Fully diluted EPS $1.43
|
ROAE: 16.1%
ROATE: 17.0%
|
ROAA: 1.59%
|
Fully diluted EPS $5.46
|
ROAE: 15.9%
ROATE: 16.8%
|
ROAA: 1.58%
|
Fourth Quarter Operating Results |
Fourth quarter 2021 compared to third quarter 2021
•Net income: $29.4 million compared to $27.2 million
•Earnings per fully diluted share: $1.43 compared to $1.31
•Net interest margin: 3.34% compared to 3.42%
•Return on Average Equity ('ROAE"): 16.1% compared to 14.8%
•Return on Average Tangible Equity ("ROATE"): 17.0% compared to 15.6%
•Return on average assets ("ROAA"): 1.59% compared to 1.48%
•Efficiency ratio: 62.2% compared to 62.8%
|
Full Year Operating Results |
2021 compared to 2020
•Net income: $115.4 million compared to $80.0 million
•Core net income: $115.4 million compared to $88.8 million
•Earnings per fully diluted share: $5.46 compared to $3.47
•Core earnings per fully diluted share: $5.46 compared to $3.85
•Net interest margin: 3.38% compared to 3.13%
•ROAE: 15.9% compared to 11.3%
•ROATE: 16.8% compared to 12.1%
•Core ROATE: 16.8% compared to 13.4%
•ROAA: 1.58% compared to 1.10%
•Core ROAA: 1.58% compared to 1.23%
•Efficiency Ratio: 61.9% compared to 61.4%
|
Financial Position |
Fourth quarter 2021 compared to third quarter 2021
•Loan portfolio originations: $795 million in the fourth quarter
•Single family loans held for sale originations: $361 million, a 13% decrease
•Commercial and consumer noninterest-bearing deposits decreased 5%
•Period ending cost of deposits: 0.15%, unchanged
•Tangible book value per share: $34.04 compared to $33.18
|
2021 Activity
•Loan portfolio originations: $3.3 billion
•Single family loans held for sale originations: $2.0 billion
•Commercial and consumer noninterest-bearing deposits increased 21%
•Tangible book value per share increased from $31.42 to $34.04
|
Other |
•Completed $100 million subordinated notes offering in January 2022
•Repurchased a total of 374,320 shares of our common stock at an average price of $51.17 per share during the fourth quarter
•Repurchased 1,873,294 shares at an average price of $44.92 per share during 2021, representing 8.6% of the outstanding shares at December 31, 2020
•Declared and paid a cash dividend of $0.25 per share in the fourth quarter
|
Contact: | Executive Vice President and Chief Financial Officer | |
HomeStreet, Inc. | ||
John Michel (206) 515-2291 | ||
john.michel@homestreet.com | ||
http://ir.homestreet.com |
Quarter Ended | Year Ended | |||||||||||||
(in thousands, except per share data and FTE data) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 | |||||||
Select Income Statement Data:
| ||||||||||||||
Net interest income
| $ | 57,084 | $ | 57,484 | $ | 57,972 | $ | 54,517 | $ | 56,048 | $ | 227,057 | $ | 208,662 |
Provision for credit losses
| (6,000) | (5,000) | (4,000) | - | - | (15,000) | 20,469 | |||||||
Noninterest income
| 28,620 | 24,298 | 28,224 | 38,833 | 43,977 | 119,975 | 149,364 | |||||||
Noninterest expense
| 53,971 | 51,949 | 52,815 | 56,608 | 64,770 | 215,343 | 235,663 | |||||||
Income: | ||||||||||||||
Before income taxes
| 37,733 | 34,833 | 37,381 | 36,742 | 35,255 | 146,689 | 101,894 | |||||||
Total
| 29,432 | 27,170 | 29,157 | 29,663 | 27,598 | 115,422 | 79,990 | |||||||
Net income per share - diluted | 1.43 | 1.31 | 1.37 | 1.35 | 1.25 | 5.46 | 3.47 | |||||||
Core net income: (1)
| ||||||||||||||
Total
| 29,432 | 27,170 | 29,157 | 29,663 | 32,384 | 115,422 | 88,842 | |||||||
Net income per share - diluted | 1.43 | 1.31 | 1.37 | 1.35 | 1.47 | 5.46 | 3.85 | |||||||
Selected Performance Ratios: | ||||||||||||||
Return on average equity - annualized | 16.1 | % | 14.8 | % | 16.3 | % | 16.4 | % | 15.3 | % | 15.9 | % | 11.3 | % |
Return on average tangible equity - annualized: (1)
| ||||||||||||||
Net income
| 17.0 | % | 15.6 | % | 17.2 | % | 17.3 | % | 16.2 | % | 16.8 | % | 12.1 | % |
Core (1)
| 17.0 | % | 15.6 | % | 17.2 | % | 17.3 | % | 19.0 | % | 16.8 | % | 13.4 | % |
Return on average assets - annualized: | ||||||||||||||
Net income
| 1.59 | % | 1.48 | % | 1.59 | % | 1.65 | % | 1.47 | % | 1.58 | % | 1.10 | % |
Core (1)
| 1.59 | % | 1.48 | % | 1.59 | % | 1.65 | % | 1.73 | % | 1.58 | % | 1.23 | % |
