2023-05-24 08:38:31 ET
PacWest Bancorp ( NASDAQ: PACW ) stock drove as much as 9.8% in Wednesday premarket trading after the struggling regional lender struck a deal to offload its property lending arm, Civic Financial Services (CIVIC), to real estate financing company Roc360 for an undisclosed amount .
Under the terms of the deal, announced late Tuesday evening, New York-based Roc360 purchased CIVIC's origination assets, but not its previously extended loans or loan servicing operations.
Since its inception, CIVIC has funded more than $9.4B through its borrower-direct, broker, and correspondent channels.
The move comes just a day after PacWest ( PACW ), in an effort to strengthen its balance sheet following turmoil across the sector, agreed to sell a portfolio of 74 real estate construction loans with a principal balance of around $2.6B to a subsidiary of real-estate investment firm Kennedy-Wilson Holdings ( KW ).
Founded in 2014, Roc360 provides real estate investors lending, servicing, insurance and valuation. Through its lending affiliates, it has funded almost $25B in loans throughout the U.S.
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PacWest stock gaps up on sale of property lending arm