7,593				3,385
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,963	[1]	8,779	[1]	1,971	[1]	8,770	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	20		226		60		109
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	6,485	[1]	0	[1]	6,529	[1]	0	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0		0		0		0
NonCovered [Member] | SBA Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0				0				1,642
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0				0				1,643
Impaired Financing Receivable, Related Allowance	0				0				230
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	7,483				7,483				2,602
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	10,712				10,712				3,646
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	0	[1]	1,659	[1]	0	[1]	1,649	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0		23		0		23
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	7,746	[1]	2,935	[1]	5,378	[1]	2,791	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	38		0		38		0
NonCovered [Member] | Real Estate Mortgage Other Receivable [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	13,302				13,302				15,937
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	13,389				13,389				16,571
Impaired Financing Receivable, Related Allowance	1,476				1,476				1,760
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	30,536				30,536				33,365
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	41,596				41,596				46,062
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	13,401	[1]	51,327	[1]	13,218	[1]	47,411	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	99		513		376		481
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	31,313	[1]	25,041	[1]	26,235	[1]	25,540	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	87		133		240		410
NonCovered [Member] | Residential Real Estate Construction Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	767				767				778
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	767				767				778
Impaired Financing Receivable, Related Allowance	72				72				168
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	542				542				0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	550				550				0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	768	[1]	393	[1]	770	[1]	391	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	4		0		12		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	542	[1]	441	[1]	406	[1]	435	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0		0		0		0
NonCovered [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,162				1,162				1,250
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	4,945				4,945				1,250
Impaired Financing Receivable, Related Allowance	47				47				1
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	10,221				10,221				5,484
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	10,995				10,995				9,923
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,176	[1]	8,540	[1]	539	[1]	8,541	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	6		87		13		88
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	10,236	[1]	4,568	[1]	8,888	[1]	5,511	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	74		(59)		171		98
NonCovered [Member] | Collateralized Loan Obligations [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	5,404				5,404				4,377
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	5,789				5,789				4,692
Impaired Financing Receivable, Related Allowance	3,536				3,536				4,270
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	3,820				3,820				6,700
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	10,932				10,932				9,924
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	5,815	[1]	3,804	[1]	5,167	[1]	4,467	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	43		10		92		7
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	5,252	[1]	4,266	[1]	2,772	[1]	8,989	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	21		0		52		15
NonCovered [Member] | Unsecured Commercial Member [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	620				620				801
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	631				631				829
Impaired Financing Receivable, Related Allowance	416				416				375
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	180				180				179
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	278				278				247
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	624	[1]	2,062	[1]	664	[1]	787	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	6		8		18		8
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	202	[1]	179	[1]	264	[1]	217	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0		0		0		0
NonCovered [Member] | Asset Based [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	262				262				1,070
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	262				262				1,070
Impaired Financing Receivable, Related Allowance	262				262				180
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	4,741				4,741				0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	5,584				5,584				0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	265	[1]	223	[1]	268	[1]	2,377	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0		5		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	0	[1]	0	[1]	1,560	[1]	0	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0		0		0		0
NonCovered [Member] | Cash Flow [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	15,958				15,958				0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	18,014				18,014				0
Impaired Financing Receivable, Related Allowance	2,666				2,666				0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	0				0				0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	505				505				0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	15,695	[1]	0	[1]	5,232	[1]	0	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0		0		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	0	[1]	0	[1]	58	[1]	0	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0		0		0		0
NonCovered [Member] | Equipment Finance Commercial Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,864				1,864				0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	1,864				1,864				0
Impaired Financing Receivable, Related Allowance	774				774				0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	11,021				11,021				632
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	14,809				14,809				632
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,889	[1]	0	[1]	1,073	[1]	0	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0		0		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	9,818	[1]	244	[1]	7,436	[1]	244	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	671		0		671		0
NonCovered [Member] | SBA Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0				0				1,136
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0				0				1,136
Impaired Financing Receivable, Related Allowance	0				0				178
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	3,310				3,310				3,037
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	4,984				4,984				4,945
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	0	[1]	1,094	[1]	0	[1]	1,278	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0		12		0		12
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	3,756	[1]	2,872	[1]	2,189	[1]	2,846	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	36		5		36		5
NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	146				146				424
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	145				145				471
Impaired Financing Receivable, Related Allowance	34				34				240
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	3,509				3,509				278
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	3,681				3,681				394
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	148	[1]	436	[1]	1,890	[1]	429	[1]
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	2		3		11		3
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	3,745	[1]	173	[1]	1,417	[1]	248	[1]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	2		0		2		0
Impaired Financing Receivable Performing Restructured Loans	120				120				308
Impaired Financing Receivable, Recorded Investment	3,655				3,655				702
Financing Receivable, Recorded Investment, Nonaccrual Status									394
Impaired Financing Receivable, Unpaid Principal Balance	3,826				3,826				865
Loans and Leases Receivable, Gross	108,340				108,340				54,809
Impaired Financing Receivable, Average Recorded Investment	3,893	[1]	609	[1]	3,307	[1]	677	[1]
Impaired Financing Receivable, Interest Income, Accrual Method	4		3		13		3
Financing Receivable, Individually Evaluated for Impairment	3,655		792		3,655		792
Loans and Leases Receivable, Net of Deferred Income			33,909				33,909		54,885
NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance									2,188
Impaired Financing Receivable Performing Restructured Loans	19,220				19,220				34,303
Impaired Financing Receivable, Recorded Investment	59,729				59,729				62,276
Financing Receivable, Recorded Investment, Nonaccrual Status									27,973
Impaired Financing Receivable, Unpaid Principal Balance	75,246				75,246				77,522
Loans and Leases Receivable, Gross	5,406,371				5,406,371				2,424,864
Impaired Financing Receivable, Average Recorded Investment	60,908	[1]	89,741	[1]	53,331	[1]	86,161	[1]
Impaired Financing Receivable, Interest Income, Accrual Method	244		895		714		1,023
Financing Receivable, Individually Evaluated for Impairment	59,729		90,329		59,729		90,329
Loans and Leases Receivable, Net of Deferred Income	5,398,244		2,548,932		5,398,244		2,548,932		2,422,107
NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance									169
Impaired Financing Receivable Performing Restructured Loans	9,064				9,064				4,293
Impaired Financing Receivable, Recorded Investment	12,692				12,692				7,512
Financing Receivable, Recorded Investment, Nonaccrual Status									3,219
Impaired Financing Receivable, Unpaid Principal Balance	17,257				17,257				11,951
Loans and Leases Receivable, Gross	285,109				285,109				209,090
Impaired Financing Receivable, Average Recorded Investment	12,722	[1]	13,942	[1]	10,603	[1]	14,878	[1]
Impaired Financing Receivable, Interest Income, Accrual Method	84		28		196		186
Financing Receivable, Individually Evaluated for Impairment	12,692		14,878		12,692		14,878
Loans and Leases Receivable, Net of Deferred Income	283,067		188,872		283,067		188,872		207,779
NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Related Allowance									5,003
Impaired Financing Receivable Performing Restructured Loans	5,904				5,904				2,744
Impaired Financing Receivable, Recorded Investment	47,180				47,180				17,932
Financing Receivable, Recorded Investment, Nonaccrual Status									15,188
Impaired Financing Receivable, Unpaid Principal Balance	63,652				63,652				23,475
Loans and Leases Receivable, Gross	5,440,144				5,440,144				1,241,776
Impaired Financing Receivable, Average Recorded Investment	43,316	[1]	14,744	[1]	26,683	[1]	21,205	[1]
Impaired Financing Receivable, Interest Income, Accrual Method	777		40		869		47
Financing Receivable, Individually Evaluated for Impairment	47,180		25,083		47,180		25,083
Loans and Leases Receivable, Net of Deferred Income	5,433,787		1,178,923		5,433,787		1,178,923		1,244,785
Nonperforming Financing Receivable [Member] | NonCovered [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Gross									46,774
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Hospitality [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	6,451				6,451				6,723
Nonperforming Financing Receivable [Member] | NonCovered [Member] | SBA Loans [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	7,483				7,483				2,602
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Residential Real Estate Construction Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	925				925				389
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Collateralized Loan Obligations [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,165				5,165				9,991
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Unsecured Commercial Member [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	226				226				458
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Asset Based [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,003				5,003				1,070
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Cash Flow [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	15,958				15,958				0
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Equipment Finance Commercial Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	12,885				12,885				632
Nonperforming Financing Receivable [Member] | NonCovered [Member] | SBA Financing Receivable [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,039				2,039				3,037
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,535				3,535				394
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	40,509				40,509				27,973
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,628				3,628				3,219
Nonperforming Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 41,276				$ 41,276				$ 15,188

[1] (1)For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2014 and 2013, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

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Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended						6 Months Ended	9 Months Ended
	Sep. 30, 2014		Jun. 30, 2014		Sep. 30, 2013		Jun. 30, 2014	Sep. 30, 2014		Sep. 30, 2013
Earnings Per Share [Abstract]
Net earnings from continuing operations	$ 62,276		$ 11,230		$ 24,140			$ 99,411		$ 42,030
Less: earnings allocated to unvested restricted stock(1)	(685)	[1]	(290)	[1]	(786)	[1]		(1,147)	[1]	(1,137)	[1]
Net earnings from continuing operations allocated to common shares	61,591		10,940		23,354			98,264		40,893
Net (loss) earnings from discontinued operations allocated to common shares	0		(675)		23			(1,487)		(24)
Net earnings allocated to common shares	$ 61,591		$ 10,265		$ 23,377			$ 96,777		$ 40,869
Weighted-average basic shares and unvested restricted stock outstanding	103,029		98,817		46,091			82,758		41,306
Less: weighted-average unvested restricted stock outstanding	(1,117)		(678)		(1,795)			(981)		(1,663)
Weighted-average basic shares outstanding	101,912		98,139		44,296			81,777		39,643
Net earnings from continuing operations	$ 0.60		$ 0.11		$ 0.53		$ 0.11	$ 1.20		$ 1.03
Net loss from discontinued operations	$ 0.00		$ (0.01)		$ 0.00			$ (0.02)		$ 0.00
Basic net income per share	$ 0.60		$ 0.10		$ 0.53		$ 0.10	$ 1.18		$ 1.03
Net earnings allocated to common shares	61,591		10,265		23,377			96,777		40,869
Net earnings from continuing operations	$ 0.60		$ 0.11		$ 0.53		$ 0.11	$ 1.20		$ 1.03
Net loss from discontinued operations	$ 0.00		$ (0.01)		$ 0.00			$ (0.02)		$ 0.00
Diluted net income per share	$ 0.60		$ 0.10		$ 0.53		$ 0.10	$ 1.18		$ 1.03

[1] (1)Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

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Investments (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investment Securities, Available-for-Sale, Amortized Cost
Due in one year or less	$ 4,386
Due after one year through five years	85,057
Due after five years through ten years	249,748
Due after ten years	1,165,707
Total	1,504,898	1,500,516
Investment Securities, Available-for-Sale, Estimated Fair Value
Due in one year or less	4,422
Due after one year through five years	85,209
Due after five years through ten years	252,685
Due after ten years	1,197,365
Available-for-sale, at fair value	$ 1,539,681	$ 1,494,745

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Carried at Fair Value on Recurring Basis

The following table presents information on the assets measured and recorded at fair value on a recurring basis as of September 30, 2014:

	Fair Value Measurements as of
	September 30, 2014
Measured on a Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Government agency and government‑sponsored enterprise
pass through securities	$	555,087	$	—	$	555,087	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	279,791		—		279,791		—
Covered private label CMOs	35,309		—		—		35,309
Other private label CMOs	12,593		—		12,593		—
Municipal securities	482,427		—		482,427		—
Corporate debt securities	112,143		—		112,143		—
Government‑sponsored enterprise debt securities	36,382		—		36,382		—
Other securities	25,949		514		25,435		—
Total	$	1,539,681	$	514	$	1,503,858	$	35,309

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third party pricing service for our Level 3 covered private label CMOs measured at fair value on a recurring basis as of September 30, 2014:

	Covered Private Label CMOs
Unobservable Inputs:	Range of Inputs	Weighted Average Input
Voluntary annual prepayment speeds	0% - 34.2%	10.2%
Annual default rates	0% - 9.7%	3.2%
Loss severity rates	0% - 65.2%	40.9%
Discount rates	0% - 7.1%	4.9%

Fair Value, Assets Measured on Recurring Basis, Significant Unobservable Inputs (Level 3) Reconciliation

The following table summarizes activity for assets measured at fair value on a recurring basis that are categorized as Level 3 for the period indicated:

	Covered Private Label CMOs (Level 3)
	(In thousands)
Balance, December 31, 2013	$	37,904
Total realized in earnings	862
Total unrealized gain in comprehensive income	76
Net settlements	(3,533		)
Balance, September 30, 2014	$	35,309

Assets carried at fair value on a nonrecurring basis

The following tables present assets measured at fair value on a non‑recurring basis as of the date indicated and the losses recognized on such assets for the period indicated:

	Fair Value Measurement as of								Gain (Loss)
	September 30, 2014								Three Months Ended			Nine Months Ended
	Total		Level 1		Level 2		Level 3		September 30, 2014
Measured on a Non‑Recurring Basis:	(In thousands)
Impaired Non‑PCI loans	$	42,728	$	—	$	2,366	$	40,362	$	(1,374	)	$	(10,205	)
Other real estate owned	28,011		—		26,352		1,659		(4,863		)	(4,863		)
Total non-recurring	$	70,739	$	—	$	28,718	$	42,021	$	(6,237	)	$	(15,068	)

Fair Value Inputs, Assets, Quantitative Information

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2014:

Asset	Fair Value (In thousands)		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Impaired Non-PCI loans	$	36,306	Discounted cash flows	Discount rates	0% - 10.46%	6.87%
	$	4,056	Appraisals	No discounts
OREO	$	1,659	Appraisals	Discount, including selling costs	11.19% - 62.61%	39.98%

Fair Value, by Balance Sheet Grouping

The following tables present a summary of the carrying values and estimated fair values of certain financial instruments as of the dates indicated:

	September 30, 2014
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	145,463	$	145,463	$	145,463	$	—	$	—
Interest‑earning deposits in financial institutions	115,399		115,399		115,399		—		—
Securities available‑for‑sale	1,539,681		1,539,681		514		1,503,858		35,309
Investment in FHLB stock	45,602		45,602		—		45,602		—
Loans and leases, net	11,492,986		11,396,792		—		2,366		11,394,426
Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	6,006,958		6,006,958		—		6,006,958		—
Time deposits	5,516,479		5,524,373		—		5,524,373		—
Borrowings	363,672		363,804		360,000		3,804		—
Subordinated debentures	433,545		417,349		—		417,349		—

	December 31, 2013
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	96,424	$	96,424	$	96,424	$	—	$	—
Interest‑earning deposits in financial institutions	50,998		50,998		50,998		—		—
Securities available‑for‑sale	1,494,745		1,494,745		507		1,456,334		37,904
Investment in FHLB stock	27,939		27,939		—		27,939		—
Loans and leases, net	4,230,318		4,231,078		—		2,051		4,229,027
SBA loan servicing asset	807		807		—		—		807
Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	4,616,616		4,616,616		—		4,616,616		—
Time deposits	664,371		665,148		—		665,148		—
Borrowings	113,726		113,726		106,600		7,126		—
Subordinated debentures	132,645		132,498		—		132,498		—

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Stock Based Compensation Plans (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended	9 Months Ended		3 Months Ended			9 Months Ended		0 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014 Restricted Stock [Member]	Sep. 30, 2014 Vesting Based On Service [Member] Restricted Stock [Member]	Jun. 30, 2014 Vesting Based On Service [Member] Restricted Stock [Member]	Sep. 30, 2013 Vesting Based On Service [Member] Restricted Stock [Member]	Sep. 30, 2014 Vesting Based On Service [Member] Restricted Stock [Member]	Sep. 30, 2013 Vesting Based On Service [Member] Restricted Stock [Member]	Apr. 07, 2014 Capitalsource, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common shares authorized under the 2003 Plan	19,686,565	19,686,565
Additional number of common shares authorized under the 2003 Plan		10,686,565
Number of shares available for grant under the 2003 Plan	13,524,674	13,524,674
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number				1,115,550			1,115,550
Vesting period of time-based restricted stock, lower limit	300.00%
Vesting period of time-based restricted stock, higher limit	4
Business Acquisition, Effective Date of Acquisition									Apr. 07, 2014
Awarded shares of restricted common stock vested due to the triggering of the change of control provision contained within the 2003 Plan	1,013,377	1,013,377
Expense incurred due to awarded shares of restricted common stock vested due to the triggering of the change of control provision contained within the 2003 Plan	$ 26.1
Allocated Share-based Compensation Expense				2.9	2.4	2.4	6.9	6.1
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options			$ 39.2

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Fair Value Measurements Fair Value Measurements (Details 3) (Covered Private Label Collateralized Mortgage Obligations Member [Domain], Fair Value, Measurements, Recurring [Member], Level 3, USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Covered Private Label Collateralized Mortgage Obligations Member [Domain] | Fair Value, Measurements, Recurring [Member] | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings	$ 862
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	76
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(3,533)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 37,904	$ 35,309

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Loans and Credit Quality (Details 8) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Purchased Credit Impaired Loans Composition [Line Items]
Non-PCI nonaccrual loans	$ 88,948		$ 46,774
Loans and Leases Receivable, Net Reported Amount, Covered	332,564		361,003
Purchased Credit Impaired Loans and Leases [Member]
Purchased Credit Impaired Loans Composition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	393,591		428,251
Loan Discounts	(42,212)		(45,455)
Loans and Leases Receivable, Allowance, Covered	(18,815)	(16,626)	(21,793)	(23,235)	(27,397)	(26,069)
Loans and Leases Receivable, Net Reported Amount, Covered	332,564		361,003
Mortgage Loans on Real Estate [Member]
Purchased Credit Impaired Loans Composition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	356,151		412,791
Real Estate Construction [Member]
Purchased Credit Impaired Loans Composition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	8,506		12,015
Commercial Portfolio Segment [Member]
Purchased Credit Impaired Loans Composition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	28,532		3,021
Consumer Portfolio Segment [Member]
Purchased Credit Impaired Loans Composition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	$ 402		$ 424

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Fair Value Measurements Fair Value Measurements (Details 6) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	$ 145,463	$ 96,424
Interest-earning deposits in financial institutions	115,399	50,998
Available-for-sale Securities	1,539,681	1,494,745
Federal Home Loan Bank stock, at cost	45,602	27,939
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	45,602	27,939
Loans and leases, net	11,492,986	4,230,318
Loans Receivable, Fair Value Disclosure	11,396,792	4,231,078
Servicing Asset		807
Servicing Asset at Fair Value, Amount		807
Deposits, Savings Deposits	6,006,958	4,616,616
Time Deposits	5,516,479	664,371
Deposits, Fair Value Disclosure	5,524,373	665,148
Borrowed Funds	363,672	113,726
Long-term Debt, Fair Value	363,804	113,726
Subordinated debentures	433,545	132,645
Subordinated Debt Obligations, Fair Value Disclosure	417,349	132,498
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	145,463	96,424
Interest-earning deposits in financial institutions	115,399	50,998
Available-for-sale Securities	514	507
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	0	0
Loans Receivable, Fair Value Disclosure	0	0
Servicing Asset at Fair Value, Amount		0
Deposits, Savings Deposits	0	0
Deposits, Fair Value Disclosure	0	0
Long-term Debt, Fair Value	360,000	106,600
Subordinated Debt Obligations, Fair Value Disclosure	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	0	0
Interest-earning deposits in financial institutions	0	0
Available-for-sale Securities	1,503,858	1,456,334
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	45,602	27,939
Loans Receivable, Fair Value Disclosure	2,366	2,051
Servicing Asset at Fair Value, Amount		0
Deposits, Savings Deposits	6,006,958	4,616,616
Deposits, Fair Value Disclosure	5,524,373	665,148
Long-term Debt, Fair Value	3,804	7,126
Subordinated Debt Obligations, Fair Value Disclosure	417,349	132,498
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	0	0
Interest-earning deposits in financial institutions	0	0
Available-for-sale Securities	35,309	37,904
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	0	0
Loans Receivable, Fair Value Disclosure	11,394,426	4,229,027
Servicing Asset at Fair Value, Amount		807
Deposits, Savings Deposits	0	0
Deposits, Fair Value Disclosure	0	0
Long-term Debt, Fair Value	0	0
Subordinated Debt Obligations, Fair Value Disclosure	$ 0	$ 0

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Business Segment (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information [Line Items]
Interest Income	$ 202,356	$ 204,363	$ 85,158	$ 495,079	$ 226,058
Interest expense	(13,510)	(11,830)	(2,869)	(27,685)	(9,603)
Intersegment interest income (expense), net	0	0	0	0	0
Net interest income	188,846	192,533	82,289	467,394	216,455
Provision for Loan, Lease, and Other Losses	(5,050)	(5,030)	4,167	(9,436)	2,872
Gain on securities	0	89	5,222	4,841	5,631
FDIC loss sharing expense	(7,415)	(8,525)	(7,032)	(27,370)	(15,579)
Other noninterest income	23,729	16,915	12,159	52,013	18,118
Total non-interest income	16,314	8,479	5,127	29,484	8,170
Foreclosed assets (expense) income, net	(4,827)	(497)	420	(3,463)	934
Intangible asset amortization	(1,608)	(1,677)	(1,512)	(4,649)	(3,972)
Acquisition, integration and reorganization costs	(5,193)	(86,242)	(5,450)	(93,635)	(24,139)
Other noninterest expense	84,001	81,490	49,658	214,657	137,422
Total noninterest expense	(95,629)	(169,906)	(56,200)	(316,404)	(164,599)
Intersegment noninterest income (expense_	0	0		0
Total noninterest expense - adjusted	(95,629)	(169,906)		(316,404)
Earnings (loss) from continuing operations before taxes	104,481	26,076	35,383	171,038	62,898
Income Tax Expense (Benefit)	(42,205)	(14,846)	(11,243)	(71,627)	(20,868)
Net earnings (loss) from continuing operations	62,276	11,230	24,140	99,411	42,030
Loss from discontinued operations before taxes	(8)	(1,151)	39	(2,572)	(42)
Discontinued Operation, Tax Effect of Discontinued Operation	3	476	(16)	1,067	18
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax	(5)	(675)	23	(1,505)	(24)
Net earnings	62,271	10,555	24,163	97,906	42,006
Pacific Western Bank [Member]
Segment Reporting Information [Line Items]
Interest Income	67,132	69,977	72,873	214,704	189,101
Interest expense	(8,851)	(7,450)	(1,692)	(17,528)	(6,422)
Intersegment interest income (expense), net	5,250	4,071	353	9,543	1,284
Net interest income	63,531	66,598	71,534	206,719	183,963
Provision for Loan, Lease, and Other Losses	6,314	4,418	5,782	11,558	6,053
Gain on securities	0	89		4,841	5,631
FDIC loss sharing expense	(7,415)	(8,525)	(7,032)	(27,370)	(15,579)
Other noninterest income	7,566	3,681	5,466	18,144	10,240
Total non-interest income	151	(4,755)	(1,566)	(4,385)	292
Foreclosed assets (expense) income, net	(4,627)	(633)	420	(3,399)	934
Intangible asset amortization	(1,517)	(1,530)	(1,354)	(4,238)	(3,474)
Acquisition, integration and reorganization costs	(3,953)	(77,713)	(5,190)	(83,866)	(23,879)
Other noninterest expense	53,784	51,507	42,435	146,281	115,352
Total noninterest expense	(63,881)	(131,383)	(48,559)	(237,784)	(141,771)
Intersegment noninterest income (expense_	26,411	23,533		49,944
Total noninterest expense - adjusted	(37,470)	(107,850)		(187,840)
Earnings (loss) from continuing operations before taxes	32,526	(41,589)	27,191	26,052	48,537
Income Tax Expense (Benefit)	(13,870)	12,081	(9,996)	(14,123)	(17,038)
Net earnings (loss) from continuing operations	18,656	(29,508)	17,195	11,929	31,499
Loss from discontinued operations before taxes	(8)	(1,151)	39	(2,572)	(42)
Discontinued Operation, Tax Effect of Discontinued Operation	3	476	(16)	1,067	18
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax	(5)	(675)	23	(1,505)	(24)
Net earnings	18,651	(30,183)	17,218	10,424	31,475
National Lending Segment [Member]
Segment Reporting Information [Line Items]
Interest Income	134,624	132,742	12,285	278,131	36,957
Interest expense	(45)	(62)	(108)	(184)	(447)
Intersegment interest income (expense), net	(5,250)	(4,071)	(353)	(9,543)	(1,284)
Net interest income	129,329	128,609	11,824	268,404	35,226
Provision for Loan, Lease, and Other Losses	(11,364)	(9,448)	(1,615)	(20,994)	(3,181)
Gain on securities	0	0		0	0
FDIC loss sharing expense	0	0	0	0	0
Other noninterest income	9,953	12,487	1,443	26,885	2,579
Total non-interest income	9,953	12,487	1,443	26,885	2,579
Foreclosed assets (expense) income, net	(322)	38	0	(284)	0
Intangible asset amortization	(91)	(147)	(158)	(411)	(498)
Acquisition, integration and reorganization costs	(1,240)	(7,474)	0	(8,714)	0
Other noninterest expense	24,835	24,484	5,822	55,892	17,855
Total noninterest expense	(26,488)	(32,067)	(5,980)	(65,301)	(18,353)
Intersegment noninterest income (expense_	(26,411)	(23,533)		(49,944)
Total noninterest expense - adjusted	(52,899)	(55,600)		(115,245)
Earnings (loss) from continuing operations before taxes	75,019	76,048	5,672	159,050	16,271
Income Tax Expense (Benefit)	(30,113)	(30,259)	(2,378)	(63,703)	(6,814)
Net earnings (loss) from continuing operations	44,906	45,789	3,294	95,347	9,457
Loss from discontinued operations before taxes	0	0	0	0	0
Discontinued Operation, Tax Effect of Discontinued Operation	0	0	0	0	0
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax	0	0	0	0	0
Net earnings	44,906	45,789	3,294	95,347	9,457
Other Segments [Member]
Segment Reporting Information [Line Items]
Interest Income	600	1,644	0	2,244	0
Interest expense	(4,614)	(4,318)	(1,069)	(9,973)	(2,734)
Intersegment interest income (expense), net	0	0	0	0	0
Net interest income	(4,014)	(2,674)	(1,069)	(7,729)	(2,734)
Provision for Loan, Lease, and Other Losses	0	0	0	0	0
Gain on securities	0	0		0	0
FDIC loss sharing expense	0	0	0	0	0
Other noninterest income	6,210	747	5,250	6,984	5,299
Total non-interest income	6,210	747	5,250	6,984	5,299
Foreclosed assets (expense) income, net	122	98	0	220	0
Intangible asset amortization	0	0	0	0	0
Acquisition, integration and reorganization costs	0	(1,055)	(260)	(1,055)	(260)
Other noninterest expense	5,382	5,499	1,401	12,484	4,215
Total noninterest expense	(5,260)	(6,456)	(1,661)	(13,319)	(4,475)
Intersegment noninterest income (expense_	0	0		0
Total noninterest expense - adjusted	(5,260)	(6,456)		(13,319)
Earnings (loss) from continuing operations before taxes	(3,064)	(8,383)	2,520	(14,064)	(1,910)
Income Tax Expense (Benefit)	1,778	3,332	1,131	6,199	2,984
Net earnings (loss) from continuing operations	(1,286)	(5,051)	3,651	(7,865)	1,074
Loss from discontinued operations before taxes	0	0	0	0	0
Discontinued Operation, Tax Effect of Discontinued Operation	0	0	0	0	0
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax	0	0	0	0	0
Net earnings	$ (1,286)	$ (5,051)	$ 3,651	$ (7,865)	$ 1,074

XML

Fair Value Measurements Fair Value Measurements (Textuals) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0
Threshold for loans that are considered individually significant for allowance analysis purposes	250,000
Non-PCI nonaccrual loans	88,948,000	46,774,000
Non-PCI nonaccrual loans write downs based on collateral values	$ 2,600,000

XML

Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Securities available‑for‑sale	$ 1,539,681	$ 1,494,745
Level 1
Securities available‑for‑sale	514	507
Level 2
Securities available‑for‑sale	1,503,858	1,456,334
Level 3
Securities available‑for‑sale	35,309	37,904
Government agency and government-sponsored enterprise pass through securities
Securities available‑for‑sale		707,188
Government agency and government-sponsored enterprise pass through securities | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	555,087
Government agency and government-sponsored enterprise pass through securities | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Government agency and government-sponsored enterprise pass through securities | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	555,087
Government agency and government-sponsored enterprise pass through securities | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Government agency and government-sponsored enterprise collateralized mortgage obligations [Member]
Securities available‑for‑sale		192,873
Government agency and government-sponsored enterprise collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	279,791
Government agency and government-sponsored enterprise collateralized mortgage obligations [Member] | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Government agency and government-sponsored enterprise collateralized mortgage obligations [Member] | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	279,791
Government agency and government-sponsored enterprise collateralized mortgage obligations [Member] | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Covered private label collateralized mortgage obligation [Member]
Securities available‑for‑sale		37,904
Covered private label collateralized mortgage obligation [Member] | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	35,309
Covered private label collateralized mortgage obligation [Member] | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Covered private label collateralized mortgage obligation [Member] | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Covered private label collateralized mortgage obligation [Member] | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	35,309
Other Private Label Collateralized Mortgage Obligations [Member]
Securities available‑for‑sale		0
Other Private Label Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	12,593
Other Private Label Collateralized Mortgage Obligations [Member] | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Other Private Label Collateralized Mortgage Obligations [Member] | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	12,593
Other Private Label Collateralized Mortgage Obligations [Member] | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Municipal securities
Securities available‑for‑sale		436,658
Municipal securities | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	482,427
Municipal securities | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Municipal securities | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	482,427
Municipal securities | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Corporate Debt Securities [Member]
Securities available‑for‑sale		82,707
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	112,143
Corporate Debt Securities [Member] | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Corporate Debt Securities [Member] | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	112,143
Corporate Debt Securities [Member] | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
US Government-sponsored Enterprises Debt Securities [Member]
Securities available‑for‑sale		9,872
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	36,382
US Government-sponsored Enterprises Debt Securities [Member] | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
US Government-sponsored Enterprises Debt Securities [Member] | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	36,382
US Government-sponsored Enterprises Debt Securities [Member] | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	0
Other securities [Member]
Securities available‑for‑sale		27,543
Other securities [Member] | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	25,949
Other securities [Member] | Level 1 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	514
Other securities [Member] | Level 2 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	25,435
Other securities [Member] | Level 3 | Fair Value, Measurements, Recurring [Member]
Securities available‑for‑sale	$ 0

