The newly-merged $36 billion Banc of California Inc., which designated Brentwood as its headquarters on Tuesday, is eyeing market expansion through the former PacWest Bancorp’s local assets.
According to Debora Vrana, executive vice president and chief communications officer at the company, in conjunction with moving its executive team to the city, Banc of California continues to evaluate outstanding PacWest office real estate with the intent to expand its presence here. PacWest previously had the naming rights on its headquarters office in Beverly Hills as well as an office building facing the 405 Freeway.
“We expect signage on major locations to convert to Banc of California signage soon, including on the 405 corridor and in Beverly Hills,” Vrana said in a statement.
The move won’t relocate hundreds of Banc of California jobs to the area, as the company’s 250 employees now working in the city include former PacWest employees who transitioned to work under the new merged banner. In total, the company has over 2,300 employees.
In absorbing PacWest, a bank which teetered on the edge due to a deposit run and skyrocketing interest expenses, the new $36 billion-in-assets combined entity becomes Los Angeles County’s third largest bank – the same spot occupied by PacWest.
According to Banc of California’s Chief Executive Jared Wolff, discussions to move its headquarters to Los Angeles began after the merger was announced on July 25.
The executive says the city did not offer any incentives for the move, but while announcing the headquarters designation Banc of California donated $1 million to the newly created Mayor’s Contract Financing Assistance Program, which starting next year, will provide access to capital and low interest loans to small businesses that compete for city contracts.
“Los Angeles is the heart of California, it is the heartbeat of California business,” Wolff said. “Making it our headquarters will allow us to reinforce the commitment we have to Los Angeles.”
In the merger’s closing announcement, the bank said it will continue to sell off assets through the end of the first quarter next year as part of its balance sheet repositioning. PacWest and Banc of California already sold a combined $3.75 billion in connection with the merger to repay its wholesale borrowing and higher cost funding.
