Loans Held for Investment Balance Trend | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------|----------------------|-------|----------------------|-------|----------------------|--------|----------------------|-------|----------------------|-------| | $ Millions \nNon-owner Occupied CRE | Mar. 31, 2023 \n$652 | \n9% | Dec. 31, 2022 \n$658 | \n9% | Sep. 30, 2022 \n$666 | \n9% | June 30, 2022 \n$711 | \n11% | Mar. 31, 2022 \n$699 | 12% | | Multifamily | ...

HomeStreet, Inc. (NASDAQ:HMST) Q1 2023 Earnings Conference Call April 25, 2023 1:00 PM ET Company Participants Mark Mason - Chief Executive Officer, President, and Chairman John Michel - Chief Financial Officer Conference Call Participants Matthew Clark - Piper Sandler Woody Lay - KBW Operator Good afternoon and thank you for attending today’s First Quarter 2023 Earnings Release Call for HomeStreet Bank. Joining us on this call is Mark Mason, CEO, President, and Chairman of the Board. I would now like to pa ...

Financial Performance - Net income for 2022 was $66,540,000, a decrease of 42.4% from $115,422,000 in 2021[177]. - Total revenues decreased to $280,607,000 in 2022, down 19.2% from $347,032,000 in 2021[177]. - The net interest income for 2022 was $233.3 million, an increase from $227.1 million in 2021, while noninterest income dropped significantly to $51.6 million from $120.0 million[123]. - The effective tax rate for 2022 was 21.4%, slightly higher than 21.3% in 2021, due to benefits from tax-advantaged investments[129]. - The company reported a net interest income sensitivity gap of $(2,795,402,000), indicating a liability-sensitive position[184]. - Basic net income per share decreased to $3.51 in 2022 from $5.53 in 2021, a decline of 36.5%[211]. - The Company’s net interest income after provision for credit losses was $238,509 thousand in 2022, a decrease of 1.3% from $242,057 thousand in 2021[211]. Assets and Liabilities - As of December 31, 2022, HomeStreet had total assets of $9.4 billion, loans of $7.4 billion, and deposits of $7.5 billion[15]. - The company's total assets increased to $9,364,760,000 in 2022, up 30.0% from $7,204,091,000 in 2021[177]. - Total liabilities increased to $8,802,613 thousand in 2022 from $6,488,752 thousand in 2021, a rise of approximately 35.7%[208]. - The allowance for credit losses (ACL) for loans held for investment was $41,500 thousand in 2022, down from $47,123 thousand in 2021[208]. - The total amount of loans was $7,426,320 thousand as of December 31, 2022, with a delinquency rate of 0.29%[152]. Interest Rates and Profitability - Changes in interest rates significantly impact the company's profitability, affecting the difference between interest earned on loans and investments and interest paid on deposits and borrowings[40]. - The net interest margin decreased to 2.99% in 2022 from 3.38% in 2021, reflecting the impact of rising short-term interest rates[123]. - A 200 basis point increase in interest rates is projected to decrease net interest income by 1.7% and net portfolio value by 24.1%[188]. - The estimated impact on net interest income over a one-year period shows a potential decrease of 0.7% with a 100 basis point increase in interest rates[188]. - The company’s interest rate simulation model assumes no negative interest rates, which may limit the reliability of results in extreme scenarios[190]. Operational Efficiency - Efficiency ratio increased to 72.4% in 2022 compared to 61.9% in 2021, indicating a decline in operational efficiency[177]. - Total noninterest expense decreased to $205.4 million in 2022 from $215.3 million in 2021, mainly due to lower compensation and benefit costs[140]. Employee and Community Engagement - The employee headcount was 937, with a turnover rate of 28% and a voluntary turnover rate of 21%[17]. - The company emphasizes diversity, equity, and inclusion, aiming to create a workplace that reflects the communities it serves[20]. - The company is committed to community involvement, offering paid time off for employees who volunteer and matching their contributions to community organizations[26]. - In 2022, HomeStreet provided 6,890 paid hours off for employees to isolate, treat, and recover from COVID-19 exposure[24]. Regulatory and Compliance Risks - The company faces extensive regulations that increase compliance costs and potential liabilities, particularly in states like California with stringent laws[72]. - The company is subject to ongoing regulatory examinations, which could lead to operational restrictions and increased compliance risks[73]. - The company is subject to federal and state privacy regulations, including the California Consumer Privacy Act of 2018 and the California Privacy Rights Act of 2020, which impose strict obligations on the use and dissemination of customer information[83]. Market and Economic Conditions - The financial services industry is highly competitive, with pressures on pricing for loans and deposits, which could adversely affect future earnings and growth[45]. - Inflation may negatively impact the company's profitability by increasing fixed costs and reducing consumer purchasing power, potentially leading to higher default rates[44]. - The company operates primarily in the Western United States, with a majority of revenues derived from the Puget Sound region and other metropolitan areas, exposing it to regional economic volatility and natural disasters[66]. Cybersecurity and Operational Risks - The company has experienced various cyber incidents but has not been materially impacted; however, the risk of future incidents remains high[79]. - The company faces risks related to cybersecurity threats, which may increase operational costs and impact customer information security[84]. - The company acknowledges that climate change poses operational, credit, and reputational risks that could adversely affect its business and customers[96]. Capital Management - The company's capital management strategy aims to return excess capital to shareholders, but negative changes in business conditions could lead to suspended dividend payments[61]. - The company maintains capital ratios above regulatory minimums but may face decreases due to economic changes or capital returns to shareholders[63]. - The Company paid a quarterly cash dividend of $0.35 per common share in each quarter of 2022, with intentions to continue this in 2023[169].

