HomeStreet dips after buyout deal with FirstSun Capital falls through

Mechanics Bancorp

19/11/2024 17:59

(Updates)
    ** Regional lender HomeStreet's  HMST.O  shares fall as much
as 5.1%; last down 1% at $10.97
    ** Peers FirstSun Capital Bancorp  FSUN.O  and HMST have
mutually agreed to terminate their buyout deal, the companies
say
    ** In January, FSUN had agreed to buy HMST for $14.75/share,
which was revised to $13.53/share in May
    ** Deal failed to secure the necessary regulatory approvals,
the companies had said last month 
    ** Piper Sandler says the most likely scenario is for HMST
to sell to another bidder, since going alone would likely
require more onerous loan sales
        ** Brokerage says potential buyers could be ones that
want HMST's unique Fannie Mae delegated underwriting and
servicing (DUS) license that only 24 other institutions hold
across the country
  
        ** DUS program allows lenders such as HMST to
underwrite, close and service loans
  
    ** As of last close, HMST shares up 7.6% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))