HomeStreet, Inc. Reports Third Quarter 2012 Results
Net Income of $21.3 Million Driven By Record Mortgage Banking Revenue
SEATTLE – October 29, 2012 – (BUSINESS WIRE) – HomeStreet, Inc. (NASDAQ:HMST) (the “Company” or “HomeStreet”), the parent company of HomeStreet Bank (the “Bank”), today announced net income of $21.3 million, or $2.90 per diluted share, for the third quarter of 2012, compared to net income of $18.0 million, or $2.43 per diluted share, for the second quarter of 2012.
Highlights for the third quarter of 2012 include:
• | Pre-tax income of $33.1 million increased 55% from the prior quarter driven by an $18.9 million or 42% increase in net gain on mortgage loan origination and sale activities. |
• | Return on equity of 37.16%, up from 34.87% in the prior quarter, and return on average assets of 3.50%, up from 3.04% in the prior quarter. |
• | Record single family mortgage production volume: $1.37 billion of closed loan production designated for sale, up 28% from the second quarter, and $1.31 billion of interest rate lock commitments, up 1% from the second quarter. |
• | HomeStreet maintained its ranking as the number two residential lender by volume of single family mortgages in the five-county Puget Sound area of Washington State (King, Snohomish, Pierce, Kitsap, and Thurston counties), as well as in Spokane County. The Company also became the number one single family mortgage lender in Clark County, Washington, and number three in the greater Portland, Oregon area.(1) |
• | Net interest margin increased to 3.08%, up from 2.83% in the prior quarter. |
• | Total loans held for investment rose $33.5 million, or 3% from the prior quarter with contributions from new lending in all of HomeStreet's primary lending lines of business; commercial, commercial real estate, construction and single family mortgage. This increase marks the first net increase in loans held for investment since the second quarter of 2008. |
• | Nonperforming assets declined to $55.3 million, or 2.20% of total assets, down from $73.7 million, or 3.04% of total assets, in the prior quarter. |
• | Total transaction and savings deposits rose to $1.03 billion, or 52.0% of total deposits, up from $953.4 million, or 50.0% of total deposits, in the prior quarter. |
• | Regulatory capital ratios for the Bank increased, with a Tier 1 leverage ratio of 10.8% and a total risk-based capital ratio of 17.9% at September 30, 2012. |
“Our record earnings in the third quarter were driven primarily by strong mortgage banking activity,” said President and Chief Executive Officer Mark K. Mason. “We continue to realize the benefits in origination volume and market share from our continued focus on recruiting top production and support personnel in our markets. We are also very pleased to have again made significant progress in improving our credit quality during the quarter and we believe our asset quality is consistent with that of healthy institutions today. Just as significant was the growth in interest earning assets and our net interest margin, reflecting improvement in asset yields in part as a result of new lending and expected decreases in our cost of deposits.”
(1) Combined results for HomeStreet and Windermere Mortgage Services Series LLC |
Mortgage Banking
Mortgage Production
Single family closed loan production designated for sale totaled $1.37 billion, increasing $299.6 million, or 28%, from the second quarter of 2012 and increasing $890.2 million, or 186%, from the third quarter of 2011. Single family mortgage interest rate lock commitments, net of estimated fall out, totaled $1.31 billion during the third quarter, up $9.8 million, or 1%, from the second quarter of 2012 and up $682.3 million, or 108%, from the third quarter of 2011. The Company continues to increase its mortgage production capacity, increasing mortgage origination and support personnel by 14% from the prior quarter.
Net gain on mortgage loan origination and sale activities was $64.4 million, an increase of $18.9 million, or 42%, over the second quarter of 2012 and up $48.6 million, or 308%, over the third quarter of 2011. Our mortgage loan origination and sale revenue growth reflects continuing strong demand for both purchase and refinance mortgage loans in our markets, including refinances through the federal government's expanded Home Affordable Refinance Program ("HARP 2.0"), driven by record low mortgage interest rates and strong secondary market profit margins that began to increase in the third quarter of 2011. HARP 2.0 refinances represented approximately 17% of loans originated in the third quarter. Overall, single family mortgage production was comprised of 37% purchases and 63% refinances in the third quarter, compared with 35% purchases and 65% refinances in the prior quarter.
Mortgage Servicing
Mortgage servicing income of $506 thousand decreased $6.6 million, or 93%, from the second quarter of 2012 and decreased $18.0 million, or 97%, from the third quarter of 2011. The decrease for the quarter largely reflects a reduction in sensitivity to interest rates for the Company's mortgage servicing rights (MSRs), which has enabled the Company to reduce the notional amount of derivative instruments used to economically hedge MSRs. The lower notional amount of derivative instruments, along with a flatter yield curve, resulted in a lower net gain from derivatives economically hedging MSRs, which negatively impacted mortgage servicing income. In addition, MSR risk management results for the quarter also reflect a decline in the fair value of MSRs due to changes in model inputs and assumptions primarily related to factors other than interest rate changes, which are not within the scope of the Company's MSR hedging strategy. Such factors included a streamlined refinance program implemented by FHA and higher expected home values, both of which generally lead to higher prepayment speeds, and resulted in a net loss from MSR risk management activities in the quarter. The significant net gain from MSR risk management activities in the third quarter of 2011 resulted from a substantial widening of mortgage interest rates versus swap interest rates and lower realized prepayments. The total loans serviced for others portfolio increased to $8.92 billion compared with $8.30 billion at June 30, 2012.
Credit Quality
Nonperforming assets (NPAs) declined to $55.3 million, or 2.20% of total assets, as of September 30, 2012, from $73.7 million, or 3.04% of total assets, at June 30, 2012. This improvement primarily resulted from a net reduction in other real estate owned (OREO) which declined to $17.0 million, from $40.6 million at June 30, 2012, driven primarily by the sale of a construction/land development property that was transferred to OREO in the second quarter and had a carrying value of $15.9 million at June 30, 2012. Nonaccrual loans were $38.2 million, or 2.94% of total loans, up from $33.1 million, or 2.62% of total loans, at June 30, 2012. Loan delinquencies were $95.7 million, or 7.4% of total loans, up from $83.9 million, or 6.6% of total loans, in the prior quarter, primarily reflecting additions of single family and commercial business nonaccrual loans. Excluding single family mortgage loans insured or guaranteed by the FHA or VA, loan delinquencies were $50.7 million, or 3.9% of total loans, up from $41.2 million, or 3.3% of total loans, in the prior quarter.
The allowance for credit losses increased by $502 thousand to $27.6 million, or 2.12% of total loans, compared to $27.1 million, or 2.13% of total loans, at June 30, 2012. A provision for credit losses of $5.5 million was recorded for the third quarter of 2012, compared with $2.0 million recorded in the second quarter of 2012. Net charge-offs in the quarter decreased to $5.0 million, down from $10.3 million in the second quarter of 2012.
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Deposits
Deposits were $1.98 billion at September 30, 2012, up $77.1 million, or 4%, from $1.90 billion at June 30, 2012 and down $75.2 million, or 4%, from a year ago. Certificates of deposit decreased $71.0 million, or 9%, from the prior quarter and $409.6 million, or 37%, from a year ago as we manage the reduction of these higher-cost deposits and replace them with lower-cost transaction and savings deposits, which increased $75.4 million, or 8%, from the prior quarter and $295.3 million, or 40%, from a year ago. The improvement in the composition of deposits reflects a focused effort on attracting transaction and savings deposit balances through our branch network and converting customers with maturing certificates of deposit to transaction and savings deposits.
Results of Operations
Net Interest Income
Net interest income was $16.3 million, up $1.6 million, or 11%, from the second quarter of 2012 and an increase of $4.3 million, or 36%, from the third quarter of 2011.Total average interest earning assets increased modestly from the prior quarter as higher mortgage production volumes resulted in a higher average balance of loans held for sale, partially offset by a decrease in cash and cash equivalents which was redeployed for loans held for sale production. Total average interest bearing deposit balances declined as a result of declines in higher-cost certificates of deposit, largely offset by an increase in lower-cost transaction and savings deposits. The net interest margin increased to 3.08% from 2.83% in the second quarter of 2012 primarily as a result of the repricing and conversion of maturing certificates of deposit and the recognition of accumulated interest collected on nonaccrual loans that were paid off in the quarter.
Noninterest Income
Noninterest income was $68.1 million, up $12.6 million, or 23%, from $55.5 million in the second quarter of 2012 and up $31.2 million, or 84%, from $37.0 million in the third quarter of 2011. The increase from prior quarter was primarily due to an $18.9 million increase in net gain on mortgage loan origination and sale activities, reflecting an increase in single family mortgage loan production volume and secondary market profit margins, partially offset by a $6.6 million decrease in mortgage servicing income, reflecting a decrease in income recognized from MSR risk management activities, largely reflecting a shift towards lower sensitivity to interest rates for the Company's mortgage servicing rights, which has resulted in a lower net gain from derivatives economically hedging MSRs.
