PacWest Bancorp
Former California-based bank holding company that operated Pacific Western Bank and was acquired by Banc of California in 2023.
Last updated August 22, 2026
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Overview
PacWest Bancorp was an American bank holding company headquartered in Beverly Hills, California. Its principal operating subsidiary was Pacific Western Bank, a commercial bank serving small and medium-sized businesses, entrepreneurs, professionals, real-estate borrowers, and other commercial customers. The company developed from a local California banking platform into a publicly traded regional banking group through acquisitions, failed-bank transactions, specialty-finance expansion, and the consolidation of multiple banking brands under the Pacific Western Bank name. The organization was founded in October 1999 as First Community Bancorp. During its early expansion, it acquired Capital Bank of North County in 2002, Upland Bank later that year, and Foothill Independent Bancorp in 2005. In 2006, the two banks then owned by First Community Bancorp were combined and renamed Pacific Western Bank. The holding company reincorporated in Delaware and adopted the PacWest Bancorp name in 2008, giving the parent company and its principal bank distinct but closely connected identities. Following the global financial crisis, PacWest expanded through the purchase of assets and deposits from failed institutions. These transactions included Security Pacific Bank of Los Angeles in 2008, Affinity Bank of Ventura in 2009, and Los Padres Bank of Solvang in 2010. The strategy increased the bank's California presence while allowing it to acquire deposits and banking assets during a period of industry distress. PacWest later broadened its business beyond traditional commercial banking. In 2014, it acquired CapitalSource, adding a specialty-finance platform. In 2015, it acquired Square 1 Financial, the parent of Square 1 Bank, which specialized in banking services for venture-backed companies and the innovation economy. The CapitalSource and Square 1 Bank names were retired in 2019 as the company consolidated its branding. In 2021, PacWest acquired Civic Financial Services, a lender focused primarily on loans to residential property investors and home flippers. The company encountered increasing pressure in 2023. Civic Financial experienced a significant increase in delinquent loans, prompting PacWest to halt new activity in that division and announce approximately 200 layoffs in February. During the banking turmoil of March through May, deposits declined substantially as customers became concerned about the stability of regional banks. Deposits fell from $33.9 billion at the end of 2022 to $28.1 billion during the first quarter of 2023, according to the referenced account of the company's results. PacWest responded by selling businesses, loan assets, and loan commitments to strengthen liquidity and reduce exposure to selected lending categories. In May 2023, it sold Civic Financial Services and sold approximately $2.6 billion of real-estate construction loans to Kennedy Wilson at a discount. In June, it sold New York City construction-loan commitments to Cain International and a lender-finance portfolio to Ares Management. These transactions formed part of a broader balance-sheet restructuring during the 2023 regional-banking crisis. PacWest was acquired by Banc of California in November 2023. Affiliates of Warburg Pincus and Centerbridge Partners invested $400 million in the combined company. After the transaction, the combined bank was described as serving small and medium-sized businesses with capabilities including commercial lending, healthcare and education banking, venture banking, warehouse lending, homeowners-association services, and payment-processing solutions through Deepstack Technologies. PacWest Bancorp therefore ceased to operate as an independent publicly traded bank holding company, while elements of its banking platform continued within Banc of California.
History
PacWest Bancorp began in October 1999 as First Community Bancorp, a California banking organization created to build a community and commercial-banking platform. Its first phase of growth relied on acquiring existing local institutions. In March 2002, it acquired Capital Bank of North County, and in April 2002 it acquired Upland Bank, which had approximately $108 million in assets. In 2005, the company purchased Glendora, California-based Foothill Independent Bancorp for approximately $238 million. The organization simplified its banking structure in 2006. First Community Bancorp combined Pacific Western National Bank and First National Bank, the two banks it then owned, and renamed the resulting institution Pacific Western Bank. The bank holding company itself reincorporated in Delaware in 2008 and changed its name to PacWest Bancorp. This created the corporate identity that would remain associated with Pacific Western Bank through the company's later expansion. PacWest used the aftermath of the 2008 financial crisis to expand its deposit base and California branch network through failed-bank transactions. In November 2008, it acquired the assets and deposits of Security Pacific Bank of Los Angeles. In August 2009, it acquired the assets and deposits of Affinity Bank of Ventura, California. In August 2010, it completed a similar transaction involving Los Padres Bank of Solvang. These deals increased the scale of the franchise while concentrating its principal physical presence in California. The next stage involved diversification into specialty finance and targeted commercial banking. In April 2014, PacWest acquired CapitalSource in a transaction reported at approximately $2.29 billion. CapitalSource added