(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Act or Rule 12b-2 of the Exchange Act. |
Emerging growth company | |||||
☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act. |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits | ||||
(d) | Exhibits. | ||||
Exhibit 99.1 | |||||
Exhibit 99.2 | |||||
Exhibit 104 | Cover Page Interactive Data File (embedded within with Inline XBRL) |
HomeStreet, Inc. | |||||||||||
By: | /s/ John M. Michel | ||||||||||
John M. Michel | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
Financial Position | As of and for the quarter ended June 30, 2023 •Uninsured deposits were $495 million, or 7% of total deposits, down from $1.0 billion and 14% of total deposits at March 31, 2023 •Excluding brokered deposits, total deposits decreased $262 million to $5.9 billion •Loans held for investment ("LHFI") decreased by $50 million •Nonperforming assets to total assets: 0.44% •Allowance for credit losses to LHFI: 0.57% •Book value per share: $28.10 •Tangible book value per share: $27.50 | |||||||
Operating Results | Second quarter 2023 compared to first quarter 2023 Reported Results: •Net income (loss): $(31.4) million compared to $5.1 million •Earnings (loss) per fully diluted share: $(1.67) compared to $0.27 •Return on Average Equity ("ROAE"): (21.7)% compared to 3.5% •Return on Average Assets ("ROAA"): (1.32)% compared to 0.22% •Net interest margin: 1.93% compared to 2.23% •Efficiency ratio: 93.7% compared to 87.2% | |||||||
Core Results: •Net income: $3.2 million compared to $5.1 million •Earnings per fully diluted share: $0.17 compared to $0.27 •Return on Average Tangible Equity ("ROATE"): 2.9% compared to 4.1% •Return on Average Assets ("ROAA"): 0.13% compared to 0.22% |
Other | •Declared and paid a cash dividend of $0.10 per share in the second quarter •Goodwill impairment charge of $39.9 million in the second quarter of 2023 |
Contact: | Executive Vice President and Chief Financial Officer | |||||||
HomeStreet, Inc. | ||||||||
John Michel (206) 515-2291 | ||||||||
john.michel@homestreet.com | ||||||||
http://ir.homestreet.com |
For the Quarter Ended | |||||||||||||||||||||||||||||
(in thousands, except per share data and FTE data) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||
Select Income Statement Data: | |||||||||||||||||||||||||||||
Net interest income | $ | 43,476 | $ | 49,376 | $ | 55,687 | $ | 63,018 | $ | 60,056 | |||||||||||||||||||
Provision for credit losses | (369) | 593 | 3,798 | — | — | ||||||||||||||||||||||||
Noninterest income | 10,311 | 10,190 | 9,677 | 13,322 | 13,013 | ||||||||||||||||||||||||
Noninterest expense | 90,781 | 52,491 | 50,420 | 49,889 | 50,637 | ||||||||||||||||||||||||
Net income (loss): | |||||||||||||||||||||||||||||
Before income tax (benefit) expense | (36,625) | 6,482 | 11,146 | 26,451 | 22,432 | ||||||||||||||||||||||||
Total | (31,442) | 5,058 | 8,501 | 20,367 | 17,721 | ||||||||||||||||||||||||
Net income (loss) per share - diluted | (1.67) | 0.27 | 0.45 | 1.08 | 0.94 | ||||||||||||||||||||||||
Core net income: (1) | |||||||||||||||||||||||||||||
Total | 3,180 | 5,058 | 8,501 | 20,367 | 17,721 | ||||||||||||||||||||||||
Core net income per share - diluted | 0.17 | 0.27 | 0.45 | 1.08 | 0.94 | ||||||||||||||||||||||||
Select Performance Ratios: | |||||||||||||||||||||||||||||
Return on average equity - annualized | (21.7) | % | 3.5 | % | 6.0 | % | 13.4 | % | 11.8 | % | |||||||||||||||||||
Return on average tangible equity - annualized (1) | 2.9 | % | 4.1 | % | 6.4 | % | 14.2 | % | 12.6 | % | |||||||||||||||||||
Return on average assets - annualized | |||||||||||||||||||||||||||||
Net Income (loss) | (1.32) | % | 0.22 | % | 0.36 | % | 0.91 | % | 0.89 | % | |||||||||||||||||||
Core (1) | 0.13 | % | 0.22 | % | 0.36 | % | 0.91 | % | 0.89 | % | |||||||||||||||||||
Efficiency ratio (1) | 93.7 | % | 87.2 | % | 76.2 | % | 68.4 | % | 68.5 | % | |||||||||||||||||||
Net interest margin | 1.93 | % | 2.23 | % | 2.53 | % | 3.00 | % | 3.27 | % | |||||||||||||||||||
Other data: | |||||||||||||||||||||||||||||
Full-time equivalent employees ("FTE") | 910 | 920 | 913 | 935 | 956 | ||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
(in thousands, except share and per share data) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||
Select Balance Sheet Data: | |||||||||||||||||||||||||||||
Loans held for sale | $ | 31,873 | $ | 24,253 | $ | 17,327 | $ | 13,787 | $ | 47,314 | |||||||||||||||||||
Loans held for investment, net | 7,395,151 | 7,444,882 | 7,384,820 | 7,175,881 | 6,722,382 | ||||||||||||||||||||||||
Allowance for credit losses ("ACL") | 41,500 | 41,500 | 41,500 | 37,606 | 37,355 | ||||||||||||||||||||||||
Investment securities | 1,397,051 | 1,477,004 | 1,400,212 | 1,311,941 | 1,237,957 | ||||||||||||||||||||||||
Total assets | 9,501,475 | 9,858,889 | 9,364,760 | 9,072,887 | 8,582,886 | ||||||||||||||||||||||||
Deposits | 6,670,033 | 7,056,603 | 7,451,919 | 6,610,231 | 6,183,299 | ||||||||||||||||||||||||
Borrowings | 1,972,000 | 1,878,000 | 1,016,000 | 1,569,000 | 1,458,000 | ||||||||||||||||||||||||
Long-term debt | 224,583 | 224,492 | 224,404 | 224,314 | 224,227 | ||||||||||||||||||||||||
Total shareholders' equity | 527,623 | 574,994 | 562,147 | 552,789 | 580,767 | ||||||||||||||||||||||||