XML

Acquisitions Acquisitions Tables

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following assets acquired and liabilities assumed of CapitalSource Inc. and FCAL are presented at estimated fair value as of their respective acquisition dates:

	Acquisition and Date Acquired
	CapitalSource Inc.		First California Financial Group
	April 7, 2014		May 31, 2013
	(In thousands)
Assets Acquired:
Cash and due from banks	$	768,553	$	6,124
Interest‑earning deposits in financial institutions	60,612		266,889
Investment securities available‑for‑sale	382,797		4,444
FHLB SF stock	46,060		9,518
Loans and leases	6,877,427		1,049,613
Equipment leased to others under operating leases	160,015		—
Premises and equipment	12,663		15,322
Foreclosed assets	6,382		13,772
FDIC loss sharing asset	—		17,241
Income tax assets	311,462		33,360
Goodwill	1,520,031		129,070
Core deposit and customer relationship intangibles	6,720		7,927
Other assets	581,905		27,576
Total assets acquired	$	10,734,627	$	1,580,856
Liabilities Assumed:
Noninterest‑bearing deposits	$	4,631	$	361,166
Interest‑bearing deposits	6,236,419		739,713
Other borrowings	992,109		—
Subordinated debentures	300,918		24,061
Discontinued operations	—		184,619
Accrued interest payable and other liabilities	123,362		19,729
Total liabilities assumed	$	7,657,439	$	1,329,288
Total consideration paid	$	3,077,188	$	251,568
Summary of consideration:
Cash paid	$	483,118	$	—
PacWest common stock issued	2,594,070		242,268
Cancellation of FCAL common stock owned by PacWest (at acquisition date fair value)	—		9,300
Total	$	3,077,188	$	251,568

Business Acquisition, Pro Forma Information

No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2013		2014		2013
	(Dollars in thousands, except per share data)
Pro forma revenues (net interest income plus noninterest income)	$	209,558	$	591,283	$	606,570
Pro forma net earnings from continuing operations	$	82,662	$	177,846	$	180,219
Pro forma net earnings from continuing operations per share:
Basic	$	0.81	$	1.73	$	1.76
Diluted	$	0.81	$	1.73	$	1.76

XML

Loans and Credit Quality (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	$ 11,591,395		$ 4,313,335
Loans And Leases Net Of Discounts Covered	351,379		382,796
Loans and Leases Receivable, Deferred Income	(16,510)		(983)
Loans held for investment, net	11,574,885		4,312,352	4,383,393
Loans and Leases Receivable, Allowance	81,899			(83,786)
Allowance for loan and lease losses	(81,899)	82,149	(82,034)	83,786	90,643	91,968
Loans and leases, net	11,492,986		4,230,318
Loans and Leases Receivable, Net Reported Amount, Covered	332,564		361,003
Total loans and leases, net	11,492,986		4,230,318	4,299,607
Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,721,290		2,795,998
Loans And Leases Net Of Discounts Covered	314,919		371,134
Loans and Leases Receivable, Allowance	(27,003)			(29,606)
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	293,317		219,517
Loans And Leases Net Of Discounts Covered	8,208		10,427
Loans and Leases Receivable, Allowance	(5,917)			(3,545)
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,468,105		1,242,750
Loans And Leases Net Of Discounts Covered	27,961		974
Loans and Leases Receivable, Allowance	(29,007)			(25,461)
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	108,683		55,070
Loans And Leases Net Of Discounts Covered	343		261
Loans held for investment, net	108,408
Loans and Leases Receivable, Allowance	(1,157)			(1,939)
NonCovered [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	11,239,964		3,930,539
Loans and Leases Receivable, Deferred Income	(16,458)		(983)
Loans held for investment, net	11,223,506		3,929,556	3,950,636
Loans and Leases Receivable, Allowance	(63,084)	(65,523)	(60,241)	(60,551)	(63,246)	(65,899)
Loans and leases, net	11,160,422		3,869,315
NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,406,371		2,424,864
Loans held for investment, net	5,398,244		2,422,107	2,548,932
Loans and Leases Receivable, Allowance	(27,003)	(22,276)	(26,078)	(29,606)	(31,804)	(38,700)
NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	285,109		209,090
Loans held for investment, net	283,067		207,779	188,872
Loans and Leases Receivable, Allowance	(5,917)	(4,302)	(4,298)	(3,545)	(3,432)	(3,221)
NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	5,440,144		1,241,776
Loans held for investment, net	5,433,787		1,244,785	1,178,923
Loans and Leases Receivable, Allowance	(29,007)	(35,530)	(26,921)	(25,461)	(26,343)	(22,252)
NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	108,340		54,809
Loans held for investment, net			54,885	33,909
Loans and Leases Receivable, Allowance	(1,157)	(3,415)	(2,944)	(1,939)	(1,667)	(1,726)
Purchased Credit Impaired Loans and Leases [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	351,431		382,796
Loans and Leases Receivable, Deferred Income	(52)		0
Loans held for investment, net	351,379		382,796	432,757
Loans and Leases Receivable, Allowance, Covered	(18,815)	(16,626)	(21,793)	(23,235)	(27,397)	(26,069)
Loans and Leases Receivable, Net Reported Amount, Covered	$ 332,564		$ 361,003

XML

Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 53,090	$ 53,090	$ 48,963	$ 53,090	$ 48,963	$ 48,963	$ 48,963	$ 53,339	$ 45,412
Finite-lived Intangible Assets Acquired	0	6,720	0	6,720	7,927
Finite Lived Intangible Assets Fully Amortized Portion	0	(1,293)	(4,376)	(1,293)	(4,376)
Impairment of Intangible Assets, Finite-lived	0	(804)	0	(804)	0
Finite-Lived Intangible Assets, Accumulated Amortization	(34,267)	(32,659)	(30,285)	(34,267)	(30,285)	(33,079)	(31,715)	(33,149)	(30,689)
Amortization of Intangible Assets	(1,608)	(1,677)	(1,512)	(4,649)	(3,972)
Finite-Lived Intangible Assets, Net	18,823	20,431	18,678	18,823	18,678
CDI and CRI [Member]
Finite-Lived Intangible Assets [Line Items]
Finite Lived Intangible Assets Fully Amortized Portion	0	(1,293)	(4,376)	(1,293)	(4,376)
Impairment of Intangible Assets, Finite-lived	$ 0	$ (1,300)	$ 0	$ (1,300)	$ 0

XML

Fair Value Measurements Fair Value Measurements (Details 5) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 70,739
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	42,021
Non Purchased Credit Impaired Loans and Leases [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	42,728
Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	40,362
Other real estate and foreclosed assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	28,011
Discounted Cash Flow [Member] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	36,306
Third party appraisals [Domain] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	4,056
Third party appraisals [Domain] | Other real estate and foreclosed assets [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 1,659
Minimum [Member] | Discounted Cash Flow [Member] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Minimum [Member] | Third party appraisals [Domain] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Minimum [Member] | Third party appraisals [Domain] | Other real estate and foreclosed assets [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	11.19%
Maximum [Member] | Discounted Cash Flow [Member] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	10.50%
Maximum [Member] | Third party appraisals [Domain] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Maximum [Member] | Third party appraisals [Domain] | Other real estate and foreclosed assets [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	62.61%
Weighted Average [Member] | Discounted Cash Flow [Member] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	6.87%
Weighted Average [Member] | Third party appraisals [Domain] | Non Purchased Credit Impaired Loans and Leases [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	0.00%
Weighted Average [Member] | Third party appraisals [Domain] | Other real estate and foreclosed assets [Member] | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	0.00%

XML

Discontinued Operations Discontinued Operations (Details) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	$ (8,000)	$ (1,151,000)	$ 39,000	$ (2,572,000)	$ (42,000)
Electronic Payment Systems [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 0			$ 0

XML

Loans and Credit Quality (Details 3) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 11,574,885	$ 4,312,352	$ 4,383,393
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	108,408
NonCovered [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,223,506	3,929,556	3,950,636
NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,398,244	2,422,107	2,548,932
NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	283,067	207,779	188,872
NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,433,787	1,244,785	1,178,923
NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income		54,885	33,909
NonCovered [Member] | Nonclassified [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	10,962,520	3,802,245
NonCovered [Member] | Nonclassified [Member] | Hospitality [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	504,066	168,216
NonCovered [Member] | Nonclassified [Member] | SBA Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	344,285	39,869
NonCovered [Member] | Nonclassified [Member] | Real Estate Other Class [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	4,430,742	2,132,109
NonCovered [Member] | Nonclassified [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,279,093	2,340,194
NonCovered [Member] | Nonclassified [Member] | Residential Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	71,961	58,131
NonCovered [Member] | Nonclassified [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	205,258	142,607
NonCovered [Member] | Nonclassified [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	277,219	200,738
NonCovered [Member] | Nonclassified [Member] | Collateralized Loan Obligations [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	416,759	567,643
NonCovered [Member] | Nonclassified [Member] | Unsecured Commercial Member [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	125,373	151,896
NonCovered [Member] | Nonclassified [Member] | Asset Based [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,575,920	195,569
NonCovered [Member] | Nonclassified [Member] | Cash Flow [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,238,196	0
NonCovered [Member] | Nonclassified [Member] | Equipment Finance Commercial Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	906,494	272,851
NonCovered [Member] | Nonclassified [Member] | SBA Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	39,042	22,880
NonCovered [Member] | Nonclassified [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,301,784	1,210,839
NonCovered [Member] | Nonclassified [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	104,424	50,474
NonCovered [Member] | Classified [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	260,986	127,311
NonCovered [Member] | Classified [Member] | Hospitality [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	15,284	12,337
NonCovered [Member] | Classified [Member] | SBA Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	7,483	5,297
NonCovered [Member] | Classified [Member] | Real Estate Other Class [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	96,384	64,279
NonCovered [Member] | Classified [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	119,151	81,913
NonCovered [Member] | Classified [Member] | Residential Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	925	750
NonCovered [Member] | Classified [Member] | Commercial Real Estate Construction Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	4,923	6,291
NonCovered [Member] | Classified [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	5,848	7,041
NonCovered [Member] | Classified [Member] | Collateralized Loan Obligations [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	11,818	18,838
NonCovered [Member] | Classified [Member] | Unsecured Commercial Member [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,666	1,856
NonCovered [Member] | Classified [Member] | Asset Based [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	18,512	6,859
NonCovered [Member] | Classified [Member] | Cash Flow [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	76,002	0
NonCovered [Member] | Classified [Member] | Equipment Finance Commercial Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	21,966	632
NonCovered [Member] | Classified [Member] | SBA Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,039	5,761
NonCovered [Member] | Classified [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	132,003	33,946
NonCovered [Member] | Classified [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	3,984	4,411
Unsecured Commercial Member [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	127,039	153,752
Asset Based [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	1,594,432	202,428
Cash Flow [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	2,314,198	0
Equipment Finance Commercial Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	928,460	273,483
SBA Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	41,081	28,641
Residential Real Estate Construction Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	72,886	58,881
Commercial Real Estate Construction Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	210,181	148,898
Hospitality [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	519,350	180,553
SBA Loans [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	351,768	45,166
Real Estate Other Class [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 4,527,126	$ 2,196,388

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Borrowings Borrowings Details 1 (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014		Dec. 31, 2013
Subordinated Borrowing [Line Items]
Subordinated debentures	$ 433,545		$ 132,645
Subordinated Debt Trust V Due September 2033 [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	10,310		10,310
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	3.33%	[1]	3.34%	[2]
Debt Instrument Date Issued	Aug. 15, 2003
Debt Instrument, Maturity Date	Sep. 17, 2033
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 3.10
Subordinated Debt Trust VI Due September 2033 [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	10,310		10,310
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	3.28%	[1]	3.29%	[2]
Debt Instrument Date Issued	Sep. 03, 2003
Debt Instrument, Maturity Date	Sep. 15, 2033
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 3.05
Subordinated Debt Trust CII Due September 2033 [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	5,155		5,155
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	3.18%	[1]	3.19%	[2]
Debt Instrument Date Issued	Sep. 17, 2003
Debt Instrument, Maturity Date	Sep. 17, 2033
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 2.95
Subordinated Debt Trust VII Due April 2034 [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	61,856		61,856
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.99%	[1]	2.99%	[2]
Debt Instrument Date Issued	Feb. 05, 2004
Debt Instrument, Maturity Date	Apr. 23, 2034
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 2.75
Subordinated Debt Trust CIII Due September 2035 [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	20,619		20,619
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	1.92%	[1]	1.93%	[2]
Debt Instrument Date Issued	Aug. 15, 2005
Debt Instrument, Maturity Date	Sep. 15, 2035
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.69
Subordinated Debt Trust FCCI Due March 2037 [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	16,495		16,495
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	1.83%	[1]	1.84%	[2]
Debt Instrument Date Issued	Jan. 25, 2007
Debt Instrument, Maturity Date	Mar. 15, 2037
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.60
Subordinated Debt Trust FCBI Due December 2035 [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	10,310		10,310
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	1.78%	[1]	1.79%	[2]
Debt Instrument Date Issued	Sep. 30, 2005
Debt Instrument, Maturity Date	Dec. 15, 2035
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.55
Trust Preferred Securities Two Thousand Five Series One [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	82,475	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.18%	[1],[3]
Debt Instrument Date Issued	Nov. 21, 2005
Debt Instrument, Maturity Date	Dec. 15, 2035
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.95
Trust Preferred Securities Two Thousand Five Series Two [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	128,866	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.19%	[1],[3]
Debt Instrument Date Issued	Dec. 14, 2005
Debt Instrument, Maturity Date	Jan. 30, 2036
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.95
Two Thousand Six One Term Debt Securitization [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	51,545	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.19%	[1],[3]
Debt Instrument Date Issued	Feb. 22, 2006
Debt Instrument, Maturity Date	Apr. 30, 2036
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.95
Two Thousand Six Two Term Debt Securitization [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	51,550	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.19%	[1],[3]
Debt Instrument Date Issued	Sep. 27, 2006
Debt Instrument, Maturity Date	Oct. 30, 2036
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.95
Trust Preferred Securities Two Thousand Six Series Three [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	32,551	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	1.29%	[1],[3]
Debt Instrument Date Issued	Sep. 29, 2006
Debt Instrument, Maturity Date	Oct. 30, 2036
Debt Instrument, Basis Spread on Variable Rate	3 month EURIBOR + 2.05
Trust Preferred Securities Two Thousand Six Series Four [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	16,470	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.19%	[1],[3]
Debt Instrument Date Issued	Dec. 05, 2006
Debt Instrument, Maturity Date	Jan. 30, 2037
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.95
Trust Preferred Securities Two Thousand Six Series Five [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	6,650	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.19%	[1],[3]
Debt Instrument Date Issued	Dec. 19, 2006
Debt Instrument, Maturity Date	Jan. 30, 2037
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.95
Two Thousand Seven One Term Debt Securitization [Member]
Subordinated Borrowing [Line Items]
Long-term Debt, Gross	39,177	[3]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	2.19%	[1],[3]
Debt Instrument Date Issued	Jun. 13, 2007
Debt Instrument, Maturity Date	Jul. 30, 2037
Debt Instrument, Basis Spread on Variable Rate	3 month LIBOR + 1.95
Subordinated Debt [Member]
Subordinated Borrowing [Line Items]
Debt Instrument, Unamortized Discount	(110,794)	[4]	(2,410)
Subordinated debentures	433,545		132,645
Long-term Debt, Gross	$ 544,339		$ 135,055

[1] (1)As of September 30, 2014.

[2] (2)As of January 28, 2014.

[3] (3)Acquired in the CapitalSource Inc. merger.

[4] (4)Amount represents the fair value adjustment on trust preferred securities assumed in the CapitalSource Inc. and FCAL acquisitions.

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Foreclosed Assets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Other Real Estate Owned Net	$ 31,138	$ 51,837
Other Foreclosed Assets NonCovered	9,386	4,054
Other Real Estate Owned Net Noncovered including Foreclosed Assets	40,524	55,891
Foreclosed assets, net	40,524	55,891
NonCovered [Member] | Commercial Real Estate [Member]
Other Real Estate Owned Net	2,559
NonCovered [Member] | Construction and Land Development [Member]
Other Real Estate Owned Net	27,731
NonCovered [Member] | Multi Family [Member]
Other Real Estate Owned Net	835
NonCovered [Member] | Residential Mortgage [Member]
Other Real Estate Owned Net	13
Covered [Member] | Commercial Real Estate [Member]
Other Real Estate Owned Net		15,753
Covered [Member] | Construction and Land Development [Member]
Other Real Estate Owned Net		35,063
Covered [Member] | Multi Family [Member]
Other Real Estate Owned Net		835
Covered [Member] | Residential Mortgage [Member]
Other Real Estate Owned Net		$ 186

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Investments Investments (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]
Interest Income, Securities, Operating, Taxable	$ 7,850	$ 7,668	$ 6,028	$ 22,438	$ 16,979
Interest Income, Securities, Operating, Tax Exempt	3,343	3,333	3,302	10,004	8,443
Investment Income, Dividend	1,138	985	541	2,698	1,079
Investment Income, Interest and Dividend	$ 12,331	$ 11,986	$ 9,871	$ 35,140	$ 26,501

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Discontinued Operations Discontinued Operations Notes

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 2.  Discontinued Operations    

Discontinued operations include the income and expense related to Electronic Payment Services ("EPS"), a discontinued division of the Bank acquired in connection with the FCAL acquisition. For the three months endedSeptember 30, 2014, the EPS division recorded no revenues and a pre-tax loss of $8,000. For the nine months endedSeptember 30, 2014, the EPS division recorded no revenues and a pre-tax loss of $2.6 million. Liabilities of the EPS division, which consist primarily of noninterest‑bearing deposits, are included in the condensed consolidated balance sheets under the caption “Accrued interest payable and other liabilities.” For segment reporting purposes, the EPS division is included in our Community Banking segment.

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Foreclosed Assets Foreclosed Assets (Details) (USD $) In Thousands, unless otherwise specified			9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 NonCovered [Member]	Sep. 30, 2014 NonCovered [Member] Capitalsource, Inc. [Member]
Business Acquisition [Line Items]
Other Foreclosed Assets Acquired				$ 6,382
SEC Schedule III, Real Estate, Acquisitions Through Foreclosures			667
Provision for Other Real Estate Owned and Foreclosed Assets			(5,065)
Other Real Estate Owned Foreclosed Assets CORES			(17,351)
Foreclosed assets, net	40,524	55,891
Other Real Estate Owned Net Noncovered including Foreclosed Assets	$ 40,524	$ 55,891

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Goodwill and Other Intangible Assets Goodwill and Intangible Assets (Details Textual) (USD $)	3 Months Ended			9 Months Ended		12 Months Ended	3 Months Ended			9 Months Ended		3 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2014 Scenario, Forecast [Member]	Sep. 30, 2014 CDI and CRI [Member]	Jun. 30, 2014 CDI and CRI [Member]	Sep. 30, 2013 CDI and CRI [Member]	Sep. 30, 2014 CDI and CRI [Member]	Sep. 30, 2013 CDI and CRI [Member]	Jun. 30, 2014 CDI and CRI [Member] CapitalSource Inc. [Member]
Goodwill, Impairment Loss	$ 0	$ 6,600,000		$ 6,645,000
Impairment of Intangible Assets, Finite-lived	0	804,000	0	804,000	0		0	1,300,000	0	1,300,000	0	500,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	4 years 6 months 20 days
Amortization of Intangible Assets	1,608,000	1,677,000	1,512,000	4,649,000	3,972,000	6,700,000
Aggregate Amortization Expense 2015	6,000,000			6,000,000
Aggregate Amortization Expense 2016	4,100,000			4,100,000
Aggregate Amortization Expense 2017	2,300,000			2,300,000
Aggregate Amortization Expense 2018	2,000,000			2,000,000
Aggregate Amortization Expense 2019	$ 1,700,000			$ 1,700,000

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Foreclosed Assets (Tables)

9 Months Ended

Sep. 30, 2014

Other Real Estate Owned Net Covered and NonCovered Including Foreclosed Assets [Abstract]

Other Real Estate and Foreclosed Assets

The following tables summarize foreclosed assets at the dates indicated:

Property Type:	September 30, 2014		December 31, 2013
	(In thousands)
Commercial real estate	$	2,559	$	15,753
Construction and land development	27,731		35,063
Multi‑family	835		835
Single family residence	13		186
Total other real estate owned, net	31,138		51,837
Other foreclosed assets	9,386		4,054
Total foreclosed assets	$	40,524	$	55,891

Other Foreclosed Assets Rollforward

The following table presents a rollforward of foreclosed assets, net of the valuation allowance, for the periods indicated:

	Foreclosed Assets
	(In thousands)
Balance, December 31, 2013	$	55,891
Addition from the CapitalSource Inc. merger	6,382
Foreclosures	667
Provision for losses	(5,065		)
Reductions related to sales	(17,351		)
Balance, September 30, 2014	$	40,524

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Loans and Credit Quality (Tables)

9 Months Ended

Sep. 30, 2014

Accounts, Notes, Loans and Financing Receivable [Line Items]

Accretable Yield on Purchased Credit Impaired Loans

The following table summarizes the accretable yield on the PCI loans acquired in the CapitalSource Inc. merger as of April 7, 2014:

	April 7, 2014 Accretable Yield
	(In thousands)
Undiscounted contractual cash flows	$	227,688
Undiscounted cash flows not expected to be collected (nonaccretable difference)	(134,726		)
Undiscounted cash flows expected to be collected	92,962
Estimated fair value of PCI loans acquired	(79,234		)
Accretable yield	$	13,728

Schedule Of Composition of Loans Portfolio

The following table summarizes the composition of our loan and lease portfolio as of the dates indicated:

	September 30, 2014									December 31, 2013
	Non-PCI									Non-PCI
	Loans			PCI						Loans			PCI
	and Leases			Loans			Total			and Leases			Loans			Total
	(In thousands)
Real estate mortgage	$	5,406,371		$	314,919		$	5,721,290		$	2,424,864		$	371,134		$	2,795,998
Real estate construction	285,109			8,208			293,317			209,090			10,427			219,517
Commercial	5,440,144			27,961			5,468,105			1,241,776			974			1,242,750
Consumer	108,340			343			108,683			54,809			261			55,070
Total gross loans and leases	11,239,964			351,431			11,591,395			3,930,539			382,796			4,313,335
Deferred fees and costs	(16,458		)	(52		)	(16,510		)	(983		)	—			(983		)
Total loans and leases, net of unearned income	11,223,506			351,379			11,574,885			3,929,556			382,796			4,312,352
Allowance for loan and lease losses	(63,084		)	(18,815		)	(81,899		)	(60,241		)	(21,793		)	(82,034		)
Total net loans and leases	$	11,160,422		$	332,564		$	11,492,986		$	3,869,315		$	361,003		$	4,230,318

Allowance for Loan Losses

The following tables present a summary of the activity in the allowance for loan and lease losses on Non‑PCI loans and leases by portfolio segment and PCI loans for the periods indicated:

	Three Months Ended September 30, 2014
	Real Estate Mortgage			Real Estate Construction		Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	22,276		$	4,302	$	35,530		$	3,415		$	65,523		$	16,626		$	82,149
Charge-offs	(395		)	—		(7,282		)	(171		)	(7,848		)	(108		)	(7,956		)
Recoveries	1,312			24		337			52			1,725			—			1,725
Provision (negative provision)	3,810			1,591		422			(2,139		)	3,684			2,297			5,981
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899

	Nine Months Ended September 30, 2014
	Real Estate Mortgage			Real Estate Construction		Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	26,078		$	4,298	$	26,921		$	2,944		$	60,241		$	21,793		$	82,034
Charge-offs	(976		)	—		(9,049		)	(203		)	(10,228		)	(4,712		)	(14,940		)
Recoveries	1,949			112		1,301			294			3,656			51			3,707
Provision (negative provision)	(48		)	1,507		9,834			(1,878		)	9,415			1,683			11,098
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	1,568		$	119	$	7,654		$	34		$	9,375
Collectively evaluated for impairment	$	25,435		$	5,798	$	21,353		$	1,123		$	53,709
Acquired loans with deteriorated credit quality															$	18,815
Loan and Leases:
Ending balance	$	5,398,244		$	283,067	$	5,433,787		$	108,408		$	11,223,506		$	351,379		$	11,574,885
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	59,729		$	12,692	$	47,180		$	3,655		$	123,256
Collectively evaluated for impairment	$	5,338,515		$	270,375	$	5,386,607		$	104,753		$	11,100,250
Acquired loans with deteriorated credit quality															$	351,379

	Three Months Ended September 30, 2013
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for loan and lease losses:
Balance, beginning of period	$	31,804		$	3,432		$	26,343		$	1,667		$	63,246		$	27,397		$	90,643
Charge-offs	(281		)	—			(2,439		)	(75		)	(2,795		)	—			(2,795		)
Recoveries	152			179			324			15			670			5			675
Provision (negative provision)	(2,069		)	(66		)	1,233			332			(570		)	(4,167		)	(4,737		)
Balance, end of period	$	29,606		$	3,545		$	25,461		$	1,939		$	60,551		$	23,235		$	83,786

	Nine Months Ended September 30, 2013
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for loan and lease losses:
Balance, beginning of period	$	38,700		$	3,221		$	22,252		$	1,726		$	65,899		$	26,069		$	91,968
Charge-offs	(3,840		)	—			(4,631		)	(111		)	(8,582		)	—			(8,582		)
Recoveries	1,665			514			2,028			57			4,264			38			4,302
Provision (negative provision)	(6,919		)	(190		)	5,812			267			(1,030		)	(2,872		)	(3,902		)
Balance, end of period	$	29,606		$	3,545		$	25,461		$	1,939		$	60,551		$	23,235		$	83,786
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	3,225		$	103		$	6,147		$	240		$	9,715
Collectively evaluated for impairment	$	26,381		$	3,442		$	19,314		$	1,699		$	50,836
Acquired loans with deteriorated credit quality																$	23,235
Loan and Leases:
Ending balance	$	2,548,932		$	188,872		$	1,178,923		$	33,909		$	3,950,636		$	432,757		$	4,383,393
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	90,329		$	14,878		$	25,083		$	792		$	131,082
Collectively evaluated for impairment	$	2,458,603		$	173,994		$	1,153,840		$	33,117		$	3,819,554
Acquired loans with deteriorated credit quality																$	432,757

CV of Loans Held for Investment by class by performing and nonperforming

The following table presents the credit risk rating categories for Non‑PCI loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful.

