8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest
event reported) January 17, 2019

PacWest Bancorp

(Exact name of registrant as specified in its charter)

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

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

(Address of principal executive offices and zip code)

(310) 887-8500

(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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

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

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

Emerging growth company o

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

Item 2.02 Results of Operations and Financial Condition.*

On January 17, 2019, PacWest Bancorp announced its results of operations and financial condition for the quarter and year ended December 31, 2018.  The press release announcing the financial results for the quarter and year ended December 31, 2018 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation regarding the Company’s financial results for the quarter and year ended December 31, 2018 is furnished as Exhibit 99.2 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.*

(d) Exhibits.

Exhibit Number	Description
99.1	Press release dated January 17, 2019 announcing PacWest’s results of operations and financial condition for the quarter and year ended December 31, 2018.
99.2	Earnings Release Presentation

*The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of PacWest Bancorp under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PacWest Bancorp
	By:	/s/ Bart R. Olson
	Name:	Bart R. Olson
	Title:	Executive Vice President
		Chief Accounting Officer
Date: January 17, 2019

3

EX-99.1

Exhibit 99.1

PRESS RELEASE

PacWest Bancorp

(Nasdaq: PACW)

Contact:	Matthew P. Wagner	Patrick J. Rusnak
	President and CEO	Executive Vice President and CFO
Phone:	310-887-8520	714-989-4705

FOR IMMEDIATE RELEASE January 17, 2019

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE FOURTH QUARTER AND FULL YEAR 2018

Fourth Quarter 2018 Highlights

·Net Earnings of $115.0 Million, or $0.93 Per Diluted Share

·Tax Equivalent Net Interest Margin of 4.91%

·Loan and Lease Production of $1.6 Billion; $728 Million of Net Loan Growth

·Core Deposits Increase of $834 Million and Represent 87% of Total Deposits

Full Year 2018 Highlights

·Net Earnings of $465.3 Million, or $3.72 Per Diluted Share

·Tax Equivalent Net Interest Margin of 5.05%

·Loan and Lease Production of $4.9 Billion; $985 Million of Net Loan Growth

·Net Charge-offs 36% Lower for 2018 Compared to 2017

·Core Deposits Growth of $410 Million

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the fourth quarter of 2018 of $115.0 million, or $0.93 per diluted share, compared to net earnings for the third quarter of 2018 of $116.3 million, or $0.94 per diluted share.  Net earnings for the full year 2018 were $465.3 million, or $3.72 per diluted share, compared to net earnings for the full year 2017 of $357.8 million, or $2.91 per diluted share.

Matt Wagner, President and CEO, commented, “We finished the year with strong growth in both loans and deposits and continued improvement in our credit quality metrics. Our fourth quarter results produced a return on assets of 1.84% and a return on tangible equity of 21.23%.”

Mr. Wagner continued, “Our net earnings for the full year 2018 increased 30% over the prior year to $465.3 million. The increase was driven largely by the benefits of tax reform and lower credit costs, while revenue growth significantly outpaced noninterest expense growth.  Our tax equivalent net interest margin remained above 5% for the full year 2018 and continued cost controls resulted in our efficiency ratio being unchanged from the prior year at 41%.”

Mr. Wagner continued, “We are pleased with the fourth quarter’s organic loan and core deposit growth and will work to carry that momentum into 2019. We will also retire the division names and branding of CapitalSource and Square 1 Bank and replace them with the National Lending and Venture Banking groups under one brand as Pacific Western Bank.”

1

FINANCIAL HIGHLIGHTS

	At or For the									At or For the
	Three Months Ended									Year Ended
	December 31,			September 30,			Increase			December 31,						Increase
Financial Highlights	2018			2018			(Decrease)			2018			2017			(Decrease)
	(Dollars in thousands, except per share data)
Net earnings	$	115,041		$	116,287		$	(1,246	)	$	465,339		$	357,818		$	107,521
Diluted earnings per share	$	0.93		$	0.94		$	(0.01	)	$	3.72		$	2.91		$	0.81
Return on average assets	1.84		%	1.89		%	(0.05		)	1.91		%	1.58		%	0.33
Return on average tangible equity (1)	21.23		%	21.61		%	(0.38		)	21.22		%	15.15		%	6.07
Net interest margin (“NIM”) (tax equivalent)	4.91		%	4.99		%	(0.08		)	5.05		%	5.10		%	(0.05		)
Yield on average loans and leases (tax equivalent)	6.27		%	6.20		%	0.07			6.22		%	5.97		%	0.25
Cost of average total deposits	0.62		%	0.46		%	0.16			0.44		%	0.27		%	0.17
Efficiency ratio	41.7		%	40.9		%	0.8			41.0		%	40.8		%	0.2
Total assets	$	25,731,354		$	24,782,126		$	949,228		$	25,731,354		$	24,994,876		$	736,478
Loans and leases held for investment, net of deferred fees	$	17,957,713		$	17,230,146		$	727,567		$	17,957,713		$	16,972,743		$	984,970
Noninterest-bearing deposits	$	7,888,915		$	7,834,480		$	54,435		$	7,888,915		$	8,508,044		$	(619,129	)
Core deposits	$	16,346,671		$	15,512,742		$	833,929		$	16,346,671		$	15,937,012		$	409,659
Total deposits	$	18,870,501		$	17,879,543		$	990,958		$	18,870,501		$	18,865,536		$	4,965
Noninterest-bearing deposits as percentage of total deposits	42		%	44		%	(2		)	42		%	45		%	(3		)
Core deposits as percentage of total deposits	87		%	87		%	(0		)	87		%	85		%	2
Equity to assets ratio	18.75		%	19.13		%	(0.38		)	18.75		%	19.91		%	(1.16		)
Tangible common equity ratio (1)	9.60		%	9.61		%	(0.01		)	9.60		%	10.50		%	(0.90		)
Book value per share	$	39.17		$	38.46		$	0.71		$	39.17		$	38.65		$	0.52
Tangible book value per share (1)	$	18.02		$	17.28		$	0.74		$	18.02		$	18.24		$	(0.22	)

(1) Non-GAAP measure.

2

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased by $1.4 million to $261.8 million for the fourth quarter of 2018 compared to $260.3 million for the third quarter of 2018 due to a higher yield on average loans and leases and a higher balance of average loans and leases, offset partially by higher deposit costs.  The tax equivalent yield on average loans and leases was 6.27% for the fourth quarter of 2018 compared to 6.20% for the third quarter of 2018. The increase in the yield on average loans and leases was due principally to higher coupon interest.

The tax equivalent NIM was 4.91% in the fourth quarter of 2018 compared to 4.99% for the third quarter of 2018. The decrease in the NIM was due mainly to higher deposit and borrowing costs, partially offset by a higher yield on average loans and leases and a higher yield on investment securities.

The cost of average total deposits increased to 0.62% for the fourth quarter of 2018 from 0.46% for the third quarter of 2018 due to higher rates paid on deposits in conjunction with increased market interest rates.

Provision for Credit Losses

The provision for credit losses increased by $0.5 million to $12.0 million for the fourth quarter of 2018 compared to $11.5 million for the third quarter of 2018.

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

	Three Months Ended							Year Ended
	December 31,		September 30,		Increase			December 31,
Provision for Credit Losses	2018		2018		(Decrease)			2018
	(In thousands)
Addition to allowance for loan and lease losses	$	10,500	$	11,500	$	(1,000	)	$	36,774
Addition to reserve for unfunded loan commitments	1,500		—		1,500			8,226
Total provision for credit losses	$	12,000	$	11,500	$	500		$	45,000

3

Noninterest Income

Noninterest income decreased by $3.4 million to $33.5 million for the fourth quarter of 2018 compared to $36.9 million for the third quarter of 2018 due mainly to a $4.2 million decrease in dividends and gains on equity investments, a $1.6 million decrease in warrant income, and a $1.3 million decrease in other commissions and fees, offset partially by a $3.4 million increase in other income.  Dividends and gains on equity investments decreased mainly due to lower realized gains on investments sold and decreased fair values of investments still held. Warrant income decreased due to lower realized gains on exercised warrants as the third quarter included a $3.1 million gain on a warrant in a company that completed an IPO. Other commissions and fees decreased mostly due to lower prepayment and other loan-related fees.  Other income increased primarily due to higher miscellaneous income from borrower settlements and higher BOLI income from a death benefit received.

