NOTE 4. ACQUISITIONS

The following assets acquired and liabilities assumed of the acquired entities are presented at estimated fair value as of their respective acquisition dates:



	Acquisition and Date Acquired
	Square 1 Financial, Inc.		CapitalSource Inc.
	October 6, 2015		April 7, 2014
	(In thousands)
Assets Acquired:
Cash and due from banks	$	24,867	$	768,553
Interest‑earning deposits in financial institutions	236,069		60,612
Securities available‑for‑sale	2,193,538		382,797
FHLB stock	2,787		46,060
Loans and leases	1,553,720		6,877,427
Equipment leased to others under operating leases	—		160,015
Premises and equipment	1,927		12,663
Foreclosed assets	—		6,382
Goodwill	446,069		1,526,282
Core deposit and customer relationship intangibles	45,426		6,720
Income tax assets	—		304,856
Other assets	106,757		582,985
Total assets acquired	$	4,611,160	$	10,735,352
Liabilities Assumed:
Noninterest‑bearing deposits	$	2,549,000	$	4,631
Interest‑bearing deposits	1,240,635		6,236,419
Borrowings	—		992,109
Subordinated debentures	—		300,918
Accrued interest payable and other liabilities	24,092		124,087
Total liabilities assumed	$	3,813,727	$	7,658,164
Total consideration paid	$	797,433	$	3,077,188

Summary of consideration:
Cash paid	$	—	$	483,118
PacWest common stock issued	797,433		2,594,070
Total	$	797,433	$	3,077,188

Square 1 Financial, Inc. Acquisition

We acquired Square 1 on October 6, 2015. As part of the acquisition, Square 1 Bank, a wholly-owned subsidiary of Square 1, merged with and into Pacific Western. At closing, we formed the Square 1 Bank Division of Pacific Western to focus on providing a comprehensive suite of financial services to entrepreneurial businesses and their venture capital and private equity investors nationwide. When we refer to "Square 1," we are referring to the company acquired on October 6, 2015, and when we refer to the "Square 1 Bank Division," we are referring to a division of Pacific Western.

We completed this acquisition to increase our core deposits, expand our nationwide lending platform, and increase our presence in the technology and life-sciences credit markets. The Square 1 acquisition has been accounted for under the acquisition method of accounting. We acquired $4.6 billion of assets and assumed $3.8 billion of liabilities upon closing of the acquisition. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the acquisition date. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and liabilities. The application of the acquisition method of accounting resulted in goodwill of $446.1 million. All of the recognized goodwill is non-deductible for tax purposes.

CapitalSource Inc. Merger

We acquired CapitalSource Inc. on April 7, 2014. As part of the merger, CapitalSource Bank, a wholly-owned subsidiary of CapitalSource Inc., merged with and into Pacific Western. At closing, we formed the CapitalSource Division of the Bank. We completed the merger in order to increase our loan and lease generation capabilities and to diversify our loan portfolio. The application of the acquisition method of accounting resulted in goodwill of $1.5 billion. All of the recognized goodwill is non‑deductible for tax purposes.