By Stephen Nakrosis
FirstSun Capital Bancorp said that it hasn't been granted regulatory approvals needed for its merger with HomeStreet, following discussions with the Federal Reserve and the Texas Department of Banking.
In January, FirstSun and its subsidiary, Sunflower Bank, announced plans to merge with HomeStreet in an all-stock deal.
On Tuesday, FirstSun said that the two companies have been asked to withdraw their merger applications.
FirstSun also said it is talks with HomeStreet to consider pursuing an alternative regulatory structure for the merger. The two companies are also discussing terms to terminate the merger deal if no alternative structure is feasible, FirstSun said.
Following the news, shares of HomeStreet fell in after-hours trading. The stock was down 28%, at $10. FirstSun shares were flat after hours, at $39.95.
Neal Arnold, chief executive officer and president of FirstSun, said while disappointed with the process to date, the company will continue to work with HomeStreet and regulators on possible solutions that also make sense for shareholders.
Mark Mason, chairman, president and CEO of HomeStreet, also expressed disappointment with the regulators' decision, and added HomeStreet was told by regulators there were no regulatory concerns specifically related to the company that would have prevented approval of the merger.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
October 29, 2024 18:46 ET (22:46 GMT)
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