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

	Three Months Ended
	December 31,			September 30,		Increase
Noninterest Income	2018			2018		(Decrease)
	(In thousands)
Service charges on deposit accounts	$	4,091		$	3,979	$	112
Other commissions and fees	11,114			12,397		(1,283		)
Leased equipment income	9,384			9,120		264
Gain on sale of loans and leases	—			—		—
Gain on sale of securities	786			826		(40		)
Other income:
Dividends and (losses) gains on equity investments	(1,331		)	2,895		(4,226		)
Warrant income	2,187			3,818		(1,631		)
Other	7,295			3,877		3,418
Total noninterest income	$	33,526		$	36,912	$	(3,386	)

Noninterest Expense

Noninterest expense increased by $1.1 million to $129.2 million for the fourth quarter of 2018 compared to $128.1 million for the third quarter of 2018 attributable primarily to a $3.7 million increase in other expense, offset partially by a $3.0 million decrease in compensation expense. Other expense increased due to the $2.1 million write-off of the Square 1 trademark asset as a result of our plan to retire the Square 1 Bank name and increased employee expense due to executive relocation costs.  Compensation expense decreased due mostly to lower stock compensation expense, lower bonus expense, and lower commissions expense as a result of the decreased warrant income.

4

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

	Three Months Ended
	December 31,			September 30,			Increase
Noninterest Expense	2018			2018			(Decrease)
	(In thousands)
Compensation	$	69,299		$	72,333		$	(3,034	)
Occupancy	13,356			13,069			287
Data processing	6,930			6,740			190
Other professional services	6,198			6,058			140
Insurance and assessments	4,202			5,446			(1,244		)
Intangible asset amortization	4,986			5,587			(601		)
Leased equipment depreciation	5,758			5,001			757
Foreclosed assets income, net	(311		)	(257		)	(54		)
Acquisition, integration and reorganization costs	970			800			170
Loan expense	2,991			2,249			742
Other	14,856			11,127			3,729
Total noninterest expense	$	129,235		$	128,153		$	1,082

Income Taxes

The overall effective income tax rate was 25.3% for the fourth quarter of 2018 and 26.2% for the third quarter of 2018.  The decrease in the fourth quarter effective tax rate was due primarily to a change in the state apportionment method applied by the state of Maryland.  The effective tax rate for the year ended December 31, 2018 was 26.5% while the full year 2019 is estimated to be in the range of 27-28%.

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Loans and leases held for investment, net of deferred fees, increased by $727.6 million in the fourth quarter of 2018 to $18.0 billion at December 31, 2018.  The net increase was driven mainly by production of $1.6 billion and disbursements of $1.2 billion, offset partially by payoffs of $1.1 billion and paydowns of $920.6 million.  For the year ended December 31, 2018 loans and leases held for investment, net of deferred fees, increased by $985.0 million or 5.8%.

5

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

	Three Months Ended						Year Ended
Loans and Leases	December 31,			September 30,			December 31,
Held for Investment Roll Forward (1)	2018			2018			2018
	(Dollars in thousands)
Balance, beginning of period	$	17,230,146		$	16,885,192		$	16,972,743
Additions:
Production	1,571,565			1,315,572			4,888,614
Disbursements	1,186,351			966,668			4,104,335
Total production and disbursements	2,757,916			2,282,240			8,992,949
Reductions:
Payoffs	(1,070,691		)	(1,133,233		)	(4,289,297		)
Paydowns	(920,633		)	(795,243		)	(3,480,997		)
Total payoffs and paydowns	(1,991,324		)	(1,928,476		)	(7,770,294		)
Sales	—			(3,326		)	(161,729		)
Transfers to foreclosed assets	(13,679		)	(2,176		)	(16,914		)
Charge-offs	(25,346		)	(3,308		)	(59,042		)
Total reductions	(2,030,349		)	(1,937,286		)	(8,007,979		)
Balance, end of period	$	17,957,713		$	17,230,146		$	17,957,713
Weighted average rate on production (2)	5.38		%	5.17		%	5.23		%

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

(2) The weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees.  Amortized fees added approximately 31 basis points to loan yields in 2018.

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

	December 31,		September 30,		June 30,		December 31,
Loan and Lease Portfolio	2018		2018		2018		2017
	(In thousands)
Real estate mortgage:
Commercial	$	4,824,298	$	4,932,823	$	5,010,680	$	5,385,740
Residential	3,093,843		2,745,837		2,555,695		2,466,894
Total real estate mortgage	7,918,141		7,678,660		7,566,375		7,852,634
Real estate construction and land:
Commercial	912,583		854,346		831,462		769,075
Residential	1,321,073		1,146,611		1,042,564		822,154
Total real estate construction and land	2,233,656		2,000,957		1,874,026		1,591,229
Total real estate	10,151,797		9,679,617		9,440,401		9,443,863
Commercial:
Asset-based	3,305,421		3,222,311		3,184,300		2,924,950
Venture capital	2,038,748		2,031,895		2,008,205		2,122,735
Other commercial	2,060,426		1,897,852		1,873,607		2,071,394
Total commercial	7,404,595		7,152,058		7,066,112		7,119,079
Consumer	401,321		398,471		378,679		409,801
Total loans and leases held for investment, net of deferred fees	$	17,957,713	$	17,230,146	$	16,885,192	$	16,972,743
Total unfunded loan commitments	$	7,528,248	$	7,055,833	$	6,429,587	$	6,234,061

6

Allowance for Credit Losses

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

	Three Months Ended December 31, 2018
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
	(In thousands)
Beginning balance	$	141,920		$	35,361	$	177,281
Charge-offs	(25,346		)	—		(25,346		)
Recoveries	5,398			—		5,398
Net charge-offs	(19,948		)	—		(19,948		)
Provision	10,500			1,500		12,000
Ending balance	$	132,472		$	36,861	$	169,333

	Three Months Ended September 30, 2018
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
	(In thousands)
Beginning balance	$	132,139		$	35,361	$	167,500
Charge-offs	(3,308		)	—		(3,308		)
Recoveries	1,589			—		1,589
Net charge-offs	(1,719		)	—		(1,719		)
Provision	11,500			—		11,500
Ending balance	$	141,920		$	35,361	$	177,281

The allowance for credit losses as a percentage of loans and leases held for investment decreased to 0.94% at December 31, 2018 from 1.03% at September 30, 2018 as certain specific reserves in place at September 30, 2018 were charged off during the fourth quarter, lowering the specific reserves on impaired loans at December 31, 2018 compared to September 30, 2018.

Gross charge-offs for the fourth quarter of 2018 were $25.3 million and included $23.4 million for venture capital loans, of which $20.0 million related to two loans, and $1.7 million for other commercial loans.  Gross charge-offs for the third quarter of 2018 were $3.3 million and included $1.1 million for venture capital loans, $0.7 million for real estate mortgage loans, and $0.7 million for asset-based loans. Recoveries for the fourth quarter of 2018 were $5.4 million and included $3.1 million for venture capital loans and $1.7 million for other commercial loans.   Recoveries for the third quarter of 2018 were $1.6 million and included $1.0 million for venture capital loans.

For the full year 2018, net charge-offs were $43.8 million and included $24.2 million for venture capital loans, a decrease from the full year 2017 net charge-offs of $68.7 million that included $36.0 million for venture capital loans.  This resulted in a decrease in net charge-offs to average loans for the venture capital portfolio from 1.77% in 2017 to 1.17% in 2018.

For the fourth quarter of 2018 and third quarter of 2018, annualized net charge-offs to average loans and leases were 0.46% and 0.04%.  For the full years 2018 and 2017, net charge-offs to average loans and leases were 0.26% and 0.43%.

7

Deposits and Client Investment Funds

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

	December 31,			September 30,			June 30,			December 31,
Deposit Category	2018			2018			2018			2017
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	7,888,915		$	7,834,480		$	8,126,153		$	8,508,044
Interest checking deposits	2,842,463			2,277,537			2,184,785			2,226,885
Money market deposits	5,043,871			4,782,724			4,631,658			4,511,730
Savings deposits	571,422			618,001			643,642			690,353
Total core deposits	16,346,671			15,512,742			15,586,238			15,937,012
Non-core non-maturity deposits	518,192			483,528			607,388			863,202
Total non-maturity deposits	16,864,863			15,996,270			16,193,626			16,800,214
Time deposits $250,000 and under	1,593,453			1,509,214			1,394,117			1,709,980
Time deposits over $250,000	412,185			374,059			341,449			355,342
Total time deposits	2,005,638			1,883,273			1,735,566			2,065,322
Total deposits	$	18,870,501		$	17,879,543		$	17,929,192		$	18,865,536
Noninterest-bearing demand deposits as percentage of total deposits	42		%	44		%	45		%	45		%
Core deposits as percentage of total deposits	87		%	87		%	87		%	85		%

At December 31, 2018, core deposits totaled $16.3 billion, or 87% of total deposits, including $7.9 billion of noninterest-bearing demand deposits, or 42% of total deposits.

