HMST - Earnings call transcript Q2 2022

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Operator

Good afternoon. Thank you for attending today's Second Quarter Earnings Release Call for HomeStreet Bank.

Joining us on this call is Mark Mason, CEO, President and Chairman of the Board. [Operator Instructions] I would now like to pass the conference over to our host, Mark Mason. Please go ahead.

Mark Mason

for for you quarter XXXX thank Call. earnings and joining our us second Hello,

I'd remind the were like detailed begin, website yesterday. we Before to on available the and SEC Form our accompanying Events And the are earnings ir.homestreet.com you an investor and with presentation under filed at on X-K News release our that link.

our the Please a deck the this make are statements call the available in disclosed expectations during at results. other made financial of These risk statements note public will and call. performance the our will our transcript same that today, a recording filings. following certain to In investor that addition, statements harbor current safe forward-looking address earnings we reflect and about subject yesterday's call that company's views included factors are and be in predictive our and likely our release,

to Additionally, can referred reconciliations website. call in on available investor to found earnings our today be non-GAAP release deck and measures on our our

me operations forward. Financial update Michel. our discuss of will briefly give outlook our and Officer, financial like on is Chief results, Joining John our an then results John John? I'd our going and today to

John Michel

as equity quarter share and $X.XX In XXXX. of to Thank our or second on share first quarter joining net or second net million million thank you, of the annualized income $XX XX.X%. per income morning, compared XXXX, average Mark. us. return quarter Good everyone, the tangible per $X.XX XXXX, for of you In the in was was our of $XX.X

due and XX% the the investment XX.X%. Difficulty] on high of of interest-earning The increase average originations XXXX of was assets due loan level to in points, our ratio second efficiency was quarter. a purchases return [Technical balance assets increase during Our and in securities assets. interest-earning to the average was XX annualized basis

in on increase point liabilities. first XX was significant due XX in earning the of interest the on of interest at rates in the margin by cost interest X.XX% during XXXX. liabilities, stayed increase basis yields net the The as assets and constant increase increases interest was point the interest-bearing interest-earning paid Our a in a rates primarily offset yield half interest-bearing on market borrowings to assets basis

resulting Our was rate for effective portfolio, second rate while XXXX XXXX quarterly the the benefits is losses tax tax required any second during ACL expected credit quarter significant remainder growth of favorable for XX.X%. in be loan the our quarter offset of the as XX%, to provision from of effective our of continuing recorded the for loan the was performance No our portfolio.

by in expense Our the and interest quarter to quarter noninterest of the were the were as sales year, rate second litigation in Higher the nonrecurring second quarter of The level the vacation margins information such $X.X of decrease total lower higher matters to seasonality the as turn employer in lock as first a first increasing million result first XXXX ratio points. compensation costs to will XXXX of decrease and of of first quarter and $X.X a implemention income costs in compared as accruals, of XXXX new lower to a legal and quarter of million the of in the assets second XXXX cost due The million and the decrease in noninterest of costs deferred basis improved in the I the originations to resulting XXXX. from gain decrease origination Mark. due the $X.X expended certain benefit now assets services are second systems on activities costs to in XXX(k) due of the costs primarily loan quarter. the quarter in to which to compared was nonperforming call XX to due employee legal single-family over significantly due the quarter was volume and taxes, benefit to rates. activities primarily of to effects in higher due match

Mark Mason

to Both by John. In loan in of you, grew in as our loan of the the part due growth quarter, we all commercial Thank take second Freddie in and and was to insurance their unannualized, related lower were companies a This At more to approximately million disruptions result to customers opted our Mae new growth multifamily due we loans. market. types. that's that who or and we XX%, to loan ordinarily lending banks loans portfolio HomeStreet, record $XXX for $XXX might XX% estate originated real and ability advantage originations Mac. Fannie loans costs million funding have meaningfully agency competitive estimate on of

expectations that this that for for the customer later in more suspect interest serving periods increasing future and we year. become may While be demand forward to rates evident may pull

Our expect rate. loan a we our to growing portfolio albeit the strong, continue in remain at quarter, loan pipelines and lower third

efficiency the the anticipate sales origination the portfolio our reduce we multifamily improve of quarter first future noninterest $X.X million we resumption year, to have with loans, whereas a resume such activity, and by sales to second until X activity not very this total years. fact, to previously from Even of In exceptionally due expected our we expenses experienced strong in were we basis had ratio points. our now quarter over robust able origination by

anticipate to second the a approximately impact our and mid-XX% in existing of levels infrastructure, in increases course, to of low As efficiency the half XXXX. range in for and ability added our basis of income, we leverage interest this expense ratio year-to-date our have related for X XX% ratio. growth portfolio to our our These points year, the efficiency levels of include then mortgage to result single-family overall operations, banking the the which net improving loan operating continue

last slower revenues. prepayments, income as and consistent growth of interest and strong net meaningfully component going expected originations, loan grow be a to mentioned more larger our a and our loan and our retention of focus is result portfolio I forward on quarter, As a

