PacWest to Sell Civic Financial to Real Estate Lender Roc360

·1 min read

(Bloomberg) -- PacWest Bancorp agreed to sell its Civic Financial Services unit to real estate lending firm Roc360, as the regional bank seeks to bolster liquidity following turmoil among its peers.

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Roc360 has purchased the origination assets of Civic Financial, the New York-based firm said in a statement Tuesday. Excluded from the sale are previously originated, loans and loan servicing operations.

Civic Financial, which PacWest acquired in early 2021, specializes in so-called residential business-purpose loans, or mortgages explicitly made for a borrower’s investment property. Civic has lent more than $9.4 billion through its borrower-direct, broker, and correspondent channels since 2014, according to the statement.

Representatives for Beverly Hills-based PacWest didn’t immediately respond to a request for comment placed outside business hours. The Wall Street Journal reported the news earlier, citing Maksim Stavinsky, Roc360’s co-founder and president.

PacWest rose as much as 9.8% in premarket trading on Wednesday. Shares of PacWest are up 29% this week through Tuesday after it agreed to sell a $2.6 billion portfolio of real estate construction loans although the stock is still down 68% so far this year.

Read More: PacWest to Sell $2.6 Billion Real Estate Loans at Discount

--With assistance from Jenny Surane.

(Adds details from Roc360 statement, pre-market trading.)

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