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:	303-802-8900	714-989-4705
Contact:	William J. Black
	Executive Vice President
	Strategy and Corporate Development
Phone:	919-597-7466
FOR IMMEDIATE RELEASE			October 14, 2020

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE THIRD QUARTER 2020

Significant Items

• Net Earnings of $45.5 Million, or $0.38 Per Diluted Share

• Strong Pre-Provision, Pre-Tax Net Revenue (“PPNR”) of $156.2 Million

• Strong Capital Position – CET1 Ratio up 49 Basis Points to 10.46%

• Core Deposits Up $1.6 Billion or 10% in Q3; Represents 88% of Total Deposits

• Tax Equivalent Net Interest Margin of 3.90% Compared to 4.20% in Q2

• Cost of Average Total Deposits Decreased to 17 Basis Points

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the third quarter of 2020 of $45.5 million, or $0.38 per diluted share, compared to net earnings for the second quarter of 2020 of $33.2 million, or $0.28 per diluted share. The increase in net earnings for the third quarter was due primarily to a $23 million decrease in the provision for credit losses.

Matt Wagner, President and CEO, commented, “Our operations continue to produce strong revenues and internal capital as evidenced by $156.2 million in PPNR during the third quarter, which resulted in a PPNR return on average assets of 2.22%. These solid operating earnings highlight the resilience of our business as we navigate the challenging economic conditions.”

Mr. Wagner continued, “We experienced strong deposit growth again in the third quarter, resulting in a significant increase in liquidity. Our average deposits in financial institutions balance was $2.6 billion in the third quarter with a yield of 10 basis points. While our focus is on managing net interest income, this excess liquidity had a negative impact on our third quarter NIM of 32 basis points.”

Mr. Wagner added, “Our priority continues to be on mitigating potential credit losses in our portfolios, especially those portfolios impacted most by COVID-19. We were proactive in downgrading loans in the first quarter at the start of the pandemic, and the net loan migration to the special mention and classified categories during the second and third quarters was minimal. As of September 30, 2020, only 3.3% of loans are on deferral with the vast majority of those expiring in November 2020, while only 13% of loans previously granted a deferral received a second modification.”

Page 1

FINANCIAL HIGHLIGHTS

	At or For the									At or For the
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			Increase			September 30,						Increase
Financial Highlights	2020			2020			(Decrease)			2020			2019			(Decrease)
	(Dollars in thousands, except per share data)
Net earnings (loss)	$	45,503		$	33,204		$	12,299		$	(1,354,404	)	$	350,755		$	(1,705,159	)
Diluted earnings (loss) per share	$	0.38		$	0.28		$	0.10		$	(11.60	)	$	2.91		$	(14.51	)
Return on average assets		0.65	%		0.50	%		0.15			(6.65	)%		1.80	%		(8.45	)
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR") (1)	$	156,174		$	166,172		$	(9,998	)	$	483,223		$	504,873		$	(21,650	)
PPNR return on average assets (1)		2.22	%		2.51	%		(0.29	)		2.37	%		2.59	%		(0.22	)
Return on average tangible equity (1)		8.20	%		6.39	%		1.81			7.16	%		21.77	%		(14.61	)
Net interest margin ("NIM") (tax equivalent)		3.90	%		4.20	%		(0.30	)		4.13	%		4.62	%		(0.49	)
Yield on average loans and leases (tax equivalent)		5.01	%		5.01	%		-			5.18	%		6.11	%		(0.93	)
Cost of average total deposits		0.17	%		0.25	%		(0.08	)		0.32	%		0.79	%		(0.47	)
Efficiency ratio		45.1	%		42.9	%		2.2			42.9	%		42.1	%		0.8
Total assets	$	28,426,716		$	27,365,738		$	1,060,978		$	28,426,716		$	26,724,627		$	1,702,089
Loans and leases held for investment, net of deferred fees	$	19,026,200		$	19,694,631		$	(668,431	)	$	19,026,200		$	18,735,543		$	290,657
Noninterest-bearing demand deposits	$	9,346,744		$	8,629,543		$	717,201		$	9,346,744		$	7,441,185		$	1,905,559
Core deposits	$	21,117,629		$	19,535,814		$	1,581,815		$	21,117,629		$	16,471,264		$	4,646,365
Total deposits	$	23,965,695		$	22,928,579		$	1,037,116		$	23,965,695		$	19,733,203		$	4,232,492
As percentage of total deposits:
Noninterest-bearing demand deposits		39	%		38	%		1			39	%		38	%		1
Core deposits		88	%		85	%		3			88	%		84	%		4
Equity to assets ratio		12.26	%		12.62	%		(0.36	)		12.26	%		18.41	%		(6.15	)
Tangible common equity ratio (1)		8.71	%		8.93	%		(0.22	)		8.71	%		9.65	%		(0.94	)
Book value per share	$	29.42		$	29.17		$	0.25		$	29.42		$	41.06		$	(11.64	)
Tangible book value per share (1)	$	20.09		$	19.80		$	0.29		$	20.09		$	19.43		$	0.66

(1) Non-GAAP measure.

Page 2

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $3.0 million to $251.3 million for the third quarter of 2020 compared to $254.3 million for the second quarter of 2020 due mainly to a lower balance of average loans and leases. The tax equivalent yield on average loans and leases was 5.01% for both the third and second quarters of 2020.

The tax equivalent NIM was 3.90% for the third quarter of 2020 compared to 4.20% for the second quarter of 2020. The decrease in the NIM was due mostly to the change in the earning asset mix. Average loans and leases decreased by $756 million, while the average balance of deposits in financial institutions increased by $1.8 billion in the third quarter of 2020. This excess liquidity had a negative impact on the third quarter tax equivalent NIM of 32 basis points, while the PPP loans, which have a coupon rate of 1%, had a negative impact of seven basis points.

The cost of average total deposits decreased to 0.17% for the third quarter of 2020 from 0.25% for the second quarter of 2020. The lower cost of average total deposits was due primarily to the repricing of maturing time deposits. The cost of deposits at September 30, 2020 was 0.13%.

