HomeStreet Bank has entered into an agreement to sell $990 million in multifamily commercial real estate loans to Bank of America, with the transaction expected to close before December 31, 2024. The sale, completed on a servicing-retained basis at 92% of the loans’ principal balance, is a key step in the bank’s new strategic plan to return to profitability.

Mark Mason, Chairman and CEO of HomeStreet Bank, stated that the proceeds from the transaction will be used to pay down higher-cost debts, such as Federal Home Loan Bank advances and brokered deposits. The loans being sold are described as lower-yielding and longer-term compared to the bank’s overall portfolio, aligning with efforts to adapt to current economic and interest rate challenges. This sale is part of a broader initiative to strengthen the bank’s financial position heading into the new year.