(Reuters) – HomeStreet Bank said on Friday it agreed to sell nearly $990 million of its multifamily commercial real estate loans to Bank of America.
BofA agreed to pay about $906 million for the loans, representing nearly 92% of the value of the portfolio, HomeStreet said.
“Entering this agreement… is the first step in the implementation of a new strategic plan, which we hope will result in a return to profitability for the bank and on a consolidated basis early next year,” said the CEO of HomeStreet, Mark Mason.
Proceeds from the sale would be used to pay off debt it took on from Federal Home Loan Bank and to pay for brokered deposits, which are more expensive than core deposits, HomeStreet said.
(Reporting by Niket Nishant in Bengaluru; Editing by Shilpi Majumdar)