Apr 04, 2019 (Market Exclusive via COMTEX) — HOMESTREET, INC. HMST, +2.80% Files An 8-K Entry into a Material Definitive Agreement
Sale of Home Loan Center-Based Mortgage Business
On April 4, 2019, HomeStreet Bank (the “Bank”), a wholly owned subsidiary of HomeStreet, Inc. (the “Company”) entered into a Purchase and Assumption Agreement (the “Purchase Agreement”) with Homebridge Financial Services, Inc. (“Homebridge”) to which Homebridge will purchase substantially all of the assets related to up to 50 stand-alone, satellite and fulfillment offices related to the Bank’s home loan center-based single family mortgage operations and will offer to hire a significant portion of the related personnel currently employed in that portion of the Bank’s business (the “Asset Sale”). Homebridge has agreed to a purchase price of the net book value of the acquired assets, which is approximately $4.9 million, plus a premium of $1.0 million, which may be reduced by up to $2.0 million for reimbursement by HomeStreet of certain transaction expenses incurred by Homebridge, as well as the assumption of certain home loan center and fulfillment office lease obligations. In the event Homebridge realizes a certain level of loan originations for the twelve months following the closing of the Asset Sale, HomeStreet will be entitled to an additional payment of $1.0 million at that time.
The Purchase Agreement contains customary representations and warranties and covenants for transactions of this type. In addition, the Bank has agreed to use commercially reasonable efforts to assist Homebridge in its efforts to cause certain loan officers to become state licensed prior to the applicable closing date, including assisting such loan officers, at the Bank’s expense, in preparing for tests required to become state licensed as necessary to perform their functions after the applicable hire date.
The Purchase Agreement also provides that the representations and