LOS ANGELES—HomeStreet, Inc. and Simplicity Bancorp are planning to merge. The companies announced the plan Monday in a press release, and were to hold a joint investor call this afternoon. Under the terms of the 100% stock agreement, Simplicity stockholders are expected to receive one share of HomeStreet common stock for each share owned of Simplicity common stock, subject to adjustment if HomeStreet's closing stock price during a specified measurement period prior to closing is more than $20 or less than $15 per share.

Under the agreement, Simplicity, a Maryland corporation and savings and loan holding company, will merge with HomeStreet, and Simplicity Bank, a federally chartered savings bank institution, will merge with HomeStreet's subsidiary, HomeStreet Bank.

Simplicity Bank is headquartered in Covina, CA, and operates seven retail bank branches in Los Angeles and San Bernardino counties. Simplicity has approximately $870 million in assets, total net loans of more than $700 million and total deposits exceeding $650 million as of June 30. Upon completion of the mergers, Simplicity Bank branches will become HomeStreet Bank branches.