HomeStreet Bank Sells $990M Multifamily Loan Portfolio to Bank of America

The sale, part of a new strategic plan, aims to restore profitability after regulatory hurdles and financial losses.

HomeStreet Bank has agreed to sell $990 million in multifamily commercial real estate loans to Bank of America for approximately $906 million, representing 91.5% of the loans' principal value.
The sale will occur in two parts, with $652 million closing immediately and the remaining $338 million expected to close by December 30, 2024.
Proceeds from the transaction will be used to pay down high-cost Federal Home Loan Bank advances and brokered deposits, reducing funding costs for HomeStreet.
The loan sale follows HomeStreet's failed $286 million merger with FirstSun Capital Bancorp due to regulatory challenges, and is part of a broader strategy to return to profitability in early 2025.
HomeStreet has faced financial difficulties, reporting a $21 million loss through the first nine months of 2024, after previously being profitable before the pandemic and rising interest rates.