bank of california (NYSE:) is currently engaged in advanced talks to acquire PacWest Bancorp (NASDAQ:), as the lender seeks to consolidate its position following the regional-banking crisis earlier this year. According to a report in The Wall Street Journal, which cited people familiar with the matter, an official announcement regarding the deal could be made today, coinciding with the scheduled release of financial results from both banks, assuming there are no unforeseen hurdles.

Following the news, shares of Bank of California jumped more than 22%, while shares of PacWest fell nearly 28% intra-day today.

Despite the challenges associated with the regional-banking system, both banks have weathered the recent turmoil relatively well, and their stocks show some signs of recovery. To bolster its balance sheet, PackWest sold assets, while the California-based bank turned profitable during the first quarter.

According to sources, the acquisition will be backed by equity contributions from private-equity firms Centerbridge and Warburg Pincus, both of which have a history of investing in financial companies. These companies are set to provide the only external source of funding for the deal.