Banc of California closes merger with PacWest, raises $400M
Los Angeles-based Banc of California announced the completion of its all-stock merger with PacWest Bancorp, which will take effect Dec. 1.
Announced on Nov. 30, Pacific Western Bank, a subsidiary of PacWest Bancorp, has now merged into Banc of California meaning the combined bank will operate under the Banc of California name and brand.
The combined bank will operate over 70 branches in the state, which includes 13 locations on the Central Coast. Previously, Banc of California had just one location on the Central Coast — in downtown Santa Barbara.
Alongside the closing of the merger, Banc of California also completed its $400 million equity raised from affiliates of funds managed by Warburg Pincus LLC and certain investment vehicles sponsored, managed or advised by Centerbridge Partners, L.P. and its affiliates, according to the press release.
“Today begins a new chapter for Banc of California,” Jared Wolff, CEO and president of Banc of California, said in a press release.
“By combining the best of two well-respected banks, we have created one of the nation’s premier, relationship-focused business banks. We look forward to sharing our expanded capabilities with clients and all the communities we serve. California has experienced a void of business banks that we intend to fill, and we look forward to helping our clients grow and delivering for our clients, communities and shareholders.”
In connection with the merger, Banc of California and PacWest have sold approximately $1.9 billion in assets as part of a balance sheet repositioning strategy, which includes additional asset sales expected to be completed through the end of the first quarter of 2024, according to the press release.
As of Nov. 30, PacWest has sold approximately $1.5 billion of its securities portfolio, which included agency commercial mortgage-backed securities, agency collateralized mortgage obligations and more while Banc of California has sold nearly $450 million of its assets.
The sale of PacWest was first reported back in late July, as the fallout from regional banks was felt immensely after the collapse of Silicon Valley Bank in March.
Shares of Banc of California closed at $11.56 on Nov. 30, with the news of the acquisition coming after-hours. Shares are down nearly 27% since the start of the year.
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