Los Angeles, California . . . PacWest Bancorp (Nasdaq: PACW) and Irvine-based Opus Bank jointly announced today that PacWest’s wholly-owned subsidiary, Pacific Western Bank, and Opus Bank have entered into a definitive agreement whereby Pacific Western Bank will sell 10 branches to Opus Bank. The branches to be sold are located in the cities of:
- Encino, Los Angeles (Westwood), Monrovia and South Pasadena, located in Los Angeles County, California;
- Chino and Twentynine Palms, located in San Bernardino County, California;
- La Quinta, located in Riverside County, California; and
- Carlsbad, El Cajon and La Mesa, located in San Diego County, California.
The transaction will result in the transfer of deposits to Opus Bank in exchange for a blended deposit premium of 2.5% applied to the deposit balances transferred at closing. Currently, the deposits of the offices to be sold total approximately $145 million. Although certain other immaterial assets related to the branches will be included in the transaction, no loans will be transferred. The transaction is expected to be completed before the end of the year subject to regulatory approval and other customary terms.
Matt Wagner, CEO of PacWest Bancorp, stated “The sale of these branches is part of our ongoing effort to improve our overall efficiency and profitability. Although the sale of these branches will not result in any material gain, the annual cost savings, representing noninterest expense less noninterest income, have been estimated to be $2.0 million after tax.”
Mr. Wagner continued, “Between now and the closing date, the PacWest and Opus teams will work closely with each other to assure a smooth transition for customers, communities and employees.”
Stephen H. Gordon, Chairman and Chief Executive Officer of Opus Bank commented, “This transaction represents an important step in Opus Bank’s strategic plan to expand into all the major metropolitan areas up and down the West Coast. The acquisition of these banking offices is consistent with Opus Bank’s long-term plan to build a relationship-based, super-community bank, providing high quality banking products, services, and solutions to its clients.” Mr. Gordon added, “The new client deposit relationships, bankers, and banking offices provide Opus Bank the opportunity to further expand its presence through Southern California by complementing its existing 23 banking offices in Los Angeles, Orange, and San Diego Counties, while additionally creating Opus Bank’s initial presence in Riverside and San Bernardino Counties. By further expanding our footprint, Opus Bank will be better positioned to fulfill our mission of financially backing businesses, entrepreneurs, real estate investors, professionals, and consumers, as they expand and grow.” Mr. Gordon concluded, “We look forward to welcoming our new bankers and clients, building upon these existing relationships, and further financing growth within our communities.”
The deposits being transferred represent approximately 3% of PacWest Bank’s total deposits at March 31, 2012. Following the transaction, Pacific Western Bank will continue to operate 66 branches throughout California.
There will be no changes to any Pacific Western Bank customer accounts until after the transaction is completed, and the banks will continue to collaborate to ensure a smooth transition for the businesses and individuals they serve. Personnel associated with the branches to be sold will be invited to join Opus Bank upon completion of the transaction. Over the next several weeks, Pacific Western Bank and Opus Bank will be communicating directly with customers and the affected branches to guide them through the process and assist with any questions.
ABOUT PACWEST BANCORP
PacWest Bancorp (“PacWest”) is a bank holding company with $5.4 billion in assets as of March 31, 2012, with one wholly-owned banking subsidiary, Pacific Western Bank (“Pacific Western”). Through 76 full-service community banking branches, Pacific Western provides commercial banking services, including real estate, construction and commercial loans, to small and medium-sized businesses. Pacific Western’s branches are located throughout California in Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, San Diego, San Francisco, San Luis Obispo, San Mateo and Ventura Counties. Through its subsidiaries, BFI Business Finance and Celtic Capital Corporation, and its divisions First Community Financial and Pacific Western Equipment Finance, Pacific Western also provides working capital financing and equipment leasing to growing companies located throughout the United States, with a focus on the Southwestern U.S., primarily in Arizona, California, Utah and Texas. Additional information regarding PacWest Bancorp is available on the Internet at www.pacwestbancorp.com
. Information regarding Pacific Western Bank is also available on the Internet at www.pacificwesternbank.com
ABOUT OPUS BANK
Opus Bank, headquartered in Irvine, CA, is an FDIC insured California-chartered commercial bank with $2.4 billion of total assets, $1.6 billion of total loans, and $1.9 billion in total deposits, as of March 31, 2012. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients comprised of small and mid-sized commercial businesses, entrepreneurs, real estate investors, professionals, and consumers. Opus Bank offers a wide range of loan products, including commercial and industrial business, commercial real estate, multifamily residential, conforming and jumbo single-family residential, and consumer loans; and is a Small Business Administration (“SBA”) Preferred Lender. Opus Bank operates 47 banking offices, including 24 banking offices in California and 23 in the Seattle/Puget Sound region in Washington. Opus Bank has announced plans to open new banking offices in Gig Harbor, located in Pierce County; and Mount Vernon, located in Skagit County, Washington. For additional information about Opus Bank, please visit our website: www.opusbank.com
This press release contains certain forward-looking information about PacWest that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to: failure to obtain regulatory or other required approvals; an inability to achieve expected cost savings in the amounts or timeframes discussed if at all, or the costs associated with the transaction or the time needed to complete the transaction being greater than expected; and other risks that are described in PacWest’s public filings with the U.S. Securities and Exchange Commission (the "SEC"). If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, PacWest’s results could differ materially from those expressed in, implied or projected by such forward-looking statements. PacWest assumes no obligation to update such forward-looking statements.
For a more complete discussion of risks and uncertainties, investors and security holders are urged to read PacWest Bancorp’s annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed by PacWest with the SEC. The documents filed by PacWest with the SEC may be obtained at PacWest Bancorp’s website at www.pacwestbancorp.com
or at the SEC’s website at www.sec.gov
. These documents may also be obtained free of charge from PacWest by directing a request to: PacWest Bancorp c/o Pacific Western Bank, 275 North Brea Boulevard, Brea, CA 92821. Attention: Investor Relations. Telephone 714-671-6800.
Matt Wagner, 310-728-1020
Chief Executive Officer
Vic Santoro, 310-728-1021
Executive Vice President and CFO
Stephen H. Gordon, 949-251-8110
Chairman & Chief Executive Officer
Jeff Leonard, 949-250-9800
SVP, Director of Communications