HomeStreet Forward-Looking Statements This presentation includes forward-looking statements, as that term is defined for purposes of applicable securities laws, about our industry, our future financial performance, business plans and expectations. These statements are, in essence, attempts to anticipate or forecast future events, and thus subject to many risks and uncertainties. These forward-looking statements are based on our management's current expectations, beliefs, projections, and related to future p ...

HomeStreet, Inc. (NASDAQ:HMST) Q4 2022 Earnings Conference Call January 30, 2023 1:00 PM ET Company Participants Mark Mason - Chief Executive Officer, President, and Chairman John Michel - Chief Financial Officer Conference Call Participants Matthew Clark - Piper Sandler Woody Lay - KBW Operator Good afternoon. Thank you for attending today’s Fourth Quarter 2022 Earnings Release Call for HomeStreet Bank. Joining us on this call is Mark Mason, CEO, President, and Chairman of the Board. I would now like to pa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ Commission file number: 001-35424 ________________________________ HOMESTREET, INC. ...

HomeStreet, Inc. (NASDAQ:HMST) Q3 2022 Results Conference Call October 25, 2022 1:00 PM ET Company Participants Mark Mason - CEO, President and Chairman John Michel - CFO Conference Call Participants Jeff Rulis - D.A. Davidson Matthew Clark - Piper Sandler Tim Coffey - Janney Operator Good afternoon. Thank you for attending today’s third quarter earnings release call for HomeStreet Bank. Joining us on this call is Mark Mason, CEO, President and Chairman of the Board. I would now like to pass the conference ...

[HomeStreet] meStreet reet ESTY 2nd Quarter 2022 July 25, 2022 Important Disclosures Forward-Looking Statements This presentation includes forward-looking statements, as that term is defined for purposes of applicable securities laws, about our industry, our future financial performance, business plans and expectations. These statements are, in essence, attempts to anticipate or forecast future events, and thus subject to many risks and uncertainties. These forward-looking statements are based on our manage ...

Financial Data and Key Metrics Changes - In Q2 2022, the company's net income was $17.7 million or $0.94 per share, down from $20 million or $1.01 per share in Q1 2022 [4] - The annualized return on average tangible equity was 12.6%, and the annualized return on average assets was 89 basis points [4] - The efficiency ratio improved to 68.5% [4] - The net interest margin remained constant at 3.27%, with a 14 basis point increase in the yield on interest-earning assets offset by a 17 basis point increase in the cost of interest-bearing liabilities [5] Business Line Data and Key Metrics Changes - The loan portfolio grew by $895 million or 15% unannualized, driven by record loan originations across all loan types [12] - Noninterest income decreased by $2.5 million due to a $2.2 million drop in single-family gain on loan origination and sales activities [8] - Noninterest expense decreased by $3.8 million, primarily due to lower compensation costs and deferred cost benefits from higher loan originations [9] Market Data and Key Metrics Changes - The company originated approximately $400 million of loans to new customers who typically would have opted for agency loans [12] - The ratio of nonperforming assets to total assets improved to 13 basis points [7] - Single-family mortgage banking revenues declined to only 6% of total revenues due to a significant drop in mortgage loan volume [23] Company Strategy and Development Direction - The company plans to improve its efficiency ratio to the low 60% levels for the second half of the year and mid-50% range in 2023 [15] - The focus will be on commercial real estate loan originations, particularly multifamily loans, as the principal driver of near-term growth [16] - The company is targeting a return on average assets in excess of 1.1% for the second half of the year and over 1.25% in 2023 [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's credit profile, stating it is significantly different from the pre-Great Recession period [22] - The company anticipates continued growth in net interest income and expects meaningful earnings per share growth for the remainder of the year [25] - Management acknowledged the challenges posed by rising interest rates and the potential impact on single-family mortgage volumes [28] Other Important Information - The company is selling its Eastern Washington branches, expecting to realize a gain in excess of $4 million [30] - The company has made significant efficiency improvements and plans to return excess capital to shareholders through dividends and share repurchases [32] Q&A Session Summary Question: What is the outlook for net interest margin (NIM)? - Management indicated that they do not separately disclose individual monthly margins but mentioned that they have not changed base deposit rates [34] Question: What is the rate on the promotional offering? - The current rate is 100 basis points for 7 months and 150 basis points for 13 months, with expectations for increases [35] Question: What is the outlook for loan origination yields? - The weighted average rate for the quarter was approximately 3.80%, with recent rates exceeding 4% [63] Question: What is the expected loan growth for the second half of the year? - The company expects an annualized growth rate of around 10% for the remainder of the year [68] Question: What are the details on the branch sales? - The sale involves both loans and deposits, with an expected loss of about $200 million in deposit funding [72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ Commission file number: 001-35424 ________________________________ HOMESTREET, INC. (a ...