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at December 31, 2018 were $1.9 billion, of which $1.5 billion was managed by S1AM.

8

CREDIT QUALITY

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

	December 31,			September 30,			Increase
Credit Quality Metrics	2018			2018			(Decrease)
	(Dollars in thousands)
Nonaccrual loans and leases held for investment (1)	$	79,333		$	112,972		$	(33,639	)
Accruing loans contractually past due 90 days or more	—			—			—
Foreclosed assets, net	5,299			4,407			892
Total nonperforming assets	$	84,632		$	117,379		$	(32,747	)
Nonaccrual loans and leases held for investment (1)	$	79,333		$	112,972		$	(33,639	)
Performing troubled debt restructured loans held for investment	17,701			22,106			(4,405		)
Total impaired loans and leases	$	97,034		$	135,078		$	(38,044	)
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.44		%	0.66		%
Nonperforming assets to loans and leases held for investment and foreclosed assets	0.47		%	0.68		%
Pass	$	17,459,205		$	16,609,629		$	849,576
Special mention	261,398			360,058			(98,660		)
Classified	237,110			260,459			(23,349		)
Total loans and leases held for investment, net of deferred fees	$	17,957,713		$	17,230,146		$	727,567
Classified loans and leases held for investment to loans and leases held for investment	1.32		%	1.51		%
Allowance for credit losses	$	169,333		$	177,281		$	(7,948	)
Provision for credit losses (for the quarter)	$	12,000		$	11,500		$	500
Net charge-offs (for the quarter)	$	19,948		$	1,719		$	18,229
Net charge-offs to average loans and leases (for the quarter)	0.46		%	0.04		%
Allowance for credit losses to loans and leases held for investment	0.94		%	1.03		%
Allowance for credit losses to nonaccrual loans and leases held for investment	213.5		%	156.9		%

(1) Nonaccrual loans include guaranteed amounts of $11.2 million at December 31, 2018 and $13.5 million at September 30, 2018.

During the fourth quarter of 2018, nonaccrual loans decreased by $33.6 million and classified loans decreased by $23.3 million.  These decreases were primarily due to the foreclosure and sale during the quarter of a $12.2 million commercial real estate loan (which was our only exposure to traditional malls) and the charge-off of two venture capital loans carried at $22.5 million that were classified and on nonaccrual status at September 30, 2018.

9

Special mention loans and leases decreased by $98.7 million in the fourth quarter due primarily to the payoff of two loans totaling $50 million and a $36 million loan being upgraded to pass status.

The following table presents 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
	December 31, 2018				September 30, 2018				30-89 Days Past Due
			% of				% of		December 31,		September 30,
			Loan				Loan		2018		2018
	Amount		Category		Amount		Category		Amount		Amount
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	15,321	0.3	%	$	29,723	0.6	%	$	3,276	$	824
Residential	2,524		0.1	%	3,259		0.1	%	1,557		5,436
Total real estate mortgage	17,845		0.2	%	32,982		0.4	%	4,833		6,260
Real estate construction and land:
Commercial	442		0.0	%	—		0.0	%	—		—
Residential	—		0.0	%	—		0.0	%	1,527		8,498
Total real estate construction and land	442		0.0	%	—		0.0	%	1,527		8,498
Commercial:
Asset-based	32,324		1.0	%	34,619		1.1	%	47		—
Venture capital	20,299		1.0	%	35,520		1.7	%	1,028		1,028
Other commercial	7,380		0.4	%	9,579		0.5	%	2,467		222
Total commercial	60,003		0.8	%	79,718		1.1	%	3,542		1,250
Consumer	1,043		0.3	%	272		0.1	%	581		605
Total held for investment	$	79,333	0.4	%	$	112,972	0.7	%	$	10,483	$	16,613

10

STOCK REPURCHASE PROGRAM

During the fourth quarter of 2018, no shares were repurchased.  For the year ended December 31, 2018, we repurchased 5,849,234 shares at an average price of $52.38 and a total cost of $306.4 million.  At December 31, 2018, the remaining amount that could be used to repurchase shares under the $350 million Stock Repurchase Program was $110.1 million.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $25 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. Our Community Banking group provides lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices. We offer additional products and services through our National Lending and Venture Banking groups. National Lending provides asset-based, equipment, real estate and security cash flow loans and treasury management services to established middle-market businesses on a national basis. Venture Banking offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States.  For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

FORWARD LOOKING STATEMENTS

This communication contains certain forward-looking information about PacWest that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the Securities and Exchange Commission.

We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

11

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

	December 31,			September 30,			December 31,
	2018			2018			2017
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	175,830		$	196,502		$	233,215
Interest-earning deposits in financial institutions	209,937			185,284			165,222
Total cash and cash equivalents	385,767			381,786			398,437
Securities available-for-sale, at estimated fair value	4,009,431			3,820,333			3,774,431
Federal Home Loan Bank stock, at cost	32,103			31,077			20,790
Total investment securities	4,041,534			3,851,410			3,795,221
Loans held for sale	—			—			481,100
Gross loans and leases held for investment	18,026,365			17,295,589			17,032,221
Deferred fees, net	(68,652		)	(65,443		)	(59,478		)
Total loans and leases held for investment, net of deferred fees	17,957,713			17,230,146			16,972,743
Allowance for loan and lease losses	(132,472		)	(141,920		)	(139,456		)
Total loans and leases held for investment, net	17,825,241			17,088,226			16,833,287
Equipment leased to others under operating leases	292,677			275,707			284,631
Premises and equipment, net	34,661			34,012			31,852
Foreclosed assets, net	5,299			4,407			1,329
Deferred tax asset, net	17,489			41,280			—
Goodwill	2,548,670			2,548,670			2,548,670
Core deposit and customer relationship intangibles, net	57,120			62,106			79,626
Other assets	522,896			494,522			540,723
Total assets	$	25,731,354		$	24,782,126		$	24,994,876
LIABILITIES:
Noninterest-bearing deposits	$	7,888,915		$	7,834,480		$	8,508,044
Interest-bearing deposits	10,981,586			10,045,063			10,357,492
Total deposits	18,870,501			17,879,543			18,865,536
Borrowings	1,371,114			1,513,166			467,342
Subordinated debentures	453,846			452,944			462,437
Accrued interest payable and other liabilities	210,305			194,788			221,963
Total liabilities	20,905,766			20,040,441			20,017,278
STOCKHOLDERS’ EQUITY (1)	4,825,588			4,741,685			4,977,598
Total liabilities and stockholders’ equity	$	25,731,354		$	24,782,126		$	24,994,876
Book value per share	$	39.17		$	38.46		$	38.65
Tangible book value per share (2)	$	18.02		$	17.28		$	18.24
Shares outstanding	123,189,833			123,283,450			128,782,878

(1) Includes net unrealized (loss) gain on securities available-for-sale, net	$	(6,075	)	$	(43,854	)	$	31,171
(2) Non-GAAP measure.