commercial and specialty-finance capabilities to the traditional banking platform. In October 2015, PacWest acquired Square 1 Financial, the parent company of Durham, North Carolina-based Square 1 Bank. Square 1 had approximately $3.1 billion in assets and was known for serving venture-backed companies and businesses associated with the innovation economy. The acquisition was reported at approximately $815 million and made PacWest the sixth-largest publicly traded bank in California at that time. PacWest later consolidated the acquired brands. In January 2019, it retired the CapitalSource and Square 1 Bank names, bringing their activities under the broader Pacific Western Bank identity. In February 2021, the company purchased Civic Financial Services, a specialty lender primarily focused on loans to home flippers and other residential-property investors. The acquisition extended PacWest's lending reach but also increased its exposure to a more specialized real-estate credit segment. The company entered a period of stress in 2023. In February, PacWest announced approximately 200 layoffs and paused new activity at Civic Financial after reporting a substantial increase in delinquent loans there. The broader banking crisis that followed the failures and distress of several United States regional banks affected depositor confidence. From March through May, PacWest's stock price fell sharply while the bank reported deposit outflows. Deposits declined from $33.9 billion to $28.1 billion during the first quarter of 2023, increasing pressure to preserve liquidity and reduce risk. PacWest responded with asset sales and a retrenchment from selected lending activities. In May 2023, it sold Civic Financial Services and sold approximately $2.6 billion of real-estate construction loans to Kennedy Wilson at a reported $200 million discount. In June, it sold New York City construction-loan commitments to Cain International; the commitments had an aggregate balance of approximately $500 million. It also sold a lender-finance portfolio reported at approximately $3.54 billion to Ares Management. These transactions were intended to reshape the balance sheet during a period of market concern rather than represent a new organic expansion strategy. In November 2023, Banc of California acquired PacWest Bancorp. Affiliates of Warburg Pincus and Centerbridge Partners invested $400 million in the combined institution. The merged bank was described as having more than 2,200 employees and serving small and medium-sized businesses through lending, healthcare and education banking, venture banking, warehouse lending, homeowners-association services, and payment-processing solutions provided through Deepstack Technologies. The acquisition ended PacWest's existence as an independent public bank holding company, although its commercial banking capabilities and customer relationships continued within the Banc of California organization.
- 2023
Balance-sheet restructuring during banking crisis
[1]PacWest paused Civic Financial activity, announced layoffs, sold lending assets and portfolios, and experienced significant deposit outflows.
- 2023
Acquisition by Banc of California
[1]Banc of California acquired PacWest Bancorp in November, ending PacWest's independent corporate existence.
- 2021
Civic Financial Services acquired
[1]PacWest purchased Civic Financial Services, a lender focused mainly on home-flipping loans.
- 2019
Acquired brand names retired
[1]PacWest retired the CapitalSource and Square 1 Bank brand names and consolidated their activities under Pacific Western Bank.
- 2015
Square 1 Financial acquisition
[1]PacWest acquired Square 1 Financial, parent of Square 1 Bank, expanding its venture-banking capabilities.
- 2014
CapitalSource acquisition
[1]PacWest acquired CapitalSource, adding a major specialty-finance operation.
- 2010
Los Padres Bank assets acquired
[1]PacWest acquired assets and deposits from Los Padres Bank of Solvang.
- 2009
Affinity Bank assets acquired
[1]PacWest acquired assets and deposits from Affinity Bank of Ventura.
- 2008
Holding company adopts PacWest name
[1]First Community Bancorp reincorporated in Delaware and changed its name to PacWest Bancorp.
- 2008
Security Pacific Bank assets acquired
[1]PacWest acquired assets and deposits from failed Security Pacific Bank of Los Angeles.
Products and positioning
A California-focused commercial bank holding company serving small and medium-sized businesses, entrepreneurs, commercial real-estate borrowers, and selected specialty-finance customers.
Commercial banking · 2006
Pacific Western Bank commercial banking
PacWest's principal banking platform provided commercial banking services to small and medium-sized businesses and other commercial customers. Its activities included business deposits, lending, relationship banking, and banking services for specialized customer groups. Pacific Western Bank operated branches primarily in southern and central California, supplemented by locations and loan-production offices outside the state.
Specialty finance · 2014
CapitalSource
CapitalSource was a specialty-finance platform acquired by PacWest in 2014. It broadened the company beyond conventional deposit-taking and commercial banking by adding financing capabilities for business and commercial borrowers. The CapitalSource name was retired in 2019 as PacWest consolidated acquired businesses under the Pacific Western Bank brand.
Venture banking · 2015
Square 1 Bank
Square 1 Bank was a Durham, North Carolina-based bank serving venture-backed companies and participants in the innovation economy. PacWest acquired its parent, Square 1 Financial, in 2015. The brand was retired in 2019, while venture-banking capabilities remained part of the broader Pacific Western Bank platform.
