Banc of California completes merger with PacWest Bancorp, transforming into a business banking powerhouse

Banc of California, Inc. has successfully completed its transformative merger with PacWest Bancorp, combining two significant financial entities. The merger has resulted in the creation of a combined bank operating under the Banc of California name and brand.

Financial Details of the Merger

The merger deal involved PacWest merging into Banc of California, with the latter also completing a substantial $400 million equity raise. The equity raise saw contributions from affiliates of funds managed by Warburg Pincus LLC and investment vehicles sponsored by Centerbridge Partners, L.P. and its affiliates.

Vision for the Combined Bank

Jared Wolff, CEO and President of Banc of California, expressed optimism about the new chapter for the bank. The merger aims to create one of the nation’s premier relationship-focused business banks, filling a void in California’s business banking sector.

Asset Sales and Balance Sheet Repositioning

As part of the merger, Banc of California, N.A. and Pacific Western Bank sold approximately $1.9 billion in assets, aligning with their balance sheet repositioning strategy. This strategy includes additional asset sales through the first quarter of 2024.

Geographic Footprint and Services Expansion

The combined bank, headquartered in Los Angeles, operates over 70 branches across California, North Carolina, and Colorado. It employs more than 2,200 team members, focusing on serving small to medium-sized businesses with tailored solutions and industry-leading treasury management services.

Diverse Offerings in the Banking Sector

The full-service business bank provides a range of solutions in commercial and real estate lending, catering to sectors such as healthcare and education. It also specializes in national business lines like venture banking, HOA services, small business lending, and entertainment and media.

Future Prospects and Market Impact

The merger of Banc of California and PacWest Bancorp is expected to enhance the banking experience for clients and contribute positively to the community and shareholders. This consolidation marks a significant step in the evolution of the banking sector.