FirstSun Capital Bancorp in Denver and HomeStreet in Seattle have terminated their planned merger after failing to secure regulatory approval.
The $8.1 billion-asset FirstSun agreed in January to buy the $9.4 billion-asset HomeStreet for $286 million. As part of the transaction, FirstSun planned to raise capital and HomeStreet planned to sell commercial real estate loans.
FirstSun announced in May that it would switch from a national charter to a Texas state charter after failing to get approval from the Office of the Comptroller of the Currency. The plan didn’t work; the Federal Reserve recently urged FirstSun to withdraw its application.
HomeStreet has said it would shed $800 million of multifamily loans if the planned sale fell through.