PacWest Bancorp

The bank was founded in October 1999[1][2] as First Community Bancorp. In March 2002, it acquired Capital Bank of North County.[3] In April 2002, it acquired Upland Bank, with $108 million in assets.[4] In 2005, it acquired Glendora, California-based Foothill Independent Bancorp for $238 million.[5] In 2006, First Community Bancorp combined the two banks it then owned, Pacific Western National Bank and First National Bank, renaming them the Pacific Western Bank.[6] In 2008, First Community Bancorp reincorporated in Delaware and changed its name to PacWest Bancorp.[7]

In the aftermath of the 2007-2008 financial crisis, the bank acquired the assets and deposits of several banks that failed: it acquired Security Pacific Bank of Los Angeles in November 2008,[8] Affinity Bank of Ventura, California in August 2009,[9] and Los Padres Bank of Solvang in August 2010.[10]

In April 2014, PacWest acquired CapitalSource for around $2.29 billion.[11]

In October 2015, the bank acquired Square 1 Financial Inc., the parent company of Durham, North Carolina-based Square 1 Bank with $3.1 billion in assets, for $815 million and became the sixth largest publicly traded bank in California.[12][13][14]

In January 2019, PacWest retired the CapitalSource and Square 1 Bank brand names.[15]

In February 2021, PacWest acquired Civic Financial Services, which mainly provides loans to home flippers.[16][1]

In October 2021, the company acquired the homeowner association services division of MUFG Union Bank.[17]

2023 banking crisis and sale of the bank

Further information: 2023 banking crisis

Chart of PACW stock from March 1 through May 8, 2023

In February 2023, the company announced 200 layoffs and halted new activity at its Civic Financial division after reporting a significant increase in delinquent loans in that division.[16]

Between March and May 2023, the company's stock price plummeted as it reported losses of deposits as its customers feared a bank run.[18][19][20] During the first quarter of 2023, deposits of the bank fell from $33.9 billion to $28.1 billion.[21] In May 2023, the bank sold its Civic Financial subsidiary.[16] Also in May 2023, it sold $2.6 billion worth of real estate construction loans at a $200 million discount to Kennedy Wilson.[22] In June 2023, the bank sold $1.2 billion in construction loan commitments in New York City with an aggregate balance of approximately $500 million to Cain International, based in London.[23] Also in June 2023, the company sold a $3.54 billion lender finance portfolio to Ares Management.[24]

On July 25, 2023, PacWest announced it would be acquired by Banc of California and that Warburg Pincus and Centerbridge Partners would invest $400 million in the combined company.[25]