PacWest Bancorp in Los Angeles reported lower quarterly profit as higher expenses offset gains from fees and loan growth.
The $21 billion-asset company said in a press release Friday that its second-quarter profit fell 3% from a year earlier to $82.2 million, or 68 cents a share. That was a cent short of the average estimate of analysts polled by Bloomberg.
Net interest income increased by 15% to $233.7 million. Total loans increased by 22%, with notable gains in commercial lending. The net interest margin narrowed by 56 basis points to 5.33%.
Noninterest income rose by 13% to $22 million, with gains across most business lines.
Noninterest expense jumped by 29% to $110 million. Compensation expense increased by 27% to $62 million.
The loan-loss provision was relatively flat at $13.9 million.