	September 30, 2014						December 31, 2013
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	504,066	$	15,284	$	519,350	$	168,216	$	12,337	$	180,553
SBA	344,285		7,483		351,768		39,869		5,297		45,166
Other	4,430,742		96,384		4,527,126		2,132,109		64,279		2,196,388
Total real estate mortgage	5,279,093		119,151		5,398,244		2,340,194		81,913		2,422,107
Real estate construction:
Residential	71,961		925		72,886		58,131		750		58,881
Commercial	205,258		4,923		210,181		142,607		6,291		148,898
Total real estate construction	277,219		5,848		283,067		200,738		7,041		207,779
Commercial:
Collateralized	416,759		11,818		428,577		567,643		18,838		586,481
Unsecured	125,373		1,666		127,039		151,896		1,856		153,752
Asset-based	1,575,920		18,512		1,594,432		195,569		6,859		202,428
Cash flow	2,238,196		76,002		2,314,198		—		—		—
Equipment finance	906,494		21,966		928,460		272,851		632		273,483
SBA	39,042		2,039		41,081		22,880		5,761		28,641
Total commercial	5,301,784		132,003		5,433,787		1,210,839		33,946		1,244,785
Consumer	104,424		3,984		108,408		50,474		4,411		54,885
Total Non-PCI loans and leases	$	10,962,520	$	260,986	$	11,223,506	$	3,802,245	$	127,311	$	3,929,556

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period

The following table summarizes the changes in the carrying amount of PCI loans and accretable yield on those loans for the period indicated:

	Carrying Amount			Accretable Yield
	(In thousands)
Balance, December 31, 2013	$	361,003		$	(139,568	)
Addition	79,234			(13,728		)
Accretion	45,919			45,919
Payments received	(151,910		)	—
Decrease in expected cash flows, net	—			(12,435		)
Provision for credit losses	(1,682		)	—
Balance, September 30, 2014	$	332,564		$	(119,812	)

Non Purchased Credit Impaired Loans and Leases [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Delinquent loans in loan portfolio

The following tables present an aging analysis of our Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2014
	30-89 Days Past Due		90 or More  Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	519,350	$	519,350
SBA	2,304		516		2,820		348,948		351,768
Other	8,150		13,128		21,278		4,505,848		4,527,126
Total real estate mortgage	10,454		13,644		24,098		5,374,146		5,398,244
Real estate construction:
Residential	—		542		542		72,344		72,886
Commercial	1,928		1,487		3,415		206,766		210,181
Total real estate construction	1,928		2,029		3,957		279,110		283,067
Commercial:
Collateralized	56		940		996		427,581		428,577
Unsecured	38		25		63		126,976		127,039
Asset-based	271		—		271		1,594,161		1,594,432
Cash flow	235		—		235		2,313,963		2,314,198
Equipment finance	119		132		251		928,209		928,460
SBA	—		—		—		41,081		41,081
Total commercial	719		1,097		1,816		5,431,971		5,433,787
Consumer	168		3,244		3,412		104,996		108,408
Total Non-PCI loans and leases	$	13,269	$	20,014	$	33,283	$	11,190,223	$	11,223,506

	December 31, 2013
	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	180,553	$	180,553
SBA	2,564		—		2,564		42,602		45,166
Other	13,026		2,406		15,432		2,180,956		2,196,388
Total real estate mortgage	15,590		2,406		17,996		2,404,111		2,422,107
Real estate construction:
Residential	—		—		—		58,881		58,881
Commercial	—		2,013		2,013		146,885		148,898
Total real estate construction	—		2,013		2,013		205,766		207,779
Commercial:
Collateralized	473		259		732		585,749		586,481
Unsecured	83		68		151		153,601		153,752
Asset-based	—		—		—		202,428		202,428
Equipment finance	2,662		244		2,906		270,577		273,483
SBA	1,770		243		2,013		26,628		28,641
Total commercial	4,988		814		5,802		1,238,983		1,244,785
Consumer	3,319		—		3,319		51,566		54,885
Total Non-PCI loans and leases	$	23,897	$	5,233	$	29,130	$	3,900,426	$	3,929,556

Financing Receivable Non Accrual And Performing

The following table presents our nonaccrual and performing Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2014						December 31, 2013
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	6,451	$	512,899	$	519,350	$	6,723	$	173,830	$	180,553
SBA	7,483		344,285		351,768		2,602		42,564		45,166
Other	26,575		4,500,551		4,527,126		18,648		2,177,740		2,196,388
Total real estate mortgage	40,509		5,357,735		5,398,244		27,973		2,394,134		2,422,107
Real estate construction:
Residential	925		71,961		72,886		389		58,492		58,881
Commercial	2,703		207,478		210,181		2,830		146,068		148,898
Total real estate construction	3,628		279,439		283,067		3,219		204,560		207,779
Commercial:
Collateralized	5,165		423,412		428,577		9,991		576,490		586,481
Unsecured	226		126,813		127,039		458		153,294		153,752
Asset-based	5,003		1,589,429		1,594,432		1,070		201,358		202,428
Cash flow	15,958		2,298,240		2,314,198		—		—		—
Equipment finance	12,885		915,575		928,460		632		272,851		273,483
SBA	2,039		39,042		41,081		3,037		25,604		28,641
Total commercial	41,276		5,392,511		5,433,787		15,188		1,229,597		1,244,785
Consumer	3,535		104,873		108,408		394		54,491		54,885
Total Non-PCI loans and leases	$	88,948	$	11,134,558	$	11,223,506	$	46,774	$	3,882,782	$	3,929,556

Schedule Of Non Accrual and Performing Restructured Impaired Financing Receivables

Non‑PCI nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. The following table presents the composition of our impaired loans and leases as of the dates indicated:

	September 30, 2014						December 31, 2013
			Performing		Total				Performing		Total
	Nonaccrual		Restructured		Impaired		Nonaccrual		Restructured		Impaired
	Loans/Leases		Loans		Loans/Leases		Loans/Leases		Loans		Loans/Leases
	(In thousands)
Real estate mortgage	$	40,509	$	19,220	$	59,729	$	27,973	$	34,303	$	62,276
Real estate construction	3,628		9,064		12,692		3,219		4,293		7,512
Commercial	41,276		5,904		47,180		15,188		2,744		17,932
Consumer	3,535		120		3,655		394		308		702
Total	$	88,948	$	34,308	$	123,256	$	46,774	$	41,648	$	88,422

Impaired Financing Receivables, Average Balances And Interest Income Recognized

The following tables present information regarding our Non‑PCI impaired loans and leases by portfolio segment and class for the dates indicated:

	September 30, 2014						December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,957	$	1,956	$	92	$	5,717	$	6,215	$	198
SBA	—		—		—		1,642		1,643		230
Other	13,302		13,389		1,476		15,937		16,571		1,760
Real estate construction:
Residential	767		767		72		778		778		168
Commercial	1,162		4,945		47		1,250		1,250		1
Commercial:
Collateralized	5,404		5,789		3,536		4,377		4,692		4,270
Unsecured	620		631		416		801		829		375
Asset-based	262		262		262		1,070		1,070		180
Cash flow	15,958		18,014		2,666		—		—		—
Equipment finance	1,864		1,864		774		—		—		—
SBA	—		—		—		1,136		1,136		178
Consumer	146		145		34		424		471		240
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,451	$	7,593	$	—	$	3,013	$	3,385	$	—
SBA	7,483		10,712		—		2,602		3,646		—
Other	30,536		41,596		—		33,365		46,062		—
Real estate construction:
Residential	542		550		—		—		—		—
Commercial	10,221		10,995		—		5,484		9,923		—
Commercial:
Collateralized	3,820		10,932		—		6,700		9,924		—
Unsecured	180		278		—		179		247		—
Asset-based	4,741		5,584		—		—		—		—
Cash flow	—		505		—		—		—		—
Equipment finance	11,021		14,809		—		632		632		—
SBA	3,310		4,984		—		3,037		4,945		—
Consumer	3,509		3,681		—		278		394		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	59,729	$	75,246	$	1,568	$	62,276	$	77,522	$	2,188
Real estate construction	12,692		17,257		119		7,512		11,951		169
Commercial	47,180		63,652		7,654		17,932		23,475		5,003
Consumer	3,655		3,826		34		702		865		240
Total	$	123,256	$	159,981	$	9,375	$	88,422	$	113,813	$	7,600

	Three Months Ended September 30,
	2014				2013
	Weighted Average Balance(1)		Interest Income Recognized		Weighted Average Balance(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,963	$	20	$	8,779	$	226
SBA	—		—		1,659		23
Other	13,401		99		51,327		513
Real estate construction:
Residential	768		4		393		—
Commercial	1,176		6		8,540		87
Commercial:
Collateralized	5,815		43		3,804		10
Unsecured	624		6		2,062		8
Asset-based	265		—		223		5
Cash flow	15,695		—		—		—
Equipment finance	1,889		—		—		—
SBA	—		—		1,094		12
Consumer	148		2		436		3
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,485	$	—	$	—	$	—
SBA	7,746		38		2,935		—
Other	31,313		87		25,041		133
Real estate construction:
Residential	542		—		441		—
Commercial	10,236		74		4,568		(59		)
Commercial:
Collateralized	5,252		21		4,266		—
Unsecured	202		—		179		—
Asset-based	—		—		—		—
Cash flow	—		—		—		—
Equipment finance	9,818		671		244		—
SBA	3,756		36		2,872		5
Consumer	3,745		2		173		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	60,908	$	244	$	89,741	$	895
Real estate construction	12,722		84		13,942		28
Commercial	43,316		777		14,744		40
Consumer	3,893		4		609		3
Total	$	120,839	$	1,109	$	119,036	$	966

_________________________

(1) For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2014 and 2013, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

	Nine Months Ended September 30,
	2014				2013
	Weighted Average Balance(1)		Interest Income Recognized		Weighted Average Balance(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,971	$	60	$	8,770	$	109
SBA	—		—		1,649		23
Other	13,218		376		47,411		481
Real estate construction:
Residential	770		12		391		—
Commercial	539		13		8,541		88
Commercial:
Collateralized	5,167		92		4,467		7
Unsecured	664		18		787		8
Asset-based	268		—		2,377		—
Cash flow	5,232		—		—		—
Equipment finance	1,073		—		—		—
SBA	—		—		1,278		12
Consumer	1,890		11		429		3
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,529	$	—	$	—	$	—
SBA	5,378		38		2,791		—
Other	26,235		240		25,540		410
Real estate construction:
Residential	406		—		435		—
Commercial	8,888		171		5,511		98
Commercial:
Collateralized	2,772		52		8,989		15
Unsecured	264		—		217		—
Asset-based	1,560		—		—		—
Cash flow	58		—		—		—
Equipment finance	7,436		671		244		—
SBA	2,189		36		2,846		5
Consumer	1,417		2		248		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	53,331	$	714	$	86,161	$	1,023
Real estate construction	10,603		196		14,878		186
Commercial	26,683		869		21,205		47
Consumer	3,307		13		677		3
Total	$	93,924	$	1,792	$	122,921	$	1,259

_________________________

(1) For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2014 and 2013, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

Troubled Debt Restructurings on Financing Receivables

The following tables present new troubled debt restructurings of Non-PCI loans for the periods indicated:

	Three Months Ended September 30, 2014					Three Months Ended September 30, 2013
Troubled Debt Restructurings:	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Real estate mortgage:
SBA	1	$	64	$	64	—	$	—	$	—
Other	7	10,496		10,496		—	—		—
Commercial:
Collateralized	9	1,507		1,507		8	4,824		4,824
Unsecured	3	173		173		2	499		499
Asset-based	—	—		—		1	17		17
SBA	2	1,313		1,313		—	—		—
Consumer	3	183		183		—	—		—
Total	25	$	13,736	$	13,736	11	$	5,340	$	5,340

	Nine Months Ended September 30, 2014					Nine Months Ended September 30, 2013
Troubled Debt Restructurings:	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars In thousands)
Real estate mortgage:
SBA	1	$	64	$	64	—	$	—	$	—
Other	15	14,352		14,352		12	16,215		16,215
Real estate construction - Commercial	2	4,920		4,920		—	—		—
Commercial:
Collateralized	15	4,853		4,853		7	4,553		4,553
Unsecured	5	211		211		5	502		502
Asset-based	—	—		—		1	2,032		2,032
SBA	2	1,313		1,313		4	137		137
Consumer	4	307		307		—	—		—
Total	44	$	26,020	$	26,020	29	$	23,439	$	23,439

The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated:

	Three Months Ended September 30,
	2014				2013
Troubled Debt Restructurings	Number of	Recorded			Number of	Recorded
That Subsequently Defaulted:	Loans	Investment(1)			Loans	Investment(1)
	(Dollars in thousands)
Real estate construction - Commercial	1	$	1,190		—	$	—
Commercial - Unsecured	2	37			2	70
Total	3	$	1,227	(2)	2	$	70	(3)

_________________________

(1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.

(2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million.

(3) Represents the balance at September 30, 2013 and there were no charge-offs.

	Nine Months Ended September 30,
	2014				2013
Troubled Debt Restructurings	Number of	Recorded			Number of	Recorded
That Subsequently Defaulted:	Loans	Investment(1)			Loans	Investment(1)
	(Dollars in thousands)
Real estate mortgage - Other	—	$	—		1	$	1,327
Real estate construction - Commercial	1	1,190			—	—
Commercial:
Collateralized	1	22			1	427
Unsecured	2	37			2	70
Consumer	1	109			—	—
Total	5	$	1,358	(2)	4	$	1,824	(3)

_________________________

(1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.

(2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million

(3) Represents the balance at September 30, 2013, and is net of charge-offs of $1.1 million

Purchased Credit Impaired Loans and Leases [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

CV of Loans Held for Investment by class by performing and nonperforming

The following table presents the credit risk rating categories for PCI loans by portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful.

	September 30, 2014						December 31, 2013
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage	$	180,763	$	134,108	$	314,871	$	216,092	$	155,042	$	371,134
Real estate construction	1,921		6,282		8,203		4,399		6,028		10,427
Commercial	232		27,730		27,962		569		405		974
Consumer	—		343		343		—		261		261
Total PCI loans	$	182,916	$	168,463	$	351,379	$	221,060	$	161,736	$	382,796

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table reflects the PCI loans by portfolio segment as of the dates indicated:

	September 30, 2014			December 31, 2013
	(In thousands)
Real estate mortgage	$	356,151		$	412,791
Real estate construction	8,506			12,015
Commercial	28,532			3,021
Consumer	402			424
Total gross PCI loans	393,591			428,251
Less:
Discount	(42,212		)	(45,455		)
Allowance for loan losses	(18,815		)	(21,793		)
Total net PCI loans	$	332,564		$	361,003

XML

Loans and Credit Quality (Details 7) (NonCovered [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Financing Receivable, Modifications [Line Items]
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	$ 236		$ 0		$ 236		$ 1,100
Financing Receivable, Modifications, Number of Contracts	25		11		44		29
Financing Receivable, Modifications, Pre-Modification Recorded Investment	13,736		5,340		26,020		23,439
Financing Receivable, Modifications, Post-Modification Recorded Investment	13,736		5,340		26,020		23,439
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	3		2		5		4
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	1,227	[1],[2]	70	[1],[3]	1,358	[1],[4]	1,824	[1],[5]
Consumer Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	3		0		4		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	183		0		307		0
Financing Receivable, Modifications, Post-Modification Recorded Investment	183		0		307		0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts					1		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment					109	[1]	0	[1]
Collateralized Loan Obligations [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	9		8		15		7
Financing Receivable, Modifications, Pre-Modification Recorded Investment	1,507		4,824		4,853		4,553
Financing Receivable, Modifications, Post-Modification Recorded Investment	1,507		4,824		4,853		4,553
Financing Receivable, Modifications, Subsequent Default, Number of Contracts					1		1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment					22	[1]	427	[1]
Unsecured Commercial Member [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	3		2		5		5
Financing Receivable, Modifications, Pre-Modification Recorded Investment	173		499		211		502
Financing Receivable, Modifications, Post-Modification Recorded Investment	173		499		211		502
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	2		2		2		2
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	37	[1]	70	[1]	37	[1]	70	[1]
Asset Based [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	0		1		0		1
Financing Receivable, Modifications, Pre-Modification Recorded Investment	0		17		0		2,032
Financing Receivable, Modifications, Post-Modification Recorded Investment	0		17		0		2,032
SBA Financing Receivable [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	2		0		2		4
Financing Receivable, Modifications, Pre-Modification Recorded Investment	1,313		0		1,313		137
Financing Receivable, Modifications, Post-Modification Recorded Investment	1,313		0		1,313		137
Commercial Real Estate Construction Financing Receivable [Member] | Real Estate Construction [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts					2		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment					4,920		0
Financing Receivable, Modifications, Post-Modification Recorded Investment					4,920		0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	1		0		1		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	1,190	[1]	0	[1]	1,190	[1]	0	[1]
SBA Loans [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	1		0		1		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	64		0		64		0
Financing Receivable, Modifications, Post-Modification Recorded Investment	64		0		64		0
Real Estate Mortgage Other Receivable [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	7		0		15		12
Financing Receivable, Modifications, Pre-Modification Recorded Investment	10,496		0		14,352		16,215
Financing Receivable, Modifications, Post-Modification Recorded Investment	10,496		0		14,352		16,215
Financing Receivable, Modifications, Subsequent Default, Number of Contracts					0		1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment					$ 0	[1]	$ 1,327	[1]

[1] (1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.

[2] (2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million.

[3] (3)Represents the balance at September 30, 2013 and there were no charge-offs.

[4] (2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million

[5] (3) Represents the balance at September 30, 2013, and is net of charge-offs of $1.1 million

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Investments (Details 1) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 1,504,898	$ 1,500,516
Available-for-sale Securities, Gross Unrealized Gain	41,528	27,774
Available-for-sale Securities, Gross Unrealized Loss	(6,745)	(33,545)
Securities available‑for‑sale	1,539,681	1,494,745
Government agency and government-sponsored enterprise pass through securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	537,969	691,944
Available-for-sale Securities, Gross Unrealized Gain	17,917	18,012
Available-for-sale Securities, Gross Unrealized Loss	(799)	(2,768)
Securities available‑for‑sale		707,188
Government agency and government-sponsored enterprise collateralized mortgage obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	280,820	197,069
Available-for-sale Securities, Gross Unrealized Gain	1,456	388
Available-for-sale Securities, Gross Unrealized Loss	(2,485)	(4,584)
Securities available‑for‑sale		192,873
Covered private label collateralized mortgage obligation [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	27,830	30,502
Available-for-sale Securities, Gross Unrealized Gain	7,568	7,552
Available-for-sale Securities, Gross Unrealized Loss	(89)	150
Securities available‑for‑sale		37,904
Other Private Label Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	12,563	0
Available-for-sale Securities, Gross Unrealized Gain	35	0
Available-for-sale Securities, Gross Unrealized Loss	(5)	0
Securities available‑for‑sale		0
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	110,032	84,119
Available-for-sale Securities, Gross Unrealized Gain	2,139	71
Available-for-sale Securities, Gross Unrealized Loss	(28)	(1,483)
Securities available‑for‑sale		82,707
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	473,426	459,182
Available-for-sale Securities, Gross Unrealized Gain	12,212	1,749
Available-for-sale Securities, Gross Unrealized Loss	(3,211)	(24,273)
Securities available‑for‑sale		436,658
US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	36,214	10,046
Available-for-sale Securities, Gross Unrealized Gain	168	0
Available-for-sale Securities, Gross Unrealized Loss	0	(174)
Securities available‑for‑sale		9,872
Other securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	26,044	27,654
Available-for-sale Securities, Gross Unrealized Gain	33	2
Available-for-sale Securities, Gross Unrealized Loss	(128)	(113)
Securities available‑for‑sale		$ 27,543

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FDIC Loss Sharing Asset (Tables)

9 Months Ended

Sep. 30, 2014

FDIC Loss Sharing Asset [Abstract]

FDIC Indemnification Asset Roll Forward

The following table presents the changes in the FDIC loss sharing asset for the period indicated:

	FDIC Loss Sharing Asset
	(In thousands)
Balance, December 31, 2013	$	45,524
FDIC share of additional losses, net of recoveries	(4,654		)
Cash paid to the FDIC	3,363
Net amortization	(21,256		)
Balance, September 30, 2014	$	22,977

Schedule of Composition of Loss Sharing Assets and True Up Liability

The following table presents information about the composition of the FDIC loss sharing asset, the true‑up liability, and the non‑single family and the single family covered assets as of the date indicated:

	September 30, 2014
	Affinity Bank			Los Padres Bank		Western Commercial Bank		San Luis Trust Bank		Total
	(In thousands)
FDIC loss sharing asset	$	(819	)	$	13,283	$	1,432	$	9,081	$	22,977
True‑up liability	N/A			N/A		$	1,574	$	5,350	$	6,924
Non-single family covered assets	$	142,454		$	92,440	$	13,746	$	30,670	$	279,310
Single family covered assets	$	12,536		$	64,131	N/A		$	31,302	$	107,969
Loss sharing expiration dates:
Non‑single family	3rd Quarter 2014			3rd Quarter 2015		4th Quarter 2015		1st Quarter 2016
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021
Loss recovery expiration dates:
Non‑single family	3rd Quarter 2017			3rd Quarter 2018		4th Quarter 2018		1st Quarter 2019
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021

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Borrowings (Tables)

9 Months Ended

Sep. 30, 2014

Borrowings Subordinated Debentures And Brokered Deposits [Abstract]

Schedule of Debt

The following table summarizes our borrowings as of the dates indicated:

	September 30, 2014				December 31, 2013
	Amount		Rate		Amount		Rate
	(Dollars in thousands)
Non‑recourse debt	$	3,672	6.26	%	$	7,126	6.30	%
FHLB overnight advances	360,000		0.07	%	106,600		0.06	%
Total borrowings	$	363,672			$	113,726

Borrowings Subordinated Debentures And Brokered Deposits Disclosure

The following table summarizes the terms of each issuance of subordinated debentures outstanding as of the dates indicated:

	September 30, 2014					December 31, 2013
											Date	Maturity	Rate Index
Series	Amount			Rate (1)		Amount			Rate (2)		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Trust V	$	10,310		3.33	%	$	10,310		3.34	%	8/15/2003	9/17/2033	3 month LIBOR + 3.10
Trust VI	10,310			3.28	%	10,310			3.29	%	9/3/2003	9/15/2033	3 month LIBOR + 3.05
Trust CII	5,155			3.18	%	5,155			3.19	%	9/17/2003	9/17/2033	3 month LIBOR + 2.95
Trust VII	61,856			2.99	%	61,856			2.99	%	2/5/2004	4/23/2034	3 month LIBOR + 2.75
Trust CIII	20,619			1.92	%	20,619			1.93	%	8/15/2005	9/15/2035	3 month LIBOR + 1.69
Trust FCCI	16,495			1.83	%	16,495			1.84	%	1/25/2007	3/15/2037	3 month LIBOR + 1.60
Trust FCBI	10,310			1.78	%	10,310			1.79	%	9/30/2005	12/15/2035	3 month LIBOR + 1.55
Trust CS 2005-1 (3)	82,475			2.18	%	—			—		11/21/2005	12/15/2035	3 month LIBOR + 1.95
Trust CS 2005-2 (3)	128,866			2.19	%	—			—		12/14/2005	1/30/2036	3 month LIBOR + 1.95
Trust CS 2006-1 (3)	51,545			2.19	%	—			—		2/22/2006	4/30/2036	3 month LIBOR + 1.95
Trust CS 2006-2 (3)	51,550			2.19	%	—			—		9/27/2006	10/30/2036	3 month LIBOR + 1.95
Trust CS 2006-3 (3)	32,551			1.29	%	—			—		9/29/2006	10/30/2036	3 month EURIBOR + 2.05
Trust CS 2006-4 (3)	16,470			2.19	%	—			—		12/5/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2006-5 (3)	6,650			2.19	%	—			—		12/19/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2007-2 (3)	39,177			2.19	%	—			—		6/13/2007	7/30/2037	3 month LIBOR + 1.95
Gross subordinated debentures	544,339					135,055
Unamortized discount (4)	(110,794		)			(2,410		)
Net subordinated debentures	$	433,545				$	132,645

___________________

(1) As of September 30, 2014.

(2) As of January 28, 2014.

(3) Acquired in the CapitalSource Inc. merger.

(4) Amount represents the fair value adjustment on trust preferred securities assumed in the CapitalSource Inc. and FCAL acquisitions.

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Organization

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Note 1.  Organization    

PacWest Bancorp is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. Our principal business is to serve as the holding company for our Los Angeles‑based wholly owned banking subsidiary, Pacific Western Bank, which we refer to as “Pacific Western” or the “Bank.” When we say “we,” “our,” or the “Company,” we mean the Company on a consolidated basis with the Bank. When we refer to “PacWest” or to the holding company, we are referring to the parent company on a stand‑alone basis. As of September 30, 2014, we had total assets of $15.9 billion, total loans and leases of $11.5 billion, total deposits of $11.5 billion and total stockholders' equity of $3.5 billion.

Pacific Western is a full-service commercial bank offering a broad range of banking products and services including: accepting demand, money market, and time deposits; originating loans and leases, including an array of commercial real estate loans and commercial lending products. The Bank has a foundation of locally generated and relationship-based deposits, with 80 full-service branches located throughout the state of California. Our branch operations are located primarily in Southern California extending from San Diego County to California’s Central Coast, and we operate three banking offices in the San Francisco Bay area and two offices in the Central Valley. Our targeted collateral for our real estate loan offerings includes healthcare properties, office properties, industrial properties, multifamily properties, hospitality properties, and retail properties. Our commercial loan products include equipment loans and leases, asset-based loans, lender finance loans and loans secured by borrower future cash flows.

As a result of the CapitalSource Inc. merger, Pacific Western Bank established the CapitalSource Division, which we also refer to as the National Lending segment. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to small to middle market businesses. Pacific Western’s leasing operation, Pacific Western Equipment Finance, and its group specializing in asset-based lending, CapitalSource Business Finance Group (formerly BFI Business Finance and First Community Financial), also became part of the CapitalSource Division. The CapitalSource Division’s loan and lease origination efforts are conducted through offices located in Chevy Chase, Maryland; Los Angeles and San Jose, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; New York, New York; and Midvale, Utah. When we refer to "CapitalSource Inc." we are referring to the company acquired on April 7, 2014 and when we refer to the "CapitalSource Division" we are referring to a division of Pacific Western Bank that specializes in middle-market lending on a nationwide basis.

We generate our revenue primarily from interest received on loans and leases and, to a lesser extent, from interest received on investment securities, and fees received in connection with deposit services, extending credit and other services offered, including foreign exchange services. Our major operating expenses are the interest paid by the Bank on deposits and borrowings, compensation and general operating expenses.

We have completed 27 acquisitions from May 2000 through September 30, 2014, including the acquisition of CapitalSource Inc. on April 7, 2014. Since 2000, our acquisitions have been accounted for using the acquisition method of accounting and, accordingly, the operating results of the acquired entities have been included in the condensed consolidated financial statements from their respective acquisition dates. See Note 3, Acquisitions, for more information about the CapitalSource Inc. merger and the acquisition of First California Financial Group, Inc. ("FCAL") on May 31, 2013.

Significant Accounting Policies

Except as discussed below, our accounting policies are described in Note 1, Nature of Operations and Summary of Significant Accounting Policies, of our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission ("Form 10-K").

Basis of Presentation

Our interim consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all adjustments and eliminations, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K.

The accompanying financial statements reflect our consolidated accounts. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these condensed consolidated financial statements in conformity with GAAP. Material estimates subject to change in the near term include, among other items, the allowance for credit losses, the carrying value and useful lives of intangible assets, the carrying value of the FDIC loss sharing asset, the realization of deferred tax assets, and the fair value estimates of assets acquired and liabilities assumed in acquisitions. These estimates may be adjusted as more current information becomes available, and any adjustment may be significant.

As described in Note 3, Acquisitions, the acquired assets and liabilities of CapitalSource Inc. and FCAL were measured at their estimated fair values. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and assumed liabilities.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period’s presentation format. As of September 30, 2014, the "Leases" loan portfolio segment is included in the "Equipment finance" class category of the "Commercial" loan portfolio segment; loan-related legal expenses which were previously reported within the "Other professional services" category are reported within the "Other expense" category; and other foreclosed assets which were previously reported within the "Other assets" category are reported within the "Foreclosed assets, net" category.

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Commitments and Contingencies Commitments and Contingencies Disclosure (Tables)

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments Disclosure

The following table presents a summary of the financial instruments described above as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Loan commitments to extend credit	$	1,818,694	$	1,001,740
Standby letters of credit	82,207		39,200
Commitments to purchase equipment being acquired for lease to others	6,199		8,475
	$	1,907,100	$	1,049,415

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Related Party Transaction (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	9 Months Ended	1 Months Ended	9 Months Ended
	Apr. 07, 2014 Capitalsource, Inc. [Member]	Sep. 30, 2014 Capitalsource, Inc. [Member] Castle Creek Finance LLC [Member]	May 31, 2013 First California Financial Group, Inc. [Domain] Castle Creek Finance LLC [Member]	Sep. 30, 2013 First California Financial Group, Inc. [Domain] Castle Creek Finance LLC [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction		$ 9.0		$ 1.3
Business Acquisition, Effective Date of Acquisition	Apr. 07, 2014		May 31, 2013

XML

Acquisitions Acquisitions (Details Textuals) (USD $)						0 Months Ended	3 Months Ended		3 Months Ended
	Sep. 30, 2014	Apr. 07, 2014	Dec. 31, 2013	Sep. 30, 2013	May 31, 2013 bank_branch	Apr. 07, 2014 Capitalsource, Inc. [Member] bank_branch	Sep. 30, 2014 Capitalsource, Inc. [Member]	May 31, 2013 First California Financial Group, Inc. [Domain] bank_branch	Jun. 30, 2014 Shares Of Common Stock [Member] Capitalsource, Inc. [Member]
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition						Apr. 07, 2014
Common Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01			$ 45.83
Business Acquisition, Share Price						$ 2.47
Business Acquisition Shares Receivable By Stockholders Of Acquiree Ratio						0.2837
Stock Issued During Period, Shares, New Issues									56,601,997
Common Stock, Value, Outstanding						$ 3,100,000,000
Business Integration Completion Date						April 12, 2014
Number of Branches						21		15
Number Of Operating Branches Closed As Part Of Integration And Consolidation Plan						12
Number Of Operating Branches Which Overlapped With Existing Branches						1
Goodwill	1,722,129,000	1,520,031,000	208,743,000	215,862,000	129,070,000
Number Of Locations Added To Branch Network As Result Of Integration And Consolidation Plan					7
Pro forma revenues (net interest income plus noninterest income)							259,000,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual							$ 94,400,000

XML

Loans and Credit Quality (Details 4) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Delinquent loans in loan portfolio
30-89 Days Past Due	$ 7,400	$ 4,200
Loans held for investment, net	11,574,885	4,312,352	4,383,393
Consumer Portfolio Segment [Member]
Delinquent loans in loan portfolio
Loans held for investment, net	108,408
NonCovered [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	13,269	23,897
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	20,014	5,233
Financing Receivable, Recorded Investment, Past Due	33,283	29,130
Current	11,190,223	3,900,426
Loans held for investment, net	11,223,506	3,929,556	3,950,636
NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	10,454	15,590
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	13,644	2,406
Financing Receivable, Recorded Investment, Past Due	24,098	17,996
Current	5,374,146	2,404,111
Loans held for investment, net	5,398,244	2,422,107	2,548,932
NonCovered [Member] | Real Estate Construction [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	1,928	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	2,029	2,013
Financing Receivable, Recorded Investment, Past Due	3,957	2,013
Current	279,110	205,766
Loans held for investment, net	283,067	207,779	188,872
NonCovered [Member] | Commercial Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	719	4,988
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	1,097	814
Financing Receivable, Recorded Investment, Past Due	1,816	5,802
Current	5,431,971	1,238,983
Loans held for investment, net	5,433,787	1,244,785	1,178,923
NonCovered [Member] | Consumer Portfolio Segment [Member]
Delinquent loans in loan portfolio
Loans held for investment, net		54,885	33,909
Consumer Financing Receivable [Member] | NonCovered [Member] | Consumer Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	168	3,319
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	3,244	0
Financing Receivable, Recorded Investment, Past Due	3,412	3,319
Current	104,996	51,566
Loans held for investment, net		54,885
Collateralized Loan Obligations [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	56	473
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	940	259
Financing Receivable, Recorded Investment, Past Due	996	732
Current	427,581	585,749
Loans held for investment, net	428,577	586,481
Unsecured Commercial Member [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	38	83
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	25	68
Financing Receivable, Recorded Investment, Past Due	63	151
Current	126,976	153,601
Loans held for investment, net	127,039	153,752
Asset Based [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	271	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Past Due	271	0
Current	1,594,161	202,428
Loans held for investment, net	1,594,432	202,428
Cash Flow [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	235
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0
Financing Receivable, Recorded Investment, Past Due	235
Current	2,313,963
Loans held for investment, net	2,314,198	0
Equipment Finance Commercial Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	119	2,662
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	132	244
Financing Receivable, Recorded Investment, Past Due	251	2,906
Current	928,209	270,577
Loans held for investment, net	928,460	273,483
SBA Financing Receivable [Member] | NonCovered [Member] | Commercial Portfolio Segment [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	0	1,770
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	243
Financing Receivable, Recorded Investment, Past Due	0	2,013
Current	41,081	26,628
Loans held for investment, net	41,081	28,641
Residential Real Estate Construction Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	0	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	542	0
Financing Receivable, Recorded Investment, Past Due	542	0
Current	72,344	58,881
Loans held for investment, net	72,886	58,881
Commercial Real Estate Construction Financing Receivable [Member] | NonCovered [Member] | Real Estate Construction [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	1,928	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	1,487	2,013
Financing Receivable, Recorded Investment, Past Due	3,415	2,013
Current	206,766	146,885
Loans held for investment, net	210,181	148,898
Hospitality [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	0	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Past Due	0	0
Current	519,350	180,553
Loans held for investment, net	519,350	180,553
SBA Loans [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	2,304	2,564
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	516	0
Financing Receivable, Recorded Investment, Past Due	2,820	2,564
Current	348,948	42,602
Loans held for investment, net	351,768	45,166
Real Estate Other Class [Member] | NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Delinquent loans in loan portfolio
30-89 Days Past Due	8,150	13,026
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	13,128	2,406
Financing Receivable, Recorded Investment, Past Due	21,278	15,432
Current	4,505,848	2,180,956
Loans held for investment, net	$ 4,527,126	$ 2,196,388

