Western Pacific Bank, the exclusive property subsidiary company of PacWest Bancorp, announced on Tuesday to have acquired Civic financial services, a private lender aimed at real estate investors.
Wedgewood, a real estate investment company that focuses on distressed properties, was the seller of Civic. Terms of the contract are not disclosed.
Pacific Western Bank hailed the acquisition as a strategic step in specialized areas of the non-QM market. Civic typically lends money to investors who need bridging loans, financing for flips, rentals, or refurbishments. It also offers multi-family loans.
“This acquisition opens the door for us to grow in private lending with a proven market leader, creating value for both of our organizations. We are delighted to welcome the talented CIVIC team to Pacific Western Bank, ”said Matt Wagner, President and CEO of Pacific Western Bank.
Civic has funded more than 10,000 loans to real estate investors, totaling more than $ 4.4 billion since its inception in 2014, the company said. In 2020, it generated over $ 1 billion as investors sought new opportunities amid historically low interest rates.
HousingWire recently spoke with Mike Fierman, Managing Partner and Co-CEO of Angel Oak, about the outlook for non-QM loans for 2021 and how Angel Oak’s ‘original to keep’ model benefits the initiators.
Presented by: Angel Oak
Over the past few years, Civic has strived to expand its reach into the non-QM market, launching a loan program in 2019 which targeted real estate investors who wish to acquire rental property but “may not meet the requirements of the conventional lending space”.
That same month, CIVIC released a corresponding lending channel that would allow lenders to enter into loans to real estate investors on their own behalf and access warehouse lines. The chain has made sure that lenders who want to give loans to real estate investors can use Civic directly for their financing.
“As a member of PacWest Bancorp, CIVIC is poised to dominate our market more fiercely than ever before,” said William Tessar, president of Civic. “Most importantly, PacWest Bancorp shares the values on which our company is built as well as our vision and goals. With a strong capital base, we have the ability to continue to invest in scaling our infrastructure and operations and expanding into new markets. “
PacWest’s latest acquisition is one of many subtle clues that the company is planning long-term moves. On Friday, the commercial bank announced the first step of a “senior leadership transition plan” which is expected to take place over the next three years.
The plan will retain Wagner as president and CEO until December 31, 2023, after which time the company will move him to the role of executive chairman of PacWest Bancorp.
“Matt has built an incredible business from his humble beginnings as a $ 200 million asset bank from San Diego to a $ 29 billion asset bank doing business nationwide. We believe that the current leadership team can build on the success of the past 20 years, ”said John Eggemeyer, Chairman of the Board of PacWest Bancorp, in a statement.
Who will succeed Wagner has not yet been revealed.