Recession we While all expected real our for in our credit the are severity any from and our our mentioned further you I years cycle. estate as The of change our second a call my John XX current event may profitable the old years to as from roughly just institution same I it be in management business for respect loan multifamily, driver to mentioned were portfolio the banking our cycle. benefits again next ago, is in new near-term credit loan HomeStreet's expect growth. credit growing commercial the our analysts, the units, last credit suspect in used its from that of quarter. to Great how for the profile, relay a ago. performance couldn't quality HomeStreet be portfolio to team once to be originations, long of principal confidence ACL, bank profile today. which quarterly not to caution that our radically the was additions credit is HomeStreet year related as want arrived earlier, of the coming we in many is our potential ad And I XX to it with primarily and strong reorganize growth relates of continued the investors offset there the old this to all positioned of industry the after the and it growing not this And and resulted portfolio. some potential HomeStreet. the into relates to growth required recapitalize We

prior raw than development. our the significantly Our Great loan was and today land construction X/X portfolio half composition in was then, and is that approximately Recession. of land in Back to different residential portfolio of

any still builders loans of today, build on will land loans for today. about only vertical land residential lots. primarily not And make construction we these construction lending While the is and houses sell is are it who portfolio the land our X% and

than loans. underwriting we projects, equity our global hard residential in require and leverage liquidity construction covenants very we Recession. Additionally, Today, different pre-Great these in the of and have is

development is our well major are our Western in the one of United with concentration we XX multifamily, XX long States underwriting, historically. duration. development is in only finance one construction diversified We Today, in of the Beyond timelines to highest types learned risks that ago long portfolio that lowest lending. loan months the risk

credit with very expected both cycle. the we the conservatively extremely a when and quality. to loss perform our low face underwritten and portfolio expect relative next is well remain confident HomeStreet's credit I potential, peers, and if we overall Our to very of industry

total historic rates, during revenues With mortgage the expected, to comprised interest only continued anticipated result would in we decline more in revenues in loan rise X% quarter and mortgage second a doubling as was increase period, the as market period. our of decline continued the short single-family the banking be in mortgage than almost interest in The significant volume a such of quarter. rates a

level sale totaling the increased portfolio originated and an of the rate loans origination million While of of XX%. loans increased single-family the $XXX related the portfolio quarter decreased, second at HELOC and for in annualized

will take with costs reduce levels We to this in have continue today. commensurate activity loan and to the area steps be to

year-over-year, ratio. single-family our loan mortgage approximately and reduced origination by production we operations staff same down about is fact, XX% have In the our

of caused of Our single-family decision to year this combined been. earnings it the our loans, be level than for have our first with environment multifamily the in all of permanent would half in portfolio, challenging to retain production more lower mortgage our otherwise

that's our existing revenues, for its portfolio sales U.S. sales for on expectation, much forward, spite and our to income, larger loan our earlier permanent due and to interest multifamily lot. and but going expense of mortgage loan in net and pressure Mae activity a higher single-family resumption volumes portfolio Now of production potential base, associated our ability lever continued noninterest Fannie our and expectation our

and earnings We year expect this meaningful share remainder for to produce next. of per the growth

targeting are assets tangible average we of mid-teens tangible return We outperformance of tangible targeting efficient and return In strategy earnings year, equity. on average year-to-date going return XXXX, and on we are average equity anticipate teens returns capital in improving the a operating and in management. for and and return half X.XX% strong excess excess a of that on on now foundation strong better better growth, the assets growing power in by equity. high credit average assets and increased X.X% second efficiency quality forward. or and a this Our continued has in on a In continuing driven regard, built

equity. anticipate improvement tangible returns XXXX, in on continuing assets average our we on Beyond

in increase result You'll and single-family our a mortgage notice Federal faster that more result also loan rates interest a we prior our the on rates. Reserve than by in return slightly a This the production is in increases of as revenue the of and originally mortgage faster-than-expected decline from anticipated guidance. have reduced significant asset goals related

of the also business the Washington States. our branches larger branch are sale targets markets retail Of or the current strategy. Western updated our on other of in course, The the rising of impact these imply economic success of on views in metropolitan rates interest United in continue the and strategy of target negatively meaningful to allows or events continue I assume focus in yield Eastern at comment sale earnings a per share. generally the to to factors, increases foregoing close changes regulations This law could potential HomeStreet environment, the scheduled to our on to want absence which end in returns and curve stable July. consensus that

