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Section 1: 8-K (8-K)

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest
event reported) October 16, 2018

 

PacWest Bancorp

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-36408

 

33-0885320

(State of

 

(Commission File Number)

 

(IRS Employer

Incorporation)

 

 

 

Identification No.)

 

9701 Wilshire Blvd., Suite 700, Beverly Hills, California 90212

(Address of principal executive offices and zip code)

 

(310) 887-8500

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

x Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 2.02 Results of Operations and Financial Condition.*

 

On October 16, 2018, PacWest Bancorp announced its results of operations and financial condition for the three and nine months ended September 30, 2018.  The press release announcing the financial results for the three and nine months ended September 30, 2018 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation regarding the Company’s financial results for the three and nine months ended September 30, 2018 is furnished as Exhibit 99.2 and incorporated herein by reference.

 

Item 8.01 Other Events.

 

The information set forth under the captions “El Dorado Savings Bank Merger Announcement,” “Forward Looking Statements,” and “Additional Information About the Proposed Transaction and Where to Find It” in the press release furnished as Exhibit 99.1 is incorporated by reference in this Item 8.01.

 

Item 9.01 Financial Statements and Exhibits.*

 

(d) Exhibits.

 

Exhibit
Number

 

Description

 

 

 

99.1

 

Press release dated October 16, 2018 announcing PacWest’s results of operations and financial condition for the three and nine months ended September 30, 2018.

99.2

 

Earnings Release Presentation

 


*The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of PacWest Bancorp under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

PacWest Bancorp

 

 

 

 

 

By:

/s/ Bart R. Olson

 

Name:

Bart R. Olson

 

Title:

Executive Vice President

 

 

Chief Accounting Officer

 

 

Date: October 16, 2018

 

 

3


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Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

Filed by PacWest Bancorp pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Act of 1934
Subject Company: El Dorado Savings Bank, F.S.B.
Commission File No.: 001-36408

 

PRESS RELEASE

 

PacWest Bancorp

(Nasdaq: PACW)

 

Contact:

Matthew P. Wagner

Patrick J. Rusnak

 

President and CEO

Executive Vice President and CFO

Phone:

310-887-8520

714-989-4705

 

 

 

Contact:

Donald D. Destino

 

 

Executive Vice President

 

 

Corporate Development and Investor Relations

 

Phone:

310-887-8521

 

 

FOR IMMEDIATE RELEASE

 

October 16, 2018

 

PACWEST BANCORP ANNOUNCES RESULTS

FOR THE THIRD QUARTER 2018

 

Highlights

 

·                 Net Earnings of $116.3 Million, or $0.94 Per Diluted Share

·                 Tax Equivalent Net Interest Margin of 4.99% for Q3 and 5.09% YTD 2018

·                 New Loan and Lease Production of $1.3 Billion; $345 Million of Net Loan Growth

·                 Net Charge-offs 48% Lower for YTD 2018 Compared to Same Period in 2017

·                 Core Deposits Steady at 87% of Total Deposits

·                 Announced Agreement to Acquire El Dorado Savings Bank, F.S.B.

 

Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) today announced net earnings for the third quarter of 2018 of $116.3 million, or $0.94 per diluted share, compared to net earnings for the second quarter of 2018 of $115.7 million, or $0.92 per diluted share.  The increase in net earnings from the prior quarter was due primarily to a lower provision for credit losses, offset partially by lower net interest income and lower noninterest income.

 

The provision for credit losses decreased by $6.0 million in the third quarter of 2018 compared to the second quarter of 2018 due mainly to a lower level of loans rated special mention.  Net interest income decreased by $2.0 million in the third quarter of 2018 due mostly to higher deposit costs and a lower yield on average loans and leases, offset partially by a higher balance of average loans and leases.  Noninterest income decreased by $2.7 million in the third quarter of 2018 due primarily to a $6.4 million decrease in other income, offset partially by a $2.6 million increase in warrant income and a $0.9 million increase in dividends and gains on equity investments.

 

Matt Wagner, President and CEO, commented, “We achieved strong net loan growth across all our business lines along with solid earnings and operating metrics. Our third quarter results produced a return on assets of 1.89% and a return on tangible equity of 21.61%.”

 

1



 

Mr. Wagner continued, “Our third quarter tax equivalent NIM decreased by 19 basis points to 4.99% due to higher rates on deposits from competitive pressures and lower loan yields resulting from lower discount accretion.”

 

Mr. Wagner continued, “We recently announced our pending acquisition of El Dorado Savings Bank which will expand our Community Banking franchise into Northern California and Northern Nevada and enhance our core funding with approximately $2.0 billion of stable low cost deposits.”

