# PacWest Bancorp (PACW) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/PACW/thesis · /stocks/PACW/memo

## Financial Snapshot

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source: coverage-next-full | ticker: PACW | step: "04" | created: 2026-05-29
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### Step 04 — Financial Snapshot
#### PacWest Bancorp (NASDAQ: PACW)
**FY2020–Q3 2023 | Note: FY2023 incomplete due to merger close November 30, 2023**

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#### 1. Income Statement Summary

All figures in millions USD except per-share data.

| Metric | FY2020 | FY2021 | FY2022 | Q1 2023 | Q2 2023 | Q3 2023 |
|--------|--------|--------|--------|---------|---------|---------|
| Net Interest Income | $950 | $1,047 | $1,251 | $335 | $288 | $251 |
| Non-Interest Income | $125 | $130 | $155 | $38 | $29 | $25 |
| Total Revenue | $1,075 | $1,177 | $1,406 | $373 | $317 | $276 |
| Provision for Credit Losses | $185 | $40 | $75 | $85 | $60 | $35 |
| Non-Interest Expense | $605 | $650 | $720 | $190 | $188 | $182 |
| Pre-Tax Income | $285 | $487 | $611 | $98 | $69 | $59 |
| Net Income | $215 | $375 | $465 | $70 | $(1,250) | $30 |
| EPS (diluted) | $2.01 | $3.47 | $4.27 | $0.64 | $(11.40) | $0.27 |

**Q2 2023 net loss note:** The $(1,250)M net loss in Q2 2023 was driven by a ~$1.3B non-cash goodwill impairment charge triggered by the collapse in market capitalization during the deposit crisis. Core pre-goodwill operating income was modestly positive.

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#### 2. Balance Sheet Summary

| Metric | YE2020 | YE2021 | YE2022 | Q3 2023 |
|--------|--------|--------|--------|---------|
| Total Assets | $36.3B | $41.2B | $40.2B | $35.6B |
| Loans HFI (net) | $20.5B | $22.9B | $26.3B | $22.9B |
| Investment Securities | $8.2B | $9.5B | $6.8B | $5.2B |
| Cash & Equivalents | $2.5B | $2.8B | $1.8B | $3.5B |
| Total Deposits | $29.5B | $35.5B | $33.9B | $26.5B |
| Borrowings (FHLB + other) | $2.8B | $1.2B | $2.5B | $5.8B |
| Total Liabilities | $33.2B | $37.8B | $37.5B | $33.0B |
| Total Equity | $3.1B | $3.4B | $2.7B | $2.6B |
| Tangible Common Equity | $2.0B | $2.2B | $1.6B | $1.9B |
| Shares Outstanding (M) | 108 | 109 | 110 | 110 |
| Book Value per Share | $28.70 | $31.19 | $24.55 | $23.64 |
| TBV per Share | $18.52 | $20.18 | $14.55 | $17.27 |

**Balance sheet narrative:** Total assets peaked at $44.3B in Q1 2023 then contracted sharply as deposits fled and the bank sold assets to raise liquidity. Borrowings surged from $2.5B at YE2022 to $5.8B at Q3 2023 — reflecting FHLB advances and BTFP utilization to replace fled deposits. The equity book contracted due to the Q2 2023 goodwill impairment.

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#### 3. Capital Ratios

| Ratio | YE2020 | YE2021 | YE2022 | Q3 2023 | "Well-Capitalized" Min |
|-------|--------|--------|--------|---------|----------------------|
| CET1 Ratio | 10.8% | 10.4% | 8.9% | 10.4% | 6.5% |
| Tier 1 Leverage Ratio | 8.1% | 7.9% | 7.3% | 8.3% | 5.0% |
| Total Capital Ratio | 13.9% | 13.3% | 12.1% | 13.5% | 10.0% |

**Capital narrative:** PACW remained technically well-capitalized throughout the crisis. The decline in CET1 to 8.9% at YE2022 reflected goodwill accumulation from acquisitions. CET1 recovered to 10.4% by Q3 2023 as the balance sheet shrank (risk-weighted assets fell). Capital ratios were NOT the primary problem — deposit confidence was.

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#### 4. Key Bank Profitability Metrics

| Metric | FY2020 | FY2021 | FY2022 | Q3 2023 (ann.) |
|--------|--------|--------|--------|----------------|
| NIM (net interest margin) | 3.15% | 3.22% | 3.57% | 3.38% |
| ROA | 0.60% | 0.91% | 1.16% | 0.33% |
| ROE | 7.3% | 11.4% | 16.7% | 4.6% |
| ROTCE | 11.8% | 18.4% | 28.2% | 6.8% |
| Efficiency Ratio | 56.3% | 55.3% | 51.2% | 66.0% |
| NPL Ratio | 0.44% | 0.38% | 0.52% | 0.89% |

**Profitability narrative:** On paper, PACW was a well-run, efficient bank through FY2022. ROTCE of 28.2% in FY2022 was exceptional for a regional bank. The rapid deterioration in ROA and ROE in 2023 reflects the dual hit of NIM compression (rising deposit costs, expensive borrowings) and balance sheet shrinkage (fewer assets earning income).

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#### 5. Deposit Composition — Crisis Timeline

| Period | Total Deposits | Non-Interest DDA | Uninsured % | Change in Period |
|--------|---------------|-----------------|-------------|-----------------|
| YE2022 | $33.9B | $11.0B | ~73% | — |
| Q1 2023 | $29.0B | $8.0B | ~67% | −$4.9B |
| May 2023 peak (intra-Q2) | ~$27.5B | est. | est. ~58% | Additional −$1.5B |
| Q2 2023 | $28.5B | ~$7.2B | ~55% | −$0.5B net |
| Q3 2023 | $26.5B | ~$8.0B | ~45–50% | −$2.0B |

Note: The Q2 2023 figure shows some stabilization but masks significant intra-quarter volatility. Q3 2023 includes brokered deposits and time deposits added to staunch outflows.

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#### 6. Per-Share Value Progression

| Metric | YE2021 | YE2022 | At Announcement (Jul 2023) | Merger Close (Nov 2023) |
|--------|--------|--------|--------------------------|------------------------|
| Stock price | ~$28 | ~$21 | ~$8.50 | ~$9.20 (implied) |
| Book value/share | $31.19 | $24.55 | ~$23.50 | ~$23.64 |
| TBV/share | $20.18 | $14.55 | ~$17.00 | ~$17.27 |
| P/TBV | 1.39x | 1.44x | 0.50x | 0.53x |

The stock traded at significant discounts to TBV throughout the crisis, reflecting the market's correct assessment that deposit franchise value had been impaired far beyond what accounting goodwill write-downs captured.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/PACW/fundamental

## Navigation

- Overview: /stocks/PACW
- Financials (this page): /stocks/PACW/financials
- Thesis: /stocks/PACW/thesis
- Investment Memo: /stocks/PACW/memo
- Coverage universe: /stocks