HomeStreet Inc. has entered into a definitive merger agreement to take over Simplicity Bancorp Inc., a Maryland corporation and savings and loan holding company with branch locations in the Los Angeles area.
Simplicity Bank, a federally chartered savings bank institution, will merge with HomeStreet’s subsidiary, HomeStreet Bank. The combined company will have approximately $4.1 billion in assets, total deposits of approximately $3.1 billion, and total loans of approximately $3.1 billion.
At the time of the anticipated closing, the combined company is expected to have a network of more than 100 retail deposit branches and stand-alone lending centers in six states.
Under the terms of the 100% stock agreement, Simplicity stockholders are expected to receive one share of HomeStreet common stock for each share owned of Simplicity common stock, subject to adjustment.
Simplicity Bank is headquartered in Covina, Calif. and operates seven retail bank branches in Los Angeles and San Bernardino counties. It has approximately $870 million in assets, total net loans of more than $700 million and total deposits exceeding $650 million as of June 30, 2014. Upon completion of the mergers, Simplicity Bank branches will become HomeStreet Bank branches.