HomeStreet to Sell $990 Million in Loans to Bank of America

Core Insights - HomeStreet Bank's parent company has agreed to sell $990 million in multifamily commercial real estate loans to Bank of America, with the sale price being 92% of the principal balance of the loans, expected to close by December 31 [1][2] Financial Performance - The loan sale is a response to the current interest rate environment, as the loans being sold are primarily lower yielding and have longer durations than the overall portfolio [2] - HomeStreet has faced pressure from higher deposit costs while earning less on investments, reporting a net loss of $7.28 million in the third quarter, marking its fourth consecutive quarter of losses [2] Strategic Plans - The loan sale is part of a new strategic plan aimed at returning the bank to profitability early next year [3] - HomeStreet's planned merger with FirstSun Capital Bancorp failed to secure necessary regulatory approvals, leading to discussions about alternative regulatory structures for the merger [3][4] Merger Details - The proposed merger was initially announced in January, with expectations of creating a bank with combined assets of approximately $17 billion, focusing on operations in key markets in the Southwest and West Coast [4]