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Thursday, Mar 28, 2024
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Net Income Shrinks at PacWest Bancorp

PacWest Bancorp, the San Diego parent of Pacific Western Bank, reported net income of $2.7 million for the third quarter, compared to a net profit of $9.5 million for the like quarter of 2008, according to an Oct. 27 release.

For the nine months ended Sept. 30, PacWest reported a net loss of $1.57 million, compared to a net loss of $727.7 million for the nine months ended Sept. 30, 2008.

The $5.5 billion bank said it put $75 million into its loan loss reserves during the quarter to cover real and potential losses in its portfolio.

As of the end of September, nonperforming assets totaled $232.8 million, including $39.2 million in foreclosed real estate.

Nonperforming assets at the end of September made up 6 percent of the bank’s total assets, compared to December 2008 when it held $104.8 million in nonperforming assets for 2.6 percent of its total assets.

In August, PacWest acquired Affinity Bank, a failed Ventura-based lender, which increased its assets by about $1.2 billion. It also raised $50 million in new capital, which helped boost its capital levels.

As of Sept. 30, the bank had Tier 1 capital of 11.7 percent, and total risk-based capital of 14.52 percent, both of which exceeded the levels to be considered well-capitalized.

— Mike Allen

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