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PacWest Bancorp (PACW) in Los Angeles will take a $12 million after-tax charge in the fourth quarter because of stock awards connected to its pending acquisition of CapitalSource (CSE).
January 2 -
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
PacWest Bancorp (PACW) of Los Angeles reported a
The $6.5 billion-asset company's fourth-quarter earnings fell 84% from a year earlier, to $3.1 million. Earnings per share of 6 cents missed the average estimate of analysts polled by Bloomberg by 15 cents.
PacWest recorded a previously disclosed
The decision to accelerate the vesting "saved the company $21 million in compensation and tax expense that would have been recorded" when the acquisition closes, PacWest Chief Executive Matt Wagner said in a press release Thursday. He said PacWest received shareholder approval for the acquisition last week, adding that he expects to close the transaction by the end of March.
Net-interest income increased 17% from a year earlier, to $81.3 million. Interest income on loans and leases increased $12.5 million, as lower yields offset higher loan volume. The net interest margin compressed by 8 basis points from a year earlier, to 5.41%.
PacWest reported a noninterest loss of $3.9 million, compared to a $2.1 million gain a year earlier, largely because of an increase in loss-sharing expenses tied to the company's purchase of failed banks.
Noninterest expense rose 52% from a year earlier, to $66.1 million, largely because of the accelerated vesting.