By Denny Jacob
Shares of PacWest Bancorp saw a decline of 10% to $9.44 following a report from The Wall Street Journal that Banc of California is currently engaged in advanced discussions to purchase the company.
The announcement of a potential deal could be made as early as today, coinciding with the release of the financial results from both banks. However, this will depend on whether any unforeseen obstacles arise, according to sources familiar with the matter as cited by the Journal.
Upon hearing the news, shares of Banc of California rose by 7%, reaching $14.07. In response to the report, trading of PacWest was temporarily halted due to increased volatility.
PacWest has recently been the subject of concern in relation to the regional banking system. This is primarily due to the collapse of three lenders earlier this year, resulting in deposit outflows and a plummeting stock price for the Beverly Hills, California-based bank. Banc of California also experienced a significant drop in their shares during this period.