I of well returns. $X sale. the are analyst production shareholders We expecting excess outsized community future efficiency on million realize appreciate loan currently the in the our will as earnings, impact the to and performance gain on as hope and a current

of and and reduced strong with substantially replace interest have the net it We income. growing single-family earnings mortgage to our contribution portfolio banking

portfolio are which lower reliable earnings more credit going durable with growing much We forward. provide our generally loans, risk high-quality, for and should

be result processes, returning improvements and through operating sizable provided shareholders to in and and giving support us excess repurchases. this history. in revenue you to have significant actions confident to for and prepared We remain growing These concludes higher have very leverage your you to our to this compared time. profitability our John used capital would our sheet business future meaningful attention. efficiency levels with Thank ability achieve and our our for I that, questions execute including today. much our growth capital our made operations share should at strategy expected goals consistently We With answer any Operator? growth. while wisely, comments dividends appropriate of when We've balance our happy our valuation.

Operator

Our Instructions] line comes [Operator the with question Clark of first Piper from Matthew Sandler.

Matthew Clark

and takes outlook. want the puts to I wanted to of on start start the -- NIM on just

on rate at as spot well? the in what deposits had was you average monthly and end the If the of June June margin

Mark Mason

separately margins. disclose monthly individual don't we First,

be that is we rates, durations with schedule available our of one not with peers. done you website. we -- is it share have I is will promotion $XX million raised, deposits The X We've of raise the Our don't begun deposit generally borrowings have expecting are mitigate at And on consistent help we changed our this the which amount $XX the I to base promotion our start. rate of certificates thing deposit. X quarter. should of promotional this durations of million, meaningful know, larger some to use in

Matthew Clark

rate the now? And on that Okay. right offering promotional what's

Mark Mason

you I expect a current give I'll raise we're though. to it. rate, going

for basis months. points current is rate XX X So XXX basis the XXX for points and months

haven't expect each we those concluded but expecting to XX-month are to meaningfully. add up, well. promotional yet, would We CD fairly I go of rates as And a

the money than those somewhat at higher for you or CDs accounts, rate higher If look promotional it's numbers. marketplace market

currently we're increases. considering So

Matthew Clark

on you and And you new do -- us Okay. the borrowings give borrowings? on rate you added, those the could duration

John Michel

borrowings the overnight that It's roughly about is we X%, do current rate XXX. and

Matthew Clark

then kind you just ratcheted able I for previously, think Okay. you of expense talked you're the run rate to a stable you reduce gears I Obviously, decline nice that shifting do of run permanently sense kind that there. run a down. to outlook. rate? what know to rate, about Can give us And

Mark Mason

always of attrition course. personnel. continues charged possible, whole looking those it's Well, not be to into for things. integrate of couple a the existing One, when team we That's responsibilities ways experience to with

to we some operations small Additionally, has And to restructure renegotiate contracts, that benefit. levels, at continue continue right?

We have I -- temporary larger some temporarily is what temporary, positions. of open hope number

Amazon personnel of of runs of service paid -- and So some the peers of in today, fully branch course, to sure branches outside competition are We there's we lower as our staffed fast some I'm the and are for are example, warehouses and not the the physicians, compete every an the same positions. feeling in against positions other company, banking. hardest hire the those food industry. --

but the is of temporary, largest some it's this amount. So not dollar

We take -- higher inflation to attrition -- permanent to have not. inflation say able we have we our gone we're for money. wage costs, to costs are and anticipated. and going to other Not our from save make And been look continue than some that because ways it up up compensation that are immune

been material. Just too that number has not yet

Matthew Clark

Okay. And then last one for me.

loan million DUS quarter. Just on this the sales, $XX

the expectation I on in be thoughts you'd to particularly updated quarter, I able think to that guess that last and was up, an that year ramp there change given next year. $XXX million outlook the any for rates?

