Highlights

• Net Earnings of $78.7 Million, or $0.65 Per Diluted Share
• New Loan and Lease Production of $1.0 Billion; $101 Million of Net Loan Growth
• Core Deposits Increase of $245 Million and Represent 78% of Total Deposits
• Tax Equivalent Net Interest Margin of 5.16%; Tax Equivalent Net Interest Margin Excluding Acquired Loan Discount Accretion of 5.02%

LOS ANGELES, April 17, 2017 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq:PACW) today announced net earnings for first quarter of 2017 of $78.7 million, or $0.65 per diluted share, compared to net earnings for the fourth quarter of 2016 of $85.6 million, or $0.71 per diluted share.  The decrease in net earnings from the prior quarter was primarily due to a decrease in interest income due to a $14.7 million decrease in acquired loan discount accretion as the fourth quarter of 2016 included $13.5 million of discount accretion from the payoff of a single loan.

Matt Wagner, President and CEO, commented, “First quarter 2017 earnings were below our expectations due mostly to an elevated credit provision and significant loan repayment activity. While the higher than expected provision was not driven by newly classified or impaired loans, it was a disappointment. We remain focused on driving high quality growth and minimizing credit costs.”

Patrick Rusnak, Executive Vice President and CFO stated, “Our first quarter tax equivalent NIM excluding acquired loan discount accretion increased one basis point to 5.02%. While the NIM benefitted from the repricing of variable-rate loans, this was partially offset by the mix of loan types that were paid off and originated during the quarter, combined with higher balances and rates on non-core deposits and borrowings.”

Mr. Wagner continued, “We recently announced our pending acquisition of CU Bancorp and are excited about the opportunities created through this transaction. CU Bancorp’s exceptional core deposit franchise and asset sensitive balance sheet will strengthen our position in a rising rate environment. This transaction will increase our scale and operating efficiencies, and will also increase our market share in the highly attractive Southern California market.”

FINANCIAL HIGHLIGHTS

		At or For the Three Months Ended
		March 31,				December 31,
Financial Highlights			2017				2016			Change
		(Dollars in thousands, except per share data)
Net earnings		$	78,668			$	85,647			$	(6,979	)
Diluted earnings per share		$	0.65			$	0.71			$	(0.06	)
Return on average assets			1.47	%			1.59	%			(0.12	)
Return on average tangible equity (1)			13.90	%			14.88	%			(0.98	)
Net interest margin (tax equivalent)			5.16	%			5.47	%			(0.31	)
Net interest margin excluding acquired loan
discount accretion (tax equivalent) (1)			5.02	%			5.01	%			0.01
Efficiency ratio			41.4	%			40.1	%			1.3
Total assets		$	21,927,254			$	21,869,767			$	57,487
Loans and leases, net of deferred fees		$	15,556,689			$	15,455,954			$	100,735
Noninterest-bearing deposits		$	6,789,808			$	6,659,016			$	130,792
Core deposits		$	12,769,073			$	12,523,834			$	245,239
Total deposits		$	16,331,008			$	15,870,611			$	460,397
Noninterest-bearing deposits as percentage
of total deposits			42	%			42	%			-
Core deposits as percentage of total deposits			78	%			79	%			(1	)
Equity to assets ratio			20.56	%			20.48	%			0.08
Tangible common equity ratio (1)			11.67	%			11.54	%			0.13
Book value per share		$	37.13			$	36.93			$	0.20
Tangible book value per share (1)		$	18.95			$	18.71			$	0.24
(1) Non-GAAP measure.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased by $15.9 million to $232.5 million in the first quarter of 2017 compared to $248.3 million in the fourth quarter of 2016 due to lower discount accretion on acquired loans, offset by higher average loan and lease balances.   Total accretion on acquired loans was $6.4 million in the first quarter of 2017 (17 basis points on the loan and lease yield) compared to $21.2 million in the fourth quarter of 2016 (56 basis points on the loan and lease yield).  The decrease in accretion was due primarily to lower accelerated accretion from payoffs on acquired loans, including $13.5 million from the payoff of a nonaccrual purchased credit impaired (“PCI”) loan in the fourth quarter of 2016.  The loan and lease yield for the first quarter of 2017 was 5.94% compared to 6.31% for the fourth quarter of 2016.  The decrease in the loan and lease yield was principally due to the lower discount accretion on acquired loans. Excluding acquired loan discount accretion, the loan and lease yield was 5.77% in the first quarter of 2017 compared to 5.75% in the fourth quarter of 2016.    

The tax equivalent NIM for the first quarter of 2017 was 5.16% compared to 5.47% for the fourth quarter of 2016. The decrease in the NIM was mostly due to lower discount accretion on acquired loans. Such accretion contributed 14 basis points to the NIM in the first quarter of 2017 and 46 basis points to the NIM in the fourth quarter of 2016.  Excluding acquired loan discount accretion, the tax equivalent NIM was 5.02% in the first quarter of 2017 compared to 5.01% in the fourth quarter of 2016.       

The cost of total deposits increased to 0.21% in the first quarter of 2017 from 0.19% in the fourth quarter of 2016 due to higher average costs and balances of non-core interest-bearing deposits.

The tax equivalent net interest income and NIM as well as the loan and lease interest income and loan and lease yield are impacted by volatility in accretion of acquisition discounts on acquired loans and leases. The effects of this are shown in the following tables for the periods indicated:

		Three Months Ended						Three Months Ended
		March 31, 2017						December 31, 2016
					Impact on						Impact on
		Amount			NIM			Amount			NIM
		(Dollars in thousands)
Net interest income/NIM		$	237,235		5.16	%		$	253,131		5.47	%
Less:	Accelerated accretion of acquisition
	discounts from early payoffs of
	acquired loans		(2,944	)	(0.06	)%			(17,454	)	(0.38	)%
	Remaining accretion of Non-PCI loan
	acquisition discounts		(3,505	)	(0.08	)%			(3,726	)	(0.08	)%
	Total acquired loan discount accretion		(6,449	)	(0.14	)%			(21,180	)	(0.46	)%
Net interest income/NIM excluding total
acquired loan discount accretion		$	230,786		5.02	%		$	231,951		5.01	%
		Three Months Ended						Three Months Ended
		March 31, 2017						December 31, 2016
					Impact on						Impact on
					Loan and						Loan and
		Amount			Lease Yield			Amount			Lease Yield
		(Dollars in thousands)
Loan and lease interest income/Yield		$	224,178		5.94	%		$	238,223		6.31	%
Less:	Accelerated accretion of acquisition
	discounts from early payoffs of
	acquired loans		(2,944	)	(0.08	)%			(17,454	)	(0.46	)%
	Remaining accretion of Non-PCI loan
	acquisition discounts		(3,505	)	(0.09	)%			(3,726	)	(0.10	)%
	Total acquired loan discount accretion		(6,449	)	(0.17	)%			(21,180	)	(0.56	)%
Loan and lease interest income/Yield excluding
total acquired loan discount accretion		$	217,729		5.77	%		$	217,043		5.75	%

