Bank of America to buy WaFd's multi-family loan portfolio for $2.9 bln (updated)

WaFd

17/05/2024 14:58

(Adds details and context from filing throughout)
       May 17 (Reuters) - Washington Federal Bank agreed on
Friday to sell a portfolio of commercial multi-family real
estate loans to Bank of America  BAC.N  for about $2.9 billion,
helping the regional lender cut its exposure to the troubled
sector. 
    The commercial real estate (CRE) sector, which has been
roiled by higher borrowing costs and lower occupancy, has become
a key cause of concern for investors and has drawn tough
regulatory scrutiny for regional lenders. 
    Parent company WaFd  WAFD.O , in a regulatory filing,
disclosed the portfolio of 2,000 commercial multi-family real
estate loans had an aggregate unpaid principal balance of $3.2
billion. 
    After the deal is closed, WaFd said BofA is planning to
enter into a structured transaction or loan sale with one or
more funds of Pacific Investment Management.
    WaFd shares were marginally up in morning trading on Friday.
The stock is down around 9% so far this year. 
     

 (Reporting by Manya Saini in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Manya.Saini@thomsonreuters.com;))