Mark Mason

for asking would Mae disappointed expectation I'm able were program. personally you, not better. improve our question. thanks But I to of do to we that their tell have the Fannie Well, that competitiveness that

I it last early when think quarter. the a I was little made statement

have pipeline they competitive more this the the Mae were competitiveness reality rates companies. even than up. gone a struggling During to have is are And But loans larger primarily this have Fannie than mean, have that quarter, they they had Fannie their Mae and we -- than still improved insurance be competitive on banks year. we of rate. I

improvement other these they income to competitive. parts it's the they senior Freddie been seeking a like way involves green the in competitiveness. expectations. and And continued be were and but again, And I'll populations Fannie production didn't. structured. country of current more the they things attributes metropolitan the are mission, mean challenge, larger to income have Previously, areas, the the quarter, low-to-moderate more with is buildings increased have are this they as expect be major the included. must to production the and primarily low Part that that their that of production midwest But in idea buildings regions some mission-driven various their longer and their much States probably now other There it mission-driven which whether of a have also to of We and maximum additionally in United definition under better have clearly south our of the no in of change XX% I by they're quarter there make end housing housing. realize going apparent, than last in areas. favor the

we're current So the sort to that's out, but condition. that still trying

Operator

line Jeff comes question next with Our Davidson. from of Rulis the D.A.

Jeff Rulis

it, did don't if but missed do have you I you I you that know outlook -- margin a have -- a

Mark Mason

but have In We do a investor what declining believe bullet by it's promotional we decreasing, Excess our and margin. like for -- that the said borrowings I comments helpful. right this. bad -- sorry, and but of current loan funded and on -- it. loan for the back that's of of lot commentary is bad, rates, higher our at to good deck, there's growth good right, rates, Current at volume, is production products promotions

Fed And know, the Our that I beta future to expectation low impact, deposit earlier, But promotional higher to as it expectation decline to mentioned had for balances, core increasing of ultimately, of rate near-term net margin. deposits. betas we products increases, are ratio higher rates. interest hard depends loan income net on the raising interest in at we offset a expect which due

plus might decline. will could how Your in be of your second kind that probably XX half margin And a we in, question this at much year, next the least, mark think of basis interest decline. point

Jeff Rulis

Is income, may too you as to I Got drift, that to mortgage read that stable, you. keep expect you kind where fair? could the mean or the on single-family of flat. much. do multifamily And can sales noninterest But as in that beat alluded that to, to kick kind continue slide stability up we roughly would but of

John Michel

We on the multifamily sales at now of believe kind Yes. increase would it. the Actually, think where upside actually drifting. is the we we're

said on those we upside things. the So that's potential why

we we're kind level have there. levels, and increase, very low single would very looking low multifamily of on the have guidance right a conservative DUS the DUS the levels in in multifamily that but higher of if saying the So at in being now no at we're and and family terms

Mark Mason

stable, We a think to of I of Jeff. it's term. opportunity said but in So near increase guidance, an conservative piece the expectation have we an

were sold through healthy is for sale as We multifamily gain probably. year. loans last the market think not enjoying we quite not quarters. robust X have margins on And We portfolio very

little Fannie on And with conservative. so a same comments. subject instead of be we'll earlier to our And out stepping guidance, my Mae,

Jeff Rulis

Okay. maybe one one. And last

to -- the kind how through lion's of lower? expectations? current the view certainly can you walking Mark, going is share of the the reserve with back Or forward. reserves that appreciate just differences If fast kind when. going to of of growth growth, do the your that continually the that do be view -- in how growth case But to way your on think to I methodology, growth commentary portfolio, how drift with levels reserve multifamily being you is you bulk multifamily continues loan current that on from Just What drift lower? today, forward

Mark Mason

thanks. Well,

You job of going in think from are don't reserve our with minor even changes maybe We composition. situation. the to did drift a some levels good describing here, much lower

from or estate in going for all It's XXX%. multifamily little is lines. than not from rise balanced Our a here across growth of much composition total lower commercial real We're our product looking here. to

a It reflect could isn't be it It generally points such few is, here. But say, for basis large of ACL around generally I to -- lower, a but anyway, basis have we it I our same this level. Creative zero that challenge few I is makes be the our higher, that right, more having that an think answer. would going loss ACL should it that any could thing, So points a historical easy challenging rate, exercise. composition think loans not peers. analysis. a that's our basic multifamily of be mean

Operator

of Our B. next Riley the Securities. Steve question line with from comes Moss

Steve Moss

here. with even if in it quarter, upcoming A growth -- continue for lot quarters. [indiscernible] balance of Just going sheet starting to the this more sheet you balance just growth sounds maybe that's like get the sales

break is thinking the hiking. we -- level? you're how you to Do forward given inverting as about going maybe curious growth? do of the a margin billion is and as pace kind think Fed the here of can the the billion you $XX out stabilize $X curve Just Or