Provision for Credit Losses

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

	Three Months Ended
	September 30,		June 30,		Increase
Provision for Credit Losses	2020		2020		(Decrease)
	(In thousands)
Addition to allowance for loan and lease losses	$	81,000	$	93,000	$	(12,000	)
Addition to reserve for unfunded loan commitments		16,000		27,000		(11,000	)
Total provision for credit losses	$	97,000	$	120,000	$	(23,000	)

The provision for credit losses was $97.0 million for the third quarter of 2020, down $23.0 million from the second quarter of 2020. This reduction reflected improvement in certain key macro-economic forecast variables (unemployment and real GDP growth), partially offset by deterioration in other key macro-economic variables, including CRE price index and BBB spreads, and increased provisions for individually evaluated loans and leases.

Page 3

Noninterest Income

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

	Three Months Ended
	September 30,		June 30,		Increase
Noninterest Income	2020		2020		(Decrease)
	(In thousands)
Service charges on deposit accounts	$	2,570	$	2,004	$	566
Other commissions and fees		10,541		10,111		430
Leased equipment income		9,900		12,037		(2,137	)
Gain on sale of loans and leases		35		346		(311	)
Gain on sale of securities		5,270		7,715		(2,445	)
Other income:
Dividends and gains on equity investments		6,945		2,947		3,998
Warrant income		500		1,973		(1,473	)
Other		2,491		1,725		766
Total noninterest income	$	38,252	$	38,858	$	(606	)

Noninterest income decreased by $0.6 million to $38.3 million for the third quarter of 2020 compared to $38.9 million for the second quarter of 2020 due primarily to decreases of $2.4 million in gain on sale of securities, $2.1 million in leased equipment income, and $1.5 million in warrant income, offset partially by a $4.0 million increase in dividends and gains on equity investments. The decrease in gain on sale of securities resulted from the sale of $17 million of securities for a gain of $5.3 million in the third quarter compared to sales of $122 million of securities for a gain of $7.7 million in the second quarter. The decrease in leased equipment income was due to lower gains from early lease terminations and lower rental income due to an operating lease placed on nonaccrual status in the third quarter. The decrease in warrant income was due to lower gains from exercised warrants. The increase in dividends and gains on equity investments resulted primarily from net fair value gains of $5.9 million on equity investments still held.

Noninterest Expense

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

	Three Months Ended
	September 30,		June 30,			Increase
Noninterest Expense	2020		2020			(Decrease)
	(In thousands)
Compensation	$	75,131	$	61,910		$	13,221
Occupancy		14,771		14,494			277
Data processing		6,505		7,102			(597	)
Other professional services		4,713		4,146			567
Insurance and assessments		3,939		9,373			(5,434	)
Intangible asset amortization		3,751		3,882			(131	)
Leased equipment depreciation		7,057		7,102			(45	)
Foreclosed assets expense (income), net		335		(146	)		481
Customer related expense		4,762		4,408			354
Loan expense		3,499		3,379			120
Other		8,939		11,315			(2,376	)
Total noninterest expense	$	133,402	$	126,965		$	6,437

Page 4

Noninterest expense increased by $6.4 million to $133.4 million for the third quarter of 2020 compared to $127.0 million for the second quarter of 2020 attributable primarily to a $13.2 million increase in compensation expense, offset partially by decreases of $5.4 million in insurance and assessments expense and $2.4 million in other expense. The increase in compensation expense was due mainly to higher bonus accruals of $12.4 million and stock compensation expense of $1.4 million. The decrease in insurance and assessments expense was due to a decrease in the FDIC assessment expense due primarily to increases in liquidity and uninsured deposits during the last two quarters. The decrease in other expense was due primarily to $6.6 million in prepayment penalties incurred in the second quarter from the early payoff of $750 million of FHLB term advances, which was offset partially by higher legal accruals in the third quarter.

Income Taxes

The effective income tax rate was 23.1% for the third quarter compared to 28.1% for the second quarter of 2020. Excluding non-deductible goodwill impairment, the effective tax rate for the full year 2020 is currently estimated to be in the range of 25-27%. The lower effective tax rate in the third quarter was due mainly to higher shortfall amounts from restricted stock vestings in the second quarter that elevated the second quarter effective tax rate.

Page 5

BALANCE SHEET HIGHLIGHTS

Loans and Leases

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

	Three Months Ended						Nine Months Ended
Roll Forward of Loans and Leases Held	September 30,			June 30,			September 30,
for Investment, Net of Deferred Fees (1)	2020			2020			2020
	(Dollars in thousands)
Balance, beginning of period	$	19,694,631		$	19,745,305		$	18,846,872
Additions:
Production		519,671			1,802,956			3,112,373
Disbursements		1,008,336			800,458			3,805,874
Total production and disbursements		1,528,007			2,603,414			6,918,247
Reductions:
Payoffs		(982,889	)		(612,837	)		(2,408,433	)
Paydowns		(1,160,692	)		(2,022,376	)		(4,236,773	)
Total payoffs and paydowns		(2,143,581	)		(2,635,213	)		(6,645,206	)
Sales		(2,979	)		(3,089	)		(6,068	)
Transfers to foreclosed assets		(12,594	)		-			(14,370	)
Charge-offs		(37,284	)		(15,786	)		(73,275	)
Total reductions		(2,196,438	)		(2,654,088	)		(6,738,919	)
Net (decrease) increase		(668,431	)		(50,674	)		179,328
Balance, end of period	$	19,026,200		$	19,694,631		$	19,026,200
Weighted average rate on production (2)		4.95	%		2.33	%		3.27	%

(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 23 basis points to loan yields in 2020.

Loans and leases held for investment, net of deferred fees, decreased by $668.4 million in the third quarter of 2020 to $19.0 billion at September 30, 2020. The majority of the decrease in the loans and leases balance in the third quarter of 2020 was in the commercial category as business lending demand has decreased during the COVID-19 pandemic. Total revolving balances declined by approximately $350 million in the third quarter due to a lower line utilization rate. The largest decreases were in the lender finance, equipment finance, venture capital, and security monitoring portfolios. The weighted average rate on third quarter production increased to 4.95%. The increase was due to the unusually low rate on second quarter production since $1.2 billion, or 69%, of second quarter loan production related to PPP loans at a coupon rate of 1%. Excluding PPP loans, the weighted average rate on second quarter production was 5.39%.

