PacWest Is Said to Explore Sale of Lender Finance Division

PacWest Bancorp, a regional bank left reeling following the collapse of two rival lenders last month, is exploring a sale of its lender finance arm, according to people familiar with the matter.

The Beverly Hills, California-based bank is working with a financial adviser to solicit interest in the business, said the people, who asked to not be identified because the matter isn’t public. An agreement could be reached within two months, one of the people said.

Unloading the unit would shrink PacWest’s balance sheet while freeing up capital, the people said. No final decision has been made and PacWest ...