Fortune Bank (“Fortune”) today announced that it has entered into a definitive agreement with HomeStreet, Inc. (HMST) (“HMST”) and its principal subsidiary HomeStreet Bank (“HomeStreet”) whereby Fortune will effectively merge into HomeStreet for cash consideration of $10.25 per common share. Including the planned cash redemption of in-the-money outstanding Fortune stock options and warrants, the aggregate transaction value is approximately $27.0 million.
“This merger with HomeStreet gives our organization the chance to grow with our clients,” said Dave Straus, President and CEO of Fortune Bank. “We will have more products and a greater capacity to lend, and we will also be able to continue the same great customer service and active community involvement.” In connection with the merger, Dave Straus will become Executive Vice President and Commercial Banking Director of HomeStreet Bank.
“We are excited to have the Fortune Bank team join ours. We admire their approach to community banking and we share their commitment to community service and a desire to provide great service and real value to their customers,” said Mark K. Mason, President and CEO of HomeStreet Bank. “We are committed to ensuring that Fortune Bank customers continue to get the high standard of care they have come to expect from their bank.”
The merger has been approved by the Board of Directors of both Fortune and HomeStreet. The merger is subject to approval by Fortune shareholders, bank regulatory agencies, and other customary conditions of closing. It is expected to be completed during the fourth quarter of 2013.
Fortune was advised by Keefe, Bruyette & Woods, Inc., a Stifel Company, as financial advisor and Graham & Dunn PC as legal counsel. HomeStreet was advised by FBR Capital Markets & Co. and McAdams Wright Ragen as financial advisor and Davis Wright Tremaine LLP as legal counsel.
About Fortune Bank:
Fortune is a full service community bank headquartered in Seattle, Washington focused on providing a complete range of advanced mobile banking and financial services to smaller businesses, professionals and executives. Fortune was founded in 2006 and is recognized as one of the leading SBA lenders in the northwest. Fortune has two branches and approximately $141.5 million in assets, $103.6 million in loans, $120.8 million in deposits, and $19.3 million in shareholder’s equity as of June 30, 2013.
About HomeStreet, Inc.:
HomeStreet, Inc. (HMST) is a diversified financial services company headquartered in Seattle, Washington, and the holding company for HomeStreet Bank, a state-chartered, FDIC-insured savings bank. HomeStreet Bank offers consumer and business banking, investment and insurance products and services in the Pacific Northwest, California and Hawaii. HomeStreet, Inc. has 54 retail deposit branches and lending centers, 37 of which are in Washington, and approximately $2.5 billion in assets, $1.8 billion in loans, $1.9 billion in deposits, and $270.4 million in shareholder’s equity as of March 31, 2013.
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