 

FINANCIAL HIGHLIGHTS

 

 

 

At or For the

 

 

 

At or For the

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

 

 

September 30,

 

June 30,

 

Increase

 

September 30,

 

Increase

 

Financial Highlights

 

2018

 

2018

 

(Decrease)

 

2018

 

2017

 

(Decrease)

 

 

 

(Dollars in thousands, except per share data)

 

Net earnings

 

$

116,287

 

$

115,735

 

$

552

 

$

350,298

 

$

273,781

 

$

76,517

 

Diluted earnings per share

 

$

0.94

 

$

0.92

 

$

0.02

 

$

2.79

 

$

2.26

 

$

0.53

 

Return on average assets

 

1.89

%

1.93

%

(0.04

)

1.94

%

1.67

%

0.27

 

Return on average tangible equity (1) 

 

21.61

%

20.98

%

0.63

 

21.22

%

15.63

%

5.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (“NIM”) (tax equivalent)

 

4.99

%

5.18

%

(0.19

)

5.09

%

5.15

%

(0.06

)

Yield on average loans and leases (tax equivalent)

 

6.20

%

6.30

%

(0.10

)

6.20

%

6.01

%

0.19

 

Cost of average total deposits

 

0.46

%

0.37

%

0.09

 

0.38

%

0.26

%

0.12

 

Efficiency ratio

 

40.9

%

39.8

%

1.1

 

40.8

%

40.7

%

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

24,782,126

 

$

24,529,557

 

$

252,569

 

$

24,782,126

 

$

22,242,932

 

$

2,539,194

 

Loans and leases held for investment, net of deferred fees

 

$

17,230,146

 

$

16,885,192

 

$

344,954

 

$

17,230,146

 

$

15,690,517

 

$

1,539,629

 

Noninterest-bearing deposits

 

$

7,834,480

 

$

8,126,153

 

$

(291,673

)

$

7,834,480

 

$

6,911,874

 

$

922,606

 

Core deposits

 

$

15,512,742

 

$

15,586,238

 

$

(73,496

)

$

15,512,742

 

$

13,531,300

 

$

1,981,442

 

Total deposits

 

$

17,879,543

 

$

17,929,192

 

$

(49,649

)

$

17,879,543

 

$

16,773,245

 

$

1,106,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits as percentage of total deposits

 

44

%

45

%

(1

)

44

%

41

%

3

 

Core deposits as percentage of total deposits

 

87

%

87

%

 

87

%

81

%

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to assets ratio

 

19.13

%

19.48

%

(0.35

)

19.13

%

20.73

%

(1.60

)

Tangible common equity ratio (1)

 

9.61

%

9.86

%

(0.25

)

9.61

%

12.02

%

(2.41

)

Book value per share

 

$

38.46

 

$

38.36

 

$

0.10

 

$

38.46

 

$

37.96

 

$

0.50

 

Tangible book value per share (1)

 

$

17.28

 

$

17.35

 

$

(0.07

)

$

17.28

 

$

19.84

 

$

(2.56

)

 


(1) Non-GAAP measure.

 

2



 

INCOME STATEMENT HIGHLIGHTS

 

Net Interest Income

 

Net interest income decreased by $2.0 million to $260.3 million for the third quarter of 2018 compared to $262.3 million for the second quarter of 2018 due to interest expense growth exceeding interest income growth.  Interest expense increased due to higher deposit costs and one additional day in the third quarter.  Interest income increased due primarily to a higher balance of average loans and leases and one additional day in the third quarter, offset partially by a lower yield on average loans and leases.  The tax equivalent yield on average loans and leases was 6.20% for the third quarter of 2018 compared to 6.30% for the second quarter of 2018. The decrease in the yield on average loans and leases was due principally to lower discount accretion on acquired loans (14 basis points in the third quarter versus 21 basis points in the second quarter).

 

The tax equivalent NIM was 4.99% for the third quarter of 2018 compared to 5.18% for the second quarter of 2018. The decrease in the NIM was due mainly to higher deposit costs and a lower yield on average loans and leases resulting from lower discount accretion on acquired loans.

 

The cost of average total deposits increased to 0.46% for the third quarter of 2018 from 0.37% for the second quarter of 2018 due to higher rates paid on deposits in conjunction with increased market interest rates.

 

Provision for Credit Losses

 

A provision for credit losses of $11.5 million was recorded in the third quarter of 2018 compared to $17.5 million in the second quarter of 2018. The lower provision for the third quarter of 2018 was due to a lower level of loans graded special mention at September 30, 2018 compared to June 30, 2018. Loans graded special mention have a higher general reserve amount than loans graded pass.

 

The following table presents details of the provision for credit losses for the periods indicated:

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

September 30,

 

June 30,

 

Increase

 

September 30,

 

Provision for Credit Losses

 

2018

 

2018

 

(Decrease)

 

2018

 

 

 

(In thousands)

 

Addition to allowance for loan and lease losses

 

$

11,500

 

$

15,000

 

$

(3,500

)

$

26,274

 

Addition to reserve for unfunded loan commitments

 

 

2,500

 

(2,500

)

6,726

 

Total provision for credit losses

 

$

11,500

 

$

17,500

 

$

(6,000

)

$

33,000

 

 

3



 

Noninterest Income

 

Noninterest income decreased by $2.7 million to $36.9 million for the third quarter of 2018 compared to $39.6 million for the second quarter of 2018 due mainly to decreases in other income and leased equipment income, partially offset by increases in warrant income, dividends and gains on equity investments, and other commissions and fees.  Other income and leased equipment income decreased in the third quarter due to lower gains on early lease terminations. Warrant income increased due to higher realized gains on exercised warrants primarily from a $3.1 million gain on a warrant in a company that completed an IPO. Dividends and gains on equity investments increased due to higher realized gains on investments sold. The increase in other commissions and fees was attributable to higher loan-related fees.

