Acquisitions

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisitions

NOTE 3.  ACQUISITIONS    

The following assets acquired and liabilities assumed of CUB are presented at estimated fair value as of the acquisition date:

	October 20, 2017
	(In thousands)
Assets Acquired:
Cash and due from banks	$	51,857
Interest‑earning deposits in financial institutions	332,799
Total cash and cash equivalents	384,656
Securities available‑for‑sale	446,980
FHLB stock	11,902
Loans and leases	2,075,890
Premises and equipment	2,981
Goodwill	374,721
Core deposit and customer relationship intangibles	57,500
Other assets	103,498
Total assets acquired	$	3,458,128
Liabilities Assumed:
Noninterest‑bearing deposits	$	1,510,285
Interest‑bearing deposits	1,209,597
Total deposits	2,719,882
Borrowings	22,879
Subordinated debentures	12,372
Accrued interest payable and other liabilities	32,424
Total liabilities assumed	$	2,787,557
Total consideration paid	$	670,571
Summary of consideration:
Cash paid	$	224,338
PacWest common stock issued	446,233
Total	$	670,571

CUB Acquisition

We acquired CUB on October 20, 2017. As part of the acquisition, CU Bank, a wholly-owned subsidiary of CUB, was merged with and into PacWest's wholly-owned banking subsidiary, Pacific Western Bank.

We completed the acquisition to, among other things, enhance our Southern California community bank franchise by adding a $2.1 billion loan portfolio and $2.7 billion of core deposits. The CUB acquisition has been accounted for under the acquisition method of accounting. We acquired $3.5 billion of assets and assumed $2.8 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 $374.7 million. All of the recognized goodwill is non-deductible for tax purposes.