Noninterest Expense
Noninterest expense was $45.8 million, down $1.0 million, or 2%, from $46.8 million in the second quarter of 2012 and up $13.5 million, or 42%, from $32.3 million in the third quarter of 2011. The decrease from prior quarter was primarily due to lower OREO expense, which decreased $5.7 million, partially offset by a $3.3 million increase in salary and related costs, reflecting an increase in employees and higher incentive compensation driven by elevated mortgage loan production volume.
Income Taxes
The Company's income tax expense was $11.8 million for the quarter as compared to $3.4 million in the prior quarter. The Company's 2012 year-to-date income tax expense of $13.4 million is based on a projected annual effective income tax rate plus discrete benefits recognized year to date. The Company's projected annual effective tax rate differs from the Federal statutory tax rate of 35% primarily due to state income taxes on income in Oregon, Hawaii and Idaho, tax exempt income and a $14.4 million tax benefit related to the reversal of the Company's beginning of year valuation allowance against deferred tax assets.
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Capital
Regulatory capital ratios for the Bank are as follows:
Sept. 30, 2012 | Jun. 30, 2012 | Sept. 30, 2011 | Well-capitalized ratios | |||||||||
Total risk-based capital (to risk-weighted assets) | 17.9 | % | 17.0 | % | 9.8 | % | 10.0 | % | ||||
Tier 1 risk-based capital (to risk-weighted assets) | 16.6 | % | 15.8 | % | 8.5 | % | 6.0 | % | ||||
Tier 1 leverage capital (to average assets) | 10.8 | % | 10.1 | % | 5.6 | % | 5.0 | % |
The Bank continues to meet the capital requirements of a "well-capitalized" institution and the minimum Tier 1 leverage ratio of 9.0% required by its regulators.
Stock Split
On October 24, 2012, the Board of Directors approved a two-for-one forward split of the Company's common stock. The total number of shares of common stock outstanding will increase from approximately 7.2 million to approximately 14.4 million and the total authorized stock will increase from 80 million shares to 160 million shares. Shares outstanding and per share information have not been adjusted to reflect the stock split, which is effective on November 5, 2012.
Conference Call
HomeStreet, Inc. will conduct a quarterly earnings conference call on Monday, October 29, 2012 at 10:00 a.m. PT (1:00 p.m. ET). Mark K. Mason, President and CEO, will discuss third quarter 2012 results and provide an update on recent activities. A question and answer session will follow the presentation. Shareholders, analysts and other interested parties may join the call by dialing 1-877-317-6789 shortly before 10:00 a.m. PT. A rebroadcast will be available approximately one hour after the conference call by dialing 1-877-344-7529 and entering passcode 10019550.
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About HomeStreet, Inc.
HomeStreet, Inc. (NASDAQ:HMST) is a diversified financial services company headquartered in Seattle, Washington, and the bank holding company for HomeStreet Bank, a state-chartered, FDIC-insured savings bank. HomeStreet Bank offers consumer and business banking, investment and insurance products and services in Washington, Oregon, Idaho and Hawaii. For more information, visit http://ir.homestreet.com.
Forward-Looking Statements
This report to shareholders contains forward-looking statements concerning HomeStreet, Inc. and the Bank and their operations, performance, financial conditions and likelihood of success. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on many beliefs, assumptions, estimates and expectations of our future performance, taking into account information currently available to us, and include statements about the competitiveness of the banking industry. When used in this press release, the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” and similar expressions (including the negative of these terms) may help identify forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date.
We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied or projected by, such forward-looking statements. For instance, our ability to expand our banking operations geographically and across market sectors, grow our franchise and capitalize on market opportunities may be limited due to future risks and uncertainties including, but not limited to, changes in general economic conditions that impact our markets and our business, regulatory and legislative actions that may constrain our ability to do business, significant increases in the competition we face in our industry and market and the extent of our success in problem asset resolution efforts. In addition, we may not recognize all or a substantial portion of the value of our rate-lock loan activity due to challenges our customers may face in meeting current underwriting standards, a decrease in interest rates, an increase in competition for such loans, unfavorable changes in general economic conditions, including housing prices, the job market, consumer confidence and spending habits either nationally or in the regional and local market areas in which the Company does business and legislative or regulatory actions or reform (including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act). A discussion of the factors that we know to pose risk to the achievement of our business goals and our operational and financial objectives is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2012. These factors are updated from time to time in our filings with the Securities and Exchange Commission, and readers of this release are cautioned to review those disclosures in conjunction with the discussions herein.
Information contained herein, other than information at December 31, 2011, and for the twelve months then ended, is unaudited. All financial data should be read in conjunction with the notes to the consolidated financial statements of HomeStreet, Inc., and subsidiaries as of and for the fiscal year ended December 31, 2011, as contained in the Company's Annual Report on Form 10-K for such fiscal year.
Source: HomeStreet, Inc.
Contact: | Investor Relations & Media: | |
HomeStreet, Inc. | ||
Terri Silver, 206-389-6303 | ||
terri.silver@homestreet.com | ||
http://ir.homestreet.com |
5
HomeStreet, Inc. and Subsidiaries
Summary Financial Data
Quarter ended | Nine months ended | |||||||||||||||||||||||||||
(in thousands, except share data) | Sept. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | Sept. 30, 2012 | Sept. 30, 2011 | |||||||||||||||||||||
Operations Data (for the period ended): | ||||||||||||||||||||||||||||
Net interest income | $ | 16,291 | $ | 14,698 | $ | 12,905 | $ | 12,866 | $ | 11,970 | $ | 43,894 | $ | 35,474 | ||||||||||||||
Provision for loan losses | 5,500 | 2,000 | — | — | 1,000 | 7,500 | 3,300 | |||||||||||||||||||||
Noninterest income | 68,133 | 55,502 | 39,111 | 27,461 | 36,979 | 162,745 | 69,897 | |||||||||||||||||||||
Noninterest expense | 45,819 | 46,847 | 34,687 | 33,903 | 32,329 | 127,352 | 92,590 | |||||||||||||||||||||
Net income before taxes | 33,105 | 21,353 | 17,329 | 6,424 | 15,620 | 71,787 | 9,481 | |||||||||||||||||||||
Income taxes | 11,762 | 3,357 | (1,721 | ) | (602 | ) | 362 | 13,397 | 388 | |||||||||||||||||||
Net income | $ | 21,343 | $ | 17,996 | $ | 19,050 | $ | 7,026 | $ | 15,258 | $ | 58,390 | $ | 9,093 | ||||||||||||||