Other Data: | |||||||||||||||||||||||||||||
Book value per share | $ | 28.10 | $ | 30.64 | $ | 30.01 | $ | 29.53 | $ | 31.04 | |||||||||||||||||||
Tangible book value per share (1) | $ | 27.50 | $ | 27.87 | $ | 28.41 | $ | 27.92 | $ | 29.37 | |||||||||||||||||||
Total equity to total assets | 5.6 | % | 5.8 | % | 6.0 | % | 6.1 | % | 6.8 | % | |||||||||||||||||||
Tangible common equity to tangible assets (1) | 5.4 | % | 5.3 | % | 5.7 | % | 5.8 | % | 6.4 | % | |||||||||||||||||||
Shares outstanding at end of period | 18,776,597 | 18,767,811 | 18,730,380 | 18,717,557 | 18,712,789 | ||||||||||||||||||||||||
Loans to deposit ratio | 112.0 | % | 106.4 | % | 99.9 | % | 109.3 | % | 110.1 | % | |||||||||||||||||||
Credit Quality: | |||||||||||||||||||||||||||||
ACL to total loans (2) | 0.57 | % | 0.56 | % | 0.57 | % | 0.53 | % | 0.56 | % | |||||||||||||||||||
ACL to nonaccrual loans | 104.3 | % | 318.1 | % | 412.7 | % | 306.6 | % | 411.3 | % | |||||||||||||||||||
Nonaccrual loans to total loans | 0.54 | % | 0.17 | % | 0.14 | % | 0.17 | % | 0.13 | % | |||||||||||||||||||
Nonperforming assets to total assets | 0.44 | % | 0.15 | % | 0.13 | % | 0.15 | % | 0.13 | % | |||||||||||||||||||
Nonperforming assets | $ | 41,469 | $ | 14,886 | $ | 11,893 | $ | 13,991 | $ | 10,835 | |||||||||||||||||||
Regulatory Capital Ratios: (3) | |||||||||||||||||||||||||||||
Bank | |||||||||||||||||||||||||||||
Tier 1 leverage | 8.43 | % | 8.47 | % | 8.63 | % | 9.15 | % | 9.78 | % | |||||||||||||||||||
Total risk-based capital | 13.49 | % | 12.37 | % | 12.59 | % | 12.57 | % | 12.29 | % | |||||||||||||||||||
Common equity Tier 1 capital | 12.78 | % | 11.71 | % | 11.92 | % | 11.96 | % | 11.66 | % | |||||||||||||||||||
Company | |||||||||||||||||||||||||||||
Tier 1 leverage | 6.93 | % | 6.92 | % | 7.25 | % | 7.61 | % | 8.38 | % | |||||||||||||||||||
Total risk-based capital | 12.16 | % | 11.16 | % | 11.53 | % | 11.43 | % | 11.49 | % | |||||||||||||||||||
Common equity Tier 1 capital | 9.14 | % | 8.36 | % | 8.72 | % | 8.66 | % | 8.66 | % |
(in thousands, except share data) | June 30, 2023 | December 31, 2022 | ||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 173,101 | $ | 72,828 | ||||||||||
Investment securities | 1,397,051 | 1,400,212 | ||||||||||||
Loans held for sale | 31,873 | 17,327 | ||||||||||||
Loans held for investment ("LHFI") (net of allowance for credit losses of $41,500 and $41,500) | 7,395,151 | 7,384,820 | ||||||||||||
Mortgage servicing rights | 108,791 | 111,873 | ||||||||||||
Premises and equipment, net | 54,661 | 51,172 | ||||||||||||
Other real estate owned | 1,697 | 1,839 | ||||||||||||
Goodwill and other intangibles | 11,217 | 29,980 | ||||||||||||
Other assets | 327,933 | 294,709 | ||||||||||||
Total assets | $ | 9,501,475 | $ | 9,364,760 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Deposits | $ | 6,670,033 | $ | 7,451,919 | ||||||||||
Borrowings | 1,972,000 | 1,016,000 | ||||||||||||
Long-term debt | 224,583 | 224,404 | ||||||||||||
Accounts payable and other liabilities | 107,236 | 110,290 | ||||||||||||
Total liabilities | 8,973,852 | 8,802,613 | ||||||||||||
Shareholders' equity: | ||||||||||||||
Common stock, no par value; 160,000,000 shares authorized | ||||||||||||||
18,776,597 and 18,730,380 shares issued and outstanding | 228,260 | 226,592 | ||||||||||||
Retained earnings | 400,132 | 435,085 | ||||||||||||
Accumulated other comprehensive income (loss) | (100,769) | (99,530) | ||||||||||||
Total shareholders' equity | 527,623 | 562,147 | ||||||||||||
Total liabilities and shareholders' equity | $ | 9,501,475 | $ | 9,364,760 | ||||||||||
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans | $ | 85,813 | $ | 59,825 | $ | 168,351 | $ | 112,779 | |||||||||||||||
Investment securities | 12,872 | 7,379 | 25,635 | 13,345 | |||||||||||||||||||
Cash, Fed Funds and other | 2,022 | 487 | 3,772 | 595 | |||||||||||||||||||
Total interest income | 100,707 | 67,691 | 197,758 | 126,719 | |||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Deposits | 35,393 | 2,893 | 64,763 | 5,177 | |||||||||||||||||||
Borrowings | 21,838 | 4,742 | 40,143 | 6,940 | |||||||||||||||||||
Total interest expense | 57,231 | 7,635 | 104,906 | 12,117 | |||||||||||||||||||
Net interest income | 43,476 | 60,056 | 92,852 | 114,602 | |||||||||||||||||||
Provision for credit losses | (369) | — | 224 | (9,000) | |||||||||||||||||||
Net interest income after provision for credit losses | 43,845 | 60,056 | 92,628 | 123,602 | |||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||
Net gain on loan origination and sale activities | 2,456 | 5,292 | 4,866 | 13,566 | |||||||||||||||||||
Loan servicing income | 3,259 | 3,661 | 6,298 | 6,965 | |||||||||||||||||||
Deposit fees | 2,704 | 2,218 | 5,362 | 4,293 | |||||||||||||||||||
Other | 1,892 | 1,842 | 3,975 | 3,747 | |||||||||||||||||||
Total noninterest income | 10,311 | 13,013 | 20,501 | 28,571 | |||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||
Compensation and benefits | 27,776 | 30,191 | 57,029 | 62,222 | |||||||||||||||||||
Information services | 7,483 | 7,780 | 14,628 | 14,842 | |||||||||||||||||||
Occupancy | 5,790 | 5,898 | 11,528 | 12,263 | |||||||||||||||||||
