PacWest Bancorp’s stock rose fractionally in after-hours trading Tuesday after the company said it had agreed to be acquired by Banc of California Inc. in an all-stock merger backed by two private-equity firms. The merger comes as PacWest looks to put a rocky period behind it.
The merged company is currently projecting about $36.1 billion in assets, $25.3 billion in total loans, $30.5 billion in total deposits and more than 70 branches in California. Citing sources close to the deal, the Wall Street Journal had reported earlier that a tie-up was imminent. At last check, PacWest’s market capitalization was about $1.2 billion, while Banc of California’s was about $764 million. Combined, the business would be worth about $2 billion.
While its stock had gained about 16% in the past month, expectations for PacWest’s quarterly results remain low. It will provide an update after the closing bell on Tuesday. The drop on Tuesday in afternoon trading wiped out the gains from the past month, with PacWest’s stock now down 65.5% so far in 2023.