Page 6

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

	September 30, 2020					June 30, 2020					September 30, 2019
			% of					% of					% of
Loan and Lease Portfolio	Balance		Total			Balance		Total			Balance		Total
	(In thousands)
Real estate mortgage:
Commercial	$	4,192,466		22	%	$	4,222,075		22	%	$	4,300,566		23	%
Income producing and other residential		3,684,579		19	%		3,733,659		19	%		3,596,358		19	%
Total real estate mortgage		7,877,045		41	%		7,955,734		41	%		7,896,924		42	%
Real estate construction and land:
Commercial		1,241,647		7	%		1,167,609		6	%		1,009,362		6	%
Residential		2,182,100		11	%		2,172,919		11	%		1,542,112		8	%
Total real estate construction and land		3,423,747		18	%		3,340,528		17	%		2,551,474		14	%
Total real estate		11,300,792		59	%		11,296,262		58	%		10,448,398		56	%
Commercial:
Asset-based		3,153,048		17	%		3,412,431		17	%		3,810,741		20	%
Venture capital		1,637,132		9	%		1,814,341		9	%		2,209,649		12	%
Other commercial		2,572,994		13	%		2,760,278		14	%		1,858,167		10	%
Total commercial		7,363,174		39	%		7,987,050		40	%		7,878,557		42	%
Consumer		362,234		2	%		411,319		2	%		408,588		2	%
Total loans and leases held for investment, net of deferred fees	$	19,026,200		100	%	$	19,694,631		100	%	$	18,735,543		100	%
Total unfunded loan commitments	$	7,178,506				$	7,745,921				$	7,790,796

Allowance for Credit Losses

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

	Three Months Ended September 30, 2020
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
	(In thousands)
Beginning balance	$	301,050		$	80,571	$	381,621
Charge-offs		(37,284	)		-		(37,284	)
Recoveries		1,200			-		1,200
Net charge-offs		(36,084	)		-		(36,084	)
Provision		81,000			16,000		97,000
Ending balance	$	345,966		$	96,571	$	442,537

	Three Months Ended June 30, 2020
	Allowance for			Reserve for		Total
Allowance for Credit	Loan and			Unfunded Loan		Allowance for
Losses Rollforward	Lease Losses			Commitments		Credit Losses
	(In thousands)
Beginning balance	$	221,292		$	53,571	$	274,863
Charge-offs		(15,786	)		-		(15,786	)
Recoveries		2,544			-		2,544
Net charge-offs		(13,242	)		-		(13,242	)
Provision		93,000			27,000		120,000
Ending balance	$	301,050		$	80,571	$	381,621

Page 7

The allowance for credit losses increased by $60.9 million in the third quarter of 2020 to $442.5 million. The increase in the allowance for credit losses during the third quarter was attributable to changes in the economic forecast and changes to modeling assumptions. Net charge-offs increased from $13.2 million in the second quarter to $36.1 million in the third quarter due primarily to one security monitoring loan with a charge-off of $32.8 million. This loan was the only junior lien exposure in the security monitoring portfolio and, accordingly, additional losses of this magnitude are not expected.

Gross charge-offs for the third quarter of 2020 were $37.3 million and included $35.4 million for other commercial loans and $1.5 million for commercial real estate mortgage loans compared to gross charge-offs for the second quarter of 2020 of $15.8 million that included $6.5 million for venture capital loans, $5.0 million for other commercial loans, and $4.2 million for commercial real estate mortgage loans.

Recoveries for the third quarter of 2020 were $1.2 million and included $0.6 million for venture capital loans and $0.3 million for other commercial loans compared to recoveries for the second quarter of 2020 of $2.5 million that included $2.3 million for other commercial loans.

For the three and nine months ended September 30, 2020, annualized net charge-offs to average loans and leases were 0.75% and 0.47%, respectively.

The allowance for credit losses as a percentage of loans and leases held for investment was 2.33% at September 30, 2020 and 1.94% at June 30, 2020. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.82% at September 30, 2020 and 1.53% at June 30, 2020. The allowance for credit losses and allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding PPP loans that are fully guaranteed and do not carry any allowance, was 2.48% and 1.94% at September 30, 2020, respectively, compared to 2.06% and 1.63% at June 30, 2020, respectively.

Deposits and Client Investment Funds

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

	September 30, 2020					June 30, 2020					September 30, 2019
			% of					% of					% of
Deposit Composition	Balance		Total			Balance		Total			Balance		Total
	(Dollars in thousands)
Noninterest-bearing demand	$	9,346,744		39	%	$	8,629,543		38	%	$	7,441,185		38	%
Interest checking		4,657,511		20	%		4,858,168		21	%		3,645,660		18	%
Money market		6,539,313		27	%		5,498,150		24	%		4,870,344		25	%
Savings		574,061		2	%		549,953		2	%		514,075		3	%
Total core deposits		21,117,629		88	%		19,535,814		85	%		16,471,264		84	%
Non-core non-maturity deposits		1,123,909		5	%		1,217,266		5	%		479,732		2	%
Total non-maturity deposits		22,241,538		93	%		20,753,080		90	%		16,950,996		86	%
Time deposits $250,000 and under		1,047,621		4	%		1,522,928		7	%		2,282,976		12	%
Time deposits over $250,000		676,536		3	%		652,571		3	%		499,231		2	%
Total time deposits		1,724,157		7	%		2,175,499		10	%		2,782,207		14	%
Total deposits	$	23,965,695		100	%	$	22,928,579		100	%	$	19,733,203		100	%

At September 30, 2020, core deposits totaled $21.1 billion, or 88% of total deposits, including $9.3 billion of noninterest-bearing demand deposits, or 39% of total deposits. Core deposits increased by $1.6 billion in the third quarter driven by continued strong deposit growth from our venture banking clients.

Page 8

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds at September 30, 2020 were $1.2 billion, of which $1.0 billion was managed by PWAM.