XML

Fair Value Measurements Fair Value Measurements (Details 2) (Level 3, Private Label CMOs, Fair Value, Measurements, Recurring [Member])	9 Months Ended
	Sep. 30, 2014
Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Prepayment Rate	0.00%
Fair Value Inputs, Probability of Default	0.00%
Fair Value Inputs, Loss Severity	0.00%
Fair Value Inputs, Discount Rate	0.00%
Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Prepayment Rate	34.19%
Fair Value Inputs, Probability of Default	9.69%
Fair Value Inputs, Loss Severity	65.15%
Fair Value Inputs, Discount Rate	7.12%
Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Prepayment Rate	10.24%
Fair Value Inputs, Probability of Default	3.15%
Fair Value Inputs, Loss Severity	40.87%
Fair Value Inputs, Discount Rate	4.94%

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
ASSETS
Cash and due from banks	$ 145,463		$ 96,424
Interest-earning deposits in financial institutions	115,399		50,998
Total cash and cash equivalents	260,862		147,422
Securities available-for-sale, at fair value	1,539,681		1,494,745
Federal Home Loan Bank stock, at cost	45,602		27,939
Total investment securities	1,585,283		1,522,684
Gross loans and leases	11,591,395		4,313,335
Deferred fees and costs	16,510		983
Allowance for loan and lease losses	(81,899)		(82,034)
Total loans and leases, net	11,492,986		4,230,318
Equipment leased to others under operating leases	125,119		0
Premises and equipment, net	38,368		32,435
Foreclosed assets, net	40,524		55,891
Goodwill	1,722,129		208,743
Core deposit and customer relationship intangibles, net	18,823		17,248
FDIC loss sharing asset	22,977		45,524
Deferred tax asset, net	331,176		79,636
Other assets	300,098		193,462
Total assets	15,938,345		6,533,363
LIABILITIES:
Non interest-bearing deposits	2,842,488		2,318,446
Interest-bearing deposits	8,680,949		2,962,541
Total deposits	11,523,437	[1]	5,280,987
Borrowings	363,672		113,726
Subordinated debentures	433,545		132,645
Accrued interest payable and other liabilities	139,445		196,912
Total liabilities	12,460,099		5,724,270
Commitments and contingencies	0		0
STOCKHOLDERS' EQUITY:
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued and outstanding)	0		0
Common stock ($0.01 par value, 200,000,000 and 75,000,000 shares authorized at September 30, 2014 and December 31, 2013, respectively; 104,225,010 and 46,526,124 shares issued, respectively, includes 1,115,550 and 1,216,524 shares of unvested restricted stock, respectively)	1,042		465
Additional paid-in capital	3,855,546		1,286,737
Accumulated deficit	(356,516)		(454,422)
Treasury stock, at cost (1,197,180 and 703,290 shares at September 30, 2014 and December 31, 2013, respectively)	42,647		20,340
Accumulated other comprehensive income, net	20,821		(3,347)
Total stockholders' equity	3,478,246		809,093
Total liabilities and stockholders' equity	$ 15,938,345		$ 6,533,363

[1] (1)The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

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Investments (Details 2) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 223,023	$ 773,925
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	(1,346)	(33,356)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	227,887	5,032
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	(5,399)	(189)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	450,910	778,957
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	(6,745)	(33,545)
Government agency and government-sponsored enterprise pass through securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	38,316	148,662
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	(191)	(2,767)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	27,894	32
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	(608)	(1)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	66,210	148,694
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	(799)	(2,768)
Government agency and government-sponsored enterprise collateralized mortgage obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	159,329	179,938
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	(967)	(4,486)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	42,340	4,383
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	(1,518)	(98)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	201,669	184,321
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	(2,485)	(4,584)
Covered private label collateralized mortgage obligation [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	0	1,640
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	(60)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	1,050	617
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	(89)	(90)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	1,050	2,257
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	(89)	(150)
Other Private Label Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	893
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	(5)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	893
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	(5)
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	18,058	337,208
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	(75)	(24,273)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	133,602
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	(3,136)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	151,660	337,208
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	(3,211)	(24,273)
Corporate Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	0	72,636
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	(1,483)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	12,971	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	(28)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	12,971	72,636
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	(28)	(1,483)
US Government-sponsored Enterprises Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	0	9,872
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	(174)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	0	9,872
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	0	(174)
Other securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	6,427	23,969
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	(108)	(113)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	10,030	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	(20)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	16,457	23,969
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ (128)	$ (113)

XML

Consolidated Statement of Shareholders' Equity (USD $)	Total USD ($)	Common Stock [Member] USD ($)	Shares Of Common Stock [Member] USD ($)	Additional Paid-in Capital [Member] USD ($)	Accumulated Deficit [Member] USD ($)	Treasury Stock [Member] USD ($)	Accumulated Other Comprehensive Income [Member] USD ($)	CapitalSource Inc. [Member] [Member] USD ($)	CapitalSource Inc. [Member] [Member] Common Stock [Member] USD ($)	CapitalSource Inc. [Member] [Member] Shares Of Common Stock [Member]	CapitalSource Inc. [Member] [Member] Additional Paid-in Capital [Member] USD ($)	CapitalSource Inc. [Member] [Member] Accumulated Deficit [Member] USD ($)	CapitalSource Inc. [Member] [Member] Treasury Stock [Member] USD ($)	CapitalSource Inc. [Member] [Member] Accumulated Other Comprehensive Income [Member] USD ($)
Shareholders' Equity - Beginning Balance at Dec. 31, 2013	$ 809,093,000	$ 465,000		$ 1,286,737,000	$ (454,422,000)	$ (20,340,000)	$ (3,347,000)
Shares, Outstanding	103,027,830,000
Net income	97,906,000				97,906,000
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	24,168,000	0	0	0	0	0	24,168,000
Common Stock, Shares, Issued	104,225,010									56,601,997,000
Common stock ($0.01 par value, 200,000,000 and 75,000,000 shares authorized at September 30, 2014 and December 31, 2013, respectively; 104,225,010 and 46,526,124 shares issued, respectively, includes 1,115,550 and 1,216,524 shares of unvested restricted stock, respectively)	1,042,000							2,594,070,000	566,000		2,593,504,000	0	0	0
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited			1,095,538,000
Restricted Stock Award, Forfeitures	33,641,000	11,000		33,630,000	0	0	0
Treasury Stock, Retired, Cost Method, Amount	(22,307,000)	0	(493,890,000)		0	(22,307,000)	0
Stock Issued During Period, Shares, Dividend Reinvestment Plan		1,351,000
Stock Issued During Period, Value, Dividend Reinvestment Plan	57,000	0		57,000	0	0	0
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	4,402,000	0	0	4,402,000		0	0
Dividends paid	(62,784,000)	0	0	(62,784,000)	0	0	0
Shareholders' Equity - Ending balance at Sep. 30, 2014	$ 3,478,246,000	$ 1,042,000		$ 3,855,546,000	$ (356,516,000)	$ (42,647,000)	$ 20,821,000

XML

Loans and Credit Quality (Details 10) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	$ 351,379	$ 382,796
Nonclassified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	182,916	221,060
Classified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	168,463	161,736
Mortgage Loans on Real Estate [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	314,919	371,134
Loans And Leases PCI Net Of Discounts And Earned Income	314,871	371,134
Mortgage Loans on Real Estate [Member] | Nonclassified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	180,763	216,092
Mortgage Loans on Real Estate [Member] | Classified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	134,108	155,042
Real Estate Construction [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	8,208	10,427
Loans And Leases PCI Net Of Discounts And Earned Income	8,203	10,427
Real Estate Construction [Member] | Nonclassified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	1,921	4,399
Real Estate Construction [Member] | Classified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	6,282	6,028
Commercial Portfolio Segment [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	27,961	974
Loans And Leases PCI Net Of Discounts And Earned Income	27,962	974
Commercial Portfolio Segment [Member] | Nonclassified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	232	569
Commercial Portfolio Segment [Member] | Classified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	27,730	405
Consumer Portfolio Segment [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	343	261
Loans And Leases PCI Net Of Discounts And Earned Income	343	261
Consumer Portfolio Segment [Member] | Nonclassified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	0	0
Consumer Portfolio Segment [Member] | Classified [Member]
Financing Receivable Recorded Investment By Credit Risk [Line Items]
Loans And Leases Net Of Discounts Covered	$ 343	$ 261

XML

Business Segment (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure

Note 14. Business Segments

The Company’s reportable segments consist of “Community Banking,” “National Lending,” and “Other.”

As a result of the CapitalSource Inc. merger, Pacific Western Bank established the CapitalSource Division, which we also refer to as the National Lending segment. The CapitalSource Division, or National Lending segment, includes the lending operations gained through the CapitalSource Inc. merger, Pacific Western Equipment Finance, and the CapitalSource Business Finance Group (formerly BFI Business Finance and First Community Financial). We reorganized our asset-based lending and leasing operations when we established the CapitalSource Division combining BFI Business Finance and First Community Financial into the Capital Source Business Finance Group, selling Celtic Capital Corporation in July 2014, and having Pacific Western Equipment Finance and the Capital Source Business Finance Group become part of the CapitalSource Division. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses, including senior secured real estate loans, equipment loans and leases, asset-based loans, lender finance loans and cash flow loans secured by the enterprise value of the borrowing entity. The CapitalSource Division’s loan and lease origination efforts are conducted through offices located in Chevy Chase, Maryland; Los Angeles and San Jose, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; New York, New York; and Midvale, Utah.

The Community Banking and National Lending segments include all of the operations of Pacific Western Bank. The Community Banking segment includes the operations of Pacific Western Bank, excluding the CapitalSource Division, and includes lending and deposit gathering activities conducted primarily through its California-based branch offices and the Bank’s treasury management function and corporate overhead. The Other segment consists of holding company operations which result in expenses principally for compensation, facilities, professional services, interest on subordinated debentures, and the non-bank subsidiary operations including interest income from a loan portfolio and related loan servicing expense.

The accounting policies of the reported segments are the same as those of the Company described in Note 1, “Nature of Operations and Summary of Significant Accounting Policies,” of our Form 10‑K. Transactions between segments consist primarily of borrowed funds and expense allocations for interest, deposit gathering, corporate overhead and credit loss provisions. Intersegment interest expense is allocated from the Community Banking segment to the National Lending segment based upon National Lending’s average interest-earning assets and operating leases, net of a capital allocation, and the Bank’s total cost of deposits. The Community Banking segment further allocates to the National Lending segment noninterest expense for deposit gathering and maintenance costs and the Bank’s corporate overhead. The provision for credit losses is allocated based on actual charge‑offs for the period as well as net portfolio growth and credit quality trends. All costs associated with investing the Bank’s excess liquidity and acquisition, integration, and reorganization costs are housed in the Community Banking segment. The lending and loan servicing activities are housed in our respective segments. Noninterest income and noninterest expense directly attributable to a segment are assigned to it.

The following tables present information regarding our business segments as of and for the periods indicated:

	September 30, 2014
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,482,125		$	8,064,868		$	27,892		$	11,574,885
Allowance for loan and lease losses	(56,712		)	(25,187		)	—			(81,899		)
Total loans and leases, net	$	3,425,413		$	8,039,681		$	27,892		$	11,492,986
Goodwill	$	327,728		$	1,394,401		$	—		$	1,722,129
Core deposit and customer relationship intangibles, net	17,814			1,009			—			18,823
Total assets	6,492,869			9,182,617			262,859			15,938,345
Total deposits(1)	11,826,681			—			(303,244		)	11,523,437

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	September 30, 2013
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,912,885		$	470,508		$	—		$	4,383,393
Allowance for loan and lease losses	(76,496		)	(7,290		)	—			(83,786		)
Total loans and leases, net	$	3,836,389		$	463,218		$	—		$	4,299,607
Goodwill	$	190,184		$	25,678		$	—		$	215,862
Core deposit and customer relationship intangibles, net	16,604			2,074			—			18,678
Total assets	6,100,587			507,339			8,929			6,616,855
Total deposits(1)	5,467,568			—			(34,424		)	5,433,144

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	Three Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	67,132		$	134,624		$	600		$	202,356
Interest expense	(8,851		)	(45		)	(4,614		)	(13,510		)
Intersegment interest income (expense)	5,250			(5,250		)	—			—
Net interest income (expense)	63,531			129,329			(4,014		)	188,846
Negative provision (provision) for credit losses	6,314			(11,364		)	—			(5,050		)
Gain on securities	—			—			—			—
FDIC loss sharing expense	(7,415		)	—			—			(7,415		)
Other noninterest income	7,566			9,953			6,210			23,729
Total noninterest income	151			9,953			6,210			16,314
Foreclosed assets (expense) income, net	(4,627		)	(322		)	122			(4,827		)
Intangible asset amortization	(1,517		)	(91		)	—			(1,608		)
Acquisition, integration and reorganization costs	(3,953		)	(1,240		)	—			(5,193		)
Other noninterest expense	(53,784		)	(24,835		)	(5,382		)	(84,001		)
Total noninterest expense	(63,881		)	(26,488		)	(5,260		)	(95,629		)
Intersegment noninterest income (expense)	26,411			(26,411		)	—			—
Total noninterest expense - adjusted	(37,470		)	(52,899		)	(5,260		)	(95,629		)
Earnings (loss) from continuing operations before taxes	32,526			75,019			(3,064		)	104,481
Income tax (expense) benefit	(13,870		)	(30,113		)	1,778			(42,205		)
Net earnings (loss) from continuing operations	18,656			44,906			(1,286		)	62,276
Loss from discontinued operations before taxes	(8		)	—			—			(8		)
Income tax benefit	3			—			—			3
Net loss from discontinued operations	(5		)	—			—			(5		)
Net earnings (loss)	$	18,651		$	44,906		$	(1,286	)	$	62,271

	Three Months Ended June 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	69,977		$	132,742		$	1,644		$	204,363
Interest expense	(7,450		)	(62		)	(4,318		)	(11,830		)
Intersegment interest income (expense)	4,071			(4,071		)	—			—
Net interest income	66,598			128,609			(2,674		)	192,533
Negative provision (provision) for credit losses	4,418			(9,448		)	—			(5,030		)
Gain on securities	89			—			—			89
FDIC loss sharing expense	(8,525		)	—			—			(8,525		)
Other noninterest income	3,681			12,487			747			16,915
Total noninterest income	(4,755		)	12,487			747			8,479
Foreclosed assets (expense) income, net	(633		)	38			98			(497		)
Intangible asset amortization	(1,530		)	(147		)	—			(1,677		)
Acquisition, integration and reorganization costs	(77,713		)	(7,474		)	(1,055		)	(86,242		)
Other noninterest expense	(51,507		)	(24,484		)	(5,499		)	(81,490		)
Total noninterest expense	(131,383		)	(32,067		)	(6,456		)	(169,906		)
Intersegment noninterest income (expense)	23,533			(23,533		)	—			—
Total noninterest expense - adjusted	(107,850		)	(55,600		)	(6,456		)	(169,906		)
(Loss) earnings from continuing operations before taxes	(41,589		)	76,048			(8,383		)	26,076
Income tax benefit (expense)	12,081			(30,259		)	3,332			(14,846		)
Net (loss) earnings from continuing operations	(29,508		)	45,789			(5,051		)	11,230
Loss from discontinued operations before taxes	(1,151		)	—			—			(1,151		)
Income tax benefit	476			—			—			476
Net loss from discontinued operations	(675		)	—			—			(675		)
Net (loss) earnings	$	(30,183	)	$	45,789		$	(5,051	)	$	10,555

	Three Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	72,873		$	12,285		$	—		$	85,158
Interest expense	(1,692		)	(108		)	(1,069		)	(2,869		)
Intersegment interest income (expense)	353			(353		)	—			—
Net interest income	71,534			11,824			(1,069		)	82,289
Negative provision (provision) for credit losses	5,782			(1,615		)	—			4,167
FDIC loss sharing expense	(7,032		)	—			—			(7,032		)
Other noninterest income	5,466			1,443			5,250			12,159
Total noninterest income	(1,566		)	1,443			5,250			5,127
Foreclosed assets income, net	420			—			—			420
Intangible asset amortization	(1,354		)	(158		)	—			(1,512		)
Acquisition, integration and reorganization costs	(5,190		)	—			(260		)	(5,450		)
Other noninterest expense	(42,435		)	(5,822		)	(1,401		)	(49,658		)
Total noninterest expense	(48,559		)	(5,980		)	(1,661		)	(56,200		)
Earnings (loss) from continuing operations before taxes	27,191			5,672			2,520			35,383
Income tax (expense) benefit	(9,996		)	(2,378		)	1,131			(11,243		)
Net earnings (loss) from continuing operations	17,195			3,294			3,651			24,140
Earnings from discontinued operations before taxes	39			—			—			39
Income tax expense	(16		)	—			—			(16		)
Net earnings from discontinued operations	23			—			—			23
Net earnings	$	17,218		$	3,294		$	3,651		$	24,163

	Nine Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	214,704		$	278,131		$	2,244		$	495,079
Interest expense	(17,528		)	(184		)	(9,973		)	(27,685		)
Intersegment interest income (expense)	9,543			(9,543		)	—			—
Net interest income (expense)	206,719			268,404			(7,729		)	467,394
Negative provision (provision) for credit losses	11,558			(20,994		)	—			(9,436		)
Gain on securities	4,841			—			—			4,841
FDIC loss sharing expense	(27,370		)	—			—			(27,370		)
Other noninterest income	18,144			26,885			6,984			52,013
Total noninterest income	(4,385		)	26,885			6,984			29,484
Foreclosed assets (expense) income, net	(3,399		)	(284		)	220			(3,463		)
Intangible asset amortization	(4,238		)	(411		)	—			(4,649		)
Acquisition, integration and reorganization costs	(83,866		)	(8,714		)	(1,055		)	(93,635		)
Other noninterest expense	(146,281		)	(55,892		)	(12,484		)	(214,657		)
Total noninterest expense	(237,784		)	(65,301		)	(13,319		)	(316,404		)
Intersegment noninterest income (expense)	49,944			(49,944		)	—			—
Total noninterest expense - adjusted	(187,840		)	(115,245		)	(13,319		)	(316,404		)
Earnings from continuing operations before taxes	26,052			159,050			(14,064		)	171,038
Income tax (expense) benefit	(14,123		)	(63,703		)	6,199			(71,627		)
Net earnings (loss) from continuing operations	11,929			95,347			(7,865		)	99,411
Loss from discontinued operations before taxes	(2,572		)	—			—			(2,572		)
Income tax benefit	1,067			—			—			1,067
Net loss from discontinued operations	(1,505		)	—			—			(1,505		)
Net earnings (loss)	$	10,424		$	95,347		$	(7,865	)	$	97,906

	Nine Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	189,101		$	36,957		$	—		$	226,058
Interest expense	(6,422		)	(447		)	(2,734		)	(9,603		)
Intersegment interest income (expense)	1,284			(1,284		)	—			—
Net interest income	183,963			35,226			(2,734		)	216,455
Negative provision (provision) for credit losses	6,053			(3,181		)	—			2,872
Gain on securities	5,631			—			—			5,631
FDIC loss sharing expense	(15,579		)	—			—			(15,579		)
Other noninterest income	10,240			2,579			5,299			18,118
Total noninterest income	292			2,579			5,299			8,170
Foreclosed assets income, net	934			—			—			934
Intangible asset amortization	(3,474		)	(498		)	—			(3,972		)
Acquisition, integration and reorganization costs	(23,879		)	—			(260		)	(24,139		)
Other noninterest expense	(115,352		)	(17,855		)	(4,215		)	(137,422		)
Total noninterest expense	(141,771		)	(18,353		)	(4,475		)	(164,599		)
Earnings (loss) from continuing operations before taxes	48,537			16,271			(1,910		)	62,898
Income tax (expense) benefit	(17,038		)	(6,814		)	2,984			(20,868		)
Net earnings from continuing operations	31,499			9,457			1,074			42,030
Loss from discontinued operations before taxes	(42		)	—			—			(42		)
Income tax benefit	18			—			—			18
Net loss from discontinued operations	(24		)	—			—			(24		)
Net earnings	$	31,475		$	9,457		$	1,074		$	42,006

Continuing operations of operating segments

The following tables present information regarding our business segments as of and for the periods indicated:

	September 30, 2014
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,482,125		$	8,064,868		$	27,892		$	11,574,885
Allowance for loan and lease losses	(56,712		)	(25,187		)	—			(81,899		)
Total loans and leases, net	$	3,425,413		$	8,039,681		$	27,892		$	11,492,986
Goodwill	$	327,728		$	1,394,401		$	—		$	1,722,129
Core deposit and customer relationship intangibles, net	17,814			1,009			—			18,823
Total assets	6,492,869			9,182,617			262,859			15,938,345
Total deposits(1)	11,826,681			—			(303,244		)	11,523,437

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	September 30, 2013
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,912,885		$	470,508		$	—		$	4,383,393
Allowance for loan and lease losses	(76,496		)	(7,290		)	—			(83,786		)
Total loans and leases, net	$	3,836,389		$	463,218		$	—		$	4,299,607
Goodwill	$	190,184		$	25,678		$	—		$	215,862
Core deposit and customer relationship intangibles, net	16,604			2,074			—			18,678
Total assets	6,100,587			507,339			8,929			6,616,855
Total deposits(1)	5,467,568			—			(34,424		)	5,433,144

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	Three Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	67,132		$	134,624		$	600		$	202,356
Interest expense	(8,851		)	(45		)	(4,614		)	(13,510		)
Intersegment interest income (expense)	5,250			(5,250		)	—			—
Net interest income (expense)	63,531			129,329			(4,014		)	188,846
Negative provision (provision) for credit losses	6,314			(11,364		)	—			(5,050		)
Gain on securities	—			—			—			—
FDIC loss sharing expense	(7,415		)	—			—			(7,415		)
Other noninterest income	7,566			9,953			6,210			23,729
Total noninterest income	151			9,953			6,210			16,314
Foreclosed assets (expense) income, net	(4,627		)	(322		)	122			(4,827		)
Intangible asset amortization	(1,517		)	(91		)	—			(1,608		)
Acquisition, integration and reorganization costs	(3,953		)	(1,240		)	—			(5,193		)
Other noninterest expense	(53,784		)	(24,835		)	(5,382		)	(84,001		)
Total noninterest expense	(63,881		)	(26,488		)	(5,260		)	(95,629		)
Intersegment noninterest income (expense)	26,411			(26,411		)	—			—
Total noninterest expense - adjusted	(37,470		)	(52,899		)	(5,260		)	(95,629		)
Earnings (loss) from continuing operations before taxes	32,526			75,019			(3,064		)	104,481
Income tax (expense) benefit	(13,870		)	(30,113		)	1,778			(42,205		)
Net earnings (loss) from continuing operations	18,656			44,906			(1,286		)	62,276
Loss from discontinued operations before taxes	(8		)	—			—			(8		)
Income tax benefit	3			—			—			3
Net loss from discontinued operations	(5		)	—			—			(5		)
Net earnings (loss)	$	18,651		$	44,906		$	(1,286	)	$	62,271

	Three Months Ended June 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	69,977		$	132,742		$	1,644		$	204,363
Interest expense	(7,450		)	(62		)	(4,318		)	(11,830		)
Intersegment interest income (expense)	4,071			(4,071		)	—			—
Net interest income	66,598			128,609			(2,674		)	192,533
Negative provision (provision) for credit losses	4,418			(9,448		)	—			(5,030		)
Gain on securities	89			—			—			89
FDIC loss sharing expense	(8,525		)	—			—			(8,525		)
Other noninterest income	3,681			12,487			747			16,915
Total noninterest income	(4,755		)	12,487			747			8,479
Foreclosed assets (expense) income, net	(633		)	38			98			(497		)
Intangible asset amortization	(1,530		)	(147		)	—			(1,677		)
Acquisition, integration and reorganization costs	(77,713		)	(7,474		)	(1,055		)	(86,242		)
Other noninterest expense	(51,507		)	(24,484		)	(5,499		)	(81,490		)
Total noninterest expense	(131,383		)	(32,067		)	(6,456		)	(169,906		)
Intersegment noninterest income (expense)	23,533			(23,533		)	—			—
Total noninterest expense - adjusted	(107,850		)	(55,600		)	(6,456		)	(169,906		)
(Loss) earnings from continuing operations before taxes	(41,589		)	76,048			(8,383		)	26,076
Income tax benefit (expense)	12,081			(30,259		)	3,332			(14,846		)
Net (loss) earnings from continuing operations	(29,508		)	45,789			(5,051		)	11,230
Loss from discontinued operations before taxes	(1,151		)	—			—			(1,151		)
Income tax benefit	476			—			—			476
Net loss from discontinued operations	(675		)	—			—			(675		)
Net (loss) earnings	$	(30,183	)	$	45,789		$	(5,051	)	$	10,555

	Three Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	72,873		$	12,285		$	—		$	85,158
Interest expense	(1,692		)	(108		)	(1,069		)	(2,869		)
Intersegment interest income (expense)	353			(353		)	—			—
Net interest income	71,534			11,824			(1,069		)	82,289
Negative provision (provision) for credit losses	5,782			(1,615		)	—			4,167
FDIC loss sharing expense	(7,032		)	—			—			(7,032		)
Other noninterest income	5,466			1,443			5,250			12,159
Total noninterest income	(1,566		)	1,443			5,250			5,127
Foreclosed assets income, net	420			—			—			420
Intangible asset amortization	(1,354		)	(158		)	—			(1,512		)
Acquisition, integration and reorganization costs	(5,190		)	—			(260		)	(5,450		)
Other noninterest expense	(42,435		)	(5,822		)	(1,401		)	(49,658		)
Total noninterest expense	(48,559		)	(5,980		)	(1,661		)	(56,200		)
Earnings (loss) from continuing operations before taxes	27,191			5,672			2,520			35,383
Income tax (expense) benefit	(9,996		)	(2,378		)	1,131			(11,243		)
Net earnings (loss) from continuing operations	17,195			3,294			3,651			24,140
Earnings from discontinued operations before taxes	39			—			—			39
Income tax expense	(16		)	—			—			(16		)
Net earnings from discontinued operations	23			—			—			23
Net earnings	$	17,218		$	3,294		$	3,651		$	24,163

	Nine Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	214,704		$	278,131		$	2,244		$	495,079
Interest expense	(17,528		)	(184		)	(9,973		)	(27,685		)
Intersegment interest income (expense)	9,543			(9,543		)	—			—
Net interest income (expense)	206,719			268,404			(7,729		)	467,394
Negative provision (provision) for credit losses	11,558			(20,994		)	—			(9,436		)
Gain on securities	4,841			—			—			4,841
FDIC loss sharing expense	(27,370		)	—			—			(27,370		)
Other noninterest income	18,144			26,885			6,984			52,013
Total noninterest income	(4,385		)	26,885			6,984			29,484
Foreclosed assets (expense) income, net	(3,399		)	(284		)	220			(3,463		)
Intangible asset amortization	(4,238		)	(411		)	—			(4,649		)
Acquisition, integration and reorganization costs	(83,866		)	(8,714		)	(1,055		)	(93,635		)
Other noninterest expense	(146,281		)	(55,892		)	(12,484		)	(214,657		)
Total noninterest expense	(237,784		)	(65,301		)	(13,319		)	(316,404		)
Intersegment noninterest income (expense)	49,944			(49,944		)	—			—
Total noninterest expense - adjusted	(187,840		)	(115,245		)	(13,319		)	(316,404		)
Earnings from continuing operations before taxes	26,052			159,050			(14,064		)	171,038
Income tax (expense) benefit	(14,123		)	(63,703		)	6,199			(71,627		)
Net earnings (loss) from continuing operations	11,929			95,347			(7,865		)	99,411
Loss from discontinued operations before taxes	(2,572		)	—			—			(2,572		)
Income tax benefit	1,067			—			—			1,067
Net loss from discontinued operations	(1,505		)	—			—			(1,505		)
Net earnings (loss)	$	10,424		$	95,347		$	(7,865	)	$	97,906

	Nine Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	189,101		$	36,957		$	—		$	226,058
Interest expense	(6,422		)	(447		)	(2,734		)	(9,603		)
Intersegment interest income (expense)	1,284			(1,284		)	—			—
Net interest income	183,963			35,226			(2,734		)	216,455
Negative provision (provision) for credit losses	6,053			(3,181		)	—			2,872
Gain on securities	5,631			—			—			5,631
FDIC loss sharing expense	(15,579		)	—			—			(15,579		)
Other noninterest income	10,240			2,579			5,299			18,118
Total noninterest income	292			2,579			5,299			8,170
Foreclosed assets income, net	934			—			—			934
Intangible asset amortization	(3,474		)	(498		)	—			(3,972		)
Acquisition, integration and reorganization costs	(23,879		)	—			(260		)	(24,139		)
Other noninterest expense	(115,352		)	(17,855		)	(4,215		)	(137,422		)
Total noninterest expense	(141,771		)	(18,353		)	(4,475		)	(164,599		)
Earnings (loss) from continuing operations before taxes	48,537			16,271			(1,910		)	62,898
Income tax (expense) benefit	(17,038		)	(6,814		)	2,984			(20,868		)
Net earnings from continuing operations	31,499			9,457			1,074			42,030
Loss from discontinued operations before taxes	(42		)	—			—			(42		)
Income tax benefit	18			—			—			18
Net loss from discontinued operations	(24		)	—			—			(24		)
Net earnings	$	31,475		$	9,457		$	1,074		$	42,006

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FDIC Loss Sharing Asset FDIC Loss Textual (Details)	9 Months Ended
	Sep. 30, 2014
FDIC Loss Sharing Assets [Abstract]
FDIC Indemnification Percent	80.00%

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Related Party Transaction (Notes)

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure

Note 15. Related Party Transactions

In connection with the CapitalSource Inc. merger, the Bank paid an advisory fee of $9 million to Castle Creek Financial LLC (“Castle Creek Financial”) during 2014. In connection with the FCAL acquisition, the Bank paid an advisory fee of $1.3 million to Castle Creek Financial during 2013. Castle Creek Financial is an affiliate of Castle Creek Capital LLC, which the Company's Chairman of the Board, Mr. Eggemeyer, is co-founder and chief executive.