12

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2018			2018			2017			2018			2017
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	272,522		$	264,062		$	258,309		$	1,047,969		$	952,771
Investment securities	29,690			28,061			25,712			111,619			98,202
Deposits in financial institutions	527			519			576			2,082			1,543
Total interest income	302,739			292,642			284,597			1,161,670			1,052,516
Interest expense:
Deposits	28,834			21,121			14,041			80,140			45,694
Borrowings	4,602			3,814			1,366			11,985			3,638
Subordinated debentures	7,538			7,390			6,234			28,631			23,613
Total interest expense	40,974			32,325			21,641			120,756			72,945
Net interest income	261,765			260,317			262,956			1,040,914			979,571
Provision for credit losses	12,000			11,500			6,406			45,000			57,752
Net interest income after provision for credit losses	249,765			248,817			256,550			995,914			921,819
Noninterest income:
Service charges on deposit accounts	4,091			3,979			4,574			16,509			15,307
Other commissions and fees	11,114			12,397			10,505			45,543			41,422
Leased equipment income	9,384			9,120			8,258			37,881			37,700
Gain on sale of loans and leases	—			—			1,988			4,675			6,197
Gain (loss) on sale of securities	786			826			(3,329		)	8,176			(541		)
Other income	8,151			10,590			4,799			35,851			28,488
Total noninterest income	33,526			36,912			26,795			148,635			128,573
Noninterest expense:
Compensation	69,299			72,333			71,986			282,568			266,567
Occupancy	13,356			13,069			12,715			53,223			48,863
Data processing	6,930			6,740			6,764			27,225			26,575
Other professional services	6,198			6,058			5,786			21,952			17,353
Insurance and assessments	4,202			5,446			5,384			20,705			19,733
Intangible asset amortization	4,986			5,587			5,062			22,506			14,240
Leased equipment depreciation	5,758			5,001			5,048			21,371			20,767
Foreclosed assets (income) expense, net	(311		)	(257		)	(475		)	(751		)	1,702
Acquisition, integration and reorganization costs	970			800			16,085			1,770			19,735
Loan expense	2,991			2,249			3,140			10,569			13,832
Other expense	14,856			11,127			11,373			50,094			46,294
Total noninterest expense	129,235			128,153			142,868			511,232			495,661
Earnings before income taxes	154,056			157,576			140,477			633,317			554,731
Income tax expense	(39,015		)	(41,289		)	(56,440		)	(167,978		)	(196,913		)
Net earnings	$	115,041		$	116,287		$	84,037		$	465,339		$	357,818
Basic and diluted earnings per share	$	0.93		$	0.94		$	0.66		$	3.72		$	2.91
Dividends declared and paid per share	$	0.60		$	0.60		$	0.50		$	2.30		$	2.00

13

PACWEST BANCORP AND SUBSIDIARIES

NET EARNINGS PER SHARE CALCULATIONS

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2018			2018			2017			2018			2017
	(In thousands, except per share data)
Basic Earnings Per Share:
Net earnings	$	115,041		$	116,287		$	84,037		$	465,339		$	357,818
Less: earnings allocated to unvested restricted stock (1)	(1,219		)	(1,428		)	(951		)	(5,119		)	(4,184		)
Net earnings allocated to common shares	$	113,822		$	114,859		$	83,086		$	460,220		$	353,634
Weighted-average basic shares and unvested restricted stock outstanding	123,238			123,657			127,971			125,100			123,060
Less: weighted-average unvested restricted stock outstanding	(1,426		)	(1,537		)	(1,440		)	(1,460		)	(1,447		)
Weighted-average basic shares outstanding	121,812			122,120			126,531			123,640			121,613
Basic earnings per share	$	0.93		$	0.94		$	0.66		$	3.72		$	2.91
Diluted Earnings Per Share:
Net earnings allocated to common shares	$	113,822		$	114,859		$	83,086		$	460,220		$	353,634
Weighted-average basic shares outstanding	121,812			122,120			126,531			123,640			121,613
Diluted earnings per share	$	0.93		$	0.94		$	0.66		$	3.72		$	2.91

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

14

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	December 31, 2018						September 30, 2018						December 31, 2017
			Interest		Average				Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Cost		Balance		Expense		Cost		Balance		Expense		Cost
	(Dollars in thousands)
Assets:
Loans and leases (1)(2)	$	17,275,343	$	272,824	6.27	%	$	16,913,792	$	264,371	6.20	%	$	17,426,873	$	258,586	5.89	%
Investment securities (3)	3,899,520		30,992		3.15	%	3,844,201		29,711		3.07	%	3,807,928		30,709		3.20	%
Deposits in financial institutions	94,500		527		2.21	%	108,485		519		1.90	%	179,379		576		1.27	%
Total interest-earning assets (1)	21,269,363		304,343		5.68	%	20,866,478		294,601		5.60	%	21,414,180		289,871		5.37	%
Other assets	3,515,099						3,491,293						3,375,656
Total assets	$	24,784,462					$	24,357,771					$	24,789,836
Liabilities and Stockholders’ Equity:
Interest checking	$	2,785,702	7,932		1.13	%	$	2,433,837	5,135		0.84	%	$	2,340,166	2,891		0.49	%
Money market	5,107,468		13,621		1.06	%	5,270,297		10,689		0.80	%	5,415,630		7,214		0.53	%
Savings	597,259		273		0.18	%	629,241		233		0.15	%	702,023		279		0.16	%
Time	1,932,332		7,008		1.44	%	1,778,552		5,064		1.13	%	2,120,749		3,657		0.68	%
Total interest-bearing deposits	10,422,761		28,834		1.10	%	10,111,927		21,121		0.83	%	10,578,568		14,041		0.53	%
Borrowings	764,039		4,602		2.39	%	720,449		3,814		2.10	%	445,106		1,366		1.22	%
Subordinated debentures	452,998		7,538		6.60	%	452,312		7,390		6.48	%	458,269		6,234		5.40	%
Total interest-bearing liabilities	11,639,798		40,974		1.40	%	11,284,688		32,325		1.14	%	11,481,943		21,641		0.75	%
Noninterest-bearing demand deposits	8,163,699						8,120,306						8,190,134
Other liabilities	222,564						203,958						197,261
Total liabilities	20,026,061						19,608,952						19,869,338
Stockholders’ equity	4,758,401						4,748,819						4,920,498
Total liabilities and stockholders’ equity	$	24,784,462					$	24,357,771					$	24,789,836
Net interest income (1)			$	263,369					$	262,276					$	268,230
Net interest spread (1)					4.28	%					4.46	%					4.62	%
Net interest margin (1)					4.91	%					4.99	%					4.97	%
Total deposits (4)	$	18,586,460	$	28,834	0.62	%	$	18,232,233	$	21,121	0.46	%	$	18,768,702	$	14,041	0.30	%
Funding sources (5)	$	19,803,497	$	40,974	0.82	%	$	19,404,994	$	32,325	0.66	%	$	19,672,077	$	21,641	0.44	%

(1) Tax equivalent.

(2) Includes discount accretion on acquired loans of $6.9 million, $6.1 million, and $6.8 million for the three months ended December 31, 2018, September 30, 2018, and December 31, 2017, respectively.

(3) Includes tax-equivalent adjustments of $1.1 million, $1.5 million, and $5.0 million for the three months ended December 31, 2018, September 30, 2018, and December 31, 2017 related to tax-exempt income on municipal securities.  The federal statutory tax-rate utilized was 21% for the 2018 periods and 35% for the 2017 period.

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

(5) Funding sources is the sum of total 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.

15

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	December 31,			September 30,			June 30,			March 31,			December 31,
	2018			2018			2018			2018			2017
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	175,830		$	196,502		$	245,998		$	235,061		$	233,215
Interest-earning deposits in financial institutions	209,937			185,284			205,567			312,735			165,222
Total cash and cash equivalents	385,767			381,786			451,565			547,796			398,437
Securities available-for-sale	4,009,431			3,820,333			3,857,788			3,801,986			3,774,431
Federal Home Loan Bank stock	32,103			31,077			26,271			17,250			20,790
Total investment securities	4,041,534			3,851,410			3,884,059			3,819,236			3,795,221
Loans held for sale	—			—			—			—			481,100
Gross loans and leases held for investment	18,026,365			17,295,589			16,947,502			16,516,627			17,032,221
Deferred fees, net	(68,652		)	(65,443		)	(62,310		)	(61,342		)	(59,478		)
Total loans and leases held for investment, net of deferred fees	17,957,713			17,230,146			16,885,192			16,455,285			16,972,743
Allowance for loan and lease losses	(132,472		)	(141,920		)	(132,139		)	(134,275		)	(139,456		)
Total loans and leases held for investment, net	17,825,241			17,088,226			16,753,053			16,321,010			16,833,287
Equipment leased to others under operating leases	292,677			275,707			266,576			280,648			284,631
Premises and equipment, net	34,661			34,012			34,513			33,686			31,852
Foreclosed assets, net	5,299			4,407			2,231			1,236			1,329
Deferred tax asset, net	17,489			41,280			25,551			12,584			—
Goodwill	2,548,670			2,548,670			2,548,670			2,548,670			2,548,670
Core deposit and customer relationship intangibles, net	57,120			62,106			67,693			73,280			79,626
Other assets	522,896			494,522			495,646			511,184			540,723
Total assets	$	25,731,354		$	24,782,126		$	24,529,557		$	24,149,330		$	24,994,876
LIABILITIES:
Noninterest-bearing deposits	$	7,888,915		$	7,834,480		$	8,126,153		$	8,232,140		$	8,508,044
Interest-bearing deposits	10,981,586			10,045,063			9,803,039			9,846,648			10,357,492
Total deposits	18,870,501			17,879,543			17,929,192			18,078,788			18,865,536
Borrowings	1,371,114			1,513,166			1,187,226			575,284			467,342
Subordinated debentures	453,846			452,944			451,878			452,223			462,437
Accrued interest payable and other liabilities	210,305			194,788			183,302			175,545			221,963
Total liabilities	20,905,766			20,040,441			19,751,598			19,281,840			20,017,278
STOCKHOLDERS’ EQUITY (1)	4,825,588			4,741,685			4,777,959			4,867,490			4,977,598
Total liabilities and stockholders’ equity	$	25,731,354		$	24,782,126		$	24,529,557		$	24,149,330		$	24,994,876
Book value per share	$	39.17		$	38.46		$	38.36		$	38.47		$	38.65
Tangible book value per share (2)	$	18.02		$	17.28		$	17.35		$	17.75		$	18.24
Shares outstanding	123,189,833			123,283,450			124,567,950			126,537,871			128,782,878

