Washington | 001-35424 | 91-0186600 | ||
(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)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
HomeStreet, Inc. | |||
By: | /s/ Melba A. Bartels | ||
Melba A. Bartels | |||
Senior Executive Vice President and | |||
Chief Financial Officer |
▪ | Record quarterly net income of $27.7 million |
▪ | Total assets of $6.23 billion grew $285.4 million, or 4.8%, from $5.94 billion at June 30, 2016 |
▪ | Completed the purchase of two retail deposit branches and related loans and deposits in Lake Oswego, Oregon |
▪ | Opened three home-loan centers and one retail deposit branch during the quarter |
▪ | Annualized return on average shareholders' equity was 18.83% in the third quarter of 2016 compared with 15.87% in the second quarter of 2016 and 8.65% in the third quarter of 2015 |
▪ | Annualized return on average tangible shareholders' equity1, excluding acquisition-related items, net of tax, was 20.04% in the third quarter of 2016 compared with 17.27% in the second quarter of 2016 and 8.59% in the third quarter of 2015 |
▪ | Net interest income was $46.8 million in the third quarter of 2016 compared with $44.5 million in the second quarter of 2016 and $39.6 million in the third quarter of 2015 |
▪ | Noninterest income was $111.7 million in the third quarter of 2016 compared with $102.5 million in the second quarter of 2016 and $67.5 million in the third quarter of 2015 |
▪ | Average interest-earning assets of $5.69 billion increased $506.9 million, or 9.8%, from $5.19 billion in the second quarter of 2016 and increased $1.3 billion, or 29.5%, from $4.39 billion in the third quarter of 2015 |
◦ | Commercial and Consumer Banking |
▪ | Segment net income of $10.1 million for the current quarter compared with $7.1 million for the second quarter of 2016 and $6.8 million for the third quarter of 2015 |
▪ | Core net income for the segment of $10.5 million for the current quarter compared with $7.7 million for the second quarter of 2016 and $6.3 million for the third quarter of 2015 |
▪ | Loans held for investment, net, of $3.76 billion increased $65.2 million, or 1.8%, from June 30, 2016 |
▪ | Deposits of $4.50 billion increased $265.4 million, or 6.3%, from June 30, 2016 |
▪ | Nonperforming assets were $32.4 million, or 0.52% of total assets at September 30, 2016, compared to $26.4 million, or 0.45% of total assets at June 30, 2016 |
▪ | Past due loans excluding U.S. government credit support were $28.4 million, or 0.77% of total such loans at September 30, 2016, compared to $16.3 million, or 0.45% of total such loans at June 30, 2016 |
▪ | Segment net income was $17.6 million for the third quarter of 2016 compared with net income of $14.7 million for the second quarter of 2016 and net income of $3.2 million for the third quarter of 2015 |
▪ | Mortgage Banking segment gain on mortgage loan origination and sale activities was $88.9 million in the third quarter of 2016 compared with $81.0 million in the second quarter of 2016 and $56.0 million in the third quarter of 2015 |
▪ | Single family mortgage interest rate lock commitments were $2.69 billion, up 13.9% from $2.36 billion in the second quarter of 2016 and up 48.9% from $1.81 billion in the third quarter of 2015 |
▪ | Single family mortgage closed loan volume was $2.65 billion, up 17.1% from $2.26 billion in the second quarter of 2016 and up 36.9% from $1.93 billion in the third quarter of 2015 |
▪ | The portfolio of single family loans serviced for others increased to $18.20 billion at September 30, 2016, up 6.6% from $17.07 billion at June 30, 2016 and up 27.5% from $14.27 billion at September 30, 2015 |
• | For the third quarter of 2016, HomeStreet was the number one originator by volume of purchase mortgages 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 |
Contact: | Investor Relations: | |
HomeStreet, Inc. | ||
Gerhard Erdelji (206) 515-4039 | ||
Gerhard.Erdelji@HomeStreet.com | ||
http://ir.homestreet.com |
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||