Basic earnings per common share (1) | $ | 2.98 | $ | 2.53 | $ | 3.70 | $ | 2.60 | $ | 5.65 | $ | 9.01 | $ | 3.37 | ||||||||||||||
Diluted earnings per common share (1) | $ | 2.90 | $ | 2.43 | $ | 3.55 | $ | 2.42 | $ | 5.31 | $ | 8.71 | $ | 3.24 | ||||||||||||||
Weighted average common shares | ||||||||||||||||||||||||||||
Basic | 7,167,975 | 7,126,060 | 5,146,283 | 2,701,749 | 2,701,749 | 6,480,106 | 2,701,749 | |||||||||||||||||||||
Diluted | 7,349,516 | 7,412,032 | 5,360,165 | 2,898,585 | 2,872,716 | 6,707,238 | 2,804,052 | |||||||||||||||||||||
Shareholders’ equity per share | $ | 33.33 | $ | 29.88 | $ | 26.70 | $ | 31.98 | $ | 29.73 | $ | 33.33 | $ | 29.73 | ||||||||||||||
Common shares outstanding (1) | 7,177,486 | 7,162,607 | 7,162,607 | 2,701,749 | 2,701,749 | 7,177,486 | 2,701,749 | |||||||||||||||||||||
Financial position (at period end): | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 22,051 | $ | 75,063 | $ | 92,953 | $ | 263,302 | $ | 138,429 | $ | 22,051 | $ | 138,429 | ||||||||||||||
Investment securities available for sale | 414,050 | 415,610 | 446,198 | 329,047 | 339,453 | 414,050 | 339,453 | |||||||||||||||||||||
Loans held for sale | 532,580 | 412,933 | 290,954 | 150,409 | 226,590 | 532,580 | 226,590 | |||||||||||||||||||||
Loans held for investment, net | 1,268,703 | 1,235,253 | 1,295,471 | 1,300,873 | 1,360,219 | 1,268,703 | 1,360,219 | |||||||||||||||||||||
Mortgage servicing rights | 81,512 | 78,240 | 86,801 | 77,281 | 74,083 | 81,512 | 74,083 | |||||||||||||||||||||
Other real estate owned | 17,003 | 40,618 | 31,640 | 38,572 | 64,368 | 17,003 | 64,368 | |||||||||||||||||||||
Total assets | 2,507,941 | 2,424,947 | 2,367,497 | 2,264,957 | 2,316,839 | 2,507,941 | 2,316,839 | |||||||||||||||||||||
Deposits | 1,981,814 | 1,904,749 | 2,000,633 | 2,009,755 | 2,056,977 | 1,981,814 | 2,056,977 | |||||||||||||||||||||
FHLB advances | 131,597 | 65,590 | 57,919 | 57,919 | 67,919 | 131,597 | 67,919 | |||||||||||||||||||||
Repurchase agreements | — | 100,000 | — | — | — | — | — | |||||||||||||||||||||
Shareholders’ equity | 239,260 | 214,023 | 191,230 | 86,407 | 80,336 | 239,260 | 80,336 | |||||||||||||||||||||
Financial position (averages): | ||||||||||||||||||||||||||||
Investment securities available for sale | $ | 411,916 | $ | 431,875 | $ | 381,129 | $ | 338,933 | $ | 272,294 | $ | 408,320 | $ | 295,988 | ||||||||||||||
Loans held for investment | 1,270,652 | 1,304,740 | 1,338,552 | 1,385,037 | 1,427,763 | 1,304,526 | 1,509,296 | |||||||||||||||||||||
Total interest earning assets | 2,184,791 | 2,142,451 | 2,090,180 | 2,078,506 | 2,019,243 | 2,139,310 | 2,066,943 | |||||||||||||||||||||
Total interest bearing deposits | 1,625,437 | 1,640,159 | 1,705,371 | 1,745,493 | 1,787,388 | 1,656,874 | 1,837,708 | |||||||||||||||||||||
FHLB advances | 112,839 | 79,490 | 57,919 | 59,169 | 72,267 | 83,523 | 105,410 | |||||||||||||||||||||
Repurchase agreements | 18,478 | 52,369 | — | — | — | 23,597 | — | |||||||||||||||||||||
Total interest bearing liabilities | 1,818,611 | 1,833,875 | 1,825,146 | 1,866,519 | 1,921,512 | 1,825,851 | 2,005,843 | |||||||||||||||||||||
Shareholders’ equity | 229,762 | 206,428 | 140,784 | 84,038 | 73,499 | 192,778 | 62,958 |
6
HomeStreet, Inc. and Subsidiaries
Summary Financial Data (continued)
Quarter ended | Nine months ended | |||||||||||||||||||||||||||
(in thousands, except share data) | Sept. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | Sept. 30, 2012 | Sept. 30, 2011 | |||||||||||||||||||||
Financial performance: | ||||||||||||||||||||||||||||
Return on average common shareholders’ equity (2) | 37.16 | % | 34.87 | % | 54.13 | % | 33.44 | % | 83.04 | % | 40.38 | % | 19.26 | % | ||||||||||||||
Return on average assets | 3.50 | % | 3.04 | % | 3.30 | % | 1.23 | % | 2.67 | % | 3.29 | % | 0.53 | % | ||||||||||||||
Net interest margin (3) | 3.08 | % | 2.83 | % | 2.53 | % | 2.50 | % | 2.38 | % | 2.82 | % | 2.30 | % | ||||||||||||||
Efficiency ratio (4) | 54.27 | % | 66.73 | % | 66.69 | % | 84.07 | % | 66.05 | % | 61.63 | % | 87.87 | % | ||||||||||||||
Operating efficiency ratio (6) | 53.86 | % | 58.12 | % | 61.84 | % | 74.78 | % | 47.43 | % | 57.32 | % | 62.69 | % | ||||||||||||||
Credit quality: | ||||||||||||||||||||||||||||
Allowance for credit losses | $ | 27,627 | $ | 27,125 | $ | 35,402 | $ | 42,800 | $ | 53,386 | $ | 27,627 | $ | 53,386 | ||||||||||||||
Allowance for credit losses/total loans | 2.12 | % | 2.13 | % | 2.64 | % | 3.18 | % | 3.76 | % | 2.12 | % | 3.76 | % | ||||||||||||||
Allowance for credit losses/nonaccrual loans | 71.80 | % | 81.28 | % | 46.58 | % | 55.81 | % | 55.91 | % | 71.80 | % | 55.91 | % | ||||||||||||||
Total classified assets | $ | 102,385 | $ | 137,165 | $ | 208,792 | $ | 188,167 | $ | 225,022 | $ | 102,385 | $ | 225,022 | ||||||||||||||
Classified assets/total assets | 4.08 | % | 5.66 | % | 8.82 | % | 8.31 | % | 9.71 | % | 4.08 | % | 9.71 | % | ||||||||||||||
Total nonaccrual loans (5) | $ | 38,247 | $ | 33,107 | $ | 75,575 | $ | 76,484 | $ | 95,094 | $ | 38,247 | $ | 95,094 | ||||||||||||||
Nonaccrual loans/total loans | 2.94 | % | 2.62 | % | 5.66 | % | 5.69 | % | 6.73 | % | 2.94 | % | 6.73 | % | ||||||||||||||
Other real estate owned | $ | 17,003 | $ | 40,618 | $ | 31,640 | $ | 38,572 | $ | 64,368 | $ | 17,003 | $ | 64,368 | ||||||||||||||
Total nonperforming assets | $ | 55,250 | $ | 73,725 | $ | 107,215 | $ | 115,056 | $ | 159,462 | $ | 55,250 | $ | 159,462 | ||||||||||||||
Nonperforming assets/total assets | 2.20 | % | 3.04 | % | 4.53 | % | 5.08 | % | 6.88 | % | 2.20 | % | 6.88 | % | ||||||||||||||
Net charge-offs | $ | 4,998 | $ | 10,277 | $ | 7,398 | $ | 10,586 | $ | 7,673 | $ | 22,673 | $ | 14,480 | ||||||||||||||
Regulatory capital ratios for the Bank: | ||||||||||||||||||||||||||||
Tier 1 capital to total assets (leverage) | 10.77 | % | 10.14 | % | 9.29 | % | 6.04 | % | 5.64 | % | 10.77 | % | 5.64 | % | ||||||||||||||
Tier 1 risk-based capital | 16.65 | % | 15.75 | % | 14.18 | % | 9.88 | % | 8.51 | % | 16.65 | % | 8.51 | % | ||||||||||||||
Total risk-based capital | 17.90 | % | 17.01 | % | 15.45 | % | 11.15 | % | 9.79 | % | 17.90 | % | 9.79 | % | ||||||||||||||
Other data: | ||||||||||||||||||||||||||||
Full-time equivalent employees (ending) | 998 | 913 | 821 | 613 | 598 | 998 | 598 |
(1) | Per share data shown after giving effect to the 2-for-1 forward stock split implemented on March 6, 2012 as well as the 1-for-2.5 reverse stock split implemented on July 19, 2011. |
(2) | Net earnings available to common shareholders divided by average common shareholders’ equity. |
(3) | Net interest income divided by total interest earning assets on a tax equivalent basis. |
(4) | The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income). |
(5) | Generally, loans are placed on nonaccrual status when they are 90 or more days past due. |
(6) | We include an operating efficiency ratio which is not calculated based on accounting principles generally accepted in the United States (“GAAP”), but which we believe provides important information regarding our results of operations. Our calculation of the operating efficiency ratio is computed by dividing noninterest expense less costs related to OREO (gains (losses) on sales, valuation allowance adjustments, and maintenance and taxes) by total revenue (net interest income and noninterest income). Management uses this non-GAAP measurement as part of its assessment of performance in managing noninterest expense. We believe that costs related to OREO are more appropriately considered as credit-related costs rather than as an indication of our operating efficiency. The following table provides a reconciliation of non-GAAP to GAAP measurement. |