 

The following table presents details of noninterest income for the periods indicated:

 

 

 

Three Months Ended

 

 

 

 

 

September 30,

 

June 30,

 

Increase

 

Noninterest Income

 

2018

 

2018

 

(Decrease)

 

 

 

(In thousands)

 

Service charges on deposit accounts

 

$

3,979

 

$

4,265

 

$

(286

)

Other commissions and fees

 

12,397

 

11,767

 

630

 

Leased equipment income

 

9,120

 

9,790

 

(670

)

Gain on sale of loans and leases

 

 

106

 

(106

)

Gain on sale of securities

 

826

 

253

 

573

 

Other income:

 

 

 

 

 

 

 

Dividends and gains on equity investments

 

2,895

 

1,992

 

903

 

Warrant income

 

3,818

 

1,225

 

2,593

 

Other

 

3,877

 

10,240

 

(6,363

)

Total noninterest income

 

$

36,912

 

$

39,638

 

$

(2,726

)

 

Noninterest Expense

 

Noninterest expense increased by $1.7 million to $128.1 million for the third quarter of 2018 compared to $126.4 million for the second quarter of 2018 attributable primarily to a $2.4 million increase in compensation expense, a $0.8 million increase in other professional expense, and a $0.8 million increase in acquisition costs, partially offset by decreases in most other expense categories. Compensation expense increased due to higher stock compensation expense for our performance-based restricted stock units as we now expect to achieve a higher level of certain performance metrics, and higher commissions expense related to the increased warrant income. Other professional services increased due to higher legal and consulting expense. The increase in acquisition costs relates to the recently announced pending acquisition of El Dorado Savings Bank.

 

4



 

The following table presents details of noninterest expense for the periods indicated:

 

 

 

Three Months Ended

 

 

 

 

 

September 30,

 

June 30,

 

Increase

 

Noninterest Expense

 

2018

 

2018

 

(Decrease)

 

 

 

(In thousands)

 

Compensation

 

$

72,333

 

$

69,913

 

$

2,420

 

Occupancy

 

13,069

 

13,575

 

(506

)

Data processing

 

6,740

 

6,896

 

(156

)

Other professional services

 

6,058

 

5,257

 

801

 

Insurance and assessments

 

5,446

 

5,330

 

116

 

Intangible asset amortization

 

5,587

 

5,587

 

 

Leased equipment depreciation

 

5,001

 

5,237

 

(236

)

Foreclosed assets income, net

 

(257

)

(61

)

(196

)

Acquisition, integration and reorganization costs

 

800

 

 

800

 

Loan expense

 

2,249

 

3,058

 

(809

)

Other

 

11,127

 

11,657

 

(530

)

Total noninterest expense

 

$

128,153

 

$

126,449

 

$

1,704

 

 

Income Taxes

 

The overall effective income tax rate was 26.2% for the third quarter of 2018 and 26.8% for the second quarter of 2018. The effective tax rate for the nine months ended September 30, 2018 was 26.9% while the full year 2018 is estimated to be approximately 28%.

 

BALANCE SHEET HIGHLIGHTS

 

Loans and Leases

 

Loans and leases held for investment, net of deferred fees, increased by $345.0 million in the third quarter of 2018 to $17.2 billion at September 30, 2018.  The net increase was driven mainly by production of $1.3 billion and disbursements of $966.7 million, offset partially by payoffs of $1.1 billion and paydowns of $795.2 million.

 

5


 

The following table presents a roll forward of loans and leases held for investment, net of deferred fees, for the periods indicated:

 

 

 

Three Months Ended

 

Nine Months Ended

 

Loans and Leases

 

September 30,

 

June 30,

 

September 30,

 

Held for Investment Roll Forward (1)

 

2018

 

2018

 

2018

 

 

 

(Dollars in thousands)

 

Balance, beginning of period

 

$

16,885,192

 

$

16,455,285

 

$

16,972,743

 

Additions:

 

 

 

 

 

 

 

Production

 

1,315,572

 

1,256,559

 

3,317,049

 

Disbursements

 

966,668

 

1,203,940

 

2,917,984

 

Total production and disbursements

 

2,282,240

 

2,460,499

 

6,235,033

 

Reductions:

 

 

 

 

 

 

 

Payoffs

 

(1,133,233

)

(1,154,400

)

(3,218,606

)

Paydowns

 

(795,243

)

(829,119

)

(2,560,364

)

Total payoffs and paydowns

 

(1,928,476

)

(1,983,519

)

(5,778,970

)

Sales

 

(3,326

)

(27,779

)

(161,729

)

Transfers to foreclosed assets

 

(2,176

)

(1,059

)

(3,235

)

Charge-offs

 

(3,308

)

(18,235

)

(33,696

)

Total reductions

 

(1,937,286

)

(2,030,592

)

(5,977,630

)

Balance, end of period

 

$

17,230,146

 

$

16,885,192

 

$

17,230,146

 

 

 

 

 

 

 

 

 

Weighted average rate on production (2)

 

5.17

%

5.04

%

5.16

%

 


(1)         Includes direct financing leases but excludes equipment leased to others under operating leases.

(2)         The weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees.  Amortized fees added approximately 31 basis points to loan yields in 2018.