(dollars in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | |||||||||||||||||||||
Income statement data (for the period ended): | ||||||||||||||||||||||||||||
Net interest income | $ | 46,802 | $ | 44,482 | $ | 40,691 | $ | 39,740 | $ | 39,634 | $ | 131,975 | $ | 108,598 | ||||||||||||||
Provision for credit losses | 1,250 | 1,100 | 1,400 | 1,900 | 700 | 3,750 | 4,200 | |||||||||||||||||||||
Noninterest income | 111,745 | 102,476 | 71,708 | 65,409 | 67,468 | 285,929 | 215,828 | |||||||||||||||||||||
Noninterest expense | 114,399 | 111,031 | 101,353 | 92,725 | 92,026 | 326,783 | 273,843 | |||||||||||||||||||||
Acquisition-related expenses (included in noninterest expense) | 512 | 1,025 | 5,198 | 754 | 437 | 6,735 | 15,810 | |||||||||||||||||||||
Income before taxes | 42,898 | 34,827 | 9,646 | 10,524 | 14,376 | 87,371 | 46,383 | |||||||||||||||||||||
Income tax expense | 15,197 | 13,078 | 3,239 | 1,846 | 4,415 | 31,514 | 13,742 | |||||||||||||||||||||
Net income | $ | 27,701 | $ | 21,749 | $ | 6,407 | $ | 8,678 | $ | 9,961 | $ | 55,857 | $ | 32,641 | ||||||||||||||
Basic earnings per common share | $ | 1.12 | $ | 0.88 | $ | 0.27 | $ | 0.39 | $ | 0.45 | $ | 2.29 | $ | 1.60 | ||||||||||||||
Diluted earnings per common share | $ | 1.11 | $ | 0.87 | $ | 0.27 | $ | 0.39 | $ | 0.45 | $ | 2.27 | $ | 1.58 | ||||||||||||||
Common shares outstanding | 24,833,008 | 24,821,349 | 24,550,219 | 22,076,534 | 22,061,702 | 24,833,008 | 22,061,702 | |||||||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||||||
Basic | 24,811,169 | 24,708,375 | 23,676,506 | 22,050,022 | 22,035,317 | 24,398,683 | 20,407,386 | |||||||||||||||||||||
Diluted | 25,009,459 | 24,911,919 | 23,877,376 | 22,297,183 | 22,291,810 | 24,599,585 | 20,646,540 | |||||||||||||||||||||
Shareholders' equity per share | $ | 23.60 | $ | 22.55 | $ | 21.55 | $ | 21.08 | $ | 20.87 | $ | 23.60 | $ | 20.87 | ||||||||||||||
Tangible book value per share (1) | $ | 22.45 | $ | 21.38 | $ | 20.37 | $ | 20.16 | $ | 19.95 | $ | 22.45 | $ | 19.95 | ||||||||||||||
Financial position (at period end): | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 55,998 | $ | 45,229 | $ | 46,356 | $ | 32,684 | $ | 37,303 | $ | 55,998 | $ | 37,303 | ||||||||||||||
Investment securities | 991,325 | 928,364 | 687,081 | 572,164 | 602,018 | 991,325 | 602,018 | |||||||||||||||||||||
Loans held for sale | 893,513 | 772,780 | 696,692 | 650,163 | 882,319 | 893,513 | 882,319 | |||||||||||||||||||||
Loans held for investment, net | 3,764,178 | 3,698,959 | 3,523,551 | 3,192,720 | 3,012,943 | 3,764,178 | 3,012,943 | |||||||||||||||||||||
Mortgage servicing rights | 167,501 | 147,266 | 148,851 | 171,255 | 146,080 | 167,501 | 146,080 | |||||||||||||||||||||
Other real estate owned | 6,440 | 10,698 | 7,273 | 7,531 | 8,273 | 6,440 | 8,273 | |||||||||||||||||||||
Total assets | 6,226,601 | 5,941,178 | 5,417,252 | 4,894,495 | 4,975,653 | 6,226,601 | 4,975,653 | |||||||||||||||||||||
Deposits | 4,504,560 | 4,239,155 | 3,823,027 | 3,231,953 | 3,307,693 | 4,504,560 | 3,307,693 | |||||||||||||||||||||
FHLB advances | 858,923 | 878,987 | 883,574 | 1,018,159 | 1,025,745 | 858,923 | 1,025,745 | |||||||||||||||||||||
Shareholders’ equity | $ | 586,028 | $ | 559,603 | $ | 529,132 | $ | 465,275 | $ | 460,458 | $ | 586,028 | $ | 460,458 | ||||||||||||||
Financial position (averages): | ||||||||||||||||||||||||||||
Investment securities | $ | 981,223 | $ | 766,248 | $ | 625,695 | $ | 584,519 | $ | 539,330 | $ | 791,749 | $ | 503,280 | ||||||||||||||
Loans held for investment | 3,770,133 | 3,677,361 | 3,399,479 | 3,120,644 | 2,975,624 | 3,616,222 | 2,738,085 | |||||||||||||||||||||
Total interest-earning assets | 5,692,999 | 5,186,131 | 4,629,507 | 4,452,326 | 4,394,557 | 5,171,456 | 4,048,237 | |||||||||||||||||||||
Total interest-bearing deposits | 3,343,339 | 3,072,314 | 2,734,975 | 2,587,125 | 2,573,512 | 3,051,279 | 2,470,022 | |||||||||||||||||||||
Federal Home Loan Bank advances | 988,358 | 946,488 | 896,726 | 987,803 | 887,711 | 944,020 | 730,519 | |||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,242 | — | — | 100 | — | 753 | 15,204 | |||||||||||||||||||||
Total interest-bearing liabilities | 4,459,213 | 4,110,208 | 3,693,558 | 3,636,885 | 3,523,080 | 4,089,016 | 3,277,602 | |||||||||||||||||||||
Shareholders’ equity | $ | 588,335 | $ | 548,080 | $ | 510,883 | $ | 470,635 | $ | 460,489 | $ | 549,242 | $ | 429,071 | ||||||||||||||
Other data: | ||||||||||||||||||||||||||||
Full-time equivalent employees (ending) | 2,431 | 2,335 | 2,264 | 2,139 | 2,100 | 2,431 | 2,100 |
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||
(dollars in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | |||||||||||||||||||||
Financial performance: | ||||||||||||||||||||||||||||
Return on average shareholders’ equity(2) | 18.83 | % | 15.87 | % | 5.02 | % | 7.38 | % | 8.65 | % | 13.56 | % | 10.14 | % | ||||||||||||||
Return on average shareholders’ equity, excluding acquisition-related expenses (net of tax) and bargain purchase gain(1)(2) | 19.07 | % | 16.36 | % | 7.66 | % | 7.47 | % | 8.21 | % | 14.62 | % | 11.05 | % | ||||||||||||||
Return on average tangible shareholders' equity, excluding acquisition-related expenses (net of tax) and bargain purchase gain (1) | 20.04 | % | 17.27 | % | 8.08 | % | 7.80 | % | 8.59 | % | 15.41 | % | 11.57 | % | ||||||||||||||
Return on average assets | 1.79 | % | 1.54 | % | 0.51 | % | 0.71 | % | 0.83 | % | 1.33 | % | 0.98 | % | ||||||||||||||
Return on average assets, excluding acquisition-related expenses (net of tax) and bargain purchase gain(1) | 1.81 | % | 1.59 | % | 0.78 | % | 0.72 | % | 0.78 | % | 1.43 | % | 1.07 | % | ||||||||||||||
Net interest margin (3) | 3.34 | % | 3.48 | % | 3.55 | % | 3.61 | % | 3.67 | % | 3.46 | % | 3.63 | % | ||||||||||||||
Efficiency ratio (4) | 72.15 | % | 75.55 | % | 90.17 | % | 88.18 | % | 85.92 | % | 78.20 | % | 84.41 | % | ||||||||||||||
Core efficiency ratio (1)(5) | 71.83 | % | 74.86 | % | 85.55 | % | 87.79 | % | 86.16 | % | 76.58 | % | 81.38 | % | ||||||||||||||
Asset quality: | ||||||||||||||||||||||||||||
Allowance for credit losses | $ | 35,233 | $ | 34,001 | $ | 32,423 | $ | 30,659 | $ | 27,887 | $ | 35,233 | $ | 27,887 | ||||||||||||||
Allowance for loan losses/total loans(6) | 0.89 | % | 0.88 | % | 0.88 | % | 0.91 | % | 0.89 | % | 0.89 | % | 0.89 | % | ||||||||||||||
Allowance for loan losses/nonaccrual loans | 131.07 | % | 207.41 | % | 195.51 | % | 170.54 | % | 138.27 | % | 131.07 | % | 138.27 | % | ||||||||||||||
Total nonaccrual loans(7)(8) | $ | 25,921 | $ | 15,745 | $ | 16,012 | $ | 17,168 | $ | 19,470 | $ | 25,921 | $ | 19,470 | ||||||||||||||
Nonaccrual loans/total loans | 0.68 | % | 0.42 | % | 0.45 | % | 0.53 | % | 0.64 | % | 0.68 | % | 0.64 | % | ||||||||||||||
Other real estate owned | $ | 6,440 | $ | 10,698 | $ | 7,273 | $ | 7,531 | $ | 8,273 | $ | 6,440 | $ | 8,273 | ||||||||||||||
Total nonperforming assets(8) | $ | 32,361 | $ | 26,443 | $ | 23,285 | $ | 24,699 | $ | 27,743 | $ | 32,361 | $ | 27,743 | ||||||||||||||
Nonperforming assets/total assets | 0.52 | % | 0.45 | % | 0.43 | % | 0.50 | % | 0.56 | % | 0.52 | % | 0.56 | % | ||||||||||||||
Net charge-offs (recoveries) | $ | 18 | $ | (478 | ) | $ | (364 | ) | $ | (872 | ) | $ | (739 | ) | $ | (824 | ) | $ | (1,163 | ) |
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||
(dollars in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | |||||||||||||||||||||
Regulatory capital ratios for the Bank: | ||||||||||||||||||||||||||||
Tier 1 leverage capital (to average assets) | 9.91 | % | (9) | 10.28 | % | 10.17 | % | 9.46 | % | 9.69 | % | 9.91 | % | (9) | 9.69 | % | ||||||||||||
Tier 1 common equity risk-based capital (to risk-weighted assets) | 13.61 | % | (9) | 13.52 | % | 13.09 | % | 13.04 | % | 13.35 | % | 13.61 | % | (9) | 13.35 | % | ||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 13.61 | % | (9) | 13.52 | % | 13.09 | % | 13.04 | % | 13.35 | % | 13.61 | % | (9) | 13.35 | % | ||||||||||||
Total risk-based capital (to risk-weighted assets) | 14.41 | % | (9) | 14.33 | % | 13.93 | % | 13.92 | % | 14.15 | % | 14.41 | % | (9) | 14.15 | % | ||||||||||||
