EX-99.2
4
a09-25305_1ex99d2.htm
EX-99.2
Exhibit 99.2
PRESS RELEASE
PacWest Bancorp
(NASDAQ: PACW)
Contact:
Matthew P. Wagner
Chief Executive Officer
PacWest Bancorp
10250 Constellation
Boulevard
Suite 1640
Los Angeles, CA 90067
Victor
R. Santoro
Executive Vice President & CFO
PacWest Bancorp
10250 Constellation
Boulevard
Suite 1640
Los Angeles, CA 90067
Phone:
310-728-1020
310-728-1021
Fax:
310-201-0498
310-201-0498
FOR IMMEDIATE
RELEASE
AUGUST 31, 2009
FORMER
AFFINITY BANK BRANCHES OPEN FOR BUSINESS AS PACIFIC
WESTERN BANK
San Diego, California... PacWest Bancorp
(Nasdaq: PACW) today announced its wholly-owned subsidiary Pacific Western Bank
has opened the 10 former Affinity Bank branches as Pacific Western Bank
branches.
On August 28, 2009, Pacific Western Bank
("Pacific Western"), the wholly-owned banking subsidiary of PacWest Bancorp,
purchased substantially all the assets and assumed substantially all the
liabilities of Affinity Bank ("Affinity") from the Federal Deposit Insurance
Corporation ("FDIC"), as Receiver of Affinity. Pacific Western paid no cash or
other consideration. As part of this transaction, Pacific Western and the
FDIC entered into a loss sharing agreement covering future losses incurred on
loans, foreclosed loan collateral, and certain investment securities. Under the
terms of the loss sharing agreement, the FDIC will absorb 80 percent of losses
and share in 80 percent of loss recoveries on the first $234 million of losses,
and absorb 95 percent of losses and share in 95 percent of loss recoveries on
losses exceeding $234 million.
Based upon a preliminary closing with the
FDIC as of August 28, 2009, Pacific Western (a) acquired an estimated
$818 million in loans, $46 million in foreclosed assets, $185 million in
investment securities and $166 million in cash and other assets and (b) assumed
an estimated $870 million in deposits, $288 million in borrowings, and $3
million in other liabilities. All of these amounts are at Affinity's book
value and do not reflect fair value. In addition, the FDIC will wire to
Pacific Western cash totaling approximately $79 million. The foregoing
estimates are subject to adjustment based on final settlement with the FDIC.
Pacific Western will account for the Affinity
acquisition under the purchase method of accounting in accordance with
Statement of Financial Accounting Standards No. 141 (revised 2007),
Business Combinations
("FAS 141R"). Under FAS141R, the
assets acquired and liabilities assumed will be recorded at their estimated
fair values as of the August 28, 2009 acquisition date. Based upon
currently estimated fair values of the assets
acquired and liabilities assumed, Pacific Western expects to record a net
after-tax gain of approximately $45 million. Such estimated gain
represents the amount by which the estimated fair value of the assets acquired
exceeds the estimated fair value of the liabilities assumed. The
fair value estimates and resultant net gain are preliminary and subject not
only to the final fair value estimates but also to adjustment for up to one
year after the acquisition closing date based on information that becomes
available regarding the closing date fair values.
On a pro forma basis for the transaction using the
preliminary settlement amounts, Pacific Western would have had approximately
$5.7 billion in assets and $4.2 billion in deposits at June 30, 2009,
through 66 branches across Southern California and 3 branches in Northern
California, including the former Affinity Bank branches.
Former customers of Affinity Bank and Pacific
Western Bank customers should continue to use their existing branches until
Pacific Western can fully integrate the systems of Affinity Bank with the
Pacific Western Bank network. After this
transition period, former Affinity Bank customers will gain access to Pacific Western's
59 existing locations throughout Los Angeles, Orange, Riverside, San Bernardino
and San Diego Counties.
ABOUT PACWEST BANCORP
PacWest Bancorp is a bank holding company with $4.5 billion in assets
as of June 30, 2009, with one wholly-owned banking subsidiary, Pacific
Western Bank. Through 59 full-service community banking branches and 10
branches of the former Affinity Bank, Pacific Western provides commercial
banking services, including real estate, construction and commercial loans, to
small and medium-sized businesses. Pacific Western's branches are located in
Los Angeles, Orange, Riverside, San Diego and San Bernardino Counties. Pacific Western Bank branches that are former
Affinity Bank branches are also located in San Francisco, San Mateo and Ventura
Counties. Through its subsidiary BFI
Business Finance and its division First Community Financial, Pacific Western
also provides working capital financing to growing companies located throughout
the Southwest, primarily in the states of Arizona, California and Texas.
