SEATTLE & LA JOLLA, Calif.--(BUSINESS WIRE)--
HomeStreet,
Inc. (Nasdaq:HMST) (the “Company” or “HomeStreet”), the parent
company of HomeStreet Bank (“HomeStreet Bank”), together with Silvergate
Bank (“Silvergate”), a California commercial bank, announced today that
HomeStreet Bank and Silvergate have executed a definitive agreement for
HomeStreet Bank to acquire the San Marcos, Calif., retail branch of
Silvergate as well as its business lending team. The parties expect to
close the transaction in the first half of 2019, subject to customary
closing conditions including regulatory approvals.
As of October 31, 2018, total deposits to be acquired are approximately
$123 million. Additionally, HomeStreet will be acquiring certain other
assets, including loans totaling approximately $123 million and certain
off-balance sheet deposit relationships. The branch is located at 277
Rancheros Drive, Suite 300, in San Marcos, Calif, a growing area of
Northern San Diego County. The Silvergate employees who work at the San
Marcos branch as well as the business lending team will be offered
positions at HomeStreet Bank. Silvergate’s chief banking officer, Dino
D’Auria, and his team of seasoned commercial bankers and operations
staff are expected to become HomeStreet’s San Diego commercial banking
team. This acquisition would increase the number of HomeStreet’s retail
deposit branches to five in San Diego County and 17 in Southern
California.
“We have a strong, growing presence in Southern California, and we are
excited to add another bank branch in the San Diego area,” said
HomeStreet Bank Chairman, President and CEO Mark K. Mason. “This
acquisition also substantially increases our commercial lending team in
Southern California and adds a proven leader and his team to our San
Diego operations. We’re looking forward to welcoming new employees and
customers to our HomeStreet family and are working with the Silvergate
team to ensure a smooth transition for everyone involved.”
“We have enjoyed wonderful relationships with our customers whose loans
and deposits are included in this transaction, and we sincerely
appreciate their trust allowing us to be of service. In considering this
transaction, we sought a partner that mirrors our service philosophy and
are pleased to introduce our customers to HomeStreet, which will be
retaining the key employees that have built and maintained the
relationships with these customers,” said Alan Lane, Silvergate’s Chief
Executive Officer. Mr. Lane added, “This transaction enables us to
increase our focus on our core fintech deposit initiative and our
specialty lending competencies.”
The San Marcos location will continue to operate as a branch of
Silvergate Bank until the transaction is completed. Upon closing, the
branch will become part of HomeStreet Bank.
Barclays Capital acted as Silvergate’s financial advisor for this
transaction and Breakwater Law Group acted as its legal advisor.
Forward-Looking Statements Regarding HomeStreet
This press release contains forward-looking statements concerning
HomeStreet, Inc. and HomeStreet Bank, and their operations, performance
and likelihood of success. All statements other than statements of
historical fact are forward-looking statements. In particular,
statements regarding the Company’s anticipated future performance and
financial condition, as well as the expected closing of the transaction,
which remains subject to certain conditions, are forward looking in
nature and are subject to many other factors, including changes in
market conditions that may impact our ability to meet our expectations.
Forward-looking statements are based on many beliefs, assumptions,
estimates and expectations of our future performance, taking into
account information currently available to us. Such statements involve
inherent risks and uncertainties, many of which are difficult to predict
and are generally beyond HomeStreet’s control. You should consider,
among other things, the risk factors included in our periodic reports
filed with the Securities and Exchange Commission, including but not
limited to our most recent Quarterly Report on Form 10-Q for the third
quarter of this year. Forward-looking statements speak only as of the
date made, and we do not undertake to update them to reflect changes or
events that occur after that date. HomeStreet is not responsible for any
statements or disclosures regarding any party other than HomeStreet,
Inc. or HomeStreet Bank that may be contained in this press release.
About HomeStreet, Inc.
HomeStreet, Inc. (Nasdaq:HMST) is a diversified financial services
company headquartered in Seattle, Washington, serving consumers and
businesses in the Western United States and Hawaii through its various
operating subsidiaries. The company operates two primary business
segments: Mortgage Banking, which originates and purchases single family
residential mortgage loans, primarily for sale into secondary markets;
and Commercial & Consumer Banking, including commercial real estate,
commercial lending, residential construction lending, retail banking,
private banking, investment, and insurance services. Its principal
subsidiaries are HomeStreet Bank and HomeStreet Capital Corporation.
Certain information about our business can be found on our investor
relations web site, located at http://ir.homestreet.com.
About Silvergate Bank:
Silvergate Bank is a subsidiary of Silvergate Capital Corporation and a
provider of innovative financial infrastructure solutions and services
to participants in the digital currency industry. At September 30, 2018,
Silvergate had total assets of $2.2 billion and total deposits of $1.9
billion, including $1.7 billion of noninterest bearing deposits. For
more information, please visit www.silvergatebank.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181116005044/en/
HomeStreet, Inc.
Investor Relations:
Gerhard
Erdelji, 206-515-4039
gerhard.erdelji@homestreet.com
or
Media
Relations:
Michael Brandt, 206-876-5506
michael.brandt@homestreet.com
ir.homestreet.com/news
or
Silvergate
Bank
Alan Lane, 858-362-6300
Source: HomeStreet, Inc.