FirstSun Capital Bancorp and HomeStreet, Inc. announced that they have not obtained the necessary regulatory approvals for their proposed mergers from the Federal Reserve and the Texas Department of Banking. Consequently, FirstSun and its subsidiary, Sunflower Bank, N.A., have been asked to withdraw their merger applications. This development casts uncertainty over the future of the strategic combination.
The companies are currently engaged in discussions regarding the pursuit of an alternative regulatory structure for the merger. They are also considering the terms under which they would terminate the merger agreement if a feasible alternative structure cannot be identified. FirstSun's CEO, Neal Arnold, expressed disappointment with the process, noting that the external environment for bank merger approvals has become more challenging.
HomeStreet, Inc. confirmed that its regulators advised there were no specific regulatory concerns related to HomeStreet that would have prevented approval of the merger. As of September 30, 2024, FirstSun had total consolidated assets of $8.1 billion. The outcome of these ongoing discussions will be critical for both companies' strategic plans.
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