The merged entity plans to operate under a Texas state charter, transitioning FirstSun’s subsidiary, Sunflower Bank, from a national bank to a state-chartered bank, which will also seek membership in the Federal Reserve System.
As part of the merger, FirstSun will issue $48.5 million in subordinated debt, with proceeds enhancing Sunflower Bank’s capital. Concurrently, HomeStreet will start disposing of or selling about $300 million in specific commercial real estate loans.
The necessary regulatory nods now come from the Federal Reserve Board and the Texas Department of Banking after the initial application with the Office of the Comptroller of the Currency (OCC) was withdrawn.
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“We greatly appreciate the long history we have had with the OCC, including the supervisory staff in our local markets who have been great partners over the years, and we look forward to working with the Texas Department of Banking and the Federal Reserve Bank of Dallas as we continue to grow our presence in the State of Texas,” Neal Arnold, CEO of FirstSun and Sunflower Bank, said in a media release.
Source: mpamag.com