Date of Report (Date of Earliest Event Reported): July 24, 2015 | ||
HOMESTREET, INC. (Exact name of registrant as specified in its charter) | ||
Washington (State or other jurisdiction of incorporation) | 001-35424 (Commission File Number) | 91-0186600 (IRS Employer Identification No.) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
HomeStreet, Inc. |
By: /s/ Godfrey B. Evans |
Godfrey B. Evans |
Executive Vice President, Chief Administrative |
Officer, General Counsel and Corporate Secretary |
• | Consolidated results: |
▪ | Net gain on mortgage loan origination and sale activities was $70.0 million in the second quarter of 2015 compared with $61.9 million in the first quarter of 2015 and $41.8 million in the second quarter of 2014. Single family interest rate lock commitments increased 56.7% from the same period a year ago. |
▪ | Net interest income was $38.2 million in the second quarter of 2015 compared with $30.7 million in the first quarter of 2015 and $23.1 million in the second quarter of 2014, resulting from a 22.8% and a 56.6% increase in average interest-earning assets, respectively. In the first quarter of 2015, $803.7 million of interest-earning assets were added from the Simplicity merger. |
▪ | Net interest margin was 3.63% compared to 3.60% in the first quarter of 2015 and 3.48% in the second quarter of 2014. |
▪ | Return on average shareholders' equity for the quarter was 10.86% and return on average assets was 1.06%. Excluding merger-related expenses (net of tax) in the first half of 2015 and a bargain purchase gain in the first quarter of 2015, return on average shareholders' equity for the current quarter was 12.8% and return on average assets was 1.3%, compared with 12.5% and 1.2%, respectively, in the first quarter of 2015. |
▪ | Average interest-earning assets of $4.27 billion increased $792.7 million, or 22.8% from March 31, 2015. Approximately 70% of the total increase in average interest-earning assets is the result of the Simplicity merger completed on March 1, 2015. |
▪ | Non-interest bearing commercial and consumer transaction and savings deposits increased $82.2 million, or 26.9%, in the quarter. |
• | Segment results: |
◦ | Commercial and Consumer Banking |
▪ | Excluding after-tax merger-related expenses in the first half of 2015 and a bargain purchase gain we recognized with the Simplicity merger, the Commercial and Consumer Banking segment recorded net income of $5.0 million for the current quarter compared to net income of $1.2 million for the first quarter of 2015, mostly due to higher interest income on higher average balances of loans and a lower provision for credit losses. |
▪ | Loans held for investment balances of $2.90 billion increased $72.5 million, or 2.6%, from March 31, 2015. |
▪ | Total deposit balances of $3.32 billion decreased $21.6 million, or 0.6%, from March 31, 2015. However, total commercial and consumer transaction and savings deposits increased $63.9 million, or 2.9% and noninterest-bearing commercial and consumer transaction and savings deposits increased $82.2 million, or 26.9%, in the quarter. |
▪ | We opened a de novo retail deposit branch in the Seattle area during the quarter. |
▪ | Mortgage Banking segment net income was $9.5 million for the quarter compared to net income of $10.3 million for the first quarter of 2015. |
▪ | Single family mortgage closed loan volume was $2.02 billion, up 25.9% from the first quarter of 2015 and up 83.8% from the second quarter of 2014. |
▪ | Single family mortgage interest rate lock commitments were $1.88 billion, down $18.3 million, or 1.0%, from the first quarter and up $681.3 million, or 56.7%, from the second quarter of 2014. |
▪ | The portfolio of single family loans serviced for others increased to $12.98 billion at June 30, 2015, up 9.0% from $11.91 billion at March 31, 2015. |
▪ | Again in the second quarter, HomeStreet was the number one originator by volume of purchase mortgages in the Pacific Northwest (Washington, Oregon and Idaho) and in the Puget Sound region, based on the combined originations of HomeStreet and loans originated through an affiliated business arrangement known as WMS Series LLC. |
At June 30, 2015* | Bank | Company | For Minimum Capital Adequacy Purposes | To Be Categorized As “Well Capitalized” Under Prompt Corrective Action Provisions | ||||||||
Tier 1 leverage capital (to average assets) | 9.46 | % | 9.87 | % | 4.0 | % | 5.0 | % | ||||
Common equity risk-based capital (to risk-weighted assets) | 13.17 | % | 10.69 | % | 4.5 | % | 6.5 | % | ||||
Tier 1 risk-based capital (to risk-weighted assets) | 13.17 | % | 12.05 | % | 6.0 | % | 8.0 | % | ||||
Total risk-based capital (to risk-weighted assets) | 13.97 | % | 12.75 | % | 8.0 | % | 10.0 | % |
Contact: | Investor Relations & Media: | |
HomeStreet, Inc. | ||
Mark K. Mason (206) 442-5380 | ||
Mark.Mason@HomeStreet.com | ||
http://ir.homestreet.com |
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
(dollars in thousands, except share data) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||||||||||||||||||||
Income statement data (for the period ended): | ||||||||||||||||||||||||||||
Net interest income | $ | 38,230 | $ | 30,734 | $ | 27,502 | $ | 25,308 | $ | 23,147 | $ | 68,964 | $ | 45,859 | ||||||||||||||
Provision (reversal of provision) for credit losses | 500 | 3,000 | 500 | — | — | 3,500 | (1,500 | ) | ||||||||||||||||||||
Noninterest income | 72,987 | 75,373 | 51,487 | 45,813 | 53,650 | 148,360 | 88,357 | |||||||||||||||||||||
Noninterest expense | 92,335 | 89,482 | 68,791 | 64,158 | 62,971 | 181,817 | 119,062 | |||||||||||||||||||||
Merger-related expenses (included in noninterest expense) | 3,208 | 12,165 | 889 | 722 | 606 | 15,373 | 1,444 | |||||||||||||||||||||
Net income before taxes | 18,382 | 13,625 | 9,698 | 6,963 | 13,826 | 32,007 | 16,654 | |||||||||||||||||||||
Income tax expense | 6,006 | 3,321 | 4,077 | 1,988 | 4,464 | 9,327 | 4,991 | |||||||||||||||||||||
Net income | $ | 12,376 | $ | 10,304 | $ | 5,621 | $ | 4,975 | $ | 9,362 | $ | 22,680 | $ | 11,663 | ||||||||||||||
Basic earnings per common share | $ | 0.56 | $ | 0.60 | $ | 0.38 | $ | 0.34 | $ | 0.63 | $ | 1.16 | $ | 0.79 | ||||||||||||||
Diluted earnings per common share | $ | 0.56 | $ | 0.59 | $ | 0.38 | $ | 0.33 | $ | 0.63 | $ | 1.14 | $ | 0.78 | ||||||||||||||
Common shares outstanding | 22,065,249 | 22,038,748 | 14,856,611 | 14,852,971 | 14,849,692 | 22,065,249 | 14,849,692 | |||||||||||||||||||||
Weighted average common shares | ||||||||||||||||||||||||||||
Basic | 22,028,539 | 17,158,303 | 14,811,699 | 14,805,780 | 14,800,853 | 19,593,421 | 14,792,638 | |||||||||||||||||||||
Diluted | 22,292,734 | 17,355,076 | 14,973,222 | 14,968,238 | 14,954,998 | 19,823,905 | 14,956,079 | |||||||||||||||||||||
Dividends per share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.11 | ||||||||||||||
Book value per share | $ | 20.29 | $ | 19.94 | $ | 20.34 | $ | 19.83 | $ | 19.41 | $ | 20.29 | $ | 19.41 | ||||||||||||||
Tangible book value per share (1) | $ | 19.35 | $ | 18.97 | $ | 19.39 | $ | 18.86 | $ | 18.42 | $ | 19.35 | $ | 18.42 | ||||||||||||||
Financial position (at period end): | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 46,197 | $ | 56,864 | $ | 30,502 | $ | 34,687 | $ | 74,991 | $ | 46,197 | $ | 74,991 | ||||||||||||||
Investment securities | 509,545 | 476,102 | 455,332 | 449,948 | 454,966 | 509,545 | 454,966 | |||||||||||||||||||||
Loans held for sale | 972,183 | 865,322 | 621,235 | 698,111 | 549,440 | 972,183 | 549,440 | |||||||||||||||||||||
Loans held for investment, net | 2,900,675 | 2,828,177 | 2,099,129 | 1,964,762 | 1,812,895 | 2,900,675 | 1,812,895 | |||||||||||||||||||||
Mortgage servicing rights | 153,237 | 121,722 | 123,324 | 124,593 | 117,991 | 153,237 | 117,991 | |||||||||||||||||||||
Other real estate owned | 11,428 | 11,589 | 9,448 | 10,478 | 11,083 | 11,428 | 11,083 | |||||||||||||||||||||
Total assets | 4,866,248 | 4,604,403 | 3,535,090 | 3,474,656 | 3,235,676 | 4,866,248 | 3,235,676 | |||||||||||||||||||||
Deposits | 3,322,653 | 3,344,223 | 2,445,430 | 2,425,458 | 2,417,712 | 3,322,653 | 2,417,712 | |||||||||||||||||||||
FHLB advances | 922,832 | 669,419 | 597,590 | 598,590 | 384,090 | 922,832 | 384,090 | |||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | 9,450 | 50,000 | 14,225 | 14,681 | — | 14,681 | |||||||||||||||||||||
Shareholders’ equity | 447,726 | 439,395 | 302,238 | 294,568 | 288,249 | 447,726 | 288,249 | |||||||||||||||||||||
Financial position (averages): | ||||||||||||||||||||||||||||
Investment securities | $ | 506,904 | $ | 462,762 | $ | 454,127 | $ | 457,545 | $ | 447,458 | $ | 484,955 | $ | 462,338 | ||||||||||||||
Loans held for investment | 2,861,223 | 2,370,763 | 2,044,873 | 1,917,503 | 1,766,788 | 2,617,347 | 1,798,384 | |||||||||||||||||||||
Total interest-earning assets | 4,266,382 | 3,473,652 | 3,140,708 | 2,952,916 | 2,723,687 | 3,872,206 | 2,689,075 | |||||||||||||||||||||
Total interest-bearing deposits | 2,626,925 | 2,205,585 | 1,892,399 | 1,861,164 | 1,900,681 | 2,417,420 | 1,890,576 | |||||||||||||||||||||
FHLB advances | 783,801 | 515,958 | 606,753 | 442,409 | 350,271 | 650,620 | 337,125 | |||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,336 | 41,734 | 23,338 | 11,149 | 1,129 | 22,932 | 568 | |||||||||||||||||||||
Total interest-bearing liabilities | 3,476,919 | 2,825,134 | 2,584,347 | 2,376,579 | 2,313,937 | 3,152,829 | 2,291,049 | |||||||||||||||||||||
Shareholders’ equity | 455,721 | 370,008 | 305,068 | 295,229 | 284,365 | 413,102 | 278,513 |
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
(dollars in thousands, except share data) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||||||||||||||||||||
Financial performance: | ||||||||||||||||||||||||||||
Return on average shareholders’ equity (2) | 10.86 | % | 11.14 | % | 7.37 | % | 6.74 | % | 13.17 | % | 10.98 | % | 8.38 | % | ||||||||||||||
Return on average tangible shareholders' equity(1) | 11.39 | % | 11.67 | % | 7.73 | % | 7.09 | % | 13.85 | % | 11.51 | % | 8.82 | % | ||||||||||||||
Return on average assets | 1.06 | % | 1.08 | % | 0.65 | % | 0.61 | % | 1.22 | % | 1.07 | % | 0.77 | % | ||||||||||||||
Net interest margin (3) | 3.63 | % | 3.60 | % | 3.53 | % | 3.50 | % | 3.48 | % | 3.62 | % | 3.49 | % | ||||||||||||||
Efficiency ratio (4) | 83.02 | % | 84.33 | % | 87.09 | % | 90.21 | % | 82.00 | % | 83.66 | % | 88.71 | % | ||||||||||||||
Asset quality: | ||||||||||||||||||||||||||||
Allowance for credit losses | $ | 26,448 | $ | 25,628 | $ | 22,524 | $ | 22,111 | $ | 22,168 | $ | 26,448 | $ | 22,168 | ||||||||||||||
Allowance for loan losses/total loans(5) | 0.88 | % | 0.87 | % | 1.04 | % | 1.10 | % | 1.19 | % | 0.88 | % | 1.19 | % | ||||||||||||||
Allowance for loan losses/nonaccrual loans | 120.97 | % | 117.48 | % | 137.51 | % | 109.75 | % | 103.44 | % | 120.97 | % | 103.44 | % | ||||||||||||||
Total nonaccrual loans(6)(7) | $ | 21,308 | $ | 21,209 | $ | 16,014 | $ | 19,906 | $ | 21,197 | $ | 21,308 | 21,197 | |||||||||||||||
Nonaccrual loans/total loans | 0.73 | % | 0.74 | % | 0.75 | % | 1.00 | % | 1.16 | % | 0.73 | % | 1.16 | % | ||||||||||||||
Other real estate owned | $ | 11,428 | $ | 11,589 | $ | 9,448 | $ | 10,478 | $ | 11,083 | $ | 11,428 | $ | 11,083 | ||||||||||||||
Total nonperforming assets(7) | $ | 32,736 | $ | 32,798 | $ | 25,462 | $ | 30,384 | $ | 32,280 | $ | 32,736 | $ | 32,280 | ||||||||||||||
Nonperforming assets/total assets | 0.67 | % | 0.71 | % | 0.72 | % | 0.87 | % | 1.00 | % | 0.67 | % | 1.00 | % | ||||||||||||||
Net (recoveries) charge-offs | $ | (320 | ) | $ | (104 | ) | $ | 87 | $ | 57 | $ | 149 | $ | (424 | ) | $ | 421 | |||||||||||
Regulatory capital ratios for the Bank: | ||||||||||||||||||||||||||||
Basel III - Tier 1 leverage capital (to average assets) | 9.46 | % | (8) | 11.47 | % | (9) | NA | NA | NA | 9.46 | % | (8) | NA | |||||||||||||||
Basel III - Tier 1 common equity risk-based capital (to risk-weighted assets) | 13.17 | % | (8) | 13.75 | % | NA | NA | NA | 13.17 | % | (8) | NA | ||||||||||||||||
Basel III - Tier 1 risk-based capital (to risk-weighted assets) | 13.17 | % | (8) | 13.75 | % | NA | NA | NA | 13.17 | % | (8) | NA | ||||||||||||||||
Basel III - Total risk-based capital (to risk-weighted assets) | 13.97 | % | (8) | 14.57 | % | NA | NA | NA | 13.97 | % | (8) | NA | ||||||||||||||||
Basel I - Tier 1 leverage capital (to average assets) | NA | NA | 9.38 | % | 9.63 | % | 10.17 | % | NA | 10.17 | % | |||||||||||||||||
Basel I - Tier 1 risk-based capital (to risk-weighted assets) | NA | NA | 13.10 | % | 13.03 | % | 13.84 | % | NA | 13.84 | % | |||||||||||||||||
Basel I - Total risk-based capital (to risk-weighted assets) | NA | NA | 14.03 | % | 13.95 | % | 14.84 | % | NA | 14.84 | % | |||||||||||||||||
Regulatory capital ratios for the Company: | ||||||||||||||||||||||||||||
Basel III - Tier 1 leverage capital (to average assets) | 9.87 | % | (8) | 11.95 | % | (9) | NA | NA | NA | 9.87 | % | (8) | NA | |||||||||||||||
Basel III - Tier 1 common equity risk-based capital (to risk-weighted assets) | 10.69 | % | (8) | 11.12 | % | NA | NA | NA | 10.69 | % | (8) | NA | ||||||||||||||||
Basel III - Tier 1 risk-based capital (to risk-weighted assets) | 12.05 | % | (8) | 12.55 | % | NA | NA | NA | 12.05 | % | (8) | NA | ||||||||||||||||
Basel III - Total risk-based capital (to risk-weighted assets) | 12.75 | % | (8) | 13.26 | % | NA | NA | NA | 12.75 | % | (8) | NA | ||||||||||||||||
Other data: | ||||||||||||||||||||||||||||
Full-time equivalent employees (ending) | 1,964 | 1,829 | 1,611 | 1,598 | 1,546 | 1,964 | 1,546 |
(1) | Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For additional information on these ratios and for corresponding reconciliations to GAAP financial measures, see Non-GAAP Financial Measures in this earnings release. |
(2) | Net earnings available to common shareholders (annualized) divided by average shareholders’ equity. |
(3) | Net interest income divided by total average interest-earning assets on a tax equivalent basis. |
(4) | Noninterest expense divided by total net revenue (net interest income and noninterest income). |
(5) | Includes loans acquired with bank acquisitions. Excluding acquired loans, allowance for loan losses /total loans was 1.16%, 1.19%, 1.10%, 1.18% and 1.31% at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
(6) | Generally, loans are placed on nonaccrual status when they are 90 or more days past due. |
(7) | Includes $1.2 million, $1.4 million, $4.4 million, $6.3 million and $6.5 million of nonperforming loans at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively, which are guaranteed by the SBA. |
(8) | Regulatory capital ratios at June 30, 2015 are preliminary. On January 1, 2015, the Company and the Bank became subject to Basel III capital standards. Regulatory capital ratios under Basel I may not be comparative. |
(9) | March 31, 2015 Tier 1 leverage capital (to average assets) includes average assets from the Simplicity merger for one month. If the Simplicity merger had occurred on January 1, 2015, the Bank's Tier 1 leverage capital would have been 9.95% and the Company's Tier 1 leverage capital would have been 10.38%. |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||
(in thousands, except share data) | 2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Loans | $ | 38,944 | $ | 23,419 | 66 | % | $ | 70,591 | $ | 46,102 | 53 | % | ||||||||||
Investment securities | 3,278 | 2,664 | 23 | 5,672 | 5,634 | 1 | ||||||||||||||||
Other | 218 | 142 | 54 | 423 | 299 | 41 | ||||||||||||||||
42,440 | 26,225 | 62 | 76,686 | 52,035 | 47 | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 3,005 | 2,356 | 28 | 5,587 | 4,716 | 18 | ||||||||||||||||
Federal Home Loan Bank advances | 906 | 444 | 104 | 1,518 | 857 | 77 | ||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 3 | 1 | 200 | 8 | 1 | 700 | ||||||||||||||||
Long-term debt | 272 | 265 | 3 | 537 | 580 | (7 | ) | |||||||||||||||
Other | 24 | 12 | 100 | 72 | 22 | 227 | ||||||||||||||||
4,210 | 3,078 | 37 | 7,722 | 6,176 | 25 | |||||||||||||||||
Net interest income | 38,230 | 23,147 | 65 | 68,964 | 45,859 | 50 | ||||||||||||||||
Provision (reversal of provision) for credit losses | 500 | — | NM | 3,500 | (1,500 | ) | NM | |||||||||||||||