Risk-weighted assets | $ | 4,442,518 | $ | 4,218,707 | $ | 3,846,203 | $ | 3,490,539 | $ | 3,454,777 | $ | 4,442,518 | $ | 3,454,777 | ||||||||||||||
Regulatory capital ratios for the Company: | ||||||||||||||||||||||||||||
Tier 1 leverage capital (to average assets) | 9.52 | % | (9) | 9.88 | % | 10.50 | % | 9.95 | % | 10.00 | % | 9.52 | % | (9) | 10.00 | % | ||||||||||||
Tier 1 common equity risk-based capital (to risk-weighted assets) | 10.37 | % | (9) | 10.31 | % | 10.60 | % | 10.52 | % | 10.65 | % | 10.37 | % | (9) | 10.65 | % | ||||||||||||
Tier 1 risk-based capital (to risk-weighted assets) | 11.55 | % | (9) | 11.51 | % | 11.89 | % | 11.94 | % | 12.09 | % | 11.55 | % | (9) | 12.09 | % | ||||||||||||
Total risk-based capital (to risk-weighted assets) | 12.25 | % | (9) | 12.22 | % | 12.63 | % | 12.70 | % | 12.79 | % | 12.25 | % | (9) | 12.79 | % | ||||||||||||
Risk-weighted assets | $ | 5,042,699 | $ | 4,778,947 | $ | 4,383,271 | $ | 4,020,264 | $ | 3,950,823 | $ | 5,042,699 | $ | 3,950,823 |
(1) | Tangible equity ratios, tangible book value per share of common stock, return on average shareholders' equity, return on average assets and core efficiency ratios 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 excluding acquisition-related expenses (net of tax) and bargain purchase gain (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) | Noninterest expense divided by total net revenue (net interest income and noninterest income), adjusted for acquisition-related items. |
(6) | Includes loans acquired with bank acquisitions. Excluding acquired loans, allowance for loan losses /total loans was 1.05%, 1.03%, 1.07%, 1.10% and 1.11% at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
(7) | Generally, loans are placed on nonaccrual status when they are 90 or more days past due, unless payment is insured by the FHA or guaranteed by the VA. |
(8) | Includes $2.1 million, $2.6 million, $2.6 million, $1.2 million and $1.5 million of nonperforming loans guaranteed by the SBA at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
(9) | Regulatory capital ratios at September 30, 2016 are preliminary. |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | |||||||||||||||||||
(in thousands, except share data) | 2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Loans | $ | 49,752 | $ | 41,012 | 21 | % | $ | 139,748 | $ | 111,603 | 25 | % | ||||||||||
Investment securities | 5,476 | 2,754 | 99 | 12,531 | 8,426 | 49 | ||||||||||||||||
Other | 102 | 224 | (54 | ) | 396 | 647 | (39 | ) | ||||||||||||||
55,330 | 43,990 | 26 | 152,675 | 120,676 | 27 | |||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 5,362 | 3,069 | 75 | 13,380 | 8,656 | 55 | ||||||||||||||||
Federal Home Loan Bank advances | 1,605 | 958 | 68 | 4,486 | 2,476 | 81 | ||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2 | — | NM | 2 | 8 | (75 | ) | |||||||||||||||
Long-term debt | 1,440 | 278 | 418 | 2,574 | 815 | 216 | ||||||||||||||||
Other | 119 | 51 | 133 | 258 | 123 | 110 | ||||||||||||||||
8,528 | 4,356 | 96 | 20,700 | 12,078 | 71 | |||||||||||||||||
Net interest income | 46,802 | 39,634 | 18 | 131,975 | 108,598 | 22 | ||||||||||||||||
Provision for credit losses | 1,250 | 700 | 79 | 3,750 | 4,200 | (11 | ) | |||||||||||||||
Net interest income after provision for credit losses | 45,552 | 38,934 | 17 | 128,225 | 104,398 | 23 | ||||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Net gain on mortgage loan origination and sale activities | 92,600 | 57,885 | 60 | 239,493 | 189,746 | 26 | ||||||||||||||||
Mortgage servicing income | 14,544 | 4,768 | 205 | 35,855 | 10,896 | 229 | ||||||||||||||||
Income from WMS Series LLC | 1,174 | 380 | 209 | 2,474 | 1,428 | 73 | ||||||||||||||||
Depositor and other retail banking fees | 1,744 | 1,701 | 3 | 4,991 | 4,239 | 18 | ||||||||||||||||
Insurance agency commissions | 441 | 477 | (8 | ) | 1,205 | 1,183 | 2 | |||||||||||||||
Gain on sale of investment securities available for sale | 48 | 1,002 | (95 | ) | 145 | 1,002 | (86 | ) | ||||||||||||||
