(Reuters) – HomeStreet Bank (NASDAQ: ) 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 in loans, representing nearly 92% of the portfolio’s value, HomeStreet said.
“The conclusion of this agreement … is the first step in the implementation of a new strategic plan, which we expect will result in a return to profitability of the bank and on a consolidated basis early next year,” said HomeStreet CEO Mark Mason.
The proceeds from the sale will be used to pay off debt it took out from Federal Home Loan Bank and to pay off brokered deposits, which are more expensive than core deposits, HomeStreet said.