Efficiency ratio (1)
| 62.2 | % | 62.8 | % | 62.8 | % | 60.0 | % | 56.1 | % | 61.9 | % | 61.4 | % |
Net interest margin | 3.34 | % | 3.42 | % | 3.45 | % | 3.29 | % | 3.26 | % | 3.38 | % | 3.13 | % |
Other data: | ||||||||||||||
Full-time equivalent employees ("FTE") | 970 | 983 | 997 | 1,013 | 1,013 | 991 | 1,003 | |||||||
As of: | ||||||||||
(in thousands, except share and per share data) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Selected Balance Sheet Data:
| ||||||||||
Loans held for sale
| $ | 176,131 | $ | 395,112 | $ | 225,241 | $ | 390,223 | $ | 361,932 |
Loans held for investment, net
| 5,495,726 | 5,299,741 | 5,332,626 | 5,227,727 | 5,179,886 | |||||
Allowance for credit losses ("ACL")
| 47,123 | 54,516 | 59,897 | 64,047 | 64,294 | |||||
Investment securities
| 1,006,691 | 983,038 | 1,007,658 | 1,049,105 | 1,076,364 | |||||
Total assets
| 7,204,091 | 7,372,451 | 7,167,951 | 7,265,191 | 7,237,091 | |||||
Deposits
| 6,146,509 | 6,359,660 | 6,086,527 | 6,131,233 | 5,821,559 | |||||
Borrowings
| 41,000 | - | 50,000 | 84,500 | 322,800 | |||||
Long-term debt
| 126,026 | 125,979 | 125,932 | 125,885 | 125,838 | |||||
Total shareholders' equity
| 715,339 | 710,376 | 708,731 | 701,463 | 717,750 | |||||
Other Data:
| ||||||||||
Book value per share
| $ | 35.61 | $ | 34.74 | $ | 34.09 | $ | 32.84 | $ | 32.93 |
Tangible book value per share (1)
| $ | 34.04 | $ | 33.18 | $ | 32.53 | $ | 31.31 | $ | 31.42 |
Equity to assets | 9.9 | % | 9.6 | % | 9.9 | % | 9.7 | % | 9.9 | % |
Tangible common equity to tangible assets (1)
| 9.5 | % | 9.2 | % | 9.5 | % | 9.2 | % | 9.5 | % |
Shares outstanding at end of period
| 20,085,336 | 20,446,648 | 20,791,659 | 21,360,514 | 21,796,904 | |||||
Loans to deposit ratio
| 93.0 | % | 90.4 | % | 92.3 | % | 92.7 | % | 96.3 | % |
Credit Quality:
| ||||||||||
ACL to total loans (2)
| 0.88 | % | 1.06 | % | 1.18 | % | 1.34 | % | 1.33 | % |
ACL to nonaccrual loans | 386.2 | % | 307.8 | % | 287.5 | % | 297.3 | % | 310.3 | % |
Nonaccrual loans to total loans | 0.22 | % | 0.33 | % | 0.39 | % | 0.41 | % | 0.40 | % |
Nonperforming assets to total assets
| 0.18 | % | 0.26 | % | 0.31 | % | 0.32 | % | 0.31 | % |
Nonperforming assets
| $ | 12,936 | $ | 19,196 | $ | 22,319 | $ | 23,025 | $ | 22,097 |
Regulatory Capital Ratios:
| ||||||||||
Bank
| ||||||||||
Tier 1 leverage ratio | 10.11 | % | 10.17 | % | 9.95 | % | 10.01 | % | 9.79 | % |
Total risk-based capital
| 13.77 | % | 13.71 | % | 14.36 | % | 14.84 | % | 14.76 | % |
Company
| ||||||||||
Tier 1 leverage ratio
| 9.94 | % | 10.00 | % | 9.78 | % | 9.83 | % | 9.65 | % |
Total risk-based capital
| 12.66 | % | 13.01 | % | 13.59 | % | 14.05 | % | 14.00 | % |
(in thousands, except share data)
| December 31, 2021 | December 31, 2020 | ||
ASSETS | ||||
Cash and cash equivalents
| $ | 65,214 | $ | 58,049 |
Investment securities
| 1,006,691 | 1,076,364 | ||
Loans held for sale
| 176,131 | 361,932 | ||
Loans held for investment, (net of allowance for credit losses of $47,123 and $64,294)
| 5,495,726 | 5,179,886 | ||
Mortgage servicing rights
| 100,999 | 85,740 | ||
Premises and equipment, net
| 58,154 | 65,102 | ||
Other real estate owned
| 735 | 1,375 | ||
Goodwill and other intangibles
| 31,709 | 32,880 | ||
Other assets
| 268,732 | 375,763 | ||
Total assets | $ | 7,204,091 | $ | 7,237,091 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Deposits
| $ | 6,146,509 | $ | 5,821,559 |
Borrowings
| 41,000 | 322,800 | ||
Long-term debt
| 126,026 | 125,838 | ||
Accounts payable and other liabilities
| 175,217 | 249,144 | ||
Total liabilities | 6,488,752 | 6,519,341 | ||
Shareholders' equity:
| ||||
Common stock, no par value; 160,000,000 shares authorized
| ||||
20,085,336 and 21,796,904 shares issued and outstanding
| 249,856 | 278,505 | ||
Retained earnings
| 444,343 | 403,888 | ||
Accumulated other comprehensive income
| 21,140 | 35,357 | ||
Total shareholders' equity | 715,339 | 717,750 | ||
Total liabilities and shareholders' equity | $ | 7,204,091 | $ | 7,237,091 |
Quarter Ended December 31, | Year Ended December 31, | |||||||
(in thousands, except share and per share data) | 2021 | 2020 | 2021 | 2020 | ||||
Interest income: | ||||||||
