PacWest Bancorp’s Revenue Breakdown by Segment (2016-2023)

This statistics highlights PacWest Bancorp’s Revenue Breakdown by Segment, split across Non Interest Income and Total Interest Income, reported quarterly from Q3 2022 onwards.

PacWest Bancorp’s Revenue Breakdown by Segment

The Major revenue of Pacwest Bancorp comes from Interest Income and Non-interest Income.

(Note: Above contribution is for the period 2023 Q1, all figures in USD except percentages)

Comparison between Quarters of Pacwest Bancorp: 

The revenue from Non-interest income reduces from 2022 Q3 $38.62 Million as compared to 2023 Q1 $36.39 Million which is 6.12% down. In recent quarter, basically revenue from Non-interest income contributes to 7.03%. In 2022 Q3, revenue from Non-interest income reduces in 2022 Q4. The revenue from Interest income increases from 2022 Q3 $410 Million compared to 2023 Q1 $517.78 Million which is 26.29% up. On the other hand, in recent quarter revenue from Interest income contributes to 93.43%. Pacwest Bancorp’s interest income comes from loans and leases, investment securities, as well as deposits in financial institutions. Similarly, noninterest income includes leased equipment income, other commissions and fees, service charges on deposit accounts, gain on sale of loans and leases, gain on sale of securities, dividend and gain (losses) on equity investments, warrant income, and other income.

First Quarter of 2023 Compared to First Quarter of 2022:

Noninterest income increased by $15.6 million to $36.4 million for the first quarter of 2023 compared to $20.8 million for the first quarter of 2022 due mainly to an increase of $12.5 million in dividends and gains (losses) on equity investments, a $2.9 million increase in gain on sale of loans and lease and a $1.7 million increase in other income. Net interest income decreased by $29.4 million to $279.3 million for the first quarter of 2023 compared to $308.7 million for the first quarter of 2022 due mainly to higher interest expense on deposits and borrowings partially offset by higher interest income on loans and leases and deposits in financial institutions. The increase in interest expense was due to a higher cost and balance of average interest-bearing liabilities.

Non-interest Income

Company provides equipment financing to the customers through operating leases where they also facilitate the purchase of equipment leased to the customers. The equipment is shown on the condensed consolidated balance sheets as “Equipment leased to others under operating leases” as well as is depreciated to its estimated residual value at the end of the lease term, shown as “Leased equipment depreciation” in the reduced consolidated statements of earnings, according to their fixed asset accounting policy. The increase in noninterest income is primarily due to an increase in dividends and gains on equity investments of $12.5 million as the first quarter of 2022 had losses of $11.4 million due to volatility in the equity market resulting from geopolitical tensions and inflationary pressure.

Interest Income

In managing the top line of the business, company basically focus on loan growth, loan yield, deposit cost, and net interest margin. Net interest income, on a year to date basis in 2023, accounted for 88.5% of net revenue (net interest income as well as noninterest income). Net interest income is affected by changes in both interest rates and the volume of average interest earning assets and interest bearing liabilities. Basically, Company’s primary interest earning assets are loans and investment securities, and company’s primary interest bearing liabilities are deposits and borrowings. Contributing to its strong net interest margin is the strong yield on loans as well as leases and concentration of lower cost retail non maturity deposits. During 2023 and 2022, company’s net interest margin was negatively impacted because it accessed the wholesale funding market to replace outflows of retail non maturity deposits.

About Pacwest Bancorp (PACW)

PacWest Bancorp, a Delaware corporation, is a bank holding company basically registered under the BHCA. Further it is headquartered in Los Angeles, California, with an executive office in Denver, Colorado. Additionally, its principal business is to serve as the holding company for its wholly owned subsidiary, Pacific Western Bank. References to “Pacific Western” or the “Bank” refer to Pacific Western Bank together with its wholly owned subsidiaries. Pacific Western Bank is a relationship based community bank basically focused on providing business banking Services. It also provides treasury management services to small, middle market, and venture backed business. Pacific Western Bank is also the wholly owned subsidiary of PacWest Bancorp. As can be seen PacWest Bancorp was established in October 1999. It has also achieved strong market positions by developing and maintaining extensive local relationships in the communities it serve.

Did you like Pacwest Bancorp’s Revenue by Business Vertical statistic?

Access more such KPI data points and segment financials on thousands of US stocks, with Business Quant.

You can get started here.