Bargain purchase gain | — | 796 | NM | — | 7,345 | NM | ||||||||||||||||
Other | 1,194 | 459 | 160 | 1,766 | (11 | ) | NM | |||||||||||||||
111,745 | 67,468 | 66 | 285,929 | 215,828 | 32 | |||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Salaries and related costs | 79,164 | 60,991 | 30 | 221,615 | 180,238 | 23 | ||||||||||||||||
General and administrative | 14,949 | 14,342 | 4 | 47,210 | 41,122 | 15 | ||||||||||||||||
Amortization of core deposit intangibles | 579 | 527 | 10 | 1,636 | 1,410 | 16 | ||||||||||||||||
Legal | 639 | 868 | (26 | ) | 1,687 | 1,912 | (12 | ) | ||||||||||||||
Consulting | 1,390 | 166 | 737 | 4,239 | 6,544 | (35 | ) | |||||||||||||||
Federal Deposit Insurance Corporation assessments | 919 | 504 | 82 | 2,419 | 1,890 | 28 | ||||||||||||||||
Occupancy | 7,740 | 6,077 | 27 | 22,408 | 18,024 | 24 | ||||||||||||||||
Information services | 7,876 | 8,159 | (3 | ) | 23,857 | 21,993 | 8 | |||||||||||||||
Net cost from operation and sale of other real estate owned | 1,143 | 392 | 192 | 1,712 | 710 | 141 | ||||||||||||||||
114,399 | 92,026 | 24 | 326,783 | 273,843 | 19 | |||||||||||||||||
Income before income taxes | 42,898 | 14,376 | 198 | 87,371 | 46,383 | 88 | ||||||||||||||||
Income tax expense | 15,197 | 4,415 | 244 | 31,514 | 13,742 | 129 | ||||||||||||||||
NET INCOME | $ | 27,701 | $ | 9,961 | 178 | $ | 55,857 | $ | 32,641 | 71 | ||||||||||||
Basic income per share | $ | 1.12 | $ | 0.45 | 149 | $ | 2.29 | $ | 1.60 | 43 | ||||||||||||
Diluted income per share | $ | 1.11 | $ | 0.45 | 147 | $ | 2.27 | $ | 1.58 | 44 | ||||||||||||
Basic weighted average number of shares outstanding | 24,811,169 | 22,035,317 | 13 | 24,398,683 | 20,407,386 | 20 | ||||||||||||||||
Diluted weighted average number of shares outstanding | 25,009,459 | 22,291,810 | 12 | 24,599,585 | 20,646,540 | 19 |
Quarter Ended | ||||||||||||||||||||
(in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 49,752 | $ | 47,262 | $ | 42,734 | $ | 41,018 | $ | 41,012 | ||||||||||
Investment securities | 5,476 | 4,002 | 3,053 | 3,164 | 2,754 | |||||||||||||||
Other | 102 | 27 | 267 | 256 | 224 | |||||||||||||||
55,330 | 51,291 | 46,054 | 44,438 | 43,990 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 5,362 | 4,449 | 3,569 | 3,145 | 3,069 | |||||||||||||||
Federal Home Loan Bank advances | 1,605 | 1,462 | 1,419 | 1,192 | 958 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2 | — | — | — | — | |||||||||||||||
Long-term debt | 1,440 | 823 | 311 | 289 | 278 | |||||||||||||||
Other | 119 | 75 | 64 | 72 | 51 | |||||||||||||||
8,528 | 6,809 | 5,363 | 4,698 | 4,356 | ||||||||||||||||
Net interest income | 46,802 | 44,482 | 40,691 | 39,740 | 39,634 | |||||||||||||||
Provision for credit losses | 1,250 | 1,100 | 1,400 | 1,900 | 700 | |||||||||||||||
Net interest income after provision for credit losses | 45,552 | 43,382 | 39,291 | 37,840 | 38,934 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Net gain on mortgage loan origination and sale activities | 92,600 | 85,630 | 61,263 | 46,642 | 57,885 | |||||||||||||||
Mortgage servicing income | 14,544 | 13,182 | 8,129 | 13,535 | 4,768 | |||||||||||||||
Income from WMS Series LLC | 1,174 | 1,164 | 136 | 196 | 380 | |||||||||||||||
Depositor and other retail banking fees | 1,744 | 1,652 | 1,595 | 1,642 | 1,701 | |||||||||||||||
Insurance agency commissions | 441 | 370 | 394 | 499 | 477 | |||||||||||||||
Gain on sale of investment securities available for sale | 48 | 62 | 35 | 1,404 | 1,002 | |||||||||||||||
Bargain purchase gain | — | — | — | 381 | 796 | |||||||||||||||
Other | 1,194 | 416 | 156 | 1,110 | 459 | |||||||||||||||
111,745 | 102,476 | 71,708 | 65,409 | 67,468 | ||||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and related costs | 79,164 | 75,167 | 67,284 | 60,349 | 60,991 | |||||||||||||||
General and administrative | 14,949 | 16,739 | 15,522 | 15,699 | 14,342 | |||||||||||||||
Amortization of core deposit intangibles | 579 | 525 | 532 | 514 | 527 | |||||||||||||||
Legal | 639 | 605 | 443 | 895 | 868 | |||||||||||||||