Loans | $ | 55,403 | $ | 56,724 | $ | 222,166 | $ | 228,999 |
Investment securities | 5,469 | 5,733 | 21,560 | 21,786 | ||||
Cash, Fed Funds and other | 97 | 267 | 569 | 1,227 | ||||
Total interest income
| 60,969 | 62,724 | 244,295 | 252,012 | ||||
Interest expense: | ||||||||
Deposits | 2,481 | 4,853 | 11,411 | 33,797 | ||||
Borrowings | 1,404 | 1,823 | 5,827 | 9,553 | ||||
Total interest expense
| 3,885 | 6,676 | 17,238 | 43,350 | ||||
Net interest income
| 57,084 | 56,048 | 227,057 | 208,662 | ||||
Provision for credit losses | (6,000) | - | (15,000) | 20,469 | ||||
Net interest income after provision for credit losses
| 63,084 | 56,048 | 242,057 | 188,193 | ||||
Noninterest income: | ||||||||
Net gain on loan origination and sale activities | 20,079 | 36,866 | 92,318 | 122,564 | ||||
Loan servicing income | 2,540 | 2,570 | 7,233 | 9,491 | ||||
Deposit fees | 2,156 | 1,858 | 8,068 | 7,083 | ||||
Other | 3,845 | 2,683 | 12,356 | 10,226 | ||||
Total noninterest income
| 28,620 | 43,977 | 119,975 | 149,364 | ||||
Noninterest expense: | ||||||||
Compensation and benefits | 30,627 | 35,397 | 132,015 | 136,826 | ||||
Information services | 7,278 | 7,674 | 27,913 | 30,004 | ||||
Occupancy | 5,662 | 12,241 | 23,832 | 35,323 | ||||
General, administrative and other | 10,404 | 9,458 | 31,583 | 33,510 | ||||
Total noninterest expense
| 53,971 | 64,770 | 215,343 | 235,663 | ||||
Income before income taxes | 37,733 | 35,255 | 146,689 | 101,894 | ||||
Income tax expense | 8,301 | 7,657 | 31,267 | 21,904 | ||||
Net income | $ | 29,432 | $ | 27,598 | $ | 115,422 | $ | 79,990 |
Net income per share: | ||||||||
Basic | $ | 1.45 | $ | 1.27 | $ | 5.53 | $ | 3.50 |
Diluted | $ | 1.43 | $ | 1.25 | $ | 5.46 | $ | 3.47 |
Weighted average shares outstanding: | ||||||||
Basic
| 20,251,824 | 21,798,545 | 20,885,509 | 22,867,268 | ||||
Diluted
| 20,522,475 | 22,103,902 | 21,143,414 | 23,076,822 |
Quarter Ended | ||||||||||
(in thousands, except share and per share data) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Interest income: | ||||||||||
Loans | $ | 55,403 | $ | 56,117 | $ | 57,078 | $ | 53,568 | $ | 56,724 |
Investment securities | 5,469 | 5,130 | 5,010 | 5,951 | 5,733 | |||||
Cash, Fed Funds and other | 97 | 141 | 159 | 172 | 267 | |||||
Total interest income | 60,969 | 61,388 | 62,247 | 59,691 | 62,724 | |||||
Interest expense: | ||||||||||
Deposits | 2,481 | 2,507 | 2,773 | 3,650 | 4,853 | |||||
Borrowings | 1,404 | 1,397 | 1,502 | 1,524 | 1,823 | |||||
Total interest expense | 3,885 | 3,904 | 4,275 | 5,174 | 6,676 | |||||
Net interest income
| 57,084 | 57,484 | 57,972 | 54,517 | 56,048 | |||||
Provision for credit losses | (6,000) | (5,000) | (4,000) | - | - | |||||
Net interest income after provision for credit losses | 63,084 | 62,484 | 61,972 | 54,517 | 56,048 | |||||
Noninterest income: | ||||||||||
Net gain on loan origination and sale activities | 20,079 | 17,509 | 21,271 | 33,459 | 36,866 | |||||
Loan servicing income | 2,540 | 2,014 | 1,931 | 748 | 2,570 | |||||
Deposit fees | 2,156 | 2,091 | 1,997 | 1,824 | 1,858 | |||||
Other | 3,845 | 2,684 | 3,025 | 2,802 | 2,683 | |||||
Total noninterest income | 28,620 | 24,298 | 28,224 | 38,833 | 43,977 | |||||
Noninterest expense: | ||||||||||
Compensation and benefits | 30,627 | 31,175 | 34,378 | 35,835 | 35,397 | |||||
Information services | 7,278 | 6,902 | 6,949 | 6,784 | 7,674 | |||||
Occupancy | 5,662 | 5,705 | 5,973 | 6,492 | 12,241 | |||||
General, administrative and other | 10,404 | 8,167 | 5,515 | 7,497 | 9,458 | |||||
Total noninterest expense | 53,971 | 51,949 | 52,815 | 56,608 | 64,770 | |||||
Income before income taxes | 37,733 | 34,833 | 37,381 | 36,742 | 35,255 | |||||
Income tax expense
| 8,301 | 7,663 | 8,224 | 7,079 | 7,657 | |||||
Net income | $ | 29,432 | $ | 27,170 | $ | 29,157 | $ | 29,663 | $ | 27,598 |
Net income per share: | ||||||||||
Basic | $ | 1.45 | $ | 1.32 | $ | 1.38 | $ | 1.37 | $ | 1.27 |
Diluted | $ | 1.43 | $ | 1.31 | $ | 1.37 | $ | 1.35 | $ | 1.25 |
Weighted average shares outstanding:
| ||||||||||
Basic | 20,251,824 | 20,613,290 | 21,057,473 | 21,637,671 | 21,798,545 | |||||
