PacWest sells real-estate lending unit to Roc360 – WSJ
2023.05.23 20:46
© Reuters. FILE PHOTO: A general view of Pacific Western Bank in Huntington Beach, California, U.S., March 22, 2023. REUTERS/Mike Blake
(Reuters) – PacWest Bancorp has struck a deal to sell its real-estate lending arm to Roc360 for an undisclosed price, the Wall Street Journal reported on Tuesday.
PacWest is one of the several U.S. regional lenders whose shares have been hit by investor concerns over the financial health of the sector following the collapse of three regional banks in the United States since March.
On Monday, the Los Angeles-based bank said it would sell $2.6 billion worth of its loan portfolio to bolster its finances, a move seen as to shore up investor confidence.
Real-estate lending firm Roc360 bought PacWest’s Civic Financial Services unit on Tuesday, the WSJ report said, citing Maksim Stavinsky, Roc360’s co-founder and president.
Roc360 will assume Civic’s business operations, including data, intellectual property, brand and workforce, the report said, adding that it won’t inherit company’s previously extended loans or loan-servicing operations.
PacWest and Roc360 did not immediately respond to Reuters’ requests for comment.
Earlier this month, PacWest had said it was exploring strategic asset sales to sharpen focus on its core business segments as the regional banking sector grapples with its biggest crisis since 2008.
