PacWest Bancorp PACW has reportedly sold its Civic Financial Services unit, which specializes in lending to landlords and investors, to Roc360a real estate loan company.

PacWest has unrealized losses on its holdings of bonds and loans. If banks have to sell underwater assets to cover withdrawals from deposits, they will have to book the losses, a prospect that has investors nervous.

Some investors are also increasingly concerned about PacWest’s concentration of commercial real estate lending.

Citing Maksim Stavinsky, co-founder and president of Roc360, Wall Street Journal reported that the deal was finalized on Tuesday, but the terms were not disclosed.

“We view this as an opportunity to acquire valuable brands and assets that are selling at a discount due to the current market dislocations,” Stavinsky said. “It’s also an opportunity to further consolidate a highly fragmented space, which should strengthen pricing power.”

On Monday, the Pacific Western Bank voted a Kennedy Wilson Holdings, Inc Subsidiary for sale of a portfolio of 74 real estate construction loans of approximate principal amount Balance of $2.6 billion.

Kennedy Wilson will also assume any remaining financing obligations under the purchased loans.

In January, the bank announced the restructuring of Civic, a lending subsidiary, to improve its operations profitability and risk profile.

Civic Financial Services was founded in 2014 acquired from Pacific Western Bank in February 2021. Since its inception, CIVIC has funded more than 10,000 loans to real estate investors valued at more than $4.4 billion, the company announced at the time of the acquisition.

The Wall Street Journal reported that Roc360 would take over the company’s operations — its data, intellectual property, brand, and workforce, but not Civic’s previously made loans or credit-servicing activities.

Price promotion: PACW shares are up 0.14% to $7.39 during the pre-market session of last check on Wednesday.