Noninterest Income

Noninterest income increased by $6.2 million to $35.1 million in the first quarter of 2017 compared to $28.9 million in the fourth quarter of 2016 due mostly to a $7.9 million increase in other income attributable mainly to a $5.0 million legal settlement with a former borrower and a $1.2 million increase in loan syndication fees. This was offset by a decrease in other commissions and fees of $1.6 million driven by a decrease in loan prepayment and unused commitment fees of $2.0 million. Warrant income decreased $0.9 million mainly due to lower realized gains on exercised warrants.   

The following table presents details of noninterest income for the periods indicated:   

	Three Months Ended
	March 31,				December 31,			Increase
Noninterest Income		2017				2016		(Decrease)
	(In thousands)
Service charges on deposit accounts	$	3,758			$	3,557		$	201
Other commissions and fees		10,390				12,036			(1,646	)
Leased equipment income		9,475				8,614			861
Gain on sale of loans and leases		712				119			593
Gain (loss) on sale of securities		(99	)			515			(614	)
FDIC loss sharing expense, net		-				-			-
Other income:
Dividends and realized gains on equity investments		1,345				1,453			(108	)
Warrant income		155				1,101			(946	)
Other		9,378				1,500			7,878
Total noninterest income	$	35,114			$	28,895		$	6,219

Noninterest Expense

Noninterest expense decreased by $2.1 million to $116.5 million in the first quarter of 2017 compared to $118.6 million in the fourth quarter of 2016. The decrease was due mostly to a decrease in foreclosed assets expense of $2.6 million, a decrease in other professional services expense of $1.5 million, and a decrease in compensation expense of $1.1 million, offset by an increase in other expense of $1.5 million.  Foreclosed assets expense decreased primarily due to a $2.6 million write-down recorded in the fourth quarter of 2016.  Other professional services expense decreased due to lower legal expense and consulting expense. The $1.1 million reduction in compensation expense was attributable to lower bonus and severance expense, offset by a seasonal increase in payroll taxes. The increase in other expense is mainly attributable to a $1.5 million accrual to increase our reserve for probable loss contingencies.

The following table presents details of noninterest expense for the periods indicated:

	Three Months Ended
	March 31,			December 31,			Increase
Noninterest Expense		2017			2016		(Decrease)
	(In thousands)
Compensation	$	64,880		$	66,013		$	(1,133	)
Occupancy		11,608			12,076			(468	)
Data processing		7,015			6,574			441
Other professional services		3,378			4,880			(1,502	)
Insurance and assessments		4,791			4,124			667
Intangible asset amortization		3,064			3,176			(112	)
Leased equipment depreciation		5,625			5,291			334
Foreclosed assets expense (income), net		143			2,693			(2,550	)
Acquisition, integration and reorganization costs		500			-			500
Other expense:
Loan expense		3,387			3,140			247
Other		12,153			10,655			1,498
Total noninterest expense	$	116,544		$	118,622		$	(2,078	)

Income Taxes

The overall effective income tax rate was 37.7% in the first quarter of 2017 and 36.7% in the fourth quarter of 2016.  The estimated effective tax rate for the full year 2017 is approximately 38.1%. 

BALANCE SHEET HIGHLIGHTS

Loans and Leases

Total loans and leases increased by $100.7 million in the first quarter of 2017 to $15.6 billion at March 31, 2017.  The net increase was driven by first quarter originations and purchases of $1.0 billion, offset partially by principal repayments of $0.9 billion. A portfolio of 56 multi-family loans with an aggregate principal balance of $183 million was purchased from another bank during the first quarter of 2017.

The following table presents a roll forward of the loan and lease portfolio for the periods indicated:

	Three Months Ended
	March 31,				December 31,
Loan and Lease Roll Forward (1)		2017				2016
	(Dollars in thousands)
Beginning balance	$	15,455,954			$	14,742,846
New production		1,048,841				1,272,900
Existing loans and leases:
Principal repayments, net (2)		(888,409	)			(526,232	)
Loan and lease sales		(36,461	)			(14,825	)
Transfers to foreclosed assets		(78	)			(652	)
Charge-offs		(23,158	)			(18,083	)
Ending balance	$	15,556,689			$	15,455,954
Weighted average rate on new production		4.91	%			4.83	%
(1) Includes direct financing leases but excludes equipment leased to others under operating leases.
(2) Includes principal repayments on existing loans, changes in revolving lines of credit
(repayments and draws), loan participation sales and other changes within the loan portfolio.

The following table presents the composition of our loan and lease portfolio as of the dates indicated:

	March 31,			December 31,			March 31,
Loan and Lease Portfolio		2017			2016			2016
	(In thousands)
Real estate mortgage:
Commercial	$	4,420,923		$	4,396,696		$	4,640,419
Residential		1,554,946			1,314,036			1,149,998
Total real estate mortgage		5,975,869			5,710,732			5,790,417
Real estate construction and land:
Commercial		668,510			581,246			308,192
Residential		442,051			384,001			269,965
Total real estate construction and land		1,110,561			965,247			578,157
Total real estate loans		7,086,430			6,675,979			6,368,574
Commercial:
Cash flow		3,138,196			3,112,890			3,173,424
Asset-based		2,391,161			2,611,796			2,589,598
Venture capital		1,934,949			1,987,900			1,507,788
Equipment finance		623,237			691,967			733,228
Total commercial		8,087,543			8,404,553			8,004,038
Consumer		382,716			375,422			110,905
Total loans and leases, net of
deferred fees	$	15,556,689		$	15,455,954		$	14,483,517
Total unfunded loan commitments	$	4,497,373		$	4,166,703		$	3,812,554

Loan growth in the first quarter came primarily from the multi-family mortgage and construction portfolios. High repayment activity in our lender finance portfolio drove the $220 million decline in asset-based loans for the quarter.