Real-estate specialty lending · 2021
Civic Financial Services
Civic Financial Services was a specialty lender focused primarily on loans to home flippers and other residential-property investors. PacWest acquired the business in 2021. After delinquent loans increased, PacWest halted new activity in the division in February 2023 and sold the subsidiary later that year.
Commercial lending
Commercial real-estate and construction lending
PacWest offered financing connected with commercial real estate and construction projects, including loan commitments and construction-loan portfolios. During the 2023 banking crisis, it reduced this exposure by selling construction loans to Kennedy Wilson and New York City construction-loan commitments to Cain International.
Banking services
Homeowners-association services
Homeowners-association banking was among the specialized services associated with the combined banking platform after PacWest's acquisition and integration activity. The offering supported banking and financial administration needs of homeowners associations and related property-management organizations.
Brand decisions
2023
Pause of Civic Financial originations and workforce reductionStrategyBackground
Civic Financial Services experienced a significant increase in delinquent loans.
Action taken
PacWest halted new activity at Civic Financial and announced approximately 200 layoffs.
Aftermath
The decision reduced activity in a stressed specialty-lending division before the subsidiary was sold later in 2023.
2023
Sale of construction-loan assetsStrategyBackground
PacWest faced deposit outflows and market pressure during the 2023 regional-banking crisis.
Action taken
The company sold approximately $2.6 billion of real-estate construction loans to Kennedy Wilson and later sold New York City construction-loan commitments to Cain International.
Aftermath
The sales reduced selected real-estate lending exposures and formed part of the company's liquidity and balance-sheet restructuring.
Real-estate construction loans sold. $2.6 billion → $200 million discount to reported loan value (May 2023)
2023
Sale of lender-finance portfolioStrategyBackground
PacWest was restructuring its balance sheet amid deposit pressure and investor concern about regional banks.
Action taken
PacWest sold a lender-finance portfolio to Ares Management.
Aftermath
The transaction further reduced assets associated with selected specialty-finance activities.
Lender-finance portfolio. $3.54 billion (June 2023)
2023
Acquisition by Banc of CaliforniaM&ABackground
PacWest experienced deposit outflows and financial-market pressure during the 2023 banking crisis, while Banc of California pursued a combination that would expand its commercial-banking platform.
Action taken
Banc of California acquired PacWest Bancorp in November 2023. Affiliates of Warburg Pincus and Centerbridge Partners invested $400 million in the combined company.
Aftermath
PacWest ceased to exist as an independent public bank holding company, while the combined institution continued serving small and medium-sized businesses and retained capabilities including lending, venture banking, healthcare and education banking, warehouse lending, homeowners-association services, and payment processing.
Investment by affiliates of Warburg Pincus and Centerbridge Partners. $400 million (November 2023)
2019
Consolidation of acquired banking brandsStrategyBackground
PacWest had expanded through the CapitalSource and Square 1 Financial acquisitions and operated multiple inherited brand names.
Action taken
The company retired the CapitalSource and Square 1 Bank names and consolidated their activities under Pacific Western Bank.
Aftermath
The move simplified the customer-facing brand structure while preserving the acquired businesses' banking and specialty-finance capabilities.
Recent events
- 2023
PacWest announces layoffs and pauses new Civic Financial activity[1]
Leadership change · Other
PacWest announced approximately 200 layoffs and halted new activity at Civic Financial Services after reporting a significant rise in delinquent loans in that division.
- 2023
PacWest deposits decline during regional-banking crisis[1]
Other · Regulation
During the first quarter, deposits declined from $33.9 billion to $28.1 billion as customers reassessed regional-bank risk amid the 2023 banking crisis.
- 2023
PacWest sells Civic Financial Services[1]
M&A
PacWest sold its specialty lender Civic Financial Services as part of its response to credit deterioration and balance-sheet pressure.
- 2023
PacWest sells real-estate construction loans to Kennedy Wilson[1]
Pricing
The company sold approximately $2.6 billion of real-estate construction loans at a reported $200 million discount.
- 2023
PacWest sells New York City construction-loan commitments[1]
Other
PacWest sold New York City construction-loan commitments with an aggregate balance of approximately $500 million to Cain International.
- 2023
PacWest sells lender-finance portfolio to Ares Management[1]
M&A
The bank sold a lender-finance portfolio reported at approximately $3.54 billion as part of its balance-sheet restructuring.
- 2023
Banc of California acquires PacWest[1]
M&A
Banc of California acquired PacWest Bancorp, with affiliates of Warburg Pincus and Centerbridge Partners investing $400 million in the combined company.
Sources1 sources
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