General, administrative and other | 9,875 | 6,768 | 20,230 | 15,783 | |||||||||||||||||||
Goodwill impairment | 39,857 | — | 39,857 | — | |||||||||||||||||||
Total noninterest expense | 90,781 | 50,637 | 143,272 | 105,110 | |||||||||||||||||||
Income (loss) before income taxes | (36,625) | 22,432 | (30,143) | 47,063 | |||||||||||||||||||
Income tax (benefit) expense | (5,183) | 4,711 | (3,759) | 9,391 | |||||||||||||||||||
Net income (loss) | $ | (31,442) | $ | 17,721 | $ | (26,384) | $ | 37,672 | |||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | (1.67) | $ | 0.95 | $ | (1.41) | $ | 1.97 | |||||||||||||||
Diluted | $ | (1.67) | $ | 0.94 | $ | (1.41) | $ | 1.95 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 18,775,022 | 18,706,953 | 18,765,292 | 19,143,925 | |||||||||||||||||||
Diluted | 18,775,022 | 18,834,443 | 18,765,292 | 19,310,750 |
Quarter Ended | |||||||||||||||||||||||||||||
(in thousands, except share and per share data) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Loans | $ | 85,813 | $ | 82,538 | $ | 80,733 | $ | 73,329 | $ | 59,825 | |||||||||||||||||||
Investment securities | 12,872 | 12,763 | 11,466 | 9,014 | 7,379 | ||||||||||||||||||||||||
Cash, Fed Funds and other | 2,022 | 1,750 | 1,967 | 1,060 | 487 | ||||||||||||||||||||||||
Total interest income | 100,707 | 97,051 | 94,166 | 83,403 | 67,691 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 35,393 | 29,370 | 18,515 | 8,321 | 2,893 | ||||||||||||||||||||||||
Borrowings | 21,838 | 18,305 | 19,964 | 12,064 | 4,742 | ||||||||||||||||||||||||
Total interest expense | 57,231 | 47,675 | 38,479 | 20,385 | 7,635 | ||||||||||||||||||||||||
Net interest income | 43,476 | 49,376 | 55,687 | 63,018 | 60,056 | ||||||||||||||||||||||||
Provision for credit losses | (369) | 593 | 3,798 | — | — | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 43,845 | 48,783 | 51,889 | 63,018 | 60,056 | ||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Net gain on loan origination and sale activities | 2,456 | 2,410 | 1,488 | 2,647 | 5,292 | ||||||||||||||||||||||||
Loan servicing income | 3,259 | 3,039 | 2,682 | 2,741 | 3,661 | ||||||||||||||||||||||||
Deposit fees | 2,704 | 2,658 | 2,359 | 2,223 | 2,218 | ||||||||||||||||||||||||
Other | 1,892 | 2,083 | 3,148 | 5,711 | 1,842 | ||||||||||||||||||||||||
Total noninterest income | 10,311 | 10,190 | 9,677 | 13,322 | 13,013 | ||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||
Compensation and benefits | 27,776 | 29,253 | 25,970 | 27,341 | 30,191 | ||||||||||||||||||||||||
Information services | 7,483 | 7,145 | 8,101 | 7,038 | 7,780 | ||||||||||||||||||||||||
Occupancy | 5,790 | 5,738 | 6,213 | 6,052 | 5,898 | ||||||||||||||||||||||||
General, administrative and other | 9,875 | 10,355 | 10,136 | 9,458 | 6,768 | ||||||||||||||||||||||||
Goodwill impairment | 39,857 | — | — | — | — | ||||||||||||||||||||||||
Total noninterest expense | 90,781 | 52,491 | 50,420 | 49,889 | 50,637 | ||||||||||||||||||||||||
Income (loss) before income taxes | (36,625) | 6,482 | 11,146 | 26,451 | 22,432 | ||||||||||||||||||||||||
Income tax (benefit) expense | (5,183) | 1,424 | 2,645 | 6,084 | 4,711 | ||||||||||||||||||||||||
Net income (loss) | $ | (31,442) | $ | 5,058 | $ | 8,501 | $ | 20,367 | $ | 17,721 | |||||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||||||||
Basic | $ | (1.67) | $ | 0.27 | $ | 0.45 | $ | 1.09 | $ | 0.95 | |||||||||||||||||||
Diluted | $ | (1.67) | $ | 0.27 | $ | 0.45 | $ | 1.08 | $ | 0.94 | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 18,775,022 | 18,755,453 | 18,726,654 | 18,716,864 | 18,706,953 | ||||||||||||||||||||||||
Diluted | 18,775,022 | 18,771,899 | 18,753,147 | 18,796,737 | 18,834,443 |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
Average Balances: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Investment securities | $ | 1,444,819 | $ | 1,134,929 | $ | 1,448,457 | $ | 1,082,243 | ||||||||||||||||||
Loans | 7,499,800 | 6,231,081 | 7,485,706 | 5,962,689 | ||||||||||||||||||||||
Total interest-earning assets | 9,109,807 | 7,447,008 | 9,080,309 | 7,118,431 | ||||||||||||||||||||||
Total assets | 9,562,817 | 7,945,298 | 9,546,850 | 7,656,050 | ||||||||||||||||||||||
Deposits: Interest-bearing | 5,584,825 | 4,563,974 | 5,642,940 | 4,538,931 | ||||||||||||||||||||||
Deposits: Noninterest-bearing | 1,437,133 | 1,668,631 | 1,474,080 | 1,706,217 | ||||||||||||||||||||||
Borrowings | 1,630,102 | 761,606 | 1,487,019 | 415,007 | ||||||||||||||||||||||
Long-term debt | 224,523 | 224,167 | 224,479 | 214,414 | ||||||||||||||||||||||
Total interest-bearing liabilities | 7,439,450 | 5,549,747 | 7,354,438 | 5,168,352 | ||||||||||||||||||||||
Average Yield/Rate: | ||||||||||||||||||||||||||
Investment securities | 3.82 | % | 2.97 | % | 3.80 | % | 2.83 | % | ||||||||||||||||||
Loans | 4.56 | % | 3.82 | % | 4.50 | % | 3.79 | % | ||||||||||||||||||
Total interest earning assets | 4.45 | % | 3.68 | % | 4.40 | % | 3.62 | % | ||||||||||||||||||
Deposits: Interest-bearing | 2.54 | % | 0.25 | % | 2.31 | % | 0.23 | % | ||||||||||||||||||
Total deposits | 2.02 | % | 0.19 | % | 1.83 | % | 0.17 | % | ||||||||||||||||||
Borrowings | 4.62 | % | 1.21 | % | 4.60 | % | 1.16 | % | ||||||||||||||||||
Long-term debt | 5.34 | % | 4.28 | % | 5.31 | % | 4.20 | % | ||||||||||||||||||