Mark Mason

spend in there's about possible $XX And that, That's lot question, in that basic we time $XX on the is what a bulking a of we billion, to be break range from $XX great the depending of are it's about. a The XXXX. loss It anticipating. revenue of of infrastructure. The billion, growth right? could thinking question year, could one billion rates. of lot earlier year, interchange course, it in facets we be That's currently later up again ramifications to could

Our not potential loss high of interchange that revenue is here.

at think while, last the looked it did. we haven't time I We in a but

John Michel

$X $X.X million? million to

Mark Mason

as billion Yes, on. interchange to to as not system XX% many card year, debit credit just billion over transactions. a a not pretty start were one of $XX the X good expectations card think. addressed actually We're and million, $X.X ago, is have million of risk go might Those about you we question head $X When issuer. management $XX we we large a are were back that growing we a then. The years infrastructure preparing

do. we're doing analysis and prepare But feel order we that off work in to And to for much a our we it. dusting have so don't analysis gap

separate didn't help couldn't question, ask I commenting on that. that You but

Steve Moss

I hear there. you

here, So capital in quarter. growth, this the came meaningfully just they given terms of ratios pretty down

levels of curious maybe Just capital? on a think trying get relative where capital kind to comfort growth your here? to about -- are to Just how

Mark Mason

going are Well, get on these of plan OCI don't obviously temporary, income. all any selling in part We these back right? is to remember tangible we that of to the into that's And OCI-related mean, impact. the have I I mean, amortized capital change securities. write-downs

And OCI said we're more still X OCI that, so rate We securities right? you're in the can capital have And our about have changes, even talking capital of impact. where capital don't assume years, we levels, turnover today, duration expect are regulatory debt, the because is than average ratios we we right? tangible about lower. Having a Our the benefits qualifying Obviously, to levels tangible holding forever. better with company ratios of more with portfolio impact capital little are comfortable there. I last have they

John Michel

OCI. the And

Mark Mason

the levels are the At right? Right. And OCI. much, today. much our bank, running different, We're

John Michel

core. on X.XX%

Mark Mason

X.XX%.

X Tier mean leverage. You

healthy the and bank. levels very, strong at very So

Of design. course, by that's

We have which certain debt level our some recently a leverage, of double was sub deal. million $XXX of and produced

So very, capital at comfortable expect see want levels, bank. level our We from with we're very, very particularly our down the meaningfully to go tangible it don't wouldn't either. here, but we

Steve Moss

terms it That's the for maybe origination they Okay. and we're helpful. of And just do they it's seen yields, I what quarter last in then where is? loan we've where today? of but know you in kind curious origination think the were was are the online, rate month,

John Michel

yes. -- Actually

the for roughly average the quarter, terms weighted XXX. was In rate of about

of of the month, as the question average though, in increased like very weighted terms same multifamily portfolio to noticed, the direction. XXX For XXX across It's so it's the you X, over last good whole kind a because changed have much. rates and

Steve Moss

here compression Okay. And got Obviously, you as for curious the CD just we higher repricing for half kind thinking I points-plus are deposit of just guys how follow-up rates of XX what are Kind go margin about X guess starting you are in to basis of the second year. to guys of assuming terms beta? the just here here, maybe that?

Mark Mason

peers. beta been far for right, the so an has question. our interest-bearing deposit X, and obviously, That's, interesting basic rates, us On

see. more basis. reasonable even We'll confidence Obviously, and though. is are money mean has probably us that Our peers the at a a different what will rates, maybe introduction of story. a rates. see margin might at Having been expect of our some base quarter, said quo. guess. CDs. say Until changing borrowings of beta promotional point, I promotional more impact the status on just their that, begin to only position I'm this everyone expecting the any with to their in to base sorry, kind is we we're beta raising hard not changing start And It's

John Michel

is anticipation rate don't we have betas of but a Our increasing rates, structured. specific

Mark Mason

for have don't basis. That's We a guys. you

Operator

comes question the Woody Lay KBW. with Our from of next line

Woody Lay

growth be a to the really be year So for range? XX% the Is in back the Or for maybe, some might after little pull-through does that strong loan still the in on quarter the half bit second there. quarter. that obviously, a high There feel front, growth quarter? the second call of now it, expectation

Mark Mason

year year. for half that's of expectations of is probably we back XX% XX% at this consistent grow annualized, like in the we've rate at end XX% an the growth of more the low remainder Our that, that but this with to giving right, annualized the annualized guidance been the

Woody Lay

in your And loan-to-deposit going the where Yes. of That getting second comfortable makes sense. loan-to-deposit the going up with to or ratio was materially then you of loans do side. quarter. forward? you The aggressive promotional feel you’re Do expect on deposits grow taking it up forward in sort sounds more a similar rate fairly just like deposit growth I ratio mean, rates.

