HomeStreet Inc. , the holding company of HomeStreet Bank , announced Wednesday that regulators have lifted an order to “cease and desist” operating with unsafe and unsound banking practices that dated from 2009.
“This is a major milestone for our bank and reflects substantial improvements in the risk profile and financial condition of HomeStreet since the initiation of the order,” HomeStreet Vice Chairman and CEO Mark Mason said in a statement. “HomeStreet’s board of directors and management have worked closely with our regulators to meet the requirements of the order by building a strong credit culture, improving our asset quality, improving core earnings, maintaining strong liquidity and strengthening our capital position.”
HomeStreet Bank suffered during the economic downturn because of bad commercial, development and real estate loans. The Seattle-based bank’s situation started turning around last year when it sold the 4,218-acre Cascadia development in Pierce County, getting its largest foreclosed property off its books.
Last month, the bank made an initial public offering that raised $88.7 million. It had previously amended its IPO offering seven times since first filing to go public last May.
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