Additional information regarding PacWest Bancorp is available on the Internet
at www.pacwestbancorp.com. Information regarding Pacific Western Bank is also
available on the Internet at www.pacificwesternbank.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about
PacWest that is intended to be covered by the safe harbor for "forward-looking
statements" provided by the Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact are forward-looking statements. Such
statements involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of the Company. We
caution readers that a number of important factors could cause actual results
to differ materially from those expressed in, implied or projected by, such
forward-looking statements. Risks and uncertainties include, but are not
limited to: planned
investments, acquisitions and related cost savings cannot be realized or
realized within the expected time frame; lower than expected revenues; credit
quality deterioration
2
which could cause an increase in the
allowance for credit losses and a reduction in net earnings; increased
competitive pressure among depository institutions; the Company's ability to
complete announced investments, acquisitions, to successfully integrate
acquired entities or deposits, or to achieve expected synergies and operating
efficiencies within expected time-frames or at all; the integration of acquired
businesses costs more, takes longer or is less successful than expected; the
possibility that personnel changes will not proceed as planned; the cost of
additional capital is more than expected; a change in the interest rate
environment reduces interest margins; asset/liability repricing risks and
liquidity risks; pending legal matters may take longer or cost more to resolve
or may be resolved adversely to the Company; general economic conditions,
either nationally or in the market areas in which the Company does or
anticipates doing business, are less favorable than expected; environmental
conditions, including natural disasters, may disrupt our business, impede our
operations, negatively impact the values of collateral securing the Company's
loans or impair the ability of our borrowers to support their debt obligations;
the economic and regulatory effects of the continuing war on terrorism and
other events of war, including the war in Iraq; legislative or regulatory
requirements or changes adversely affecting the Company's business; changes in
the securities markets; regulatory approvals for any acquisitions cannot be
obtained on the terms expected or on the anticipated schedule; and, other risks that are
described in PacWest's public filings with the U.S. Securities and Exchange
Commission (the "SEC"). If any of these risks or uncertainties materializes or
if any of the assumptions underlying such forward-looking statements proves to
be incorrect, PacWest's results could differ materially from those expressed
in, implied or projected by such forward-looking statements. PacWest assumes no
obligation to update such forward-looking statements.
For a more complete discussion of risks and uncertainties, investors
and security holders are urged to read PacWest Bancorp's annual report on Form 10-K,
quarterly reports on Form 10-Q and other reports filed by PacWest with the
SEC. The documents filed by PacWest with
the SEC may be obtained at PacWest Bancorp'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
directing a request to: PacWest Bancorp c/o Pacific Western Bank, 275 North
Brea Boulevard, Brea, CA 92821.
Attention: Investor Relations. Telephone 714-671-6800.
Contact information:
Matt Wagner, Chief Executive Officer, (310) 728-1020
Vic Santoro,
Executive Vice President and CFO, (310) 728-1021
3

EX - 99 . 2 4 a09 - 25305 _ 1ex99d2 . htm EX - 99 . 2 Exhibit 99 . 2 PRESS RELEASE PacWest Bancorp ( NASDAQ : PACW ) Contact : Matthew P . Wagner Chief Executive Officer PacWest Bancorp 10250 Constellation Boulevard Suite 1640 Los Angeles , CA 90067 Victor R . Santoro Executive Vice President & CFO PacWest Bancorp 10250 Constellation Boulevard Suite 1640 Los Angeles , CA 90067 Phone : 310 - 728 - 1020 310 - 728 - 1021 Fax : 310 - 201 - 0498 310 - 201 - 0498 FOR IMMEDIATE RELEASE AUGUST 31 , 2009 FORMER AFFINITY BANK BRANCHES OPEN FOR BUSINESS AS PACIFIC WESTERN BANK San Diego , California ... PacWest Bancorp ( Nasdaq : PACW ) today announced its wholly - owned subsidiary Pacific Western Bank has opened the 10 former Affinity Bank branches as Pacific Western Bank branches . On August 28 , 2009 , Pacific Western Bank ( " Pacific Western " ) , the wholly - owned banking subsidiary of PacWest Bancorp , purchased substantially all the assets and assumed substantially all the liabilities of Affinity Bank ( " Affinity " ) from the Federal Deposit Insurance Corporation ( " FDIC " ) , as Receiver of Affinity . Pacific Western paid no cash or other consideration . As part of this transaction , Pacific Western and the FDIC entered into a loss sharing agreement covering future losses incurred on loans , foreclosed loan collateral , and certain investment securities . Under the terms of the loss sharing agreement , the FDIC will absorb 80 percent of losses and share in 80 percent of loss recoveries on the first $ 234 million of losses , and absorb 95 percent of losses and share in 95 percent of loss recoveries on losses exceeding $ 234 million . Based upon a preliminary closing with the FDIC as of August 28 , 2009 , Pacific Western ( a ) acquired an estimated $ 818 million in loans , $ 46 million in foreclosed assets , $ 185 million in investment securities and $ 166 million in cash and other assets and ( b ) assumed an estimated $ 870 million in deposits , $ 288 million in borrowings , and $ 3 million in other liabilities . All of these amounts are at Affinity 's book value and do not reflect fair value . In addition , the FDIC will wire to Pacific Western cash totaling approximately $ 79 million . The foregoing estimates are subject to adjustment based on final settlement with the FDIC . Pacific Western will account for the Affinity acquisition under the purchase method of accounting in accordance with Statement of Financial Accounting Standards No . 