Quarter ended | Nine months ended | ||||||||||||||||||||
Sept. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | Sept. 30, 2012 | Sept. 30, 2011 | |||||||||||||||
Efficiency ratio | 54.27 | % | 66.73 | % | 66.69 | % | 84.07 | % | 66.05 | % | 61.63 | % | 87.87 | % | |||||||
Less impact of OREO expenses | 0.41 | % | 8.61 | % | 4.85 | % | 9.29 | % | 18.62 | % | 4.31 | % | 25.18 | % | |||||||
Operating efficiency ratio | 53.86 | % | 58.12 | % | 61.84 | % | 74.78 | % | 47.43 | % | 57.32 | % | 62.69 | % |
7
HomeStreet, Inc. and Subsidiaries
Consolidated Statements of Operations
Quarter ended Sept. 30, | % | Nine Months Ended Sept. 30, | % | |||||||||||||||||||
(in thousands, except share data) | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Loans | $ | 18,283 | $ | 17,593 | 4 | $ | 52,086 | $ | 54,208 | (4 | ) | |||||||||||
Investment securities available for sale | 2,517 | 1,422 | 77 | 7,205 | 5,128 | 41 | ||||||||||||||||
Other | 24 | 117 | (79 | ) | 216 | 274 | (21 | ) | ||||||||||||||
20,824 | 19,132 | 9 | 59,507 | 59,610 | — | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 3,908 | 5,848 | (33 | ) | 12,985 | 19,427 | (33 | ) | ||||||||||||||
Federal Home Loan Bank advances | 297 | 855 | (65 | ) | 1,506 | 3,122 | (52 | ) | ||||||||||||||
Securities sold under agreements to repurchase | 19 | — | NM | 69 | — | NM | ||||||||||||||||
Long-term debt | 305 | 458 | (33 | ) | 1,041 | 1,586 | (34 | ) | ||||||||||||||
Other | 4 | 1 | 300 | 12 | 1 | NM | ||||||||||||||||
4,533 | 7,162 | (37 | ) | 15,613 | 24,136 | (35 | ) | |||||||||||||||
Net interest income | 16,291 | 11,970 | 36 | 43,894 | 35,474 | 24 | ||||||||||||||||
Provision for credit losses | 5,500 | 1,000 | 450 | 7,500 | 3,300 | 127 | ||||||||||||||||
Net interest income after provision for credit losses | 10,791 | 10,970 | (2 | ) | 36,394 | 32,174 | 13 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Net gain on mortgage loan origination and sale activities | 64,390 | 15,766 | 308 | 138,386 | 29,702 | 366 | ||||||||||||||||
Mortgage servicing income | 506 | 18,532 | (97 | ) | 15,470 | 32,093 | (52 | ) | ||||||||||||||
Income from Windermere Mortgage Services, Inc. | 1,188 | 902 | 32 | 3,748 | 1,380 | 172 | ||||||||||||||||
Gain (loss) on debt extinguishment | — | — | — | (939 | ) | 2,000 | NM | |||||||||||||||
Depositor and other retail banking fees | 756 | 778 | (3 | ) | 2,262 | 2,313 | (2 | ) | ||||||||||||||
Insurance commissions | 192 | 103 | 86 | 550 | 724 | (24 | ) | |||||||||||||||
Gain on securities available for sale | 397 | 642 | (38 | ) | 1,349 | 643 | 110 | |||||||||||||||
Other | 704 | 256 | 175 | 1,919 | 1,042 | 84 | ||||||||||||||||
68,133 | 36,979 | 84 | 162,745 | 69,897 | 133 | |||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Salaries and related costs | 31,573 | 13,217 | 139 | 81,149 | 37,056 | 119 | ||||||||||||||||
General and administrative | 7,033 | 4,310 | 63 | 19,030 | 12,307 | 55 | ||||||||||||||||
Legal | 312 | 983 | (68 | ) | 1,471 | 2,286 | (36 | ) | ||||||||||||||
Consulting | 1,069 | 270 | 296 | 1,746 | 633 | 176 | ||||||||||||||||
Federal Deposit Insurance Corporation assessments | 794 | 1,264 | (37 | ) | 2,751 | 4,278 | (36 | ) | ||||||||||||||
Occupancy | 2,279 | 1,663 | 37 | 6,160 | 5,031 | 22 | ||||||||||||||||
Information services | 2,411 | 1,509 | 60 | 6,129 | 4,466 | 37 | ||||||||||||||||
Other real estate owned expense | 348 | 9,113 | (96 | ) | 8,916 | 26,533 | (66 | ) | ||||||||||||||
45,819 | 32,329 | 42 | 127,352 | 92,590 | 38 | |||||||||||||||||
Income before income tax expense | 33,105 | 15,620 | 112 | 71,787 | 9,481 | 657 | ||||||||||||||||
Income tax expense | 11,762 | 362 | NM | 13,397 | 388 | NM | ||||||||||||||||
NET INCOME | $ | 21,343 | $ | 15,258 | 40 | $ | 58,390 | $ | 9,093 | 542 | ||||||||||||
Basic income per share | $ | 2.98 | $ | 5.65 | (47 | ) | $ | 9.01 | $ | 3.37 | 167 | |||||||||||
Diluted income per share | $ | 2.90 | $ | 5.31 | (45 | ) | $ | 8.71 | $ | 3.24 | 169 | |||||||||||
Basic weighted average number of shares outstanding | 7,167,975 | 2,701,749 | 165 | 6,480,106 | 2,701,749 | 140 | ||||||||||||||||
Diluted weighted average number of shares outstanding | 7,349,516 | 2,872,716 | 156 | 6,707,238 | 2,804,052 | 139 |
8
HomeStreet, Inc. and Subsidiaries
Five Quarter Consolidated Statements of Operation
Quarter ended | ||||||||||||||||||||
(in thousands, except share data) | Sept. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 18,283 | $ | 17,250 | $ | 16,553 | $ | 17,433 | $ | 17,593 | ||||||||||
Investment securities available for sale | 2,517 | 2,449 | 2,238 | 1,792 | 1,422 | |||||||||||||||
Other | 24 | 56 | 137 | 203 | 117 | |||||||||||||||
20,824 | 19,755 | 18,928 | 19,428 | 19,132 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 3,908 | 4,198 | 4,879 | 5,388 | 5,848 | |||||||||||||||
Federal Home Loan Bank advances | 297 | 535 | 675 | 699 | 855 | |||||||||||||||
Securities sold under agreements to repurchase | 19 | 50 | — | — | — | |||||||||||||||
Long-term debt | 305 | 271 | 465 | 459 | 458 | |||||||||||||||
Other | 4 | 3 | 4 | 16 | 1 | |||||||||||||||
4,533 | 5,057 | 6,023 | 6,562 | 7,162 | ||||||||||||||||
Net interest income | 16,291 | 14,698 | 12,905 | 12,866 | 11,970 | |||||||||||||||
Provision for credit losses | 5,500 | 2,000 | — | — | 1,000 | |||||||||||||||
Net interest income after provision for credit losses | 10,791 | 12,698 | 12,905 | 12,866 | 10,970 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Net gain on mortgage loan origination and sale activities | 64,390 | 45,486 | 28,510 | 18,919 | 15,766 | |||||||||||||||
Mortgage servicing income | 506 | 7,091 | 7,873 | 5,963 | 18,532 | |||||||||||||||
Income from Windermere Mortgage Services, Inc. | 1,188 | 1,394 | 1,166 | 739 | 902 | |||||||||||||||
Loss on debt extinguishment | — | (939 | ) | — | — | — | ||||||||||||||
Depositor and other retail banking fees | 756 | 771 | 735 | 748 | 778 | |||||||||||||||
Insurance commissions | 192 | 177 | 182 | 186 | 103 | |||||||||||||||
Gain on securities available for sale | 397 | 911 | 41 | 459 | 642 | |||||||||||||||
Other | 704 | 611 | 604 | 447 | 256 | |||||||||||||||
68,133 | 55,502 | 39,111 | 27,461 | 36,979 | ||||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and related costs | 31,573 | 28,224 | 21,351 | 16,462 | 13,217 | |||||||||||||||
General and administrative | 7,033 | 6,725 | 5,273 | 6,182 | 4,310 | |||||||||||||||
Legal | 312 | 724 | 435 | 1,075 | 983 | |||||||||||||||
Consulting | 1,069 | 322 | 355 | 2,011 | 270 | |||||||||||||||
Federal Deposit Insurance Corporation assessments | 794 | 717 | 1,240 | 1,256 | 1,264 | |||||||||||||||
Occupancy | 2,279 | 2,092 | 1,790 | 1,733 | 1,663 | |||||||||||||||
Information services | 2,411 | 1,994 | 1,723 | 1,436 | 1,509 | |||||||||||||||
Other real estate owned expense | 348 | 6,049 | 2,520 | 3,748 | 9,113 | |||||||||||||||
45,819 | 46,847 | 34,687 | 33,903 | 32,329 | ||||||||||||||||
Income before income tax expense | 33,105 | 21,353 | 17,329 | 6,424 | 15,620 | |||||||||||||||
Income tax expense (benefit) | 11,762 | 3,357 | (1,721 | ) | (602 | ) | 362 | |||||||||||||
NET INCOME | $ | 21,343 | $ | 17,996 | $ | 19,050 | $ | 7,026 | $ | 15,258 | ||||||||||
Basic income per share | $ | 2.98 | $ | 2.53 | $ | 3.70 | $ | 2.60 | $ | 5.65 | ||||||||||
