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PacWest restructures Civic Financial Services operations

PacWest Bancorp is reorganizing its operations to eliminate silos and unify business lines. This includes changes to the Civic Financial Services mortgage lending company. Paul Taylor, who was recently appointed president and CEO of PacWest, said that the company has a long history in acquisitions that have brought them great customers and talented workers, but also very different processes and cultures. “Now is the right time to focus on bringing together all of our resources to work more efficiently and uniformly as one company. Civic’s executive vice president and chief operational officer at PacWest, Mark Yung is now in charge. William Tessar, who was a Civic employee after the February 1, 2021 acquisition, has now left the company, according to Mortgage Professional America. Taylor stated that the parent company had been “hands-off” with Civic since the acquisition. He said, “The one thing that we know is that there’s too much overhead so we expect significant savings from this entity.” “And right now, we’re reviewing all of their products and deciding which ones we’ll keep and move forward with. “The changes will make Civic more profitable and lower PacWest’s risk profile for Pacific Western Bank, the parent bank. Fitch Ratings downgraded PacWest on August. Taylor stated that the markets are opening up in the non-qualified mortgage area. “We are considering selling some of this portfolio to reduce it. The corporate restructuring is underway as PacWest reported fourth-quarter net income of $39.6million, down from $122.2million in the third quarter and $136million in the fourth quarter 2021. Full-year earnings of $404.3 million decreased by 33% from almost $607 million in 2021. According to a Securities and Exchange Commission filing, PacWest had $125.4 million worth of goodwill associated with Civic at the time of the transaction. This is in addition to PacWest’s small balance multifamily lending business. Management made it clear that the company will continue to be involved in customer-based multifamily originations during the conference call. The company is also exiting premium financing. PacWest sold $1billion of securities during the fourth quarter at a loss $49 million to pay down Federal Home Loan Bank borrowings.