PacWest Bancorp sees 200 job cuts at Civic Financial Services

In a regulatory filing, PacWest Bancorp announced additional details regarding the restructuring of Civic Financial Services. Civic, located in Redondo Beach, California, specializes in business-purpose residential non-owner-occupied investment properties. Last month, the company announced it recorded a goodwill impairment of $29M as part of a strategy to restructure Civic to improve its profitability and risk profile. This restructuring involves reducing the number of loan products offered, reducing loan growth compared to 2022 levels, and transferring the management of most Civic functions to company executives. In addition, the company plans to provide a WARN Act notice to Civic employees next week and anticipates that approximately 200 Civic positions will be eliminated, effective in the second quarter of 2023. These position eliminations are expected to result in approximately $30M-40M of annualized savings. This restructuring aligns with the company’s strategy to focus on relationship-based community banking and to improve capital, liquidity, and operational efficiency.