PacWest Bancorp outlines strategic plan

PacWest Bancorp announced a new strategic plan which focuses on strengthening community bank businesses, exiting non-core products and services, and improving operational efficiency. Specifically, the company decided to wind down operations in its Premium Finance and Multi-Family lending groups in 4Q22. In addition, the company is restructuring Civic, a lending subsidiary, to improve its profitability and risk profile. Further, the company sold $1B of available-for-sale securities at a loss in 4Q22 and used the proceeds to pay down FHLB borrowings. One Team Goals for 2023 are: build capital to CET1 10%+; low cost core deposits equal to 40% of portfolio; Return on Assets of 1.50%; efficiency Ratio of 45%; nonperforming Asset Ratio less than 50 bps; top quartile EPS growth.