Diluted | 20,522,475 | 20,819,601 | 21,287,974 | 21,961,828 | 22,103,902 |
(in thousands, except yield/rate) | Quarter Ended December 31, | Year Ended December 31, | ||||||
Average Balances: | 2021 | 2020 | 2021 | 2020 | ||||
Investment securities
| $ | 990,273 | $ | 1,098,367 | $ | 1,020,530 | $ | 1,086,415 |
Loans
| 5,767,597 | 5,705,512 | 5,653,930 | 5,544,847 | ||||
Total interest earning assets
| 6,840,317 | 6,877,872 | 6,770,763 | 6,694,705 | ||||
Deposits: Interest-bearing
| 4,591,239 | 4,491,440 | 4,570,811 | 4,343,339 | ||||
Deposits: Non-interest-bearing
| 1,728,558 | 1,421,182 | 1,596,653 | 1,276,780 | ||||
Borrowings
| 25,711 | 471,175 | 109,513 | 604,278 | ||||
Long-term debt
| 125,995 | 125,807 | 125,925 | 125,737 | ||||
Total interest-bearing liabilities
| 4,742,945 | 5,088,422 | 4,806,249 | 5,073,354 | ||||
Average Yield/Rate: | ||||||||
Investment securities
| 2.50 | % | 2.35 | % | 2.38 | % | 2.26 | % |
Loans
| 3.79 | % | 3.93 | % | 3.91 | % | 4.10 | % |
Total interest earning assets
| 3.57 | % | 3.65 | % | 3.63 | % | 3.78 | % |
Deposits: Interest-bearing
| 0.21 | % | 0.43 | % | 0.25 | % | 0.78 | % |
Total deposits
| 0.16 | % | 0.33 | % | 0.18 | % | 0.60 | % |
Borrowings
| 0.73 | % | 0.35 | % | 0.36 | % | 0.62 | % |
Long-term debt
| 4.29 | % | 4.35 | % | 4.30 | % | 4.58 | % |
Total interest-bearing liabilities
| 0.33 | % | 0.52 | % | 0.36 | % | 0.85 | % |
Net interest rate spread
| 3.24 | % | 3.13 | % | 3.27 | % | 2.93 | % |
Net interest margin
| 3.34 | % | 3.26 | % | 3.38 | % | 3.13 | % |
(in thousands, except yield/rate) | Quarter Ended | |||||||||
Average Balances: |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Investment securities
| $ | 990,273 | $ | 994,593 | $ | 1,032,995 | $ | 1,065,423 | $ | 1,098,367 |
Loans
| 5,767,597 | 5,577,149 | 5,664,187 | 5,605,868 | 5,705,512 | |||||
Total interest earning assets
| 6,840,317 | 6,719,258 | 6,783,707 | 6,739,335 | 6,877,872 | |||||
Deposits: Interest-bearing
| 4,591,239 | 4,525,730 | 4,577,504 | 4,589,126 | 4,491,440 | |||||
Deposits: Noninterest-bearing
| 1,728,558 | 1,679,086 | 1,541,317 | 1,433,765 | 1,421,182 | |||||
Borrowings
| 25,711 | 32,167 | 179,543 | 203,621 | 471,175 | |||||
Long-term debt
| 125,995 | 125,948 | 125,901 | 125,854 | 125,807 | |||||
Total interest-bearing liabilities
| 4,742,945 | 4,683,845 | 4,882,948 | 4,918,601 | 5,088,422 | |||||
Average Yield/Rate: | ||||||||||
Investment securities
| 2.50 | % | 2.34 | % | 2.20 | % | 2.47 | % | 2.35 | % |
Loans
| 3.79 | % | 3.98 | % | 4.02 | % | 3.85 | % | 3.93 | % |
Total interest earning assets
| 3.57 | % | 3.65 | % | 3.70 | % | 3.60 | % | 3.65 | % |
Deposits: Interest-bearing
| 0.21 | % | 0.22 | % | 0.24 | % | 0.32 | % | 0.43 | % |
Total deposits
| 0.16 | % | 0.16 | % | 0.18 | % | 0.25 | % | 0.33 | % |
Borrowings
| 0.73 | % | 0.54 | % | 0.31 | % | 0.32 | % | 0.35 | % |
Long-term debt
| 4.29 | % | 4.28 | % | 4.31 | % | 4.33 | % | 4.35 | % |
Total interest-bearing liabilities
| 0.33 | % | 0.33 | % | 0.35 | % | 0.42 | % | 0.52 | % |
Net interest rate spread
| 3.24 | % | 3.32 | % | 3.35 | % | 3.18 | % | 3.13 | % |
Net interest margin
| 3.34 | % | 3.42 | % | 3.45 | % | 3.29 | % | 3.26 | % |
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Commercial real estate loans | ||||||||||
Non-owner occupied commercial real estate | $ | 705,359 | $ | 754,031 | $ | 761,754 | $ | 766,002 | $ | 829,538 |
Multifamily | 2,415,359 | 2,090,156 | 1,966,995 | 1,521,349 | 1,428,092 | |||||
Construction/land development | 496,144 | 514,322 | 484,282 | 532,202 | 553,695 | |||||
Total commercial real estate loans | 3,616,862 | 3,358,509 | 3,213,031 | 2,819,553 | 2,811,325 | |||||
Commercial and industrial loans | ||||||||||
Owner occupied commercial real estate | 457,706 | 450,350 | 457,504 | 473,273 | 467,256 | |||||
Commercial business | 401,872 | 435,756 | 575,122 | 757,231 | 645,723 | |||||
Total commercial and industrial loans | 859,578 | 886,106 | 1,032,626 | 1,230,504 | 1,112,979 | |||||
Consumer loans | ||||||||||
Single family (1)
| 763,331 | 793,927 | 812,287 | 875,417 | 915,123 | |||||
Home equity and other | 303,078 | 315,715 | 334,579 | 366,300 | 404,753 | |||||