Mark Mason

in Well, an of with the it’s were concerned that. of obviously. the kind had the We lending, that load We today. opportunity drop-off occurring demand We the to year. is do half see back in

that. thing funding right quarters, somewhat, that, and our did XXX% XXX% between our over for the borrowings the accomplish that’s to replace It several could stress expect we with done. we term. think near-to-moderate to right, loan-to-deposit deposits still until we So have Having ratio and said initial stay

Operator

comes question Tim line Coffey the Janney Our next Scott. Montgomery of from with

Tim Coffey

details do have or it balances? just one any And other? deposits Mark, the the branch and have any do sales? you or loans you Is on

Mark Mason

loans. though more is deposits, and and loans is deposits It it Sure.

million We will net deposit lose $XXX funding. of about

transaction. we about third it's to it. a on million That expect of about gain think $XX note That's I results. excess million realize the of quarter did loans types. all We in about $X will of help that

Tim Coffey

what That's I multifamily mean, loan And then to sales year? accomplish this expecting this needed. Okay. you -- are I

Mark Mason

Maybe kind it make clear. really clear. Yes. clear we of just me let because make Hopefully, that --

quickly, we right? plan Our this that portfolio. to multifamily telling right? our it Well, And can tax. have we're to really we'll quickly stop year, so Potentially, not quickly, sales, loan the been much we how least was to Haven't And super yet do I be see, did sales sale we've so build guys frequent, X we mean, quarter, going now how have this might are this decided some opportunity planning or year. this at we but year. multifamily you

Tim Coffey

of Okay. And changes say those there. And go I you then through was did you kind That's department? kind looking made of residential the for you to staffing the some again? can lending detail

Mark Mason

And stop right? the of over positions, time, we few Sure. of the declines And this then fairly for we decline, That's sort that's line have this volume point processing, of operations your weeks And you positions. you first unit start had when significantly, meaningful year this defense. reducing a first ago. margins layoff is funding and underwriting, using typical more thing cycle is a incrementally but do you done what

Tim Coffey

related that? Okay. severance expenses or Any expenses on anticipated nonrecurring to

Mark Mason

There's the mean some, I not that people. they're business immaterial. It's not large that is today. material,

Tim Coffey

Right, right.

Okay. And then kind just pipeline. about talking of

X or because probably back about of saying X seeing what declining weakness loan that sounds talk of weeks, majority quarter, The kind -- it's or but probably half year, in the last because or you're second quarter, think got it that say, is a I good in seeing going weeks pretty quarters it so? good. the quarter the was XQ, to -- second into think like you're of couple production So it for this what we slowdown, I when be last, the the fourth of pretty that you're of is since kind

Mark Mason

got see you half we in that to will back And stretching some transactions have clearly, know Well, a I done in in of money think second weakness. decline the a real the The seen decline expecting to this first consistent transactions why felt interest. or changed. purchases. X say what but to and it I hindsight, the smart estate roll if important can had is going don't half refinancing stretch a that's with we're third but in meaningful year, I into and is last in quarter, choice. in month, their the sure, we the in for Again, rates We've the make weeks, commercial of the year. of quarter,

Operator

question of is follow-up a the D.A. from Rulis next Jeff Our Davidson. line with

Jeff Rulis

the follow-up. have small -- just PPP of you pretty balances second know I housekeeping quarter? a but John, and a as loan that's first amount, quick Do

John Michel

Yes.

nominal. As of quarter, the of end it's the second

think loans. I the less count of than is in XX number of the terms

anymore so a tracking the of small. end the first of that because was So at it's quarter. we're It million not couple

Operator

additional questions time. any I are There conference no would waiting Mason to at for to back closing this Mark remarks. pass like the

Mark Mason

Thank you to this speaking everyone forward again call quarter. look the attended to quarter. you who next We for

Operator

rest the day. of earnings I you HomeStreet for release the That concludes quarter call your enjoy hope all second Bank.

disconnect now may lines. your You

HomeStreet (HMST) 26 Jul 222022 Q2 Earnings call transcript