Pacific Western Bank reports income dip
Los Angeles-based PacWest Bancorp — the parent company of Pacific Western Bank, a bank with 13 branches in the tri-county region — announced a drop in net earnings from last year with net income of $122.2 million, or $1.02 per diluted share, for the third quarter of 2022.
In the same quarter last year, the bank produced earnings of $140 million, or $1.17 per diluted share. The bank also failed to produce sequential growth, down $136,000 in net earnings from the second quarter of 2022, according to earnings released Oct. 19.
Net interest income increased by $11.3 million to $335.2 million for the third quarter of 2022, compared to $323.9 million for the second quarter of 2022, as interest income on loans and leases increased by $53.3 million, due to a $1.6 million increase in the average balance of loans and leases and a 47 basis point increase in the tax equivalent yield on average loans and leases compared to the second quarter of 2022, the company said in a press release.
In a statement about the earnings, CEO Matt Wagner said the bank is “planning for a weaker economic outlook.”
PacWest Bancorp closed at $22.45 on Oct. 20, down 5% from the day before, after it missed analysts’ expectations for both earnings and revenue.