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Organization (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended					0 Months Ended	1 Months Ended
	Sep. 30, 2014 bank_branch		Dec. 31, 2013	Sep. 30, 2013		Apr. 07, 2014 Capitalsource, Inc. [Member]	May 31, 2013 Castle Creek Finance LLC [Member] First California Financial Group, Inc. [Domain]
Business Acquisition [Line Items]
Total assets	$ 15,938,345		$ 6,533,363	$ 6,616,855
Total loans and leases, net	11,492,986		4,230,318	4,299,607
Total deposits	11,523,437	[1]	5,280,987	5,433,144	[2]
Total stockholders' equity	$ 3,478,246		$ 809,093
Number Of Branches	80
Number of Businesses Acquired	27
Business Acquisition, Effective Date of Acquisition						Apr. 07, 2014	May 31, 2013

[1] (1)The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

[2] The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

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Subsequent Events (Notes)

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 17. Subsequent Events

On October 1, 2014, the Company obtained an unsecured, variable-rate revolving line of credit in the amount of $75 million with an expiration date of September 30, 2015.

On November 5, 2014 the Company announced that the Board of Directors had declared a quarterly cash dividend of $0.50 per common share. The cash dividend is payable on November 26, 2014 to stockholders of record at the close of business on November 17, 2014.

On November 5, 2014, the Board of Directors of the Company approved the Amended and Restated Bylaws (the "Amended and Restated Bylaws"). The Amended and Restated Bylaws changed the voting standard for the election of directors in uncontested elections from a plurality to a majority of the votes cast at any meeting for the election of directors at which a quorum is present. The plurality voting standard continues to apply in any contested elections. The Amended and Restated Bylaws became effective immediately upon their adoption. 

We have evaluated events that have occurred subsequent to September 30, 2014 and have concluded there are no subsequent events that would require recognition in the accompanying consolidated financial statements.

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Borrowings (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Notes Payable, Other Payables [Member]	Sep. 30, 2014 Federal Home Loan Bank Advances [Member]	Sep. 30, 2014 Federal Home Loan Bank of San Francisco [Member]	Dec. 31, 2013 Federal Home Loan Bank of San Francisco [Member]	Dec. 31, 2013 Federal Home Loan Bank of San Francisco [Member]	Sep. 30, 2014 Unsecured Debt [Member]	Sep. 30, 2014 Unused lines of Credit [Member]	Dec. 31, 2013 Unused lines of Credit [Member]	Sep. 30, 2014 Certificate of Deposit Account Registry Service Program [Member]	Dec. 31, 2013 Certificate of Deposit Account Registry Service Program [Member]
Debt Instrument [Line Items]
Debt Instruments Weighted Average Remaining Maturity Period			2.22
Line of Credit Facility, Current Borrowing Capacity				$ 2,400,000,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances				360,000,000
Line of Credit Facility, Borrowing Capacity, Description					1,000,000,000			80,000,000
Loans Pledged as Collateral					1,400,000,000
Line of Credit Facility, Amount Outstanding					0	106,600,000	0		0	0
Interest-bearing Domestic Deposit, Brokered	288,200,000	49,400,000									48,200,000	49,400,000
Brokered Deposits For The Quarter	$ 200,000,000

XML

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 97,906,000	$ 42,006,000
Depreciation, Amortization and Accretion, Net	28,434,000	23,768,000
Allowance for Loan and Lease Losses, Period Increase (Decrease)	9,436,000	(2,872,000)
Provision for Loan and Lease Losses	11,098,000	(3,902,000)
Gains (Losses) on Sales of Other Real Estate	2,746,000	4,006,000
Provision for Loan Losses Expensed	5,065,000	2,094,000
Gain (Loss) on Sale of Loans and Leases	594,000	1,108,000
Gain (Loss) on Disposition of Property Plant Equipment	1,523,000	15,000
Gain (Loss) on Investments, Excluding Other than Temporary Impairments	(4,841,000)	(5,631,000)
Foreign Currency Transaction Gain (Loss), before Tax	1,331,000	0
Unrealized Gain (Loss) on Derivatives	1,062,000	0
Share-based Compensation	33,641,000	6,545,000
Goodwill, Period Increase (Decrease)	6,645,000	0
Goodwill, Impairment Loss	(6,645,000)
Excess Tax Benefit from Share-based Compensation, Operating Activities	4,402,000	985,000
Increase (Decrease) in Income Taxes	47,938,000	4,267,000
Increase Decrease In FDIC Loss Sharing Asset	22,547,000	19,063,000
Increase (Decrease) in Other Operating Assets	8,206,000	(6,254,000)
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities	(79,644,000)	(22,952,000)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	147,263,000	66,428,000
Investing Activities:
Cash Acquired from Acquisition	346,047,000	273,013,000
Payments for (Proceeds from) Loans and Leases	433,525,000	(221,779,000)
Proceeds from Sale of Loans Held-for-investment	35,696,000	18,812,000
Proceeds from Sale and Maturity of Available-for-sale Securities	95,039,000	264,654,000
Proceeds from Sale of Available-for-sale Securities	465,608,000	12,810,000
Capitalized Costs To Complete Other Real Estate Owned	186,969,000	504,936,000
Proceeds from Sale of Other Receivables	484,084,000	0
Payments to Acquire Property, Plant, and Equipment	(28,397,000)	(12,549,000)
Proceeds from Sale of Property, Plant, and Equipment	20,097,000	28,918,000
Net Cash Provided by (Used in) Investing Activities	(2,283,000)	(2,246,000)
Proceeds from Sale of Real Estate Held-for-investment	3,759,000	26,000
Purchases Of Equipment Leased To Others Under Operating Leases	(30,502,000)	0
Payments to Acquire Available-for-sale Securities	(886,452,000)	(325,379,000)
Financing activities:
Increase Decrease In Noninterest Bearing Domestic and Foreign Deposits	420,478,000	28,310,000
Increase Decrease In Interest Bearing Domestic And Foreign Deposits	(518,012,000)	(405,166,000)
Proceeds from (Repayments of) Debt	(742,109,000)	(4,258,000)
Payments for Repurchase of Common Stock	22,307,000	2,415,000
Excess Tax Benefit from Share-based Compensation, Financing Activities	4,402,000	985,000
Payments of Ordinary Dividends, Common Stock	62,727,000	29,648,000
Net Cash Provided by (Used in) Financing Activities, Continuing Operations	(920,275,000)	(412,192,000)
Noncash transactions from investing activities:
Interest Paid	(23,959,000)	(10,604,000)
Proceeds from Income Tax Refunds	3,829,000	16,703,000
Real Estate Owned, Transfer from Real Estate Owned	667,000	12,754,000
Net Cash Provided by (Used in) Continuing Operations	(113,440,000)	20,385,000
Total cash and cash equivalents	260,862,000	144,019,000
Capitalsource, Inc. [Member]
Noncash transactions from investing activities:
Stock Issued	2,594,070,000	0
First California Financial Group, Inc. [Domain]
Noncash transactions from investing activities:
Stock Issued	$ 0	$ 242,268,000

XML

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Preferred Stock, Shares Authorized	$ 0.01	$ 0.01
Preferred Stock, Value, Outstanding	5,000,000	5,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	75,000,000
Common Stock, Shares, Issued	104,225,010	45,526,124
Common Stock, Shares Held in Employee Trust, Shares	1,115,550	1,216,524
Treasury Stock, Shares	1,197,180	703,290

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10. Commitments and Contingencies

Lending Commitments

The Bank is a party to financial instruments with off‑balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, and commitments to purchase equipment being acquired for lease to others. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the condensed consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The following table presents a summary of the financial instruments described above as of the dates indicated:

	September 30, 2014		December 31, 2013
	(In thousands)
Loan commitments to extend credit	$	1,818,694	$	1,001,740
Standby letters of credit	82,207		39,200
Commitments to purchase equipment being acquired for lease to others	6,199		8,475
	$	1,907,100	$	1,049,415

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. We provide standby letters of credit in conjunction with several of our lending arrangements and property lease obligations. Most guarantees expire within one year from the date of issuance. If a borrower defaults on its commitments subject to any letter of credit issued under these arrangements, we would be required to meet the borrower's financial obligation but would seek repayment of that financial obligation from the borrower. In some cases, borrowers have pledged cash and investment securities as collateral with us under these arrangements.

In addition, the Company has investments in low income housing project partnerships, which provide the Company income tax credits, and in a few small business investment companies. The investments call for capital contributions up to an amount specified in the partnership agreements. As of September 30, 2014 and December 31, 2013, the Company had commitments to contribute capital to these entities totaling $12.9 million and $11.0 million, respectively. In connection with equity investments added from the CapitalSource Inc. merger, we have committed to contribute up to an additional $2.5 million to 11 private equity funds.

Legal Matters

In the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. In the opinion of management, based upon information currently available to us, any resulting liability, in addition to amounts already accrued, would not have a material adverse effect on the Company’s financial statements or operations.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	PACWEST BANCORP
Entity Central Index Key	0001102112
Document Period End Date	Sep. 30, 2014
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		101,912,280
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 11. Fair Value Measurements

We use fair value to measure certain assets on a recurring basis, primarily securities available‑for‑sale; we have no liabilities being measured at fair value. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for impaired loans and other real estate owned and also to record impairment on certain assets, such as goodwill, core deposit intangibles, and other long‑lived assets.

The following table presents information on the assets measured and recorded at fair value on a recurring basis as of September 30, 2014:

	Fair Value Measurements as of
	September 30, 2014
Measured on a Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Government agency and government‑sponsored enterprise
pass through securities	$	555,087	$	—	$	555,087	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	279,791		—		279,791		—
Covered private label CMOs	35,309		—		—		35,309
Other private label CMOs	12,593		—		12,593		—
Municipal securities	482,427		—		482,427		—
Corporate debt securities	112,143		—		112,143		—
Government‑sponsored enterprise debt securities	36,382		—		36,382		—
Other securities	25,949		514		25,435		—
Total	$	1,539,681	$	514	$	1,503,858	$	35,309

There were no transfers of assets either between Level 1 and Level 2 nor in or out of Level 3 of the fair value hierarchy for assets measured on a recurring basis during the three and nine months endedSeptember 30, 2014.

The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third party pricing service for our Level 3 covered private label CMOs measured at fair value on a recurring basis as of September 30, 2014:

	Covered Private Label CMOs
Unobservable Inputs:	Range of Inputs	Weighted Average Input
Voluntary annual prepayment speeds	0% - 34.2%	10.2%
Annual default rates	0% - 9.7%	3.2%
Loss severity rates	0% - 65.2%	40.9%
Discount rates	0% - 7.1%	4.9%

The following table summarizes activity for assets measured at fair value on a recurring basis that are categorized as Level 3 for the period indicated:

	Covered Private Label CMOs (Level 3)
	(In thousands)
Balance, December 31, 2013	$	37,904
Total realized in earnings	862
Total unrealized gain in comprehensive income	76
Net settlements	(3,533		)
Balance, September 30, 2014	$	35,309

The following tables present assets measured at fair value on a non‑recurring basis as of the date indicated and the losses recognized on such assets for the period indicated:

	Fair Value Measurement as of								Gain (Loss)
	September 30, 2014								Three Months Ended			Nine Months Ended
	Total		Level 1		Level 2		Level 3		September 30, 2014
Measured on a Non‑Recurring Basis:	(In thousands)
Impaired Non‑PCI loans	$	42,728	$	—	$	2,366	$	40,362	$	(1,374	)	$	(10,205	)
Other real estate owned	28,011		—		26,352		1,659		(4,863		)	(4,863		)
Total non-recurring	$	70,739	$	—	$	28,718	$	42,021	$	(6,237	)	$	(15,068	)

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2014:

Asset	Fair Value (In thousands)		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Impaired Non-PCI loans	$	36,306	Discounted cash flows	Discount rates	0% - 10.46%	6.87%
	$	4,056	Appraisals	No discounts
OREO	$	1,659	Appraisals	Discount, including selling costs	11.19% - 62.61%	39.98%

ASC Topic 825, “Financial Instruments,” requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements.

The following tables present a summary of the carrying values and estimated fair values of certain financial instruments as of the dates indicated:

	September 30, 2014
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	145,463	$	145,463	$	145,463	$	—	$	—
Interest‑earning deposits in financial institutions	115,399		115,399		115,399		—		—
Securities available‑for‑sale	1,539,681		1,539,681		514		1,503,858		35,309
Investment in FHLB stock	45,602		45,602		—		45,602		—
Loans and leases, net	11,492,986		11,396,792		—		2,366		11,394,426
Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	6,006,958		6,006,958		—		6,006,958		—
Time deposits	5,516,479		5,524,373		—		5,524,373		—
Borrowings	363,672		363,804		360,000		3,804		—
Subordinated debentures	433,545		417,349		—		417,349		—

	December 31, 2013
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	96,424	$	96,424	$	96,424	$	—	$	—
Interest‑earning deposits in financial institutions	50,998		50,998		50,998		—		—
Securities available‑for‑sale	1,494,745		1,494,745		507		1,456,334		37,904
Investment in FHLB stock	27,939		27,939		—		27,939		—
Loans and leases, net	4,230,318		4,231,078		—		2,051		4,229,027
SBA loan servicing asset	807		807		—		—		807
Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	4,616,616		4,616,616		—		4,616,616		—
Time deposits	664,371		665,148		—		665,148		—
Borrowings	113,726		113,726		106,600		7,126		—
Subordinated debentures	132,645		132,498		—		132,498		—

The following is a description of the valuation methodologies used to measure our assets recorded at fair value (under ASC Topic 820, “Fair Value Measurement”) and for estimating fair value for financial instruments not recorded at fair value (under ASC Topic 825).

Cash and due from banks. The carrying amount is assumed to be the fair value because of the liquidity of these instruments.

Interest‑earning deposits in financial institutions. The carrying amount is assumed to be the fair value given the short‑term nature of these deposits.

Securities available‑for‑sale. Securities available‑for‑sale are measured and carried at fair value on a recurring basis. Unrealized gains and losses on available‑for‑sale securities are reported as a component of “Accumulated other comprehensive income” in the condensed consolidated balance sheets. See Note 5, Investment Securities, for further information on unrealized gains and losses on securities available‑for‑sale.

Fair value for securities categorized as Level 1, which are publicly traded securities, are based on readily available quoted prices. In determining the fair value of the securities categorized as Level 2, we obtain a report from a nationally recognized broker‑dealer detailing the fair value of each investment security we hold as of each reporting date. The broker‑dealer uses observable market information to value our securities, with the primary source being a nationally recognized pricing service. We review the market prices provided by the broker‑dealer for our securities for reasonableness based on our understanding of the marketplace and we consider any credit issues related to the securities. As we have not made any adjustments to the market quotes provided to us and they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy.

Our covered private label CMOs are categorized as Level 3 due in part to the inactive market for such securities. There is a wide range of prices quoted for private label CMOs among independent third party pricing services and this range reflects the significant judgment being exercised over the assumptions and variables that determine the pricing of such securities. We consider this subjectivity to be a significant unobservable input and have concluded that the covered private label CMOs should be categorized as a Level 3 measured asset. Our fair value estimate was based on prices provided to us by a nationally recognized pricing service which we also use to determine the fair value of the majority of our securities portfolio. We determined the reasonableness of the fair values by reviewing assumptions at the individual security level about prepayment, default expectations, estimated severity loss factors, and discount rates, all of which are not directly observable in the market. Significant changes in default expectations, severity loss factors, or discount rates, which occur all together or in isolation, would result in different fair value measurements.

FHLB stock. Investments in FHLB stock are recorded at cost and measured for impairment quarterly. Ownership of FHLB stock is restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB stock is equal to the carrying amount.

Impaired Non‑PCI loans. Nonaccrual loans and performing restructured loans are considered impaired for reporting purposes and are measured and recorded at fair value on a non‑recurring basis. Nonaccrual Non‑PCI loans with an unpaid principal balance over $250,000 and all performing restructured loans are reviewed individually for the amount of impairment, if any. Nonaccrual Non‑PCI loans with an unpaid principal balance less than $250,000 are not individually assessed for impairment but are instead reserved for under our general reserve component.

To the extent a loan is collateral dependent, we measure such impaired loan based on the estimated fair value of the underlying collateral. The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral; such valuation inputs result in a nonrecurring fair value measurement that is categorized as a Level 2 measurement. The Level 2 measurement is based on appraisals obtained within the last 12 months and for which a charge‑off was recognized or a change in the specific valuation allowance was made during the nine months endedSeptember 30, 2014.

When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. The impaired loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, including an SBA government guarantee, cash flows discounted at the effective loan rate, and management’s judgment.

The impaired Non‑PCI loan balances shown above as measured on a non-recurring basis represent those nonaccrual and restructured loans for which impairment was recognized during the nine months endedSeptember 30, 2014. The amounts shown as net losses include the impairment recognized during the nine months endedSeptember 30, 2014, for the loan balances shown. Of the $88.9 million of nonaccrual Non-PCI loans at September 30, 2014, $2.6 million were written down to their collateral fair values through charge‑offs during the nine months endedSeptember 30, 2014.

Other real estate owned ("OREO"). The fair value of foreclosed real estate is generally based on estimated market prices from independently prepared current appraisals or negotiated sales prices with potential buyers, less estimated costs to sell; such valuation inputs result in a fair value measurement that is categorized as a Level 2 measurement on a nonrecurring basis. As a matter of policy, appraisals are required annually and may be updated more frequently as circumstances require in the opinion of management. The Level 2 measurement for OREO is based on appraisals obtained within the last 12 months and for which a write‑down was recognized during the nine months endedSeptember 30, 2014.

When a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value as a result of known changes in the market or the collateral and there is no observable market price, such valuation inputs result in a fair value measurement that is categorized as a Level 3 measurement. To the extent a negotiated sales price or reduced listing price represents a significant discount to an observable market price, such valuation input would result in a fair value measurement that is also considered a Level 3 measurement. The OREO losses disclosed are write‑downs based on either a recent appraisal obtained after foreclosure or an accepted purchase offer by an independent third party received after foreclosure.

Deposits. Deposits are carried at historical cost. The fair value of deposits with no stated maturity, such as noninterest‑bearing demand deposits, interest checking, money market, and savings accounts, is equal to the amount payable on demand as of the balance sheet date and considered Level 2. The fair value of time deposits is based on the discounted value of contractual cash flows and considered Level 2. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. No value has been separately assigned to the Company’s long‑term relationships with its deposit customers, such as a core deposit intangible.

Borrowings. Borrowings include overnight FHLB advances and other fixed‑rate term borrowings. Borrowings are carried at amortized cost. The fair value of overnight FHLB advances is equal to the carrying value and considered Level 1. The fair value of fixed‑rate borrowings is calculated by discounting scheduled cash flows through the estimated maturity dates or call dates, if applicable, using estimated market discount rates that reflect current rates offered for borrowings with similar remaining maturities and characteristics and are considered Level 2.

Subordinated debentures. Subordinated debentures are carried at amortized cost. The fair value of subordinated debentures with variable rates is determined using a market discount rate on the expected cash flows.

Commitments to extend credit. The majority of our commitments to extend credit carry current market interest rates if converted to loans. Because these commitments are generally unassignable by either the borrower or us, they only have value to the borrower and us. The estimated fair value approximates the recorded deferred fee amounts and is excluded from the table above because it is not material.

Limitations

Fair value estimates are made at a specific point in time and are based on relevant market information and information about the financial instrument. These estimates do not reflect income taxes or any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on what management believes to be conservative judgments regarding expected future cash flows, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimated fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Since the fair values have been estimated as of September 30, 2014, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different.

XML

Business Segment Segment Reporting (Details 1) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Apr. 07, 2014	Dec. 31, 2013	Sep. 30, 2013		May 31, 2013
Loans and Leases Receivable, Net of Deferred Income	$ 11,574,885			$ 4,312,352	$ 4,383,393
Loans and Leases Receivable, Allowance	(81,899)				83,786
Total loans and leases, net	11,492,986			4,230,318	4,299,607
Goodwill	1,722,129		1,520,031	208,743	215,862		129,070
Core deposit and customer relationship intangibles, net	18,823			17,248	18,678
Total assets	15,938,345			6,533,363	6,616,855
Total deposits	11,523,437	[1]		5,280,987	5,433,144	[2]
National Lending Segment [Member]
Loans and Leases Receivable, Net of Deferred Income	8,064,868				470,508
Loans and Leases Receivable, Allowance	(25,187)				(7,290)
Total loans and leases, net	8,039,681				463,218
Goodwill	1,394,401				25,678
Core deposit and customer relationship intangibles, net	1,009				2,074
Total assets	9,182,617				507,339
Total deposits	0	[1]			0	[2]
Other Segments [Member]
Loans and Leases Receivable, Net of Deferred Income	27,892				0
Loans and Leases Receivable, Allowance	0				0
Total loans and leases, net	27,892				0
Goodwill	0				0
Core deposit and customer relationship intangibles, net	0				0
Total assets	262,859				8,929
Total deposits	(303,244)	[1]			(34,424)	[2]
Pacific Western Bank [Member]
Loans and Leases Receivable, Net of Deferred Income	3,482,125				3,912,885
Loans and Leases Receivable, Allowance	(56,712)				(76,496)
Total loans and leases, net	3,425,413				3,836,389
Goodwill	327,728				190,184
Core deposit and customer relationship intangibles, net	17,814				16,604
Total assets	6,492,869				6,100,587
Total deposits	$ 11,826,681	[1]			$ 5,467,568	[2]

[1] (1)The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

[2] The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest income:
Loans and leases	$ 189,961	$ 192,201	$ 75,196	$ 459,625	$ 199,374
Deposits in financial institutions	(12,331)	(11,986)	(9,871)	(35,140)	(26,501)
Deposits in financial institutions	64	176	91	314	183
Total interest income	202,356	204,363	85,158	495,079	226,058
Interest expense:
Deposits	8,822	7,313	1,692	17,360	6,418
Interest Expense, Federal Home Loan Bank and Federal Reserve Bank Advances, Long-term	74	199	108	352	451
Interest Expense, Subordinated Notes and Debentures	4,614	4,318	1,069	9,973	2,734
Total interest expense	13,510	11,830	2,869	27,685	9,603
Net interest income	188,846	192,533	82,289	467,394	216,455
Provision for Loan, Lease, and Other Losses	5,050	5,030	(4,167)	9,436	(2,872)
Net interest income after loan and lease loss (recovery) provision	183,796	187,503	86,456	457,958	219,327
Non-interest income:
Fees and Commissions, Depositor Accounts	2,725	2,719	2,938	8,446	8,568
Fees and Commissions, Other	6,371	5,743	2,204	14,046	6,291
Leased equipment income	5,615	5,672	0	11,287	0
Gain (Loss) on Sale of Leased Assets, Net, Operating Leases	973	(485)	604	594	1,108
Gain (Loss) on Investments	0	89	5,222	4,841	5,631
Gain (Loss) on Investments, Excluding Other than Temporary Impairments				(4,841)	(5,631)
Federal Deposit Insurance Corporation Loss Sharing	(7,415)	(8,525)	(7,032)	(27,370)	(15,579)
Noninterest Income, Other Operating Income	8,045	3,266	1,191	17,640	2,151
Total non-interest income	16,314	8,479	5,127	29,484	8,170
Non-interest expense:
Compensation and benefits	(45,861)	(45,081)	(27,963)	(119,569)	(79,370)
Occupancy expenses	(11,188)	(11,078)	(7,828)	(29,861)	(21,906)
Information Technology and Data Processing	3,929	4,099	2,590	10,568	7,278
Professional fees	(3,687)	(2,843)	(1,906)	(8,053)	(4,984)
FDIC fees and assessments	(3,020)	(3,179)	(1,496)	(7,792)	(4,024)
Amortization of Intangible Assets	1,608	1,677	1,512	4,649	3,972
Other non-interest expense, net	(13,355)	(12,115)	(7,875)	(32,758)	(19,860)
Total operating expenses	82,648	80,072	51,170	213,250	141,394
Lease Equipment Depreciation	2,961	3,095	0	6,056	0
(Income from) expense of real estate owned and other foreclosed assets, net	4,827	497	(420)	3,463	(934)
Business Combination, Acquisition Related Costs	5,193	86,242	5,450	93,635	24,139
Total non-interest expense	95,629	169,906	56,200	316,404	164,599
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	104,481	26,076	35,383	171,038	62,898
Income tax expense (benefit)	(42,205)	(14,846)	(11,243)	(71,627)	(20,868)
Net income before income taxes	62,276	11,230	24,140	99,411	42,030
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	(8)	(1,151)	39	(2,572)	(42)
Discontinued Operation, Tax Effect of Discontinued Operation	3	476	(16)	1,067	18
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax	(5)	(675)	23	(1,505)	(24)
Net Income (Loss) Available to Common Stockholders, Basic	61,591	10,265	23,377	96,777	40,869
Net income	$ 62,271	$ 10,555	$ 24,163	$ 97,906	$ 42,006
Net earnings from continuing operations	$ 0.60	$ 0.11	$ 0.53	$ 1.20	$ 1.03
Basic income per share	$ 0.60	$ 0.10	$ 0.53	$ 1.18	$ 1.03
Net earnings from continuing operations	$ 0.60	$ 0.11	$ 0.53	$ 1.20	$ 1.03
Diluted income per share	$ 0.60	$ 0.10	$ 0.53	$ 1.18	$ 1.03
Dividends declared per share	$ 0.25		$ 0.25	$ 0.75	$ 0.75

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Investments Investments (Notes)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Investment

Note 5. Investments     

Securities Available-for-Sale

The following table presents amortized cost, gross unrealized gains and losses, and carrying values of securities available-for-sale. As of September 30, 2014 and December 31, 2013, our investment securities, available-for-sale were as follows:

	September 30, 2014									December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Residential mortgage-backed securities:
Government agency and
government-sponsored enterprise
pass through securities	$	537,969	$	17,917	$	(799	)	$	555,087	$	691,944	$	18,012	$	(2,768	)	$	707,188
Government agency and
government-sponsored enterprise
collateralized mortgage obligations	280,820		1,456		(2,485		)	279,791		197,069		388		(4,584		)	192,873
Covered private label collateralized
mortgage obligations	27,830		7,568		(89		)	35,309		30,502		7,552		(150		)	37,904
Other private label collateralized
mortgage obligations	12,563		35		(5		)	12,593		—		—		—			—
Municipal securities	473,426		12,212		(3,211		)	482,427		459,182		1,749		(24,273		)	436,658
Corporate debt securities	110,032		2,139		(28		)	112,143		84,119		71		(1,483		)	82,707
Government-sponsored enterprise debt
securities	36,214		168		—			36,382		10,046		—		(174		)	9,872
Other securities	26,044		33		(128		)	25,949		27,654		2		(113		)	27,543
Total	$	1,504,898	$	41,528	$	(6,745	)	$	1,539,681	$	1,500,516	$	27,774	$	(33,545	)	$	1,494,745

The covered private label collateralized mortgage obligations ("CMO's") were acquired in the FDIC-assisted acquisition of Affinity Bank in August 2009. The loss sharing provisions for these private label CMO's expired in the third quarter of 2014. Other securities consist primarily of asset‑backed securities. See Note 11, Fair Value Measurements, for information on fair value measurements and methodology.

As of September 30, 2014, securities available‑for‑sale with a carrying value of $294.6 million were pledged as collateral for borrowings, public deposits and other purposes as required by various statutes and agreements.

During the three months endedSeptember 30, 2014 and 2013, we sold no securities. However, during the three months endedSeptember 30, 2013, we recorded a $5.2 million non-taxable gain to recognize our previously-held equity interest in FCAL common stock at its fair market value as of the acquisition date.

During the nine months endedSeptember 30, 2014, we sold $461.7 million of GSE pass through securities, other securities, and securities obtained in the CapitalSource Inc. merger, for which we realized gains of $4.9 million. During the nine months endedSeptember 30, 2013, we sold $12.4 million in corporate debt securities for which we realized gains of $409,000.

Realized gains or losses resulting from the sale of securities are calculated using the specific identification method and included in gain on securities. During the three months endedSeptember 30, 2014 and 2013, we had $0.7 million and $(0.7) million, respectively, of net unrealized after-tax gains (losses) as a component of accumulated other comprehensive income, net.