Total interest-bearing liabilities | 3.08 | % | 0.55 | % | 2.87 | % | 0.47 | % | ||||||||||||||||||
Net interest rate spread | 1.37 | % | 3.13 | % | 1.54 | % | 3.15 | % | ||||||||||||||||||
Net interest margin | 1.93 | % | 3.27 | % | 2.08 | % | 3.28 | % |
(in thousands, except yield/rate) | Quarter Ended | |||||||||||||||||||||||||||||||
Average Balances: | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||
Investment securities | $ | 1,444,819 | $ | 1,452,137 | $ | 1,362,861 | $ | 1,252,923 | $ | 1,134,929 | ||||||||||||||||||||||
Loans | 7,499,800 | 7,471,456 | 7,368,097 | 7,070,998 | 6,231,081 | |||||||||||||||||||||||||||
Total interest earning assets | 9,109,807 | 9,050,484 | 8,890,221 | 8,436,745 | 7,447,008 | |||||||||||||||||||||||||||
Total assets | 9,562,817 | 9,530,705 | 9,348,396 | 8,899,684 | 7,945,298 | |||||||||||||||||||||||||||
Deposits: Interest-bearing | 5,584,825 | 5,701,701 | 5,227,039 | 4,852,515 | 4,563,974 | |||||||||||||||||||||||||||
Deposits: Noninterest-bearing | 1,437,133 | 1,511,437 | 1,510,744 | 1,576,387 | 1,668,631 | |||||||||||||||||||||||||||
Borrowings | 1,630,102 | 1,342,347 | 1,717,042 | 1,530,449 | 761,606 | |||||||||||||||||||||||||||
Long-term debt | 224,523 | 224,435 | 224,345 | 224,259 | 224,167 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,439,450 | 7,268,483 | 7,168,426 | 6,607,223 | 5,549,747 | |||||||||||||||||||||||||||
Average Yield/Rate: | ||||||||||||||||||||||||||||||||
Investment securities | 3.82 | % | 3.78 | % | 3.70 | % | 3.22 | % | 2.97 | % | ||||||||||||||||||||||
Loans | 4.56 | % | 4.44 | % | 4.32 | % | 4.09 | % | 3.82 | % | ||||||||||||||||||||||
Total interest earning assets | 4.45 | % | 4.35 | % | 4.24 | % | 3.95 | % | 3.68 | % | ||||||||||||||||||||||
Deposits: Interest-bearing | 2.54 | % | 2.09 | % | 1.40 | % | 0.68 | % | 0.25 | % | ||||||||||||||||||||||
Total deposits | 2.02 | % | 1.65 | % | 1.09 | % | 0.51 | % | 0.19 | % | ||||||||||||||||||||||
Borrowings | 4.62 | % | 4.57 | % | 3.93 | % | 2.43 | % | 1.21 | % | ||||||||||||||||||||||
Long-term debt | 5.34 | % | 5.28 | % | 4.96 | % | 4.56 | % | 4.28 | % | ||||||||||||||||||||||
Total interest-bearing liabilities | 3.08 | % | 2.64 | % | 2.12 | % | 1.22 | % | 0.55 | % | ||||||||||||||||||||||
Net interest rate spread | 1.37 | % | 1.71 | % | 2.12 | % | 2.74 | % | 3.13 | % | ||||||||||||||||||||||
Net interest margin | 1.93 | % | 2.23 | % | 2.53 | % | 3.00 | % | 3.27 | % |
(in thousands) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||
Commercial real estate ("CRE") | ||||||||||||||||||||||||||||||||
Non-owner occupied CRE | $ | 650,710 | $ | 652,284 | $ | 658,085 | $ | 666,394 | $ | 711,077 | ||||||||||||||||||||||
Multifamily | 3,966,894 | 3,975,654 | 3,975,754 | 3,923,946 | 3,475,697 | |||||||||||||||||||||||||||
Construction/land development | 576,432 | 607,559 | 627,663 | 590,092 | 569,896 | |||||||||||||||||||||||||||
Total | 5,194,036 | 5,235,497 | 5,261,502 | 5,180,432 | 4,756,670 | |||||||||||||||||||||||||||
Commercial and industrial loans | ||||||||||||||||||||||||||||||||
Owner occupied CRE | 434,400 | 438,147 | 443,363 | 432,114 | 470,259 | |||||||||||||||||||||||||||
Commercial business | 371,779 | 392,837 | 359,747 | 361,635 | 393,764 | |||||||||||||||||||||||||||
Total | 806,179 | 830,984 | 803,110 | 793,749 | 864,023 | |||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||
Single family (1) | 1,068,229 | 1,057,579 | 1,009,001 | 907,044 | 822,389 | |||||||||||||||||||||||||||
Home equity and other | 368,207 | 362,322 | 352,707 | 332,262 | 316,655 | |||||||||||||||||||||||||||
Total | 1,436,436 | 1,419,901 | 1,361,708 | 1,239,306 | 1,139,044 | |||||||||||||||||||||||||||
Total LHFI | 7,436,651 | 7,486,382 | 7,426,320 | 7,213,487 | 6,759,737 | |||||||||||||||||||||||||||
Allowance for credit losses ("ACL") | (41,500) | (41,500) | (41,500) | (37,606) | (37,355) | |||||||||||||||||||||||||||
Total LHFI less ACL | $ | 7,395,151 | $ | 7,444,882 | $ | 7,384,820 | $ | 7,175,881 | $ | 6,722,382 |
(in thousands) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||
Loans - beginning balance | $ | 7,486,382 | $ | 7,426,320 | $ | 7,213,487 | $ | 6,759,737 | $ | 5,864,490 | ||||||||||||||||||||||
Originations and advances | 327,949 | 345,461 | 611,954 | 914,129 | 1,309,883 | |||||||||||||||||||||||||||
Transfers (to) from loans held for sale | (2,973) | — | 150 | (4,677) | (1,103) | |||||||||||||||||||||||||||
Payoffs, paydowns and other | (374,484) | (284,725) | (398,745) | (455,607) | (411,859) | |||||||||||||||||||||||||||
Charge-offs and transfers to OREO | (223) | (674) | (526) | (95) | (1,674) | |||||||||||||||||||||||||||
Loans - ending balance | $ | 7,436,651 | $ | 7,486,382 | $ | 7,426,320 | $ | 7,213,487 | $ | 6,759,737 |
(in thousands) | June 30, 2023 | March 31, 2023 (1) | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||
CRE | ||||||||||||||||||||||||||||||||
Non-owner occupied CRE | $ | 2,371 | $ | 2,934 | $ | 406 | $ | 11,003 | $ | 39,194 | ||||||||||||||||||||||
Multifamily | 65,635 | 18,239 | 188,392 | 473,733 | 821,980 | |||||||||||||||||||||||||||
Construction/land development | 152,907 | 153,458 | 186,313 | 208,057 | 189,827 | |||||||||||||||||||||||||||
