Pacwest Bancorp (PACW) Tops Q4 EPS by 10c

Pacwest Bancorp (NASDAQ: PACW) reported Q4 EPS of $0.98, $0.10 better than the analyst estimate of $0.88.

Fourth Quarter 2019 Highlights

• Net Earnings of $117.9 Million, or $0.98 Per Diluted Share
• Loan and Lease Production of $1.0 Billion; $111 Million of Net Loan Growth
• Core Deposits Represents 84% of Total Deposits
• Cost of Average Total Deposits Decreased 12 Basis Points from Q3 to 71 Basis Points
• Net Charge-offs to Average Loans of Two Basis Points

Matt Wagner, President and CEO, commented, “We finished the year with strong earnings and continued improvement in our credit quality metrics and credit costs reflected by our fourth quarter net charge-offs ratio of two basis points. Our fourth quarter results produced a return on assets of 1.77% and a return on tangible equity of 19.98%.”

Mr. Wagner continued, “The strong fourth quarter capped a year of profitable growth and continued our solid operating performance resulting in a 2019 return on assets of 1.80% and return on tangible equity of 20.66%. The de-risking strategy initiated in 2017 has proven to be successful as our net charge-offs ratio decreased from 40 basis points in 2017 to nine basis points in 2019, while the provision for credit losses declined by 63% from $59.0 million for non-PCI loans in 2017 to $22.0 million in 2019. Our strategy and these outstanding operating results allowed us to return $444 million to our stockholders in 2019 through stock repurchases and dividends. Our earnings per share for the full year 2019 increased by 5% over the prior year to $3.90.”

Mr. Wagner added, “In 2019, we successfully completed the rebranding of all of our operating groups under one brand as Pacific Western Bank. As we head into 2020, we will continue to focus on profitable growth and increasing the value of our franchise for our stockholders.”

For earnings history and earnings-related data on Pacwest Bancorp (PACW) click here.

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