(Bloomberg) -- Bank of America Corp. agreed to buy a portfolio of commercial real estate loans from WaFd Inc. for about $2.9 billion, helping the regional lender reduce its exposure to a sector that has raised red flags for regulators and investors.

The roughly 2,000 multifamily loans have an unpaid principal balance of $3.2 billion, WaFd said in a regulatory filing Friday. After the transaction is completed, slated for June 21, Bank of America is planning a structured transaction or loan sale with one or more Pacific Investment Management Co. funds, WaFd said.

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency indicated last year that they would focus more scrutiny on banks whose portfolios of commercial real estate loans are more than triple their capital. Examiners also planned to put special emphasis on portfolios that had grown at least 50% in the past three years. WaFd had crossed both thresholds as of Sept. 30. 

Shares of many regional banks declined in recent months as investors grew wary of commercial-property exposures, partly because of the prospect that regulators might press some lenders to bolster reserves or curb dividends. WaFd slumped 9.6% this year through Thursday.  

Read More: Dozens of Banks Rapidly Piled Up Commercial Property Loans 

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