** Shares of regional lender HomeStreet HMST.O slide as much as 37.4%, last down 34.2% at $19.16

** Regulatory approvals necessary for the buyout deal have not been obtained from the Federal Reserve and the Texas Department of Banking, FirstSun Capital Bancorp FSUN.O and HomeStreet said late Tuesday, adding that they have been asked to withdraw their applications

** FSUN and HMST are mulling pursuing an alternative regulatory structure for the transaction, the companies said, adding that they are also discussing terms for terminating the deal if there is no feasible resolution

** In January, FSUN had agreed to buy HMST for $14.75/shr

** Remain hopeful that we will be able to continue productive discussions with regulators in order to obtain regulatory approval - FSUN CEO Neal Arnold

** Wedbush Securities believes HMST might seek a different suitor in the coming months, adding that it finds the announcement as an incremental negative read-through for broader bank M&A

** Piper Sandler believes HMST might have to pursue a dilutive capital raise with new and existing shareholders if the deal fails

** As of last close, HMST shares up 35.1% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))