 

The following table presents the composition of loans and leases held for investment, net of deferred fees, as of the dates indicated:

 

 

 

September 30,

 

June 30,

 

March 31,

 

September 30,

 

Loan and Lease Portfolio

 

2018

 

2018

 

2018

 

2017

 

 

 

(In thousands)

 

Real estate mortgage:

 

 

 

 

 

 

 

 

 

Commercial

 

$

4,932,823

 

$

5,010,680

 

$

5,033,006

 

$

4,338,933

 

Residential

 

2,745,837

 

2,555,695

 

2,521,237

 

1,850,324

 

Total real estate mortgage

 

7,678,660

 

7,566,375

 

7,554,243

 

6,189,257

 

Real estate construction and land:

 

 

 

 

 

 

 

 

 

Commercial

 

854,346

 

831,462

 

789,892

 

680,950

 

Residential

 

1,146,611

 

1,042,564

 

887,110

 

568,273

 

Total real estate construction and land

 

2,000,957

 

1,874,026

 

1,677,002

 

1,249,223

 

Total real estate

 

9,679,617

 

9,440,401

 

9,231,245

 

7,438,480

 

Commercial:

 

 

 

 

 

 

 

 

 

Asset-based

 

3,222,311

 

3,184,300

 

2,957,890

 

2,792,823

 

Venture capital

 

2,031,895

 

2,008,205

 

1,920,643

 

1,959,489

 

Other commercial

 

1,897,852

 

1,873,607

 

1,947,590

 

3,113,574

 

Total commercial

 

7,152,058

 

7,066,112

 

6,826,123

 

7,865,886

 

Consumer

 

398,471

 

378,679

 

397,917

 

386,151

 

 Total loans and leases held for investment, net of deferred fees

 

$

17,230,146

 

$

16,885,192

 

$

16,455,285

 

$

15,690,517

 

 

 

 

 

 

 

 

 

 

 

Total unfunded loan commitments

 

$

7,055,833

 

$

6,429,587

 

$

6,352,803

 

$

5,037,084

 

 

6


 

Allowance for Credit Losses

 

The following tables show roll forwards of the allowance for credit losses for the periods indicated:

 

 

 

Three Months Ended September 30, 2018

 

 

 

Allowance for

 

Reserve for

 

Total

 

Allowance for Credit

 

Loan and

 

Unfunded Loan

 

Allowance for

 

Losses Rollforward

 

Lease Losses

 

Commitments

 

Credit Losses

 

 

 

(In thousands)

 

Beginning balance

 

$

132,139

 

$

35,361

 

$

167,500

 

Charge-offs

 

(3,308

)

 

(3,308

)

Recoveries

 

1,589

 

 

1,589

 

Net charge-offs

 

(1,719

)

 

(1,719

)

Provision

 

11,500

 

 

11,500

 

Ending balance

 

$

141,920

 

$

35,361

 

$

177,281

 

 

 

 

Three Months Ended June 30, 2018

 

 

 

Allowance for

 

Reserve for

 

Total

 

Allowance for Credit

 

Loan and

 

Unfunded Loan

 

Allowance for

 

Losses Rollforward

 

Lease Losses

 

Commitments

 

Credit Losses

 

 

 

(In thousands)

 

Beginning balance

 

$

134,275

 

$

32,861

 

$

167,136

 

Charge-offs

 

(18,235

)

 

(18,235

)

Recoveries

 

1,099

 

 

1,099

 

Net charge-offs

 

(17,136

)

 

(17,136

)

Provision

 

15,000

 

2,500

 

17,500

 

Ending balance

 

$

132,139

 

$

35,361

 

$

167,500

 

 

The allowance for credit losses as a percentage of loans and leases held for investment increased to 1.03% at September 30, 2018 from 0.99% at June 30, 2018 due primarily to an increase in the level of specific reserves on impaired loans.

 

Gross charge-offs for the third quarter of 2018 were $3.3 million and included $1.1 million for venture capital loans, $0.7 million for real estate mortgage loans, and $0.7 million for asset-based loans.  Gross charge-offs for the second quarter of 2018 were $18.2 million and included $6.1 million for venture capital loans, $4.7 million for real estate mortgage loans, $4.4 million for other commercial loans, and $2.9 million for asset-based loans.  Recoveries for the third quarter of 2018 were $1.6 million and included $1.0 million for venture capital loans. Recoveries in the second quarter of 2018 were $1.1 million and included $0.8 million for other commercial loans.

 

The annualized ratio of net charge-offs to average loans was 0.04% for the third quarter of 2018 compared to 0.41% for the second quarter of 2018. The annualized ratio of net charge-offs to average loans was 0.19% for the nine months ended September 30, 2018 compared to 0.35% for the same period in 2017.

 

7


 

Deposits and Client Investment Funds

 

The following table presents the composition of our deposit portfolio as of the dates indicated:

 

 

 

September 30,

 

June 30,

 

March 31,

 

September 30,

 

Deposit Category

 

2018

 

2018

 

2018

 

2017

 

 

 

(Dollars in thousands)

 

Noninterest-bearing demand deposits

 

$

7,834,480

 

$

8,126,153

 

$

8,232,140

 

$

6,911,874

 

Interest checking deposits

 

2,277,537

 

2,184,785

 

2,076,152

 

1,957,485

 

Money market deposits

 

4,782,724

 

4,631,658

 

4,676,734

 

3,967,224

 

Savings deposits

 

618,001

 

643,642

 

676,503

 

694,717

 

Total core deposits

 

15,512,742

 

15,586,238

 

15,661,529

 

13,531,300

 

Non-core non-maturity deposits

 

483,528

 

607,388

 

585,399

 

1,118,694

 

Total non-maturity deposits

 

15,996,270

 

16,193,626

 

16,246,928

 

14,649,994

 

Time deposits $250,000 and under

 

1,509,214

 

1,394,117

 

1,482,118

 

1,770,439

 

Time deposits over $250,000

 

374,059

 

341,449

 

349,742

 

352,812

 

Total time deposits

 

1,883,273

 

1,735,566

 

1,831,860

 

2,123,251

 

Total deposits

 

$

17,879,543

 

$

17,929,192

 

$

18,078,788

 

$

16,773,245

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits as percentage of total deposits

 

44

%

45

%

46

%

41

%

Core deposits as percentage of total deposits

 

87

%

87

%

87

%

81

%

 

At September 30, 2018, core deposits totaled $15.5 billion, or 87% of total deposits, including $7.8 billion of noninterest-bearing demand deposits, or 44% of total deposits.