Unrealized Losses on Investment Securities

As of September 30, 2014 and December 31, 2013, the gross unrealized losses and fair values of investment securities that were in unrealized loss positions, for which other-than-temporary impairments have not been recognized in earnings, were as follows:

	September 30, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Residential mortgage-backed securities:
Government agency and government-
sponsored enterprise pass through
securities	$	38,316	$	(191	)	$	27,894	$	(608	)	$	66,210	$	(799	)
Government agency and government-
sponsored enterprise collateralized
mortgage obligations	159,329		(967		)	42,340		(1,518		)	201,669		(2,485		)
Covered private label collateralized
mortgage obligations	—		—			1,050		(89		)	1,050		(89		)
Other private label collateralized
mortgage obligations	893		(5		)	—		—			893		(5		)
Municipal securities	18,058		(75		)	133,602		(3,136		)	151,660		(3,211		)
Corporate debt securities	—		—			12,971		(28		)	12,971		(28		)
securities	—		—			—		—			—		—
Other securities	6,427		(108		)	10,030		(20		)	16,457		(128		)
Total	$	223,023	$	(1,346	)	$	227,887	$	(5,399	)	$	450,910	$	(6,745	)

	December 31, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Residential mortgage-backed securities:
Government agency and government-
sponsored enterprise pass through
securities	$	148,662	$	(2,767	)	$	32	$	(1	)	$	148,694	$	(2,768	)
Government agency and government-
sponsored enterprise collateralized
mortgage obligations	179,938		(4,486		)	4,383		(98		)	184,321		(4,584		)
Covered private label collateralized
mortgage obligations	1,640		(60		)	617		(90		)	2,257		(150		)
Municipal securities	337,208		(24,273		)	—		—			337,208		(24,273		)
Corporate debt securities	72,636		(1,483		)	—		—			72,636		(1,483		)
Government-sponsored enterprise debt
securities	9,872		(174		)	—		—			9,872		(174		)
Other securities	23,969		(113		)	—		—			23,969		(113		)
Total	$	773,925	$	(33,356	)	$	5,032	$	(189	)	$	778,957	$	(33,545	)

We reviewed the securities that were in a loss position at September 30, 2014, and concluded their losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. Accordingly, we determined the securities were temporarily impaired and we did not recognize such impairment in the condensed consolidated statements of earnings. Additionally, we have no plans to sell these securities and believe that it is more likely than not we would not be required to sell these securities before recovery of their amortized cost.

Contractual Maturities

The following table presents the contractual maturities of our available-for-sale securities portfolio based on amortized cost and carrying value as of the date indicated.

	September 30, 2014
	Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	4,386	$	4,422
Due after one year through five years	85,057		85,209
Due after five years through ten years	249,748		252,685
Due after ten years	1,165,707		1,197,365
Total securities available-for-sale	$	1,504,898	$	1,539,681

Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities may differ from contractual maturities because obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

FHLB Stock

At September 30, 2014, we had a $45.6 million investment in Federal Home Loan Bank of San Francisco ("FHLB SF") stock carried at cost. During the nine months endedSeptember 30, 2014, FHLB SF stock increased $17.7 million due primarily to the addition of FHLB SF stock from the CapitalSource Inc. merger. We evaluated the carrying value of our FHLB SF stock investment at September 30, 2014, and determined that it was not impaired. Our evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB SF, repurchase activity of excess stock by the FHLB SF at its carrying value, the return on the investment, and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment.

Interest Income on Investment Securities

The following table presents the composition of our interest income on investment securities:

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2014		2014		2013		2014		2013
	(In thousands)
Taxable interest	$	7,850	$	7,668	$	6,028	$	22,438	$	16,979
Non-taxable interest	3,343		3,333		3,302		10,004		8,443
Dividend income	1,138		985		541		2,698		1,079
Total interest income on investment securities	$	12,331	$	11,986	$	9,871	$	35,140	$	26,501

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Goodwill and Other Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Note 4.  Goodwill and Other Intangible Assets

Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Our intangible assets with definite lives are core deposit intangibles ("CDI") and customer relationship intangibles ("CRI"). In the second quarter of 2014, we wrote-off $6.6 million of goodwill and $0.5 million of CRI related to the reorganization of the legacy PacWest asset financing segment. These amounts are included in "Acquisition, integration and reorganization costs" in the condensed consolidated statement of earnings. In the third quarter of 2014, we had no such write-offs.

Goodwill and other intangible assets deemed to have indefinite lives generated from purchase business combinations are not subject to amortization and are instead tested for impairment no less than annually. Impairment exists when the carrying value of goodwill exceeds its implied fair value. An impairment loss would be recognized in an amount equal to that excess and would be included in “Noninterest expense” in the condensed consolidated statement of earnings.

CDI and CRI are amortized over their respective estimated useful lives and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or loan customers acquired. The weighted average amortization period remaining for all of our CDI and CRI is 4.6 years. The aggregate CDI and CRI amortization expense is expected to be $6.7 million for 2014. The estimated aggregate amortization expense related to these intangible assets for each of the next five years is $6.0 million for 2015, $4.1 million for 2016, $2.3 million for 2017, $2.0 million for 2018 and $1.7 million for 2019.

The following table presents the changes in the carrying amount of goodwill for the period indicated:    

	Goodwill
	(In thousands)
Balance, December 31, 2013	$	208,743
Addition from the CapitalSource Inc. merger	1,520,031
Write-off of goodwill	(6,645		)
Balance, September 30, 2014	$	1,722,129

The following table presents the changes in CDI and CRI and the related accumulated amortization for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(In thousands)
Gross Amount of CDI and CRI:
Balance, beginning of period	$	53,090		$	48,963		$	53,339		$	48,963		$	45,412
Additions	—			6,720			—			6,720			7,927
Fully amortized portion	—			(1,293		)	(4,376		)	(1,293		)	(4,376		)
Write-off	—			(1,300		)	—			(1,300		)	—
Balance, end of period	53,090			53,090			48,963			53,090			48,963
Accumulated Amortization:
Balance, beginning of period	(32,659		)	(33,079		)	(33,149		)	(31,715		)	(30,689		)
Amortization	(1,608		)	(1,677		)	(1,512		)	(4,649		)	(3,972		)
Fully amortized portion	—			1,293			4,376			1,293			4,376
Write-off	—			804			—			804			—
Balance, end of period	(34,267		)	(32,659		)	(30,285		)	(34,267		)	(30,285		)
Net CDI and CRI, end of period	$	18,823		$	20,431		$	18,678		$	18,823		$	18,678

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Recently Issued Accounting Standards (Notes)

9 Months Ended

Sep. 30, 2014

Recently Issued Accounting Standards [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles

Note 16.  Recently Issued Accounting Standards

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014‑01, “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” ASU 2014‑01 allows investors in low‑income housing tax credit (“LIHTC”) entities that meet certain conditions to present the net tax benefits (net of the amortization of the cost of the investment) within income tax expense. The cost of the investments that meet the conditions will be amortized in proportion to (and over the same period as) the total expected tax benefits, including tax credits and other tax benefits, as they are realized on the tax return. ASU 2014‑01 is effective for us on January 1, 2015 and is to be applied retrospectively if investors elect the proportional amortization method. However, if investors have LIHTC investments accounted for under the effective yield method at adoption, they may continue to apply that method for those existing investments. The adoption of this standard permits expenses currently reported in noninterest expense to be reported in income tax expense. Early adoption is permitted. The adoption of this standard in January 2015 is not expected to have a material impact on our financial statements, however, total noninterest expense and income tax expense may change.

In January 2014, the FASB issued ASU 2014‑04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310‑40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure.” ASU 2014‑04 clarifies when a creditor should reclassify mortgage loans collateralized by residential real estate from loans receivable to other real estate owned. ASU 2014‑04 defines when an in‑substance repossession or foreclosure has occurred and when a creditor is considered to have received physical possession of residential real estate collateralizing a mortgage loan. ASU 2014‑04 is effective for us on January 1, 2015 and can be applied either prospectively or using a modified retrospective transition method, and early adoption is permitted. We do not expect the adoption of this standard in January 2015 to have a material impact on our financial statements.

In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 is an amendment to Subtopic 205-20 that changes the criteria for reporting discontinued operations by raising the threshold for disposals to qualify as discontinued operations. Effectively, this update aims to reduce the unnecessarily frequent reporting of disposals of small groups of assets that are recurring in nature. The revised definition states that a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. ASU 2014-08 is effective for us for all disposals that occur after December 31, 2014. The adoption of this standard is not expected to have a material impact on our financial statements.

ASU 2014-09, "Revenue Recognition (Topic 606): Revenue from Contracts with Customers," was issued May 2014 and will be effective for annual and interim periods beginning after December 15, 2016. Early application is not permitted. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

ASU 2014-12, "Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period," was issued June 2014 and will be effective for annual and interim periods beginning after December 15, 2015. ASU 2014-12 applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide for a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. We do not currently have outstanding performance-based awards and, as a result, ASU 2014-12 would not impact our financial statements and its related disclosures.

In August 2014, the FASB issued ASU 2014-14, "Receivables - Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure." This ASU requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU 2014-14 is effective for public business entities for reporting periods, including interim periods, beginning after December 15, 2014. The Company is evaluating the effect that ASU 2014-14 will have on its financial statements and related disclosures since we have covered loans with loss sharing agreements with the FDIC, pursuant to which we will be reimbursed for a substantial portion of any future losses under the terms and agreements.

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Earnings Per Share Earnings per share (Notes)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

The computations of basic and diluted net earnings per share for the periods indicated were as follows:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands, except per share data)
Basic earnings per share:
Net earnings from continuing operations	$	62,276		$	11,230		$	24,140		$	99,411		$	42,030
Less: earnings allocated to unvested restricted stock(1)	(685		)	(290		)	(786		)	(1,147		)	(1,137		)
Net earnings from continuing operations allocated to common shares	61,591			10,940			23,354			98,264			40,893
Net (loss) earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares and unvested restricted stock outstanding	103,029			98,817			46,091			82,758			41,306
Less: weighted-average unvested restricted stock outstanding	(1,117		)	(678		)	(1,795		)	(981		)	(1,663		)
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Basic earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net loss from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03
Diluted earnings per share:
Net earnings from continuing operations allocated to common shares	$	61,591		$	10,940		$	23,354		$	98,264		$	40,893
Net (loss) earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Diluted earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net loss from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03

________________________

(1) Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

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Subsequent Events (Details) (USD $)	3 Months Ended		6 Months Ended	9 Months Ended		0 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Nov. 05, 2014 Subsequent Event [Member]	Nov. 05, 2014 Dividend Declared [Member] Subsequent Event [Member]	Nov. 05, 2014 Scenario, Forecast [Member] Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends Payable, Date Declared						Nov. 05, 2014
Common Stock, Dividends, Per Share, Declared	$ 0.25	$ 0.25	$ 0.25	$ 0.75	$ 0.75		$ 0.50
Dividends Payable, Date to be Paid						Nov. 26, 2014
Dividends Payable, Date of Record								Nov. 17, 2014

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FDIC Loss Sharing Asset (Notes)

9 Months Ended

Sep. 30, 2014

FDIC Loss Sharing Asset [Abstract]

FDIC Loss Sharing Asset Disclosure

Note 8.  FDIC Loss Sharing Asset

We are a party to four loss sharing agreements with the FDIC. Such agreements cover a substantial portion of losses incurred on acquired covered loans and other real estate owned. The loss sharing agreements relate to the acquisitions of: (1) Affinity Bank ("Affinity") in August 2009, (2) Los Padres Bank ("Los Padres") in August 2010, (3) Western Commercial Bank ("Western Commercial") in connection with the May 2013 FCAL acquisition, and (4) San Luis Trust Bank ("San Luis") in connection with the May 2013 FCAL acquisition. Generally, under the terms of the loss sharing agreements, the FDIC is responsible for 80% of losses in connection with covered assets and is entitled to receive 80% of loss recoveries on the covered assets during the applicable contractual periods. The loss sharing provisions for the Affinity Bank non-single family covered assets expired in the third quarter of 2014; accordingly, further activity will be limited to recoveries through the third quarter of 2017 for assets covered by this loss sharing agreement.

The following table presents the changes in the FDIC loss sharing asset for the period indicated:

	FDIC Loss Sharing Asset
	(In thousands)
Balance, December 31, 2013	$	45,524
FDIC share of additional losses, net of recoveries	(4,654		)
Cash paid to the FDIC	3,363
Net amortization	(21,256		)
Balance, September 30, 2014	$	22,977

The following table presents information about the composition of the FDIC loss sharing asset, the true‑up liability, and the non‑single family and the single family covered assets as of the date indicated:

	September 30, 2014
	Affinity Bank			Los Padres Bank		Western Commercial Bank		San Luis Trust Bank		Total
	(In thousands)
FDIC loss sharing asset	$	(819	)	$	13,283	$	1,432	$	9,081	$	22,977
True‑up liability	N/A			N/A		$	1,574	$	5,350	$	6,924
Non-single family covered assets	$	142,454		$	92,440	$	13,746	$	30,670	$	279,310
Single family covered assets	$	12,536		$	64,131	N/A		$	31,302	$	107,969
Loss sharing expiration dates:
Non‑single family	3rd Quarter 2014			3rd Quarter 2015		4th Quarter 2015		1st Quarter 2016
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021
Loss recovery expiration dates:
Non‑single family	3rd Quarter 2017			3rd Quarter 2018		4th Quarter 2018		1st Quarter 2019
Single family	3rd Quarter 2019			3rd Quarter 2020		N/A		1st Quarter 2021

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Loans and Credit Quality (Details Textual) (USD $)	3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014 NonCovered [Member]	Sep. 30, 2013 NonCovered [Member]	Sep. 30, 2014 NonCovered [Member]	Sep. 30, 2013 NonCovered [Member]	Dec. 31, 2013 NonCovered [Member]	Dec. 31, 2013 Nonperforming Financing Receivable [Member] NonCovered [Member]	Sep. 30, 2014 Nonperforming Financing Receivable [Member] NonCovered [Member] Commercial Real Estate Construction Financing Receivable [Member]	Dec. 31, 2013 Nonperforming Financing Receivable [Member] NonCovered [Member] Commercial Real Estate Construction Financing Receivable [Member]	Apr. 07, 2014 Capitalsource, Inc. [Member] NonCovered [Member]	Apr. 07, 2014 Capitalsource, Inc. [Member] Covered [Member]
Financing Receivable, Impaired [Line Items]
Goodwill, Impairment Loss	$ 0	$ (6,600,000)	$ (6,645,000)
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		0	0
Loans and Leases Receivable, Net of Deferred Income	11,574,885,000		11,574,885,000	4,312,352,000	4,383,393,000	11,223,506,000	3,950,636,000	11,223,506,000	3,950,636,000	3,929,556,000		2,703,000	2,830,000
Business Combination, Acquired Receivables, Fair Value														6,800,000,000	79,200,000
Business Combination, Acquired Receivables, Gross Contractual Amount														9,400,000,000
Loans and Leases Receivable, Gross	11,591,395,000		11,591,395,000	4,313,335,000		11,239,964,000		11,239,964,000		3,930,539,000	46,774,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down						236,000	0	236,000	1,100,000
Financing Receivable Recorded Investment Thirty to Eighty Nine Days Past Due	7,400,000		7,400,000	4,200,000		13,269,000		13,269,000		23,897,000
Financing Receivable Recorded Investment Nonaccrual Status Current	61,600,000		61,600,000	37,300,000
Undiscounted Cash Flows Not Expected to be collected														$ 839,800,000

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Loans and Credit Quality

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Loans and Credit Quality

Note 6.  Loans and Leases and Credit Quality

The Company’s loan and lease portfolio includes originated and purchased loans and leases. Originated loans and leases and purchased loans and leases, in each case, for which there was no evidence of credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments, are referred to collectively as non-purchased credit impaired loans, or "Non-PCI loans." Purchased loans for which there was, at the acquisition date, evidence of credit deterioration since their origination and it was probable that we would be unable to collect all contractually required payments are referred to as purchased credit impaired loans, or "PCI loans".

Non-PCI loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired non-impaired loans are recognized as an adjustment to interest income over the contractual life of the loans using the effective interest method or taken into income when the related loans are paid off or sold.

PCI loans are accounted for in accordance with ASC Subtopic 310‑30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” For PCI loans, at the time of acquisition we (i) calculate the contractual amount and timing of undiscounted principal and interest payments (the "undiscounted contractual cash flows") and (ii) estimate the amount and timing of undiscounted expected principal and interest payments (the "undiscounted expected cash flows"). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The difference between the undiscounted cash flows expected to be collected and the estimated fair value of the acquired loans is the accretable yield. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loan portfolios; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income.

In the CapitalSource Inc. merger, the estimated fair value of the loans and leases acquired, excluding PCI loans, was $6.8 billion, the related gross contractual cash flows was $9.4 billion, and the estimated contractual cash flows not expected to be collected was $839.8 million. The estimated fair value of loans acquired that were identified as PCI loans was $79.2 million.

The following table summarizes the accretable yield on the PCI loans acquired in the CapitalSource Inc. merger as of April 7, 2014:

	April 7, 2014 Accretable Yield
	(In thousands)
Undiscounted contractual cash flows	$	227,688
Undiscounted cash flows not expected to be collected (nonaccretable difference)	(134,726		)
Undiscounted cash flows expected to be collected	92,962
Estimated fair value of PCI loans acquired	(79,234		)
Accretable yield	$	13,728

The following table summarizes the composition of our loan and lease portfolio as of the dates indicated:

	September 30, 2014									December 31, 2013
	Non-PCI									Non-PCI
	Loans			PCI						Loans			PCI
	and Leases			Loans			Total			and Leases			Loans			Total
	(In thousands)
Real estate mortgage	$	5,406,371		$	314,919		$	5,721,290		$	2,424,864		$	371,134		$	2,795,998
Real estate construction	285,109			8,208			293,317			209,090			10,427			219,517
Commercial	5,440,144			27,961			5,468,105			1,241,776			974			1,242,750
Consumer	108,340			343			108,683			54,809			261			55,070
Total gross loans and leases	11,239,964			351,431			11,591,395			3,930,539			382,796			4,313,335
Deferred fees and costs	(16,458		)	(52		)	(16,510		)	(983		)	—			(983		)
Total loans and leases, net of unearned income	11,223,506			351,379			11,574,885			3,929,556			382,796			4,312,352
Allowance for loan and lease losses	(63,084		)	(18,815		)	(81,899		)	(60,241		)	(21,793		)	(82,034		)
Total net loans and leases	$	11,160,422		$	332,564		$	11,492,986		$	3,869,315		$	361,003		$	4,230,318

The following tables present a summary of the activity in the allowance for loan and lease losses on Non‑PCI loans and leases by portfolio segment and PCI loans for the periods indicated:

	Three Months Ended September 30, 2014
	Real Estate Mortgage			Real Estate Construction		Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	22,276		$	4,302	$	35,530		$	3,415		$	65,523		$	16,626		$	82,149
Charge-offs	(395		)	—		(7,282		)	(171		)	(7,848		)	(108		)	(7,956		)
Recoveries	1,312			24		337			52			1,725			—			1,725
Provision (negative provision)	3,810			1,591		422			(2,139		)	3,684			2,297			5,981
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899

	Nine Months Ended September 30, 2014
	Real Estate Mortgage			Real Estate Construction		Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	26,078		$	4,298	$	26,921		$	2,944		$	60,241		$	21,793		$	82,034
Charge-offs	(976		)	—		(9,049		)	(203		)	(10,228		)	(4,712		)	(14,940		)
Recoveries	1,949			112		1,301			294			3,656			51			3,707
Provision (negative provision)	(48		)	1,507		9,834			(1,878		)	9,415			1,683			11,098
Balance, end of period	$	27,003		$	5,917	$	29,007		$	1,157		$	63,084		$	18,815		$	81,899
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	1,568		$	119	$	7,654		$	34		$	9,375
Collectively evaluated for impairment	$	25,435		$	5,798	$	21,353		$	1,123		$	53,709
Acquired loans with deteriorated credit quality															$	18,815
Loan and Leases:
Ending balance	$	5,398,244		$	283,067	$	5,433,787		$	108,408		$	11,223,506		$	351,379		$	11,574,885
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	59,729		$	12,692	$	47,180		$	3,655		$	123,256
Collectively evaluated for impairment	$	5,338,515		$	270,375	$	5,386,607		$	104,753		$	11,100,250
Acquired loans with deteriorated credit quality															$	351,379

	Three Months Ended September 30, 2013
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for loan and lease losses:
Balance, beginning of period	$	31,804		$	3,432		$	26,343		$	1,667		$	63,246		$	27,397		$	90,643
Charge-offs	(281		)	—			(2,439		)	(75		)	(2,795		)	—			(2,795		)
Recoveries	152			179			324			15			670			5			675
Provision (negative provision)	(2,069		)	(66		)	1,233			332			(570		)	(4,167		)	(4,737		)
Balance, end of period	$	29,606		$	3,545		$	25,461		$	1,939		$	60,551		$	23,235		$	83,786

	Nine Months Ended September 30, 2013
	Real Estate Mortgage			Real Estate Construction			Commercial			Consumer			Total Non-PCI			Total PCI			Total
	(In thousands)
Allowance for loan and lease losses:
Balance, beginning of period	$	38,700		$	3,221		$	22,252		$	1,726		$	65,899		$	26,069		$	91,968
Charge-offs	(3,840		)	—			(4,631		)	(111		)	(8,582		)	—			(8,582		)
Recoveries	1,665			514			2,028			57			4,264			38			4,302
Provision (negative provision)	(6,919		)	(190		)	5,812			267			(1,030		)	(2,872		)	(3,902		)
Balance, end of period	$	29,606		$	3,545		$	25,461		$	1,939		$	60,551		$	23,235		$	83,786
Amount of the allowance applicable to loans and leases:
Individually evaluated for impairment	$	3,225		$	103		$	6,147		$	240		$	9,715
Collectively evaluated for impairment	$	26,381		$	3,442		$	19,314		$	1,699		$	50,836
Acquired loans with deteriorated credit quality																$	23,235
Loan and Leases:
Ending balance	$	2,548,932		$	188,872		$	1,178,923		$	33,909		$	3,950,636		$	432,757		$	4,383,393
The ending balance of the loan and lease portfolio is composed of loans and leases:
Individually evaluated for impairment	$	90,329		$	14,878		$	25,083		$	792		$	131,082
Collectively evaluated for impairment	$	2,458,603		$	173,994		$	1,153,840		$	33,117		$	3,819,554
Acquired loans with deteriorated credit quality																$	432,757

Non‑Purchased Credit Impaired (Non‑PCI) Loans and Leases

The following table presents the credit risk rating categories for Non‑PCI loans and leases by portfolio segment and class as of the dates indicated. Nonclassified loans and leases are those with a credit risk rating of either pass or special mention, while classified loans and leases are those with a credit risk rating of either substandard or doubtful.

	September 30, 2014						December 31, 2013
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	504,066	$	15,284	$	519,350	$	168,216	$	12,337	$	180,553
SBA	344,285		7,483		351,768		39,869		5,297		45,166
Other	4,430,742		96,384		4,527,126		2,132,109		64,279		2,196,388
Total real estate mortgage	5,279,093		119,151		5,398,244		2,340,194		81,913		2,422,107
Real estate construction:
Residential	71,961		925		72,886		58,131		750		58,881
Commercial	205,258		4,923		210,181		142,607		6,291		148,898
Total real estate construction	277,219		5,848		283,067		200,738		7,041		207,779
Commercial:
Collateralized	416,759		11,818		428,577		567,643		18,838		586,481
Unsecured	125,373		1,666		127,039		151,896		1,856		153,752
Asset-based	1,575,920		18,512		1,594,432		195,569		6,859		202,428
Cash flow	2,238,196		76,002		2,314,198		—		—		—
Equipment finance	906,494		21,966		928,460		272,851		632		273,483
SBA	39,042		2,039		41,081		22,880		5,761		28,641
Total commercial	5,301,784		132,003		5,433,787		1,210,839		33,946		1,244,785
Consumer	104,424		3,984		108,408		50,474		4,411		54,885
Total Non-PCI loans and leases	$	10,962,520	$	260,986	$	11,223,506	$	3,802,245	$	127,311	$	3,929,556

In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations. Risk rating downgrades generally result in higher allowances for credit losses.

The following tables present an aging analysis of our Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2014
	30-89 Days Past Due		90 or More  Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	519,350	$	519,350
SBA	2,304		516		2,820		348,948		351,768
Other	8,150		13,128		21,278		4,505,848		4,527,126
Total real estate mortgage	10,454		13,644		24,098		5,374,146		5,398,244
Real estate construction:
Residential	—		542		542		72,344		72,886
Commercial	1,928		1,487		3,415		206,766		210,181
Total real estate construction	1,928		2,029		3,957		279,110		283,067
Commercial:
Collateralized	56		940		996		427,581		428,577
Unsecured	38		25		63		126,976		127,039
Asset-based	271		—		271		1,594,161		1,594,432
Cash flow	235		—		235		2,313,963		2,314,198
Equipment finance	119		132		251		928,209		928,460
SBA	—		—		—		41,081		41,081
Total commercial	719		1,097		1,816		5,431,971		5,433,787
Consumer	168		3,244		3,412		104,996		108,408
Total Non-PCI loans and leases	$	13,269	$	20,014	$	33,283	$	11,190,223	$	11,223,506

	December 31, 2013
	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Real estate mortgage:
Hospitality	$	—	$	—	$	—	$	180,553	$	180,553
SBA	2,564		—		2,564		42,602		45,166
Other	13,026		2,406		15,432		2,180,956		2,196,388
Total real estate mortgage	15,590		2,406		17,996		2,404,111		2,422,107
Real estate construction:
Residential	—		—		—		58,881		58,881
Commercial	—		2,013		2,013		146,885		148,898
Total real estate construction	—		2,013		2,013		205,766		207,779
Commercial:
Collateralized	473		259		732		585,749		586,481
Unsecured	83		68		151		153,601		153,752
Asset-based	—		—		—		202,428		202,428
Equipment finance	2,662		244		2,906		270,577		273,483
SBA	1,770		243		2,013		26,628		28,641
Total commercial	4,988		814		5,802		1,238,983		1,244,785
Consumer	3,319		—		3,319		51,566		54,885
Total Non-PCI loans and leases	$	23,897	$	5,233	$	29,130	$	3,900,426	$	3,929,556

At September 30, 2014 and December 31, 2013, the Company had no loans and leases (excluding PCI loans) that were greater than 90 days past due and still accruing interest. It is the Company’s policy to discontinue accruing interest when principal or interest payments are past due 90 days or more unless the loan is both well secured and in the process of collection or when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business.

The following table presents our nonaccrual and performing Non‑PCI loans and leases by portfolio segment and class as of the dates indicated:

	September 30, 2014						December 31, 2013
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Hospitality	$	6,451	$	512,899	$	519,350	$	6,723	$	173,830	$	180,553
SBA	7,483		344,285		351,768		2,602		42,564		45,166
Other	26,575		4,500,551		4,527,126		18,648		2,177,740		2,196,388
Total real estate mortgage	40,509		5,357,735		5,398,244		27,973		2,394,134		2,422,107
Real estate construction:
Residential	925		71,961		72,886		389		58,492		58,881
Commercial	2,703		207,478		210,181		2,830		146,068		148,898
Total real estate construction	3,628		279,439		283,067		3,219		204,560		207,779
Commercial:
Collateralized	5,165		423,412		428,577		9,991		576,490		586,481
Unsecured	226		126,813		127,039		458		153,294		153,752
Asset-based	5,003		1,589,429		1,594,432		1,070		201,358		202,428
Cash flow	15,958		2,298,240		2,314,198		—		—		—
Equipment finance	12,885		915,575		928,460		632		272,851		273,483
SBA	2,039		39,042		41,081		3,037		25,604		28,641
Total commercial	41,276		5,392,511		5,433,787		15,188		1,229,597		1,244,785
Consumer	3,535		104,873		108,408		394		54,491		54,885
Total Non-PCI loans and leases	$	88,948	$	11,134,558	$	11,223,506	$	46,774	$	3,882,782	$	3,929,556

At September 30, 2014, nonaccrual loans and leases totaled $88.9 million. Nonaccrual loans and leases included $7.4 million of loans 30 to 89 days past due and $61.6 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectibility. Nonaccrual loans and leases totaled $46.8 million at December 31, 2013, including $4.2 million of loans 30 to 89 days past due and $37.3 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectibility.