Diluted income per share | $ | 2.90 | $ | 2.43 | $ | 3.55 | $ | 2.42 | $ | 5.31 | ||||||||||
Basic weighted average number of shares outstanding | 7,167,975 | 7,126,060 | 5,146,283 | 2,701,749 | 2,701,749 | |||||||||||||||
Diluted weighted average number of shares outstanding | 7,349,516 | 7,412,032 | 5,360,165 | 2,898,585 | 2,872,716 |
9
HomeStreet, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(in thousands, except share data) | Sept. 30, 2012 | Dec. 31, 2011 | % Change | ||||||||
Assets: | |||||||||||
Cash and cash equivalents (including interest-bearing instruments of $11,497 and $246,113) | $ | 22,051 | $ | 263,302 | (92 | ) | |||||
Investment securities available for sale | 414,050 | 329,047 | 26 | ||||||||
Loans held for sale (includes $525,926 and $130,546 carried at fair value) | 532,580 | 150,409 | 254 | ||||||||
Loans held for investment (net of allowance for loan losses of $27,461 and $42,689) | 1,268,703 | 1,300,873 | (2 | ) | |||||||
Mortgage servicing rights (includes $73,787 and $70,169 carried at fair value) | 81,512 | 77,281 | 5 | ||||||||
Other real estate owned | 17,003 | 38,572 | (56 | ) | |||||||
Federal Home Loan Bank stock, at cost | 36,697 | 37,027 | (1 | ) | |||||||
Premises and equipment, net | 13,060 | 6,569 | 99 | ||||||||
Accounts receivable and other assets | 122,285 | 61,877 | 98 | ||||||||
Total assets | 2,507,941 | 2,264,957 | 11 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Deposits | 1,981,814 | 2,009,755 | (1 | ) | |||||||
Federal Home Loan Bank advances | 131,597 | 57,919 | 127 | ||||||||
Accounts payable and accrued expenses | 93,413 | 49,019 | 91 | ||||||||
Long-term debt | 61,857 | 61,857 | — | ||||||||
Total liabilities | 2,268,681 | 2,178,550 | 4 | ||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, no par value | |||||||||||
Authorized 10,000 shares | |||||||||||
Issued and outstanding, 0 shares and 0 shares | — | — | — | ||||||||
Common stock, no par value | |||||||||||
Authorized 80,000,000 | |||||||||||
Issued and outstanding, 7,177,486 shares and 2,701,749 shares | 511 | 511 | — | ||||||||
Additional paid-in capital | 89,264 | 31 | NM | ||||||||
Retained earnings | 140,136 | 81,746 | 71 | ||||||||
Accumulated other comprehensive income | 9,349 | 4,119 | 127 | ||||||||
Total shareholders’ equity | 239,260 | 86,407 | 177 | ||||||||
Total liabilities and shareholders’ equity | $ | 2,507,941 | $ | 2,264,957 | 11 |
10
HomeStreet, Inc. and Subsidiaries
Five Quarter Consolidated Statements of Financial Condition
(in thousands, except share data) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 22,051 | $ | 75,063 | $ | 92,953 | $ | 263,302 | $ | 138,429 | ||||||||||
Investment securities available for sale | 414,050 | 415,610 | 446,198 | 329,047 | 339,453 | |||||||||||||||
Loans held for sale | 532,580 | 412,933 | 290,954 | 150,409 | 226,590 | |||||||||||||||
Loans held for investment | 1,268,703 | 1,235,253 | 1,295,471 | 1,300,873 | 1,360,219 | |||||||||||||||
Mortgage servicing rights | 81,512 | 78,240 | 86,801 | 77,281 | 74,083 | |||||||||||||||
Other real estate owned | 17,003 | 40,618 | 31,640 | 38,572 | 64,368 | |||||||||||||||
Federal Home Loan Bank stock, at cost | 36,697 | 37,027 | 37,027 | 37,027 | 37,027 | |||||||||||||||
Premises and equipment, net | 13,060 | 10,226 | 7,034 | 6,569 | 6,615 | |||||||||||||||
Accounts receivable and other assets | 122,285 | 119,977 | 79,419 | 61,877 | 70,055 | |||||||||||||||
Total assets | $ | 2,507,941 | $ | 2,424,947 | $ | 2,367,497 | $ | 2,264,957 | $ | 2,316,839 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | $ | 1,981,814 | $ | 1,904,749 | $ | 2,000,633 | $ | 2,009,755 | $ | 2,056,977 | ||||||||||
Federal Home Loan Bank advances | 131,597 | 65,590 | 57,919 | 57,919 | 67,919 | |||||||||||||||
Securities sold under agreements to repurchase | — | 100,000 | — | — | — | |||||||||||||||
Accounts payable and accrued expenses | 93,413 | 78,728 | 55,858 | 49,019 | 49,750 | |||||||||||||||
Long-term debt | 61,857 | 61,857 | 61,857 | 61,857 | 61,857 | |||||||||||||||
Total liabilities | 2,268,681 | 2,210,924 | 2,176,267 | 2,178,550 | 2,236,503 | |||||||||||||||
Shareholders’ equity: | ||||||||||||||||||||
Preferred stock, no par value | ||||||||||||||||||||
Authorized 10,000 shares | ||||||||||||||||||||
Issued and outstanding, 0 shares | — | — | — | — | — | |||||||||||||||
Common stock, no par value | ||||||||||||||||||||
Authorized 80,000,000 | ||||||||||||||||||||
Issued and outstanding | 511 | 511 | 511 | 511 | 511 | |||||||||||||||
Additional paid-in capital | 89,264 | 88,637 | 86,755 | 31 | 28 | |||||||||||||||
Retained earnings | 140,136 | 118,793 | 100,796 | 81,746 | 74,720 | |||||||||||||||
Accumulated other comprehensive income (loss) | 9,349 | 6,082 | 3,168 | 4,119 | 5,077 | |||||||||||||||
Total shareholders’ equity | 239,260 | 214,023 | 191,230 | 86,407 | 80,336 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,507,941 | $ | 2,424,947 | $ | 2,367,497 | $ | 2,264,957 | $ | 2,316,839 |
11
HomeStreet, Inc. and Subsidiaries
Average Balances, Yields and Rates Paid (Taxable-equivalent basis)
Quarter ended Sept. 30, | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets (1): | ||||||||||||||||||||||
Cash & cash equivalents | $ | 50,056 | $ | 24 | 0.15 | % | $ | 192,323 | $ | 114 | 0.23 | % | ||||||||||
Investment securities | 411,916 | 3,013 | 2.93 | % | 272,294 | 1,444 | 2.14 | % | ||||||||||||||
Loans held for sale | 452,167 | 3,854 | 3.41 | % | 126,863 | 1,362 | 4.33 | % | ||||||||||||||
Loans held for investment | 1,270,652 | 14,464 | 4.54 | % | 1,427,763 | 16,268 | 4.54 | % | ||||||||||||||
Total interest-earning assets | 2,184,791 | 21,355 | 3.90 | % | 2,019,243 | 19,188 | 3.79 | % | ||||||||||||||
Noninterest-earning assets (2) | 256,631 | 265,216 | ||||||||||||||||||||
Total assets | $ | 2,441,422 | $ | 2,284,459 | ||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand accounts | $ | 155,947 | 128 | 0.33 | % | $ | 133,006 | 140 | 0.42 | % | ||||||||||||
Savings accounts | 98,711 | 114 | 0.46 | % | 58,043 | 73 | 0.50 | % | ||||||||||||||
Money market accounts | 655,123 | 857 | 0.52 | % | 461,278 | 715 | 0.62 | % | ||||||||||||||
Certificate accounts | 715,656 | 2,809 | 1.56 | % | 1,135,061 | 4,920 | 1.72 | % | ||||||||||||||
Total interest-bearing deposits | 1,625,437 | 3,908 | 0.96 | % | 1,787,388 | 5,848 | 1.30 | % | ||||||||||||||
FHLB advances | 112,839 | 297 | 1.19 | % | 72,267 | 855 | 4.69 | % | ||||||||||||||
Securities sold under agreements to repurchase | 18,478 | 19 | 0.14 | % | — | — | — | % | ||||||||||||||
Long-term debt | 61,857 | 305 | 1.97 | % | 61,857 | 459 | 2.97 | % | ||||||||||||||
Other borrowings | — | 4 | — | % | — | — | — | % | ||||||||||||||
Total interest-bearing liabilities | 1,818,611 | 4,533 | 0.99 | % | 1,921,512 | 7,162 | 1.48 | % | ||||||||||||||
Other noninterest-bearing liabilities | 393,049 | 289,448 | ||||||||||||||||||||
Total liabilities | 2,211,660 | 2,210,960 | ||||||||||||||||||||
Shareholders’ equity | 229,762 | 73,499 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,441,422 | $ | 2,284,459 | ||||||||||||||||||
Net interest income (3) | $ | 16,822 | $ | 12,026 | ||||||||||||||||||
Net interest spread | 2.91 | % | 2.31 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.17 | % | 0.07 | % | ||||||||||||||||||
Net interest margin | 3.08 | % | 2.38 | % |
(1) | The average balances of nonaccrual assets and related income, if any, are included in their respective categories. |
