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HomeStreet(HMST) - 2021 Q4 - Earnings Call Transcript
2022-01-25 22:18
Financial Data and Key Metrics Changes - In Q4 2021, the company's net income was $29 million or $1.43 per share, compared to $27 million or $1.31 per share in Q3 2021. For the full year 2021, net income reached a record $115 million or $5.46 per share [5][6] - The annualized return on average tangible equity for Q4 2021 was 17%, while for the full year it was 16.8%. The annualized return on average assets was 1.59% for Q4 and 1.58% for the full year [6] - The efficiency ratio for Q4 2021 was 62.2%, consistent with the previous quarter [17][19] Business Line Data and Key Metrics Changes - Net interest income in Q4 2021 was slightly lower than in Q3 due to a $2.1 million decrease in interest income from PPP loans, offset by higher non-PPP loans. The net interest margin was consistent with Q3 when excluding PPP loans [7] - Non-interest income increased by $4.3 million in Q4 2021 compared to Q3, primarily due to a $2.6 million increase in net gain on loan origination and sales activities [10] - Non-interest expenses increased by $2 million in Q4 2021 compared to Q3, mainly due to higher general administrative costs [11] Market Data and Key Metrics Changes - As of December 31, 2021, outstanding PPP loans were only $38 million, with deferred fees of $1 million [8] - The ratio of non-performing assets to total assets improved to 18 basis points, and the allowance for credit losses (ACL) to total loans ratio was 88 basis points [9] Company Strategy and Development Direction - The company aims to grow its loan portfolio by 10% to 15% in the coming years, focusing on commercial real estate loan originations, particularly multifamily loans [17][19] - The company plans to improve its efficiency ratio to below 60% in the future, leveraging existing infrastructure for growth [19] - The board anticipates discussing an increase in dividends in Q1 2022, contingent on financial conditions and regulatory requirements [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to provide consistent and less volatile earnings moving forward, with expectations of continued recoveries in the allowance for credit losses [16][22] - The company expects Q1 2022 earnings to be lower than Q4 2021 due to the absence of a permanent multifamily loan sale and higher compensation expenses [23][24] - Management noted that while earnings may show volatility in 2022, the decision to increase loan retention early in the year is expected to set a strong foundation for earnings growth [25][26] Other Important Information - The company repurchased 2% of its outstanding common stock in Q4 2021 and declared a dividend of $0.25 per share [12][20] - Total shareholder return over one year, three years, and five years was 58%, 156%, and 72%, respectively, outperforming the KRX index [27][28] Q&A Session Summary Question: Guidance on margin assumptions - Management indicated that margin stability does not include assumptions about Fed rate movements, which could have a generally positive impact [31] Question: Non-interest income expectations - Management expects a decline in non-interest income in Q1 2022 compared to Q4 2021, with lower volume impacting gains on sale [32][33] Question: Expense guidance - Management clarified that guidance for slightly increasing expenses is based on a run rate of around $54 million per quarter, with some non-recurring items from Q4 not expected to carry forward [39][41] Question: Loan prepayment levels - Prepayment rates in Q4 were consistent with Q3, and management expects prepayment levels to drop in 2022 [44][46] Question: Loan sales expectations - Management does not expect to conduct a loan sale in Q1 2022 but may consider one in Q2 based on performance [50][52] Question: Reserve coverage ratio - Management anticipates continued recoveries in the first half of 2022, with normal provisioning expected in 2023 and 2024 [64]
HomeStreet(HMST) - 2021 Q3 - Quarterly Report
2021-11-05 16:47
Commission file number: 001-35424 ________________________________ 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, 2021 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ HOMESTREET, INC. ...
HomeStreet(HMST) - 2021 Q3 - Earnings Call Presentation
2021-10-28 17:34
3rd Quarter 2021 October 25, 2021 Nasdaq: HMST 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 management's current e ...
HomeStreet(HMST) - 2021 Q3 - Earnings Call Transcript
2021-10-26 18:53
HomeStreet, Inc. (NASDAQ:HMST) Q3 2021 Earnings Conference Call October 26, 2021 1:00 AM ET Company Participants Mark Mason - Executive Chairman, President & CEO John Michel - EVP & CFO Conference Call Participants Jeff Rulis - D.A. Davidson & Co. Steve Moss - B. Riley Securities Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. ...
HomeStreet(HMST) - 2021 Q2 - Quarterly Report
2021-08-06 17:47
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: June 30, 2021 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 W ...