CREDIT QUALITY

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

	September 30,			June 30,			Increase
Credit Quality Metrics	2020			2020			(Decrease)
	(Dollars in thousands)
NPAs and Performing TDRs:
Nonaccrual loans and leases held for investment (1)	$	85,615		$	166,113		$	(80,498	)
Accruing loans contractually past due 90 days or more		-			-			-
Foreclosed assets, net		13,747			1,449			12,298
Total nonperforming assets ("NPAs")	$	99,362		$	167,562		$	(68,200	)
Performing TDRs held for investment	$	13,679		$	15,037		$	(1,358	)
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.45	%		0.84	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.52	%		0.85	%
Loan and Lease Credit Risk Ratings:
Pass	$	17,967,872		$	18,635,004		$	(667,132	)
Special mention		783,756			766,397			17,359
Classified		274,572			293,230			(18,658	)
Total loans and leases held for investment, net of deferred fees	$	19,026,200		$	19,694,631		$	(668,431	)
Classified loans and leases held for investment to loans and leases held for investment		1.44	%		1.49	%
Allowance for Credit Losses:
Allowance for loan and lease losses	$	345,966		$	301,050		$	44,916
Reserve for unfunded loan commitments		96,571			80,571			16,000
Allowance for credit losses	$	442,537		$	381,621		$	60,916
Provision for credit losses (for the quarter)	$	97,000		$	120,000		$	(23,000	)
Net charge-offs (for the quarter)	$	36,084		$	13,242		$	22,842
Net charge-offs to average loans and leases(for the quarter)		0.75	%		0.27	%
Allowance for loan and lease losses to loans and leases held for investment		1.82	%		1.53	%
Allowance for credit losses to loans and leases held for investment		2.33	%		1.94	%
Allowance for credit losses to nonaccrual loans and leases held for investment		516.9	%		229.7	%

(1) Nonaccrual loans include guaranteed amounts of $13.8 million at September 30, 2020 and $16.2 million at June 30, 2020.

Page 9

During the third quarter of 2020, classified loans and leases decreased by $18.7 million driven mostly by payoffs, paydowns, and other reductions of $55.0 million, charge-offs of $35.7 million, and the transfer to other real estate owned of $12.6 million, offset partially by the migration of $66.0 million in loans and leases from special mention and downgrades from pass of $19.4 million. Special mention loans and leases increased by $17.4 million driven mainly by downgrades from pass of $167.3 million, offset partially by upgrades to pass of $39.4 million, payoffs, paydowns, and other reductions of $44.5 million, and the migration of $66.0 million in loans and leases to classified.

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

	September 30, 2020				June 30, 2020				Increase (Decrease)
			Accruing				Accruing					Accruing
			and 30-89				and 30-89					and 30-89
			Days Past				Days Past					Days Past
	Nonaccrual		Due		Nonaccrual		Due		Nonaccrual			Due
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	45,120	$	-	$	61,771	$	-	$	(16,651	)	$	-
Income producing and other residential		2,008		1,761		2,207		-		(199	)		1,761
Total real estate mortgage		47,128		1,761		63,978		-		(16,850	)		1,761
Real estate construction and land:
Commercial		324		-		337		-		(13	)		-
Residential		-		3,108		-		1,021		-			2,087
Total real estate construction and land		324		3,108		337		1,021		(13	)		2,087
Commercial:
Asset-based		2,817		-		19,013		3,697		(16,196	)		(3,697	)
Venture capital		2,001		2,319		8,270		1,924		(6,269	)		395
Other commercial		32,941		185		73,995		191		(41,054	)		(6	)
Total commercial		37,759		2,504		101,278		5,812		(63,519	)		(3,308	)
Consumer		404		791		520		1,067		(116	)		(276	)
Total held for investment	$	85,615	$	8,164	$	166,113	$	7,900	$	(80,498	)	$	264

During the third quarter of 2020, nonaccrual loans and leases decreased by $80.5 million due primarily to charge-offs of $35 million, payoffs of $29 million, and transfers to foreclosed assets of $12.6 million.

Page 10

CAPITAL

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

	September 30, 2020
				Excluding			June 30,
				PPP			2020
	Actual (1)			Loans (1)			Actual
PacWest Bancorp Consolidated:
Tier 1 leverage capital ratio		8.66	%		9.07	%(3)		8.93	%
Common equity tier 1 capital ratio		10.46	%		10.46	%		9.97	%
Total capital ratio		13.74	%		13.74	%		13.18	%
Tangible common equity ratio (2)		8.71	%		9.12	%(3)		8.93	%

(1) Capital information for September 30, 2020 is preliminary.

(2) Non-GAAP measure.

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

STOCK REPURCHASE PROGRAM

During the third quarter of 2020, there were no stock repurchases. On April 21, 2020, we announced that stock repurchases were suspended indefinitely.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $28 billion in assets headquartered in Los Angeles, California, with executive offices in Denver, Colorado, with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 72 full-service branches located in California, one branch located in Durham, North Carolina, and one branch located in Denver, Colorado. The Bank provides community banking products including lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices and Denver, Colorado branch office. The Bank offers national lending products including asset-based, equipment, and real estate loans and treasury management services to established middle-market businesses on a national basis. The Bank also offers venture banking products including a comprehensive suite of financial services focused on entrepreneurial and venture-backed businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States. For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.

Page 11

FORWARD LOOKING STATEMENTS

This communication contains certain forward-looking information about PacWest Bancorp that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about future financial and operational results, expectations, or intentions are forward-looking statements. Such statements are based on information available at the time of the communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. The COVID-19 pandemic is adversely affecting PacWest Bancorp, its employees, customers and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity and prospects is uncertain. The length of the COVID-19 pandemic and the severity of its impact on key macro-economic indicators such as unemployment and GDP may have a material impact on our allowance for credit losses and related provision for credit losses. Continued deterioration in general business and economic conditions could adversely affect PacWest Bancorp’s revenues and the values of its assets, including goodwill, and liabilities, lead to a tightening of credit, and increase stock price volatility. In addition, PacWest Bancorp’s results could be adversely affected by changes in interest rates, sustained high unemployment rates, deterioration in the credit quality of its loan portfolio or in the value of the collateral securing those loans, deterioration in the value of its investment securities, the magnitude of individual loan losses on security monitoring loans, and legal and regulatory developments. Actual results may differ materially from those set forth or implied in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by 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.

