By Sarina Isaacs
Shares of HomeStreet climbed after the financial-services firm agreed to sell $990 million in multi-family loans.
The stock was up 10% at $12.12 in Friday morning trading. The shares are up 19% on the year.
The Seattle-based operator of HomeStreet said before the market opened that it agreed to sell to Bank of America multi-family commercial real estate loans priced at 92% of the principal loan balance, including the value of the retained servicing.
Chairman and Chief Executive Mark Mason said the sale represents the first step in a new strategy expected to bring about an return to profitability for the bank and on a consolidated basis early next year.
"The proceeds from the loan sale will be used to pay down FHLB advances and brokered deposits which carry substantially higher interest rates than our core deposits," Mason said.
The sale is expected to close before Dec. 31.
Write to Sarina Isaacs at sarina.isaacs@wsj.com
(END) Dow Jones Newswires
December 27, 2024 11:12 ET (16:12 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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