Deposits and Client Investment Funds

The following table presents the composition of our deposit portfolio as of the dates indicated:

	March 31,				December 31,				March 31,
Deposit Category		2017				2016				2016
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	6,789,808			$	6,659,016			$	6,139,963
Interest checking deposits		1,509,902				1,448,394				921,189
Money market deposits		3,758,962				3,705,385				3,144,843
Savings deposits		710,401				711,039				764,323
Total core deposits		12,769,073				12,523,834				10,970,318
Brokered non-maturity deposits		1,154,070				1,174,487				985,784
Total non-maturity deposits		13,923,143				13,698,321				11,956,102
Time deposits $250,000 and under		1,998,597				1,758,434				2,752,315
Time deposits over $250,000		409,268				413,856				732,958
Total time deposits		2,407,865				2,172,290				3,485,273
Total deposits	$	16,331,008			$	15,870,611			$	15,441,375
Noninterest-bearing demand deposits
as percentage of total deposits		42	%			42	%			40	%
Core deposits as percentage of total deposits		78	%			79	%			71	%

At March 31, 2017, core deposits totaled $12.8 billion, or 78% of total deposits, including $6.8 billion of noninterest-bearing demand deposits, or 42% of total deposits. 

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at March 31, 2017 were $1.5 billion, of which $1.3 billion was managed by S1AM.

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

A provision for credit losses of $24.7 million was recorded in the first quarter of 2017 compared to $23.2 million in the fourth quarter of 2016. The first quarter provision consisted of $24.5 million for non-purchased credit impaired (“Non-PCI”) loans and leases and $0.2 million for PCI loans; this compares to $21.0 million and $2.2 million for the fourth quarter of 2016.  The level of provision for the first quarter of 2017 was mainly attributable to specific provisions for impaired loans that were classified or impaired at December 31, 2016 and general provisions from increased general reserve loss factors which are influenced by net charge-off experience. The allowance for Non-PCI credit losses to Non-PCI loans and leases coverage ratio was 1.08% and 1.05% at March 31, 2017 and December 31, 2016.

The following tables show roll forwards of the allowance for credit losses for the periods indicated:

	Three Months Ended March 31, 2017
	Non-PCI
Allowance for Credit	Loans and				Unfunded			Total				PCI
Losses Rollforward	Leases				Commitments			Non-PCI				Loans				Total
	(In thousands)
Beginning balance	$	143,755			$	17,523		$	161,278			$	13,483			$	174,761
Charge-offs		(20,928	)			-			(20,928	)			(2,230	)			(23,158	)
Recoveries		2,739				-			2,739				-				2,739
Net (charge-offs) recoveries		(18,189	)			-			(18,189	)			(2,230	)			(20,419	)
Provision		24,260				240			24,500				228				24,728
Ending balance	$	149,826			$	17,763		$	167,589			$	11,481			$	179,070
	Three Months Ended December 31, 2016
	Non-PCI
Allowance for Credit	Loans and				Unfunded			Total				PCI
Losses Rollforward	Leases				Commitments			Non-PCI				Loans				Total
	(In thousands)
Beginning balance	$	136,747			$	17,323		$	154,070			$	11,229			$	165,299
Charge-offs		(18,083	)			-			(18,083	)			-				(18,083	)
Recoveries		4,291				-			4,291				39				4,330
Net charge-offs		(13,792	)			-			(13,792	)			39				(13,753	)
Provision		20,800				200			21,000				2,215				23,215
Ending balance	$	143,755			$	17,523		$	161,278			$	13,483			$	174,761

The gross charge-offs for the first quarter of 2017 included approximately $12.5 million related to two healthcare cash flow loans for which $7.5 million of specific reserves were recorded as of the prior quarter-end. Approximately $5.5 million of the gross charge-offs were associated with four venture capital loans for which $3.2 million of specific reserves were recorded as of the prior quarter-end. The annualized ratio of net charge-offs to total average loans for the quarter ended March 31, 2017 was 0.48%.  

All acquired loans are recorded initially at their estimated fair value including an estimate of credit losses. The table below presents two alternative views of credit risk coverage ratios for Non-PCI loans reflecting adjustments for acquired loans and leases and associated purchase accounting discounts:

	March 31, 2017										December 31, 2016
Non-PCI Adjusted	Non-PCI										Non-PCI
Allowance for Credit Losses	Loans and			Allowance/				Coverage			Loans and			Allowance/				Coverage
to Loans and Leases	Leases			Discount				Ratio			Leases			Discount				Ratio
	(Dollars in thousands)
Adjustment for Acquired
Loans and Leases and
Related Allowance:
Ending balance	$	15,526,518		$	167,589			1.08	%		$	15,412,092		$	161,278				1.05	%
Acquired loans and allowance		(3,965,423	)		(42,807	)	(1)					(4,413,176	)		(44,352	)	(1)
Adjusted balance	$	11,561,095		$	124,782			1.08	%		$	10,998,916		$	116,926				1.06	%
Adjustment for Unamortized
Purchase Discount on
Acquired Loans and Leases:
Ending balance	$	15,526,518		$	167,589			1.08	%		$	15,412,092		$	161,278				1.05	%
Unamortized purchase discount		39,347			39,347		(2)					45,639			45,639		(2)
Adjusted balance	$	15,565,865		$	206,936			1.33	%		$	15,457,731		$	206,917				1.34	%
(1) Allowance attributed to $4.0 billion and $4.4 billion of acquired Non-PCI loans at March 31, 2017 and December 31, 2016,
based on the allowance calculation that includes an amount for credit deterioration on acquired loans and leases since their
acquisition dates.
(2) Unamortized purchase discount relates to $4.0 billion and $4.4 billion of acquired Non-PCI loans at March 31, 2017 and
December 31, 2016, and is assigned specifically to those loans only.  Such discount represents the acquisition date fair value
adjustment based on market, liquidity, interest rate risk and credit risk and is being accreted to interest income
over the remaining life of the respective loans using the interest method.  Use of the interest method results in steadily
declining amounts being taken into income in each reporting period.  The remaining discount of $39.3 million at
March 31, 2017, is expected to be substantially accreted to income by the end of 2018.

