Denver-based FirstSun Capital Bancorp has called off its planned acquisition of Seattle-based HomeStreet, Inc., after regulators rejected the proposed merger late last month.
Announced Nov. 18, the termination of the deal came after FirstSun and its Dallas-based subsidiary Sunflower Bank failed to secure approval for the merger from the Federal Reserve and Texas Department of Banking. FirstSun and Sunflower were asked to withdraw their merger acquisitions.
After regulators rejected the proposal, FirstSun and HomeStreet reportedly discussed “an alternative regulatory structure” for the merger and were open to terminating the deal if no alternative structure was possible.
FirstSun Capital was expected to grow through the merger to approximately $17 billion with 129 branches and a footprint in six of the nation’s 10 fastest growing metropolitan areas.
Initially announced in January, FirstSun and HomeStreet amended the deal three months later to increase FirstSun’s aggregate capital raise to $235 million from $175 million. The company’s combined banking operations were expected to be under a Texas state charter, with Sunflower Bank converting to a Texas state-chartered bank from a national bank. Sunflower Bank was also expected to seek Federal Reserve System membership.