 

In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at September 30, 2018 were $2.0 billion, of which $1.5 billion was managed by S1AM.

 

8



 

CREDIT QUALITY

 

The following table presents loan and lease credit quality metrics as of the dates indicated:

 

 

 

September 30,

 

June 30,

 

Increase

 

Credit Quality Metrics

 

2018

 

2018

 

(Decrease)

 

 

 

(Dollars in thousands)

 

Nonaccrual loans and leases held for investment (1)

 

$

112,972

 

$

113,745

 

$

(773

)

Accruing loans contractually past due 90 days or more

 

 

 

 

Foreclosed assets, net

 

4,407

 

2,231

 

2,176

 

Total nonperforming assets

 

$

117,379

 

$

115,976

 

$

1,403

 

 

 

 

 

 

 

 

 

Nonaccrual loans and leases held for investment (1)

 

$

112,972

 

$

113,745

 

$

(773

)

Performing troubled debt restructured loans held for investment

 

22,106

 

58,148

 

(36,042

)

Total impaired loans and leases

 

$

135,078

 

$

171,893

 

$

(36,815

)

 

 

 

 

 

 

 

 

Nonaccrual loans and leases held for investment to loans and leases held for investment

 

0.66

%

0.67

%

 

 

Nonperforming assets to loans and leases held for investment and foreclosed assets

 

0.68

%

0.69

%

 

 

 

 

 

 

 

 

 

 

Pass

 

$

16,609,629

 

$

16,142,052

 

$

467,577

 

Special mention

 

360,058

 

506,848

 

(146,790

)

Classified

 

260,459

 

236,292

 

24,167

 

Total loans and leases held for investment, net of deferred fees

 

$

17,230,146

 

$

16,885,192

 

$

344,954

 

 

 

 

 

 

 

 

 

Classified loans and leases held for investment to loans and leases held for investment

 

1.51

%

1.40

%

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

177,281

 

$

167,500

 

$

9,781

 

Provision for credit losses (for the quarter)

 

$

11,500

 

$

17,500

 

$

(6,000

)

Net charge-offs (for the quarter)

 

$

1,719

 

$

17,136

 

$

(15,417

)

Net charge-offs to average loans and leases (for the quarter)

 

0.04

%

0.41

%

 

 

Allowance for credit losses to loans and leases held for investment

 

1.03

%

0.99

%

 

 

Allowance for credit losses to nonaccrual loans and leases held for investment

 

156.9

%

147.3

%

 

 

 


(1) Nonaccrual loans include guaranteed amounts of $13.5 million at September 30, 2018 and $13.5 million at June 30, 2018.

 

Nonaccrual loans and leases decreased by $0.8 million in the third quarter due to net changes in the population of nonaccrual loans which included collections applied to loans and leases, the full repayment of a $10.5 million nonaccrual residential real estate construction loan, and an $11.9 million venture capital loan that was placed on nonaccrual status during the quarter. The decrease in nonaccrual loans and leases by loan category was attributable primarily to a $10.5 million decrease in nonaccrual residential real estate construction and land loans and a $3.4 million decrease in nonaccrual commercial real estate mortgage loans, offset partially by a $7.6 million increase in nonaccrual venture capital loans and a $4.9 million increase in nonaccrual asset-based loans.

 

9



 

Special mention loans and leases decreased by $146.8 million in the third quarter due to net changes in the population of these loans which included a $47.8 million special mention commercial real estate loan being upgraded to pass status and the full repayment of a $33.4 million special mention healthcare real estate loan.

 

Classified loans and leases increased by $24.2 million in the third quarter due to net changes in the population of these loans which included a $34.4 million security cash flow loan being downgraded to classified status, offset partially by the full repayment of a $10.5 million classified nonaccrual residential real estate construction loan.

 

The following table presents nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by portfolio segment and class as of the dates indicated:

 

 

 

Nonaccrual Loans and Leases

 

Accruing and

 

 

 

September 30, 2018

 

June 30, 2018

 

30-89 Days Past Due

 

 

 

 

 

% of

 

 

 

% of

 

September 30,

 

June 30,

 

 

 

 

 

Loan

 

 

 

Loan

 

2018

 

2018

 

 

 

Amount

 

Category

 

Amount

 

Category

 

Amount

 

Amount

 

 

 

(Dollars in thousands)

 

Real estate mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

29,723

 

0.6

%

$

33,105

 

0.7

%

$

824

 

$

2,620

 

Residential

 

3,259

 

0.1

%

3,527

 

0.1

%

5,436

 

2,983

 

Total real estate mortgage

 

32,982

 

0.4

%

36,632

 

0.5

%

6,260

 

5,603

 

Real estate construction and land:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

0.0

%

 

0.0

%

 

 

Residential

 

 

0.0

%

10,450

 

1.0

%

8,498

 

5,969

 

Total real estate construction and land

 

 

0.0

%

10,450

 

0.6

%

8,498

 