Page 12

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET          

	September 30,			June 30,			September 30,
	2020			2020			2019
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	187,176		$	174,059		$	252,596
Interest-earning deposits in financial institutions		2,766,020			1,747,077			483,405
Total cash and cash equivalents		2,953,196			1,921,136			736,001
Securities available-for-sale, at estimated fair value		4,532,614			3,851,141			3,817,348
Federal Home Loan Bank stock, at cost		17,250			17,250			26,865
Total investment securities		4,549,864			3,868,391			3,844,213
Gross loans and leases held for investment		19,101,680			19,780,476			18,796,011
Deferred fees, net		(75,480	)		(85,845	)		(60,468	)
Total loans and leases held for investment, net of deferred fees		19,026,200			19,694,631			18,735,543
Allowance for loan and lease losses		(345,966	)		(301,050	)		(138,552	)
Total loans and leases held for investment, net		18,680,234			19,393,581			18,596,991
Equipment leased to others under operating leases		286,425			295,191			295,854
Premises and equipment, net		40,544			42,299			37,926
Foreclosed assets, net		13,747			1,449			1,366
Goodwill		1,078,670			1,078,670			2,548,670
Core deposit and customer relationship intangibles, net		26,813			30,564			42,547
Other assets		797,223			734,457			621,059
Total assets	$	28,426,716		$	27,365,738		$	26,724,627
LIABILITIES:
Noninterest-bearing deposits	$	9,346,744		$	8,629,543		$	7,441,185
Interest-bearing deposits		14,618,951			14,299,036			12,292,018
Total deposits		23,965,695			22,928,579			19,733,203
Borrowings		60,000			60,000			1,253,031
Subordinated debentures		463,282			460,772			456,145
Accrued interest payable and other liabilities		451,508			463,489			362,140
Total liabilities		24,940,485			23,912,840			21,804,519
STOCKHOLDERS' EQUITY (1)		3,486,231			3,452,898			4,920,108
Total liabilities and stockholders’ equity	$	28,426,716		$	27,365,738		$	26,724,627
Book value per share	$	29.42		$	29.17		$	41.06
Tangible book value per share (2)	$	20.09		$	19.80		$	19.43
Shares outstanding		118,489,927			118,374,603			119,831,192

(1) Includes net unrealized gain on securities   available-for-sale, net $ 155,474 $ 145,038 $ 95,887

(2) Non-GAAP measure.

Page 13

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS)          

	Three Months Ended							Nine Months Ended
	September 30,		June 30,			September 30,		September 30,
	2020		2020			2019		2020			2019
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	240,811	$	247,851		$	275,978	$	750,940		$	834,443
Investment securities		24,443		26,038			28,806		77,927			87,434
Deposits in financial institutions		654		186			2,424		2,448			4,423
Total interest income		265,908		274,075			307,208		831,315			926,300
Interest expense:
Deposits		9,887		13,075			40,703		51,209			113,658
Borrowings		27		1,319			6,852		8,124			21,772
Subordinated debentures		4,670		5,402			7,417		16,632			22,860
Total interest expense		14,584		19,796			54,972		75,965			158,290
Net interest income		251,324		254,279			252,236		755,350			768,010
Provision for credit losses		97,000		120,000			7,000		329,000			19,000
Net interest income after provision for credit losses		154,324		134,279			245,236		426,350			749,010
Noninterest income:
Service charges on deposit accounts		2,570		2,004			3,525		7,232			11,026
Other commissions and fees		10,541		10,111			10,855		30,373			33,453
Leased equipment income		9,900		12,037			9,615		34,188			28,079
Gain on sale of loans and leases		35		346			765		468			1,091
Gain on sale of securities		5,270		7,715			908		13,167			25,261
Other income		9,936		6,645			7,761		20,782			16,476
Total noninterest income		38,252		38,858			33,429		106,210			115,386
Noninterest expense:
Compensation		75,131		61,910			71,424		198,323			211,225
Occupancy		14,771		14,494			14,089		43,472			42,866
Data processing		6,505		7,102			7,044		20,061			20,786
Other professional services		4,713		4,146			4,400		13,117			13,542
Insurance and assessments		3,939		9,373			4,100		17,561			12,236
Intangible asset amortization		3,751		3,882			4,833		11,581			14,573
Leased equipment depreciation		7,057		7,102			5,951		21,364			17,160
Foreclosed assets expense (income), net		335		(146	)		8		255			(109	)
Acquisition, integration and reorganization costs		-		-			-		-			618
Customer related expense		4,762		4,408			3,539		13,102			9,887
Loan expense		3,499		3,379			3,628		9,528			9,964
Goodwill impairment		-		-			-		1,470,000			-
Other expense		8,939		11,315			7,793		29,973			25,775
Total noninterest expense		133,402		126,965			126,809		1,848,337			378,523
Earnings (loss) before income taxes		59,174		46,172			151,856		(1,315,777	)		485,873
Income tax expense		13,671		12,968			41,830		38,627			135,118
Net earnings (loss)	$	45,503	$	33,204		$	110,026	$	(1,354,404	)	$	350,755
Basic and diluted earnings (loss) per share	$	0.38	$	0.28		$	0.92	$	(11.60	)	$	2.91
Dividends declared and paid per share	$	0.25	$	0.25		$	0.60	$	1.10		$	1.80

Page 14

PACWEST BANCORP AND SUBSIDIARIES

NET EARNINGS (LOSS) PER SHARE CALCULATIONS              

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2020			2020			2019			2020			2019
	(In thousands, except per share data)
Basic Earnings (Loss) Per Share:
Net earnings (loss)	$	45,503		$	33,204		$	110,026		$	(1,354,404	)	$	350,755
Less: earnings allocated to unvested restricted stock (1)		(578	)		(362	)		(1,369	)		(1,603	)		(3,725	)
Net earnings (loss) allocated to common shares	$	44,925		$	32,842		$	108,657		$	(1,356,007	)	$	347,030
Weighted-average basic shares and unvested restricted stock outstanding		118,438			118,192			119,831			118,469			120,691
Less: weighted-average unvested restricted stock outstanding		(1,684	)		(1,606	)		(1,622	)		(1,596	)		(1,480	)
Weighted-average basic shares outstanding		116,754			116,586			118,209			116,873			119,211
Basic earnings (loss) per share	$	0.38		$	0.28		$	0.92		$	(11.60	)	$	2.91
Diluted Earnings (Loss) Per Share:
Net earnings (loss) allocated to common shares	$	44,925		$	32,842		$	108,657		$	(1,356,007	)	$	347,030
Weighted-average diluted shares outstanding		116,754			116,586			118,209			116,873			119,211
Diluted earnings (loss) per share	$	0.38		$	0.28		$	0.92		$	(11.60	)	$	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.

