In a filing with the Securities and Exchange Commission (SEC), PacWest Bancorp (PWB) announced the restructuring of its subsidiary Civic Financial Services, LLC. This restructuring is set to include 200 layoffs that will take effect in the second quarter of 2023.
PWB said it intended to issue a WARN notice to Civic employees following the filing with the SEC.
PWB stated the position eliminations were expected to result in approximately $30–$40 million of annualized savings for the company.
“This restructuring aligns with the company’s strategy to focus on relationship-based community banking and to improve capital, liquidity, and operational efficiency,” it wrote.
Paul Taylor, PWB president and CEO, commented on the coming changes for Civic during the company’s fourth-quarter earnings release in January.
“In the fourth quarter, we initiated a new strategic plan designed to maximize shareholder value by strengthening our community bank focus, exiting non-core products, and improving our operational efficiency,” Taylor said.
The restructuring announcement followed the departure of two of Civic’s top executives — President William Tessar and Executive Vice President and Chief Legal Counsel Alan Dettelbach.
According to reports, the two executives left after failing to negotiate a deal that would have spun off Civic from PWB control.
“Over the last four months, and at PWB’s request, Alan Dettelbach, our general counsel and I had engaged in negotiations that would’ve spun Civic out from under the bank,” Tessar’s email announcing his departure read. “In recent days, those conversations have stalled. The bank is no longer interested in pursuing those discussions and has decided to take the company in a different direction.”