CREDIT QUALITY

The following table presents Non-PCI loan and lease credit quality metrics as of the dates indicated:

	March 31,				December 31,
Non-PCI Credit Quality Metrics		2017				2016
	(Dollars in thousands)
Nonaccrual loans and leases	$	173,030			$	170,599
Classified loans and leases		424,399				409,645
Performing troubled debt restructured loans		56,947				64,952
Allowance for credit losses		167,589				161,278
Net charge-offs (for the quarter)		18,189				13,792
Provision for credit losses (for the quarter)		24,500				21,000
Allowance for credit losses to loans and leases		1.08	%			1.05	%
Allowance for credit losses to nonaccrual loans
and leases		96.9	%			94.5	%
Nonaccrual loans and leases to loans and leases		1.11	%			1.11	%
Nonperforming assets to loans and leases and
foreclosed assets		1.20	%			1.19	%
Classified loans and leases to loans and leases		2.73	%			2.66	%

The following table presents Non-PCI nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by portfolio segment and class as of the dates indicated:

	Non-PCI Nonaccrual Loans and Leases										Non-PCI Accruing and
	March 31, 2017					December 31, 2016					30-89 Days Past Due
			% of					% of			March 31,			December 31,
			Loan					Loan				2017			2016
	Amount		Category			Amount		Category			Amount			Amount
	(Dollars in thousands)
Real estate mortgage:
Commercial	$	66,216	1.5	%		$	62,454	1.4	%		$	7,383		$	7,691
Residential		5,826	0.4	%			6,881	0.5	%			640			5,524
Total real estate mortgage		72,042	1.2	%			69,335	1.2	%			8,023			13,215
Real estate construction and land:
Commercial		-	0.0	%			-	0.0	%			-			-
Residential		362	0.1	%			364	0.1	%			-			-
Total real estate
construction and land		362	0.0	%			364	0.0	%			-			-
Commercial:
Cash flow		53,611	1.7	%			53,908	1.7	%			394			153
Asset-based		1,165	0.0	%			2,118	0.1	%			-			1,500
Venture capital		15,289	0.8	%			11,687	0.6	%			13,265			13,295
Equipment finance		30,388	4.9	%			32,848	4.7	%			115			218
Total commercial		100,453	1.2	%			100,561	1.2	%			13,774			15,166
Consumer		173	0.0	%			339	0.1	%			49			224
Total Non-PCI loans and
leases	$	173,030	1.1	%		$	170,599	1.1	%		$	21,846		$	28,605

The following table presents nonperforming assets as of the dates indicated:

	March 31,				December 31,
Nonperforming Assets		2017				2016
	(Dollars in thousands)
Nonaccrual Non-PCI loans and leases	$	173,030			$	170,599
Nonaccrual PCI loans		2,404				2,928
Total nonaccrual loans and leases		175,434				173,527
Foreclosed assets, net		12,842				12,976
Total nonperforming assets	$	188,276			$	186,503
Nonaccrual loans and leases to loans and leases		1.12	%			1.12	%
Nonperforming assets to loans and leases
and foreclosed assets		1.20	%			1.20	%

CU BANCORP MERGER ANNOUNCEMENT

On April 6, 2017, PacWest announced the signing of a definitive agreement and plan of merger (the “Agreement”) whereby PacWest will acquire CU Bancorp in a transaction valued at approximately $705 million. 

CU Bancorp, headquartered in Los Angeles, California, is the parent of California United Bank, a California state-chartered non-member bank, with approximately $3.0 billion in assets and nine branches located in Los Angeles, Orange, Ventura, and San Bernardino counties at December 31, 2016. In connection with the transaction, California United Bank will be merged into Pacific Western Bank, the principal operating subsidiary of PacWest Bancorp.

The transaction, which was approved by the PacWest and CU Bancorp boards of directors, is expected to close in the fourth quarter of 2017 and is subject to customary closing conditions, including obtaining approval by CU Bancorp’s shareholders and bank regulatory authorities.

As of December 31, 2016, on a pro forma consolidated basis, the combined company would have approximately $25.0 billion in assets and 87 branches, prior to contemplated consolidations.

Under terms of the Agreement, CU Bancorp shareholders will receive 0.5308 shares of PacWest common stock and $12.00 in cash for each share of CU Bancorp. Based on PacWest’s April 5, 2017 closing price of $51.72, the total value of the merger consideration is $39.45 per CU Bancorp share.

ABOUT PACWEST BANCORP

PacWest Bancorp (“PacWest”) is a bank holding company with over $21 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. We provide commercial banking services, including real estate, construction, and commercial loans, and comprehensive deposit and treasury management services to small and medium-sized businesses.  We offer additional products and services through our CapitalSource and Square 1 Bank divisions. Our CapitalSource Division provides cash flow, asset-based, equipment and real estate loans and treasury management services to established middle market businesses on a national basis.  Our Square 1 Bank Division offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovation hubs across the United States.  For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

FORWARD LOOKING STATEMENTS

This release contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results and metrics and including statements about our expectations regarding our pending merger between the Company and CU Bancorp. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. These risks and uncertainties include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; the impact of changes in interest rates or levels of market activity, especially on our loan and investment portfolios; deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business (including the levels of IPOs and M&A activities); changes in credit quality and the effect of credit quality on our provision for loan and lease losses and allowance for loan and leases losses; our ability to attract deposits and other sources of funding or liquidity; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; the Company’s ability to complete the proposed CU Bancorp transaction, including by obtaining regulatory approvals and approval by the shareholders of CU Bancorp, or any future transaction, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected timeframes or at all; changes in the Company’s stock price before completion of the CU Bancorp merger, including as a result of the financial performance of the Company or CU Bancorp before closing; and our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including the Annual Report on Form 10-K for the year ended December 31, 2016, and particularly the discussion of risk factors within that document.

All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION AND WHERE TO FIND IT

Investors and security holders are urged to carefully review and consider each of PacWest’s and CU Bancorp’s public filings with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Current Reports on Form 8-K and their Quarterly Reports on Form 10-Q. The documents filed by PacWest with the SEC may be obtained free of charge at PacWest’s website at www.pacwestbancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from PacWest by requesting them in writing to PacWest Bancorp, 9701 Wilshire Boulevard, Suite 700, Beverly Hills, CA 90212; Attention: Investor Relations, by submitting an email request to investor-relations@pacwestbancorp.com or by telephone at (310) 887-8521.

The documents filed by CU Bancorp with the SEC may be obtained free of charge at CU Bancorp’s website at www.cubancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from CU Bancorp by requesting them in writing to CU Bancorp, 818 W. 7th Street, Suite 220, Los Angeles, CA 90017; Attention: Investor Relations, or by telephone at 818-257-7700.

PacWest intends to file a registration statement with the SEC which will include a proxy statement of CU Bancorp and a prospectus of PacWest, and each party will file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision, investors and security holders of CU Bancorp are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. A definitive proxy statement/prospectus will be sent to the shareholders of CU Bancorp seeking any required shareholder approvals. Investors and security holders will be able to obtain the registration statement and the proxy statement/prospectus free of charge from the SEC’s website or from PacWest or CU Bancorp by writing to the addresses provided for each company set forth in the paragraphs above.

