(Reuters) -Mechanics Bank has agreed to buy HomeStreet in an all-stock deal that values the Seattle-based lender at $300 million, the companies said on Monday.
The agreement comes months after HomeStreet sold nearly $990 million of its multifamily commercial real estate loans to Bank of America, in an attempt to boost its finances and reduce reliance on costly funding sources.
The deal with Mechanics is expected to close in the third quarter.
HomeStreet’s proposed merger with FirstSun Capital Bancorp was halted by regulators last year.
(Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)
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