LOS ANGELES, April 1, 2021 (GLOBE NEWSWIRE) – PacWest Bancorp (Nasdaq: PACW) (“PacWest”) today announced that its wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”), has entered into an agreement definitive agreement to acquire MUFG Union Bank, NA (“Union Bank”), a service division of the Homeowners Association (“HOA”). The HOA Services Division provides a full range of banking services to community management companies and their homeowner associations. This acquisition will significantly expand the Bank’s existing HOA banking practice, which provides security boxes, electronic debt processing and other financial services to HOA management companies.
The Bank will acquire certain assets and assume certain liabilities related to the HOA services division of Union Bank for a premium of 5.9% on deposits plus the net book value of certain assets and liabilities assumed for a cash consideration. ‘approximately $ 250 million. The final consideration will be based on the closing balances.
“We are very pleased to announce this acquisition which we believe will significantly strengthen our position in meeting the specialized banking needs of the community management companies and the HOA clients they serve,” said Matt Wagner, President and CEO. management of PacWest. “This HOA business, under the continued leadership of Kimberly Siebler and her team, will provide Pacific Western Bank with what we believe to be a strong HOA banking technology platform and an experienced and accomplished team in a niche market segment. important.”
Union Bank’s HOA services division is a long-standing provider of specialist HOA banking services to a national customer base with approximately $ 4 billion in deposits. The management team and existing employees will move to the Bank with the HOA Services division as part of the acquisition closing, which is expected to occur in the fourth quarter of 2021, subject to regulatory approvals and customary closing conditions.
This acquisition advances the Bank’s strategy of broadening its product offering to its clients and diversifying its revenues and sources of funding. Management believes that the high quality, low cost deposits of the HOA business unit will diversify the Bank’s existing core deposits and provide an attractive source of funding in a rising interest rate environment.
Piper Sandler & Co. acted as financial advisor to PacWest in connection with the transaction. Holland & Knight LLP served as legal counsel to the Bank and PacWest. Keefe, Bruyette & Woods, Inc., a Stifel company, acted as financial advisor to Union Bank. Pillsbury Winthrop Shaw Pittman LLP was Legal Counsel to Union Bank.
ABOUT PACWEST BANCORP
PacWest Bancorp (“PacWest”) is a banking holding company with more than $ 29 billion in assets headquartered in Los Angeles, California, with an executive office in Denver, Colorado, with a wholly owned banking subsidiary , Pacific Western Bank (the “Bank”)). The Bank has 70 full-service branches located in California, one branch in Durham, North Carolina, and one branch in Denver, Colorado. The Bank provides community banking products, including loans and comprehensive deposit and cash management services to small and medium-sized businesses, primarily through our California-based branches and the Denver, Colorado branch. The Bank offers domestic lending products, including asset loans, equipment and mortgage loans, as well as cash management services to mid-market enterprises established nationwide. The Bank also offers venture banking products, including a full range of financial services focused on corporate and venture capital firms and their venture and private equity investors, with offices located in hubs. key innovations across the United States. For more information on PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.
This communication contains certain forward-looking information intended to be safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995 regarding PacWest, the Bank, the HOA Services division of Union Bank and the proposed acquisition. Statements that are not historical or current facts, including statements about future financial and operating results, expectations or intentions are forward-looking statements. These statements are based on information available at the time of communication and are based on the current beliefs and expectations of PacWest management and are subject to significant risks, uncertainties and contingencies, many of which are beyond the control of PacWest, Pacific Western Bank and Union. Bank. These risks and uncertainties include, but are not limited to, the following factors: synergies and other financial benefits expected from the acquisition may not materialize on schedule or at all, regulatory approvals for the acquisition may not materialize. not be obtained or unfavorable regulatory conditions may be imposed as part of the regulatory approvals of the acquisition, the closing conditions of the acquisition may not be met and the loss of customers and / or personnel may have a negative impact on the financial benefits of the acquisition. The COVID-19 pandemic is negatively affecting PacWest, its employees, customers and third-party service providers, and the ultimate magnitude of the impacts on its business, financial condition, results of operations, liquidity and outlook is uncertain. The duration of the COVID-19 pandemic and the severity of its impact on key macroeconomic indicators such as unemployment and GDP can have a significant impact on our allowance for bad debt and the related allowance for bad debt. Continued deterioration in general business and economic conditions could adversely affect PacWest’s revenues and the value of its assets, including goodwill and liabilities, result in a credit crunch and increase stock price volatility. In addition, PacWest’s results could be affected by changes in interest rates, continued high unemployment rates, deterioration in the credit quality of its loan portfolio or the value of collateral securing these loans, deterioration in the value of its investment securities, the extent of individual loan losses on safety watch loans and legal and regulatory developments. Actual results may differ materially from those stated or implied in forward-looking statements due to various factors, including risk factors described in documents filed by PacWest with the United States Securities and Exchange Commission.
We have no obligation (and expressly disclaim any such obligation) to update or change our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
|Matthew P. Wagner
President and CEO
|Bart R. Olson
Executive Vice President and Chief Financial Officer
|William J. Black
Executive Vice President
Strategy and business development