Total consumer loans | 1,066,409 | 1,109,642 | 1,146,866 | 1,241,717 | 1,319,876 | |||||
Total | 5,542,849 | 5,354,257 | 5,392,523 | 5,291,774 | 5,244,180 | |||||
Allowance for credit losses | (47,123) | (54,516) | (59,897) | (64,047) | (64,294) | |||||
Net | $ | 5,495,726 | $ | 5,299,741 | $ | 5,332,626 | $ | 5,227,727 | $ | 5,179,886 |
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Loans - beginning balance | $ | 5,354,257 | $ | 5,392,523 | $ | 5,291,774 | $ | 5,244,180 | $ | 5,294,369 |
Originations and advances | 794,869 | 804,307 | 911,630 | 768,787 | 734,029 | |||||
Transfers (to) from loans held for sale | (2,034) | (261,697) | 1,394 | (130,218) | (157,315) | |||||
Payoffs, paydowns and other | (602,613) | (580,754) | (812,261) | (590,897) | (626,436) | |||||
Charge-offs and transfers to OREO | (1,630) | (122) | (14) | (78) | (467) | |||||
Loans - ending balance | $ | 5,542,849 | $ | 5,354,257 | $ | 5,392,523 | $ | 5,291,774 | $ | 5,244,180 |
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Commercial real estate loans | ||||||||||
Non-owner occupied commercial real estate | $ | 33,390 | $ | 30,065 | $ | 14,308 | $ | 8,404 | $ | 18,233 |
Multifamily | 395,365 | 408,353 | 513,620 | 282,795 | 353,802 | |||||
Construction/land development | 180,083 | 191,774 | 183,571 | 165,631 | 171,822 | |||||
Total commercial real estate loans | 608,838 | 630,192 | 711,499 | 456,830 | 543,857 | |||||
Commercial and industrial loans | ||||||||||
Owner occupied commercial real estate | 27,323 | 11,879 | 8,709 | 33,155 | 20,968 | |||||
Commercial business | 49,580 | 38,157 | 83,053 | 163,525 | 41,357 | |||||
Total commercial and industrial loans | 76,903 | 50,036 | 91,762 | 196,680 | 62,325 | |||||
Consumer loans | ||||||||||
Single family | 73,035 | 93,602 | 78,182 | 95,544 | 103,016 | |||||
Home equity and other | 36,093 | 30,477 | 30,187 | 19,733 | 24,831 | |||||
Total consumer loans | 109,128 | 124,079 | 108,369 | 115,277 | 127,847 | |||||
Total | $ | 794,869 | $ | 804,307 | $ | 911,630 | $ | 768,787 | $ | 734,029 |
Past Due and Still Accruing | ||||||||||||||
(in thousands) | 30-59 days | 60-89 days |
90 days or
more (1)
| Nonaccrual |
Total past
due and nonaccrual (2)
| Current |
Total loans | |||||||
December 31, 2021 | ||||||||||||||
Total loans held for investment | $ | 1,208 | $ | 894 | $ | 6,717 | $ | 12,201 | $ | 21,020 | $ | 5,521,829 | $ | 5,542,849 |
% | 0.02 | % | 0.02 | % | 0.12 | % | 0.22 | % | 0.38 | % | 99.62 | % | 100.00 | % |
September 30, 2021 | ||||||||||||||
Total loans held for investment | $ | 1,554 | $ | 1,202 | $ | 8,361 | $ | 17,712 | $ | 28,829 | $ | 5,325,428 | $ | 5,354,257 |
% | 0.03 | % | 0.02 | % | 0.16 | % | 0.33 | % | 0.54 | % | 99.46 | % | 100.00 | % |
Quarter Ended | ||||||||||
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Allowance for credit losses | ||||||||||
Beginning balance
| $ | 54,516 | $ | 59,897 | $ | 64,047 | $ | 64,294 | $ | 64,892 |
Provision for credit losses | (5,952) | (5,348) | (4,145) | (371) | 210 | |||||
Recoveries (charge-offs), net | (1,441) | (33) | (5) | 124 | (808) | |||||
Ending balance
| $ | 47,123 | $ | 54,516 | $ | 59,897 | $ | 64,047 | $ | 64,294 |
Allowance for unfunded commitments:
| ||||||||||
Beginning balance
| $ | 2,452 | $ | 2,104 | $ | 1,959 | $ | 1,588 | $ | 1,798 |
Provision for credit losses | (48) | 348 | 145 | 371 | (210) | |||||
Ending balance
| $ | 2,404 | $ | 2,452 | $ | 2,104 | $ | 1,959 | $ | 1,588 |
Provision for credit losses: | ||||||||||
Allowance for credit losses - loans | $ | (5,952) | $ | (5,348) | $ | (4,145) | $ | (371) | $ | 210 |
Allowance for unfunded commitments | (48) | 348 | 145 | 371 | (210) | |||||
Total
| $ | (6,000) | $ | (5,000) | $ | (4,000) | $ | - | $ | - |
(in thousands) | December 31, 2021 | September 30, 2021 | December 31, 2020 | |||||||||
Allowance for credit losses | Balance |
Rate (1)
| Balance |
Rate (1)
| Balance |
Rate (1)
| ||||||
Non-owner occupied commercial real estate
| $ | 7,509 | 1.06 | % | $ | 9,636 | 1.28 | % | $ | 8,845 | 1.07 | % |
Multifamily
| 5,854 | 0.24 | % | 5,457 | 0.26 | % | 6,072 | 0.43 | % | |||
Construction/land development
| ||||||||||||
Multifamily construction
