Barclays PLC has taken part in an asset purchase of one of the banks stricken by the US regional banking crisis in March.
PacWest Bancorp has sold a US$3.54bn loan portfolio to asset manager Ares Management in a deal part-financed by the UK bank, according to Reuters.
The deal sent shares in PacWest more than 6% higher and followed earlier announcements that it was planning divestments to shore up its balance sheet.
"This transaction will improve our liquidity and capital as we continue to implement our announced strategy to return our focus to relationship-based community banking," PacWest chief executive officer Paul Taylor said in a statement.
The bank has also recently sold its real estate lending unit and much of its real estate loan book.
Regional banks such as PacWest, Western Alliance Bancorp, Comerica (NYSE:CMA) and Zions Bancorp came under intense pressure in March following the collapse and subsequent sales of SVB, Signature and First Republic
PacWest and these others have been supported by the Federal Reserve's Bank Term Funding Program since then, but this loan sale is another indicator that the situation is stabilising, suggested observers.
"This and the prior loan sale are going to build capital levels nearly 200 basis points in the quarter. That should give people better comfort about the health of the balance sheet," said Christopher McGratty, head of US bank research at KBW.
This latest package contained PacWest’s high-quality, asset-backed consumer, small business loans, car and property finance.
Regional banks are said to be keen to get rid of this type of floating rate debt at present to minimise bad debt risks as interest rates rise with specialist asset managers such as Ares happy to take them on.
Ares said its alternative credit arm bought PacWest's loans with financing from Barclays.