PacWest has been under considerable pressure after Silicon Valley Bank failed in March, sending shock waves across regional banks in the United States. Total deposits for the Santa Ana-based bank declined slightly from $7 billion to $6.9 billion last quarter. Banc of California reported a much smaller decline in net income of $2.4 million last quarter. The Beverly Hills-based bank also reported total deposits declined by $290 million last quarter, to $27.9 billion. PacWest reported a $197.4 million loss in net income last quarter. Wolff will continue to serve as president and CEO of the merged bank. “The combined company will have the strength and market position to support the banking needs of small and medium-size businesses in California and to capitalize on the opportunities created for stronger financial institutions in the wake of the recent banking industry turmoil,” said Jared Wolff, president and CEO of Banc of California, in a statement. The move aims to restore confidence in the sector after the collapse of three regional banks earlier this year. Under the terms of the deal, both California-based banks will merge into one bank called Pacific Western Bank. (PACW) is set to merge with Banc of California and raise $400 million in equity, according to a joint announcement the banks released Tuesday afternoon, ahead of their second-quarter earnings results.
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