Non‑PCI nonaccrual loans and leases and performing restructured loans are considered impaired for reporting purposes. The following table presents the composition of our impaired loans and leases as of the dates indicated:

	September 30, 2014						December 31, 2013
			Performing		Total				Performing		Total
	Nonaccrual		Restructured		Impaired		Nonaccrual		Restructured		Impaired
	Loans/Leases		Loans		Loans/Leases		Loans/Leases		Loans		Loans/Leases
	(In thousands)
Real estate mortgage	$	40,509	$	19,220	$	59,729	$	27,973	$	34,303	$	62,276
Real estate construction	3,628		9,064		12,692		3,219		4,293		7,512
Commercial	41,276		5,904		47,180		15,188		2,744		17,932
Consumer	3,535		120		3,655		394		308		702
Total	$	88,948	$	34,308	$	123,256	$	46,774	$	41,648	$	88,422

The following tables present information regarding our Non‑PCI impaired loans and leases by portfolio segment and class for the dates indicated:

	September 30, 2014						December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,957	$	1,956	$	92	$	5,717	$	6,215	$	198
SBA	—		—		—		1,642		1,643		230
Other	13,302		13,389		1,476		15,937		16,571		1,760
Real estate construction:
Residential	767		767		72		778		778		168
Commercial	1,162		4,945		47		1,250		1,250		1
Commercial:
Collateralized	5,404		5,789		3,536		4,377		4,692		4,270
Unsecured	620		631		416		801		829		375
Asset-based	262		262		262		1,070		1,070		180
Cash flow	15,958		18,014		2,666		—		—		—
Equipment finance	1,864		1,864		774		—		—		—
SBA	—		—		—		1,136		1,136		178
Consumer	146		145		34		424		471		240
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,451	$	7,593	$	—	$	3,013	$	3,385	$	—
SBA	7,483		10,712		—		2,602		3,646		—
Other	30,536		41,596		—		33,365		46,062		—
Real estate construction:
Residential	542		550		—		—		—		—
Commercial	10,221		10,995		—		5,484		9,923		—
Commercial:
Collateralized	3,820		10,932		—		6,700		9,924		—
Unsecured	180		278		—		179		247		—
Asset-based	4,741		5,584		—		—		—		—
Cash flow	—		505		—		—		—		—
Equipment finance	11,021		14,809		—		632		632		—
SBA	3,310		4,984		—		3,037		4,945		—
Consumer	3,509		3,681		—		278		394		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	59,729	$	75,246	$	1,568	$	62,276	$	77,522	$	2,188
Real estate construction	12,692		17,257		119		7,512		11,951		169
Commercial	47,180		63,652		7,654		17,932		23,475		5,003
Consumer	3,655		3,826		34		702		865		240
Total	$	123,256	$	159,981	$	9,375	$	88,422	$	113,813	$	7,600

	Three Months Ended September 30,
	2014				2013
	Weighted Average Balance(1)		Interest Income Recognized		Weighted Average Balance(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,963	$	20	$	8,779	$	226
SBA	—		—		1,659		23
Other	13,401		99		51,327		513
Real estate construction:
Residential	768		4		393		—
Commercial	1,176		6		8,540		87
Commercial:
Collateralized	5,815		43		3,804		10
Unsecured	624		6		2,062		8
Asset-based	265		—		223		5
Cash flow	15,695		—		—		—
Equipment finance	1,889		—		—		—
SBA	—		—		1,094		12
Consumer	148		2		436		3
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,485	$	—	$	—	$	—
SBA	7,746		38		2,935		—
Other	31,313		87		25,041		133
Real estate construction:
Residential	542		—		441		—
Commercial	10,236		74		4,568		(59		)
Commercial:
Collateralized	5,252		21		4,266		—
Unsecured	202		—		179		—
Asset-based	—		—		—		—
Cash flow	—		—		—		—
Equipment finance	9,818		671		244		—
SBA	3,756		36		2,872		5
Consumer	3,745		2		173		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	60,908	$	244	$	89,741	$	895
Real estate construction	12,722		84		13,942		28
Commercial	43,316		777		14,744		40
Consumer	3,893		4		609		3
Total	$	120,839	$	1,109	$	119,036	$	966

_________________________

(1) For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2014 and 2013, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

	Nine Months Ended September 30,
	2014				2013
	Weighted Average Balance(1)		Interest Income Recognized		Weighted Average Balance(1)		Interest Income Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Hospitality	$	1,971	$	60	$	8,770	$	109
SBA	—		—		1,649		23
Other	13,218		376		47,411		481
Real estate construction:
Residential	770		12		391		—
Commercial	539		13		8,541		88
Commercial:
Collateralized	5,167		92		4,467		7
Unsecured	664		18		787		8
Asset-based	268		—		2,377		—
Cash flow	5,232		—		—		—
Equipment finance	1,073		—		—		—
SBA	—		—		1,278		12
Consumer	1,890		11		429		3
With No Related Allowance Recorded:
Real estate mortgage:
Hospitality	$	6,529	$	—	$	—	$	—
SBA	5,378		38		2,791		—
Other	26,235		240		25,540		410
Real estate construction:
Residential	406		—		435		—
Commercial	8,888		171		5,511		98
Commercial:
Collateralized	2,772		52		8,989		15
Unsecured	264		—		217		—
Asset-based	1,560		—		—		—
Cash flow	58		—		—		—
Equipment finance	7,436		671		244		—
SBA	2,189		36		2,846		5
Consumer	1,417		2		248		—
Total Non-PCI Loans and Leases With and Without an Allowance Recorded:
Real estate mortgage	$	53,331	$	714	$	86,161	$	1,023
Real estate construction	10,603		196		14,878		186
Commercial	26,683		869		21,205		47
Consumer	3,307		13		677		3
Total	$	93,924	$	1,792	$	122,921	$	1,259

_________________________

(1) For the loans and leases (excluding PCI loans) reported as impaired at September 30, 2014 and 2013, amounts were calculated based on the period of time such loans and leases were impaired during the reported period.

Troubled debt restructurings are a result of rate reductions, term extensions, fee concessions, and debt forgiveness or a combination thereof. The following tables present new troubled debt restructurings of Non-PCI loans for the periods indicated:

	Three Months Ended September 30, 2014					Three Months Ended September 30, 2013
Troubled Debt Restructurings:	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Real estate mortgage:
SBA	1	$	64	$	64	—	$	—	$	—
Other	7	10,496		10,496		—	—		—
Commercial:
Collateralized	9	1,507		1,507		8	4,824		4,824
Unsecured	3	173		173		2	499		499
Asset-based	—	—		—		1	17		17
SBA	2	1,313		1,313		—	—		—
Consumer	3	183		183		—	—		—
Total	25	$	13,736	$	13,736	11	$	5,340	$	5,340

	Nine Months Ended September 30, 2014					Nine Months Ended September 30, 2013
Troubled Debt Restructurings:	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars In thousands)
Real estate mortgage:
SBA	1	$	64	$	64	—	$	—	$	—
Other	15	14,352		14,352		12	16,215		16,215
Real estate construction - Commercial	2	4,920		4,920		—	—		—
Commercial:
Collateralized	15	4,853		4,853		7	4,553		4,553
Unsecured	5	211		211		5	502		502
Asset-based	—	—		—		1	2,032		2,032
SBA	2	1,313		1,313		4	137		137
Consumer	4	307		307		—	—		—
Total	44	$	26,020	$	26,020	29	$	23,439	$	23,439

The following tables present troubled debt restructurings that subsequently defaulted for the periods indicated:

	Three Months Ended September 30,
	2014				2013
Troubled Debt Restructurings	Number of	Recorded			Number of	Recorded
That Subsequently Defaulted:	Loans	Investment(1)			Loans	Investment(1)
	(Dollars in thousands)
Real estate construction - Commercial	1	$	1,190		—	$	—
Commercial - Unsecured	2	37			2	70
Total	3	$	1,227	(2)	2	$	70	(3)

_________________________

(1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.

(2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million.

(3) Represents the balance at September 30, 2013 and there were no charge-offs.

	Nine Months Ended September 30,
	2014				2013
Troubled Debt Restructurings	Number of	Recorded			Number of	Recorded
That Subsequently Defaulted:	Loans	Investment(1)			Loans	Investment(1)
	(Dollars in thousands)
Real estate mortgage - Other	—	$	—		1	$	1,327
Real estate construction - Commercial	1	1,190			—	—
Commercial:
Collateralized	1	22			1	427
Unsecured	2	37			2	70
Consumer	1	109			—	—
Total	5	$	1,358	(2)	4	$	1,824	(3)

_________________________

(1) The population of defaulted restructured loans for the period indicated includes only those loans restructured during the preceding 12-month period. The table excludes defaulted troubled restructurings in those classes for which the recorded investment was zero at the end of the period.

(2) Represents the balance at September 30, 2014, and is net of charge-offs of $0.2 million

(3) Represents the balance at September 30, 2013, and is net of charge-offs of $1.1 million

Purchased Credit Impaired (PCI) Loans

The following table reflects the PCI loans by portfolio segment as of the dates indicated:

	September 30, 2014			December 31, 2013
	(In thousands)
Real estate mortgage	$	356,151		$	412,791
Real estate construction	8,506			12,015
Commercial	28,532			3,021
Consumer	402			424
Total gross PCI loans	393,591			428,251
Less:
Discount	(42,212		)	(45,455		)
Allowance for loan losses	(18,815		)	(21,793		)
Total net PCI loans	$	332,564		$	361,003

The following table summarizes the changes in the carrying amount of PCI loans and accretable yield on those loans for the period indicated:

	Carrying Amount			Accretable Yield
	(In thousands)
Balance, December 31, 2013	$	361,003		$	(139,568	)
Addition	79,234			(13,728		)
Accretion	45,919			45,919
Payments received	(151,910		)	—
Decrease in expected cash flows, net	—			(12,435		)
Provision for credit losses	(1,682		)	—
Balance, September 30, 2014	$	332,564		$	(119,812	)

The following table presents the credit risk rating categories for PCI loans by portfolio segment as of the dates indicated. Nonclassified loans are those with a credit risk rating of either pass or special mention, while classified loans are those with a credit risk rating of either substandard or doubtful.

	September 30, 2014						December 31, 2013
	Nonclassified		Classified		Total		Nonclassified		Classified		Total
	(In thousands)
Real estate mortgage	$	180,763	$	134,108	$	314,871	$	216,092	$	155,042	$	371,134
Real estate construction	1,921		6,282		8,203		4,399		6,028		10,427
Commercial	232		27,730		27,962		569		405		974
Consumer	—		343		343		—		261		261
Total PCI loans	$	182,916	$	168,463	$	351,379	$	221,060	$	161,736	$	382,796

In addition to our internal risk rating process, our federal and state banking regulators, as an integral part of their examination process, periodically review the Company’s loan risk rating classifications. Our regulators may require the Company to recognize rating downgrades based on their judgments related to information available to them at the time of their examinations.

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Foreclosed Assets (Notes)

9 Months Ended

Sep. 30, 2014

Other Real Estate Owned Net Covered and NonCovered Including Foreclosed Assets [Abstract]

Other Real Estate Owned and Foreclosed Assets

Note 7.  Foreclosed Assets

The following tables summarize foreclosed assets at the dates indicated:

Property Type:	September 30, 2014		December 31, 2013
	(In thousands)
Commercial real estate	$	2,559	$	15,753
Construction and land development	27,731		35,063
Multi‑family	835		835
Single family residence	13		186
Total other real estate owned, net	31,138		51,837
Other foreclosed assets	9,386		4,054
Total foreclosed assets	$	40,524	$	55,891

The following table presents a rollforward of foreclosed assets, net of the valuation allowance, for the periods indicated:

	Foreclosed Assets
	(In thousands)
Balance, December 31, 2013	$	55,891
Addition from the CapitalSource Inc. merger	6,382
Foreclosures	667
Provision for losses	(5,065		)
Reductions related to sales	(17,351		)
Balance, September 30, 2014	$	40,524

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Borrowings

9 Months Ended

Sep. 30, 2014

Borrowings Subordinated Debentures And Brokered Deposits [Abstract]

Borrowings, Subordinated Debentures and Brokered Deposit

Note 9. Borrowings, Subordinated Debentures and Brokered Deposits

Borrowings

The following table summarizes our borrowings as of the dates indicated:

	September 30, 2014				December 31, 2013
	Amount		Rate		Amount		Rate
	(Dollars in thousands)
Non‑recourse debt	$	3,672	6.26	%	$	7,126	6.30	%
FHLB overnight advances	360,000		0.07	%	106,600		0.06	%
Total borrowings	$	363,672			$	113,726

The non‑recourse debt represents the payment stream of certain equipment leases sold to third parties. The debt is secured by the equipment in the leases and all interest rates are fixed. As of September 30, 2014, this debt had a weighted average remaining maturity of 2.2 years.

The Bank has established secured and unsecured lines of credit. We may borrow funds from time to time on a term or overnight basis from the FHLB SF, the Federal Reserve Bank of San Francisco (“FRBSF”), or other financial institutions.

FHLB SF Secured Lines of Credit. The borrowing arrangement with the FHLB SF is based on an FHLB program collateralized by a blanket lien on certain qualifying loans in our loan portfolio which were not pledged to the FRBSF. As of September 30, 2014, our borrowing capacity under the FHLB SF secured borrowing lines was $2.4 billion. As of September 30, 2014 and December 31, 2013, the balances outstanding were $360.0 million and $106.6 million, respectively.

FRBSF Secured Line of Credit. The Bank has a secured line of credit with the FRBSF. As of September 30, 2014, the Bank had secured borrowing capacity of $1.0 billion collateralized by liens covering $1.4 billion of certain qualifying loans. As of September 30, 2014 and December 31, 2013, there were no balances outstanding.

Federal Funds Arrangements with Commercial Banks. As of September 30, 2014, the Bank had unsecured lines of credit of $80.0 million with correspondent banks for the purchase of overnight funds, subject to availability of funds. These lines are renewable annually and have no unused commitment fees. As of September 30, 2014 and December 31, 2013, there were no balances outstanding.

The following table summarizes the terms of each issuance of subordinated debentures outstanding as of the dates indicated:

	September 30, 2014					December 31, 2013
											Date	Maturity	Rate Index
Series	Amount			Rate (1)		Amount			Rate (2)		Issued	Date	(Quarterly Reset)
	(Dollars in thousands)
Trust V	$	10,310		3.33	%	$	10,310		3.34	%	8/15/2003	9/17/2033	3 month LIBOR + 3.10
Trust VI	10,310			3.28	%	10,310			3.29	%	9/3/2003	9/15/2033	3 month LIBOR + 3.05
Trust CII	5,155			3.18	%	5,155			3.19	%	9/17/2003	9/17/2033	3 month LIBOR + 2.95
Trust VII	61,856			2.99	%	61,856			2.99	%	2/5/2004	4/23/2034	3 month LIBOR + 2.75
Trust CIII	20,619			1.92	%	20,619			1.93	%	8/15/2005	9/15/2035	3 month LIBOR + 1.69
Trust FCCI	16,495			1.83	%	16,495			1.84	%	1/25/2007	3/15/2037	3 month LIBOR + 1.60
Trust FCBI	10,310			1.78	%	10,310			1.79	%	9/30/2005	12/15/2035	3 month LIBOR + 1.55
Trust CS 2005-1 (3)	82,475			2.18	%	—			—		11/21/2005	12/15/2035	3 month LIBOR + 1.95
Trust CS 2005-2 (3)	128,866			2.19	%	—			—		12/14/2005	1/30/2036	3 month LIBOR + 1.95
Trust CS 2006-1 (3)	51,545			2.19	%	—			—		2/22/2006	4/30/2036	3 month LIBOR + 1.95
Trust CS 2006-2 (3)	51,550			2.19	%	—			—		9/27/2006	10/30/2036	3 month LIBOR + 1.95
Trust CS 2006-3 (3)	32,551			1.29	%	—			—		9/29/2006	10/30/2036	3 month EURIBOR + 2.05
Trust CS 2006-4 (3)	16,470			2.19	%	—			—		12/5/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2006-5 (3)	6,650			2.19	%	—			—		12/19/2006	1/30/2037	3 month LIBOR + 1.95
Trust CS 2007-2 (3)	39,177			2.19	%	—			—		6/13/2007	7/30/2037	3 month LIBOR + 1.95
Gross subordinated debentures	544,339					135,055
Unamortized discount (4)	(110,794		)			(2,410		)
Net subordinated debentures	$	433,545				$	132,645

___________________

(1) As of September 30, 2014.

(2) As of January 28, 2014.

(3) Acquired in the CapitalSource Inc. merger.

(4) Amount represents the fair value adjustment on trust preferred securities assumed in the CapitalSource Inc. and FCAL acquisitions.

Interest payments made by the Company on subordinated debentures are considered dividend payments under the Board of Governors of the Federal Reserve System (“FRB”) regulations. Bank holding companies, such as PacWest, are required to notify the FRB prior to declaring and paying a dividend to stockholders during any period in which quarterly and/or cumulative twelve‑month net earnings are insufficient to fund the dividend amount, among other requirements.

Brokered Deposits

Brokered time deposits totaled $288.2 million and $49.4 million at September 30, 2014 and December 31, 2013, respectively. During the third quarter, the Company added $200.0 million of brokered time deposits. Brokered time deposits under the Certificate of Deposit Account Registry Service Program ("CDARS Program") totaled $48.2 million and $49.4 million at September 30, 2014 and December 31, 2013, respectively. The CDARS Program represents deposits that are participated with other FDIC‑insured financial institutions as a means to provide FDIC deposit insurance coverage for the full amount of our customers’ deposits.

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FDIC Loss Sharing Asset FDIC Loss Sharing Asset (Details1) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Schedule of FDIC Loss Sharing Asset [Line Items]
FDIC loss sharing asset	$ 22,977	$ 45,524
FDIC Indemnification True Up	6,924
NonSingle Family Covered Assets	279,310
Single Family Covered Assets	107,969
Affinity Bank [Member]
Schedule of FDIC Loss Sharing Asset [Line Items]
FDIC loss sharing asset	(819)
NonSingle Family Covered Assets	142,454
Single Family Covered Assets	12,536
Los Padres Bank [Member]
Schedule of FDIC Loss Sharing Asset [Line Items]
FDIC loss sharing asset	13,283
NonSingle Family Covered Assets	92,440
Single Family Covered Assets	64,131
Western Commercial Bank [Member]
Schedule of FDIC Loss Sharing Asset [Line Items]
FDIC loss sharing asset	1,432
FDIC Indemnification True Up	1,574
NonSingle Family Covered Assets	13,746
San Luis Trust Bank [Member]
Schedule of FDIC Loss Sharing Asset [Line Items]
FDIC loss sharing asset	9,081
FDIC Indemnification True Up	5,350
NonSingle Family Covered Assets	30,670
Single Family Covered Assets	$ 31,302

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Borrowings (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Borrowings	$ 363,672	$ 113,726
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Non-Recourse Debt	3,672	7,126
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	6.26%	0.00%
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	0.07%	0.00%
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	360,000
Federal Home Loan Bank of San Francisco [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 0	$ 106,600

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FDIC Loss Sharing Asset FDIC Loss Sharing Asset (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
FDIC Loss Sharing Asset [Abstract]
FDIC loss sharing asset	$ 22,977	$ 45,524
FDIC Indemnification Asset, Acquisitions	(4,654)
FDIC Indemnification Asset, Cash Payments Received	3,363
FDIC Indemnification Asset, Accretion of Discount	$ (21,256)

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Net Income Per Share

The computations of basic and diluted net earnings per share for the periods indicated were as follows:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(Dollars in thousands, except per share data)
Basic earnings per share:
Net earnings from continuing operations	$	62,276		$	11,230		$	24,140		$	99,411		$	42,030
Less: earnings allocated to unvested restricted stock(1)	(685		)	(290		)	(786		)	(1,147		)	(1,137		)
Net earnings from continuing operations allocated to common shares	61,591			10,940			23,354			98,264			40,893
Net (loss) earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares and unvested restricted stock outstanding	103,029			98,817			46,091			82,758			41,306
Less: weighted-average unvested restricted stock outstanding	(1,117		)	(678		)	(1,795		)	(981		)	(1,663		)
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Basic earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net loss from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03
Diluted earnings per share:
Net earnings from continuing operations allocated to common shares	$	61,591		$	10,940		$	23,354		$	98,264		$	40,893
Net (loss) earnings from discontinued operations allocated to common shares	—			(675		)	23			(1,487		)	(24		)
Net earnings allocated to common shares	$	61,591		$	10,265		$	23,377		$	96,777		$	40,869
Weighted-average basic shares outstanding	101,912			98,139			44,296			81,777			39,643
Diluted earnings per share:
Net earnings from continuing operations	$	0.60		$	0.11		$	0.53		$	1.20		$	1.03
Net loss from discontinued operations	—			(0.01		)	—			(0.02		)	—
Net earnings	$	0.60		$	0.10		$	0.53		$	1.18		$	1.03

________________________

(1) Represents cash dividends paid to holders of unvested restricted stock, net of estimated forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

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Loans and Credit Quality (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	$ (81,899)	$ 83,786	$ (81,899)	$ 83,786
Allowance for loan and lease losses	81,899	(83,786)	81,899	(83,786)	(82,149)	82,034	(90,643)	(91,968)
Allowance for Loan and Lease Losses, Write-offs	7,956	2,795	14,940	8,582
Allowance for Loan and Lease Loss, Recovery of Bad Debts	1,725	675	3,707	4,302
Provision for Loan and Lease Losses	(5,981)	(4,737)	(11,098)	3,902
Loans and Leases Receivable, Net of Deferred Income	11,574,885	4,383,393	11,574,885	4,383,393		4,312,352
Loans and Leases Receivable Net Of Deferred Income Covered And Noncovered	11,574,885	4,383,393	11,574,885	4,383,393
Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	27,003	29,606	27,003	29,606
Financing Receivable, Individually Evaluated for Impairment	1,568		1,568
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	5,917	3,545	5,917	3,545
Financing Receivable, Individually Evaluated for Impairment	119		119
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	29,007	25,461	29,007	25,461
Financing Receivable, Individually Evaluated for Impairment	7,654		7,654
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	1,157	1,939	1,157	1,939
Financing Receivable, Individually Evaluated for Impairment	34		34
Loans and Leases Receivable, Net of Deferred Income	108,408		108,408
Purchased Credit Impaired Loans and Leases [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance, Covered	18,815	23,235	18,815	23,235	16,626	21,793	27,397	26,069
Allowance for Loan and Lease Losses, Write-offs	108	0	4,712	0
Allowance for Loan and Lease Loss, Recovery of Bad Debts	0	5	51	38
Provision for Loan and Lease Losses	(2,297)	(4,167)	1,683	2,872
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality	18,815	23,235	18,815	23,235
Loans and Leases Receivable, Net of Deferred Income	351,379	432,757	351,379	432,757		382,796
Financing Receivable, Acquired with Deteriorated Credit Quality	351,379	432,757	351,379	432,757
NonCovered [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	63,084	60,551	63,084	60,551	65,523	60,241	63,246	65,899
Allowance for Loan and Lease Losses, Write-offs	(7,848)	2,795	(10,228)	8,582
Allowance for Loan and Lease Loss, Recovery of Bad Debts	1,725	670	3,656	4,264
Provision for Loan and Lease Losses	(3,684)	570	(9,415)	(1,030)
Financing Receivable, Individually Evaluated for Impairment	9,375	9,715	9,375	9,715
Financing Receivable, Collectively Evaluated for Impairment	53,709	50,836	53,709	50,836
Loans and Leases Receivable, Net of Deferred Income	11,223,506	3,950,636	11,223,506	3,950,636		3,929,556
Financing Receivable, Individually Evaluated for Impairment	123,256	131,082	123,256	131,082
Financing Receivable, Collectively Evaluated for Impairment	11,100,250	3,819,554	11,100,250	3,819,554
NonCovered [Member] | Mortgage Loans on Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	27,003	29,606	27,003	29,606	22,276	26,078	31,804	38,700
Allowance for Loan and Lease Losses, Write-offs	395	281	976	3,840
Allowance for Loan and Lease Loss, Recovery of Bad Debts	1,312	152	1,949	1,665
Provision for Loan and Lease Losses	3,810	(2,069)	(48)	(6,919)
Financing Receivable, Individually Evaluated for Impairment		3,225		3,225
Financing Receivable, Collectively Evaluated for Impairment	25,435	26,381	25,435	26,381
Loans and Leases Receivable, Net of Deferred Income	5,398,244	2,548,932	5,398,244	2,548,932		2,422,107
Financing Receivable, Individually Evaluated for Impairment	59,729	90,329	59,729	90,329
Financing Receivable, Collectively Evaluated for Impairment	5,338,515	2,458,603	5,338,515	2,458,603
NonCovered [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	5,917	3,545	5,917	3,545	4,302	4,298	3,432	3,221
Allowance for Loan and Lease Losses, Write-offs	0	0	0	0
Allowance for Loan and Lease Loss, Recovery of Bad Debts	24	179	112	514
Provision for Loan and Lease Losses	(1,591)	66	1,507	(190)
Financing Receivable, Individually Evaluated for Impairment		103		103
Financing Receivable, Collectively Evaluated for Impairment	5,798	3,442	5,798	3,442
Loans and Leases Receivable, Net of Deferred Income	283,067	188,872	283,067	188,872		207,779
Financing Receivable, Individually Evaluated for Impairment	12,692	14,878	12,692	14,878
Financing Receivable, Collectively Evaluated for Impairment	270,375	173,994	270,375	173,994
NonCovered [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	29,007	25,461	29,007	25,461	35,530	26,921	26,343	22,252
Allowance for Loan and Lease Losses, Write-offs	(7,282)	2,439	(9,049)	4,631
Allowance for Loan and Lease Loss, Recovery of Bad Debts	337	324	1,301	2,028
Provision for Loan and Lease Losses	(422)	(1,233)	(9,834)	(5,812)
Financing Receivable, Individually Evaluated for Impairment		6,147		6,147
Financing Receivable, Collectively Evaluated for Impairment	21,353	19,314	21,353	19,314
Loans and Leases Receivable, Net of Deferred Income	5,433,787	1,178,923	5,433,787	1,178,923		1,244,785
Financing Receivable, Individually Evaluated for Impairment	47,180	25,083	47,180	25,083
Financing Receivable, Collectively Evaluated for Impairment	5,386,607	1,153,840	5,386,607	1,153,840
NonCovered [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Allowance	1,157	1,939	1,157	1,939	3,415	2,944	1,667	1,726
Allowance for Loan and Lease Losses, Write-offs	171	75	203	111
Allowance for Loan and Lease Loss, Recovery of Bad Debts	52	15	294	57
Provision for Loan and Lease Losses	(2,139)	(332)	1,878	267
Financing Receivable, Individually Evaluated for Impairment		240		240
Financing Receivable, Collectively Evaluated for Impairment	1,123	1,699	1,123	1,699
Loans and Leases Receivable, Net of Deferred Income		33,909		33,909		54,885
Financing Receivable, Individually Evaluated for Impairment	3,655	792	3,655	792
Financing Receivable, Collectively Evaluated for Impairment	$ 104,753	$ 33,117	$ 104,753	$ 33,117

XML

Business Segment

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Data

Note 14. Business Segments

The Company’s reportable segments consist of “Community Banking,” “National Lending,” and “Other.”

As a result of the CapitalSource Inc. merger, Pacific Western Bank established the CapitalSource Division, which we also refer to as the National Lending segment. The CapitalSource Division, or National Lending segment, includes the lending operations gained through the CapitalSource Inc. merger, Pacific Western Equipment Finance, and the CapitalSource Business Finance Group (formerly BFI Business Finance and First Community Financial). We reorganized our asset-based lending and leasing operations when we established the CapitalSource Division combining BFI Business Finance and First Community Financial into the Capital Source Business Finance Group, selling Celtic Capital Corporation in July 2014, and having Pacific Western Equipment Finance and the Capital Source Business Finance Group become part of the CapitalSource Division. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses, including senior secured real estate loans, equipment loans and leases, asset-based loans, lender finance loans and cash flow loans secured by the enterprise value of the borrowing entity. The CapitalSource Division’s loan and lease origination efforts are conducted through offices located in Chevy Chase, Maryland; Los Angeles and San Jose, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; New York, New York; and Midvale, Utah.

The Community Banking and National Lending segments include all of the operations of Pacific Western Bank. The Community Banking segment includes the operations of Pacific Western Bank, excluding the CapitalSource Division, and includes lending and deposit gathering activities conducted primarily through its California-based branch offices and the Bank’s treasury management function and corporate overhead. The Other segment consists of holding company operations which result in expenses principally for compensation, facilities, professional services, interest on subordinated debentures, and the non-bank subsidiary operations including interest income from a loan portfolio and related loan servicing expense.

The accounting policies of the reported segments are the same as those of the Company described in Note 1, “Nature of Operations and Summary of Significant Accounting Policies,” of our Form 10‑K. Transactions between segments consist primarily of borrowed funds and expense allocations for interest, deposit gathering, corporate overhead and credit loss provisions. Intersegment interest expense is allocated from the Community Banking segment to the National Lending segment based upon National Lending’s average interest-earning assets and operating leases, net of a capital allocation, and the Bank’s total cost of deposits. The Community Banking segment further allocates to the National Lending segment noninterest expense for deposit gathering and maintenance costs and the Bank’s corporate overhead. The provision for credit losses is allocated based on actual charge‑offs for the period as well as net portfolio growth and credit quality trends. All costs associated with investing the Bank’s excess liquidity and acquisition, integration, and reorganization costs are housed in the Community Banking segment. The lending and loan servicing activities are housed in our respective segments. Noninterest income and noninterest expense directly attributable to a segment are assigned to it.

The following tables present information regarding our business segments as of and for the periods indicated:

	September 30, 2014
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,482,125		$	8,064,868		$	27,892		$	11,574,885
Allowance for loan and lease losses	(56,712		)	(25,187		)	—			(81,899		)
Total loans and leases, net	$	3,425,413		$	8,039,681		$	27,892		$	11,492,986
Goodwill	$	327,728		$	1,394,401		$	—		$	1,722,129
Core deposit and customer relationship intangibles, net	17,814			1,009			—			18,823
Total assets	6,492,869			9,182,617			262,859			15,938,345
Total deposits(1)	11,826,681			—			(303,244		)	11,523,437

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	September 30, 2013
	Community			National						Consolidated
Balance Sheet Data:	Banking			Lending			Other			Company
	(In thousands)
Loans and leases, net of unearned income	$	3,912,885		$	470,508		$	—		$	4,383,393
Allowance for loan and lease losses	(76,496		)	(7,290		)	—			(83,786		)
Total loans and leases, net	$	3,836,389		$	463,218		$	—		$	4,299,607
Goodwill	$	190,184		$	25,678		$	—		$	215,862
Core deposit and customer relationship intangibles, net	16,604			2,074			—			18,678
Total assets	6,100,587			507,339			8,929			6,616,855
Total deposits(1)	5,467,568			—			(34,424		)	5,433,144

________________________

(1) The negative balance for total deposits in the “Other” segment represents the elimination of holding company cash held in deposit accounts at the Bank.

