HomeStreet in Seattle has agreed to buy Simplicity Bancorp in Covina, Calif.

The $3.2 billion-asset HomeStreet will pay $128 million in stock for the $870 million-asset Simplicity, the companies said in a press release Monday. The price represents about 96% of Simplicity's tangible book value.

HomeStreet will have more than 100 branches, $3.1 billion in deposits and $3.1 billion in loans when the deal closes. The companies said they expect to complete the merger in the first quarter.

"Our two companies complement each other well in products, service standards, culture and commitment to our communities," Mark Mason, HomeStreet's president and chief executive, said in the release. "We believe Simplicity Bank's strong southern California retail franchise, with nearly 60,000 deposit accounts, and HomeStreet's growing regional consumer mortgage, residential construction and commercial real estate businesses will prove to be a great match for our customers and our companies."

MJ Capital Partners and Davis Wright Tremaine advised HomeStreet. Keefe, Bruyette & Woods and Luse Gorman Pomerenk & Schick advised Simplicity.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.