Net interest income after provision for credit losses | 37,730 | 23,147 | 63 | 65,464 | 47,359 | 38 | ||||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Net gain on mortgage loan origination and sale activities | 69,974 | 41,794 | 67 | 131,861 | 67,304 | 96 | ||||||||||||||||
Mortgage servicing income | 1,831 | 10,184 | (82 | ) | 6,128 | 18,129 | (66 | ) | ||||||||||||||
Income from WMS Series LLC | 484 | 246 | 97 | 1,048 | 53 | NM | ||||||||||||||||
Gain (loss) on debt extinguishment | — | 11 | NM | — | (575 | ) | NM | |||||||||||||||
Depositor and other retail banking fees | 1,399 | 917 | 53 | 2,538 | 1,732 | 47 | ||||||||||||||||
Insurance agency commissions | 291 | 232 | 25 | 706 | 636 | 11 | ||||||||||||||||
Gain (loss) on sale of investment securities available for sale | — | (20 | ) | (100 | ) | — | 693 | (100 | ) | |||||||||||||
Bargain purchase gain (adjustment) | (79 | ) | — | NM | 6,549 | — | NM | |||||||||||||||
Other | (913 | ) | 286 | (419 | ) | (470 | ) | 385 | (222 | ) | ||||||||||||
72,987 | 53,650 | 36 | 148,360 | 88,357 | 68 | |||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Salaries and related costs | 61,654 | 40,606 | 52 | 119,247 | 76,077 | 57 | ||||||||||||||||
General and administrative | 14,502 | 11,145 | 30 | 27,663 | 21,267 | 30 | ||||||||||||||||
Legal | 577 | 542 | 6 | 1,044 | 941 | 11 | ||||||||||||||||
Consulting | 813 | 603 | 35 | 6,378 | 1,554 | 310 | ||||||||||||||||
Federal Deposit Insurance Corporation assessments | 861 | 572 | 51 | 1,386 | 1,192 | 16 | ||||||||||||||||
Occupancy | 6,107 | 4,675 | 31 | 11,947 | 9,107 | 31 | ||||||||||||||||
Information services | 7,714 | 4,862 | 59 | 13,834 | 9,377 | 48 | ||||||||||||||||
Net cost (income) from operation and sale of other real estate owned | 107 | (34 | ) | (415 | ) | 318 | (453 | ) | NM | |||||||||||||
92,335 | 62,971 | 47 | 181,817 | 119,062 | 53 | |||||||||||||||||
Income before income taxes | 18,382 | 13,826 | 33 | 32,007 | 16,654 | 92 | ||||||||||||||||
Income tax expense | 6,006 | 4,464 | 35 | 9,327 | 4,991 | 87 | ||||||||||||||||
NET INCOME | $ | 12,376 | $ | 9,362 | 32 | $ | 22,680 | $ | 11,663 | 94 | ||||||||||||
Basic income per share | $ | 0.56 | $ | 0.63 | (11 | ) | $ | 1.16 | $ | 0.79 | 47 | |||||||||||
Diluted income per share | $ | 0.56 | $ | 0.63 | (11 | ) | $ | 1.14 | $ | 0.78 | 46 | |||||||||||
Basic weighted average number of shares outstanding | 22,028,539 | 14,800,853 | 49 | 19,593,421 | 14,792,638 | 32 | ||||||||||||||||
Diluted weighted average number of shares outstanding | 22,292,734 | 14,954,998 | 49 | 19,823,905 | 14,956,079 | 33 |
Quarter Ended | ||||||||||||||||||||
(in thousands, except share data) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 38,944 | $ | 31,647 | $ | 28,242 | $ | 25,763 | $ | 23,419 | ||||||||||
Investment securities | 3,278 | 2,394 | 2,366 | 2,565 | 2,664 | |||||||||||||||
Other | 218 | 205 | 172 | 150 | 142 | |||||||||||||||
42,440 | 34,246 | 30,780 | 28,478 | 26,225 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 3,005 | 2,582 | 2,351 | 2,364 | 2,356 | |||||||||||||||
Federal Home Loan Bank advances | 906 | 612 | 614 | 509 | 444 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 3 | 5 | 15 | 6 | 1 | |||||||||||||||
Long-term debt | 272 | 265 | 269 | 271 | 265 | |||||||||||||||
Other | 24 | 48 | 29 | 20 | 12 | |||||||||||||||
4,210 | 3,512 | 3,278 | 3,170 | 3,078 | ||||||||||||||||
Net interest income | 38,230 | 30,734 | 27,502 | 25,308 | 23,147 | |||||||||||||||
Provision for credit losses | 500 | 3,000 | 500 | — | — | |||||||||||||||
Net interest income after provision for credit losses | 37,730 | 27,734 | 27,002 | 25,308 | 23,147 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Net gain on mortgage loan origination and sale activities | 69,974 | 61,887 | 39,176 | 37,642 | 41,794 | |||||||||||||||
Mortgage servicing income | 1,831 | 4,297 | 9,808 | 6,155 | 10,184 | |||||||||||||||
Income (loss) from WMS Series LLC | 484 | 564 | 170 | (122 | ) | 246 | ||||||||||||||
Gain on debt extinguishment | — | — | — | 2 | 11 | |||||||||||||||
Depositor and other retail banking fees | 1,399 | 1,139 | 896 | 944 | 917 | |||||||||||||||
Insurance agency commissions | 291 | 415 | 261 | 256 | 232 | |||||||||||||||
Gain (loss) on sale of investment securities available for sale | — | — | 1,185 | 480 | (20 | ) | ||||||||||||||
Bargain purchase gain (adjustment) | (79 | ) | 6,628 | — | — | — | ||||||||||||||
Other | (913 | ) | 443 | (9 | ) | 456 | 286 | |||||||||||||
72,987 | 75,373 | 51,487 | 45,813 | 53,650 | ||||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and related costs | 61,654 | 57,593 | 44,706 | 42,604 | 40,606 | |||||||||||||||
General and administrative | 14,502 | 13,161 | 11,240 | 10,326 | 11,145 | |||||||||||||||
Legal | 577 | 467 | 500 | 630 | 542 | |||||||||||||||
Consulting | 813 | 5,565 | 1,042 | 628 | 603 | |||||||||||||||
Federal Deposit Insurance Corporation assessments | 861 | 525 | 442 | 682 | 572 | |||||||||||||||
Occupancy | 6,107 | 5,840 | 4,556 | 4,935 | 4,675 | |||||||||||||||
Information services | 7,714 | 6,120 | 6,455 | 4,220 | 4,862 | |||||||||||||||
Net cost (income) from operation and sale of other real estate owned | 107 | 211 | (150 | ) | 133 | (34 | ) | |||||||||||||
92,335 | 89,482 | 68,791 | 64,158 | 62,971 | ||||||||||||||||
Income before income tax expense | 18,382 | 13,625 | 9,698 | 6,963 | 13,826 | |||||||||||||||
Income tax expense | 6,006 | 3,321 | 4,077 | 1,988 | 4,464 | |||||||||||||||
NET INCOME | $ | 12,376 | $ | 10,304 | $ | 5,621 | $ | 4,975 | $ | 9,362 | ||||||||||
Basic income per share | $ | 0.56 | $ | 0.60 | $ | 0.38 | $ | 0.34 | $ | 0.63 | ||||||||||
Diluted income per share | $ | 0.56 | $ | 0.59 | $ | 0.38 | $ | 0.33 | $ | 0.63 | ||||||||||
Basic weighted average number of shares outstanding | 22,028,539 | 17,158,303 | 14,811,699 | 14,805,780 | 14,800,853 | |||||||||||||||
Diluted weighted average number of shares outstanding | 22,292,734 | 17,355,076 | 14,973,222 | 14,968,238 | 14,954,998 |
(in thousands, except share data) | Jun. 30, 2015 | Dec. 31, 2014 | % Change | ||||||||
Assets: | |||||||||||
Cash and cash equivalents (including interest-earning instruments of $33,787 and $10,271) | $ | 46,197 | $ | 30,502 | 51 | % | |||||
Investment securities (includes $482,832 and $427,326 carried at fair value) | 509,545 | 455,332 | 12 | ||||||||
Loans held for sale (includes $955,726 and $610,350 carried at fair value) | 972,183 | 621,235 | 56 | ||||||||
Loans held for investment (net of allowance for loan losses of $25,777 and $22,021; includes $38,224 and $0 carried at fair value) | 2,900,675 | 2,099,129 | 38 | ||||||||
Mortgage servicing rights (includes $140,588 and $112,439 carried at fair value) | 153,237 | 123,324 | 24 | ||||||||
Other real estate owned | 11,428 | 9,448 | 21 | ||||||||
Federal Home Loan Bank stock, at cost | 40,742 | 33,915 | 20 | ||||||||
Premises and equipment, net | 58,111 | 45,251 | 28 | ||||||||
Goodwill | 11,945 | 11,945 | — | ||||||||
Other assets | 162,185 | 105,009 | 54 | ||||||||
Total assets | $ | 4,866,248 | $ | 3,535,090 | 38 | ||||||
Liabilities and shareholders’ equity: | |||||||||||
Liabilities: | |||||||||||
Deposits | 3,322,653 | $ | 2,445,430 | 36 | |||||||
Federal Home Loan Bank advances | 922,832 | 597,590 | 54 | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | 50,000 | (100 | ) | |||||||
Accounts payable and other liabilities | 111,180 | 77,975 | 43 | ||||||||
Long-term debt | 61,857 | 61,857 | — | ||||||||
Total liabilities | 4,418,522 | 3,232,852 | 37 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, no par value | |||||||||||
Authorized 10,000 shares | |||||||||||
Issued and outstanding, 0 shares and 0 shares | — | — | — | ||||||||
Common stock, no par value | |||||||||||
Authorized 160,000,000 shares | |||||||||||
Issued and outstanding, 22,065,249 shares and 14,856,611 shares | 511 | 511 | — | ||||||||
Additional paid-in capital | 221,551 | 96,615 | 129 | ||||||||
Retained earnings | 226,246 | 203,566 | 11 | ||||||||
Accumulated other comprehensive income | (582 | ) | 1,546 | (138 | ) | ||||||
