HomeStreet, Inc. and FirstSun Capital Bancorp announced that regulatory approvals for their proposed merger have not been obtained. Discussions with the Federal Reserve and the Texas Department of Banking led to requests for FirstSun and its subsidiary, Sunflower Bank, N.A., to withdraw their merger applications. The companies are now discussing alternative regulatory structures or potential termination of the merger agreement.
HomeStreet stated that its regulators advised there were no specific regulatory concerns related to HomeStreet that would have prevented approval of the merger. FirstSun noted that the external environment for bank merger regulatory approvals has become more challenging. Mark Mason, HomeStreet's Chairman, President, and CEO, expressed disappointment regarding the regulators' unwillingness to grant the necessary approvals.
Mr. Mason indicated that if the merger agreement is terminated, HomeStreet will immediately consider all strategic alternatives, including operating on a standalone basis for the foreseeable future. This development introduces significant uncertainty regarding the company's strategic path forward.
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