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Community organizations in California are urging regulators to postpone approval of PacWest Bancorp's (PACW) acquisition of CapitalSource (CSE), arguing that PacWest lacks CapitalSource's commitment to serving community needs and economically disadvantaged groups.
October 4 -
Normally low-profile PacWest CEO Matt Wagner could get a night gig emceeing roasts or appearing at an L.A. comedy store, a sometimes-lighthearted conference call revealed this week.
July 25 -
Executives of PacWest had become frustrated with the shortcomings of traditional, deposit-heavy banks when seeking M&A targets. They reached instead for the prospect of loan growth provided by commercial financier CapitalSource.
July 23 -
PacWest has agreed to buy CapitalSource for $2.3 billion, a transaction that would fulfill CapitalSource's longtime goal of becoming a full-fledged bank. It is the year's biggest bank deal.
July 22 -
Matt Wagner, the persistent CEO of PacWest in L.A., reaches a deal to buy First California six months after reporting that the Westlake Village, Calif., company spurned his initial overture.
November 6
PacWest Bancorp (PACW) in Los Angeles doubled its profits in the third quarter thanks to its
That acquisition, completed in May, paid off in higher loan income and a $5.2 million securities gain.
Meanwhile, PacWest
The $6.6 billion-asset PacWest reported earnings of $24.2 million in the third quarter, a 50% increase from the same period in 2012. PacWest's net interest income rose 16%, to $82.3 million, thanks to organic loan growth and higher securities revenue as well as loans acquired from First California. Its net interest margin was 5.46%, down 12 basis points.
PacWest's noninterest income fell 11%, to $5.1 million. The $5.2 million securities gain related to the First California acquisition was partially offset by FDIC loss-sharing expenses of $7 million. Noninterest expenses rose 9%, to $56.2 million, as the company saw increases in overhead from the First California acquisition and took on costs associated with its deal for CapitalSource.
PacWest recovered $4.2 million from loan-loss provisions, compared with a recovery of $2.1 million in the third quarter of 2012. Net chargeoffs totaled $2.1 million, an increase of 100%.
PacWest announced plans to
CapitalSource, with $7.9 billion of assets, on Wednesday reported that third-quarter profit rose 13% from a year earlier, to $38.4 million. Noninterest income climbed 69%, to $15.7 million, on revenue from loan fees, investments, leased equipment and other sources.
Meanwhile, CapitalSource's net interest income fell 2% to $94 million. Lower revenue from loans and leases and higher deposit expenses contributed to the decline. Its net interest margin fell 11 basis points to 4.86%.
Noninterest expenses stayed relatively flat at $47.6 million, a 1% increase.
CapitalSource recovered $1 million from its loan-loss provision, compared with an $8.9 million loan-loss provision in the third quarter of 2012. Net chargeoffs fell by 53% to $1.7 million.
