PacWest Bancorp in Los Angeles reported an increase in fourth-quarter profit, the second full quarter after its April acquisition of CapitalSource Bank, a commercial lender that targeted small and medium-sized businesses.
The $16.2 billion-asset company said net earnings were $71 million, or 69 cents per share, one cent below the average estimate of analysts polled by Bloomberg. PacWest reported profit of $3.1 million in the fourth quarter of 2013, before the CapitalSource deal closed.
Net interest income rose to $195 million from the third quarter of this year, on higher accelerated discount accretion resulting from early payoffs of acquired loans. The net interest margin was 5.86%.
Noninterest income fell 22% from the previous quarter, to $12.7 million, in part because of lower commissions and fees due to lower prepayment fees and other loan-related fees.
Noninterest expense fell 3.5% to $92.3 million from the third quarter, on lower foreclosed assets expense and lower operating expenses.