HomeStreet Subsidiary Free From Agreement With Regulators

On Friday, financial services company HomeStreet (NASDAQ: HMST  ) announced that the Federal Deposit Insurance Corporation and Washington Department of Financial Institutions had informed its HomeStreet Bank subsidiary that its obligation to maintain a 9% Tier 1 capital ratio is no longer in effect.

In a Memorandum of Understanding dated March 26, 2012, FDIC had required HomeStreet Bank to maintain 9% Tier 1 capital as part of a plan to reduce its exposure to certain "adversely classified" assets. The FDIC also forbade HomeStreet Bank from paying dividends to its parent company. The memorandum has been terminated effective yesterday.

In a statement, HomeStreet characterized FDIC's move as acknowledging its "strong earnings and greatly improved credit quality." Shares of the company are up 1.4% as of this writing, at $24.69.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2171881, ~/Articles/ArticleHandler.aspx, 10/1/2014 8:46:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement