PacWest Bancorp (PACW) Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025 summary

Strategic priorities and market positioning

• Integration of the PacWest acquisition is complete, exceeding initial cost-saving targets and providing significant scale and flexibility.

• Focus is on capturing market share in California, especially among small and medium-sized businesses, as many regional banks have exited the market.

• Los Angeles is highlighted as a key economic engine, with the bank now the largest independent headquartered in the city.

• The bank aims to become a leading business bank in California, leveraging the void left by departing competitors.

• Upcoming events like the Olympics and World Cup, along with rebuilding from wildfires, are expected to stimulate local economic activity.

Lending, growth initiatives, and customer sentiment

• Business is structured around commercial/community banking and specialty lines such as HOA, SBA, lender finance, venture, and warehouse lending.

• Warehouse lending is projected to grow from $1.4B to $2B by year-end, with lender finance and fund finance also expected to expand.

• Loan growth is forecasted in the mid to upper single digits for the year, continuing recent trends.

• Increased certainty around rates and politics has led to renewed customer optimism and higher transaction activity, especially in multifamily real estate.

• Utilization of revolving credit lines and fund finance commitments is expected to rise in the coming year.

Competitive landscape and talent acquisition

• Competition is moderate, with pricing pressure increasing, but the bank benefits from dislocation at larger banks and the exit of regional players.

• New entrants like PNC, KeyBank, and Flagstar are noted, but the market remains attractive due to its size.

• The bank continues to attract experienced talent, focusing on expanding within existing lines rather than adding new business lines.

• Recent hires include a new Chief Accounting Officer from Silicon Valley Bank and ongoing recruitment of bankers in Los Angeles.