(1) Includes net unrealized (loss) gain on securities available-for-sale, net	$	(6,075	)	$	(43,854	)	$	(22,340	)	$	(11,936	)	$	31,171
(2) Non-GAAP measure.

16

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2018			2018			2018			2018			2017
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	272,522		$	264,062		$	260,300		$	251,085		$	258,309
Investment securities	29,690			28,061			27,730			26,138			25,712
Deposits in financial institutions	527			519			484			552			576
Total interest income	302,739			292,642			288,514			277,775			284,597
Interest expense:
Deposits	28,834			21,121			16,367			13,818			14,041
Borrowings	4,602			3,814			2,649			920			1,366
Subordinated debentures	7,538			7,390			7,166			6,537			6,234
Total interest expense	40,974			32,325			26,182			21,275			21,641
Net interest income	261,765			260,317			262,332			256,500			262,956
Provision for credit losses	12,000			11,500			17,500			4,000			6,406
Net interest income after provision for credit losses	249,765			248,817			244,832			252,500			256,550
Noninterest income:
Service charges on deposit accounts	4,091			3,979			4,265			4,174			4,574
Other commissions and fees	11,114			12,397			11,767			10,265			10,505
Leased equipment income	9,384			9,120			9,790			9,587			8,258
Gain on sale of loans and leases	—			—			106			4,569			1,988
Gain (loss) on sale of securities	786			826			253			6,311			(3,329		)
Other income	8,151			10,590			13,457			3,653			4,799
Total noninterest income	33,526			36,912			39,638			38,559			26,795
Noninterest expense:
Compensation	69,299			72,333			69,913			71,023			71,986
Occupancy	13,356			13,069			13,575			13,223			12,715
Data processing	6,930			6,740			6,896			6,659			6,764
Other professional services	6,198			6,058			5,257			4,439			5,786
Insurance and assessments	4,202			5,446			5,330			5,727			5,384
Intangible asset amortization	4,986			5,587			5,587			6,346			5,062
Leased equipment depreciation	5,758			5,001			5,237			5,375			5,048
Foreclosed assets (income) expense, net	(311		)	(257		)	(61		)	(122		)	(475		)
Acquisition, integration and reorganization costs	970			800			—			—			16,085
Loan expense	2,991			2,249			3,058			2,271			3,140
Other expense	14,856			11,127			11,657			12,454			11,373
Total noninterest expense	129,235			128,153			126,449			127,395			142,868
Earnings before income taxes	154,056			157,576			158,021			163,664			140,477
Income tax expense	(39,015		)	(41,289		)	(42,286		)	(45,388		)	(56,440		)
Net earnings	$	115,041		$	116,287		$	115,735		$	118,276		$	84,037
Basic and diluted earnings per share	$	0.93		$	0.94		$	0.92		$	0.93		$	0.66
Dividends declared and paid per share	$	0.60		$	0.60		$	0.60		$	0.50		$	0.50

17

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2018			2018			2018			2018			2017
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)	1.84		%	1.89		%	1.93		%	1.99		%	1.34		%
Return on average equity (1)	9.59		%	9.72		%	9.61		%	9.79		%	6.78		%
Return on average tangible equity (1)(2)	21.23		%	21.61		%	20.98		%	21.08		%	13.75		%
Yield on average loans and leases (1)(3)	6.27		%	6.20		%	6.30		%	6.11		%	5.89		%
Yield on average interest-earning assets (1)(3)	5.68		%	5.60		%	5.70		%	5.53		%	5.37		%
Cost of average total deposits (1)	0.62		%	0.46		%	0.37		%	0.31		%	0.30		%
Cost of average time deposits (1)	1.44		%	1.13		%	0.92		%	0.78		%	0.62		%
Cost of average interest-bearing liabilities (1)	1.40		%	1.14		%	0.98		%	0.81		%	0.75		%
Cost of average funding sources (1)	0.82		%	0.66		%	0.55		%	0.45		%	0.44		%
Net interest spread (1)(3)	4.28		%	4.46		%	4.72		%	4.72		%	4.62		%
Net interest margin (1)(3)	4.91		%	4.99		%	5.18		%	5.11		%	4.97		%
Efficiency ratio	41.7		%	40.9		%	39.8		%	41.7		%	41.0		%
Noninterest expense as a percentage of average assets (1)	2.07		%	2.09		%	2.11		%	2.15		%	2.29		%
Average Balances:
Loans and leases, net of deferred fees	$	17,275,343		$	16,913,792		$	16,576,361		$	16,682,124		$	17,426,873
Interest-earning assets	21,269,363			20,866,478			20,492,121			20,514,936			21,414,180
Total assets	24,784,462			24,357,771			23,999,637			24,071,148			24,789,836
Noninterest-bearing deposits	8,163,699			8,120,306			8,253,413			8,311,104			8,190,134
Interest-bearing deposits	10,422,761			10,111,927			9,703,611			9,959,243			10,578,568
Total deposits	18,586,460			18,232,233			17,957,024			18,270,347			18,768,702
Borrowings and subordinated debentures	1,217,037			1,172,761			1,001,638			700,941			903,375
Interest-bearing liabilities	11,639,798			11,284,688			10,705,249			10,660,184			11,481,943
Funding sources	19,803,497			19,404,994			18,958,662			18,971,288			19,672,077
Stockholders’ equity	4,758,401			4,748,819			4,832,480			4,901,207			4,920,498

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent.

18

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2018			2018			2018			2018			2017
	(Dollars in thousands)
Credit Quality Ratios (1):
Nonaccrual loans and leases held for investment to loans and leases held for investment	0.44		%	0.66		%	0.67		%	0.63		%	0.92		%
Nonperforming assets to loans and leases held for investment and foreclosed assets	0.47		%	0.68		%	0.69		%	0.64		%	0.93		%
Classified loans and leases held for investment to loans and leases held for investment	1.32		%	1.51		%	1.40		%	1.26		%	1.65		%
Trailing 12 months net charge-offs to average loans and leases held for investment	0.26		%	0.28		%	0.28		%	0.31		%	0.40		%
Allowance for credit losses to loans and leases held for investment	0.94		%	1.03		%	0.99		%	1.02		%	0.96		%
Allowance for credit losses to nonaccrual loans and leases held for investment	213.5		%	156.9		%	147.3		%	161.1		%	103.8		%
PacWest Bancorp Consolidated Capital:
Tier 1 leverage ratio (2)	10.13		%	10.10		%	10.33		%	10.66		%	10.66		%
Common equity tier 1 capital ratio (2)	10.01		%	10.18		%	10.59		%	11.16		%	10.91		%
Tier 1 capital ratio (2)	10.01		%	10.18		%	10.59		%	11.16		%	10.91		%
Total capital ratio (2)	12.72		%	13.03		%	13.48		%	14.11		%	13.75		%
Risk-weighted assets (2)	$	22,525,096		$	21,650,542		$	20,929,325		$	20,523,487		$	21,657,591
Equity to assets ratio	18.75		%	19.13		%	19.48		%	20.16		%	19.91		%
Tangible common equity ratio (3)	9.60		%	9.61		%	9.86		%	10.43		%	10.50		%
Book value per share	$	39.17		$	38.46		$	38.36		$	38.47		$	38.65
Tangible book value per share (3)	$	18.02		$	17.28		$	17.35		$	17.75		$	18.24
Pacific Western Bank Capital:
Tier 1 leverage ratio (2)	10.80		%	10.78		%	11.11		%	11.33		%	11.75		%
Common equity tier 1 capital ratio (2)	10.68		%	10.87		%	11.40		%	11.86		%	11.91		%
Tier 1 capital ratio (2)	10.68		%	10.87		%	11.40		%	11.86		%	11.91		%
Total capital ratio (2)	11.44		%	11.69		%	12.21		%	12.67		%	12.69		%

(1) Ratios related to 2018 periods are for total loans and leases.  Ratios related to the 2017 period are for Non-PCI loans and leases.