PacWest, CU Bancorp, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from CU Bancorp shareholders in favor of the approval of the transaction. Information about the directors and executive officers of PacWest and their ownership of PacWest common stock is set forth in the proxy statement for PacWest’s 2017 annual meeting of stockholders, as previously filed with the SEC. Information about the directors and executive officers of CU Bancorp and their ownership of CU Bancorp common shares is set forth in the proxy statement for CU Bancorp’s 2016 annual meeting of shareholders, as previously filed with the SEC. Shareholders may obtain additional information regarding the interests of such participants by reading the registration statement and the proxy statement/prospectus when they become available.

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
	March 31,				December 31,
		2017				2016
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	184,608			$	337,965
Interest-earning deposits in financial institutions		111,892				81,705
Total cash and cash equivalents		296,500				419,670
Securities available-for-sale, at estimated fair value		3,336,992				3,223,830
Federal Home Loan Bank stock, at cost		17,901				21,870
Total investment securities		3,354,893				3,245,700
Non-PCI loans and leases		15,526,518				15,412,092
PCI loans		96,353				108,445
Total gross loans and leases		15,622,871				15,520,537
Deferred fees, net		(66,182	)			(64,583	)
Total loans and leases, net of deferred fees		15,556,689				15,455,954
Allowance for loan and lease losses		(161,307	)			(157,238	)
Total loans and leases, net		15,395,382				15,298,716
Equipment leased to others under operating leases		224,580				229,905
Premises and equipment, net		28,908				38,594
Foreclosed assets, net		12,842				12,976
Deferred tax asset, net		88,765				94,112
Goodwill		2,173,949				2,173,949
Core deposit and customer
relationship intangibles, net		33,302				36,366
Other assets		318,133				319,779
Total assets	$	21,927,254			$	21,869,767
LIABILITIES:
Noninterest-bearing deposits	$	6,789,808			$	6,659,016
Interest-bearing deposits		9,541,200				9,211,595
Total deposits		16,331,008				15,870,611
Borrowings		460,609				905,812
Subordinated debentures		442,516				440,744
Accrued interest payable and other liabilities		185,015				173,545
Total liabilities		17,419,148				17,390,712
STOCKHOLDERS' EQUITY (1)		4,508,106				4,479,055
Total liabilities and stockholders’ equity	$	21,927,254			$	21,869,767
Book value per share	$	37.13			$	36.93
Tangible book value per share (2)	$	18.95			$	18.71
Shares outstanding		121,408,133				121,283,669
(1) Includes net unrealized gain on securities
available-for-sale, net	$	12,718			$	5,982
(2) Non-GAAP measure.

PACWEST BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
	Three Months Ended
	March 31,				December 31,				March 31,
		2017				2016				2016
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	224,178			$	238,223			$	236,375
Investment securities		23,039				23,403				22,547
Deposits in financial institutions		192				147				308
Total interest income		247,409				261,773				259,230
Interest expense:
Deposits		8,377				7,369				9,073
Borrowings		1,018				631				581
Subordinated debentures		5,562				5,468				4,982
Total interest expense		14,957				13,468				14,636
Net interest income		232,452				248,305				244,594
Provision for credit losses		24,728				23,215				20,140
Net interest income after provision
for credit losses		207,724				225,090				224,454
Noninterest income:
Service charges on deposit accounts		3,758				3,557				3,856
Other commissions and fees		10,390				12,036				11,489
Leased equipment income		9,475				8,614				8,244
Gain on sale of loans and leases		712				119				245
Gain (loss) on sale of securities		(99	)			515				8,110
FDIC loss sharing expense, net		-				-				(2,415	)
Other income		10,878				4,054				5,010
Total noninterest income		35,114				28,895				34,539
Noninterest expense:
Compensation		64,880				66,013				61,065
Occupancy		11,608				12,076				12,632
Data processing		7,015				6,574				5,904
Other professional services		3,378				4,880				3,572
Insurance and assessments		4,791				4,124				4,965
Intangible asset amortization		3,064				3,176				4,746
Leased equipment depreciation		5,625				5,291				5,024
Foreclosed assets expense (income), net		143				2,693				(561	)
Acquisition, integration and
reorganization costs		500				-				200
Other expense		15,540				13,795				13,141
Total noninterest expense		116,544				118,622				110,688
Earnings before income taxes		126,294				135,363				148,305
Income tax expense		(47,626	)			(49,716	)			(57,849	)
Net earnings	$	78,668			$	85,647			$	90,456
Basic and diluted earnings per share	$	0.65			$	0.71			$	0.74

PACWEST BANCORP AND SUBSIDIARIES
NET EARNINGS PER SHARE CALCULATIONS
	Three Months Ended
	March 31,				December 31,				March 31,
		2017				2016				2016
	(In thousands, except per share data)
Basic Earnings Per Share:
Net earnings	$	78,668			$	85,647			$	90,456
Less: earnings allocated to unvested
restricted stock (1)		(999	)			(1,004	)			(1,067	)
Net earnings allocated to common
shares	$	77,669			$	84,643			$	89,389
Weighted-average basic shares and
unvested restricted stock outstanding		121,346				121,464				121,598
Less: weighted-average unvested
restricted stock outstanding		(1,503	)			(1,450	)			(1,392	)
Weighted-average basic shares
outstanding		119,843				120,014				120,206
Basic earnings per share	$	0.65			$	0.71			$	0.74
Diluted Earnings Per Share:
Net earnings allocated to common
shares	$	77,669			$	84,643			$	89,389
Weighted-average basic shares
outstanding		119,843				120,014				120,206
Diluted earnings per share	$	0.65			$	0.71			$	0.74
(1) Represents cash dividends paid to holders of unvested stock, net of estimated forfeitures, plus
undistributed earnings amounts available to holders of unvested restricted stock, if any.

