HomeStreet (HMST) said Friday that its HomeStreet Bank subsidiary has agreed to sell $990 million worth of multifamily commercial real estate loans to Bank of America (BAC) at a price, including the value of retained servicing, of 92% of the principal balance.
The sale is expected to close before Dec. 31, the financial services company said.
Proceeds from the sale will be used to pay down advances and brokered deposits "which carry substantially higher interest rates than our core deposits," HomeStreet Chief Executive Mark Mason said.
Mason also said the sale represents a "first step in implementing a new strategic plan which we expect to result in a return to profitability" early next year.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.