Page 15

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS                

	Three Months Ended
	September 30, 2020							June 30, 2020							September 30, 2019
			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)	$	19,195,737	$	241,547		5.01	%	$	19,951,603	$	248,474		5.01	%	$	18,539,281	$	276,309		5.91	%
Investment securities (3)		4,107,915		26,015		2.52	%		3,846,459		27,430		2.87	%		3,809,243		32,213		3.36	%
Deposits in financial institutions		2,554,349		654		0.10	%		733,142		186		0.10	%		445,152		2,424		2.16	%
Total interest-earning assets (1)		25,858,001		268,216		4.13	%		24,531,204		276,090		4.53	%		22,793,676		310,946		5.41	%
Other assets		2,077,192							2,090,023							3,612,927
Total assets	$	27,935,193						$	26,621,227						$	26,406,603
Liabilities and Stockholders' Equity:
Interest checking	$	4,904,614		2,019		0.16	%	$	4,001,750		1,573		0.16	%	$	3,598,698		11,942		1.32	%
Money market		7,170,842		3,081		0.17	%		6,114,354		2,856		0.19	%		5,121,856		14,807		1.15	%
Savings		565,395		35		0.02	%		524,335		33		0.03	%		515,649		218		0.17	%
Time		1,876,072		4,752		1.01	%		2,475,858		8,613		1.40	%		2,795,573		13,736		1.95	%
Total interest-bearing deposits		14,516,923		9,887		0.27	%		13,116,297		13,075		0.40	%		12,031,776		40,703		1.34	%
Borrowings		181,315		27		0.06	%		871,110		1,319		0.61	%		1,181,313		6,852		2.30	%
Subordinated debentures		462,375		4,670		4.02	%		459,466		5,402		4.73	%		456,011		7,417		6.45	%
Total interest-bearing liabilities		15,160,613		14,584		0.38	%		14,446,873		19,796		0.55	%		13,669,100		54,972		1.60	%
Noninterest-bearing demand deposits		8,812,391							8,292,151							7,487,555
Other liabilities		464,320							435,353							359,202
Total liabilities		24,437,324							23,174,377							21,515,857
Stockholders' equity		3,497,869							3,446,850							4,890,746
Total liabilities and stockholders' equity	$	27,935,193						$	26,621,227						$	26,406,603
Net interest income (1)			$	253,632						$	256,294						$	255,974
Net interest spread (1)						3.75	%						3.98	%						3.81	%
Net interest margin (1)						3.90	%						4.20	%						4.46	%
Total deposits (4)	$	23,329,314	$	9,887		0.17	%	$	21,408,448	$	13,075		0.25	%	$	19,519,331	$	40,703		0.83	%

(1) Tax equivalent.

(2) Includes discount accretion on acquired loans of $2.0 million, $2.5 million, and $2.6 million for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019, respectively.

(3) Includes tax-equivalent adjustments of $1.6 million, $1.4 million, and $3.4 million for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019 related to tax-exempt income on investment securities. The federal statutory tax rate utilized was 21%.

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

Page 16

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER BALANCE SHEET

	September 30,			June 30,			March 31,			December 31,			September 30,
	2020			2020			2020			2019			2019
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	187,176		$	174,059		$	172,570		$	172,585		$	252,596
Interest-earning deposits in financial institutions		2,766,020			1,747,077			439,690			465,039			483,405
Total cash and cash equivalents		2,953,196			1,921,136			612,260			637,624			736,001
Securities available-for-sale		4,532,614			3,851,141			3,757,663			3,797,187			3,817,348
Federal Home Loan Bank stock		17,250			17,250			54,244			40,924			26,865
Total investment securities		4,549,864			3,868,391			3,811,907			3,838,111			3,844,213
Gross loans and leases held for investment		19,101,680			19,780,476			19,806,394			18,910,740			18,796,011
Deferred fees, net		(75,480	)		(85,845	)		(61,089	)		(63,868	)		(60,468	)
Total loans and leases held for investment, net of deferred fees		19,026,200			19,694,631			19,745,305			18,846,872			18,735,543
Allowance for loan and lease losses		(345,966	)		(301,050	)		(221,292	)		(138,785	)		(138,552	)
Total loans and leases held for investment, net		18,680,234			19,393,581			19,524,013			18,708,087			18,596,991
Equipment leased to others under operating leases		286,425			295,191			306,530			324,084			295,854
Premises and equipment, net		40,544			42,299			39,799			38,585			37,926
Foreclosed assets, net		13,747			1,449			1,701			440			1,366
Goodwill		1,078,670			1,078,670			1,078,670			2,548,670			2,548,670
Core deposit and customer relationship intangibles, net		26,813			30,564			34,446			38,394			42,547
Other assets		797,223			734,457			733,941			636,811			621,059
Total assets	$	28,426,716		$	27,365,738		$	26,143,267		$	26,770,806		$	26,724,627
LIABILITIES:
Noninterest-bearing deposits	$	9,346,744		$	8,629,543		$	7,510,218		$	7,243,298		$	7,441,185
Interest-bearing deposits		14,618,951			14,299,036			12,065,619			11,989,738			12,292,018
Total deposits		23,965,695			22,928,579			19,575,837			19,233,036			19,733,203
Borrowings		60,000			60,000			2,295,000			1,759,008			1,253,031
Subordinated debentures		463,282			460,772			458,994			458,209			456,145
Accrued interest payable and other liabilities		451,508			463,489			423,047			365,856			362,140
Total liabilities		24,940,485			23,912,840			22,752,878			21,816,109			21,804,519
STOCKHOLDERS' EQUITY (1)		3,486,231			3,452,898			3,390,389			4,954,697			4,920,108
Total liabilities and stockholders’ equity	$	28,426,716		$	27,365,738		$	26,143,267		$	26,770,806		$	26,724,627
Book value per share	$	29.42		$	29.17		$	28.75		$	41.36		$	41.06
Tangible book value per share (2)	$	20.09		$	19.80		$	19.31		$	19.77		$	19.43
Shares outstanding		118,489,927			118,374,603			117,916,789			119,781,605			119,831,192

(1) Includes net unrealized gain on   securities available-for-sale, net	$	155,474	$	145,038	$	90,916	$	78,658	$	95,887
(2) Non-GAAP measure.