Consulting | 1,390 | 1,177 | 1,672 | 671 | 166 | |||||||||||||||
Federal Deposit Insurance Corporation assessments | 919 | 784 | 716 | 683 | 504 | |||||||||||||||
Occupancy | 7,740 | 7,513 | 7,155 | 6,903 | 6,077 | |||||||||||||||
Information services | 7,876 | 8,447 | 7,534 | 7,061 | 8,159 | |||||||||||||||
Net (income) cost from operation and sale of other real estate owned | 1,143 | 74 | 495 | (50 | ) | 392 | ||||||||||||||
114,399 | 111,031 | 101,353 | 92,725 | 92,026 | ||||||||||||||||
Income before income tax expense | 42,898 | 34,827 | 9,646 | 10,524 | 14,376 | |||||||||||||||
Income tax expense | 15,197 | 13,078 | 3,239 | 1,846 | 4,415 | |||||||||||||||
NET INCOME | $ | 27,701 | $ | 21,749 | $ | 6,407 | $ | 8,678 | $ | 9,961 | ||||||||||
Basic income per share | $ | 1.12 | $ | 0.88 | $ | 0.27 | $ | 0.39 | $ | 0.45 | ||||||||||
Diluted income per share | $ | 1.11 | $ | 0.87 | $ | 0.27 | $ | 0.39 | $ | 0.45 | ||||||||||
Basic weighted average number of shares outstanding | 24,811,169 | 24,708,375 | 23,676,506 | 22,050,022 | 22,035,317 | |||||||||||||||
Diluted weighted average number of shares outstanding | 25,009,459 | 24,911,919 | 23,877,376 | 22,297,183 | 22,291,810 |
(in thousands, except share data) | Sept. 30, 2016 | Dec. 31, 2015 | % Change | ||||||||
Assets: | |||||||||||
Cash and cash equivalents (including interest-earning instruments of $8,580 and $2,079) | $ | 55,998 | $ | 32,684 | 71 | % | |||||
Investment securities (includes $949,075 and $541,151 carried at fair value) | 991,325 | 572,164 | 73 | ||||||||
Loans held for sale (includes $833,630 and $632,273 carried at fair value) | 893,513 | 650,163 | 37 | ||||||||
Loans held for investment (net of allowance for loan losses of $33,975 and $29,278; includes $20,585, and $21,544 carried at fair value) | 3,764,178 | 3,192,720 | 18 | ||||||||
Mortgage servicing rights (includes $149,910 and $156,604 carried at fair value) | 167,501 | 171,255 | (2 | ) | |||||||
Other real estate owned | 6,440 | 7,531 | (14 | ) | |||||||
Federal Home Loan Bank stock, at cost | 39,783 | 44,342 | (10 | ) | |||||||
Premises and equipment, net | 72,951 | 63,738 | 14 | ||||||||
Goodwill | 19,900 | 11,521 | 73 | ||||||||
Other assets | 215,012 | 148,377 | 45 | ||||||||
Total assets | $ | 6,226,601 | $ | 4,894,495 | 27 | ||||||
Liabilities and shareholders’ equity: | |||||||||||
Liabilities: | |||||||||||
Deposits | $ | 4,504,560 | $ | 3,231,953 | 39 | ||||||
Federal Home Loan Bank advances | 858,923 | 1,018,159 | (16 | ) | |||||||
Accounts payable and other liabilities | 151,968 | 117,251 | 30 | ||||||||
Long-term debt | 125,122 | 61,857 | 102 | ||||||||
Total liabilities | 5,640,573 | 4,429,220 | 27 | ||||||||
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, 24,833,008 shares and 22,076,534 shares | 511 | 511 | — | ||||||||
Additional paid-in capital | 276,844 | 222,328 | 25 | ||||||||
Retained earnings | 300,742 | 244,885 | 23 | ||||||||
Accumulated other comprehensive income (loss) | 7,931 | (2,449 | ) | (424 | ) | ||||||
Total shareholders’ equity | 586,028 | 465,275 | 26 | ||||||||
Total liabilities and shareholders’ equity | $ | 6,226,601 | $ | 4,894,495 | 27 |
(in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 55,998 | $ | 45,229 | $ | 46,356 | $ | 32,684 | $ | 37,303 | ||||||||||
Investment securities | 991,325 | 928,364 | 687,081 | 572,164 | 602,018 | |||||||||||||||
Loans held for sale | 893,513 | 772,780 | 696,692 | 650,163 | 882,319 | |||||||||||||||
Loans held for investment, net | 3,764,178 | 3,698,959 | 3,523,551 | 3,192,720 | 3,012,943 | |||||||||||||||
Mortgage servicing rights | 167,501 | 147,266 | 148,851 | 171,255 | 146,080 | |||||||||||||||
Other real estate owned | 6,440 | 10,698 | 7,273 | 7,531 | 8,273 | |||||||||||||||
Federal Home Loan Bank stock, at cost | 39,783 | 40,414 | 40,548 | 44,342 | 44,652 | |||||||||||||||
Premises and equipment, net | 72,951 | 67,884 | 67,323 | 63,738 | 60,544 | |||||||||||||||
Goodwill | 19,900 | 19,846 | 20,366 | 11,521 | 11,945 | |||||||||||||||
