Better-Than-Expected Profit at PacWestWednesday, January 16, 2013
PacWest Bancorp said that its fourth-quarter net income jumped 43 percent as the bank holding company added revenue from acquisitions and controlled costs.
The Century City holding company for Pacific Western Bank on Wednesday reported net income of $19.2 million (54 cents a share) compared with $13.4 million (38 cents) in the same period a year earlier.
Total revenue was $71.7 million. Net interest income rose 9 percent to $69.6 million. Non-interest income, which includes revenue from fees and other sources, plunged 75 percent to $2.1 million, which the company attributed to expenses related to past acquisitions of failed banks. PacWest recorded a $4.3 million credit to its allowance for loan losses.
Analysts surveyed by Thomson Reuters on average expected net income of 49 cents a share on total revenue $75.5 million.
PacWest went on an acquisition spree last year, acquiring Pacific Western Equipment Finance, Celtic Capital Corp. and American Perspective Bank. Those deals added $3.7 million to net income in the quarter. The company in November announced it would buy First California Financial Group, a deal that has not yet closed.
Shares closed up 33 cents, or 1 percent, to $26.44 on the Nasdaq.