Total shareholders’ equity | 447,726 | 302,238 | 48 | ||||||||
Total liabilities and shareholders’ equity | $ | 4,866,248 | $ | 3,535,090 | 38 |
(in thousands, except share data) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 46,197 | $ | 56,864 | $ | 30,502 | $ | 34,687 | $ | 74,991 | ||||||||||
Investment securities | 509,545 | 476,102 | 455,332 | 449,948 | 454,966 | |||||||||||||||
Loans held for sale | 972,183 | 865,322 | 621,235 | 698,111 | 549,440 | |||||||||||||||
Loans held for investment, net | 2,900,675 | 2,828,177 | 2,099,129 | 1,964,762 | 1,812,895 | |||||||||||||||
Mortgage servicing rights | 153,237 | 121,722 | 123,324 | 124,593 | 117,991 | |||||||||||||||
Other real estate owned | 11,428 | 11,589 | 9,448 | 10,478 | 11,083 | |||||||||||||||
Federal Home Loan Bank stock, at cost | 40,742 | 34,996 | 33,915 | 34,271 | 34,618 | |||||||||||||||
Premises and equipment, net | 58,111 | 49,808 | 45,251 | 44,476 | 43,896 | |||||||||||||||
Goodwill | 11,945 | 11,945 | 11,945 | 11,945 | 11,945 | |||||||||||||||
Other assets | 162,185 | 147,878 | 105,009 | 101,385 | 123,851 | |||||||||||||||
Total assets | $ | 4,866,248 | $ | 4,604,403 | $ | 3,535,090 | $ | 3,474,656 | $ | 3,235,676 | ||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | $ | 3,322,653 | $ | 3,344,223 | $ | 2,445,430 | $ | 2,425,458 | $ | 2,417,712 | ||||||||||
Federal Home Loan Bank advances | 922,832 | 669,419 | 597,590 | 598,590 | 384,090 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | — | 9,450 | 50,000 | 14,225 | 14,681 | |||||||||||||||
Accounts payable and other liabilities | 111,180 | 80,059 | 77,975 | 79,958 | 69,087 | |||||||||||||||
Long-term debt | 61,857 | 61,857 | 61,857 | 61,857 | 61,857 | |||||||||||||||
Total liabilities | 4,418,522 | 4,165,008 | 3,232,852 | 3,180,088 | 2,947,427 | |||||||||||||||
Shareholders’ equity: | ||||||||||||||||||||
Preferred stock, no par value | ||||||||||||||||||||
Authorized 10,000 shares | — | — | — | — | — | |||||||||||||||
Common stock, no par value | ||||||||||||||||||||
Authorized 160,000,000 shares | 511 | 511 | 511 | 511 | 511 | |||||||||||||||
Additional paid-in capital | 221,551 | 221,301 | 96,615 | 96,650 | 95,923 | |||||||||||||||
Retained earnings | 226,246 | 213,870 | 203,566 | 197,945 | 192,972 | |||||||||||||||
Accumulated other comprehensive income (loss) | (582 | ) | 3,713 | 1,546 | (538 | ) | (1,157 | ) | ||||||||||||
Total shareholders’ equity | 447,726 | 439,395 | 302,238 | 294,568 | 288,249 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 4,866,248 | $ | 4,604,403 | $ | 3,535,090 | $ | 3,474,656 | $ | 3,235,676 |
Quarter Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets: (1) | ||||||||||||||||||||||
Cash and cash equivalents | $ | 36,295 | $ | 17 | 0.19 | % | $ | 31,545 | $ | 14 | 0.18 | % | ||||||||||
Investment securities | 506,904 | 3,922 | 3.10 | % | 447,458 | 3,264 | 2.93 | % | ||||||||||||||
Loans held for sale | 861,960 | 7,952 | 3.69 | % | 477,896 | 4,649 | 3.90 | % | ||||||||||||||
Loans held for investment | 2,861,223 | 31,036 | 4.34 | % | 1,766,788 | 18,792 | 4.27 | % | ||||||||||||||
Total interest-earning assets | 4,266,382 | 42,927 | 4.03 | % | 2,723,687 | 26,719 | 3.93 | % | ||||||||||||||
Noninterest-earning assets (2) | 403,591 | 338,642 | ||||||||||||||||||||
Total assets | $ | 4,669,973 | $ | 3,062,329 | ||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand accounts | $ | 266,937 | 329 | 0.49 | % | $ | 276,887 | 191 | 0.28 | % | ||||||||||||
Savings accounts | 311,188 | 277 | 0.36 | % | 166,127 | 218 | 0.53 | % | ||||||||||||||
Money market accounts | 1,147,641 | 1,240 | 0.43 | % | 979,610 | 1,081 | 0.44 | % | ||||||||||||||
Certificate accounts | 901,159 | 1,184 | 0.53 | % | 478,057 | 868 | 0.73 | % | ||||||||||||||
Total interest-bearing deposits | 2,626,925 | 3,030 | 0.46 | % | 1,900,681 | 2,358 | 0.50 | % | ||||||||||||||
FHLB advances | 783,801 | 906 | 0.46 | % | 350,271 | 444 | 0.36 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,336 | 2 | 0.22 | % | 1,129 | 1 | 0.36 | % | ||||||||||||||
Long-term debt | 61,857 | 272 | 1.76 | % | 61,856 | 266 | 1.72 | % | ||||||||||||||
Total interest-bearing liabilities | 3,476,919 | 4,210 | 0.49 | % | 2,313,937 | 3,069 | 0.53 | % | ||||||||||||||
Noninterest-bearing liabilities | 737,333 | 464,027 | ||||||||||||||||||||
Total liabilities | 4,214,252 | 2,777,964 | ||||||||||||||||||||
Shareholders’ equity | 455,721 | 284,365 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 4,669,973 | $ | 3,062,329 | ||||||||||||||||||
Net interest income (3) | $ | 38,717 | $ | 23,650 | ||||||||||||||||||
Net interest spread | 3.54 | % | 3.40 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.09 | % | 0.08 | % | ||||||||||||||||||
Net interest margin | 3.63 | % | 3.48 | % |
(1) | The average balances of nonaccrual assets and related income, if any, are included in their respective categories. |
(2) | Includes loan balances that have been foreclosed and are now reclassified to other real estate owned. |
(3) | Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $487 thousand and $503 thousand for the quarters ended June 30, 2015 and June 30, 2014, respectively. The estimated federal statutory tax rate was 35% for the periods presented. |
Six Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets: (1) | ||||||||||||||||||||||
Cash and cash equivalents | $ | 42,799 | $ | 42 | 0.19 | % | $ | 32,400 | $ | 32 | 0.20 | % | ||||||||||
Investment securities | 484,955 | 6,902 | 2.84 | % | 462,338 | 6,864 | 2.99 | % | ||||||||||||||
Loans held for sale | 727,105 | 13,616 | 3.76 | % | 395,953 | 7,470 | 3.77 | % | ||||||||||||||
Loans held for investment | 2,617,347 | 57,059 | 4.38 | % | 1,798,384 | 38,687 | 4.30 | % | ||||||||||||||
Total interest-earning assets | 3,872,206 | 77,619 | 4.02 | % | 2,689,075 | 53,053 | 3.98 | % | ||||||||||||||
Noninterest-earning assets (2) | 372,737 | 353,433 | ||||||||||||||||||||
Total assets | $ | 4,244,943 | $ | 3,042,508 | ||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand accounts | $ | 221,843 | 509 | 0.45 | % | $ | 261,401 | 356 | 0.27 | % | ||||||||||||
Savings accounts | 272,102 | 542 | 0.41 | % | 162,854 | 419 | 0.52 | % | ||||||||||||||
Money market accounts | 1,106,334 | 2,375 | 0.43 | % | 952,770 | 2,101 | 0.44 | % | ||||||||||||||
Certificate accounts | 817,141 | 2,212 | 0.55 | % | 513,551 | 1,842 | 0.72 | % | ||||||||||||||
Total interest-bearing deposits | 2,417,420 | 5,638 | 0.47 | % | 1,890,576 | 4,718 | 0.50 | % | ||||||||||||||
FHLB advances | 650,620 | 1,519 | 0.47 | % | 337,125 | 867 | 0.52 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 22,932 | 28 | 0.24 | % | 568 | 1 | 0.36 | % | ||||||||||||||
Long-term debt | 61,857 | 536 | 1.75 | % | 62,780 | 581 | 1.87 | % | ||||||||||||||
Total interest-bearing liabilities | 3,152,829 | 7,721 | 0.49 | % | 2,291,049 | 6,167 | 0.54 | % | ||||||||||||||
Noninterest-bearing liabilities | 679,012 | 472,946 | ||||||||||||||||||||
Total liabilities | 3,831,841 | 2,763,995 | ||||||||||||||||||||
Shareholders’ equity | 413,102 | 278,513 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 4,244,943 | $ | 3,042,508 | ||||||||||||||||||
Net interest income (3) | $ | 69,898 | $ | 46,886 | ||||||||||||||||||
Net interest spread | 3.53 | % | 3.44 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.09 | % | 0.05 | % | ||||||||||||||||||
Net interest margin | 3.62 | % | 3.49 | % |
(1) | The average balances of nonaccrual assets and related income, if any, are included in their respective categories. |
(2) | Includes loan balances that have been foreclosed and are now reclassified to other real estate owned. |
(3) | Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $934 thousand and $1.0 million for the six months ended ended June 30, 2015 and June 30, 2014, respectively. The estimated federal statutory tax rate was 35% for the periods presented. |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Net interest income | $ | 30,645 | $ | 25,107 | $ | 22,187 | $ | 20,163 | $ | 19,403 | ||||||||||
Provision for credit losses | 500 | 3,000 | 500 | — | — | |||||||||||||||
Noninterest income | 3,624 | 10,081 | 5,434 | 3,660 | 6,614 | |||||||||||||||