| 507 | 1.34 | % | 1,044 | 2.08 | % | 4,903 | 4.25 | % | |||
Commercial real estate construction
| 150 | 1.06 | % | 351 | 1.96 | % | 1,670 | 6.12 | % | |||
Single family construction
| 6,411 | 2.16 | % | 6,291 | 2.07 | % | 5,130 | 1.98 | % | |||
Single family construction to perm | 1,055 | 0.71 | % | 1,062 | 0.74 | % | 1,315 | 0.87 | % | |||
Total commercial real estate loans | 21,486 | 0.59 | % | 23,841 | 0.71 | % | 27,935 | 0.99 | % | |||
Owner occupied commercial real estate
| 5,006 | 1.10 | % | 5,285 | 1.18 | % | 4,994 | 1.08 | % | |||
Commercial business
| 12,273 | 3.39 | % | 14,473 | 4.08 | % | 17,043 | 4.72 | % | |||
Total commercial and industrial | 17,279 | 2.11 | % | 19,758 | 2.46 | % | 22,037 | 2.67 | % | |||
Single family
| 4,394 | 0.68 | % | 5,757 | 0.85 | % | 6,906 | 0.85 | % | |||
Home equity and other
| 3,964 | 1.31 | % | 5,160 | 1.63 | % | 7,416 | 1.83 | % | |||
Total consumer | 8,358 | 0.88 | % | 10,917 | 1.10 | % | 14,322 | 1.18 | % | |||
Total | $ | 47,123 | 0.88 | % | $ | 54,516 | 1.06 | % | $ | 64,294 | 1.33 | % |
Quarter Ended | Year Ended | |||||||||||||
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 | |||||||
Loan originations | ||||||||||||||
Single family loans
| $ | 360,503 | $ | 414,102 | $ | 562,804 | $ | 623,889 | $ | 628,762 | $ | 1,961,298 | $ | 2,079,094 |
Commercial and industrial and CRE loans
| 105,163 | 34,464 | 42,435 | 113,304 | 162,898 | 295,366 | 414,550 | |||||||
Loans sold
| ||||||||||||||
Single family loans | 377,399 | 469,090 | 627,282 | 573,040 | 592,661 | 2,046,811 | 1,985,944 | |||||||
Commercial and industrial and CRE loans (1)
| 307,430 | 69,810 | 138,421 | 257,717 | 406,717 | 773,378 | 908,776 | |||||||
Net gain on loan origination and sale activities | ||||||||||||||
Single family loans | 10,578 | 14,249 | 15,836 | 26,187 | 27,044 | 66,850 | 100,795 | |||||||
Commercial and industrial and CRE loans (1)
| 9,501 | 3,260 | 5,435 | 7,272 | 9,822 | 25,468 | 21,769 | |||||||
Total | $ | 20,079 | $ | 17,509 | $ | 21,271 | $ | 33,459 | $ | 36,866 | $ | 92,318 | $ | 122,564 |
Quarter Ended | Year Ended | |||||||||||||
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 | |||||||
Single family servicing income, net: | ||||||||||||||
Servicing fees and other | $ | 3,870 | $ | 3,878 | $ | 3,975 | $ | 3,935 | $ | 4,120 | $ | 15,658 | $ | 17,477 |
Changes - amortization (1)
| (4,216) | (4,579) | (5,181) | (5,693) | (5,508) | (19,669) | (17,754) | |||||||
Net | (346) | (701) | (1,206) | (1,758) | (1,388) | (4,011) | (277) | |||||||
Risk management, single family MSRs: | ||||||||||||||
Changes in fair value due to assumptions (2)
| 193 | 747 | (5,024) | 11,463 | 2,015 | 7,379 | (19,955) | |||||||
Net gain (loss) from derivatives hedging | (378) | (293) | 5,024 | (12,591) | (1,328) | (8,238) | 20,820 | |||||||
Subtotal | (185) | 454 | - | (1,128) | 687 | (859) | 865 | |||||||
Single family servicing income (loss) | (531) | (247) | (1,206) | (2,886) | (701) | (4,870) | 588 | |||||||
Commercial loan servicing income: | ||||||||||||||
Servicing fees and other | 5,417 | 4,019 | 5,270 | 4,978 | 4,844 | 19,684 | 14,560 | |||||||
Amortization of capitalized MSRs | (2,346) | (1,758) | (2,133) | (1,344) | (1,573) | (7,581) | (5,657) | |||||||
Total | 3,071 | 2,261 | 3,137 | 3,634 | 3,271 | 12,103 | 8,903 | |||||||
Total loan servicing income (loss) | $ | 2,540 | $ | 2,014 | $ | 1,931 | $ | 748 | $ | 2,570 | $ | 7,233 | $ | 9,491 |
Quarter Ended | ||||||||||
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Single Family MSRs | ||||||||||
Beginning balance | $ | 61,206 | $ | 59,872 | $ | 62,352 | $ | 49,966 | $ | 47,018 |
Additions and amortization: | ||||||||||
Originations
| 4,401 | 5,166 | 7,725 | 6,616 | 6,482 | |||||
Changes - amortization (1)
| (4,216) | (4,579) | (5,181) | (5,693) | (5,508) | |||||
Net additions and amortization
| 185 | 587 | 2,544 | 923 | 974 | |||||
Change in fair value due to assumptions (2)
| 193 | 747 | (5,024) | 11,463 | 1,974 | |||||
Ending balance | $ | 61,584 | $ | 61,206 | $ | 59,872 | $ | 62,352 | $ | 49,966 |
Ratio to related loans serviced for others | 1.11 | % | 1.09 | % | 1.05 | % | 1.10 | % | 0.85 | % |