	Three Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	67,132		$	134,624		$	600		$	202,356
Interest expense	(8,851		)	(45		)	(4,614		)	(13,510		)
Intersegment interest income (expense)	5,250			(5,250		)	—			—
Net interest income (expense)	63,531			129,329			(4,014		)	188,846
Negative provision (provision) for credit losses	6,314			(11,364		)	—			(5,050		)
Gain on securities	—			—			—			—
FDIC loss sharing expense	(7,415		)	—			—			(7,415		)
Other noninterest income	7,566			9,953			6,210			23,729
Total noninterest income	151			9,953			6,210			16,314
Foreclosed assets (expense) income, net	(4,627		)	(322		)	122			(4,827		)
Intangible asset amortization	(1,517		)	(91		)	—			(1,608		)
Acquisition, integration and reorganization costs	(3,953		)	(1,240		)	—			(5,193		)
Other noninterest expense	(53,784		)	(24,835		)	(5,382		)	(84,001		)
Total noninterest expense	(63,881		)	(26,488		)	(5,260		)	(95,629		)
Intersegment noninterest income (expense)	26,411			(26,411		)	—			—
Total noninterest expense - adjusted	(37,470		)	(52,899		)	(5,260		)	(95,629		)
Earnings (loss) from continuing operations before taxes	32,526			75,019			(3,064		)	104,481
Income tax (expense) benefit	(13,870		)	(30,113		)	1,778			(42,205		)
Net earnings (loss) from continuing operations	18,656			44,906			(1,286		)	62,276
Loss from discontinued operations before taxes	(8		)	—			—			(8		)
Income tax benefit	3			—			—			3
Net loss from discontinued operations	(5		)	—			—			(5		)
Net earnings (loss)	$	18,651		$	44,906		$	(1,286	)	$	62,271

	Three Months Ended June 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	69,977		$	132,742		$	1,644		$	204,363
Interest expense	(7,450		)	(62		)	(4,318		)	(11,830		)
Intersegment interest income (expense)	4,071			(4,071		)	—			—
Net interest income	66,598			128,609			(2,674		)	192,533
Negative provision (provision) for credit losses	4,418			(9,448		)	—			(5,030		)
Gain on securities	89			—			—			89
FDIC loss sharing expense	(8,525		)	—			—			(8,525		)
Other noninterest income	3,681			12,487			747			16,915
Total noninterest income	(4,755		)	12,487			747			8,479
Foreclosed assets (expense) income, net	(633		)	38			98			(497		)
Intangible asset amortization	(1,530		)	(147		)	—			(1,677		)
Acquisition, integration and reorganization costs	(77,713		)	(7,474		)	(1,055		)	(86,242		)
Other noninterest expense	(51,507		)	(24,484		)	(5,499		)	(81,490		)
Total noninterest expense	(131,383		)	(32,067		)	(6,456		)	(169,906		)
Intersegment noninterest income (expense)	23,533			(23,533		)	—			—
Total noninterest expense - adjusted	(107,850		)	(55,600		)	(6,456		)	(169,906		)
(Loss) earnings from continuing operations before taxes	(41,589		)	76,048			(8,383		)	26,076
Income tax benefit (expense)	12,081			(30,259		)	3,332			(14,846		)
Net (loss) earnings from continuing operations	(29,508		)	45,789			(5,051		)	11,230
Loss from discontinued operations before taxes	(1,151		)	—			—			(1,151		)
Income tax benefit	476			—			—			476
Net loss from discontinued operations	(675		)	—			—			(675		)
Net (loss) earnings	$	(30,183	)	$	45,789		$	(5,051	)	$	10,555

	Three Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	72,873		$	12,285		$	—		$	85,158
Interest expense	(1,692		)	(108		)	(1,069		)	(2,869		)
Intersegment interest income (expense)	353			(353		)	—			—
Net interest income	71,534			11,824			(1,069		)	82,289
Negative provision (provision) for credit losses	5,782			(1,615		)	—			4,167
FDIC loss sharing expense	(7,032		)	—			—			(7,032		)
Other noninterest income	5,466			1,443			5,250			12,159
Total noninterest income	(1,566		)	1,443			5,250			5,127
Foreclosed assets income, net	420			—			—			420
Intangible asset amortization	(1,354		)	(158		)	—			(1,512		)
Acquisition, integration and reorganization costs	(5,190		)	—			(260		)	(5,450		)
Other noninterest expense	(42,435		)	(5,822		)	(1,401		)	(49,658		)
Total noninterest expense	(48,559		)	(5,980		)	(1,661		)	(56,200		)
Earnings (loss) from continuing operations before taxes	27,191			5,672			2,520			35,383
Income tax (expense) benefit	(9,996		)	(2,378		)	1,131			(11,243		)
Net earnings (loss) from continuing operations	17,195			3,294			3,651			24,140
Earnings from discontinued operations before taxes	39			—			—			39
Income tax expense	(16		)	—			—			(16		)
Net earnings from discontinued operations	23			—			—			23
Net earnings	$	17,218		$	3,294		$	3,651		$	24,163

	Nine Months Ended September 30, 2014
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	214,704		$	278,131		$	2,244		$	495,079
Interest expense	(17,528		)	(184		)	(9,973		)	(27,685		)
Intersegment interest income (expense)	9,543			(9,543		)	—			—
Net interest income (expense)	206,719			268,404			(7,729		)	467,394
Negative provision (provision) for credit losses	11,558			(20,994		)	—			(9,436		)
Gain on securities	4,841			—			—			4,841
FDIC loss sharing expense	(27,370		)	—			—			(27,370		)
Other noninterest income	18,144			26,885			6,984			52,013
Total noninterest income	(4,385		)	26,885			6,984			29,484
Foreclosed assets (expense) income, net	(3,399		)	(284		)	220			(3,463		)
Intangible asset amortization	(4,238		)	(411		)	—			(4,649		)
Acquisition, integration and reorganization costs	(83,866		)	(8,714		)	(1,055		)	(93,635		)
Other noninterest expense	(146,281		)	(55,892		)	(12,484		)	(214,657		)
Total noninterest expense	(237,784		)	(65,301		)	(13,319		)	(316,404		)
Intersegment noninterest income (expense)	49,944			(49,944		)	—			—
Total noninterest expense - adjusted	(187,840		)	(115,245		)	(13,319		)	(316,404		)
Earnings from continuing operations before taxes	26,052			159,050			(14,064		)	171,038
Income tax (expense) benefit	(14,123		)	(63,703		)	6,199			(71,627		)
Net earnings (loss) from continuing operations	11,929			95,347			(7,865		)	99,411
Loss from discontinued operations before taxes	(2,572		)	—			—			(2,572		)
Income tax benefit	1,067			—			—			1,067
Net loss from discontinued operations	(1,505		)	—			—			(1,505		)
Net earnings (loss)	$	10,424		$	95,347		$	(7,865	)	$	97,906

	Nine Months Ended September 30, 2013
	Community			National						Consolidated
Results of Operations:	Banking			Lending			Other			Company
	(In thousands)
Interest income	$	189,101		$	36,957		$	—		$	226,058
Interest expense	(6,422		)	(447		)	(2,734		)	(9,603		)
Intersegment interest income (expense)	1,284			(1,284		)	—			—
Net interest income	183,963			35,226			(2,734		)	216,455
Negative provision (provision) for credit losses	6,053			(3,181		)	—			2,872
Gain on securities	5,631			—			—			5,631
FDIC loss sharing expense	(15,579		)	—			—			(15,579		)
Other noninterest income	10,240			2,579			5,299			18,118
Total noninterest income	292			2,579			5,299			8,170
Foreclosed assets income, net	934			—			—			934
Intangible asset amortization	(3,474		)	(498		)	—			(3,972		)
Acquisition, integration and reorganization costs	(23,879		)	—			(260		)	(24,139		)
Other noninterest expense	(115,352		)	(17,855		)	(4,215		)	(137,422		)
Total noninterest expense	(141,771		)	(18,353		)	(4,475		)	(164,599		)
Earnings (loss) from continuing operations before taxes	48,537			16,271			(1,910		)	62,898
Income tax (expense) benefit	(17,038		)	(6,814		)	2,984			(20,868		)
Net earnings from continuing operations	31,499			9,457			1,074			42,030
Loss from discontinued operations before taxes	(42		)	—			—			(42		)
Income tax benefit	18			—			—			18
Net loss from discontinued operations	(24		)	—			—			(24		)
Net earnings	$	31,475		$	9,457		$	1,074		$	42,006

XML

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Disclosure

The following table presents the changes in the carrying amount of goodwill for the period indicated:    

	Goodwill
	(In thousands)
Balance, December 31, 2013	$	208,743
Addition from the CapitalSource Inc. merger	1,520,031
Write-off of goodwill	(6,645		)
Balance, September 30, 2014	$	1,722,129

Intangible Assets Disclosure

The following table presents the changes in CDI and CRI and the related accumulated amortization for the periods indicated:

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2014			2014			2013			2014			2013
	(In thousands)
Gross Amount of CDI and CRI:
Balance, beginning of period	$	53,090		$	48,963		$	53,339		$	48,963		$	45,412
Additions	—			6,720			—			6,720			7,927
Fully amortized portion	—			(1,293		)	(4,376		)	(1,293		)	(4,376		)
Write-off	—			(1,300		)	—			(1,300		)	—
Balance, end of period	53,090			53,090			48,963			53,090			48,963
Accumulated Amortization:
Balance, beginning of period	(32,659		)	(33,079		)	(33,149		)	(31,715		)	(30,689		)
Amortization	(1,608		)	(1,677		)	(1,512		)	(4,649		)	(3,972		)
Fully amortized portion	—			1,293			4,376			1,293			4,376
Write-off	—			804			—			804			—
Balance, end of period	(34,267		)	(32,659		)	(30,285		)	(34,267		)	(30,285		)
Net CDI and CRI, end of period	$	18,823		$	20,431		$	18,678		$	18,823		$	18,678

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Loans and Credit Quality Loans and Credit Quality (Details) (Purchased Credit Impaired Loans and Leases [Member], CapitalSource Inc. [Member], USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Purchased Credit Impaired Loans and Leases [Member] | CapitalSource Inc. [Member]
Accretable Yield on Purchased Credit Impaired Loans [Line Items]
Undiscounted contractual cash flows	$ 227,688
Undiscounted cash flows not expected to be collected (nonaccretable difference)	(134,726)
Undiscounted cash flows expected to be collected	92,962
Estimated fair value of PCI loans acquired	(79,234)
Accretable yield	$ 13,728

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Goodwill and Other Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2014	Apr. 07, 2014	Dec. 31, 2013	Sep. 30, 2013	May 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 1,722,129		$ 1,722,129	$ 1,520,031	$ 208,743	$ 215,862	$ 129,070
Goodwill, Period Increase (Decrease)			1,520,031
Goodwill, Impairment Loss	$ 0	$ (6,600)	$ (6,645)

XML

Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended						9 Months Ended
	Sep. 30, 2014		Jun. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
Net earnings	$ 62,271		$ 10,555		$ 24,163		$ 97,906		$ 42,006
Unrealized holding gains (losses) on securities available-for-sale (1)	93	[1]	23,011	[1]	4,070	[1]	45,395	[1]	(50,529)	[1]
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax	607	[2]	(9,663)	[2]	483	[2]	(18,342)	[2]	23,415	[2]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	700		13,348		4,553		27,053		(27,114)
Reclassification adjustment for gain included in net earnings (3)	0	[3]	89	[3]	5,222	[3]	4,841	[3]	5,631	[3]
Income tax expense related to reclassification adjustment (2)	0	[2]	37	[2]	0	[2]	(1,956)	[2]	(172)	[2]
Reclassification adjustment for gains included in earnings, net of tax	0		52		5,222		2,885		5,459
Other comprehensive income (loss), net of tax	700		13,296		(669)		24,168		(32,573)
Comprehensive income	$ 62,971		$ 23,851		$ 23,494		$ 122,074		$ 9,433

[1] Recognized in "Other income" on the Condensed Consolidated Statements of Earnings.

[2] (2) Recognized in "Income Tax Expense" on the Condensed Consolidated Statements of Earnings.

[3] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjZlZDYxOWIwZWMyMDQ0M2Y5N2RiMDlhZmMyNGFiZTM2fFRleHRTZWxlY3Rpb246RjE3QkI1NTVEQUFBOUY4MzlENTA3QzRBNDQxMDlERDgM}

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Acquisitions Acquisitions Notes

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Acquisitions

Note 3.  Acquisitions    

The following assets acquired and liabilities assumed of CapitalSource Inc. and FCAL are presented at estimated fair value as of their respective acquisition dates:

	Acquisition and Date Acquired
	CapitalSource Inc.		First California Financial Group
	April 7, 2014		May 31, 2013
	(In thousands)
Assets Acquired:
Cash and due from banks	$	768,553	$	6,124
Interest‑earning deposits in financial institutions	60,612		266,889
Investment securities available‑for‑sale	382,797		4,444
FHLB SF stock	46,060		9,518
Loans and leases	6,877,427		1,049,613
Equipment leased to others under operating leases	160,015		—
Premises and equipment	12,663		15,322
Foreclosed assets	6,382		13,772
FDIC loss sharing asset	—		17,241
Income tax assets	311,462		33,360
Goodwill	1,520,031		129,070
Core deposit and customer relationship intangibles	6,720		7,927
Other assets	581,905		27,576
Total assets acquired	$	10,734,627	$	1,580,856
Liabilities Assumed:
Noninterest‑bearing deposits	$	4,631	$	361,166
Interest‑bearing deposits	6,236,419		739,713
Other borrowings	992,109		—
Subordinated debentures	300,918		24,061
Discontinued operations	—		184,619
Accrued interest payable and other liabilities	123,362		19,729
Total liabilities assumed	$	7,657,439	$	1,329,288
Total consideration paid	$	3,077,188	$	251,568
Summary of consideration:
Cash paid	$	483,118	$	—
PacWest common stock issued	2,594,070		242,268
Cancellation of FCAL common stock owned by PacWest (at acquisition date fair value)	—		9,300
Total	$	3,077,188	$	251,568

CapitalSource Inc. Merger

We acquired CapitalSource Inc. on April 7, 2014. As part of the merger, CapitalSource Bank (“CSB”), a wholly owned subsidiary of CapitalSource Inc., merged with and into Pacific Western Bank. We completed the merger in order to augment our loan and lease generation capabilities and to diversify our loan portfolio.

Upon closing, we created the CapitalSource Division of the Bank. The CapitalSource Division provides on a nationwide basis a full spectrum of financing solutions across numerous industries and property types to middle market businesses. When we refer to "CapitalSource Inc." we are referring to the company acquired on April 7, 2014 and when we refer to the "CapitalSource Division" we are referring to a division of the Bank that provides on a nationwide basis senior secured real estate loans, equipment loans and leases, asset-based loans, lender finance loans and cash flow loans secured by the enterprise value of the borrowing entity.

In the merger with CapitalSource Inc., each share of CapitalSource Inc. common stock was converted into the right to receive $2.47 in cash and 0.2837 of a share of PacWest common stock. PacWest issued an aggregate of approximately 56.6 million  shares of PacWest common stock to CapitalSource Inc. stockholders. Based on the closing price of PacWest’s common stock on April 7, 2014 of $45.83 per share, the aggregate consideration paid to CapitalSource Inc. common stockholders and holders of equity awards to acquire CapitalSource Inc. common stock was approximately $3.1 billion.

CSB was a commercial lender which operated under a California Industrial Loan Bank charter headquartered in Los Angeles, California. CSB provided financial products to small to middle market businesses nationwide and also provided depository products and services to consumers in Southern and Central California. CSB’s loan origination efforts were conducted nationwide, and continue as part of the CapitalSource Division, with offices located in Chevy Chase, Maryland; Los Angeles, California; St. Louis, Missouri; Denver, Colorado; Chicago, Illinois; and New York, New York.

The integration of CSB’s deposit system and the conversion of CSB’s branches to Pacific Western Bank’s operating platform were completed over the weekend of April 12, 2014. CSB had 21 branches, 12 of which were closed in the consolidation with Pacific Western at the close of business on April 11, 2014 and one overlapping Pacific Western branch was closed as well. All remaining branches opened on Monday, April 14, 2014 as Pacific Western branches.

The CapitalSource Inc. merger has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the merger date. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the merger date or when additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier. The application of the acquisition method of accounting resulted in goodwill of $1.5 billion. All of the recognized goodwill is expected to be non‑deductible for tax purposes. The fair value of the acquired tax assets, once the final tax returns have been filed, are expected to change.

As required by the merger agreement and as described in the joint proxy statement/prospectus relating to the merger, the Board of Directors of PacWest adopted a Tax Asset Protection Plan (the “Plan”). This Plan is similar to the Tax Benefit Preservation Plan that CapitalSource Inc. had in place prior to the merger. The purpose of the Plan is to seek to preserve PacWest’s ability to utilize net operating loss carryforwards and certain other tax assets (collectively, the “NOLs”) for U.S. federal income tax purposes that PacWest and certain of its subsidiaries have. The Plan seeks to protect the ability to utilize the NOLs by mitigating the potential for an “ownership change” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”).

In general, an “ownership change” would occur if PacWest’s “5‑percent shareholders,” as defined under Section 382 of the Code, collectively increase their ownership in PacWest, in relation to their respective historical low points, by more than 50 percentage points over a rolling three‑year period. In general, institutional holders that file as “investment advisers” for SEC purposes, such as mutual fund companies that hold PacWest common stock on behalf of several individual mutual funds where no single fund owns five percent or more of PacWest’s common stock, are typically not treated as “5‑percent shareholders” for purposes of Section 382 of the Code.

First California Financial Group Acquisition

On May 31, 2013, we acquired First California Financial Group, Inc. As part of this acquisition, First California Bank ("FCB"), a wholly owned subsidiary of FCAL, merged with and into Pacific Western. The FCAL acquisition has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the May 31, 2013 acquisition date. The application of the acquisition method of accounting resulted in goodwill of $129.1 million. All of the recognized goodwill is expected to be non‑deductible for tax purposes.

FCB was a full‑service commercial bank headquartered in Westlake Village, California. FCB provided a full range of banking services, including revolving lines of credit, term loans, commercial real estate loans, construction loans, consumer loans and home equity loans to individuals, professionals, and small to mid‑sized businesses. FCB operated 15 branches throughout Southern California in the Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, and San Luis Obispo Counties. We completed the conversion and integration of the FCB branches to Pacific Western’s operating platform in June 2013 and as a result, we added seven locations to our branch network.

Unaudited Pro Forma Results of Operations

The following table presents our unaudited pro forma results of operations for the periods presented as if the CapitalSource Inc. and FCAL acquisitions had been completed on January 1, 2013. The unaudited pro forma results of operations include the historical accounts of the Company, CapitalSource Inc. and FCAL and pro forma adjustments, including the amortization of intangibles with definite lives and the amortization or accretion of any premiums or discounts arising from fair value adjustments for assets acquired and liabilities assumed. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of our future operating results or operating results that would have occurred had the CapitalSource Inc. and FCAL acquisitions been completed at the beginning of 2013. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2013		2014		2013
	(Dollars in thousands, except per share data)
Pro forma revenues (net interest income plus noninterest income)	$	209,558	$	591,283	$	606,570
Pro forma net earnings from continuing operations	$	82,662	$	177,846	$	180,219
Pro forma net earnings from continuing operations per share:
Basic	$	0.81	$	1.73	$	1.76
Diluted	$	0.81	$	1.73	$	1.76

No pro forma results of operations information have been provided for the three months ended September 30, 2014 as CapitalSource Inc. was acquired on April 7, 2014 and the actual results of CapitalSource Inc. and the Company are included together for this three-month period in the condensed consolidated statements of earnings.

Revenues and pre-tax net earnings from operations related to CapitalSource Inc. from the April 7, 2014 merger date through September 30, 2014, and included in the consolidated statement of earnings, were $259.0 million and $94.4 million, respectively.

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Loans and Credit Quality (Details 9) (Purchased Credit Impaired Loans and Leases [Member], Covered [Member], USD $) In Thousands, unless otherwise specified			9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Carrying Amount [Member]	Sep. 30, 2014 Accretable Yield [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	$ 332,564	$ 361,003
Accretable yield	(119,812)	(139,568)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions			79,234	(13,728)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion			45,919	45,919
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Disposals of Loans			(151,910)	0
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Decreases			0	(12,435)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses			$ (1,682)	$ 0

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Business Segment Business Segment (Textuals)	3 Months Ended
	Sep. 30, 2014
Segment Reporting (Textuals) [Abstract]
Date of asset-based lending companies reorganization & sale of Celtic Corporation	Jul. 01, 2014

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Commitments and Contingencies Details (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Loans and Leases Receivable Commitments	$ 1,818,694	$ 1,001,740
Guarantor Obligations, Maximum Exposure, Undiscounted	82,207	39,200
Loans and Leases Receivable, Commitments to Purchase or Sell	6,199	8,475
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability	$ 1,907,100	$ 1,049,415

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Investments (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following table presents amortized cost, gross unrealized gains and losses, and carrying values of securities available-for-sale. As of September 30, 2014 and December 31, 2013, our investment securities, available-for-sale were as follows:

	September 30, 2014									December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Residential mortgage-backed securities:
Government agency and
government-sponsored enterprise
pass through securities	$	537,969	$	17,917	$	(799	)	$	555,087	$	691,944	$	18,012	$	(2,768	)	$	707,188
Government agency and
government-sponsored enterprise
collateralized mortgage obligations	280,820		1,456		(2,485		)	279,791		197,069		388		(4,584		)	192,873
Covered private label collateralized
mortgage obligations	27,830		7,568		(89		)	35,309		30,502		7,552		(150		)	37,904
Other private label collateralized
mortgage obligations	12,563		35		(5		)	12,593		—		—		—			—
Municipal securities	473,426		12,212		(3,211		)	482,427		459,182		1,749		(24,273		)	436,658
Corporate debt securities	110,032		2,139		(28		)	112,143		84,119		71		(1,483		)	82,707
Government-sponsored enterprise debt
securities	36,214		168		—			36,382		10,046		—		(174		)	9,872
Other securities	26,044		33		(128		)	25,949		27,654		2		(113		)	27,543
Total	$	1,504,898	$	41,528	$	(6,745	)	$	1,539,681	$	1,500,516	$	27,774	$	(33,545	)	$	1,494,745

Unrealized losses on investment securities

Unrealized Losses on Investment Securities

As of September 30, 2014 and December 31, 2013, the gross unrealized losses and fair values of investment securities that were in unrealized loss positions, for which other-than-temporary impairments have not been recognized in earnings, were as follows:

	September 30, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Residential mortgage-backed securities:
Government agency and government-
sponsored enterprise pass through
securities	$	38,316	$	(191	)	$	27,894	$	(608	)	$	66,210	$	(799	)
Government agency and government-
sponsored enterprise collateralized
mortgage obligations	159,329		(967		)	42,340		(1,518		)	201,669		(2,485		)
Covered private label collateralized
mortgage obligations	—		—			1,050		(89		)	1,050		(89		)
Other private label collateralized
mortgage obligations	893		(5		)	—		—			893		(5		)
Municipal securities	18,058		(75		)	133,602		(3,136		)	151,660		(3,211		)
Corporate debt securities	—		—			12,971		(28		)	12,971		(28		)
securities	—		—			—		—			—		—
Other securities	6,427		(108		)	10,030		(20		)	16,457		(128		)
Total	$	223,023	$	(1,346	)	$	227,887	$	(5,399	)	$	450,910	$	(6,745	)

	December 31, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(In thousands)
Residential mortgage-backed securities:
Government agency and government-
sponsored enterprise pass through
securities	$	148,662	$	(2,767	)	$	32	$	(1	)	$	148,694	$	(2,768	)
Government agency and government-
sponsored enterprise collateralized
mortgage obligations	179,938		(4,486		)	4,383		(98		)	184,321		(4,584		)
Covered private label collateralized
mortgage obligations	1,640		(60		)	617		(90		)	2,257		(150		)
Municipal securities	337,208		(24,273		)	—		—			337,208		(24,273		)
Corporate debt securities	72,636		(1,483		)	—		—			72,636		(1,483		)
Government-sponsored enterprise debt
securities	9,872		(174		)	—		—			9,872		(174		)
Other securities	23,969		(113		)	—		—			23,969		(113		)
Total	$	773,925	$	(33,356	)	$	5,032	$	(189	)	$	778,957	$	(33,545	)

Investments Classified by Contractual Maturity Date

The following table presents the contractual maturities of our available-for-sale securities portfolio based on amortized cost and carrying value as of the date indicated.

	September 30, 2014
	Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	4,386	$	4,422
Due after one year through five years	85,057		85,209
Due after five years through ten years	249,748		252,685
Due after ten years	1,165,707		1,197,365
Total securities available-for-sale	$	1,504,898	$	1,539,681

Investment Income

The following table presents the composition of our interest income on investment securities:

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2014		2014		2013		2014		2013
	(In thousands)
Taxable interest	$	7,850	$	7,668	$	6,028	$	22,438	$	16,979
Non-taxable interest	3,343		3,333		3,302		10,004		8,443
Dividend income	1,138		985		541		2,698		1,079
Total interest income on investment securities	$	12,331	$	11,986	$	9,871	$	35,140	$	26,501

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Fair Value Measurements Fair Value Measurements (Details 4) (USD $) In Thousands, unless otherwise specified									3 Months Ended	9 Months Ended				3 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Level 1	Dec. 31, 2013 Level 1	Sep. 30, 2014 Level 2	Dec. 31, 2013 Level 2	Sep. 30, 2014 Level 3	Dec. 31, 2013 Level 3	Sep. 30, 2014 Fair Value, Measurements, Nonrecurring [Member]	Sep. 30, 2014 Fair Value, Measurements, Nonrecurring [Member]	Sep. 30, 2014 Fair Value, Measurements, Nonrecurring [Member] Level 1	Sep. 30, 2014 Fair Value, Measurements, Nonrecurring [Member] Level 2	Sep. 30, 2014 Fair Value, Measurements, Nonrecurring [Member] Level 3	Sep. 30, 2014 Non Purchased Credit Impaired Loans and Leases [Member] Fair Value, Measurements, Nonrecurring [Member]	Sep. 30, 2014 Non Purchased Credit Impaired Loans and Leases [Member] Fair Value, Measurements, Nonrecurring [Member]	Sep. 30, 2014 Non Purchased Credit Impaired Loans and Leases [Member] Fair Value, Measurements, Nonrecurring [Member] Level 3	Sep. 30, 2014 Other real estate and foreclosed assets [Member] Fair Value, Measurements, Nonrecurring [Member]	Sep. 30, 2014 Other real estate and foreclosed assets [Member] Fair Value, Measurements, Nonrecurring [Member]	Sep. 30, 2014 Other real estate and foreclosed assets [Member] Fair Value, Measurements, Nonrecurring [Member] Level 1	Sep. 30, 2014 Other real estate and foreclosed assets [Member] Fair Value, Measurements, Nonrecurring [Member] Level 2	Sep. 30, 2014 Third party appraisals [Domain] Non Purchased Credit Impaired Loans and Leases [Member] Fair Value, Measurements, Nonrecurring [Member] Level 3	Sep. 30, 2014 Third party appraisals [Domain] Other real estate and foreclosed assets [Member] Fair Value, Measurements, Nonrecurring [Member] Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring									$ 70,739	$ 70,739	$ 0	$ 28,718	$ 42,021	$ 42,728	$ 42,728	$ 40,362	$ 28,011	$ 28,011	$ 0	$ 26,352	$ 4,056	$ 1,659
Loans Receivable, Fair Value Disclosure	11,396,792	4,231,078	0	0	2,366	2,051	11,394,426	4,229,027
Total Net Gain (Loss) from Nonrecurring Assets									$ (6,237)	$ (15,068)				$ (1,374)	$ (10,205)		$ (4,863)	$ (4,863)

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Acquisitions Acquisitions (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended	1 Months Ended
	Apr. 07, 2014	May 31, 2013	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Business Acquisition [Line Items]
Cash and due from banks	$ 768,553	$ 6,124
Interest-earning deposits in financial institutions	60,612	266,889
Investments securities available-for-sale	382,797	4,444
FHLB stock	46,060	9,518
Loans and leases	6,877,427	1,049,613
Equipment leased to others under operating leases	160,015	0	125,119	0
Premises and equipment	12,663	15,322
Foreclosed Assets	6,382	13,772
FDIC loss sharing asset	0	17,241
Income Tax Assets	311,462	33,360
Goodwill	1,520,031	129,070	1,722,129	208,743	215,862
Other intangible assets	6,720	7,927
Other assets	581,905	27,576
Total assets acquired	10,734,627	1,580,856
Noninterest-bearing deposits	4,631	361,166
Interest-bearing deposits	6,236,419	739,713
Other borrowings	992,109	0
Subordinated Debentures	300,918	24,061
Discontinued operations	0	184,619
Accrued interest payable and other liabilities	123,362	19,729
Total liabilities assumed	7,657,439	1,329,288
Total consideration paid	3,077,188	251,568
Cash paid	483,118	0
PacWest common stock issued	2,594,070	242,268
Cancellation of FCAL common stock owned by PacWest (at acquisition date fair value)	0	9,300
First California Financial Group, Inc. [Domain]
Business Acquisition [Line Items]
Total consideration paid		251,568
Capitalsource, Inc. [Member]
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition	Apr. 07, 2014
Total consideration paid	$ 3,077,188

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Stock Based Compensation Plans (Notes)

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments

Note 13. Stock Based Compensation

The Company’s 2003 Stock Incentive Plan, or the 2003 Plan, permits stock-based compensation awards to officers, directors, key employees and consultants. As of September 30, 2014, the 2003 Plan authorized grants of stock‑based compensation instruments to purchase or issue up to 19,686,565 shares of Company common stock, subject to adjustments provided by the 2003 Plan. The authorized amount includes 10,686,565 shares that were added to the 2003 Plan as a result of the CapitalSource Inc. merger. Such shares were available for grant under the former CapitalSource Inc. Equity Incentive Plan and remain available for: (a) former employees of CapitalSource Inc. and CapitalSource Bank who remain employed with the Company, and (b) newly hired employees of the Company. As of September 30, 2014, there were 13,524,674 shares available for grant under the 2003 Plan, which includes 10,682,069 shares related to those added from the CapitalSource Inc. merger.

Restricted Stock

At September 30, 2014, there were 1,115,550 shares of unvested time‑based restricted common stock outstanding. The awarded shares of time‑based restricted common stock vest over a service period of three to four years from the date of the grant. The time-based restricted common stock vests immediately upon a change in control of the Company, as defined in the 2003 Plan, and upon death of the employee. In April 2014, upon closing of the CapitalSource Inc. merger, 1,013,377 awarded shares of restricted common stock vested due to the triggering of the change of control provision contained within the 2003 Plan. We recorded a $26.1 million charge to earnings for the vesting of such shares. Such amount is included in acquisition, integration and reorganization costs on the accompanying condensed consolidated statements of earnings in the second quarter of 2014.

Compensation expense related to time‑based restricted stock awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight‑line method. Restricted stock amortization totaled $2.9 million, $2.4 million, and $2.4 million for the three months endedSeptember 30, 2014, June 30, 2014, and September 30, 2013, respectively, and $6.9 million and $6.1 million for the nine months endedSeptember 30, 2014 and 2013, respectively. Such amounts are included in compensation expense on the accompanying condensed consolidated statements of earnings.

The amount of unrecognized compensation expense related to all unvested restricted stock as of September 30, 2014 totaled $39.2 million.