The Bank Slate


PacWest closes two businesses, retools a third

PacWest Bancorp in Los Angeles is making a flurry of changes as it transitions to new CEO Paul Taylor.

The $41.2 billion-asset company said in a press release that it shut down its premium finance and multifamily lending groups as part of a plan to focus on “relationship-based community banking.”

PacWest also plans to restructure its Civic Financial Services business in a move that led to a $29 million goodwill impairment change. The business provides loans to real estate investors.

Finally, the company sold $1 billion of securities at a $49 million loss. The funds from the sale were used to lower outstanding debt with the Federal Home Loan Bank.

PacWest said that Civic’s loan production fell by 14% in the fourth quarter from a quarter earlier, to $713 million. Civic had $3.3 billion of outstanding loans on Dec. 31.

The company said Civic loans were the primary reason for a $14 million increase in nonaccrual loans and a $72 million increase in delinquent loans during the fourth quarter.

Taylor succeeded Matt Wagner as CEO on Jan. 1.

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