OneWest Bank FSB has announced the purchase of a $1.4 billion multifamily and commercial real estate loan portfolio from Citibank NA. The portfolio, which includes approximately 600 loans, is a strategic addition to OneWest Bank’s growing commercial real estate lending business. “We are pleased to be able to work with Citibank to complete this transaction. This portfolio purchase represents our ongoing commitment to commercial real estate lending," said OneWest Bank’s President and Chief Executive Officer Joseph Otting. "We are excited to add quality earning assets to our balance sheet and look forward to providing all of the banking services that OneWest has to offer to our new customers."
The transaction closes immediately, and will be reflected on OneWest Bank’s fourth quarter financial statements. Terms of the transaction were not disclosed. This transaction will reduce GAAP assets by $1.4 billion in Citi Holdings, Citigroup’s portfolio of non-core operating businesses and assets, demonstrating Citi’s continued progress in reducing assets in Citi Holdings as quickly as economically rational while working to generate long-term profitability and growth from Citicorp, which comprises Citi’s core franchise. Citi expects that, upon completion of this and other previously-announced transactions, total assets in Citi Holdings will represent less than twenty percent of Citi’s balance sheet as of year-end.