PacWest Bancorp

Last updated
PacWest Bancorp
Company type Subsidiary
Industry Banking
Financial services
FoundedOctober 22, 1999;25 years ago (1999-10-22)
Headquarters
Beverly Hills, California, U.S.
Area served
 California, Arizona, Utah, and Texas
Key people
Paul Taylor, CEO
Mark Yung, COO
Kenan Sijamija, CCO
Matthew P. Wagner, Executive Chairman
Products Retail banking, Commercial banking, Mortgage loans, Venture debt
RevenueIncrease2.svg US$1.158 Billion (2021)
Increase2.svg US$0.193 billion (2021)
Increase2.svg US$0.606 billion (2021)
Total assets Increase2.svg US$41.2 billion (2022)
Total equity Increase2.svg US$4.0 billion (2022)
Number of employees
2,438 (2022)
Website www.pacwest.com
Footnotes /references
[1]
PacWest Bank stock price PacWest Bank stock price.webp
PacWest Bank stock price

PacWest Bancorp is an American bank holding company based in Beverly Hills, California, with one wholly owned banking subsidiary, Pacific Western Bank. It is a subsidiary of Banc of California. [2]

Contents

It has 69 branches in California, primarily in the southern and central parts of the state, one in Denver, Colorado, one in Durham, North Carolina, and several loan production offices across the country.

The company is on the Forbes Global 2000 list, ranked 1972 in 2023. [3]

History

The bank was founded in October 1999 [1] [4] as First Community Bancorp. In March 2002, it acquired Capital Bank of North County. [5] In April 2002, it acquired Upland Bank, with $108 million in assets. [6] In 2005, it acquired Glendora, California–based Foothill Independent Bancorp for $238 million. [7]

In 2006, First Community Bancorp combined the two banks it then owned, Pacific Western National Bank and First National Bank, renaming them the Pacific Western Bank. [8] In 2008, First Community Bancorp reincorporated in Delaware and changed its name to PacWest Bancorp. [9]

In the aftermath of the 2007–2008 financial crisis, the bank acquired the assets and deposits of several banks that failed: it acquired Security Pacific Bank of Los Angeles in November 2008, [10] Affinity Bank of Ventura, California in August 2009, [11] and Los Padres Bank of Solvang in August 2010. [12]

In April 2014, PacWest acquired CapitalSource for around $2.29 billion. [13] In October 2015, it acquired Square 1 Financial Inc., the parent company of Durham, North Carolina–based Square 1 Bank with $3.1 billion in assets, for $815 million and became the sixth largest publicly traded bank in California. [14] [15] [16]

In January 2019, PacWest retired the CapitalSource and Square 1 Bank brand names. [17] In February 2021, eight months before acquiring MUFG Union Bank's homeowner association services division, [18] it purchased Civic Financial Services, which mainly provides loans to home flippers. [19] [1]

2023 banking crisis and sale of the bank

Chart of PACW stock from March 1 through May 8, 2023 PacWest Stock Close Price 2023-03-01 2023-05-08.png
Chart of PACW stock from March 1 through May 8, 2023

In February 2023, the company announced 200 layoffs and halted new activity at its Civic Financial division after reporting a significant increase in delinquent loans in that division. [19]

Between March and May 2023, the company's stock price plummeted as it reported losses of deposits as its customers feared a bank run. [20] [21] [22] During the first quarter of 2023, deposits of the bank fell from $33.9 billion to $28.1 billion. [23]

In May 2023, the bank sold its Civic Financial subsidiary. [19] In the same month, it sold $2.6 billion worth of real estate construction loans at a $200 million discount to Kennedy Wilson. [24]

In June 2023, the bank sold $1.2 billion in construction loan commitments in New York City with an aggregate balance of approximately $500 million to Cain International, based in London. [25] Also in June 2023, the company sold a $3.54 billion lender finance portfolio to Ares Management. [26]

In November 2023, the company was acquired by Banc of California. Affiliates of Warburg Pincus and Centerbridge Partners invested $400 million in the combined company. [27] [2] The merged bank has more than 2,200 employees serving small and medium-sized businesses. The services provided include: lending, healthcare and education banking, venture banking, warehouse lending, HOA services, payment processing solutions (through Deepstack Technologies). [28]