141 ( revised 2007 ) , Business Combinations ( " FAS 141R " ) . Under FAS141R , the assets acquired and liabilities assumed will be recorded at their estimated fair values as of the August 28 , 2009 acquisition date . Based upon currently estimated fair values of the assets acquired and liabilities assumed , Pacific Western expects to record a net after - tax gain of approximately $ 45 million . Such estimated gain represents the amount by which the estimated fair value of the assets acquired exceeds the estimated fair value of the liabilities assumed . The fair value estimates and resultant net gain are preliminary and subject not only to the final fair value estimates but also to adjustment for up to one year after the acquisition closing date based on information that becomes available regarding the closing date fair values . On a pro forma basis for the transaction using the preliminary settlement amounts , Pacific Western would have had approximately $ 5.7 billion in assets and $ 4.2 billion in deposits at June 30 , 2009 , through 66 branches across Southern California and 3 branches in Northern California , including the former Affinity Bank branches . Former customers of Affinity Bank and Pacific Western Bank customers should continue to use their existing branches until Pacific Western can fully integrate the systems of Affinity Bank with the Pacific Western Bank network . After this transition period , former Affinity Bank customers will gain access to Pacific Western 's 59 existing locations throughout Los Angeles , Orange , Riverside , San Bernardino and San Diego Counties . ABOUT PACWEST BANCORP PacWest Bancorp is a bank holding company with $ 4.5 billion in assets as of June 30 , 2009 , with one wholly - owned banking subsidiary , Pacific Western Bank . Through 59 full - service community banking branches and 10 branches of the former Affinity Bank , Pacific Western provides commercial banking services , including real estate , construction and commercial loans , to small and medium - sized businesses . Pacific Western 's branches are located in Los Angeles , Orange , Riverside , San Diego and San Bernardino Counties . Pacific Western Bank branches that are former Affinity Bank branches are also located in San Francisco , San Mateo and Ventura Counties . Through its subsidiary BFI Business Finance and its division First Community Financial , Pacific Western also provides working capital financing to growing companies located throughout the Southwest , primarily in the states of Arizona , California and Texas . Additional information regarding PacWest Bancorp is available on the Internet at www.pacwestbancorp.com . Information regarding Pacific Western Bank is also available on the Internet at www.pacificwesternbank.com . FORWARD - LOOKING STATEMENTS This press release contains certain forward - looking information about PacWest that is intended to be covered by the safe harbor for " forward - looking statements " provided by the Private Securities Litigation Reform Act of 1995 . All statements other than statements of historical fact are forward - looking statements . Such statements involve inherent risks and uncertainties , many of which are difficult to predict and are generally beyond the control of the Company . We caution readers that a number of important factors could cause actual results to differ materially from those expressed in , implied or projected by , such forward - looking statements . Risks and uncertainties include , but are not limited to : planned investments , acquisitions and related cost savings can not be realized or realized within the expected time frame ; lower than expected revenues ; credit quality deterioration 2 which could cause an increase in the allowance for credit losses and a reduction in net earnings ; increased competitive pressure among depository institutions ; the Company 's ability to complete announced investments , acquisitions , to successfully integrate acquired entities or deposits , or to achieve expected synergies and operating efficiencies within expected time - frames or at all ; the integration of acquired businesses costs more , takes longer or is less successful than expected ; the possibility that personnel changes will not proceed as planned ; the cost of additional capital is more than expected ; a change in the interest rate environment reduces interest margins ; asset / liability repricing risks and liquidity risks ; pending legal matters may take longer or cost more to resolve or may be resolved adversely to the Company ; general economic conditions , either nationally or in the market areas in which the Company does or anticipates doing business , are less favorable than expected ; environmental conditions , including natural disasters , may disrupt our business , impede our operations , negatively impact the values of collateral securing the Company 's loans or impair the ability of our borrowers to support their debt obligations ; the economic and regulatory effects of the continuing war on terrorism and other events of war , including the war in Iraq ; legislative or regulatory requirements or changes adversely affecting the Company 's business ; changes in the securities markets ; regulatory approvals for any acquisitions can not be obtained on the terms expected or on the anticipated schedule ; and , other risks that are described in PacWest 's public filings with the U . S . Securities and Exchange Commission ( the " SEC " ) . If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward - looking statements proves to be incorrect , PacWest 's results could differ materially from those expressed in , implied or projected by such forward - looking statements . PacWest assumes no obligation to update such forward - looking statements . For a more complete discussion of risks and uncertainties , investors and security holders are urged to read PacWest Bancorp 's annual report on Form 10 - K , quarterly reports on Form 10 - Q and other reports filed by PacWest with the SEC . The documents filed by PacWest with the SEC may be obtained at PacWest Bancorp '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 directing a request to : PacWest Bancorp c / o Pacific Western Bank , 275 North Brea Boulevard , Brea , CA 92821 . Attention : Investor Relations . Telephone 714 - 671 - 6800 . Contact information : Matt Wagner , Chief Executive Officer , ( 310 ) 728 - 1020 Vic Santoro , Executive Vice President and CFO , ( 310 ) 728 - 1021 3
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