PACWEST BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
	Three Months Ended
	March 31, 2017							December 31, 2016							March 31, 2016
			Interest		Average					Interest		Average					Interest		Average
	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
	Balance		Expense		Cost			Balance		Expense		Cost			Balance		Expense		Cost
	(Dollars in thousands)
Assets:
PCI loans	$	89,335	$	4,250	19.29	%		$	104,234	$	17,481	66.72	%		$	167,626	$	20,072	48.16	%
Non-PCI loans and leases		15,207,709		219,928	5.86	%			14,904,034		220,742	5.89	%			14,303,539		216,303	6.08	%
Total loans and leases		15,297,044		224,178	5.94	%			15,008,268		238,223	6.31	%			14,471,165		236,375	6.57	%
Investment securities (1)		3,257,448		27,822	3.46	%			3,293,003		28,229	3.41	%			3,460,293		27,493	3.20	%
Deposits in financial
institutions		100,751		192	0.77	%			111,918		147	0.52	%			230,293		308	0.54	%
Total interest-earning
assets		18,655,243		252,192	5.48	%			18,413,189		266,599	5.76	%			18,161,751		264,176	5.85	%
Other assets		2,990,291							3,014,761							3,036,843
Total assets	$	21,645,534						$	21,427,950						$	21,198,594
Liabilities and
Stockholders' Equity:
Interest checking	$	1,505,439		1,167	0.31	%		$	1,449,346		951	0.26	%		$	926,256		383	0.17	%
Money market		4,866,720		4,410	0.37	%			4,740,944		3,672	0.31	%			3,848,753		2,415	0.25	%
Savings		711,529		298	0.17	%			751,817		331	0.18	%			753,371		444	0.24	%
Time		2,246,547		2,502	0.45	%			2,384,973		2,415	0.40	%			3,860,272		5,831	0.61	%
Total interest-bearing
deposits		9,330,235		8,377	0.36	%			9,327,080		7,369	0.31	%			9,388,652		9,073	0.39	%
Borrowings		596,903		1,018	0.69	%			505,567		631	0.50	%			494,725		581	0.47	%
Subordinated debentures		441,521		5,562	5.11	%			440,907		5,468	4.93	%			436,535		4,982	4.59	%
Total interest-bearing
liabilities		10,368,659		14,957	0.59	%			10,273,554		13,468	0.52	%			10,319,912		14,636	0.57	%
Noninterest-bearing
demand deposits		6,595,346							6,496,221							6,273,249
Other liabilities		177,854							156,227							166,831
Total liabilities		17,141,859							16,926,002							16,759,992
Stockholders' equity		4,503,675							4,501,948							4,438,602
Total liabilities and
stockholders' equity	$	21,645,534						$	21,427,950						$	21,198,594
Net interest income (2)			$	237,235						$	253,131						$	249,540
Net interest spread (2)					4.89	%						5.24	%						5.28	%
Net interest margin (2)					5.16	%						5.47	%						5.53	%
Total deposits (3)	$	15,925,581	$	8,377	0.21	%		$	15,823,301	$	7,369	0.19	%		$	15,661,901	$	9,073	0.23	%
Funding sources (4)	$	16,964,005	$	14,957	0.36	%		$	16,769,775	$	13,468	0.32	%		$	16,593,161	$	14,636	0.35	%
(1) Includes tax equivalent adjustments of $4.8 million, $4.8 million, and $4.9 million for the three months ended March 31, 2017, December 31, 2016,
and March 31, 2016 related to tax exempt income on municipal securities.  The federal statutory tax rate utilized was 35% for the periods.
(2) Tax equivalent.
(3) Total deposits is the sum of total interest-bearing deposits and noninterest-bearing demand deposits.  The cost of total deposits is calculated as
annualized interest expense on deposits divided by average total deposits.
(4) Funding sources is the sum of total interest-bearing liabilities and noninterest-bearing demand deposits. The cost of funding sources is calculated
as annualized total interest expense divided by average funding sources.

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER BALANCE SHEET
	March 31,				December 31,				September 30,				June 30,				March 31,
		2017				2016				2016				2016				2016
	(Dollars in thousands, except per share data)
ASSETS:
Cash and due from banks	$	184,608			$	337,965			$	286,371			$	226,471			$	161,977
Interest-earning deposits in financial
institutions		111,892				81,705				253,994				218,882				357,541
Total cash and cash equivalents		296,500				419,670				540,365				445,353				519,518
Securities available-for-sale		3,336,992				3,223,830				3,341,335				3,347,546				3,240,586
Federal Home Loan Bank stock		17,901				21,870				19,386				24,214				17,250
Total investment securities		3,354,893				3,245,700				3,360,721				3,371,760				3,257,836
Non-PCI loans and leases		15,526,518				15,412,092				14,686,206				14,566,425				14,365,915
PCI loans		96,353				108,445				120,221				136,901				176,607
Total gross loans and leases		15,622,871				15,520,537				14,806,427				14,703,326				14,542,522
Deferred fees, net		(66,182	)			(64,583	)			(63,581	)			(61,866	)			(59,005	)
Total loans and leases, net of
deferred fees		15,556,689				15,455,954				14,742,846				14,641,460				14,483,517
Allowance for loan and lease losses		(161,307	)			(157,238	)			(147,976	)			(143,289	)			(130,361	)
Total loans and leases, net		15,395,382				15,298,716				14,594,870				14,498,171				14,353,156
Equipment leased to others under
operating leases		224,580				229,905				198,931				204,062				205,163
Premises and equipment, net		28,908				38,594				38,977				38,718				39,713
Foreclosed assets, net		12,842				12,976				15,113				16,181				18,310
Deferred tax asset, net		88,765				94,112				27,073				24,413				91,126
Goodwill		2,173,949				2,173,949				2,173,949				2,175,791				2,175,791
Core deposit and customer
relationship intangibles, net		33,302				36,366				39,542				43,766				48,137
Other assets		318,133				319,779				325,750				328,924				322,259
Total assets	$	21,927,254			$	21,869,767			$	21,315,291			$	21,147,139			$	21,031,009
LIABILITIES:
Noninterest-bearing deposits	$	6,789,808			$	6,659,016			$	6,521,946			$	6,222,696			$	6,139,963
Interest-bearing deposits		9,541,200				9,211,595				9,123,722				8,925,313				9,301,412
Total deposits		16,331,008				15,870,611				15,645,668				15,148,009				15,441,375
Borrowings		460,609				905,812				541,011				918,208				551,401
Subordinated debentures		442,516				440,744				441,112				439,322				438,723
Accrued interest payable and other
liabilities		185,015				173,545				144,905				128,296				142,918
Total liabilities		17,419,148				17,390,712				16,772,696				16,633,835				16,574,417
STOCKHOLDERS' EQUITY (1)		4,508,106				4,479,055				4,542,595				4,513,304				4,456,592
Total liabilities and stockholders’
equity	$	21,927,254			$	21,869,767			$	21,315,291			$	21,147,139			$	21,031,009
Book value per share	$	37.13			$	36.93			$	37.29			$	37.05			$	36.60
Tangible book value per share (2)	$	18.95			$	18.71			$	19.12			$	18.83			$	18.33
Shares outstanding		121,408,133				121,283,669				121,817,524				121,819,849				121,771,252
(1) Includes net unrealized gain on
securities available-for-sale, net	$	12,718			$	5,982			$	72,073			$	81,744			$	48,479
(2) Non-GAAP measure.

