HomeStreet Corporation, the parent company of HomeStreet Bank, has completed the sale of $990 million in multifamily commercial real estate loans to Bank of America. Announced on December 31st.
Planned contracts announced 4 few days ago. BofA has paid approximately 92% of the principal balance on the loan.
Mark Mason, HomeStreet’s CEO and president, said most of the proceeds were used to repay Federal Home Loan Bank loans and brokered deposits that carry higher interest rates than core deposits. said.
In a prepared statement, he said the sale was “the first step in implementing a new strategic plan that is expected to bring the bank back to consolidated profitability early next year.” .
home street Reported a loss in the third quarter $7.28 million in October.
Mason said the slight discount in price “reflects the current interest rate environment and reflects that the loans being sold are primarily low-yield loans with longer durations than the overall portfolio.” said.
This is BofA’s second large multifamily CRE loan portfolio purchase in 2024. The bank announced it would purchase 2,000 similar loans from the federal government in Washington. $2.9 billion in May. transaction completed 1 month laterAccording to WaFd, this is the largest CRE loan sale in history by a company other than the Federal Deposit Insurance Corporation.
A BofA spokesperson declined to comment to Banking Dive.
Weeks before selling loan portfolio to BofA, HomeStreet canceled the merger plan Partnered with Denver-based FirstSun Capital Bancorp.
The proposed merger was announced last January with several changes, including “pursuing a merger.” Alternative regulatory structuresAccording to the securities filing, the two companies were dissolved “in the best interest of each company.”
A HomeStreet spokesperson declined to comment beyond the press release.
