Total assets exceeding 250 billion yuan! These two banks will merge with Bank of California | Banks | Merger
According to CNN, on July 25th local time, Western Pacific Bank of America and Bank of California issued a joint statement, stating that the two banks will merge into a new bank with a total assets of $36 billion and raise $400 million in an equity transaction for the new bank.
According to reports, the new bank after the merger of Western Pacific Bank and Bank of California in the United States will be named Pacific Western Bank, headquartered in Los Angeles, California. California Bank CEO Wolf will continue to serve as the CEO of the new bank. The new bank has over 70 branches in the California region, and the merger of the two banks is expected to be completed as early as later this year. After the Wall Street Journal first reported the news on the 25th, the US stock market closed with WestPacific Bank's stock price falling by 27%, and then rising by over 30% in after hours trading. The stock price of Bank of California closed with an 11% increase, with a post market increase of over 8%.
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According to reports, after the successive closures of Silicon Valley Bank and Signature Bank this year, regional banks such as Western Pacific Union Bank are under tremendous pressure. In order to prevent depositors from losing their deposits, most regional banks in the United States chose to raise deposit interest rates in the second quarter of this year, but this also led to a decrease in bank revenue. The latest financial report shows that in the second quarter of this year, the total deposits of Western Pacific United Bank were 27.9 billion US dollars, and the net income loss reached 197.4 million US dollars. California Bank's second quarter revenue decreased by $2.4 million to $17.9 million, with total deposits of $6.9 billion, a decrease of $100 million from the first quarter.