(2) | Includes loan balances that have been foreclosed and are now reclassified to other real estate owned. |
(3) | Includes taxable-equivalent adjustments, which is a non-GAAP measure, primarily related to tax-exempt income on certain loans and securities of $531 thousand for the quarter ended September 30, 2012 and $56 thousand for the quarter ended September 30, 2011, respectively. The Company's estimated marginal tax rate was 36% for the periods presented. |
12
HomeStreet, Inc. and Subsidiaries
Average Balances, Yields and Rates Paid (Taxable-equivalent basis) (continued)
Nine Months Ended Sept. 30, | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets (1): | ||||||||||||||||||||||
Cash & cash equivalents | $ | 116,789 | $ | 208 | 0.24 | % | $ | 151,763 | $ | 265 | 0.23 | % | ||||||||||
Investment securities | 408,320 | 8,383 | 2.74 | % | 295,988 | 5,215 | 2.35 | % | ||||||||||||||
Loans held for sale | 309,675 | 8,289 | 3.57 | % | 109,896 | 3,566 | 4.33 | % | ||||||||||||||
Loans held for investment | 1,304,526 | 43,906 | 4.49 | % | 1,509,296 | 50,756 | 4.49 | % | ||||||||||||||
Total interest-earning assets | 2,139,310 | 60,786 | 3.79 | % | 2,066,943 | 59,802 | 3.86 | % | ||||||||||||||
Noninterest-earning assets (2) | 223,816 | 241,181 | ||||||||||||||||||||
Total assets | $ | 2,363,126 | $ | 2,308,124 | ||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand accounts | $ | 148,288 | 368 | 0.33 | % | $ | 126,769 | 458 | 0.48 | % | ||||||||||||
Savings accounts | 85,376 | 290 | 0.45 | % | 55,367 | 257 | 0.62 | % | ||||||||||||||
Money market accounts | 592,195 | 2,390 | 0.54 | % | 438,922 | 2,297 | 0.70 | % | ||||||||||||||
Certificate accounts | 831,015 | 9,937 | 1.60 | % | 1,216,650 | 16,415 | 1.80 | % | ||||||||||||||
Total interest-bearing deposits | 1,656,874 | 12,985 | 1.05 | % | 1,837,708 | 19,427 | 1.41 | % | ||||||||||||||
FHLB advances | 83,523 | 1,506 | 2.40 | % | 105,410 | 3,122 | 3.95 | % | ||||||||||||||
Securities sold under agreements to repurchase | 23,597 | 69 | 0.39 | % | — | — | — | % | ||||||||||||||
Long-term debt | 61,857 | 1,041 | 2.24 | % | 62,725 | 1,586 | 3.37 | % | ||||||||||||||
Other borrowings | — | 12 | — | % | — | 1 | — | % | ||||||||||||||
Total interest-bearing liabilities | 1,825,851 | 15,613 | 1.14 | % | 2,005,843 | 24,136 | 1.61 | % | ||||||||||||||
Other noninterest-bearing liabilities | 344,497 | 239,323 | ||||||||||||||||||||
Total liabilities | 2,170,348 | 2,245,166 | ||||||||||||||||||||
Shareholders’ equity | 192,778 | 62,958 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,363,126 | $ | 2,308,124 | ||||||||||||||||||
Net interest income (3) | $ | 45,173 | $ | 35,666 | ||||||||||||||||||
Net interest spread | 2.65 | % | 2.25 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.17 | % | 0.05 | % | ||||||||||||||||||
Net interest margin | 2.82 | % | 2.30 | % |
(1) | The average balances of nonaccrual assets and related income, if any, are included in their respective categories. |
(2) | Includes loan balances that have been foreclosed and are now reclassified to other real estate owned. |
(3) | Includes taxable-equivalent adjustments, which is a non-GAAP measure, primarily related to tax-exempt income on certain loans and securities of $1.3 million for the nine months ended September 30, 2012 and $192 thousand for the nine months ended September 30, 2011, respectively. The Company's estimated marginal tax rate was 36% for the periods presented. |
13
HomeStreet, Inc. and Subsidiaries
Five Quarter Investment Securities Available for Sale
(in thousands, except for duration data) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Mortgage backed: | ||||||||||||||||||||
Residential | $ | 63,365 | $ | 48,136 | $ | 40,575 | $ | — | $ | — | ||||||||||
Commercial | 14,532 | 14,602 | 14,410 | 14,483 | 8,393 | |||||||||||||||
Municipal bonds | 128,595 | 126,681 | 79,051 | 49,584 | 1,059 | |||||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||||||
Residential | 167,513 | 185,970 | 245,889 | 223,390 | 251,856 | |||||||||||||||
Commercial | 9,110 | 9,165 | 10,019 | 10,070 | 10,174 | |||||||||||||||
Agency | — | — | 25,007 | — | — | |||||||||||||||
US Treasury | 30,935 | 31,056 | 31,247 | 31,520 | 67,971 | |||||||||||||||
$ | 414,050 | $ | 415,610 | $ | 446,198 | $ | 329,047 | $ | 339,453 | |||||||||||
Weighted average duration in years | 5.0 | 5.1 | 5.1 | 4.4 | 3.9 |
Five Quarter Loans Held for Investment
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family residential | $ | 602,164 | $ | 537,174 | $ | 506,103 | $ | 496,934 | $ | 496,741 | ||||||||||
Home equity | 141,343 | 147,587 | 152,924 | 158,936 | 167,453 | |||||||||||||||
743,507 | 684,761 | 659,027 | 655,870 | 664,194 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 360,919 | 370,064 | 391,727 | 402,139 | 407,891 | |||||||||||||||
Multifamily residential | 36,912 | 47,069 | 56,328 | 56,379 | 58,972 | |||||||||||||||
Construction/land development | 77,912 | 83,797 | 158,552 | 173,405 | 213,001 | |||||||||||||||
Commercial business | 80,056 | 79,980 | 68,932 | 59,831 | 73,559 | |||||||||||||||
555,799 | 580,910 | 675,539 | 691,754 | 753,423 | ||||||||||||||||
1,299,306 | 1,265,671 | 1,334,566 | 1,347,624 | 1,417,617 | ||||||||||||||||
Net deferred loan fees and discounts | (3,142 | ) | (3,508 | ) | (3,891 | ) | (4,062 | ) | (4,231 | ) | ||||||||||
1,296,164 | 1,262,163 | 1,330,675 | 1,343,562 | 1,413,386 | ||||||||||||||||
Allowance for loan losses | (27,461 | ) | (26,910 | ) | (35,204 | ) | (42,689 | ) | (53,167 | ) | ||||||||||
$ | 1,268,703 | $ | 1,235,253 | $ | 1,295,471 | $ | 1,300,873 | $ | 1,360,219 | |||||||||||
Allowance as a % of loans held for investment | 2.12 | % | 2.13 | % | 2.64 | % | 3.18 | % | 3.76 | % | ||||||||||
Allowance as a % of nonaccrual loans | 71.80 | % | 81.28 | % | 46.58 | % | 55.81 | % | 55.91 | % |
14
HomeStreet, Inc. and Subsidiaries
Five Quarter Credit Quality Activity
Allowance for Credit Losses (roll-forward)
Quarter ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Allowance for Credit Losses (roll-forward): | ||||||||||||||||||||
Beginning balance | $ | 27,125 | $ | 35,402 | $ | 42,800 | $ | 53,386 | $ | 60,059 | ||||||||||
Provision for credit losses | 5,500 | 2,000 | — | — | 1,000 | |||||||||||||||
(Charge-offs), net of recoveries | (4,998 | ) | (10,277 | ) | (7,398 | ) | (10,586 | ) | (7,673 | ) | ||||||||||
Ending balance | $ | 27,627 | $ | 27,125 | $ | 35,402 | $ | 42,800 | $ | 53,386 |
Nonperforming assets (NPAs) roll-forward
Quarter ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Beginning balance | $ | 73,725 | $ | 107,215 | $ | 115,056 | $ | 159,462 | $ | 193,609 | ||||||||||
Additions | 20,703 | 13,208 | 18,776 | 7,251 | 20,900 | |||||||||||||||
Reductions: | ||||||||||||||||||||
Charge-offs | (4,441 | ) | (10,277 | ) | (7,398 | ) | (10,586 | ) | (7,673 | ) | ||||||||||
OREO sales | (25,946 | ) | (9,804 | ) | (8,878 | ) | (26,037 | ) | (33,814 | ) | ||||||||||
OREO writedowns | (2,623 | ) | (5,578 | ) | (2,754 | ) | (3,564 | ) | (8,217 | ) | ||||||||||
Principal paydown, payoff advances | (4,794 | ) | (12,037 | ) | (1,321 | ) | (3,871 | ) | (2,437 | ) | ||||||||||
Transferred back to accrual status | (1,374 | ) | (9,002 | ) | (6,266 | ) | (7,599 | ) | (2,906 | ) | ||||||||||
Total reductions | (39,178 | ) | (46,698 | ) | (26,617 | ) | (51,657 | ) | (55,047 | ) | ||||||||||
Net additions/(reductions) | (18,475 | ) | (33,490 | ) | (7,841 | ) | (44,406 | ) | (34,147 | ) | ||||||||||