(2) Capital information for December 31, 2018 is preliminary.

(3) Non-GAAP measure.

19

GAAP TO NON-GAAP RECONCILIATIONS

This press release contains certain non-GAAP financial disclosures for: (1) return on average tangible equity, (2) tangible common equity ratio, and (3) tangible book value per share. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.  In particular, the use of return on average tangible equity, tangible common equity ratio, and tangible book value per share is prevalent among banking regulators, investors and analysts.  Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) return on average equity, (2) equity to assets ratio, and (3) book value per share.

The tables below present the reconciliations of these GAAP financial measures to the related non-GAAP financial measures:

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
Return on Average Tangible Equity	2018			2018			2017			2018			2017
	(Dollars in thousands)
Net earnings	$	115,041		$	116,287		$	84,037		$	465,339		$	357,818
Average stockholders’ equity	$	4,758,401		$	4,748,819		$	4,920,498		$	4,809,667		$	4,641,495
Less: Average intangible assets	2,608,497			2,614,055			2,495,876			2,616,820			2,279,010
Average tangible common equity	$	2,149,904		$	2,134,764		$	2,424,622		$	2,192,847		$	2,362,485
Return on average equity (1)	9.59		%	9.72		%	6.78		%	9.68		%	7.71		%
Return on average tangible equity (2)	21.23		%	21.61		%	13.75		%	21.22		%	15.15		%

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

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

Tangible Common Equity Ratio/	December 31,			September 30,			June 30,			March 31,			December 31,
Tangible Book Value Per Share	2018			2018			2018			2018			2017
	(Dollars in thousands, except per share data)
Stockholders’ equity	$	4,825,588		$	4,741,685		$	4,777,959		$	4,867,490		$	4,977,598
Less: Intangible assets	2,605,790			2,610,776			2,616,363			2,621,950			2,628,296
Tangible common equity	$	2,219,798		$	2,130,909		$	2,161,596		$	2,245,540		$	2,349,302
Total assets	$	25,731,354		$	24,782,126		$	24,529,557		$	24,149,330		$	24,994,876
Less: Intangible assets	2,605,790			2,610,776			2,616,363			2,621,950			2,628,296
Tangible assets	$	23,125,564		$	22,171,350		$	21,913,194		$	21,527,380		$	22,366,580
Equity to assets ratio	18.75		%	19.13		%	19.48		%	20.16		%	19.91		%
Tangible common equity ratio (1)	9.60		%	9.61		%	9.86		%	10.43		%	10.50		%
Book value per share	$	39.17		$	38.46		$	38.36		$	38.47		$	38.65
Tangible book value per share (2)	$	18.02		$	17.28		$	17.35		$	17.75		$	18.24
Shares outstanding	123,189,833			123,283,450			124,567,950			126,537,871			128,782,878

(1) Tangible common equity divided by tangible assets.

(2) Tangible common equity divided by shares outstanding.

20

EX-99.2

Exhibit 99.2

2018 Fourth Quarter Results Earnings Release Presentation January 17, 2019

This communication contains certain forward-looking information about PacWest that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts. Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth or implied in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the U.S. Securities and Exchange Commission. We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Forward-Looking Statements

Fourth Quarter Highlights 4 Investment Securities 10 Loans and Leases 12 Credit Quality 17 Deposits 22 Controlled Expenses 25 Non-GAAP Measurements 28 Presentation Index

Fourth Quarter Highlights

Fourth Quarter Highlights Robust Earnings Net earnings of $115.0 million EPS of $0.93 ROAA and ROATE of 1.84% and 21.23% (1) Industry Leading Net Interest Margin Tax equivalent NIM of 4.91%; 5.05% for full year 2018 Tax equivalent yield on average loans and leases of 6.27% Low Efficiency Ratio Efficiency ratio of 41.7% Average branch size of $252 million in deposits Noninterest expense to average assets of 2.07% Profitable Deposit Base Cost of average total deposits of 62bps Core deposits steady at 87% of total deposits $834 million of net core deposit growth Loan and Lease Production and Credit Quality Loan and lease production of $1.57 billion Net loan and lease growth of $728 million; full year loan growth of 5.8% NPAs to total loans and leases and foreclosed assets of 0.47%; 0.68% in Q3 Net charge-offs to average loans and leases of 0.46%; 0.26% for full year 2018 Net charge-offs 36% lower for full year 2018 compared to full year 2017 Strong Capital Levels Tangible common equity ratio of 9.60% (1) CET1 and total capital ratios of 10.01% and 12.72% See “Non-GAAP Measurements” slide on page 28.

Quarterly Financial Highlights See “Non-GAAP Measurements” slide on page 28. ? ($ in millions, except per share amounts) 4Q18 3Q18 Q / Q Total Assets 25,731 $ 24,782 $ 4% Loans and Leases Held for Investment, net of deferred fees 17,958 $ 17,230 $ 4% Total Deposits 18,871 $ 17,880 $ 6% Core Deposits 16,347 $ 15,513 $ 5% Net Earnings 115.0 $ 116.3 $ -1% Earnings Per Share 0.93 $ 0.94 $ -1% Return on Average Assets ("ROAA") 1.84% 1.89% -0.05 Return on Average Tangible Equity ("ROATE") (1) 21.23% 21.61% -0.38 Tangible Common Equity Ratio (1) 9.60% 9.61% -0.01 Tangible Book Value Per Share (1) 18.02 $ 17.28 $ 4% Tax Equivalent Net Interest Margin 4.91% 4.99% -0.08 Efficiency Ratio 41.7% 40.9% 0.8

Year-Over-Year Financial Highlights See “Non-GAAP Measurements” slide on page 28. ? ($ in millions, except per share amounts) 2018 2017 Y / Y Total Assets 25,731 $ 24,995 $ 3% Loans and Leases Held for Investment, net of deferred fees 17,958 $ 16,973 $ 6% Total Deposits 18,871 $ 18,866 $ 0% Core Deposits 16,347 $ 15,937 $ 3% Net Earnings 465.3 $ 357.8 $ 30% Earnings Per Share 3.72 $ 2.91 $ 28% Return on Average Assets ("ROAA") 1.91% 1.58% 0.33 Return on Average Tangible Equity ("ROATE") (1) 21.22% 15.15% 6.07 Tangible Common Equity Ratio (1) 9.60% 10.50% -0.90 Tangible Book Value Per Share (1) 18.02 $ 18.24 $ -1% Tax Equivalent Net Interest Margin 5.05% 5.10% -0.05 Efficiency Ratio 41.0% 40.8% 0.2

Solid Earnings Track Record ($ in millions, except Diluted EPS) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Net Earnings 78.7 $ 93.6 $ 101.5 $ 84.0 $ 118.3 $ 115.7 $ 116.3 $ 115.0 $ Diluted EPS 0.65 $ 0.77 $ 0.84 $ 0.66 $ 0.93 $ 0.92 $ 0.94 $ 0.93 $ $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $0 $20 $40 $60 $80 $100 $120 $140 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Diluted EPS Millions Net Earnings Diluted EPS

Source: SNL Financial. Peer data through 3Q18. Solid Capital Position – 4Q18 (Preliminary) 11.54% 11.67% 11.75% 12.02% 10.50% 10.43% 9.86% 9.61% 9.60% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 TCE / TA PACW Median Banks $15-$40B 11.91% 11.87% 11.90% 12.02% 10.66% 10.66% 10.33% 10.10% 10.13% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 T1 Leverage PACW Median Banks $15-$40B 15.56% 15.56% 15.42% 15.74% 13.75% 14.11% 13.48% 13.03% 12.72% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Total Capital PACW Median Banks $15-$40B 12.31% 12.31% 12.28% 12.52% 10.91% 11.16% 10.59% 10.18% 10.01% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 CET1 PACW Median Banks $15-$40B

