PacWest shares up after selling $2,6 bln loans to Kennedy-Wilson

Shares of regional bank PacWestBancorp (PACW.US) are gaining nearly 4% before the open on Wall Street. The reason for the increases is reports of the sale to Kennedy-Wilson Holdings of a portfolio of 74 real estate construction loans with an outstanding balance of about $2.6 billion.

• In the announcement, the bank indicated it would also sell an additional six real estate loans with a balance of $363 million. PacWest has focused on real estate-related products including homeowners association (HOA) banking. Back in February, the bank announced that it was restructuring its Civic loans division to improve profitability. 
• In early May, the bank reported that its deposits had dropped significantly. It later indicated that it was in discussions with potential investors and business partners with whom it was considering various options to improve operations. The market received the latest news very positively; The construction loan deal is expected to close in several tranches in the second quarter and early third quarter, still in 2023.

PacWest Bancorp (PACW.US) shares, D1 interval. Source: xStation5