Total | 220,913 | 174,631 | 375,111 | 692,793 | 1,051,001 | |||||||||||||||||||||||||||
Commercial and industrial loans | ||||||||||||||||||||||||||||||||
Owner occupied CRE | 8,622 | 7,133 | 21,144 | 11,176 | 21,785 | |||||||||||||||||||||||||||
Commercial business | 14,722 | 57,698 | 40,648 | 36,144 | 61,286 | |||||||||||||||||||||||||||
Total | 23,344 | 64,831 | 61,792 | 47,320 | 83,071 | |||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||
Single family | 45,055 | 67,410 | 128,829 | 118,727 | 118,957 | |||||||||||||||||||||||||||
Home equity and other | 38,637 | 38,589 | 46,222 | 55,289 | 56,854 | |||||||||||||||||||||||||||
Total | 83,692 | 105,999 | 175,051 | 174,016 | 175,811 | |||||||||||||||||||||||||||
Total loan originations and advances | $ | 327,949 | $ | 345,461 | $ | 611,954 | $ | 914,129 | $ | 1,309,883 |
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 | |||||||||||||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans held for investment | $ | 3,908 | $ | 1,257 | $ | 4,715 | $ | 39,772 | $ | 49,652 | $ | 7,386,999 | $ | 7,436,651 | ||||||||||||||||||||||||||||||
% | 0.05 | % | 0.02 | % | 0.06 | % | 0.54 | % | 0.67 | % | 99.33 | % | 100.00 | % | ||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans held for investment | $ | 4,844 | $ | 1,899 | $ | 11,259 | $ | 13,047 | $ | 31,049 | $ | 7,455,333 | $ | 7,486,382 | ||||||||||||||||||||||||||||||
% | 0.06 | % | 0.03 | % | 0.15 | % | 0.17 | % | 0.41 | % | 99.59 | % | 100.00 | % |
Quarter Ended | ||||||||||||||||||||||||||||||||
(in thousands) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||
Allowance for credit losses | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 41,500 | $ | 41,500 | $ | 37,606 | $ | 37,355 | $ | 37,944 | ||||||||||||||||||||||
Provision for credit losses | 111 | 589 | 4,195 | 249 | (216) | |||||||||||||||||||||||||||
Recoveries (charge-offs), net | (111) | (589) | (301) | 2 | (373) | |||||||||||||||||||||||||||
Ending balance | $ | 41,500 | $ | 41,500 | $ | 41,500 | $ | 37,606 | $ | 37,355 | ||||||||||||||||||||||
Allowance for unfunded commitments: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,201 | $ | 2,197 | $ | 2,594 | $ | 2,843 | $ | 2,627 | ||||||||||||||||||||||
Provision for credit losses | (480) | 4 | (397) | (249) | 216 | |||||||||||||||||||||||||||
Ending balance | $ | 1,721 | $ | 2,201 | $ | 2,197 | $ | 2,594 | $ | 2,843 | ||||||||||||||||||||||
Provision for credit losses: | ||||||||||||||||||||||||||||||||
Allowance for credit losses - loans | $ | 111 | $ | 589 | $ | 4,195 | $ | 249 | $ | (216) | ||||||||||||||||||||||
Allowance for unfunded commitments | (480) | 4 | (397) | (249) | 216 | |||||||||||||||||||||||||||
Total | $ | (369) | $ | 593 | $ | 3,798 | $ | — | $ | — | ||||||||||||||||||||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
(in thousands) | Balance | Rate (1) | Balance | Rate (1) | Balance | Rate (1) | |||||||||||||||||||||||||||||
Non-owner occupied CRE | $ | 2,242 | 0.34 | % | $ | 2,608 | 0.40 | % | $ | 2,102 | 0.32 | % | |||||||||||||||||||||||
Multifamily | 9,695 | 0.24 | % | 9,787 | 0.25 | % | 10,974 | 0.28 | % | ||||||||||||||||||||||||||
Construction/land development | |||||||||||||||||||||||||||||||||||
Multifamily construction | 1,566 | 1.29 | % | 1,345 | 1.23 | % | 998 | 1.05 | % | ||||||||||||||||||||||||||
CRE construction | 169 | 0.84 | % | 204 | 1.02 | % | 196 | 1.03 | % | ||||||||||||||||||||||||||
Single family construction | 11,067 | 4.02 | % | 12,525 | 3.82 | % | 12,418 | 3.51 | % | ||||||||||||||||||||||||||
Single family construction to perm | 1,421 | 0.89 | % | 1,211 | 0.80 | % | 1,171 | 0.74 | % | ||||||||||||||||||||||||||
Total CRE | 26,160 | 0.50 | % | 27,680 | 0.53 | % | 27,859 | 0.53 | % | ||||||||||||||||||||||||||
Owner occupied CRE | 930 | 0.21 | % | 910 | 0.21 | % | 1,030 | 0.23 | % | ||||||||||||||||||||||||||
Commercial business | 3,837 | 1.04 | % | 3,416 | 0.88 | % | 3,247 | 0.91 | % | ||||||||||||||||||||||||||
Total commercial and industrial | 4,767 | 0.60 | % | 4,326 | 0.52 | % | 4,277 | 0.54 | % | ||||||||||||||||||||||||||
Single family | 6,617 | 0.68 | % | 5,804 | 0.61 | % | 5,610 | 0.62 | % | ||||||||||||||||||||||||||
Home equity and other | 3,956 | 1.07 | % | 3,690 | 1.02 | % | 3,754 | 1.06 | % | ||||||||||||||||||||||||||
Total consumer | 10,573 | 0.79 | % | 9,494 | 0.72 | % | 9,364 | 0.74 | % | ||||||||||||||||||||||||||
Total | $ | 41,500 | 0.57 | % | $ | 41,500 | 0.56 | % | $ | 41,500 | 0.57 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(in thousands) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||||||||
Loan originations | |||||||||||||||||||||||||||||||||||
Single family loans | $ | 96,750 | $ | 72,814 | $ | 51,647 | $ | 110,011 | $ | 172,947 | |||||||||||||||||||||||||
Commercial and industrial and CRE loans | 4,906 | 6,150 | 20,864 | 15,332 | 51,584 | ||||||||||||||||||||||||||||||
Loans sold | |||||||||||||||||||||||||||||||||||
Single family loans | 92,787 | 63,473 | 51,427 | 131,228 | 187,623 | ||||||||||||||||||||||||||||||
Commercial and industrial and CRE loans (1) | 4,649 | 8,750 | 16,228 | 29,965 | 50,292 | ||||||||||||||||||||||||||||||
Net gain on loan origination and sale activities | |||||||||||||||||||||||||||||||||||