Investment Securities

3.15% overall portfolio tax equivalent yield (2) (1) Fair value at 12/31/18 (2) Yield is for 4Q18 Investment Portfolio Average Life and Effective Duration Municipal Securities Composition Diversified Investment Portfolio (A) Not rated category comprised primarily of not rated revenue bonds backed by an underlying agency security or CRA-related revenue bonds. 7.0 6.5 6.4 6.3 5.8 6.0 5.7 5.6 5.3 5.2 4 5 6 7 8 4Q17 1Q18 2Q18 3Q18 4Q18 Years Average Life Effective Duration U.S. Treasuries, $403mm, 10% SBA Securities, $67mm, 2% Agency Residential MBS, $281mm, 7% Agency Residential CMOs, $633mm, 16% Agency Commercial MBS, $1,113mm, 28% Private CMOs, $101mm, 2% Municipal Securities, $1,312mm, 33% Other, $99mm, 2% $4.0 Billion Total Portfolio (1) S&P Ratings % Total Issue Type % Total AAA 10% G.O. Limited 6% AA 80% G.O. Unlimited 44% A 3% Revenue 50% BBB 1% Not rated (A) 6% 100% 100%

Loans and Leases

Diversified Loan and Lease Portfolio ($ in millions) $ Mix $ Mix Real Estate Mortgage: Commercial 4,824 $ 27% 5,386 $ 32% Residential 3,094 17% 2,467 14% Total Real Estate Mortgage 7,918 44% 7,853 46% RE Construction & Land: Commercial 913 5% 769 5% Residential 1,321 8% 822 5% Total RE Construction & Land 2,234 13% 1,591 10% Total Real Estate 10,152 57% 9,444 56% Commercial: Asset-based 3,305 18% 2,925 17% Venture capital 2,039 11% 2,123 13% Other commercial 2,061 12% 2,071 12% Total Commercial 7,405 41% 7,119 42% Consumer 401 2% 410 2% Total Loans HFI (1) 17,958 $ 100% 16,973 $ 100% Unfunded commitments 7,528 $ 6,234 $ (1) Net of deferred fees and costs 12/31/2018 12/31/2017 Commercial Mortgage Residential Mortgage Commercial Construction Residential Construction Asset - based Venture capital Other commercial Consumer As of December 31, 2018

Diversified Loan and Lease Portfolio Other Commercial, $3,238mm, 32% Hospitality, $575mm, 6% SBA, $559mm, 6% Income Producing Residential, $2,971mm, 29% Healthcare, $452mm, 4% Other Residential, $123mm, 1% Construction & Land, $2,234mm, 22% Real Estate ($10.2B) Lender Finance & Timeshare, $1,781mm, 54% Equipment Finance, $734mm, 22% Premium Finance, $356mm, 11% Other, $434mm, 13% Asset - Based ($3.3B) ($ in millions) $ Mix $ Mix Asset-Based: Lender Finance & Timeshare 1,781 $ 54% 1,610 $ 55% Equipment Finance 734 22% 657 22% Premium Finance 356 11% 233 8% Other 434 13% 425 15% Total Asset-Based 3,305 $ 100% 2,925 $ 100% 12/31/2018 12/31/2017 ($ in millions) $ Mix $ Mix Real Estate: Other Commercial 3,238 $ 32% 3,295 $ 35% Income Producing Residential 2,971 29% 2,245 25% Construction & Land 2,234 22% 1,591 17% Hospitality 575 6% 695 7% SBA 559 6% 485 5% Healthcare 452 4% 844 9% Other Residential 123 $ 1% 222 $ 2% Total Real Estate 10,152 $ 100% 9,444 $ 100% 12/31/2018 12/31/2017

Diversified Loan and Lease Portfolio Secured Business Loans, $788mm, 38% Municipal, $121mm, 6% Cash Flow, $114mm, 6% SBA, $84mm, 4% Security Monitoring, $643mm, 31% HOA Loans, $68mm, 3% Unsecured Business Loans, $243mm, 12% Other Commercial ($2.1B) Expansion Stage, $908mm, 45% Equity Fund Loans, $798mm, 39% Early Stage, $225mm, 11% Late Stage, $108mm, 5% Venture Capital ($2.0B) ($ in millions) $ Mix $ Mix Other Commercial: Secured Business Loans 788 $ 38% 744 $ 36% Security Monitoring 643 31% 573 28% Unsecured Business Loans 243 12% 249 12% Municipal 121 6% 67 3% Cash Flow 114 6% 279 13% SBA 84 4% 95 5% HOA Loans 68 3% 64 3% Total Other Commercial 2,061 $ 100% 2,071 $ 100% 12/31/2018 12/31/2017 ($ in millions) $ Mix $ Mix Venture Capital: Expansion Stage 908 $ 45% 953 $ 45% Equity Fund Loans 798 39% 471 22% Early Stage 225 11% 444 21% Late Stage 108 5% 255 12% Total Venture Capital 2,039 $ 100% 2,123 $ 100% 12/31/2018 12/31/2017

Loan and Lease Production of $1.6 Billion in 4Q18 The weighted average rate on production presents contractual rates and does not include amortized fees. Amortized fees added approximately 31 basis points to loan yields in 2018. 2018 rates are on tax-equivalent basis. $1,556 $745 $1,257 $1,316 $1,572 $724 $747 $1,204 $967 $1,186 $729 $931 $1,154 $1,133 $1,071 $813 $936 $829 $795 $921 $2,280 $1,492 $2,461 $2,283 $2,758 $1,542 $1,867 $1,983 $1,928 $1,991 4.0% 4.5% 5.0% 5.5% 6.0% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 4Q17 1Q18 2Q18 3Q18 4Q18 Avg. Rate on Production Millions Production Disbursements Payoffs Paydowns Avg Production/Disbursements Avg Payoffs/Paydowns Rate on Production ($ in millions) Production/ Disbursements Payoffs/ Paydowns Net Change Rate on Production (1)(2) 4Q18 2,758 $ 1,991 $ 767 $ 5.38% 3Q18 2,283 1,928 355 5.17% 2Q18 2,461 1,983 478 5.04% 1Q18 1,492 1,867 (375) 5.37% 4Q17 2,280 1,542 738 4.95%

Credit Quality

Amounts and ratios related to 2018 periods are for total loans and leases. Amounts and ratios for the 2017 period are for Non-PCI loans and leases. Classified loans and leases are those with a credit risk rating of substandard or doubtful. Allowance for credit losses includes allowance for loan and lease losses and reserve for unfunded loan commitments. Quarterly Credit Quality Trends(1) ($ in thousands) 4Q17 1Q18 2Q18 3Q18 4Q18 Nonaccrual Loans and Leases HFI $ 155,784 103,725 113,745 112,975 79,333 As a % of Loans and Leases HFI % 0.92% 0.63% 0.67% 0.66% 0.44% Nonperforming Assets (NPAs) $ 157,113 105,461 115,976 117,379 84,632 As a % of Loans and Leases & Foreclosed Assets % 0.93% 0.64% 0.69% 0.68% 0.47% Classified Loans and Leases HFI (2) $ 278,405 208,042 236,292 260,459 237,110 As a % of Loans and Leases HFI % 1.65% 1.26% 1.40% 1.51% 1.32% Credit Loss Provision $ 6,500 4,000 17,500 11,500 12,000 As a % of Average Loans and Leases (annualized) % 0.15% 0.10% 0.43% 0.28% 0.28% Trailing Twelve Months Net Charge-offs $ 62,957 49,723 45,912 46,568 43,758 As a % of Average Loans and Leases % 0.40% 0.31% 0.28% 0.28% 0.26% Allowance for Credit Losses (ACL) (3) $ 161,647 167,136 167,500 177,281 169,333 As a % of Loans and Leases HFI % 0.96% 1.02% 0.99% 1.03% 0.94% ACL / Nonaccrual Loans and Leases HFI % 103.76% 161.14% 147.26% 156.93% 213.45%

