PacWest Bancorp in Los Angeles reported higher quarterly earnings aided by its acquisition of CapitalSource.
The $15.7 billion-asset company's second-quarter profit more than doubled from a year earlier, to $10.6 million.
Net interest income rose 181% from a year earlier, to $193 million. PacWest noted in a press release Monday that it had $143 million of organic loan growth during the quarter, while the net interest margin widened by 102 basis points from a year earlier, to 6.24%.
Noninterest income of $8.5 million was nearly double what the company reported in the first quarter and substantially higher than the $203,000 it reported a year earlier. Much of the difference was tied to CapitalSource, though some of the improvement resulted from lower expenses tied to failed-bank acquisitions.
Noninterest expense more than doubled, to $170 million. The quarter included $86 million in expenses tied to the CapitalSource merger. The company also recorded a $5 million loan-loss provision, ending several quarters of releasing funds from its allowance.