HomeStreet (HMST) in Seattle may be nearing an exit from a cease-and-desist order after paying an important debt.
The $2.63 billion-asset company announced Monday that regulators had allowed it to pay all past-due interest to holders of its trust-preferred securities. The $13.5 million payment was made Friday.
The order, imposed by the Federal Reserve, had prevented it from making such cash payments. HomeStreet "anticipates termination of this order though it cannot give any assurances about timing," the company's press release said.
Its HomeStreet Bank unit had its memorandum of understanding with the Federal Deposit Insurance Corp. and the Washington State Department of Financial Institutions terminated in December. The memorandum replaced a 2009 cease-and-desist order that was lifted a year ago.
The bank unit had been troubled, but HomeStreet was able to raise nearly $100 million in capital through an