Page 17

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER STATEMENT OF EARNINGS (LOSS) 

	Three Months Ended
	September 30,		June 30,			March 31,			December 31,			September 30,
	2020		2020			2020			2019			2019
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	240,811	$	247,851		$	262,278		$	263,402		$	275,978
Investment securities		24,443		26,038			27,446			28,135			28,806
Deposits in financial institutions		654		186			1,608			2,056			2,424
Total interest income		265,908		274,075			291,332			293,593			307,208
Interest expense:
Deposits		9,887		13,075			28,247			34,802			40,703
Borrowings		27		1,319			6,778			5,189			6,852
Subordinated debentures		4,670		5,402			6,560			6,983			7,417
Total interest expense		14,584		19,796			41,585			46,974			54,972
Net interest income		251,324		254,279			249,747			246,619			252,236
Provision for credit losses		97,000		120,000			112,000			3,000			7,000
Net interest income after provision for credit losses		154,324		134,279			137,747			243,619			245,236
Noninterest income:
Service charges on deposit accounts		2,570		2,004			2,658			3,611			3,525
Other commissions and fees		10,541		10,111			9,721			10,170			10,855
Leased equipment income		9,900		12,037			12,251			10,648			9,615
Gain on sale of loans and leases		35		346			87			23			765
Gain on sale of securities		5,270		7,715			182			184			908
Other income		9,936		6,645			4,201			2,540			7,761
Total noninterest income		38,252		38,858			29,100			27,176			33,429
Noninterest expense:
Compensation		75,131		61,910			61,282			74,637			71,424
Occupancy		14,771		14,494			14,207			14,541			14,089
Data processing		6,505		7,102			6,454			6,770			7,044
Other professional services		4,713		4,146			4,258			4,261			4,400
Insurance and assessments		3,939		9,373			4,249			4,168			4,100
Intangible asset amortization		3,751		3,882			3,948			4,153			4,833
Leased equipment depreciation		7,057		7,102			7,205			6,856			5,951
Foreclosed assets expense (income), net		335		(146	)		66			(3,446	)		8
Acquisition, integration and reorganization costs		-		-			-			(269	)		-
Customer related expense		4,762		4,408			3,932			3,952			3,539
Loan expense		3,499		3,379			2,650			2,967			3,628
Goodwill impairment		-		-			1,470,000			-			-
Other expense		8,939		11,315			9,719			5,138			7,793
Total noninterest expense		133,402		126,965			1,587,970			123,728			126,809
Earnings (loss) before income taxes		59,174		46,172			(1,421,123	)		147,067			151,856
Income tax expense		13,671		12,968			11,988			29,186			41,830
Net earnings (loss)	$	45,503	$	33,204		$	(1,433,111	)	$	117,881		$	110,026
Basic and diluted earnings (loss) per share	$	0.38	$	0.28		$	(12.23	)	$	0.98		$	0.92
Dividends declared and paid per share	$	0.25	$	0.25		$	0.60		$	0.60		$	0.60

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PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2020			2020			2020			2019			2019
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)		0.65	%		0.50	%		(21.27	)%		1.77	%		1.65	%
Pre-provision, pre-goodwill impairment,
pre-tax net revenue ("PPNR")
return on average assets (1)(2)		2.22	%		2.51	%		2.39	%		2.26	%		2.39	%
Return on average equity (1)		5.18	%		3.87	%		(116.28	)%		9.49	%		8.93	%
Return on average tangible equity (1)(2)		8.20	%		6.39	%		6.88	%		20.68	%		19.84	%
Efficiency ratio		45.1	%		42.9	%		40.6	%		44.8	%		42.3	%
Noninterest expense as a percentage of average assets (1)		1.90	%		1.92	%		23.57	%		1.86	%		1.91	%
Average Yields/Costs (1):
Yield on:
Average loans and leases (3)		5.01	%		5.01	%		5.54	%		5.67	%		5.91	%
Average interest-earning assets (3)		4.13	%		4.53	%		5.02	%		5.14	%		5.41	%
Cost of:
Average interest-bearing deposits		0.27	%		0.40	%		0.95	%		1.14	%		1.34	%
Average total deposits		0.17	%		0.25	%		0.59	%		0.71	%		0.83	%
Average interest-bearing liabilities		0.38	%		0.55	%		1.16	%		1.36	%		1.60	%
Net interest spread (3)		3.75	%		3.98	%		3.86	%		3.78	%		3.81	%
Net interest margin (3)		3.90	%		4.20	%		4.31	%		4.33	%		4.46	%
Average Balances:
Assets:
Loans and leases, net of deferred fees	$	19,195,737		$	19,951,603		$	19,065,035		$	18,470,583		$	18,539,281
Interest-earning assets		25,858,001			24,531,204			23,455,636			22,779,867			22,793,676
Total assets		27,935,193			26,621,227			27,099,040			26,380,739			26,406,603
Liabilities:
Noninterest-bearing deposits		8,812,391			8,292,151			7,357,717			7,338,888			7,487,555
Interest-bearing deposits		14,516,923			13,116,297			11,896,780			12,102,902			12,031,776
Total deposits		23,329,314			21,408,448			19,254,497			19,441,790			19,519,331
Borrowings		181,315			871,110			2,026,749			1,179,220			1,181,313
Subordinated debentures		462,375			459,466			458,399			456,997			456,011
Interest-bearing liabilities		15,160,613			14,446,873			14,381,928			13,739,119			13,669,100
Stockholders' equity		3,497,869			3,446,850			4,956,778			4,930,182			4,890,746

(1) Annualized.

(2) Non-GAAP measure.

(3) Tax equivalent.

