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Net Interest Margin Increases to 5.21% Credit Loss Reserve at 3.30% of Net Non-Covered Loans Nonaccrual Loans and Non-Performing Assets Decline Core Deposits Grow $24.2 Million
LOS ANGELES, Jan. 20, 2011 (GLOBE NEWSWIRE) --
PacWest Bancorp (Nasdaq:PACW) today announced a net loss for the fourth quarter of 2010 of $7.7 million, or $0.22 per diluted share, compared to net earnings of $3.5 million, or $0.10 per diluted share, for the third quarter of 2010. The fourth quarter included a $35.3 million ($20.5 million after-tax) credit loss provision for non-covered loans, of which $14.3 million ($8.3 million after-tax) is attributed to the Company's sale of $74.9 million of classified loans in December 2010 for $54.0 million in cash, and a $1.9 million ($1.1 million after tax) penalty for the early repayment of $50 million of FHLB advances.
As a result of loan sales and other credit management activities, our non-covered loan portfolio credit quality measures improved as shown in the following table:
(Dollars in thousands)
Performing restructured loans
Allowance for credit losses to nonaccrual loans
Allowance for credit losses to loans, net of unearned income
Fourth quarter earnings include the operating results of Los Padres Bank ("Los Padres"), which was acquired in an FDIC-assisted transaction on August 20, 2010 and added $3.3 million in net earnings during the quarter. Los Padres has added $3.7 million in net earnings since its acquisition.