Single family loans | 2,171 | 2,218 | 1,158 | 1,778 | 3,949 | ||||||||||||||||||||||||||||||
Commercial and industrial and CRE loans (1) | 285 | 192 | 330 | 869 | 1,343 | ||||||||||||||||||||||||||||||
Total | $ | 2,456 | $ | 2,410 | $ | 1,488 | $ | 2,647 | $ | 5,292 |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(in thousands) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||||||||||||||||||||||||||||
Single family servicing income, net: | |||||||||||||||||||||||||||||||||||
Servicing fees and other | $ | 3,868 | $ | 3,923 | $ | 3,928 | $ | 3,986 | $ | 3,952 | |||||||||||||||||||||||||
Changes - amortization (1) | (1,626) | (1,684) | (1,899) | (2,112) | (2,515) | ||||||||||||||||||||||||||||||
Net | 2,242 | 2,239 | 2,029 | 1,874 | 1,437 | ||||||||||||||||||||||||||||||
Risk management, single family MSRs: | |||||||||||||||||||||||||||||||||||
Changes in fair value due to assumptions (2) | 1,320 | (311) | 124 | 1,989 | 4,323 | ||||||||||||||||||||||||||||||
Net gain (loss) from derivatives hedging | (1,592) | (81) | (309) | (2,981) | (5,317) | ||||||||||||||||||||||||||||||
Subtotal | (272) | (392) | (185) | (992) | (994) | ||||||||||||||||||||||||||||||
Single family servicing income | 1,970 | 1,847 | 1,844 | 882 | 443 | ||||||||||||||||||||||||||||||
Commercial loan servicing income: | |||||||||||||||||||||||||||||||||||
Servicing fees and other | 2,724 | 2,746 | 2,653 | 3,687 | 5,555 | ||||||||||||||||||||||||||||||
Amortization of capitalized MSRs | (1,435) | (1,554) | (1,815) | (1,828) | (2,337) | ||||||||||||||||||||||||||||||
Total | 1,289 | 1,192 | 838 | 1,859 | 3,218 | ||||||||||||||||||||||||||||||
Total loan servicing income | $ | 3,259 | $ | 3,039 | $ | 2,682 | $ | 2,741 | $ | 3,661 |
Quarter Ended | ||||||||||||||||||||||||||||||||
(in thousands) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||
Single Family MSRs | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 75,701 | $ | 76,617 | $ | 77,811 | $ | 76,481 | $ | 72,378 | ||||||||||||||||||||||
Additions and amortization: | ||||||||||||||||||||||||||||||||
Originations | 919 | 619 | 581 | 1,453 | 2,295 | |||||||||||||||||||||||||||
Purchases | — | 460 | — | — | — | |||||||||||||||||||||||||||
Changes - amortization (1) | (1,626) | (1,684) | (1,899) | (2,112) | (2,515) | |||||||||||||||||||||||||||
Net additions and amortization | (707) | (605) | (1,318) | (659) | (220) | |||||||||||||||||||||||||||
Change in fair value due to assumptions (2) | 1,320 | (311) | 124 | 1,989 | 4,323 | |||||||||||||||||||||||||||
Ending balance | $ | 76,314 | $ | 75,701 | $ | 76,617 | $ | 77,811 | $ | 76,481 | ||||||||||||||||||||||
Ratio to related loans serviced for others | 1.42 | % | 1.40 | % | 1.41 | % | 1.42 | % | 1.38 | % | ||||||||||||||||||||||
Multifamily and SBA MSRs | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 33,839 | $ | 35,256 | $ | 36,819 | $ | 38,130 | 39,279 | |||||||||||||||||||||||
Originations | 73 | 137 | 252 | 517 | 1,188 | |||||||||||||||||||||||||||
Amortization | (1,435) | (1,554) | (1,815) | (1,828) | (2,337) | |||||||||||||||||||||||||||
Ending balance | $ | 32,477 | $ | 33,839 | $ | 35,256 | $ | 36,819 | $ | 38,130 | ||||||||||||||||||||||
Ratio to related loans serviced for others | 1.70 | % | 1.77 | % | 1.82 | % | 1.86 | % | 1.91 | % |
(in thousands) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | |||||||||||||||||||||||||||
Deposits by Product: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 1,410,369 | $ | 1,479,428 | $ | 1,399,912 | $ | 1,547,642 | $ | 1,640,651 | ||||||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | 370,747 | 496,504 | 466,490 | 514,912 | 590,889 | |||||||||||||||||||||||||||
Savings | 300,007 | 323,373 | 258,977 | 275,399 | 302,359 | |||||||||||||||||||||||||||
Money market | 1,863,762 | 2,097,055 | 2,383,209 | 2,551,961 | 2,679,865 | |||||||||||||||||||||||||||
Certificates of deposit: | ||||||||||||||||||||||||||||||||
Brokered deposits | 760,826 | 885,314 | 1,446,528 | 511,920 | 270,160 | |||||||||||||||||||||||||||
Other | 1,964,322 | 1,774,929 | 1,496,803 | 1,208,397 | 699,375 | |||||||||||||||||||||||||||
Total interest-bearing deposits | 5,259,664 | 5,577,175 | 6,052,007 | 5,062,589 | 4,542,648 | |||||||||||||||||||||||||||
Total deposits | $ | 6,670,033 | $ | 7,056,603 | $ | 7,451,919 | $ | 6,610,231 | $ | 6,183,299 |
Percent of total deposits: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 21.1 | % | 21.0 | % | 18.8 | % | 23.4 | % | 26.5 | % | ||||||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | 5.6 | % | 7.0 | % | 6.2 | % | 7.8 | % | 9.6 | % | ||||||||||||||||||||||
Savings | 4.5 | % | 4.6 | % | 3.5 | % | 4.2 | % | 4.9 | % | ||||||||||||||||||||||
Money market | 27.9 | % | 29.7 | % | 32.0 | % | 38.6 | % | 43.3 | % | ||||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||||||||
Brokered deposits | 11.4 | % | 12.5 | % | 19.4 | % | 7.7 | % | 4.4 | % | ||||||||||||||||||||||
Other | 29.5 | % | 25.2 | % | 20.1 | % | 18.3 | % | 11.3 | % | ||||||||||||||||||||||
Total interest-bearing deposits | 78.9 | % | 79.0 | % | 81.2 | % | 76.6 | % | 73.5 | % | ||||||||||||||||||||||
Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
As of or for the Quarter Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||
