HomeStreet in Seattle has agreed to buy most of the assets and deposits of Bank of Oswego, including the Lake Oswego, Ore., bank's branches.
The $5.4 billion-asset HomeStreet said in a press release Wednesday that it will also buy $42.9 million in loans and certain liabilities, including deposits, associated with two branches located in Lake Oswego. The deal is expected to close in the third quarter; HomeStreet did not disclose the price.
The branches had $52.4 million in deposits at March 31.
"We're excited to be expanding our branch network to serve new and existing customers in the Portland market," Mark Mason, HomeStreet's chairman, president and chief executive, said in the release. "The customer base of these branches … is an extremely good fit within our commercial and consumer banking strategy."
HomeStreet said the deal was structured as a purchase of assets and assumption of deposit liabilities, adding that it did not assume any liability associated to "any ongoing litigation involving any former officer or director" at Bank of Oswego.
Two former Bank of Oswego executives – Dan Heine, who had been chief executive, and Diana Yates, who served as chief financial officer – were charged last year with conspiracy to commit bank fraud and 26 counts of making false bank entries, according to a report in The Oregonian.