Noninterest expense | 29,280 | 35,666 | 21,155 | 18,930 | 20,434 | |||||||||||||||
Income (loss) before income taxes | 4,489 | (3,478 | ) | 5,966 | 4,893 | 5,583 | ||||||||||||||
Income tax expense (benefit) | 1,635 | (3,464 | ) | 2,621 | 1,359 | 1,830 | ||||||||||||||
Net income (loss) | $ | 2,854 | $ | (14 | ) | $ | 3,345 | $ | 3,534 | $ | 3,753 | |||||||||
Net income, excluding merger-related expenses (net of tax) and bargain purchase gain (1) | $ | 5,019 | $ | 1,242 | $ | 3,923 | $ | 4,003 | $ | 4,147 | ||||||||||
Efficiency ratio (2) | 85.44 | % | 101.36 | % | 76.59 | % | 79.46 | % | 78.54 | % | ||||||||||
Full-time equivalent employees (ending) | 757 | 768 | 608 | 605 | 599 | |||||||||||||||
Net gain on mortgage loan origination and sale activities: | ||||||||||||||||||||
Multifamily | 2,314 | 939 | 2,704 | 930 | 693 | |||||||||||||||
Other | 141 | 204 | (16 | ) | (101 | ) | 4,087 | |||||||||||||
$ | 2,455 | $ | 1,143 | $ | 2,688 | $ | 829 | $ | 4,780 | |||||||||||
Production volumes for sale to the secondary market: | ||||||||||||||||||||
Multifamily mortgage originations | $ | 79,789 | $ | 24,428 | $ | 57,135 | $ | 60,699 | $ | 23,105 | ||||||||||
Multifamily mortgage loans sold | 72,459 | 26,173 | 99,285 | 20,409 | 15,902 |
(1) | Commercial and Consumer Banking segment net income, excluding merger-related expenses, is a non-GAAP financial disclosure. The Company uses this non-GAAP financial measure to provide meaningful supplemental information regarding the Company's operational performance and to enhance investors' overall understanding of such financial performance. For corresponding reconciliations to GAAP financial measures, see Non-GAAP Financial Measures beginning on page 30 of this earnings release. |
(2) | Noninterest expense divided by total net revenue (net interest income and noninterest income). |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Servicing income, net: | ||||||||||||||||||||
Servicing fees and other | $ | 1,135 | $ | 886 | $ | 970 | $ | 1,289 | $ | 1,017 | ||||||||||
Amortization of multifamily MSRs | (476 | ) | (454 | ) | (429 | ) | (425 | ) | (434 | ) | ||||||||||
Commercial mortgage servicing income | $ | 659 | $ | 432 | $ | 541 | $ | 864 | $ | 583 |
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Commercial | ||||||||||||||||||||
Multifamily | $ | 840,051 | $ | 773,092 | $ | 752,640 | $ | 703,197 | $ | 704,997 | ||||||||||
Other | 83,982 | 83,574 | 82,354 | 86,589 | 97,996 | |||||||||||||||
Total commercial loans serviced for others | $ | 924,033 | $ | 856,666 | $ | 834,994 | $ | 789,786 | $ | 802,993 |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Beginning balance | $ | 11,013 | $ | 10,885 | $ | 9,116 | $ | 9,122 | $ | 9,095 | ||||||||||
Originations | 2,112 | 582 | 2,198 | 418 | 461 | |||||||||||||||
Amortization | (476 | ) | (454 | ) | (429 | ) | (424 | ) | (434 | ) | ||||||||||
Ending balance | $ | 12,649 | $ | 11,013 | $ | 10,885 | $ | 9,116 | $ | 9,122 | ||||||||||
Ratio of MSR carrying value to related loans serviced for others | 1.45 | % | 1.36 | % | 1.38 | % | 1.23 | % | 1.21 | % | ||||||||||
MSR servicing fee multiple (1) | 3.29 | 3.16 | 3.20 | 2.87 | 2.83 | |||||||||||||||
Weighted-average note rate (loans serviced for others) | 4.89 | % | 5.14 | % | 5.02 | % | 5.12 | % | 5.15 | % | ||||||||||
Weighted-average servicing fee (loans serviced for others) | 0.44 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % |
(1) | Represents the ratio of MSR carrying value to related loans serviced for others divided by the weighted-average servicing fee for loans serviced for others. |
(in thousands, except for duration data) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Available for sale: | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Residential | $ | 108,626 | $ | 114,175 | $ | 107,280 | $ | 110,837 | $ | 110,266 | ||||||||||
Commercial | 13,352 | 13,667 | 13,671 | 13,571 | 13,674 | |||||||||||||||
Municipal bonds | 137,250 | 122,434 | 122,334 | 123,041 | 125,813 | |||||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||||||
Residential | 80,612 | 58,476 | 43,166 | 54,887 | 56,767 | |||||||||||||||
Commercial | 19,271 | 19,794 | 20,486 | 15,633 | 16,021 | |||||||||||||||
Corporate debt securities | 82,698 | 79,769 | 79,400 | 72,114 | 72,420 | |||||||||||||||
U.S. Treasury | 41,023 | 41,015 | 40,989 | 42,013 | 42,010 | |||||||||||||||
Total available for sale | $ | 482,832 | $ | 449,330 | $ | 427,326 | $ | 432,096 | $ | 436,971 | ||||||||||
Held to maturity | 26,713 | 26,772 | 28,006 | 17,852 | 17,995 | |||||||||||||||
$ | 509,545 | $ | 476,102 | $ | 455,332 | $ | 449,948 | $ | 454,966 | |||||||||||
Weighted average duration in years | ||||||||||||||||||||
Available for sale | 4.6 | 4.4 | 4.6 | 5.0 | 4.5 |
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family | $ | 1,182,542 | (1) | $ | 1,198,605 | $ | 896,665 | $ | 788,232 | $ | 749,204 | |||||||||
Home equity and other | 216,635 | 205,200 | 135,598 | 138,276 | 136,181 | |||||||||||||||
1,399,177 | 1,403,805 | 1,032,263 | 926,508 | 885,385 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 547,571 | 535,546 | 523,464 | 530,335 | 476,411 | |||||||||||||||
Multifamily | 366,187 | 352,193 | 55,088 | 62,498 | 72,327 | |||||||||||||||
Construction/land development | 454,817 | 402,393 | 367,934 | 297,790 | 219,282 | |||||||||||||||
Commercial business | 166,216 | 164,259 | 147,449 | 173,226 | 185,177 | |||||||||||||||
1,534,791 | 1,454,391 | 1,093,935 | 1,063,849 | 953,197 | ||||||||||||||||
2,933,968 | 2,858,196 | 2,126,198 | 1,990,357 | 1,838,582 | ||||||||||||||||
Net deferred loan fees, costs and discounts | (7,516 | ) | (5,103 | ) | (5,048 | ) | (3,748 | ) | (3,761 | ) | ||||||||||
2,926,452 | 2,853,093 | 2,121,150 | 1,986,609 | 1,834,821 | ||||||||||||||||
Allowance for loan losses | (25,777 | ) | (24,916 | ) | (22,021 | ) | (21,847 | ) | (21,926 | ) | ||||||||||
$ | 2,900,675 | $ | 2,828,177 | $ | 2,099,129 | $ | 1,964,762 | $ | 1,812,895 |
(1) | Includes $38.2 million of single family loans that are carried at fair value. |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Beginning balance | $ | 25,628 | $ | 22,524 | $ | 22,111 | $ | 22,168 | $ | 22,317 | ||||||||||
Provision (reversal of provision) for credit losses | 500 | 3,000 | 500 | — | — | |||||||||||||||
(Charge-offs), net of recoveries | 320 | 104 | (87 | ) | (57 | ) | (149 | ) | ||||||||||||
Ending balance | $ | 26,448 | $ | 25,628 | $ | 22,524 | $ | 22,111 | $ | 22,168 | ||||||||||
Components: | ||||||||||||||||||||
Allowance for loan losses | $ | 25,777 | $ | 24,916 | $ | 22,021 | $ | 21,847 | $ | 21,926 | ||||||||||
Allowance for unfunded commitments | 671 | 712 | 503 | 264 | 242 | |||||||||||||||
Allowance for credit losses | $ | 26,448 | $ | 25,628 | $ | 22,524 | $ | 22,111 | $ | 22,168 | ||||||||||
Allowance as a % of loans held for investment(1) | 0.88 | % | (2) | 0.87 | % | 1.04 | % | 1.10 | % | 1.19 | % | |||||||||
Allowance as a % of nonaccrual loans | 120.97 | % | 117.48 | % | 137.51 | % | 109.75 | % | 103.44 | % |
(1) | Includes loans acquired with bank acquisitions. Excluding acquired loans, allowance for loan losses /total loans was 1.16%, 1.19%, 1.10%, 1.18% and 1.31% at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
(2) | In this calculation, loans held for investment includes loans that are carried at fair value. |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Beginning balance | $ | 32,798 | $ | 25,462 | $ | 30,384 | $ | 32,280 | $ | 34,912 | ||||||||||
Additions | 5,919 | 10,793 | (1) | 1,754 | 3,414 | 4,533 | ||||||||||||||
Reductions: | ||||||||||||||||||||
Recoveries (charge-offs) | 320 | 104 | (87 | ) | (57 | ) | (149 | ) | ||||||||||||
OREO sales | (623 | ) | (1,375 | ) | (2,220 | ) | (1,183 | ) | (1,639 | ) | ||||||||||
OREO writedowns and other adjustments | — | (90 | ) | — | (93 | ) | — | |||||||||||||
Principal paydown, payoff advances and other adjustments | (4,904 | ) | (864 | ) | (2,269 | ) | (948 | ) | (2,753 | ) | ||||||||||
Transferred back to accrual status | (774 | ) | (1,232 | ) | (2,100 | ) | (3,029 | ) | (2,624 | ) | ||||||||||
