A group of community activists is objecting to PacWest Bancorp’s deal to purchase CU Bancorp.
The 21 organizations, led by the California Reinvestment Coalition, sent a letter to the Federal Reserve Bank of San Francisco and the Federal Deposit Insurance Corp. claiming that the deal fails to meet the convenience and needs of their communities.
The groups claim that PacWest has not committed to workforce and supplier diversity, servicing nonurban centers and making sure that half of its small-business loans are for less than $150,000.
A spokesman for the $22 billion-asset PacWest, which agreed in April to buy the $3 billion-asset CU Bancorp for $705 million, said he was unable to immediately comment.
The community groups, which promote affordable housing, economic and community development, financial education, fair housing and consumer protection, want regulators to host a series of hearings on the deal. They also urged regulators to reject the merger, or to place conditions tied to the Community Reinvestment Act, unless PacWest makes more commitments to local communities.
The California Reinvestment Coalition, which has 300 nonprofits as members, has sparred with PacWest and other banks in the past over mergers. The group voiced concerns about PacWest’s CRA commitment when it agreed to buy CapitalSource. It also objected to the CIT Group-OneWest Bank merger.
The organization has won concessions from other banks in the past, including Cathay General Bancorp, City National and Banc of California.