(Reuters) – HomeStreet (NASDAQ:HMST) Bank said on Friday it has agreed to sell nearly $990 million of its multifamily commercial real estate loans to Bank of America.
BofA has agreed to pay about $906 million for the loans, which accounts for nearly 92% of the value of the portfolio, HomeStreet said.
“Entering into this agreement … is the first step in implementing a new strategic plan, which we expect to result in a return to profitability for the bank and on a consolidated basis early next year,” HomeStreet CEO Mark Mason said.
Proceeds from the sale would be used to repay the debt it has taken from the Federal Home Loan Bank and for paying down brokered deposits, which are costlier than core deposits, HomeStreet said.
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