Tangible book value per share | |||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | $ | 527,623 | $ | 574,994 | $ | 562,147 | $ | 552,789 | $ | 580,767 | $ | 527,623 | $ | 580,767 | |||||||||||||||||||||||||||
Less: Goodwill and other intangibles | (11,217) | (51,862) | (29,980) | (30,215) | (31,219) | (11,217) | (31,219) | ||||||||||||||||||||||||||||||||||
Tangible shareholders' equity | $ | 516,406 | $ | 523,132 | $ | 532,167 | $ | 522,574 | $ | 549,548 | $ | 516,406 | $ | 549,548 | |||||||||||||||||||||||||||
Common shares outstanding | 18,776,597 | 18,767,811 | 18,730,380 | 18,717,557 | 18,712,789 | 18,776,597 | 18,712,789 | ||||||||||||||||||||||||||||||||||
Computed amount | $ | 27.50 | $ | 27.87 | $ | 28.41 | $ | 27.92 | $ | 29.37 | $ | 27.50 | $ | 29.37 | |||||||||||||||||||||||||||
Tangible common equity to tangible assets | |||||||||||||||||||||||||||||||||||||||||
Tangible shareholders' equity (per above) | $ | 516,406 | $ | 523,132 | $ | 532,167 | $ | 522,574 | $ | 549,548 | $ | 516,406 | $ | 549,548 | |||||||||||||||||||||||||||
Tangible assets | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 9,501,475 | $ | 9,858,889 | $ | 9,364,760 | $ | 9,072,887 | $ | 8,582,886 | $ | 9,501,475 | $ | 8,582,886 | |||||||||||||||||||||||||||
Less: Goodwill and other intangibles (per above) | (11,217) | (51,862) | (29,980) | (30,215) | (31,219) | (11,217) | (31,219) | ||||||||||||||||||||||||||||||||||
Net | $ | 9,490,258 | $ | 9,807,027 | $ | 9,334,780 | $ | 9,042,672 | $ | 8,551,667 | $ | 9,490,258 | $ | 8,551,667 | |||||||||||||||||||||||||||
Ratio | 5.4 | % | 5.3 | % | 5.7 | % | 5.8 | % | 6.4 | % | 5.4 | % | 6.4 | % | |||||||||||||||||||||||||||
Core net income | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (31,442) | $ | 5,058 | $ | 8,501 | $ | 20,367 | $ | 17,721 | $ | (26,384) | $ | 37,672 | |||||||||||||||||||||||||||
Adjustments (tax effected) | |||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | 34,622 | — | — | — | — | 34,622 | — | ||||||||||||||||||||||||||||||||||
Total | $ | 3,180 | $ | 5,058 | $ | 8,501 | $ | 20,367 | $ | 17,721 | $ | 8,238 | $ | 37,672 | |||||||||||||||||||||||||||
Core diluted earnings per share | |||||||||||||||||||||||||||||||||||||||||
Fully diluted shares | 18,775,022 | 18,771,899 | 18,753,147 | 18,796,737 | 18,834,443 | 18,765,292 | 19,310,750 | ||||||||||||||||||||||||||||||||||
Ratio | $ | 0.17 | $ | 0.27 | $ | 0.45 | $ | 1.08 | $ | 0.94 | $ | 0.44 | $ | 1.95 | |||||||||||||||||||||||||||
Return on average tangible equity (annualized) | |||||||||||||||||||||||||||||||||||||||||
Average shareholders' equity | $ | 582,172 | $ | 578,533 | $ | 565,950 | $ | 603,278 | $ | 603,664 | $ | 580,363 | $ | 650,869 | |||||||||||||||||||||||||||
Less: Average goodwill and other intangibles | (51,138) | (30,969) | (30,133) | (30,602) | (31,380) | (41,109) | (31,501) | ||||||||||||||||||||||||||||||||||
Average tangible equity | $ | 531,034 | $ | 547,564 | $ | 535,817 | $ | 572,676 | $ | 572,284 | $ | 539,254 | $ | 619,368 | |||||||||||||||||||||||||||
Core net income (per above) | 3,180 | 5,058 | 8,501 | 20,367 | 17,721 | 8,238 | 37,672 | ||||||||||||||||||||||||||||||||||
Adjustments (tax effected) | |||||||||||||||||||||||||||||||||||||||||
Amortization of core deposit intangibles | 614 | 459 | 183 | 186 | 191 | 1,073 | 382 | ||||||||||||||||||||||||||||||||||
Tangible income applicable to shareholders | $ | 3,794 | $ | 5,517 | $ | 8,684 | $ | 20,553 | $ | 17,912 | $ | 9,311 | $ | 38,054 | |||||||||||||||||||||||||||
Ratio | 2.9 | % | 4.1 | % | 6.4 | % | 14.2 | % | 12.6 | % | 3.5 | % | 12.4 | % | |||||||||||||||||||||||||||
As of or for the Quarter Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
(in thousands, except share and per share data) | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||
Return on average assets (annualized) - Core | |||||||||||||||||||||||||||||||||||||||||
Average Assets | $ | 9,562,817 | $ | 9,530,705 | $ | 9,348,396 | $ | 8,899,684 | $ | 7,945,298 | $ | 9,546,850 | $ | 7,656,050 | |||||||||||||||||||||||||||
Core net income (per above) | 3,180 | 5,058 | 8,501 | 20,367 | 17,721 | 8,238 | 37,672 | ||||||||||||||||||||||||||||||||||
Ratio | 0.13 | % | 0.22 | % | 0.36 | % | 0.91 | % | 0.89 | % | 0.17 | % | 0.99 | % | |||||||||||||||||||||||||||
Efficiency ratio | |||||||||||||||||||||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 90,781 | $ | 52,491 | $ | 50,420 | $ | 49,889 | $ | 50,637 | $ | 143,272 | $ | 105,110 | |||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | (39,857) | — | — | — | — | (39,857) | — | ||||||||||||||||||||||||||||||||||
State of Washington taxes | (526) | (555) | (597) | (629) | (579) | (1,081) | (1,085) | ||||||||||||||||||||||||||||||||||
Adjusted total | $ | 50,398 | $ | 51,936 | $ | 49,823 | $ | 49,260 | $ | 50,058 | $ | 102,334 | $ | 104,025 | |||||||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 43,476 | $ | 49,376 | $ | 55,687 | $ | 63,018 | $ | 60,056 | 92,852 | 114,602 | |||||||||||||||||||||||||||||
Noninterest income | 10,311 | 10,190 | 9,677 | 13,322 | 13,013 | 20,501 | 28,571 | ||||||||||||||||||||||||||||||||||
Gain on sale of branches | — | — | — | (4,270) | — | — | — | ||||||||||||||||||||||||||||||||||
