Deal#2 for 2024

Combination will create a premier bank operating in the nation’s best markets in the Southwest and West Coast

  • Combined assets of approximately $17 billion
  • Dallas, Texas headquartered bank with an extensive footprint in 6 of the top 10 fastest growing MSAs in the United States
  • Top-tier performance metrics on a pro forma combined basis: ~1.4% ROA and ~17% ROATCE
  • 30%+ accretion to FSUN’s 2025 estimated EPS
  • $175 million equity raise, led by Wellington Management, is fully committed
  • Pro forma balance sheet well-positioned with a high-quality combined deposit franchise and neutral interest rate risk profile
  • Highly experienced combined executive management team with proven expertise in M&A

DENVER & SEATTLE, January 16, 2024--(BUSINESS WIRE)--FirstSun Capital Bancorp ("FirstSun," or the "Company") (OTCQX: FSUN), the holding company of Dallas-based Sunflower Bank, N.A. ("Sunflower Bank") and Seattle-based HomeStreet, Inc. ("HomeStreet") (Nasdaq: HMST), the holding company of HomeStreet Bank ("HomeStreet Bank") jointly announced today that they have entered into a definitive merger agreement, which was unanimously approved by the board of directors of both companies. Under the terms of the agreement, HomeStreet and HomeStreet Bank will merge with and into FirstSun and Sunflower Bank, respectively, with HomeStreet Bank continuing to operate under its tradename in its current markets. Under the terms of the agreement, the companies will combine in an all-stock transaction in which HomeStreet shareholders will receive 0.4345 of a share of FirstSun common stock for each share of HomeStreet common stock which represents a value of $14.75 per share representing a 37% premium to the closing price per share of HomeStreet Shares on January 12, 2024. The combined entity is expected to be listed on the NASDAQ upon closing.

FirstSun also announced today that it has entered into investment agreements with investors to raise capital to support the merger, led by Wellington Management ("Wellington", and combined the "Investors"). In aggregate, $175 million of common stock will be issued to those Investors: (a) $80 million of which will be issued to Wellington immediately following today’s merger announcement, and (b) the remaining $95 million of which will be issued concurrently with, and subject to, closing of the merger ("acquisition equity"). The proceeds of this capital are expected to support the pro forma company’s balance sheet, resulting in CET1 of 9%+ pro forma at the consolidated BHC level and 10%+ at the bank level.

I like the combination and Wellingtons Involvement. Nothign final until the docs are filed buy we may hold this one post merger

Posted to Banking on Profit on Jan 16, 2024 — 9:01 AM
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