HomeStreet Bank to sell $990 mln multifamily loan portfolio to BofA (updated)

Mechanics Bancorp

27/12/2024 13:32

(Adds price in paragraph 2, CEO comment in paragraph 3)
       Dec 27 (Reuters) - HomeStreet Bank  HMST.O  said on
Friday it has agreed to sell nearly $990 million of its
multifamily commercial real estate loans to Bank of America
 BAC.N .
    BofA has agreed to pay about $906 million for the loans,
which accounts for nearly 92% of the value of the portfolio,
HomeStreet said.
    "Entering into this agreement ... is the first step in
implementing a new strategic plan, which we expect to result in
a return to profitability for the bank and on a consolidated
basis early next year," HomeStreet CEO Mark Mason said.
    Proceeds from the sale would be used to repay the debt it
has taken from the Federal Home Loan Bank and for paying down
brokered deposits, which are costlier than core deposits,
HomeStreet said.

 (Reporting by Niket Nishant in Bengaluru; Editing by Shilpi
Majumdar)
 ((Niket.Nishant@thomsonreuters.com))