BANC - Why PacWest Bancorp Stock Just Exploded 25% Higher
2023-07-26 15:45:13 ET
Regional bank PacWest Bancorp (NASDAQ: PACW) reported its second-quarter results Tuesday after the bell, with adjusted profits coming in 10% ahead of expectations at $0.22 per share. That wasn't, however, the main reason why PacWest shares soared Wednesday, up by 25.3% as of 2:05 p.m. ET.
The reason why that happened is simple: Also on Tuesday evening, Banc of California (NYSE: BANC) revealed that it is buying PacWest.
The merger of $850 million market cap Banc of California and $1.15 billion market cap (as of Wednesday) PacWest will result in a single bank with $36.1 billion in assets, $25.3 billion in loans outstanding, and $30.5 billion in deposits. It will be headquartered in Los Angeles, and focus its business on Southern California, where it will operate some 70 branches. Post-merger, the institution will retain the Banc of California name.
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Why PacWest Bancorp Stock Just Exploded 25% Higher