Amounts and ratios related to 2018 are for total loans and leases. Amounts and ratios for 2017 and 2016 are for Non-PCI loans and leases. Classified loans and leases are those with a credit risk rating of substandard or doubtful. Allowance for credit losses includes allowance for loan and lease losses and reserve for unfunded loan commitments. Annual Credit Quality Trends(1) ($ in thousands) 2016 2017 2018 Nonaccrual Loans and Leases HFI $ 170,599 155,784 79,333 As a % of Loans and Leases HFI % 1.11% 0.92% 0.44% Nonperforming Assets (NPAs) $ 183,575 157,113 84,632 As a % of Loans and Leases & Foreclosed Assets % 1.19% 0.93% 0.47% Classified Loans and Leases HFI (2) $ 409,645 278,405 237,110 As a % of Loans and Leases HFI % 2.66% 1.65% 1.32% Credit Loss Provision $ 61,000 59,000 45,000 As a % of Average Loans and Leases % 0.42% 0.37% 0.26% Trailing Twelve Months Net Charge-offs $ 21,990 62,957 43,758 As a % of Average Loans and Leases % 0.15% 0.40% 0.26% Allowance for Credit Losses (ACL) (3) $ 161,278 161,647 169,333 As a % of Loans and Leases HFI % 1.05% 0.96% 0.94% ACL / Nonaccrual Loans and Leases HFI % 94.54% 103.76% 213.45%

Key Credit Trends – Loans HFI Ratios related to 2018 periods are for total loans and leases. Ratios for the 2017 period are for Non-PCI loans and leases. 0.96% 1.02% 0.99% 1.03% 0.94% 4Q17 1Q18 2Q18 3Q18 4Q18 ACL / Loans and Leases 1.65% 1.26% 1.40% 1.51% 1.32% 4Q17 1Q18 2Q18 3Q18 4Q18 Classified Loans and Leases/ Loans and Leases 0.92% 0.63% 0.67% 0.66% 0.44% 4Q17 1Q18 2Q18 3Q18 4Q18 Nonaccrual Loans and Leases / Loans and Leases 0.93% 0.64% 0.69% 0.68% 0.47% 4Q17 1Q18 2Q18 3Q18 4Q18 NPAs / Loans and Leases and Foreclosed Assets

Nonaccrual & Delinquent Loan and Lease Detail % of Loan % of Loan 12/31/2018 9/30/2018 ($ in thousands) Balance Category Balance Category Balance Balance Real estate mortgage: Commercial 15,321 $ 0.3% 29,723 $ 0.6% 3,276 $ 824 $ Residential 2,524 0.1% 3,259 0.1% 1,557 5,436 Total real estate mortgage 17,845 0.2% 32,982 0.4% 4,833 6,260 Real estate construction and land: Commercial 442 0.0% - 0.0% - - Residential - 0.0% - 0.0% 1,527 8,498 Total R.E. construction and land 442 0.0% - 0.0% 1,527 8,498 Commercial: Asset-based 32,324 1.0% 34,619 1.1% 47 - Venture capital 20,299 1.0% 35,520 1.7% 1,028 1,028 Other commercial 7,380 0.4% 9,579 0.5% 2,467 222 Total commercial 60,003 0.8% 79,718 1.1% 3,542 1,250 Consumer 1,043 0.3% 272 0.1% 581 605 Total 79,333 $ 0.4% 112,972 $ 0.7% 10,483 $ 16,613 $ 12/31/2018 Nonaccrual Loans and Leases 9/30/2018 Accruing and 30 -89 Days Past Due

Deposits

Does not include $1.9 billion and $2.1 billion of client investment funds held at December 31, 2018 and December 31, 2017, respectively. Deposit Detail Core: 87% Core: 85% Noninterest - bearing demand deposits Interest checking deposits Money market deposits Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 December 31, 2018 Noninterest - bearing demand deposits Interest checking deposits Money market deposits Savings deposits Non - core non - maturity deposits Time deposits $250,000 and under Time deposits over $250,000 December 31, 2017 ($ in millions) Deposit Category Average $ Year-End $ Mix Average $ Year-End $ Mix Noninterest-bearing demand deposits 8,219 $ 7,889 $ 42% 7,076 $ 8,508 $ 45% Interest checking deposits 2,305 2,843 15% 1,787 2,227 12% Money market deposits 4,704 5,044 27% 4,019 4,512 24% Savings deposits 642 571 3% 707 690 4% Total core deposits 15,870 16,347 87% 13,589 15,937 85% Non-core non-maturity deposits 542 518 3% 1,151 863 4% Total non-maturity deposits 16,412 16,865 90% 14,740 16,800 89% Time deposits $250,000 and under 1,497 1,593 8% 1,862 1,710 9% Time deposits over $250,000 359 412 2% 385 355 2% Total time deposits 1,856 2,005 10% 2,247 2,065 11% Total deposits (1) 18,268 $ 18,870 $ 100% 16,987 $ 18,865 $ 100% At or For the Year Ended December 31, 2018 At or For the Year Ended December 31, 2017

Deposit Portfolio Includes brokered deposits of $729 million with a weighted average maturity of 4 months and a weighted average cost of 2.21%. $18.9 $18.1 $17.9 $17.9 $18.9 0.53% 0.56% 0.68% 0.83% 1.10% 0.30% 0.31% 0.37% 0.46% 0.62% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 0.0 5.0 10.0 15.0 20.0 25.0 4Q17 1Q18 2Q18 3Q18 4Q18 Cost Balance ($ in Billions) Core Deposits Non-Core Deposits Cost of Average Interest-Bearing Deposits Cost of Average Total Deposits ($ in millions) Time Deposits Time Deposits Total $250,000 Over Time Maturities and Under $250,000 Deposits Due in three months or less 642 $ 171 $ 813 $ Due in over three months through six months 395 87 482 Due in over six months through twelve months 465 135 600 Due in over 12 months through 24 months 68 17 85 Due in over 24 months 24 2 26 Total 1,594 $ (1) 412 $ 2,006 $ December 31, 2018

Controlled Expenses

Source: SNL Financial. Peer data through 3Q18. Efficiency Ratio Trend 40.6% 40.1% 40.1% 41.4% 40.3% 40.4% 41.0% 41.7% 39.8% 40.9% 41.7% 61.4% 58.6% 59.9% 61.2% 57.2% 56.8% 56.3% 57.2% 56.0% 55.2% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 PACW Efficiency Ratio Median Efficiency Ratio Banks $15-$40B

Focus and Execution Drive Efficiency 41.6% 38.5% 39.8% 40.8% 41.0% 2014 2015 2016 2017 2018 Efficiency Ratio $147 $193 $203 $245 $252 2014 2015 2016 2017 2018 Average Branch Size ($ - M)

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. These non-GAAP financial measures should not be considered a substitute for financial measures presented in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The table below presents reconciliations of certain GAAP to non-GAAP financial measures: Non-GAAP Measurements ($ in thousands, except per share amounts) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 Tangible Common Equity Ratio & Tangible Book Value Per Share Stockholders' equity 4,825,588 $ 4,741,685 $ 4,777,959 $ 4,867,490 $ 4,977,598 $ Less: Intangible assets 2,605,790 2,610,776 2,616,363 2,621,950 2,628,296 Tangible common equity 2,219,798 $ 2,130,909 $ 2,161,596 $ 2,245,540 $ 2,349,302 $ Total assets 25,731,354 $ 24,782,126 $ 24,529,557 $ 24,149,330 $ 24,994,876 $ Less: Intangible assets 2,605,790 2,610,776 2,616,363 2,621,950 2,628,296 Tangible assets 23,125,564 $ 22,171,350 $ 21,913,194 $ 21,527,380 $ 22,366,580 $ Tangible common equity ratio (1) 9.60% 9.61% 9.86% 10.43% 10.50% Tangible book value per share (2) 18.02 $ 17.28 $ 17.35 $ 17.75 $ 18.24 $ Shares outstanding 123,189,833 123,283,450 124,567,950 126,537,871 128,782,878 Return on Average Tangible Equity Net earnings 115,041 $ 116,287 $ 115,735 $ 118,276 $ 84,037 $ Average stockholders' equity 4,758,401 $ 4,748,819 $ 4,832,480 $ 4,901,207 $ 4,920,498 $ Less: Average intangible assets 2,608,497 2,614,055 2,619,351 2,625,593 2,495,876 Average tangible common equity 2,149,904 $ 2,134,764 $ 2,213,129 $ 2,275,614 $ 2,424,622 $ Return on average tangible equity (3) 21.23% 21.61% 20.98% 21.08% 13.75% (1) Tangible common equity divided by tangible assets (2) Tangible common equity divided by shares outstanding (3) Annualized net earnings divided by average tangible common equity.