Total reductions | (5,981 | ) | (3,457 | ) | (6,676 | ) | (5,310 | ) | (7,165 | ) | ||||||||||
Net additions (reductions) | (62 | ) | 7,336 | (4,922 | ) | (1,896 | ) | (2,632 | ) | |||||||||||
Ending balance(2) | $ | 32,736 | $ | 32,798 | $ | 25,462 | $ | 30,384 | $ | 32,280 |
(1) | Additions to NPAs included $7.4 million of acquired nonperforming assets during the quarter ended March 31, 2015. |
(2) | Includes $1.2 million, $1.4 million, $4.4 million, $6.3 million and $6.5 million of nonperforming loans at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively, which are guaranteed by the SBA. |
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Loans accounted for on a nonaccrual basis: | ||||||||||||||||||||
Consumer | ||||||||||||||||||||
Single family | $ | 10,259 | $ | 14,047 | $ | 8,368 | $ | 8,350 | $ | 6,988 | ||||||||||
Home equity and other | 1,533 | 1,306 | 1,526 | 1,700 | 1,166 | |||||||||||||||
11,792 | 15,353 | 9,894 | 10,050 | 8,154 | ||||||||||||||||
Commercial | ||||||||||||||||||||
Commercial real estate | 3,850 | 3,070 | 4,843 | 7,058 | 9,871 | |||||||||||||||
Multifamily | 1,671 | 1,005 | — | — | — | |||||||||||||||
Construction/land development | — | 172 | — | — | — | |||||||||||||||
Commercial business | 3,995 | 1,609 | 1,277 | 2,798 | 3,172 | |||||||||||||||
9,516 | 5,856 | 6,120 | 9,856 | 13,043 | ||||||||||||||||
Total loans on nonaccrual | $ | 21,308 | $ | 21,209 | (2) | $ | 16,014 | $ | 19,906 | $ | 21,197 | |||||||||
Nonaccrual loans as a % of total loans | 0.73 | % | 0.74 | % | 0.75 | % | 1.00 | % | 1.16 | % | ||||||||||
Other real estate owned: | ||||||||||||||||||||
Consumer | ||||||||||||||||||||
Single family | $ | 1,257 | $ | 1,223 | $ | 1,613 | $ | 2,818 | $ | 3,205 | ||||||||||
Commercial | ||||||||||||||||||||
Commercial real estate | 4,332 | 4,527 | 1,996 | 1,822 | 2,040 | |||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||
Construction/land development | 5,839 | 5,839 | 5,839 | 5,838 | 5,838 | |||||||||||||||
Commercial business | — | — | — | — | — | |||||||||||||||
10,171 | 10,366 | 7,835 | 7,660 | 7,878 | ||||||||||||||||
Total other real estate owned | $ | 11,428 | $ | 11,589 | $ | 9,448 | $ | 10,478 | $ | 11,083 | ||||||||||
Nonperforming assets: | ||||||||||||||||||||
Consumer | ||||||||||||||||||||
Single family | $ | 11,516 | $ | 15,270 | $ | 9,981 | $ | 11,168 | $ | 10,193 | ||||||||||
Home equity and other | 1,533 | 1,306 | 1,526 | 1,700 | 1,166 | |||||||||||||||
13,049 | 16,576 | 11,507 | 12,868 | 11,359 | ||||||||||||||||
Commercial | ||||||||||||||||||||
Commercial real estate | 8,182 | 7,597 | 6,839 | 8,880 | 11,911 | |||||||||||||||
Multifamily | 1,671 | 1,005 | — | — | — | |||||||||||||||
Construction/land development | 5,839 | 6,011 | 5,839 | 5,838 | 5,838 | |||||||||||||||
Commercial business | 3,995 | 1,609 | 1,277 | 2,798 | 3,172 | |||||||||||||||
19,687 | 16,222 | 13,955 | 17,516 | 20,921 | ||||||||||||||||
Total nonperforming assets(1) | $ | 32,736 | $ | 32,798 | $ | 25,462 | $ | 30,384 | $ | 32,280 | ||||||||||
Nonperforming assets as a % of total assets | 0.67 | % | 0.71 | % | 0.72 | % | 0.87 | % | 1.00 | % |
(1) | Includes $1.2 million, $1.4 million, $4.4 million, $6.3 million and $6.5 million of nonperforming loans at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively, which are guaranteed by the SBA. |
(2) | Included in these balances are $7.4 million of acquired nonperforming loans at March 31, 2015. |
(in thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | ||||||||||||||||||
June 30, 2015 | ||||||||||||||||||||||||
Total loans held for investment | $ | 9,276 | $ | 3,479 | $ | 53,009 | $ | 65,764 | $ | 2,868,204 | $ | 2,933,968 | ||||||||||||
Less: FHA/VA loans(1) | 5,764 | 2,287 | 31,700 | 39,751 | 52,899 | 92,650 | ||||||||||||||||||
Total loans, excluding FHA/VA loans | $ | 3,512 | $ | 1,192 | $ | 21,309 | $ | 26,013 | $ | 2,815,305 | $ | 2,841,318 | ||||||||||||
Loans by segment and class, excluding FHA/VA loans: | ||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||
Single family | $ | 2,855 | $ | 1,113 | $ | 10,259 | $ | 14,227 | 1,075,665 | $ | 1,089,892 | |||||||||||||
Home equity and other | 658 | 80 | 1,533 | 2,271 | 214,364 | 216,635 | ||||||||||||||||||
3,513 | 1,193 | 11,792 | 16,498 | 1,290,029 | 1,306,527 | |||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||
Commercial real estate | — | — | 3,850 | 3,850 | 543,721 | 547,571 | ||||||||||||||||||
Multifamily | — | — | 1,671 | 1,671 | 364,516 | 366,187 | ||||||||||||||||||
Construction/land development | — | — | — | — | 454,817 | 454,817 | ||||||||||||||||||
Commercial business | — | — | 3,995 | 3,995 | 162,221 | 166,216 | ||||||||||||||||||
— | — | 9,516 | 9,516 | 1,525,275 | 1,534,791 | |||||||||||||||||||
$ | 3,513 | $ | 1,193 | $ | 21,308 | (2) | $ | 26,014 | (2) | $ | 2,815,304 | $ | 2,841,318 | |||||||||||
As a % of total loans, excluding FHA/VA loans | 0.12 | % | 0.04 | % | 0.75 | % | 0.92 | % | 99.08 | % | 100.00 | % | ||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Total loans held for investment | $ | 8,814 | $ | 3,797 | $ | 51,001 | $ | 63,612 | $ | 2,062,586 | $ | 2,126,198 | ||||||||||||
Less: FHA/VA loans(1) | 4,121 | 2,200 | 34,737 | 41,058 | 50,778 | 91,836 | ||||||||||||||||||
Total loans, excluding FHA/VA loans | $ | 4,693 | $ | 1,597 | $ | 16,264 | $ | 22,554 | $ | 2,011,808 | $ | 2,034,362 | ||||||||||||
Loans by segment and class, excluding FHA/VA loans: | ||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||
Single family | $ | 3,711 | $ | 252 | $ | 8,368 | $ | 12,331 | $ | 792,498 | $ | 804,829 | ||||||||||||
Home equity and other | 371 | 81 | 1,526 | 1,978 | 133,620 | 135,598 | ||||||||||||||||||
4,082 | 333 | 9,894 | 14,309 | 926,118 | 940,427 | |||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||
Commercial real estate | — | — | 4,843 | 4,843 | 518,621 | 523,464 | ||||||||||||||||||
Multifamily | — | — | — | — | 55,088 | 55,088 | ||||||||||||||||||
Construction/land development | — | 1,261 | — | 1,261 | 366,673 | 367,934 | ||||||||||||||||||
Commercial business | 611 | 3 | 1,527 | 2,141 | 145,308 | 147,449 | ||||||||||||||||||
611 | 1,264 | 6,370 | 8,245 | 1,085,690 | 1,093,935 | |||||||||||||||||||
$ | 4,693 | $ | 1,597 | $ | 16,264 | (2) | $ | 22,554 | (2) | $ | 2,011,808 | $ | 2,034,362 | |||||||||||
As a % of total loans, excluding FHA/VA loans | 0.23 | % | 0.08 | % | 0.80 | % | 1.11 | % | 98.89 | % | 100.00 | % |
(1) | Represents loans whose repayments are insured by the FHA or guaranteed by the VA. |
(2) | Includes $1.2 million and $4.4 million of nonperforming loans at June 30, 2015 and December 31, 2014, respectively, which are guaranteed by the SBA. |
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Accrual | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family(1) | $ | 75,655 | $ | 74,126 | $ | 73,585 | $ | 72,663 | $ | 69,779 | ||||||||||
Home equity and other | 1,937 | 2,102 | 2,430 | 2,501 | 2,394 | |||||||||||||||
77,592 | 76,228 | 76,015 | 75,164 | 72,173 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 19,287 | 19,516 | 21,703 | 23,964 | 21,401 | |||||||||||||||
Multifamily | 3,041 | 3,059 | 3,077 | 3,101 | 3,125 | |||||||||||||||
Construction/land development | 4,601 | 5,321 | 5,447 | 5,693 | 5,843 | |||||||||||||||
Commercial business | 1,869 | 1,492 | 1,573 | 658 | 302 | |||||||||||||||
28,798 | 29,388 | 31,800 | 33,416 | 30,671 | ||||||||||||||||
$ | 106,390 | $ | 105,616 | $ | 107,815 | $ | 108,580 | $ | 102,844 | |||||||||||
Nonaccrual | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family | $ | 1,419 | $ | 1,443 | $ | 2,482 | $ | 1,379 | $ | 1,461 | ||||||||||
Home equity and other | 230 | 230 | 231 | 20 | — | |||||||||||||||
1,649 | 1,673 | 2,713 | 1,399 | 1,461 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 1,087 | 1,121 | 1,148 | 1,182 | 2,735 | |||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||
Construction/land development | — | — | — | — | — | |||||||||||||||
Commercial business | 205 | 228 | 249 | 9 | 9 | |||||||||||||||
1,292 | 1,349 | 1,397 | 1,191 | 2,744 | ||||||||||||||||
$ | 2,941 | $ | 3,022 | $ | 4,110 | $ | 2,590 | $ | 4,205 | |||||||||||