Adjusted total | $ | 53,787 | $ | 59,566 | $ | 65,364 | $ | 72,070 | $ | 73,069 | $ | 113,353 | $ | 143,173 | |||||||||||||||||||||||||||
Ratio | 93.7 | % | 87.2 | % | 76.2 | % | 68.4 | % | 68.5 | % | 90.3 | % | 72.7 | % | |||||||||||||||||||||||||||
Effective tax rate | |||||||||||||||||||||||||||||||||||||||||
Income | 14.2 | % | 12.5 | % | |||||||||||||||||||||||||||||||||||||
Core net income | 1.6 | % | 15.2 | % | |||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | 13.1 | % | 13.1 | % | |||||||||||||||||||||||||||||||||||||
Effective tax rate used in computations above (1) | 22.0 | % | 22.0 | % | 22.0 | % | 22.0 | % | 22.0 | % | 22.0 | % | 22.0 | % | |||||||||||||||||||||||||||
Financial Position | As of and for the quarter ended June 30, 2023 •Uninsured deposits were $495 million, or 7% of total deposits, down from $1.0 billion and 14% of total deposits at March 31, 2023 •Excluding brokered deposits, total deposits decreased $262 million to $5.9 billion •Loans held for investment ("LHFI") decreased by $50 million •Nonperforming assets to total assets: 0.44% •Allowance for credit losses to LHFI: 0.57% •Book value per share: $28.10 •Tangible book value per share: $27.50 | |||||||
Operating Results | Second quarter 2023 compared to first quarter 2023 Reported Results: •Net income (loss): $(31.4) million compared to $5.1 million •Earnings (loss) per fully diluted share: $(1.67) compared to $0.27 •Return on Average Equity ("ROAE"): (21.7)% compared to 3.5% •Return on Average Assets ("ROAA"): (1.32)% compared to 0.22% •Net interest margin: 1.93% compared to 2.23% •Efficiency ratio: 93.7% compared to 87.2% | |||||||
Core Results: •Net income: $3.2 million compared to $5.1 million •Earnings per fully diluted share: $0.17 compared to $0.27 •Return on Average Tangible Equity ("ROATE"): 2.9% compared to 4.1% •Return on Average Assets ("ROAA"): 0.13% compared to 0.22% |
Other | •Declared and paid a cash dividend of $0.10 per share in the second quarter •Goodwill impairment charge of $39.9 million in the second quarter of 2023 |
Contact: | Executive Vice President and Chief Financial Officer | |||||||
HomeStreet, Inc. | ||||||||
John Michel (206) 515-2291 | ||||||||
john.michel@homestreet.com | ||||||||
http://ir.homestreet.com |
As of or for the Quarter Ended | |||||||||||
(in thousands, except share and per share data) | June 30, 2023 | March 31, 2023 | |||||||||
Tangible book value per share | |||||||||||
Shareholders' equity | $ | 527,623 | $ | 574,994 | |||||||
Less: Goodwill and other intangibles | (11,217) | (51,862) | |||||||||
Tangible shareholders' equity | $ | 516,406 | $ | 523,132 | |||||||
Common shares outstanding | 18,776,597 | 18,767,811 | |||||||||
Computed amount | $ | 27.50 | $ | 27.87 | |||||||
Core net income | |||||||||||
Net income (loss) | $ | (31,442) | $ | 5,058 | |||||||
Adjustments (tax effected) | |||||||||||
Goodwill impairment charge | 34,622 | — | |||||||||
Total | $ | 3,180 | $ | 5,058 | |||||||
Return on average tangible equity (annualized) | |||||||||||
Average shareholders' equity | $ | 582,172 | $ | 578,533 | |||||||
Less: Average goodwill and other intangibles | (51,138) | (30,969) | |||||||||
Average tangible equity | $ | 531,034 | $ | 547,564 | |||||||
Core net income | $ | 3,180 | $ | 5,058 | |||||||
Adjustments (tax effected) | |||||||||||
Amortization of core deposit intangibles | 614 | 459 | |||||||||
Tangible income applicable to shareholders | $ | 3,794 | $ | 5,517 | |||||||
Ratio | 2.9 | % | 4.1 | % | |||||||
Return on average assets (annualized) - Core | |||||||||||
Average Assets | $ | 9,562,817 | $ | 9,530,705 | |||||||
Core net income (per above) | 3,180 | 5,058 | |||||||||
Ratio | 0.13 | % | 0.22 | % | |||||||
Efficiency ratio | |||||||||||
Noninterest expense | |||||||||||
Total | $ | 90,781 | $ | 52,491 | |||||||
Adjustments: | |||||||||||
Goodwill impairment | (39,857) | — | |||||||||
State of Washington taxes | (526) | (555) | |||||||||
Adjusted total | $ | 50,398 | $ | 51,936 | |||||||
Total revenues | |||||||||||
Net interest income | $ | 43,476 | $ | 49,376 | |||||||
Noninterest income | 10,311 | 10,190 | |||||||||
Adjusted total | $ | 53,787 | $ | 59,566 | |||||||
Ratio | 93.7 | % | 87.2 | % | |||||||
Core diluted earnings per share | |||||||||||
Core net income (per above) | $ | 3,180 | $ | 5,058 | |||||||
Fully diluted shares | 18,775,022 | 18,771,899 | |||||||||
Ratio | $ | 0.17 | $ | 0.27 |
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Cover Cover |
Jul. 28, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 28, 2023 |
Entity Registrant Name | HOMESTREET, INC. |
Entity Incorporation, State or Country Code | WA |
Entity File Number | 001-35424 |
Entity Tax Identification Number | 91-0186600 |
Entity Address, Address Line One | 601 Union Street |
Entity Address, Address Line Two | Ste. 2000 |
Entity Address, City or Town | Seattle |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98101 |
City Area Code | 206 |
Local Phone Number | 623-3050 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, No Par Value |
Trading Symbol | HMST |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001518715 |
Amendment Flag | false |
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