On January 16, Denver, Colorado-based FirstSun Capital Bancorp, the holding company of Dallas-based Sunflower Bank NA, and Seattle, Washington-based HomeStreet Inc., the holding company of HomeStreet Bank, announced that they have entered into a definitive merger agreement under which HomeStreet Inc. and HomeStreet Bank will merge with and into FirstSun Capital Bancorp and Sunflower Bank, respectively, with HomeStreet Bank continuing to operate under its trade name in its current markets. The combined entity is expected to be listed on the NASDAQ upon closing. The parties expect the closing of the merger to occur in the middle of 2024.
Once completed, the merger will create a premier regional bank with $17 billion in total assets and 129 branch locations in the U.S. The expanded footprint complements FirstSun’s current presence in the high-growth markets of the Southwest to include HomeStreet’s strong presence in Southern California, Hawaii and other key markets in the Pacific Northwest.
Mollie Hale Carter, executive chair of FirstSun Capital Bancorp, and Neal Arnold, CEO, president and director of FirstSun Capital Bancorp, will retain their current roles at the combined company. Mark Mason, who currently serves as executive chair, president and CEO of HomeStreet Bank, will serve as executive vice chair at the combined company following the merger. Additionally, three current HomeStreet directors, inclusive of Mason, will join the combined company board of directors at closing.
“Each entity brings a presence in large, dynamic markets that are ripe for future organic growth,” Carter says. “The combination of FirstSun and HomeStreet creates a premier midcap bank in the nation’s best markets and an opportunity to deploy FirstSun’s proven playbook of C&I focused growth.”
“This merger validates the intrinsic value of HomeStreet’s loyal customer base, strong management and dynamic markets in which we operate and allows our shareholders to participate in the benefits of the combination going forward,” Mason notes. “The combined company will have an attractive and comprehensive product suite and market footprint as well as a more diversified loan portfolio and increased lending capabilities across asset classes, geographies and industry verticals.”
Established in 1892, Sunflower Bank has banking offices in Texas, Kansas, Colorado, New Mexico and Arizona, as well as mortgage capabilities in 43 states. FirstSun Capital Bancor had total consolidated assets of $7.8 billion as September 30, 2023.
Established in 1985, HomeStreet Bank had total assets of $9.5 billion and total deposits of $6.7 billion as of September 30, 2023, with a branch network in Washington, California, Oregon and Hawaii, along with lending offices in Utah and Idaho.