Multifamily and SBA MSRs | ||||||||||
Beginning balance | $ | 39,625 | $ | 39,113 | $ | 39,626 | $ | 35,774 | 31,806 | |
Originations
| 2,136 | 2,270 | 1,620 | 5,196 | 5,458 | |||||
Amortization
| (2,346) | (1,758) | (2,133) | (1,344) | (1,490) | |||||
Ending balance | $ | 39,415 | $ | 39,625 | $ | 39,113 | $ | 39,626 | $ | 35,774 |
Ratio to related loans serviced for others | 1.94 | % | 1.92 | % | 1.92 | % | 2.02 | % | 1.99 | % |
(in thousands) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 | |||||
Deposits by Product: | ||||||||||
Noninterest-bearing accounts - checking and savings | $ | 1,433,566 | $ | 1,479,491 | $ | 1,316,698 | $ | 1,190,953 | $ | 1,092,735 |
Interest-bearing transaction and savings deposits: | ||||||||||
Interest-bearing demand deposit accounts | 513,810 | 555,716 | 557,677 | 557,900 | 484,265 | |||||
Statement savings accounts | 302,389 | 305,395 | 293,563 | 287,028 | 264,024 | |||||
Money market accounts | 2,806,313 | 2,796,524 | 2,650,564 | 2,665,875 | 2,596,453 | |||||
Total interest-bearing transaction and savings deposits | 3,622,512 | 3,657,635 | 3,501,804 | 3,510,803 | 3,344,742 | |||||
Total transaction and savings deposits | 5,056,078 | 5,137,126 | 4,818,502 | 4,701,756 | 4,437,477 | |||||
Certificates of deposit | 906,928 | 995,475 | 1,022,967 | 1,178,714 | 1,139,807 | |||||
Noninterest-bearing accounts - other | 183,503 | 227,059 | 245,058 | 250,763 | 244,275 | |||||
Total deposits | $ | 6,146,509 | $ | 6,359,660 | $ | 6,086,527 | $ | 6,131,233 | $ | 5,821,559 |
Percent of total deposits: | ||||||||||
Noninterest-bearing accounts - checking and savings | 23.3 | % | 23.3 | % | 21.6 | % | 19.4 | % | 18.8 | % |
Interest-bearing transaction and savings deposits: | ||||||||||
Interest-bearing demand deposit accounts | 8.4 | % | 8.7 | % | 9.2 | % | 9.1 | % | 8.3 | % |
Statement savings accounts | 4.9 | % | 4.8 | % | 4.8 | % | 4.7 | % | 4.5 | % |
Money market accounts | 45.7 | % | 44.0 | % | 43.5 | % | 43.5 | % | 44.6 | % |
Total interest-bearing transaction and savings deposits | 59.0 | % | 57.5 | % | 57.5 | % | 57.3 | % | 57.4 | % |
Total transaction and savings deposits | 82.3 | % | 80.8 | % | 79.1 | % | 76.7 | % | 76.2 | % |
Certificates of deposit | 14.8 | % | 15.7 | % | 16.8 | % | 19.2 | % | 19.6 | % |
Noninterest-bearing accounts - other | 2.9 | % | 3.5 | % | 4.1 | % | 4.1 | % | 4.2 | % |
Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
As of or for the Quarter Ended | Year Ended | |||||||||||||
(in thousands, except share and per share data) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 | |||||||
Tangible book value per share | ||||||||||||||
Shareholders' equity
| $ | 715,339 | $ | 710,376 | $ | 708,731 | $ | 701,463 | $ | 717,750 | $ | 715,339 | $ | 717,750 |
Less: Goodwill and other intangibles
| (31,709) | (32,002) | (32,295) | (32,587) | (32,880) | (31,709) | (32,880) | |||||||
Tangible shareholders' equity | $ | 683,630 | $ | 678,374 | $ | 676,436 | $ | 668,876 | $ | 684,870 | $ | 683,630 | $ | 684,870 |
Common shares outstanding | 20,085,336 | 20,446,648 | 20,791,659 | 21,360,514 | 21,796,904 | 20,085,336 | 21,796,904 | |||||||
Computed amount | $ | 34.04 | $ | 33.18 | $ | 32.53 | $ | 31.31 | $ | 31.42 | $ | 34.04 | $ | 31.42 |
Tangible common equity to tangible assets | ||||||||||||||
Tangible shareholders' equity (per above) | $ | 683,630 | $ | 678,374 | $ | 676,436 | $ | 668,876 | $ | 684,870 | $ | 683,630 | $ | 684,870 |
Tangible assets | ||||||||||||||
Total assets | $ | 7,204,091 | $ | 7,372,451 | $ | 7,167,951 | $ | 7,265,191 | $ | 7,237,091 | $ | 7,204,091 | $ | 7,237,091 |
Less: Goodwill and other intangibles | (31,709) | (32,002) | (32,295) | (32,587) | (32,880) | (31,709) | (32,880) | |||||||
Net | $ | 7,172,382 | $ | 7,340,449 | $ | 7,135,656 | $ | 7,232,604 | $ | 7,204,211 | $ | 7,172,382 | $ | 7,204,211 |
Ratio | 9.5 | % | 9.2 | % | 9.5 | % | 9.2 | % | 9.5 | % | 9.5 | % | 9.5 | % |
Core net income | ||||||||||||||
Net income | $ | 29,432 | $ | 27,170 | $ | 29,157 | $ | 29,663 | $ | 27,598 | $ | 115,422 | $ | 79,990 |
Adjustments (tax effected) | ||||||||||||||
Restructuring related charges | - | - | - | - | 4,786 | - | 9,298 | |||||||
