Banc of California is in advanced talks to buy PacWest Bancorp, in a move by the lenders to further shore themselves up following a regional-banking crisis earlier this year, the Wall Street Journal reported. A deal could be announced as soon as Tuesday, when both banks are scheduled to report results, assuming there isn’t a last-minute snag. While the value of the tie-up isn’t likely to be huge by M&A standards — PacWest has a market value of just about $1 billion — it is a major milestone for a banking sector that was in turmoil earlier in the year and still faces lingering questions about its health. PacWest has been at the center of recent fears about the regional-banking system since the failure of three lenders this spring, with the Beverly Hills, Calif., bank beset by deposit outflows and a sinking stock price. Shares of Banc of California dropped significantly too. Still, both banks have come through the recent turmoil in relatively good health and both stocks have rebounded somewhat. PacWest has sold assets to shore up its balance sheet, while Banc of California remained profitable in the first quarter.
