It was another hard step for Pacific Western Bank. Earlier this week the news broke that it sold its CRE loan portfolio to Kennedy Wilson for $2.4 billion. Yesterday, the announcement was of the sale of Civic Financial Services (CIVIC), the banks residential business-purpose lending arm, to Roc Capital Holdings (Roc360) for an undisclosed amount.
Both moves are part of the banks attempt to walk back from a dangerous position as several other banks like Silicon Valley Bank, Signature Bank, and First Republic Bank found themselves without sufficient liquidity to satisfy heavy withdrawals and were then closed down by the Federal Deposit Insurance Corporation.
PacWest's first quarter earnings announcement in late April set off a rapid drop in stock price with a $1.21 billion net loss, which was $10.22 per share. That was a level of financial instability that the other banks hadn't shown. Shares are down to about a quarter of what they were as late as mid-February 2023.
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