The parent company is based in Seattle. home street bank agreed to sell $990 million in multifamily commercial real estate loans to bank of america.
The price, including the withheld payments, is 92% of the principal balance of the loan, and the loan sale is expected to close by Tuesday (December 31). home street He spoke on Friday (December 27). press release.
“The pricing of loan sales reflects the current interest rate environment and sold These are primarily low-yield loans with terms longer than the entire portfolio. ” mark masonsaid HomeStreet's Chairman of the Board, President and CEO in a release. “Proceeds from the sale of loans are used repay [Federal Home Loan Bank (FHLB)] Advance payment and intermediary deposit which one They carry significantly higher interest rates than our core deposits. ”
According to Bloomberg, HomeStreet has been under pressure for some time with higher deposit payments and lower returns on investments. reported Friday. The bank reported a net loss of $7.28 million in the third quarter, marking the fourth consecutive quarter of a loss.
Mason said in a press release Friday. “Executing this agreement and completing the sale of our $990 million multifamily loan is the first step in executing our new strategic plan.” which one As a result, we expect profitability to return on a banking and consolidated basis early next year. ”
HomeStreet said of its plans in October: merger and First Sun Capital Bancorp failure to obtain necessary regulatory approvals; and that first son and its subsidiaries, sunflower bankwas asked to withdraw its merger application.
The bank added: that and first sun The companies had been discussing alternative regulatory structures for the merger and the terms for terminating the merger agreement if the alternative structure was not viable.
HomeStreet and First Sun announced plans merger In January, it said the merger would create a bank with about $17 billion in assets and operating in “the nation's best markets” in the Southwest and West Coast.