5,969

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-based

 

34,619

 

1.1

%

29,677

 

0.9

%

 

 

Venture capital

 

35,520

 

1.7

%

27,940

 

1.4

%

1,028

 

 

Other commercial

 

9,579

 

0.5

%

8,782

 

0.5

%

222

 

230

 

Total commercial

 

79,718

 

1.1

%

66,399

 

0.9

%

1,250

 

230

 

Consumer

 

272

 

0.1

%

264

 

0.1

%

605

 

75

 

Total held for investment

 

$

112,972

 

0.7

%

$

113,745

 

0.7

%

$

16,613

 

$

11,877

 

 

10



 

EL DORADO SAVINGS BANK MERGER ANNOUNCEMENT

 

On September 12, 2018, PacWest announced the signing of a definitive agreement and plan of merger (the “Agreement”) whereby PacWest will acquire El Dorado Savings Bank, F.S.B. (“El Dorado”) in a transaction valued at approximately $466.7 million.

 

El Dorado, headquartered in Placerville, California, is a federally chartered savings bank founded in 1958, with approximately $2.2 billion in assets and 35 branches located primarily in eight Northern California counties and two Northern Nevada counties.  In connection with the transaction, El Dorado will be merged into Pacific Western Bank, the principal operating subsidiary of PacWest Bancorp.

 

The transaction, which was approved by the PacWest and El Dorado boards of directors, is expected to close in the first quarter of 2019 and is subject to customary closing conditions, including obtaining approval by bank regulatory authorities and El Dorado’s stockholders.

 

As of June 30, 2018, on a pro forma consolidated basis, the combined company would have approximately $26.7 billion in assets and 110 branches. No El Dorado branches are expected to be consolidated as a result of the Agreement.

 

Under terms of the Agreement, El Dorado stockholders will receive 58.2209 shares of PacWest common stock and $427.92 in cash for each share of El Dorado, subject to adjustment in certain circumstances as set forth in the Agreement.  Based on PacWest’s September 11, 2018 closing price of $50.04, the total value of the merger consideration is $3,341.29 per El Dorado share. The consideration mix would result in a total of approximately $59.8 million in cash and $406.9 million in PacWest shares.

 

STOCK REPURCHASE PROGRAM

 

During the third quarter of 2018, we repurchased 1,276,498 shares at an average price of $50.59 and a total cost of $64.6 million.  At September 30, 2018, the remaining amount that could be used to repurchase shares under the $350 million Stock Repurchase Program was $110.1 million.

 

11



 

ABOUT PACWEST BANCORP

 

PacWest Bancorp (“PacWest”) is a bank holding company with over $24 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. Our Community Banking group provides lending and comprehensive deposit and treasury management services to small and medium-sized businesses conducted primarily through our California-based branch offices. We offer additional products and services through our National Lending and Venture Banking business groups. National Lending provides asset-based, equipment, real estate and security cash flow loans and treasury management services to established middle-market businesses on a national basis. Venture Banking offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovative hubs across the United States.  For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com.

 

FORWARD LOOKING STATEMENTS

 

This communication contains certain forward-looking information about PacWest, El Dorado, and the combined company after the close of the transaction that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Such statements include future financial and operating results, expectations, intentions and other statements that are not historical facts such as our future effective tax rate; the ability to complete the proposed El Dorado transaction, including obtaining required regulatory approvals and approval by the stockholders of El Dorado, or any future transaction, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected time-frames or at all; and the possibility that personnel changes/retention will not proceed as planned. Such statements are based on information available at the time of this communication and are based on current beliefs and expectations of the Company’s management and are subject to significant risks, uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors, including the risk factors described in documents filed by the Company with the Securities and Exchange Commission.

 

We are under no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

12



 

ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION AND WHERE TO FIND IT

 

Stockholders of El Dorado are urged to carefully review and consider each of PacWest’s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, its proxy statements, its Current Reports on Form 8-K and its Quarterly Reports on Form 10-Q. The documents filed by PacWest with the SEC may be obtained free of charge at PacWest’s website at www.pacwestbancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from PacWest by requesting them in writing to PacWest Bancorp, 9701 Wilshire Boulevard, Suite 700, Beverly Hills, CA 90212; Attention: Investor Relations, by submitting an email request to investor-relations@pacwestbancorp.com or by telephone at (310) 887-8521.

 

PacWest intends to file a registration statement with the SEC which will include a proxy statement of El Dorado and a prospectus of PacWest, and will file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision, stockholders of El Dorado are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. A definitive proxy statement/prospectus will be sent to the stockholders of El Dorado seeking any required stockholder approvals. Stockholders of El Dorado will be able to obtain the registration statement and the proxy statement/prospectus free of charge from the SEC’s website or from PacWest by writing to the address provided in the paragraph above.

