PacWest Bancorp in Los Angeles reported higher quarterly profit led by its acquisition of Square 1 Financial in Durham, N.C.
The $21 billion-asset PacWest said in a press release Thursday that its first-quarter net income rose 24% from a year earlier, to $90.5 million, or 74 cents a share. PacWest bought Square 1 in October for $847 million.
PacWest said it added about $1.6 billion in loans from the Square 1 deal.
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The world knows JPMorgan's quarterly profits fell and that it flunked the living wills test. But underneath all that were solid first-quarter results in its core lending businesses that bode well for other banks at the start of earnings season.
April 13 -
BofI Holding in San Diego has bought an equipment finance business from PacWest Bancorp in Beverly Hills, Calif.
April 4 -
PacWest Bancorp in Los Angeles has named Stanley Ivie, a regional director for the Federal Deposit Insurance Corp., its chief risk officer and an executive vice president. He started Monday.
March 15
Net interest income, including the loan-loss provision, rose 23% to $224.5 million. Loans and leases rose 17% to $236 million, while the net interest margin narrowed by 42 basis points to 5.53%.
Noninterest income rose 65% to $34.5 million because of higher deposit service charges, increased leased equipment income and a higher securities gains. PacWest, which reduced the amount of its loss-sharing expense, also benefited from a $900,000 loan syndication fee and a $600,000 death benefit on a bank-owned life insurance policy.
Noninterest expense rose 31% to $110.7 million, reflecting higher salary, occupancy, data processing and leased equipment expenses and intangible asset amortization. The efficiency ratio worsened to 38.5% from 36.9%.
