PacWest Bank to Sell $2.6 Billion in Real Estate Loans, Sparks Stock Rally.

PacWest Bancorp's stock rose 21% after announcing the sale of a $2.6 billion portfolio of 74 real-estate-construction loans to refocus on its core community-banking business. The move sparked a rally in regional-bank stocks, with Hovde Group initiating coverage of Zions Bancorp with a bullish outperform rating. The sale of the loans is subject to Kennedy Wilson's satisfactory due diligence and is expected to close in several tranches in the second and third quarters. PacWest shares are down 73% in the year to date, caught up in the turmoil created by bank failures.