Contingent payout | - | - | - | - | - | - | (446) | |||||||
Total | $ | 29,432 | $ | 27,170 | $ | 29,157 | $ | 29,663 | $ | 32,384 | $ | 115,422 | $ | 88,842 |
Return on average tangible equity (annualized) | ||||||||||||||
Average shareholders' equity
| $ | 726,014 | $ | 726,823 | $ | 718,838 | $ | 731,719 | $ | 717,666 | $ | 725,802 | $ | 706,160 |
Less: Average goodwill and other intangibles
| (31,901) | (32,195) | (32,487) | (32,777) | (33,103) | (32,337) | (33,613) | |||||||
Average tangible equity | $ | 694,113 | $ | 694,628 | $ | 686,351 | $ | 698,942 | $ | 684,563 | $ | 693,465 | $ | 672,547 |
Net income | $ | 29,432 | $ | 27,170 | $ | 29,157 | $ | 29,663 | $ | 27,598 | $ | 115,422 | $ | 79,990 |
Adjustments (tax effected) | ||||||||||||||
Amortization of core deposit intangibles | 229 | 229 | 229 | 236 | 267 | 923 | 1,082 | |||||||
Tangible income applicable to shareholders | $ | 29,661 | $ | 27,399 | $ | 29,386 | $ | 29,899 | $ | 27,865 | $ | 116,345 | $ | 81,072 |
Ratio
| 17.0 | % | 15.6 | % | 17.2 | % | 17.3 | % | 16.2 | % | 16.8 | % | 12.1 | % |
As of or for the Quarter Ended | Year Ended | |||||||||||||
(in thousands, except share and per share data) |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 | |||||||
Return on average tangible equity (annualized) - Core | ||||||||||||||
Average tangible equity (per above) | $ | 694,113 | $ | 694,628 | $ | 686,351 | $ | 698,942 | $ | 684,563 | $ | 693,465 | $ | 672,547 |
Core net income (per above) | 29,432 | 27,170 | 29,157 | 29,663 | 32,384 | 115,422 | 88,842 | |||||||
Adjustments (tax effected) | ||||||||||||||
Amortization of core deposit intangibles | 229 | 229 | 229 | 236 | 267 | 923 | 1,082 | |||||||
Tangible core income applicable to shareholders | $ | 29,661 | $ | 27,399 | $ | 29,386 | $ | 29,899 | $ | 32,651 | $ | 116,345 | $ | 89,924 |
Ratio
| 17.0 | % | 15.6 | % | 17.2 | % | 17.3 | % | 19.0 | % | 16.8 | % | 13.4 | % |
Return on average assets (annualized) - Core | ||||||||||||||
Average assets
| $ | 7,356,957 | $ | 7,264,933 | $ | 7,342,275 | $ | 7,310,408 | $ | 7,463,702 | $ | 7,318,505 | $ | 7,250,634 |
Core net income (per above) | 29,432 | 27,170 | 29,157 | 29,663 | 32,384 | 115,422 | 88,842 | |||||||
Ratio
| 1.59 | % | 1.48 | % | 1.59 | % | 1.65 | % | 1.73 | % | 1.58 | % | 1.23 | % |
Efficiency ratio | ||||||||||||||
Noninterest expense
| ||||||||||||||
Total
| $ | 53,971 | $ | 51,949 | $ | 52,815 | $ | 56,608 | $ | 64,770 | $ | 215,343 | $ | 235,663 |
Adjustments:
| ||||||||||||||
Restructuring related charges | - | - | - | - | (6,112) | - | (11,837) | |||||||
Legal fees recovery | - | - | 1,900 | - | - | 1,900 | - | |||||||
Prepayment fee on FHLB advances | - | - | - | - | (1,492) | - | (1,492) | |||||||
State of Washington taxes | (664) | (578) | (602) | (579) | (1,056) | (2,423) | (2,920) | |||||||
Adjusted total
| $ | 53,307 | $ | 51,371 | $ | 54,113 | $ | 56,029 | $ | 56,110 | $ | 214,820 | $ | 219,414 |
Total revenues
| ||||||||||||||
Net interest income
| $ | 57,084 | $ | 57,484 | $ | 57,972 | $ | 54,517 | $ | 56,048 | 227,057 | 208,662 | ||
Noninterest income
| 28,620 | 24,298 | 28,224 | 38,833 | 43,977 | 119,975 | 149,364 | |||||||
Adjustments:
| ||||||||||||||
Contingent payout
| - | - | - | - | - | - | (566) | |||||||
Adjusted total
| $ | 85,704 | $ | 81,782 | $ | 86,196 | $ | 93,350 | $ | 100,025 | $ | 347,032 | $ | 357,460 |
Ratio | 62.2 | % | 62.8 | % | 62.8 | % | 60.0 | % | 56.1 | % | 61.9 | % | 61.4 | % |
Core diluted earnings per share | ||||||||||||||
Core net income (per above) | $ | 29,432 | $ | 27,170 | $ | 29,157 | $ | 29,663 | $ | 32,384 | $ | 115,422 | $ | 88,842 |
Fully diluted shares
| 20,522,475 | 20,819,601 | 21,287,974 | 21,961,828 | 22,103,902 | 21,143,414 | 23,076,822 | |||||||
Ratio
| $ | 1.43 | $ | 1.31 | $ | 1.37 | $ | 1.35 | $ | 1.47 | $ | 5.46 | $ | 3.85 |
Effective tax rate used in computations above | 22.0 | % | 22.0 | % | 22.0 | % | 19.3 | % | 21.7 | % | 21.3 | % | 21.5 | % |
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HomeStreet Inc. published this content on 24 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 January 2022 21:13:08 UTC.