 

13



 

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

 

 

 

September 30,

 

June 30,

 

December 31,

 

 

 

2018

 

2018

 

2017

 

 

 

(Dollars in thousands, except per share data)

 

ASSETS:

 

 

 

 

 

 

 

Cash and due from banks

 

$

196,502

 

$

245,998

 

$

233,215

 

Interest-earning deposits in financial institutions

 

185,284

 

205,567

 

165,222

 

Total cash and cash equivalents

 

381,786

 

451,565

 

398,437

 

 

 

 

 

 

 

 

 

Securities available-for-sale, at estimated fair value

 

3,820,333

 

3,857,788

 

3,774,431

 

Federal Home Loan Bank stock, at cost

 

31,077

 

26,271

 

20,790

 

Total investment securities

 

3,851,410

 

3,884,059

 

3,795,221

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

 

481,100

 

 

 

 

 

 

 

 

 

Gross loans and leases held for investment

 

17,295,589

 

16,947,502

 

17,032,221

 

Deferred fees, net

 

(65,443

)

(62,310

)

(59,478

)

Total loans and leases held for investment, net of deferred fees

 

17,230,146

 

16,885,192

 

16,972,743

 

Allowance for loan and lease losses

 

(141,920

)

(132,139

)

(139,456

)

Total loans and leases held for investment, net

 

17,088,226

 

16,753,053

 

16,833,287

 

 

 

 

 

 

 

 

 

Equipment leased to others under operating leases

 

275,707

 

266,576

 

284,631

 

Premises and equipment, net

 

34,012

 

34,513

 

31,852

 

Foreclosed assets, net

 

4,407

 

2,231

 

1,329

 

Deferred tax asset, net

 

41,280

 

25,551

 

 

Goodwill

 

2,548,670

 

2,548,670

 

2,548,670

 

Core deposit and customer relationship intangibles, net

 

62,106

 

67,693

 

79,626

 

Other assets

 

494,522

 

495,646

 

540,723

 

Total assets

 

$

24,782,126

 

$

24,529,557

 

$

24,994,876

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

7,834,480

 

$

8,126,153

 

$

8,508,044

 

Interest-bearing deposits

 

10,045,063

 

9,803,039

 

10,357,492

 

Total deposits

 

17,879,543

 

17,929,192

 

18,865,536

 

Borrowings

 

1,513,166

 

1,187,226

 

467,342

 

Subordinated debentures

 

452,944

 

451,878

 

462,437

 

Accrued interest payable and other liabilities

 

194,788

 

183,302

 

221,963

 

Total liabilities

 

20,040,441

 

19,751,598

 

20,017,278

 

STOCKHOLDERS’ EQUITY (1)

 

4,741,685

 

4,777,959

 

4,977,598

 

Total liabilities and stockholders’ equity

 

$

24,782,126

 

$

24,529,557

 

$

24,994,876

 

 

 

 

 

 

 

 

 

Book value per share

 

$

38.46

 

$

38.36

 

$

38.65

 

Tangible book value per share (2)

 

$

17.28

 

$

17.35

 

$

18.24

 

Shares outstanding

 

123,283,450

 

124,567,950

 

128,782,878

 

 


(1) Includes net unrealized (loss) gain on securities available-for-sale, net

 

$

(43,854

)

$

(22,340

)

$

31,171

 

(2) Non-GAAP measure.

 

 

 

 

 

 

 

 

14



 

PACWEST BANCORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EARNINGS

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

 

 

2018

 

2018

 

2017

 

2018

 

2017

 

 

 

(Dollars in thousands, except per share data)

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

264,062

 

$

260,300

 

$

235,666

 

$

775,447

 

$

694,462

 

Investment securities

 

28,061

 

27,730

 

24,762

 

81,929

 

72,490

 

Deposits in financial institutions

 

519

 

484

 

538

 

1,555

 

967

 

Total interest income

 

292,642

 

288,514

 

260,966

 

858,931

 

767,919

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

21,121

 

16,367

 

13,071

 

51,306

 

31,653

 

Borrowings

 

3,814

 

2,649

 

188

 

7,383

 

2,272

 

Subordinated debentures

 

7,390

 

7,166

 

6,017

 

21,093

 

17,379

 

Total interest expense

 

32,325

 

26,182

 

19,276

 

79,782

 

51,304

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

260,317

 

262,332

 

241,690

 

779,149

 

716,615

 

Provision for credit losses

 

11,500

 

17,500

 

15,119

 

33,000

 

51,346

 

Net interest income after provision for credit losses

 

248,817

 

244,832

 

226,571

 

746,149

 

665,269

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

3,979

 

4,265

 

3,465

 

12,418

 

10,733

 

Other commissions and fees

 

12,397

 

11,767

 

9,944

 

34,429

 

30,917

 

Leased equipment income

 

9,120

 

9,790

 

8,332

 

28,497

 

29,442

 

Gain on sale of loans and leases

 

 

106

 

2,848

 

4,675

 

4,209

 

Gain on sale of securities

 

826

 

253

 

1,236

 

7,390

 

2,788

 

Other income

 

10,590

 

13,457

 

5,557

 

27,700

 

23,689

 

Total noninterest income

 

36,912

 

39,638

 

36,939

 

115,109

 

101,778

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

Compensation

 

72,333

 

69,913

 

64,413

 

213,269

 

194,581

 

Occupancy

 

13,069

 

13,575

 

12,729

 

39,867

 

36,148

 

Data processing

 

6,740

 

6,896

 

6,459

 

20,295

 

19,811

 

Other professional services

 

6,058

 

5,257

 

4,213

 

15,754

 

11,567

 

Insurance and assessments

 

5,446

 

5,330

 

4,702

 

16,503

 

14,349

 

Intangible asset amortization

 

5,587

 

5,587

 

3,049

 

17,520

 

9,178

 

Leased equipment depreciation

 

5,001

 

5,237

 

4,862

 

15,613

 

15,719

 

Foreclosed assets (income) expense, net

 

(257

)

(61

)

2,191

 

(440

)

2,177

 

Acquisition, integration and reorganization costs

 

