PacWest Stock Is Sliding, Banc Of California Shares Are Surging: What's Going On?

Banc of California, Inc. BANC shares are trading higher Tuesday following a report suggesting the bank is in talks to combine with PacWest PACW. PacWest shares are moving lower on the news. 

What To Know: According to a Wall Street Journal report, the two regional lenders are in advanced talks to combine in a move that aims to further strengthen their businesses following the banking crisis earlier this year.

Following the bank failures in the spring, PacWest has been at the focal point of concerns regarding the regional-banking system. The deal could be a defensive move by the company. The report indicates a deal could be announced as soon as today.

Both Banc of California and PacWest are set to report second-quarter earnings after the market close. Banc of California is expected to report earnings per share of 30 cents and revenue of $71.65 million. PacWest is expected to report earnings per share of 20 cents and revenue of $51.36 million, according to Benzinga Pro.

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BANC, PACW Price Action: Banc of California is down about 8% year-to-date, while PacWest is down more than 65%.

At the time of publication, Banc of California shares were up 11.2% at $14.62, while PacWest shares were down 24.5% at $7.96 according to Benzinga Pro.

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