HomeStreet Bank Takes Major Step Towards Profitability
In a significant move, HomeStreet Bank has announced the sale of nearly $990 million worth of its multifamily commercial real estate loans to Bank of America. This strategic agreement marks a crucial step towards the bank’s goal of returning to profitability.
A New Chapter for HomeStreet
Under the terms of the deal, Bank of America will pay approximately $906 million for the loans, representing nearly 92% of the portfolio’s value. According to HomeStreet CEO Mark Mason, this agreement is the first step in implementing a new strategic plan aimed at restoring profitability to the bank and its consolidated operations by early next year.
Proceeds to Fuel Debt Repayment and Deposit Optimization
The proceeds from the sale will be utilized to repay debt owed to the Federal Home Loan Bank and to reduce brokered deposits, which are more expensive than core deposits. This move is expected to have a positive impact on the bank’s financial health and stability.
A Brighter Future Ahead
By shedding a significant portion of its multifamily commercial real estate loans, HomeStreet Bank is poised to refocus its efforts on core operations and drive growth. With this agreement, the bank takes a major step towards achieving its goal of returning to profitability and building a stronger future for its stakeholders.
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