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References

  1. 1 2 3 "PacWest Bancorp 2022 Form 10-K Annual Report". U.S. Securities and Exchange Commission. February 27, 2023.
  2. 1 2 Mercado, Jorge (1 December 2023). "Banc of California closes merger with PacWest, raises $400M". Pacific Coast Business Times. Retrieved 6 December 2023.
  3. ↑ "The Global 2000 2023". Forbes. Archived from the original on 2024-01-29. Retrieved 2024-02-07.
  4. ↑ "Factbox: PacWest Bancorp, US regional lender in spotlight". Reuters . May 4, 2023.
  5. ↑ "FIRST COMMUNITY BANCORP ANNOUNCES COMPLETION OF THE ACQUISITION OF W.H.E.C., INC., THE HOLDING COMPANY OF CAPITAL BANK OF NORTH COUNTY" (Press release). U.S. Securities and Exchange Commission. March 7, 2002.
  6. ↑ "FIRST COMMUNITY BANCORP ANNOUNCES SIGNING OF DEFINITIVE AGREEMENT TO ACQUIRE UPLAND BANK" (Press release). U.S. Securities and Exchange Commission. March 7, 2002.
  7. ↑ "First Community to Buy Glendora Bank" . Los Angeles Times . Bloomberg News. December 16, 2005.
  8. ↑ "First Community to Switch to State Charter" . Los Angeles Times . Bloomberg News. August 9, 2006.
  9. ↑ Kuehner-Hebert, Katie (December 3, 2008). "Changes at San Diego's First Community" . American Banker .
  10. ↑ "Pacific Western Bank Acquires All the Deposits of Security Pacific Bank, Los Angeles, California" (Press release). Federal Deposit Insurance Corporation (FDIC). November 7, 2008.
  11. ↑ "Pacific Western Bank, San Diego, California, Assumes All of the Deposits of Affinity Bank, Ventura, California" (Press release). Federal Deposit Insurance Corporation (FDIC). August 28, 2009.
  12. ↑ "Pacific Western Bank, San Diego, California, Assumes All of the Deposits of Los Padres Bank, Solvang, California" (Press release). Federal Deposit Insurance Corporation (FDIC). August 20, 2010.
  13. ↑ "PacWest Bancorp Announces the Completion of Its Merger With CapitalSource Inc" (Press release). GlobeNewswire. April 8, 2014.
  14. ↑ Reckard, E. Scott; Dave, Paresh (March 4, 2015). "PacWest Bancorp to buy tech lender Square 1 Financial" . Los Angeles Times .
  15. ↑ "PacWest Bancorp buying financial services company Square 1 Financial for about $789M". Fox Business . Associated Press. March 2, 2015.
  16. ↑ "PacWest Bancorp Announces the Completion of Its Merger With Square 1 Financial, Inc" (Press release). GlobeNewswire. October 7, 2015.
  17. ↑ "Pacific Western Bank completes name integration" (Press release). PR Newswire. April 30, 2019.
  18. ↑ "Pacific Western Bank Announces Close of Acquisition of Homeowners Association Services Division From MUFG Union Bank, N.A." (Press release). GlobeNewswire. October 12, 2021.
  19. 1 2 3 "PacWest sells multifamily lending division" . The Real Deal . May 24, 2023.
  20. ↑ Pound, Jesse (May 4, 2023). "Regional bank stocks continue to slide on Thursday with PacWest leading the way down 50%". CNBC .
  21. ↑ Fitzpatrick, Dan (May 11, 2023). "PacWest stock plunges 23% after losing 9.5% of deposits last week". Yahoo! Finance .
  22. ↑ Min, Sarah (May 3, 2023). "PacWest falls more than 50% after hours on report bank is weighing sale". CNBC .
  23. ↑ "PacWest Bancorp Announces Results for the First Quarter 2023" (Press release). GlobeNewswire. April 25, 2023.
  24. ↑ Shekhawat, Jaiveer; Oguh, Chibuike (May 22, 2023). "PacWest shares jump after $2.6 bln real estate loan sale". Reuters .
  25. ↑ "PacWest sells Cain $1.2B in CRE loans" . The Real Deal . June 12, 2023.
  26. ↑ Nishant, Niket; French, David (June 26, 2023). "PacWest sells $3.5 billion loan portfolio to asset manager Ares". Reuters .
  27. ↑ Skipworth, William (July 25, 2023). "PacWest Bank Shares Sink 27%—And Rebound—Ahead Of Sale To Rival Banc Of California" . Forbes .
  28. ↑ "Banc of California Announces Completion of Transformational Merger with PacWest Bancorp and $400 Million Equity Raise". Businesswire. Archived from the original on 2023-12-27. Retrieved 2024-03-25.
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