Other assets | 215,012 | 209,738 | 179,211 | 148,377 | 169,576 | |||||||||||||||
Total assets | $ | 6,226,601 | $ | 5,941,178 | $ | 5,417,252 | $ | 4,894,495 | $ | 4,975,653 | ||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits | $ | 4,504,560 | $ | 4,239,155 | $ | 3,823,027 | $ | 3,231,953 | $ | 3,307,693 | ||||||||||
Federal Home Loan Bank advances | 858,923 | 878,987 | 883,574 | 1,018,159 | 1,025,745 | |||||||||||||||
Accounts payable and other liabilities | 151,968 | 138,307 | 119,662 | 117,251 | 119,900 | |||||||||||||||
Long-term debt | 125,122 | 125,126 | 61,857 | 61,857 | 61,857 | |||||||||||||||
Total liabilities | 5,640,573 | 5,381,575 | 4,888,120 | 4,429,220 | 4,515,195 | |||||||||||||||
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 | 276,844 | 276,303 | 273,168 | 222,328 | 222,047 | |||||||||||||||
Retained earnings | 300,742 | 273,041 | 251,292 | 244,885 | 236,207 | |||||||||||||||
Accumulated other comprehensive income (loss) | 7,931 | 9,748 | 4,161 | (2,449 | ) | 1,693 | ||||||||||||||
Total shareholders’ equity | 586,028 | 559,603 | 529,132 | 465,275 | 460,458 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,226,601 | $ | 5,941,178 | $ | 5,417,252 | $ | 4,894,495 | $ | 4,975,653 |
Quarter Ended September 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets: (1) | ||||||||||||||||||||||
Cash and cash equivalents | $ | 39,069 | $ | 104 | 1.06 | % | $ | 27,725 | $ | 13 | 0.18 | % | ||||||||||
Investment securities | 981,223 | 6,363 | 2.59 | % | 539,330 | 3,453 | 2.54 | % | ||||||||||||||
Loans held for sale | 902,574 | 8,201 | 3.63 | % | 851,878 | 8,394 | 3.91 | % | ||||||||||||||
Loans held for investment | 3,770,133 | 41,580 | 4.38 | % | 2,975,624 | 32,727 | 4.36 | % | ||||||||||||||
Total interest-earning assets | 5,692,999 | 56,248 | 3.93 | % | 4,394,557 | 44,587 | 4.03 | % | ||||||||||||||
Noninterest-earning assets (2) | 490,242 | 423,048 | ||||||||||||||||||||
Total assets | $ | 6,183,241 | $ | 4,817,605 | ||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand accounts | $ | 458,660 | 484 | 0.42 | % | $ | 404,874 | 495 | 0.49 | % | ||||||||||||
Savings accounts | 300,831 | 261 | 0.35 | % | 299,135 | 258 | 0.34 | % | ||||||||||||||
Money market accounts | 1,443,111 | 2,064 | 0.57 | % | 1,126,119 | 1,268 | 0.45 | % | ||||||||||||||
Certificate accounts | 1,140,737 | 2,669 | 0.93 | % | 743,384 | 1,101 | 0.59 | % | ||||||||||||||
Total interest-bearing deposits | 3,343,339 | 5,478 | 0.65 | % | 2,573,512 | 3,122 | 0.48 | % | ||||||||||||||
FHLB advances | 988,358 | 1,605 | 0.65 | % | 887,711 | 958 | 0.43 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 2,242 | 5 | 0.85 | % | — | — | — | % | ||||||||||||||
Long-term debt | 125,274 | 1,440 | 4.57 | % | 61,857 | 278 | 1.78 | % | ||||||||||||||
Total interest-bearing liabilities | 4,459,213 | 8,528 | 0.76 | % | 3,523,080 | 4,358 | 0.49 | % | ||||||||||||||
Noninterest-bearing liabilities | 1,135,693 | 834,036 | ||||||||||||||||||||
Total liabilities | 5,594,906 | 4,357,116 | ||||||||||||||||||||
Shareholders’ equity | 588,335 | 460,489 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,183,241 | $ | 4,817,605 | ||||||||||||||||||
Net interest income (3) | $ | 47,720 | $ | 40,229 | ||||||||||||||||||
Net interest spread | 3.17 | % | 3.54 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.17 | % | 0.13 | % | ||||||||||||||||||
Net interest margin | 3.34 | % | 3.67 | % |
(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 $918 thousand and $595 thousand for the quarters ended September 30, 2016 and September 30, 2015, respectively. The estimated federal statutory tax rate was 35% for the periods presented. |
Nine Months Ended September 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
(in thousands) | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||
Assets: | ||||||||||||||||||||||
Interest-earning assets: (1) | ||||||||||||||||||||||
Cash and cash equivalents | $ | 38,893 | $ | 175 | 0.60 | % | $ | 37,719 | $ | 55 | 0.19 | % | ||||||||||