Page 19

PACWEST BANCORP AND SUBSIDIARIES

FIVE QUARTER SELECTED FINANCIAL DATA

	At or For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2020			2020			2020			2019			2019
	(Dollars in thousands)
Credit Quality Ratios:
Nonaccrual loans and leases held for investment to loans and leases held for investment		0.45	%		0.84	%		0.48	%		0.49	%		0.53	%
Nonperforming assets to loans and leases held for investment and foreclosed assets		0.52	%		0.85	%		0.49	%		0.49	%		0.54	%
Classified loans and leases held for investment to loans and leases held for investment		1.44	%		1.49	%		0.75	%		0.93	%		1.01	%
Provision for credit losses (for the quarter) to average loans and leases held for investment (annualized)		2.01	%		2.42	%		2.36	%		0.06	%		0.15	%
Net charge-offs (for the quarter) to average loans and leases held for investment (annualized)		0.75	%		0.27	%		0.40	%		0.02	%		0.10	%
Trailing 12 months net charge-offs to average loans and leases held for investment		0.36	%		0.20	%		0.19	%		0.09	%		0.20	%
Allowance for loan and lease losses to loans and leases held for investment		1.82	%		1.53	%		1.12	%		0.74	%		0.74	%
Allowance for credit losses to loans and leases held for investment		2.33	%		1.94	%		1.39	%		0.93	%		0.92	%
Allowance for credit losses to nonaccrual loans and leases held for investment		516.9	%		229.7	%		287.5	%		189.1	%		174.0	%
PacWest Bancorp Consolidated:
Tier 1 leverage capital ratio (1)		8.66	%		8.93	%		8.63	%		9.74	%		9.50	%
Common equity tier 1 capital ratio (1)		10.46	%		9.97	%		9.22	%		9.78	%		9.55	%
Tier 1 capital ratio (1)		10.46	%		9.97	%		9.22	%		9.78	%		9.55	%
Total capital ratio (1)		13.74	%		13.18	%		12.07	%		12.41	%		12.16	%
Risk-weighted assets (1)	$	22,109,592		$	22,781,836		$	24,214,209		$	23,582,495		$	23,579,614
Equity to assets ratio		12.26	%		12.62	%		12.97	%		18.51	%		18.41	%
Tangible common equity ratio (2)		8.71	%		8.93	%		9.10	%		9.79	%		9.65	%
Book value per share	$	29.42		$	29.17		$	28.75		$	41.36		$	41.06
Tangible book value per share (2)	$	20.09		$	19.80		$	19.31		$	19.77		$	19.43
Pacific Western Bank:
Tier 1 leverage capital ratio (1)		9.70	%		10.03	%		9.71	%		10.95	%		10.72	%
Common equity tier 1 capital ratio (1)		11.71	%		11.18	%		10.38	%		11.00	%		10.79	%
Tier 1 capital ratio (1)		11.71	%		11.18	%		10.38	%		11.00	%		10.79	%
Total capital ratio (1)		12.97	%		12.44	%		11.39	%		11.74	%		11.52	%

(1) Capital information for September 30, 2020 is preliminary.

(2) Non-GAAP measure.

Page 20

GAAP TO NON-GAAP RECONCILIATIONS

This press release contains certain non-GAAP financial disclosures for: (1) PPNR, (2) PPNR return on average assets (3) return on average tangible equity, (4) tangible common equity ratio, and (5) tangible book value per share. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. In particular, the use of return on average tangible equity, tangible common equity ratio, tangible book value per share, and PPNR is prevalent among banking regulators, investors, and analysts. Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) net earnings, (2) return on average assets, (3) return on average equity, (4) equity to assets ratio, and (5) book value per share.

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

	Three Months Ended									Nine Months Ended
PPNR and PPNR Return	September 30,			June 30,			September 30,			September 30,
on Average Assets	2020			2020			2019			2020			2019
	(Dollars in thousands)
Net earnings (loss)	$	45,503		$	33,204		$	110,026		$	(1,354,404	)	$	350,755
Add: Provision for credit losses		97,000			120,000			7,000			329,000			19,000
Add: Goodwill impairment		-			-			-			1,470,000			-
Add: Income tax expense		13,671			12,968			41,830			38,627			135,118
Pre-provision, pre-goodwill impairment, pre-tax net revenue ("PPNR")	$	156,174		$	166,172		$	158,856		$	483,223		$	504,873
Average assets	$	27,935,193		$	26,621,227		$	26,406,603		$	27,221,102		$	26,012,890
Return on average assets (1)		0.65	%		0.50	%		1.65	%		(6.65	)%		1.80	%
PPNR return on average assets (2)		2.22	%		2.51	%		2.39	%		2.37	%		2.59	%

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

(2) Annualized PPNR divided by average assets. 

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
Return on Average Tangible Equity	2020			2020			2019			2020			2019
	(Dollars in thousands)
Net earnings (loss)	$	45,503		$	33,204		$	110,026		$	(1,354,404	)	$	350,755
Add: Intangible asset amortization		3,751			3,882			4,833			11,581			14,573
Add: Goodwill impairment		-			-			-			1,470,000			-
Adjusted net earnings	$	49,254		$	37,086		$	114,859		$	127,177		$	365,328
Average stockholders' equity	$	3,497,869		$	3,446,850		$	4,890,746		$	3,965,453		$	4,842,140
Less: Average intangible assets		1,107,548			1,111,302			2,593,925			1,594,231			2,598,806
Average tangible common equity	$	2,390,321		$	2,335,548		$	2,296,821		$	2,371,222		$	2,243,334
Return on average equity (1)		5.18	%		3.87	%		8.93	%		(45.62	)%		9.68	%
Return on average tangible equity (2)		8.20	%		6.39	%		19.84	%		7.16	%		21.77	%

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

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

Page 21

Tangible Common Equity Ratio/	September 30,			June 30,			March 31,			December 31,			September 30,
Tangible Book Value Per Share	2020			2020			2020			2019			2019
	(Dollars in thousands, except per share data)
Stockholders' equity	$	3,486,231		$	3,452,898		$	3,390,389		$	4,954,697		$	4,920,108
Less: Intangible assets		1,105,483			1,109,234			1,113,116			2,587,064			2,591,217
Tangible common equity	$	2,380,748		$	2,343,664		$	2,277,273		$	2,367,633		$	2,328,891
Total assets	$	28,426,716		$	27,365,738		$	26,143,267		$	26,770,806		$	26,724,627
Less: Intangible assets		1,105,483			1,109,234			1,113,116			2,587,064			2,591,217
Tangible assets	$	27,321,233		$	26,256,504		$	25,030,151		$	24,183,742		$	24,133,410
Equity to assets ratio		12.26	%		12.62	%		12.97	%		18.51	%		18.41	%
Tangible common equity ratio (1)		8.71	%		8.93	%		9.10	%		9.79	%		9.65	%
Book value per share	$	29.42		$	29.17		$	28.75		$	41.36		$	41.06
Tangible book value per share (2)	$	20.09		$	19.80		$	19.31		$	19.77		$	19.43
Shares outstanding		118,489,927			118,374,603			117,916,789			119,781,605			119,831,192

(1) Tangible common equity divided by tangible assets.

(2) Tangible common equity divided by shares outstanding.

Page 22