Ending balance | $ | 55,250 | $ | 73,725 | $ | 107,215 | $ | 115,056 | $ | 159,462 |
15
HomeStreet, Inc. and Subsidiaries
Five Quarter Nonperforming Assets by Loan Class
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family residential | $ | 12,900 | $ | 7,530 | $ | 14,290 | $ | 12,104 | $ | 15,469 | ||||||||||
Home equity | 1,024 | 1,910 | 1,853 | 2,464 | 2,772 | |||||||||||||||
13,924 | 9,440 | 16,143 | 14,568 | 18,241 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 16,186 | 14,265 | 9,222 | 10,184 | 10,959 | |||||||||||||||
Multifamily residential | — | — | — | 2,394 | 5,196 | |||||||||||||||
Construction/land development | 5,848 | 9,373 | 49,708 | 48,387 | 58,705 | |||||||||||||||
Commercial business | 2,289 | 29 | 502 | 951 | 1,993 | |||||||||||||||
24,323 | 23,667 | 59,432 | 61,916 | 76,853 | ||||||||||||||||
Total nonaccrual loans | $ | 38,247 | $ | 33,107 | $ | 75,575 | $ | 76,484 | $ | 95,094 | ||||||||||
Nonaccrual loans to total loans | 2.94 | % | 2.62 | % | 5.66 | % | 5.69 | % | 6.73 | % | ||||||||||
Other real estate owned: | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family residential | $ | 2,787 | $ | 3,142 | $ | 3,243 | $ | 6,600 | $ | 10,419 | ||||||||||
2,787 | 3,142 | 3,243 | 6,600 | 10,419 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 3,489 | 3,184 | 284 | 2,055 | 2,152 | |||||||||||||||
Construction/land development | 10,727 | 34,292 | 28,113 | 29,917 | 51,797 | |||||||||||||||
14,216 | 37,476 | 28,397 | 31,972 | 53,949 | ||||||||||||||||
Total other real estate owned | $ | 17,003 | $ | 40,618 | $ | 31,640 | $ | 38,572 | $ | 64,368 | ||||||||||
Nonperforming assets: | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family residential | $ | 15,687 | $ | 10,672 | $ | 17,533 | $ | 18,704 | $ | 25,888 | ||||||||||
Home equity | 1,024 | 1,910 | 1,853 | 2,464 | 2,772 | |||||||||||||||
16,711 | 12,582 | 19,386 | 21,168 | 28,660 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 19,675 | 17,449 | 9,506 | 12,239 | 13,111 | |||||||||||||||
Multifamily residential | — | — | — | 2,394 | 5,196 | |||||||||||||||
Construction/land development | 16,575 | 43,665 | 77,821 | 78,304 | 110,502 | |||||||||||||||
Commercial business | 2,289 | 29 | 502 | 951 | 1,993 | |||||||||||||||
38,539 | 61,143 | 87,829 | 93,888 | 130,802 | ||||||||||||||||
Total nonperforming assets | $ | 55,250 | $ | 73,725 | $ | 107,215 | $ | 115,056 | $ | 159,462 | ||||||||||
Nonperforming assets to total assets | 2.20 | % | 3.04 | % | 4.53 | % | 5.08 | % | 6.88 | % |
16
HomeStreet, Inc. and Subsidiaries
Delinquencies by Loan Class
(in thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due (1) | Total past due | Current | Total loans | ||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||
Single family residential (1) | $ | 9,658 | $ | 10,374 | $ | 48,048 | $ | 68,080 | $ | 534,084 | $ | 602,164 | ||||||||||||
Home equity | 929 | 1,389 | 1,024 | 3,342 | 138,001 | 141,343 | ||||||||||||||||||
10,587 | 11,763 | 49,072 | 71,422 | 672,085 | 743,507 | |||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||
Commercial real estate | — | — | 16,186 | 16,186 | 344,733 | 360,919 | ||||||||||||||||||
Multifamily residential | — | — | — | — | 36,912 | 36,912 | ||||||||||||||||||
Construction/land development | — | — | 5,848 | 5,848 | 72,064 | 77,912 | ||||||||||||||||||
Commercial business | — | — | 2,289 | 2,289 | 77,767 | 80,056 | ||||||||||||||||||
— | — | 24,323 | 24,323 | 531,476 | 555,799 | |||||||||||||||||||
$ | 10,587 | $ | 11,763 | $ | 73,395 | $ | 95,745 | $ | 1,203,561 | $ | 1,299,306 | |||||||||||||
As a % of total loans | 0.81 | % | 0.91 | % | 5.65 | % | 7.37 | % | 92.63 | % | 100.00 | % | ||||||||||||
December 31, 2011 | ||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||
Single family residential (1) | $ | 7,694 | $ | 8,552 | $ | 47,861 | $ | 64,107 | $ | 432,827 | $ | 496,934 | ||||||||||||
Home equity | 957 | 500 | 2,464 | 3,921 | 155,015 | 158,936 | ||||||||||||||||||
8,651 | 9,052 | 50,325 | 68,028 | 587,842 | 655,870 | |||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||
Commercial real estate | — | — | 10,184 | 10,184 | 391,955 | 402,139 | ||||||||||||||||||
Multifamily residential | — | — | 2,394 | 2,394 | 53,985 | 56,379 | ||||||||||||||||||
Construction/land development | 9,916 | — | 48,387 | 58,303 | 115,102 | 173,405 | ||||||||||||||||||
Commercial business | — | — | 951 | 951 | 58,880 | 59,831 | ||||||||||||||||||
9,916 | — | 61,916 | 71,832 | 619,922 | 691,754 | |||||||||||||||||||
$ | 18,567 | $ | 9,052 | $ | 112,241 | $ | 139,860 | $ | 1,207,764 | $ | 1,347,624 | |||||||||||||
As a % of total loans | 1.38 | % | 0.67 | % | 8.33 | % | 10.38 | % | 89.62 | % | 100.00 | % |
(1) | Includes $35.1 million and $35.8 million of single family residential loans past due and still accruing at September 30, 2012 and December 31, 2011 respectively, whose repayments are insured by the FHA or guaranteed by the VA. |
17
HomeStreet, Inc. and Subsidiaries
Troubled Debt Restructurings (TDRs)
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family residential | $ | 64,785 | $ | 65,699 | $ | 65,078 | $ | 56,581 | $ | 42,315 | ||||||||||
Home equity | 2,769 | 2,769 | 2,492 | 2,475 | 2,319 | |||||||||||||||
67,554 | 68,468 | 67,570 | 59,056 | 44,634 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 24,256 | 25,576 | 25,778 | 25,040 | 25,090 | |||||||||||||||
Multifamily residential | 5,521 | 5,529 | 6,045 | 6,053 | 5,563 | |||||||||||||||
Construction/land development | 19,647 | 17,245 | 25,907 | 27,432 | 18,237 | |||||||||||||||
Commercial business | 176 | 191 | 647 | 878 | 943 | |||||||||||||||
49,600 | 48,541 | 58,377 | 59,403 | 49,833 | ||||||||||||||||
Total TDRs | $ | 117,154 | $ | 117,009 | $ | 125,947 | $ | 118,459 | $ | 94,467 |
18
HomeStreet, Inc. and Subsidiaries
Five Quarter Mortgage Banking Operations
Mortgage Servicing Income
Quarter ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Servicing income, net: | ||||||||||||||||||||
Servicing fees and other | $ | 7,168 | $ | 6,705 | $ | 6,436 | $ | 6,518 | $ | 6,793 | ||||||||||
Changes in fair value of single family MSRs due to modeled amortization (1) | (5,360 | ) | (4,052 | ) | (4,969 | ) | (4,176 | ) | (4,155 | ) | ||||||||||
Amortization of multifamily MSRs | (598 | ) | (462 | ) | (491 | ) | (366 | ) | (455 | ) | ||||||||||
1,210 | 2,191 | 976 | 1,976 | 2,183 | ||||||||||||||||
Risk management, single family MSRs: | ||||||||||||||||||||
Changes in fair value of MSR due to changes in model inputs and/or assumptions (2) | (5,565 | ) | (15,354 | ) | 7,411 | (3,910 | ) | (21,986 | ) | |||||||||||
Net gain (loss) from derivatives economically hedging MSR | 4,861 | 20,254 | (514 | ) | 7,897 | 38,335 | ||||||||||||||
(704 | ) | 4,900 | 6,897 | 3,987 | 16,349 | |||||||||||||||
Mortgage servicing income | $ | 506 | $ | 7,091 | $ | 7,873 | $ | 5,963 | $ | 18,532 |
(1) | Represents changes due to collection/realization of expected cash flows and curtailments over time. |
(2) | Principally reflects changes in model assumptions and prepayment speed assumptions, which are primarily affected by changes in interest rates. |
Loans Serviced for Others
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Single family residential | ||||||||||||||||||||
U.S. government agency MBS | $ | 7,724,562 | $ | 7,061,232 | $ | 6,530,578 | $ | 6,464,815 | $ | 6,217,086 | ||||||||||
Other | 385,107 | 407,750 | 416,700 | 420,470 | 432,460 | |||||||||||||||
