HomeStreet Sells Mortgage Division to Guaranteed Rate

TL;DR

HomeStreet is ditching its mortgage biz to focus on commercial banking. Sell-off to Guaranteed Rate expected Q4.

AI Summary

HomeStreet, Inc. announced on June 18, 2024, that it has entered into a definitive agreement to sell its HomeStreet Bank mortgage division to Guaranteed Rate Companies for an undisclosed amount. This transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. The sale is part of HomeStreet's strategy to focus on its core commercial banking business.

Why It Matters

This divestiture signals a strategic shift for HomeStreet, Inc., moving away from mortgage lending to concentrate on its commercial banking operations, which could impact its future revenue streams and market position.

Risk Assessment

Risk Level: medium — The sale of a significant division introduces execution risk and potential impacts on future profitability and market perception.

Key Players & Entities

• HomeStreet, Inc. (company) — Registrant
• Guaranteed Rate Companies (company) — Acquirer of mortgage division
• HomeStreet Bank (company) — Divested mortgage division
• June 18, 2024 (date) — Date of the agreement
• Fourth quarter of 2024 (date) — Expected closing period

FAQ

Filing Documents

• hmst-20240618.htm (8-K) — 35KB
• a991pressreleaseofhomestre.htm (EX-99.1) — 13KB
• image2.jpg (GRAPHIC) — 25KB
• 0001518715-24-000143.txt ( ) — 213KB
• hmst-20240618.xsd (EX-101.SCH) — 2KB
• hmst-20240618_lab.xml (EX-101.LAB) — 22KB
• hmst-20240618_pre.xml (EX-101.PRE) — 13KB
• hmst-20240618_htm.xml (XML) — 3KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure The information in this Item 7.01, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, except in the event that the Company expressly states that such information is to be considered filed under the Exchange Act or incorporates it by specific reference in such filing. On June 18, 2024, HomeStreet, Inc. (the "Company") issued a press release announcing the preliminary vote count indicates that its shareholders approved the Agreement and Plan of Merger dated as of January 16, 2024, by and between FirstSun Capital Bancorp, the Company and Dynamis Subsidiary, Inc., as amended on April 30, 2024 at the Company's shareholder meeting held on June 18, 2024. Final voting results of the shareholder meeting held on June 18, 2024 will be filed with the Company's Current Report on Form 8-K on Thursday June 20, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, regarding the proposed transaction between the Company and FirstSun Capital Bancorp ("FirstSun"). In general, forward-looking statements can be identified through use of words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology, and include statements related to

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits. Exhibit 99.1 Press Release of HomeStreet, Inc., dated June 18, 2024 Exhibit 104 Cover Page Interactive Data File (embedded within with Inline XBRL) Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 18, 2024 HomeStreet, Inc. By: /s/ Godfrey B. Evans Godfrey B. Evans Executive Vice President, General Counsel and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR