Banc of California and PacWest Bancorp have announced a stock-for-stock merger to create a $36 billion bank.

The lenders will sell $400 million of new shares to Warburg Pincus and Centerbridge Partners to fund the combination.

The combined bank will have $25.3 billion in loans and over 70 California branches.

Banc of California CEO Jared Wolff will lead it in Los Angeles.

The merger is expected to finish in late 2023 or early 2024.

PacWest’s market worth is $1.24 billion, 63% greater than Banc of California’s, and the competitive environment in California has changed dramatically in the past 18 months