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER STATEMENT OF EARNINGS
	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
		2017				2016				2016				2016				2016
	(Dollars in thousands, except per share data)
Interest income:
Loans and leases	$	224,178			$	238,223			$	225,370			$	224,326			$	236,375
Investment securities		23,039				23,403				22,187				22,420				22,547
Deposits in financial institutions		192				147				298				308				308
Total interest income		247,409				261,773				247,855				247,054				259,230
Interest expense:
Deposits		8,377				7,369				7,247				7,823				9,073
Borrowings		1,018				631				695				352				581
Subordinated debentures		5,562				5,468				5,278				5,122				4,982
Total interest expense		14,957				13,468				13,220				13,297				14,636
Net interest income		232,452				248,305				234,635				233,757				244,594
Provision for credit losses		24,728				23,215				8,471				13,903				20,140
Net interest income after provision
for credit losses		207,724				225,090				226,164				219,854				224,454
Noninterest income:
Service charges on deposit accounts		3,758				3,557				3,488				3,633				3,856
Other commissions and fees		10,390				12,036				12,528				11,073				11,489
Leased equipment income		9,475				8,614				8,538				8,523				8,244
Gain on sale of loans and leases		712				119				157				388				245
Gain (loss) on sale of securities		(99	)			515				382				478				8,110
FDIC loss sharing expense, net		-				-				-				(6,502	)			(2,415	)
Other income		10,878				4,054				1,827				4,528				5,010
Total noninterest income		35,114				28,895				26,920				22,121				34,539
Noninterest expense:
Compensation		64,880				66,013				62,661				62,174				61,065
Occupancy		11,608				12,076				12,010				12,193				12,632
Data processing		7,015				6,574				6,234				5,644				5,904
Other professional services		3,378				4,880				4,625				3,401				3,572
Insurance and assessments		4,791				4,124				4,324				4,951				4,965
Intangible asset amortization		3,064				3,176				4,224				4,371				4,746
Leased equipment depreciation		5,625				5,291				5,298				5,286				5,024
Foreclosed assets expense (income), net		143				2,693				(248	)			(3	)			(561	)
Acquisition, integration and
reorganization costs		500				-				-				-				200
Other expense		15,540				13,795				11,582				12,064				13,141
Total noninterest expense		116,544				118,622				110,710				110,081				110,688
Earnings before income taxes		126,294				135,363				142,374				131,894				148,305
Income tax expense		(47,626	)			(49,716	)			(48,479	)			(49,726	)			(57,849	)
Net earnings	$	78,668			$	85,647			$	93,895			$	82,168			$	90,456
Basic and diluted earnings per share	$	0.65			$	0.71			$	0.77			$	0.68			$	0.74

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
	At or For the Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
		2017				2016				2016				2016				2016
	(Dollars in thousands)
Performance Ratios:
Return on average assets (1)		1.47	%			1.59	%			1.77	%			1.57	%			1.72	%
Return on average equity (1)		7.08	%			7.57	%			8.24	%			7.37	%			8.20	%
Return on average tangible equity (1)(2)		13.90	%			14.88	%			16.15	%			14.61	%			16.45	%
Yield on average loans and leases (1)		5.94	%			6.31	%			6.17	%			6.24	%			6.57	%
Yield on average interest-earning
assets (1)(3)		5.48	%			5.76	%			5.55	%			5.63	%			5.85	%
Cost of average total deposits (1)		0.21	%			0.19	%			0.19	%			0.20	%			0.23	%
Cost of average time deposits (1)		0.45	%			0.40	%			0.45	%			0.52	%			0.61	%
Cost of average interest-bearing
liabilities (1)		0.59	%			0.52	%			0.52	%			0.54	%			0.57	%
Cost of average funding sources (1)		0.36	%			0.32	%			0.32	%			0.33	%			0.35	%
Net interest rate spread (1)(3)		4.89	%			5.24	%			5.03	%			5.09	%			5.28	%
Net interest margin (1)(3)		5.16	%			5.47	%			5.26	%			5.33	%			5.53	%
Net interest margin excluding acquired
loan discount accretion (1)(2)(3)		5.02	%			5.01	%			4.95	%			4.97	%			4.91	%
Efficiency ratio		41.4	%			40.1	%			40.1	%			40.6	%			38.5	%
Noninterest expense as a percentage
of average assets (1)		2.18	%			2.20	%			2.09	%			2.11	%			2.10	%
Average Balances:
Loans and leases	$	15,297,044			$	15,008,268			$	14,534,951			$	14,468,590			$	14,471,165
Interest-earning assets		18,655,243				18,413,189				18,111,585				18,003,075				18,161,751
Total assets		21,645,534				21,427,950				21,072,053				20,999,942				21,198,594
Noninterest-bearing deposits		6,595,346				6,496,221				6,274,294				6,437,720				6,273,249
Interest-bearing deposits		9,330,235				9,327,080				9,107,305				9,199,097				9,388,652
Total deposits		15,925,581				15,823,301				15,381,599				15,636,817				15,661,901
Borrowings and subordinated
debentures		1,038,424				946,474				1,023,952				739,509				931,260
Interest-bearing liabilities		10,368,659				10,273,554				10,131,257				9,938,606				10,319,912
Funding sources		16,964,005				16,769,775				16,405,551				16,376,326				16,593,161
Stockholders' equity		4,503,675				4,501,948				4,530,701				4,483,593				4,438,602
(1) Annualized.
(2) Non-GAAP measure.
(3) Tax equivalent.

