Banc of California and PacWest Bancorp will merge into a new bank holding $36 billion in assets
The new bank will have over 70 branches in California and will be led by Jared Wolff, the current CEO of the Banc of California. It will have $25.3 billion in total loans and $30.5 billion in total deposits.
Both lenders agreed to sell $400 million worth of new shares to private equity firms Warburg Pincus and Centerbridge Partner, to fund the merger. "Over the past 18 months, the competitive environment in California has changed dramatically," Wolff told analysts on a Tuesday conference call, per"We've seen many other banks either completely exit or significantly pull back from California. As a result, there's a sizable opportunity."
Timothy Coffey, an analyst at Janney Montgomery Scott, told Reuters ahead of the merger announcement that the deal is like a"marriage of convenience" as both banks operate in the same geographies and are focused on commercial assets.
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