Total | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family(1) | $ | 77,074 | $ | 75,569 | $ | 76,067 | $ | 74,042 | $ | 71,240 | ||||||||||
Home equity and other | 2,167 | 2,332 | 2,661 | 2,521 | 2,394 | |||||||||||||||
79,241 | 77,901 | 78,728 | 76,563 | 73,634 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 20,374 | 20,637 | 22,851 | 25,146 | 24,136 | |||||||||||||||
Multifamily | 3,041 | 3,059 | 3,077 | 3,101 | 3,125 | |||||||||||||||
Construction/land development | 4,601 | 5,321 | 5,447 | 5,693 | 5,843 | |||||||||||||||
Commercial business | 2,074 | 1,720 | 1,822 | 667 | 311 | |||||||||||||||
30,090 | 30,737 | 33,197 | 34,607 | 33,415 | ||||||||||||||||
$ | 109,331 | $ | 108,638 | $ | 111,925 | $ | 111,170 | $ | 107,049 |
(1) | Includes loan balances insured by the FHA or guaranteed by the VA of $28.4 million, $25.4 million, $26.8 million, $24.6 million and $19.0 million at June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014, respectively. |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Recorded investment of re-defaults(1) | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family | $ | 220 | $ | 1,498 | $ | — | $ | 282 | $ | 425 | ||||||||||
Home equity and other | — | — | — | — | — | |||||||||||||||
220 | 1,498 | — | 282 | 425 | ||||||||||||||||
Commercial loans | — | — | — | — | — | |||||||||||||||
$ | 220 | $ | 1,498 | $ | — | $ | 282 | $ | 425 |
(1) | Represents TDRs that have defaulted in the current period within 12 months of their modification date. Defaulted TDRs are reported in the table above based on a payment default definition of 60 days past due for the consumer loans portfolio segment and 90 days past due for the commercial loans portfolio segment. |
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Deposits by Product: | ||||||||||||||||||||
Noninterest-bearing accounts - checking and savings | $ | 387,899 | $ | 305,738 | $ | 240,679 | $ | 271,669 | $ | 235,844 | ||||||||||
Interest-bearing transaction and savings deposits: | ||||||||||||||||||||
NOW accounts | 453,366 | 435,178 | 272,390 | 300,832 | 324,604 | |||||||||||||||
Statement savings accounts due on demand | 300,214 | 307,731 | 200,638 | 184,656 | 166,851 | |||||||||||||||
Money market accounts due on demand | 1,134,687 | 1,163,656 | 1,007,213 | 1,015,266 | 996,473 | |||||||||||||||
Total interest-bearing transaction and savings deposits | 1,888,267 | 1,906,565 | 1,480,241 | 1,500,754 | 1,487,928 | |||||||||||||||
Total transaction and savings deposits | 2,276,166 | 2,212,303 | 1,720,920 | 1,772,423 | 1,723,772 | |||||||||||||||
Certificates of deposit | 753,327 | 751,333 | 494,526 | 367,124 | 457,529 | |||||||||||||||
Noninterest-bearing accounts - other | 293,160 | 380,587 | 229,984 | 285,911 | 236,411 | |||||||||||||||
Total deposits | $ | 3,322,653 | $ | 3,344,223 | $ | 2,445,430 | $ | 2,425,458 | $ | 2,417,712 | ||||||||||
Percent of total deposits: | ||||||||||||||||||||
Noninterest-bearing accounts - checking and savings | 11.7 | % | 9.1 | % | 9.8 | % | 11.2 | % | 9.8 | % | ||||||||||
Interest-bearing transaction and savings deposits: | ||||||||||||||||||||
NOW accounts | 13.6 | 13.0 | 11.1 | 12.4 | 13.4 | |||||||||||||||
Statement savings accounts due on demand | 9.0 | 9.2 | 8.2 | 7.6 | 6.9 | |||||||||||||||
Money market accounts due on demand | 34.2 | 34.8 | 41.2 | 41.9 | 41.2 | |||||||||||||||
Total interest-bearing transaction and savings deposits | 56.8 | 57.0 | 60.5 | 61.9 | 61.5 | |||||||||||||||
Total transaction and savings deposits | 68.5 | 66.1 | 70.3 | 73.1 | 71.3 | |||||||||||||||
Certificates of deposit | 22.7 | 22.5 | 20.2 | 15.1 | 18.9 | |||||||||||||||
Noninterest-bearing accounts - other | 8.8 | 11.4 | 9.5 | 11.8 | 9.8 | |||||||||||||||
Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Net interest income | $ | 7,585 | $ | 5,627 | $ | 5,315 | $ | 5,145 | $ | 3,744 | ||||||||||
Noninterest income | 69,363 | 65,292 | 46,053 | 42,153 | 47,036 | |||||||||||||||
Noninterest expense | 63,055 | 53,816 | 47,636 | 45,228 | 42,537 | |||||||||||||||
Income before income taxes | 13,893 | 17,103 | 3,732 | 2,070 | 8,243 | |||||||||||||||
Income tax expense | 4,371 | 6,785 | 1,456 | 629 | 2,634 | |||||||||||||||
Net income | $ | 9,522 | $ | 10,318 | $ | 2,276 | $ | 1,441 | $ | 5,609 | ||||||||||
Efficiency ratio (1) | 81.94 | % | 75.88 | % | 92.73 | % | 95.62 | % | 83.77 | % | ||||||||||
Full-time equivalent employees (ending) | 1,207 | 1,061 | 1,003 | 993 | 947 | |||||||||||||||
Production volumes for sale to the secondary market: | ||||||||||||||||||||
Single family mortgage closed loan volume (2)(3) | $ | 2,022,656 | $ | 1,606,893 | $ | 1,330,735 | $ | 1,294,895 | $ | 1,100,704 | ||||||||||
Single family mortgage interest rate lock commitments(2) | 1,882,955 | 1,901,238 | 1,171,598 | 1,167,677 | 1,201,665 | |||||||||||||||
Single family mortgage loans sold(2) | 1,894,387 | 1,316,959 | 1,273,679 | 1,179,464 | 906,342 |
(1) | Noninterest expense divided by total net revenue (net interest income and noninterest income). |
(2) | Includes loans originated by WMS Series LLC and purchased by HomeStreet. |
(3) | Represents single family mortgage production volume designated for sale to the secondary market during each respective period. |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Net gain on mortgage loan origination and sale activities:(1) | ||||||||||||||||||||
Single family: | ||||||||||||||||||||
Servicing value and secondary market gains(2) | $ | 61,884 | $ | 56,289 | $ | 29,405 | $ | 29,866 | $ | 30,233 | ||||||||||
Loan origination and funding fees | 5,635 | 4,455 | 7,083 | 6,947 | 6,781 | |||||||||||||||
Total mortgage banking net gain on mortgage loan origination and sale activities(1) | $ | 67,519 | $ | 60,744 | $ | 36,488 | $ | 36,813 | $ | 37,014 | ||||||||||
Composite Margin (in basis points): | ||||||||||||||||||||
Servicing value and secondary market gains / interest rate lock commitments(3) | 316 | 306 | 251 | 256 | 252 | |||||||||||||||
Loan origination and funding fees / retail mortgage originations(4) | 31 | 30 | 59 | 60 | 69 | |||||||||||||||
Composite Margin | 347 | (5) | 336 | (5) | 310 | 316 | 321 |
(1) | Excludes inter-segment activities. |
(2) | Comprised of gains and losses on interest rate lock commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and the estimated fair value of the repurchase or indemnity obligation recognized on new loan sales. |
(3) | Servicing value and secondary marketing gains have been aggregated and are stated as a percentage of interest rate lock commitments. |
(4) | Loan origination and funding fees is stated as a percentage of mortgage originations from the retail channel and excludes mortgage loans purchased from WMS Series LLC. In the first quarter of 2015, the Company implemented a new pricing structure where origination fees are no longer charged at funding and instead included in the rate/price of the loan. |
(5) | In the second quarter, we recognized an additional $2.4 million of gain on mortgage loan origination and sale revenue related to the correction of an error in the mortgage loan pipeline valuation. The Composite Margin in the table above has been adjusted to eliminate the impact of this correction. |
Quarter ended | |||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | ||||||||||||||||
Servicing income, net: | |||||||||||||||||||||
Servicing fees and other | $ | 8,922 | $ | 8,177 | $ | 7,537 | $ | 8,061 | $ | 9,095 | |||||||||||
Changes in fair value of single family MSRs due to modeled amortization (1) | (9,012 | ) | (9,235 | ) | (6,823 | ) | (6,212 | ) | (7,109 | ) | |||||||||||
(90 | ) | (1,058 | ) | 714 | 1,849 | 1,986 | |||||||||||||||
Risk management, single family MSRs: | |||||||||||||||||||||
Changes in fair value of MSR due to changes in model inputs and/or assumptions (2) | 18,483 | (7,311 | ) | (7,793 | ) | 899 | (3,326 | ) | (3) | ||||||||||||
Net gain (loss) from derivatives economically hedging MSR | (17,221 | ) | 12,234 | 16,346 | 2,543 | 10,941 | |||||||||||||||
1,262 | 4,923 | 8,553 | 3,442 | 7,615 | |||||||||||||||||
