PacWest Bancorp, parent of San Diego-based Pacific Western Bank, reported Oct. 16 it had third quarter net income of $9.6 million, down from $22.2 million for the like period in 2007.
For the nine months ended Sept. 30, PacWest reported a net loss of $727.7 million, compared to a net profit of $73.3 million for the like period in the prior year.
In the first and second quarters of this year, PacWest wrote off about $767 million in goodwill on its books to reflect the volatility in the banking industry.
The write-off didn’t affect the bank’s capital levels, which remain well above a minimum needed to be regarded as a well capitalized bank. As of Sept. 30, PacWest Bank said it held tier one leverage capital of 10.74 percent. The threshold for a well capitalized bank is 5 percent.
PacWest reduced its nonperforming loans and real estate owned in the past quarter to $70.2 million, down from $74 million at the end of June.
The problem assets total was 1.78 percent of its total loans, down from 1.89 percent at June 30.
The bank said it expects to further improve its balance sheet in the final quarter when it obtains $100 million in new capital from CapGen Financial, a transaction it announced in September and should be completed late in the fourth quarter.
With $4.4 billion in total assets, PacWest Bank is the region’s second largest bank headquartered here, trailing only California Bank & Trust with more than $10 billion in total assets. As of Sept. 30, it held $3.9 billion in loans, up $29.3 million from the total loans held at the end of June.
Deposits stood at $3.2 billion, about the same as the total at the end of June.
, Mike Allen