HomeStreet, Inc. (HMST) announced on Friday that its subsidiary, HomeStreet Bank, has entered an agreement to sell $990 million in multifamily commercial real estate loans to Bank of America Corp. (BAC). This transaction will occur on a servicing retained basis.
The portfolio of loans will be sold for 92% of their principal balance, which factors in the value of the retained servicing.
HomeStreet plans to use the proceeds from this sale to reduce FHLB advances and brokered deposits.
The sale is expected to be finalized by December 31.
In pre-market trading, HomeStreet's shares are priced at $10.95 on the Nasdaq, reflecting a decrease of 0.27%.
