Looking to shore up its capital base, HomeStreet Inc. in Seattle is pursuing a public offering in which it hopes to raise up to $210 million.
The $2.4 billion-asset parent of HomeStreet Bank announced Friday that it has filed a registration with the Securities and Exchange Commission seeking approval to begin selling its stock in July. It has not yet set a price for the shares.
HomeStreet was hit hard by the real estate bust in the Pacific Northwest. In 2009, it lost nearly $109 million, mostly on construction loans, and it received an enforcement order from its regulator requiring it to improve credit quality and boost its capital levels.
The company has since raised capital levels slightly, though it is still only considered to be "adequately capitalized." At Dec. 31, 2010 its total risk-based capital level was 9.15%. Credit quality has improved as well. At Dec. 31, 8.67% of its loans were past due, according to Federal Deposit Insurance Corp. data, down from more than 18% a year earlier.
In a news release, the company said it would use the proceeds from the IPO to strengthen its capital base, improve the regulatory of its HomeStreet Bank, and for general working capital purposes.
