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PacWest Announces CapitalSource to Continue Nationwide Service

April 09, 2014, 07:22 AM
Filed Under: Mergers & Acquisitions

PacWest Bancorp ("PacWest") announced that on April 7, 2014, it completed its previously announced merger with CapitalSource Inc. ("CapitalSource"). CapitalSource Bank, a wholly-owned subsidiary of CapitalSource, merged with and into PacWest's banking subsidiary, Pacific Western Bank.

The acquisition, which was first announced on July 22, 2013, was concluded following receipt of shareholder approval from both institutions and all required regulatory approvals. As of December 31, 2013, CapitalSource had $8.9 billion in assets and PacWest had $6.5 billion in assets. As of December 31, 2013, on a pro forma combined basis with CapitalSource, PacWest had approximately $15.4 billion in assets.

Upon closing, PacWest created the CapitalSource division of Pacific Western Bank. This division, which will operate under the CapitalSource name, will continue to serve businesses nationwide with a full spectrum of middle-market lending. Pacific Western Bank, through its combined network of 81 branches throughout California, will continue to serve small and medium-sized businesses with financing solutions, cash management and deposit services.

Matt Wagner, CEO of PacWest Bancorp and Pacific Western Bank, stated, "The culmination of this merger is a huge win for stockholders and customers of both institutions. The combined company has a nationwide lending engine with excellent credit quality and an enviable deposit and community banking franchise. Customers of both institutions will benefit from a broader array of lending and deposit services than either institution offered alone."

Jim Pieczynski, former CEO of CapitalSource who joined PacWest as a director and as President of the CapitalSource division of Pacific Western Bank, commented, "Our management teams have blended extremely well and are committed to the success of the combined organization. From deposit gathering among CapitalSource borrowers to broader lending to Pacific Western Bank customers, the integration of the two institutions has gone well."

PacWest is a bank holding company with $6.5 billion in assets as of December 31, 2013, with one wholly-owned banking subsidiary, Pacific Western Bank ("PWB"). On a pro forma combined basis with CapitalSource Inc., PacWest had approximately $15.4 billion in assets as of December 31, 2013. Through 81 full-service branches, including the nine acquired CapitalSource Bank branches which will be integrated over the weekend of April 12, 2014, PWB provides commercial banking services, including real estate, construction, and commercial loans, to small and medium-sized businesses. PWB's branches are located throughout California. Pacific Western's divisions CapitalSource, First Community Financial and Pacific Western Equipment Finance, and its subsidiaries BFI Business Finance and Celtic Capital Corporation, deliver a full spectrum of financing solutions nationwide across many industries and property types.

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