PACWEST BANCORP AND SUBSIDIARIES
FIVE QUARTER SELECTED FINANCIAL DATA
	At or For the Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
		2017				2016				2016				2016				2016
	(Dollars in thousands)
Non-PCI Credit Quality:
Allowance for credit losses to loans
and leases		1.08	%			1.05	%			1.05	%			1.03	%			0.96	%
Allowance for credit losses to
nonaccrual loans and leases		97	%			95	%			90	%			118	%			106	%
Nonaccrual loans and leases to loans
and leases		1.11	%			1.11	%			1.16	%			0.88	%			0.91	%
Nonperforming assets to loans and
leases and foreclosed assets		1.20	%			1.19	%			1.27	%			0.99	%			1.05	%
Nonperforming assets to total assets		0.85	%			0.84	%			0.87	%			0.68	%			0.72	%
Trailing twelve month net charge-offs
to average loans and leases		0.24	%			0.15	%			0.04	%			0.04	%			0.03	%
PacWest Bancorp Consolidated
Capital:
Tier 1 leverage ratio (1)		11.87	%			11.91	%			12.13	%			11.92	%			11.51	%
Common equity tier 1 capital ratio (1)		12.31	%			12.31	%			12.83	%			12.72	%			12.63	%
Tier 1 capital ratio (1)		12.31	%			12.31	%			12.83	%			12.72	%			12.63	%
Total capital ratio (1)		15.56	%			15.56	%			16.18	%			16.08	%			15.96	%
Risk-weighted assets (1)	$	18,734,604			$	18,568,622			$	17,713,506			$	17,520,609			$	17,226,658
Equity to assets ratio		20.56	%			20.48	%			21.31	%			21.34	%			21.19	%
Tangible common equity ratio (2)		11.67	%			11.54	%			12.19	%			12.12	%			11.87	%
Book value per share	$	37.13			$	36.93			$	37.29			$	37.05			$	36.60
Tangible book value per share (2)	$	18.95			$	18.71			$	19.12			$	18.83			$	18.33
Pacific Western Bank Capital:
Tier 1 leverage ratio (1)		11.36	%			11.40	%			11.54	%			11.38	%			11.10	%
Common equity tier 1 capital ratio (1)		11.79	%			11.78	%			12.21	%			12.13	%			12.18	%
Tier 1 capital ratio (1)		11.79	%			11.78	%			12.21	%			12.13	%			12.18	%
Total capital ratio (1)		12.74	%			12.72	%			13.15	%			13.06	%			13.05	%
Equity to assets ratio		20.11	%			20.02	%			20.77	%			20.82	%			20.70	%
Tangible common equity ratio (2)		11.16	%			11.02	%			11.56	%			11.51	%			11.27	%
(1) Capital information for March 31, 2017 is preliminary.
(2) Non-GAAP measure.

GAAP TO NON-GAAP RECONCILIATION

This press release contains certain non-GAAP financial disclosures for return on average tangible equity, tangible common equity ratio, tangible book value per share, net interest margin excluding acquired loan discount accretion, loan and lease yield excluding acquired loan discount accretion, and adjusted allowance for credit losses to loans and leases. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.  In particular, the use of return on average tangible equity, tangible common equity ratio, and tangible book value per share is prevalent among banking regulators, investors and analysts.  Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of return on average equity, equity to assets ratio, book value per share, net interest margin, loan and lease yield, and allowance for credit losses to loans and leases, respectively. 

The reconciliations for the following GAAP financial measures to the non-GAAP financial measures are presented earlier in this press release: (1) net interest margin to net interest margin excluding acquired loan discount accretion, (2) loan and lease yield to loan and lease yield excluding acquired loan discount accretion, and (3) allowance for credit losses to loans and leases to adjusted allowance for credit losses to loans and leases. 

The reconciliations for the following GAAP financial measures to the non-GAAP financial measures are presented below: (1) return on average equity to return on average tangible equity, (2) equity to assets ratio to tangible common equity ratio, and (3) book value per share to tangible book value per share.

PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Return on Average Tangible Equity			2017				2016				2016				2016				2016
		(Dollars in thousands)
Net earnings		$	78,668			$	85,647			$	93,895			$	82,168			$	90,456
Average stockholders' equity		$	4,503,675			$	4,501,948			$	4,530,701			$	4,483,593			$	4,438,602
Less:	Average intangible assets		2,209,112				2,212,042				2,217,564				2,222,007				2,227,520
Average tangible common equity		$	2,294,563			$	2,289,906			$	2,313,137			$	2,261,586			$	2,211,082
Return on average equity (1)			7.08	%			7.57	%			8.24	%			7.37	%			8.20	%
Return on average tangible equity (2)			13.90	%			14.88	%			16.15	%			14.61	%			16.45	%
(1) Annualized net earnings divided by average stockholders' equity.
(2) Annualized net earnings divided by average tangible common equity.

PACWEST BANCORP AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
Tangible Common Equity Ratio/	March 31,				December 31,				September 30,				June 30,				March 31,
Tangible Book Value Per Share		2017				2016				2016				2016				2016
	(Dollars in thousands, except per share data)
PacWest Bancorp Consolidated:
Stockholders' equity	$	4,508,106			$	4,479,055			$	4,542,595			$	4,513,304			$	4,456,592
Less: Intangible assets		2,207,251				2,210,315				2,213,491				2,219,557				2,223,928
Tangible common equity	$	2,300,855			$	2,268,740			$	2,329,104			$	2,293,747			$	2,232,664
Total assets	$	21,927,254			$	21,869,767			$	21,315,291			$	21,147,139			$	21,031,009
Less: Intangible assets		2,207,251				2,210,315				2,213,491				2,219,557				2,223,928
Tangible assets	$	19,720,003			$	19,659,452			$	19,101,800			$	18,927,582			$	18,807,081
Equity to assets ratio		20.56	%			20.48	%			21.31	%			21.34	%			21.19	%
Tangible common equity ratio (1)		11.67	%			11.54	%			12.19	%			12.12	%			11.87	%
Book value per share	$	37.13			$	36.93			$	37.29			$	37.05			$	36.60
Tangible book value per share (2)	$	18.95			$	18.71			$	19.12			$	18.83			$	18.33
Shares outstanding		121,408,133				121,283,669				121,817,524				121,819,849				121,771,252
Pacific Western Bank:
Stockholder's equity	$	4,405,770			$	4,374,478			$	4,416,623			$	4,390,928			$	4,331,841
Less: Intangible assets		2,207,251				2,210,315				2,213,491				2,219,557				2,223,928
Tangible common equity	$	2,198,519			$	2,164,163			$	2,203,132			$	2,171,371			$	2,107,913
Total assets	$	21,910,720			$	21,848,644			$	21,266,705			$	21,084,950			$	20,928,105
Less: Intangible assets		2,207,251				2,210,315				2,213,491				2,219,557				2,223,928
Tangible assets	$	19,703,469			$	19,638,329			$	19,053,214			$	18,865,393			$	18,704,177
Equity to assets ratio		20.11	%			20.02	%			20.77	%			20.82	%			20.70	%
Tangible common equity ratio (1)		11.16	%			11.02	%			11.56	%			11.51	%			11.27	%
(1) Tangible common equity divided by tangible assets.
(2) Tangible common equity divided by shares outstanding.

Contact: Donald D. Destino
Executive Vice President
Corporate Development and Investor Relations
Phone: 310-887-8521

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