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PacWest Bancorp, CU Bancorp deal to be 6% accretive to 2018 EPS

Beverly Hills, Calif.-based PacWest Bancorp's pending acquisition of Los Angeles-based CU Bancorp is projected to be 6% accretive to the buyer's 2018 EPS.

The deal is also expected to be 6% dilutive to pro forma tangible book value per share, with an earnback period of approximately 4.5 years, according to an investor presentation. The internal rate of return is estimated to be greater than 16%.

At close, the resulting entity's tangible common equity to tangible assets ratio is expected to be 10.2%; its Tier 1 capital ratio is projected to be 10.9%; and its Tier 1 leverage is estimated at 10.4%.