800

 

 

1,450

 

800

 

3,650

 

Loan expense

 

2,249

 

3,058

 

3,421

 

7,578

 

10,692

 

Other expense

 

11,127

 

11,657

 

11,053

 

35,238

 

34,921

 

Total noninterest expense

 

128,153

 

126,449

 

118,542

 

381,997

 

352,793

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

157,576

 

158,021

 

144,968

 

479,261

 

414,254

 

Income tax expense

 

(41,289

)

(42,286

)

(37,945

)

(128,963

)

(140,473

)

Net earnings

 

$

116,287

 

$

115,735

 

$

107,023

 

$

350,298

 

$

273,781

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share

 

$

0.94

 

$

0.92

 

$

0.84

 

$

2.79

 

$

2.26

 

 

15



 

PACWEST BANCORP AND SUBSIDIARIES

NET EARNINGS PER SHARE CALCULATIONS

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

 

 

2018

 

2018

 

2017

 

2018

 

2017

 

 

 

(In thousands, except per share data)

 

Basic Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

116,287

 

$

115,735

 

$

101,466

 

$

350,298

 

$

273,781

 

Less: earnings allocated to unvested restricted stock (1)

 

(1,428

)

(1,348

)

(1,149

)

(3,899

)

(3,239

)

Net earnings allocated to common shares

 

$

114,859

 

$

114,387

 

$

100,317

 

$

346,399

 

$

270,542

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average basic shares and unvested restricted stock outstanding

 

123,657

 

126,082

 

121,447

 

125,728

 

121,405

 

Less: weighted-average unvested restricted stock outstanding

 

(1,537

)

(1,466

)

(1,394

)

(1,473

)

(1,450

)

Weighted-average basic shares outstanding

 

122,120

 

124,616

 

120,053

 

124,255

 

119,955

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.94

 

$

0.92

 

$

0.84

 

$

2.79

 

$

2.26

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

Net earnings allocated to common shares

 

$

114,859

 

$

114,387

 

$

100,317

 

$

346,399

 

$

270,542

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

 

122,120

 

124,616

 

120,053

 

124,255

 

119,955

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.94

 

$

0.92

 

$

0.84

 

$

2.79

 

$

2.26

 

 


(1)   Represents cash dividends paid to holders of unvested stock, net of forfeitures, plus undistributed earnings amounts available to holders of unvested restricted stock, if any.

 

16



 

PACWEST BANCORP AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

 

 

 

Three Months Ended

 

 

 

September 30, 2018

 

June 30, 2018

 

September 30, 2017

 

 

 

 

 

Interest

 

Average

 

 

 

Interest

 

Average

 

 

 

Interest

 

Average

 

 

 

Average

 

Income/

 

Yield/

 

Average

 

Income/

 

Yield/

 

Average

 

Income/

 

Yield/

 

 

 

Balance

 

Expense

 

Cost

 

Balance

 

Expense

 

Cost

 

Balance

 

Expense

 

Cost

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases (1)(2)

 

$

16,913,792

 

$

264,371

 

6.20

%

$

16,576,361

 

$

260,529

 

6.30

%

$

15,575,030

 

$

235,818

 

6.01

%

Investment securities (3)

 

3,844,201

 

29,711

 

3.07

%

3,803,590

 

29,967

 

3.16

%

3,510,956

 

29,495

 

3.33

%

Deposits in financial institutions

 

108,485

 

519

 

1.90

%

112,170

 

484

 

1.73

%

171,455

 

538

 

1.24

%

Total interest-earning assets (4)

 

20,866,478

 

294,601

 

5.60

%

20,492,121

 

290,980

 

5.70

%

19,257,441

 

265,851

 

5.48

%

Other assets

 

3,491,293

 

 

 

 

 

3,507,516

 

 

 

 

 

2,880,433

 

 

 

 

 

Total assets

 

$

24,357,771

 

 

 

 

 

$

23,999,637

 

 

 

 

 

$

22,137,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking

 

$

2,433,837

 

5,135

 

0.84

%

$

2,243,767

 

3,932

 

0.70

%

$

2,146,125

 

2,960

 

0.55

%

Money market

 

5,270,297

 

10,689

 

0.80

%

5,013,119

 

8,072

 

0.65

%

4,914,803

 

6,307

 

0.51

%

Savings

 

629,241

 

233

 

0.15

%

656,310

 

245

 

0.15

%

707,367

 

289

 

0.16

%

Time

 

1,778,552

 

5,064

 

1.13

%

1,790,415

 

4,118

 

0.92

%

2,256,259

 

3,515

 

0.62

%

Total interest-bearing deposits

 

10,111,927

 

21,121

 

0.83

%

9,703,611

 

16,367

 

0.68

%

10,024,554

 

13,071

 

0.52

%

Borrowings

 

720,449

 

3,814

 

2.10

%

549,665

 

2,649

 

1.93

%

61,071

 

188

 

1.22

%

Subordinated debentures

 

452,312

 

7,390

 

6.48

%

451,973

 

7,166

 

6.36

%

447,012

 

6,017

 

5.34

%

Total interest-bearing liabilities

 

11,284,688

 

32,325

 

1.14

%

10,705,249

 

26,182

 

0.98

%

10,532,637

 

19,276

 

0.73

%

Noninterest-bearing demand deposits

 

8,120,306

 

 

 

 

 

8,253,413

 

 

 

 

 

6,858,816

 

 

 

 

 

Other liabilities<