HomeStreet(HMST) - 2021 Q2 - Earnings Call Transcript
2021-07-27 21:39
HomeStreet, Inc. (NASDAQ:HMST) Q2 2021 Earnings Conference Call July 27, 2021 1:00 PM ET Company Participants Mark Mason - Executive Chairman, President & CEO John Michel - EVP & CFO Conference Call Participants Stephen Moss - B. Riley Securities Jeff Rulis - D.A. Davidson & Co. Matthew Clark - Piper Sandler & Co. Jackie Bohlen - KBW Timothy Coffey - Janney Montgomery Scott Operator Good day, and welcome to the HomeStreet Second Quarter 2021 Earnings Conference Call. [Operator Instructions]. Please note, th ...
HomeStreet(HMST) - 2021 Q2 - Earnings Call Presentation
2021-07-27 19:44
Nasdaq: HMST 2nd Quarter 2021 July 26, 2021 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 management's current expe ...
HomeStreet(HMST) - 2021 Q1 - Quarterly Report
2021-05-07 17:07
For the quarterly period ended: March 31, 2021 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ 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 Title of each class Trading Symbol(s) Name of each exchange on which registered Common ...
HomeStreet(HMST) - 2021 Q1 - Earnings Call Transcript
2021-04-27 21:10
Financial Data and Key Metrics Changes - In Q1 2021, the company's net income was $30 million or $1.35 per share, compared to core net income of $32 million or $1.47 per share in Q4 2020 [5] - The annualized return on tangible common equity for Q1 was 17.3%, and the annualized return on average assets was 1.65% [6] - The efficiency ratio was reported at 60% for the quarter [6] - The effective tax rate for the quarter was 19.3%, benefiting from tax-advantaged investments [6] Business Line Data and Key Metrics Changes - Loan originations in Q1 totaled $769 million, including $123 million of PPP loans [8] - The net interest margin increased to 3.92%, primarily due to lower deposit rates, although net interest income was lower than in Q4 2020 due to a decrease in interest-earning assets [7] - The net gain on loan origination and sales activity decreased by $3.4 million compared to Q4 2020, primarily due to lower volumes of multifamily loans sold [11] Market Data and Key Metrics Changes - Outstanding loans in forbearance in commercial and CRE portfolios decreased to 11 loans and $22 million as of March 31, 2021 [10] - The ratio of non-performing assets to total assets remained low at 32 basis points [10] Company Strategy and Development Direction - The company plans to increase commercial real estate loan originations, both for sale and for its portfolio, due to strong fundamentals and demand in its markets [27] - The company is focusing on cost reduction and profitability improvement, with meaningful reductions in non-interest expenses [16] - The company is exploring M&A opportunities to enhance its deposit franchise and create greater density in primary markets [56][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic recovery driven by government stimulus and the normalization of economic activity [19] - The company anticipates lower origination and gain on sales activities in the single-family mortgage banking business as long-term interest rates rise [22] - Management expects to release some of the allowance for credit losses in the near future due to low levels of problem loans [17] Other Important Information - The company repurchased 3% of its outstanding common stock at an average price of $44.56 per share and declared a dividend of $0.25 per share [12] - The company expects to recognize approximately $9 million of deferred fees from PPP loans over the next three quarters [77] Q&A Session Summary Question: Loan demand and growth expectations - Management expects total loan growth this year in the high single-digit percentage range, subject to prepayment activity [37] Question: Funding costs expectations - Management anticipates continued decline in funding costs, with expectations of lower single-digit basis points over the next couple of quarters [39][42] Question: Capital management and buyback plans - Management indicated an expectation to continue the $25 million per quarter repurchase program [44] Question: Liquidity deployment from PPP loan forgiveness - Management plans to pay down borrowings first and then return excess capital to shareholders through dividends and share repurchases [53] Question: Gain on sale margins outlook - Management expects single-family profitability margins to normalize this year, with potential volatility [67] Question: Non-interest expense expectations - Management anticipates total non-interest expenses to decline in the second half of the year as mortgage volume normalizes [26] Question: Allowance for credit losses outlook - Management expects the allowance for credit losses to normalize to levels at or below pre-pandemic levels [125]
HomeStreet(HMST) - 2021 Q1 - Earnings Call Presentation
2021-04-27 19:16
1st Quarter 2021 as of April 26, 2021 Nasdaq: HMST 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 management's curre ...