HomeStreet, Inc. Files 8-K for Material Agreement

TL;DR

HMST signed a material definitive agreement on 12/26/24, check the 8-K for details.

AI Summary

HomeStreet, Inc. filed an 8-K on December 27, 2024, reporting the entry into a material definitive agreement as of December 26, 2024. The filing also includes financial statements and exhibits. The company is headquartered in Seattle, Washington.

Why It Matters

This filing indicates a significant new contract or deal for HomeStreet, Inc., which could impact its financial performance and strategic direction.

Risk Assessment

Risk Level: medium — Material definitive agreements can introduce new risks or opportunities that may affect the company's financial health and stock price.

Key Players & Entities

• HomeStreet, Inc. (company) — Registrant
• December 26, 2024 (date) — Date of Earliest Event Reported
• December 27, 2024 (date) — Date of Report
• 601 Union Street, Suite 2000, Seattle, WA 98101 (location) — Principal Executive Offices

FAQ

Key Financial Figures

• $990 million — paid principal balance of approximately $990 million. The aggregate purchase price of the Lo
• $906 million — a total purchase price of approximately $906 million (the "Purchase Price"). HomeStreet may
• $652 million — or two separate closings: approximately $652 million is expected to close on or about Decemb
• $338 million — out December 27, 2024 and approximately $338 million is expected to close on or about Decemb
• $2 million — as liquidated damages payment equal to $2 million and terminate the Purchase Agreement. I

Filing Documents

• hmst-20241226.htm (8-K) — 40KB
• homestreetbofaloansaleagre.htm (EX-10.1) — 314KB
• pressrelease-loansale.htm (EX-10.2) — 15KB
• image_0a.jpg (GRAPHIC) — 24KB
• 0001518715-24-000198.txt ( ) — 585KB
• hmst-20241226.xsd (EX-101.SCH) — 2KB
• hmst-20241226_lab.xml (EX-101.LAB) — 22KB
• hmst-20241226_pre.xml (EX-101.PRE) — 13KB
• hmst-20241226_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On December 26, 2024, HomeStreet, Inc., a Washington corporation (the "Company"), through its wholly-owned subsidiary HomeStreet Bank ("HomeStreet"), entered into a Loan Purchase and Sale Agreement (the "Purchase Agreement"), with Bank of America, N.A. (the "Purchaser") pursuant to which the Purchaser agreed to purchase approximately 190 commercial multi-family real estate loans (the "Loans") from HomeStreet (the "Transaction"), with a current aggregate unpaid principal balance of approximately $990 million. The aggregate purchase price of the Loans shall be equal to 91.46% of the aggregate unpaid principal balance of the Loans as of the closing date, which currently amounts to a total purchase price of approximately $906 million (the "Purchase Price"). HomeStreet may be obligated to repurchase the Loans sold to Purchaser if there is, subject to certain customary survival periods, a breach of a representation and warranty related to the purchased Loans. The Loans are being sold on a servicing retained basis and after the closing date, HomeStreet will maintain all servicing responsibilities for the Loans. The Purchaser is not an affiliate of the Company or HomeStreet. The Purchase Agreement provides for two separate closings: approximately $652 million is expected to close on or about December 27, 2024 and approximately $338 million is expected to close on or about December 30, 2024. In the event of Purchaser's failure to consummate the Transaction under the terms and conditions set forth in the Purchase Agreement for any reason other than HomeStreet's material non-cooperation and/or material non-performance, as HomeStreet's sole and exclusive remedy, HomeStreet may either obtain specific performance with respect to the purchase and sale of the Loans or receive as liquidated damages payment equal to $2 million and terminate the Purchase Agreement. In the event of HomeStreet's failure to consummate the Transacti

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits. Exhibit 10.1 Loan Purchase and Sale Agreement Exhibit 10.2 Press Release Announcing Loan Purchase and Sale Agreement Exhibit 104 Cover Page Interactive Data File (embedded within with Inline XBRL)

Forward-Looking Statements

Forward-Looking Statements This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Generally, forward-looking statements include the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "potential," "goal," "upcoming," "outlook," "guidance" or "project" or the negation thereof, or similar expressions, including statements relating to the pending Transaction. In addition, all statements in this report that address and/or include beliefs, assumptions, estimates, projections and expectations of our future performance and financial condition are forward-looking statements within the meaning of the Reform Act. Forward-looking statements involve inherent risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond management's control. Forward-looking statements are based on the Company's expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this report as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. For all forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. We caution readers that actual results may differ materially from those expressed in or implied by the Company's forward-looking statements. Rather, more important factors could affect the Company's future results, including but not limited to the following: (1) our ability to close and consummate the reported loan sale transaction of approximately $990 million; (2) our ability to service the sold loans; (3) our ability to pay off more expensive debt that we hold; (4) changes in the U.S. and global e

View Full Filing

View this 8-K filing on SEC EDGAR