Mortgage Banking servicing income | $ | 1,172 | $ | 3,865 | $ | 9,267 | $ | 5,291 | $ | 9,601 |
(1) | Represents changes due to collection/realization of expected cash flows and curtailments. |
(2) | Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. |
(3) | Includes pre-tax income of $4.7 million, net of transaction costs, resulting from the sale of single family MSRs during the quarter ended June 30, 2014. |
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Single family | ||||||||||||||||||||
U.S. government and agency | $ | 12,361,841 | $ | 11,275,491 | $ | 10,630,864 | $ | 10,007,872 | $ | 9,308,096 | ||||||||||
Other | 618,204 | 634,763 | 585,344 | 585,393 | 586,978 | |||||||||||||||
Total single family loans serviced for others | $ | 12,980,045 | $ | 11,910,254 | $ | 11,216,208 | $ | 10,593,265 | $ | 9,895,074 |
Quarter ended | ||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | |||||||||||||||
Beginning balance | $ | 110,709 | $ | 112,439 | $ | 115,477 | $ | 108,869 | $ | 149,646 | ||||||||||
Additions and amortization: | ||||||||||||||||||||
Originations | 20,405 | 14,813 | 11,567 | 11,944 | 11,827 | |||||||||||||||
Purchases | 3 | 3 | 11 | 3 | 3 | |||||||||||||||
Sale of servicing rights | — | — | — | — | (43,248 | ) | ||||||||||||||
Changes due to modeled amortization (1) | (9,012 | ) | (9,235 | ) | (6,823 | ) | (6,212 | ) | (7,109 | ) | ||||||||||
Net additions and amortization | 11,396 | 5,581 | 4,755 | 5,735 | (38,527 | ) | ||||||||||||||
Changes in fair value due to changes in model inputs and/or assumptions (2) | 18,483 | (7,311 | ) | (7,793 | ) | 873 | (2,250 | ) | ||||||||||||
Ending balance | $ | 140,588 | $ | 110,709 | $ | 112,439 | $ | 115,477 | $ | 108,869 | ||||||||||
Ratio of MSR carrying value to related loans serviced for others | 1.08 | % | 0.93 | % | 1.00 | % | 1.09 | % | 1.10 | % | ||||||||||
MSR servicing fee multiple (3) | 3.72 | 3.17 | 3.42 | 3.68 | 3.67 | |||||||||||||||
Weighted-average note rate (loans serviced for others) | 4.10 | % | 4.14 | % | 4.18 | % | 4.19 | % | 4.19 | % | ||||||||||
Weighted-average servicing fee (loans serviced for others) | 0.29 | % | 0.29 | % | 0.29 | % | 0.30 | % | 0.30 | % |
(1) | Represents changes due to collection/realization of expected cash flows and curtailments. |
(2) | Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. Includes fair value adjustment of $5.7 million related to the sale of single family MSRs during the quarter ended June 30, 2014. |
(3) | Represents the ratio of MSR carrying value to related loans serviced for others divided by the weighted-average servicing fee for loans serviced for others. |
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
(dollars in thousands, except share data) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||||||||||||||||||||
Shareholders' equity | $ | 447,726 | $ | 439,395 | $ | 302,238 | $ | 294,568 | $ | 288,249 | $ | 447,726 | $ | 288,249 | ||||||||||||||
Less: Goodwill and other intangibles | (20,778 | ) | (21,324 | ) | (14,211 | ) | (14,444 | ) | (14,690 | ) | (20,778 | ) | (14,690 | ) | ||||||||||||||
Tangible shareholders' equity | $ | 426,948 | $ | 418,071 | $ | 288,027 | $ | 280,124 | $ | 273,559 | $ | 426,948 | $ | 273,559 | ||||||||||||||
Book value per share | $ | 20.29 | $ | 19.94 | $ | 20.34 | $ | 19.83 | $ | 19.41 | $ | 20.29 | $ | 19.41 | ||||||||||||||
Impact of goodwill and other intangibles | (0.94 | ) | (0.97 | ) | (0.95 | ) | (0.97 | ) | (0.99 | ) | (0.94 | ) | (0.99 | ) | ||||||||||||||
Tangible book value per share | $ | 19.35 | $ | 18.97 | $ | 19.39 | $ | 18.86 | $ | 18.42 | $ | 19.35 | $ | 18.42 | ||||||||||||||
Average shareholders' equity | $ | 455,721 | $ | 370,008 | $ | 305,068 | $ | 295,229 | $ | 284,365 | $ | 413,102 | $ | 278,513 | ||||||||||||||
Less: Average goodwill and other intangibles | (21,135 | ) | (16,698 | ) | (14,363 | ) | (14,604 | ) | (14,049 | ) | (18,929 | ) | (14,132 | ) | ||||||||||||||
Average tangible shareholders' equity | $ | 434,586 | $ | 353,310 | $ | 290,705 | $ | 280,625 | $ | 270,316 | $ | 394,173 | $ | 264,381 | ||||||||||||||
Return on average shareholders’ equity | 10.86 | % | 11.14 | % | 7.37 | % | 6.74 | % | 13.17 | % | 10.98 | % | 8.38 | % | ||||||||||||||
Impact of goodwill and other intangibles | 0.53 | % | 0.53 | % | 0.36 | % | 0.35 | % | 0.68 | % | 0.53 | % | 0.44 | % | ||||||||||||||
Return on average tangible shareholders' equity | 11.39 | % | 11.67 | % | 7.73 | % | 7.09 | % | 13.85 | % | 11.51 | % | 8.82 | % | ||||||||||||||
Return on average shareholders' equity | 10.86 | % | 11.14 | % | 7.37 | % | 6.74 | % | 13.17 | % | 10.98 | % | 8.38 | % | ||||||||||||||
Impact of merger-related expenses (net of tax) and bargain purchase gain | 1.90 | % | 1.36 | % | 0.76 | % | 0.64 | % | 0.55 | % | 1.65 | % | 0.67 | % | ||||||||||||||
Return on average shareholders' equity, excluding merger-related expenses (net of tax) and bargain purchase gain | 12.76 | % | 12.50 | % | 8.13 | % | 7.38 | % | 13.72 | % | 12.63 | % | 9.05 | % | ||||||||||||||
Return on average assets | 1.06 | % | 1.08 | % | 0.65 | % | 0.61 | % | 1.22 | % | 1.07 | % | 0.77 | % | ||||||||||||||
Impact of merger-related expenses (net of tax) and bargain purchase gain | 0.19 | % | 0.13 | % | 0.07 | % | 0.05 | % | 0.05 | % | 0.16 | % | 0.06 | % | ||||||||||||||
Return on average assets, excluding merger-related expenses (net of tax) and bargain purchase gain | 1.25 | % | 1.21 | % | 0.72 | % | 0.66 | % | 1.27 | % | 1.23 | % | 0.83 | % |
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sept. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||||||||||||||||||||
Net income | $ | 12,376 | $ | 10,304 | $ | 5,621 | $ | 4,975 | $ | 9,362 | $ | 22,680 | $ | 11,663 | ||||||||||||||
Impact of merger-related expenses (net of tax) and bargain purchase gain | 2,165 | 1,256 | 578 | 469 | 394 | 3,421 | 939 | |||||||||||||||||||||
Net income, excluding merger-related expenses (net of tax) and bargain purchase gain | $ | 14,541 | $ | 11,560 | $ | 6,199 | $ | 5,444 | $ | 9,756 | $ | 26,101 | $ | 12,602 | ||||||||||||||
Noninterest expense | $ | 92,335 | $ | 89,482 | $ | 68,791 | $ | 64,158 | $ | 62,971 | $ | 181,817 | $ | 119,062 | ||||||||||||||
Deduct: merger-related expenses | (3,208 | ) | (12,165 | ) | (889 | ) | (722 | ) | (606 | ) | (15,373 | ) | (1,444 | ) | ||||||||||||||
Noninterest expense, excluding merger-related expenses | $ | 89,127 | $ | 77,317 | $ | 67,902 | $ | 63,436 | $ | 62,365 | $ | 166,444 | $ | 117,618 | ||||||||||||||
Diluted earnings per common share | $ | 0.56 | $ | 0.59 | $ | 0.38 | $ | 0.33 | $ | 0.63 | $ | 1.14 | $ | 0.78 | ||||||||||||||
Impact of merger-related expenses (net of tax) and bargain purchase gain | 0.09 | 0.08 | 0.03 | 0.03 | 0.02 | 0.18 | 0.06 | |||||||||||||||||||||
Diluted earnings per common share, excluding merger-related expenses (net of tax) and bargain purchase gain | $ | 0.65 | $ | 0.67 | $ | 0.41 | $ | 0.36 | $ | 0.65 | $ | 1.32 | $ | 0.84 | ||||||||||||||
Commercial and Consumer Banking Segment: | ||||||||||||||||||||||||||||
Net income (loss) | $ | 2,854 | $ | (14 | ) | $ | 3,345 | $ | 3,534 | $ | 3,753 | $ | 2,840 | $ | 7,869 | |||||||||||||
Impact of merger-related expenses (net of tax) and bargain purchase gain | 2,165 | 1,256 | 578 | 469 | 394 | 3,421 | 939 | |||||||||||||||||||||
Net income, excluding merger-related expenses (net of tax) and bargain purchase gain | $ | 5,019 | $ | 1,242 | $ | 3,923 | $ | 4,003 | $ | 4,147 | $ | 6,261 | $ | 8,808 |
Contact: | Investor Relations & Media: | |
HomeStreet, Inc. | ||
Mark K. Mason (206) 442-5380 | ||
Mark.Mason@HomeStreet.com | ||
http://ir.homestreet.com |
__!"W_D M^&]0N-*U"WWA_(N()&BE3!_#7B*&\OIY].O=06.X@5YVV[E/3(&?H17W5_P^8_96_Z+S\-_
M_!JM?RN?LQ?\$(OVH/VQ/@MI'Q"^'OPY.N>$]<\S[%>_VI:P^;Y;M&WRO(&&
M&4CD=J[_`/XAA?VU/^B1M_X.['_X[0!_5M^SO^U]\,?VM;'5+KX:>./#OC:W
MT22.*_DTJZ$ZVC2!B@?'0L%8CZ&J_P"T3^VM\)_V2;K28?B9\0/#/@F;7$E?
M3TU6[$!NUC*B0IGKM+IG_>%?G5_P:L?\$V/C%_P3F^'/QDL?B]X4/A6Z\5:E
MI<^F(;V"Y^T)#% M77AS6K/4+*9K>\L)TN()5/S1R(P96'N"`:`/[\0=
MP%?C!_P LZIJNN+]A/V:WNXII3&DF'=]
MB'`V\G%`']<%?A7_`,'N7P^NKSX*?!7Q1&KO:V.L7FGS$#Y8R\(=2?KM(K]U
M*^:?^"M'_!/'2_\`@IU^Q-XG^%]Y<1:=JEULO]$OY`2MC?Q9,3-CG8