HomeStreet: Two Steps Forward, One Step Back
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HomeStreet faced challenges in 2024 due to a failed merger with FirstSun, leading to high Loan to Deposit ratios. A strategic sale of $990 million in loans to Bank of America improved this ratio and reduced borrowings. Declining deposit costs are enhancing net interest margins, indicating potential profitability.
January 28, 2025 | 5:45 pm
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POSITIVE IMPACT
Bank of America acquired $990 million in multifamily CRE loans from HomeStreet, which may enhance its loan portfolio and revenue streams.
The acquisition of $990 million in loans from HomeStreet could strengthen Bank of America's loan portfolio and contribute positively to its revenue streams, although the impact is less direct compared to HomeStreet.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
HomeStreet's failed merger with FirstSun led to high Loan to Deposit ratios. However, a $990 million loan sale to Bank of America improved this ratio and reduced borrowings. Declining deposit costs are enhancing net interest margins, indicating potential profitability.
The failed merger with FirstSun initially posed challenges for HomeStreet, but the strategic sale of loans to Bank of America has improved its financial metrics. The reduction in borrowings and improved Loan to Deposit ratio, along with declining deposit costs, are positive indicators for future profitability.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100