8,109,669 | 7,468,982 | 6,947,278 | 6,885,285 | 6,649,546 | ||||||||||||||||
Commercial | ||||||||||||||||||||
Multifamily | 760,820 | 772,473 | 766,433 | 758,535 | 770,401 | |||||||||||||||
Other | 53,617 | 56,840 | 59,370 | 56,785 | 57,151 | |||||||||||||||
814,437 | 829,313 | 825,803 | 815,320 | 827,552 | ||||||||||||||||
Total loans serviced for others | $ | 8,924,106 | $ | 8,298,295 | $ | 7,773,081 | $ | 7,700,605 | $ | 7,477,098 |
19
HomeStreet, Inc. and Subsidiaries
Five Quarter Mortgage Banking Operations (continued)
Single Family Capitalized Mortgage Servicing Rights
Quarter ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Beginning balance | $ | 70,585 | $ | 79,381 | $ | 70,169 | $ | 67,471 | $ | 87,712 | ||||||||||
Originations | 14,121 | 10,598 | 6,723 | 10,759 | 5,873 | |||||||||||||||
Purchases | 6 | 12 | 47 | 25 | 27 | |||||||||||||||
Changes due to modeled amortization (1) | (5,360 | ) | (4,052 | ) | (4,969 | ) | (4,176 | ) | (4,155 | ) | ||||||||||
Net additions and amortization | 8,767 | 6,558 | 1,801 | 6,608 | 1,745 | |||||||||||||||
Changes in fair value due to changes in model inputs and/or assumptions (2) | (5,565 | ) | (15,354 | ) | 7,411 | (3,910 | ) | (21,986 | ) | |||||||||||
Ending balance | $ | 73,787 | $ | 70,585 | $ | 79,381 | $ | 70,169 | $ | 67,471 | ||||||||||
Ratio of MSR carrying value to related loans serviced for others | 0.91 | % | 0.95 | % | 1.14 | % | 1.02 | % | 1.01 | % | ||||||||||
MSR servicing fee multiple (3) | 2.81 | 2.82 | 3.30 | 2.91 | 2.92 | |||||||||||||||
Weighted-average note rate (loans serviced for others) | 4.52 | % | 4.69 | % | 4.83 | % | 4.93 | % | 5.04 | % | ||||||||||
Weighted-average servicing fee (loans serviced for others) | 0.33 | % | 0.34 | % | 0.35 | % | 0.35 | % | 0.35 | % |
(1) | Represents changes due to collection/realization of expected future cash flows over time. |
(2) | Principally reflects changes in model assumptions and prepayment speed assumptions, which are primarily affected by changes in interest rates. |
(3) | Represents the ratio of MSR carrying value to related loans serviced for others divided by the weighted-average servicing fee for loans serviced for others. |
Commercial Multifamily Capitalized Mortgage Servicing Rights
Quarter ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Beginning balance | $ | 7,655 | $ | 7,420 | $ | 7,112 | $ | 6,612 | $ | 6,608 | ||||||||||
Originations | 668 | 697 | 799 | 866 | 459 | |||||||||||||||
Amortization | (598 | ) | (462 | ) | (491 | ) | (366 | ) | (455 | ) | ||||||||||
Ending balance | $ | 7,725 | $ | 7,655 | $ | 7,420 | $ | 7,112 | $ | 6,612 | ||||||||||
Ratio of MSR carrying value to related loans serviced for others | 0.95 | % | 0.92 | % | 0.90 | % | 0.87 | % | 0.80 | % | ||||||||||
MSR servicing fee multiple (1) | 2.47 | 2.45 | 2.41 | 2.42 | 2.27 | |||||||||||||||
Weighted-average note rate (loans serviced for others) | 5.48 | % | 5.54 | % | 5.60 | % | 5.67 | % | 5.74 | % | ||||||||||
Weighted-average servicing fee (loans serviced for others) | 0.38 | % | 0.38 | % | 0.37 | % | 0.36 | % | 0.35 | % |
(1) | Represents the ratio of MSR carrying value to related loans serviced for others divided by the weighted-average servicing fee for loans serviced for others. |
20
HomeStreet, Inc. and Subsidiaries
Five Quarter Mortgage Banking Operations (continued)
Mortgage Banking Activity
Quarter ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Production volumes: | ||||||||||||||||||||
Single family mortgage closed loan volume (1) | $ | 1,368,238 | $ | 1,068,656 | $ | 712,302 | $ | 624,111 | $ | 478,024 | ||||||||||
Single family mortgage interest rate lock commitments | 1,313,182 | 1,303,390 | 915,141 | 543,164 | 630,919 | |||||||||||||||
Single family mortgage loans sold | 1,238,879 | 962,704 | 534,310 | 710,706 | 370,250 | |||||||||||||||
Multifamily mortgage originations | $ | 20,209 | $ | 35,908 | $ | 15,713 | $ | 49,071 | $ | 26,125 | ||||||||||
Multifamily mortgage loans sold | 26,515 | 27,178 | 31,423 | 33,461 | 25,144 | |||||||||||||||
Net gain on mortgage loan origination and sale activities: | ||||||||||||||||||||
Single family: | ||||||||||||||||||||
Secondary marketing gains | $ | 41,178 | $ | 28,709 | $ | 16,071 | $ | 2,587 | $ | 6,374 | ||||||||||
Provision for repurchase losses | (526 | ) | (1,930 | ) | (390 | ) | (12 | ) | (289 | ) | ||||||||||
Net gain from secondary marketing activities | 40,652 | 26,779 | 15,681 | 2,575 | 6,085 | |||||||||||||||
Mortgage servicing rights originated | 14,121 | 10,598 | 6,723 | 10,758 | 5,872 | |||||||||||||||
Loan origination and funding fees | 8,577 | 7,070 | 4,944 | 4,401 | 3,309 | |||||||||||||||
Total single family | 63,350 | 44,447 | 27,348 | 17,734 | 15,266 | |||||||||||||||
Multifamily | 1,040 | 1,039 | 1,162 | 1,185 | 500 | |||||||||||||||
Total net gain on mortgage loan origination and sale activities | $ | 64,390 | $ | 45,486 | $ | 28,510 | $ | 18,919 | $ | 15,766 | ||||||||||
Ratio of single family mortgage servicing rights originated to related loans sold | 1.14 | % | 1.10 | % | 1.26 | % | 1.51 | % | 1.59 | % |
(1) | Represents single family mortgage production volume designated for sale during each respective period. |
21
HomeStreet, Inc. and Subsidiaries
Five Quarter Deposits
(in thousands) | Sept. 30, 2012 | June 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sept. 30, 2011 | |||||||||||||||
Deposits by Product: | ||||||||||||||||||||
Noninterest bearing accounts - checking and savings | $ | 77,149 | $ | 64,404 | $ | 68,245 | $ | 69,276 | $ | 58,570 | ||||||||||
Interest bearing transaction and savings deposits: | ||||||||||||||||||||
NOW accounts | 172,086 | 170,098 | 154,670 | 138,936 | 145,668 | |||||||||||||||
Statement savings accounts due on demand | 104,239 | 88,104 | 79,438 | 66,898 | 59,974 | |||||||||||||||
Money market accounts due on demand | 675,363 | 630,798 | 559,563 | 499,457 | 469,289 | |||||||||||||||
Total interest bearing transaction and savings deposits | 951,688 | 889,000 | 793,671 | 705,291 | 674,931 | |||||||||||||||
Total transaction and savings deposits | 1,028,837 | 953,404 | 861,916 | 774,567 | 733,501 | |||||||||||||||
Certificates of deposit | 684,604 | 755,646 | 890,694 | 1,033,798 | 1,094,184 | |||||||||||||||
Noninterest bearing accounts - other | 268,373 | 195,699 | 248,023 | 201,390 | 229,292 | |||||||||||||||
Total deposits | $ | 1,981,814 | $ | 1,904,749 | $ | 2,000,633 | $ | 2,009,755 | $ | 2,056,977 | ||||||||||
Percent of total deposits: | ||||||||||||||||||||
Noninterest bearing accounts - checking and savings | 3.9 | % | 3.4 | % | 3.4 | % | 3.4 | % | 2.8 | % | ||||||||||
Interest bearing transaction and savings deposits: | ||||||||||||||||||||
NOW accounts | 8.7 | % | 8.9 | % | 7.7 | % | 6.9 | % | 7.1 | % | ||||||||||
Statement savings accounts due on demand | 5.3 | % | 4.6 | % | 4.0 | % | 3.3 | % | 2.9 | % | ||||||||||
Money market accounts due on demand | 34.1 | % | 33.1 | % | 28.0 | % | 24.9 | % | 22.8 | % | ||||||||||
Total interest bearing transaction and savings deposits | 48.1 | % | 46.6 | % | 39.7 | % | 35.1 | % | 32.8 | % | ||||||||||
Total transaction and savings deposits | 52.0 | % | 50.0 | % | 43.1 | % | 38.5 | % | 35.6 | % | ||||||||||
Certificates of deposit | 34.5 | % | 39.7 | % | 44.5 | % | 51.4 | % | 53.2 | % | ||||||||||
Noninterest bearing accounts - other | 13.5 | % | 10.3 | % | 12.4 | % | 10.1 | % | 11.2 | % | ||||||||||
Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
22