PacWest Bancorp announced on Wednesday net earnings for the first quarter of 2014 of $25.1 million, or 55 cents per diluted share, compared to net earnings for the fourth quarter of 2013 of $3.1 million, or 6 cents per diluted share. For the fourth quarter of 2013, net earnings included a $12.2 million, or 28 cents per diluted share, after-tax charge for accelerated restricted stock vesting.
This press release contains certain non-GAAP financial disclosures for adjusted earnings from continuing operations before income taxes, adjusted efficiency ratio, adjusted allowance for credit losses to loans and leases, return on average tangible equity, and tangible common equity ratio. The company uses certain 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.
As analysts and investors view adjusted earnings from continuing operations before income taxes as an indicator of the company's ability to both generate earnings and absorb credit losses, we disclose this amount in addition to pre-tax earnings.
The comparability of financial information is affected by our acquisitions. Operating results include the operations of acquired entities from the dates of acquisition. The operations of First California Financial Group Inc. ("FCAL") have been included since its acquisition date of May 31, 2013. The CapitalSource merger closed on April 7. Accordingly, CapitalSource operations will be included in second quarter 2014 results from that date.
» Net earnings of $25.1 million or 55 cents per diluted share
» Net interest margin at 5.95 percent
» Credit loss reserve at 1.75 percent of loans and leases (excludes PCI loans)
» Credit loss reserve at 115 percent of nonaccrual loans and leases (excludes PCI loans)
» Demand deposits reach 45 percent of total deposits
» Core deposits at 88 percent of total deposits
» CapitalSource merger closed April 7; deposit system converted April 12