Investing.com -- Shares in PacWest Bancorp (NASDAQ:PACW) surged on Wednesday after the embattled regional bank reached a deal to sell its real estate lending division.
New York-based Roc Capital Holdings LLC, known as Roc360, said in a news release that it will be acquiring Civic Financial Services, which specializes in offering loans to landlords and investors looking to improve and resell residential properties.
News of the deal was first reported by the Wall Street Journal.
PacWest, which did not provide a comment in the statement, bought Civic in 2021 in a bid to diversify its revenue stream and expand its lending portfolio.
The Los Angeles-based lender has come under heavy pressure in recent months after the collapse of Silicon Valley Bank sparked concerns over the health of midsize U.S. banks.
PacWest shares have shed more than two-thirds of their value so far in 2023.
However, the stock has seen some gains in the past two weeks as hopes grow that the banking crisis is showing signs of abating. Shares increased by over 7% on Tuesday after PacWest announced that it would offload $2.6 billion worth of loans from its portfolio in order to shore up its finances.