Investment securities | 791,749 | 14,805 | 2.48 | % | 503,280 | 10,355 | 2.74 | % | ||||||||||||||
Loans held for sale | 724,592 | 20,252 | 3.75 | % | 769,153 | 22,010 | 3.81 | % | ||||||||||||||
Loans held for investment | 3,616,222 | 119,586 | 4.39 | % | 2,738,085 | 89,786 | 4.37 | % | ||||||||||||||
Total interest-earning assets | 5,171,456 | 154,818 | 3.99 | % | 4,048,237 | 122,206 | 4.02 | % | ||||||||||||||
Noninterest-earning assets (2) | 448,172 | 389,691 | ||||||||||||||||||||
Total assets | $ | 5,619,628 | $ | 4,437,928 | ||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand accounts | $ | 444,782 | 1,465 | 0.44 | % | $ | 283,523 | 1,004 | 0.46 | % | ||||||||||||
Savings accounts | 299,763 | 777 | 0.35 | % | 281,212 | 800 | 0.39 | % | ||||||||||||||
Money market accounts | 1,308,760 | 5,021 | 0.51 | % | 1,113,001 | 3,643 | 0.44 | % | ||||||||||||||
Certificate accounts | 997,974 | 6,374 | 0.84 | % | 792,285 | 3,313 | 0.56 | % | ||||||||||||||
Total interest-bearing deposits | 3,051,279 | 13,637 | 0.59 | % | 2,470,021 | 8,760 | 0.47 | % | ||||||||||||||
FHLB advances | 944,020 | 4,486 | 0.63 | % | 730,519 | 2,477 | 0.46 | % | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 753 | 5 | 0.28 | % | 15,204 | 28 | 0.16 | % | ||||||||||||||
Long-term debt | 92,964 | 2,573 | 3.40 | % | 61,857 | 814 | 1.76 | % | ||||||||||||||
Total interest-bearing liabilities | 4,089,016 | 20,701 | 0.67 | % | 3,277,601 | 12,079 | 0.49 | % | ||||||||||||||
Noninterest-bearing liabilities | 981,370 | 731,256 | ||||||||||||||||||||
Total liabilities | 5,070,386 | 4,008,857 | ||||||||||||||||||||
Shareholders’ equity | 549,242 | 429,071 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,619,628 | $ | 4,437,928 | ||||||||||||||||||
Net interest income (3) | $ | 134,117 | $ | 110,127 | ||||||||||||||||||
Net interest spread | 3.32 | % | 3.53 | % | ||||||||||||||||||
Impact of noninterest-bearing sources | 0.14 | % | 0.10 | % | ||||||||||||||||||
Net interest margin | 3.46 | % | 3.63 | % |
(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 $2.1 million and $1.5 million for the nine months ended September 30, 2016 and September 30, 2015, respectively. The estimated federal statutory tax rate was 35% for the periods presented. |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Net interest income | $ | 39,339 | $ | 38,393 | $ | 35,646 | $ | 32,759 | $ | 31,509 | ||||||||||
Provision for credit losses | 1,250 | 1,100 | 1,400 | 1,900 | 700 | |||||||||||||||
Noninterest income | 9,771 | 8,181 | 4,643 | 8,778 | 6,884 | |||||||||||||||
Noninterest expense | 32,171 | 34,103 | 36,630 | 29,542 | 28,110 | |||||||||||||||
Income before income taxes | 15,689 | 11,371 | 2,259 | 10,095 | 9,583 | |||||||||||||||
Income tax expense | 5,557 | 4,292 | 717 | 1,718 | 2,783 | |||||||||||||||
Net income | $ | 10,132 | $ | 7,079 | $ | 1,542 | $ | 8,377 | $ | 6,800 | ||||||||||
Net income, excluding acquisition-related expenses (net of tax) and bargain purchase gain (1) | $ | 10,465 | $ | 7,745 | $ | 4,920 | $ | 8,486 | $ | 6,288 | ||||||||||
Efficiency ratio (2) | 65.51 | % | 73.22 | % | 90.92 | % | 71.12 | % | 73.22 | % | ||||||||||
Core efficiency ratio (1)(3) | 64.47 | % | 71.02 | % | 78.02 | % | 69.95 | % | 73.60 | % | ||||||||||
Full-time equivalent employees (ending) | 948 | 926 | 903 | 828 | 807 | |||||||||||||||
Net gain on loan origination and sale activities: | ||||||||||||||||||||
Multifamily DUS ® (4) | $ | 2,695 | $ | 3,655 | $ | 1,529 | $ | 2,384 | $ | 1,488 | ||||||||||
Other (5) | 1,028 | 935 | 279 | 762 | 422 | |||||||||||||||
$ | 3,723 | $ | 4,590 | $ | 1,808 | $ | 3,146 | $ | 1,910 | |||||||||||
Production volumes for sale to the secondary market: | ||||||||||||||||||||
Loan originations | ||||||||||||||||||||
Multifamily DUS ® (4) | $ | 45,497 | $ | 146,535 | $ | 39,094 | $ | 53,279 | $ | 47,342 | ||||||||||
Other (5) | 2,913 | 5,528 | — | — | — | |||||||||||||||
Loans sold | ||||||||||||||||||||
Multifamily DUS ® (4) | 53,684 | 109,394 | 47,970 | 63,779 | 42,333 | |||||||||||||||
Other (5) | $ | 55,055 | $ | 31,813 | $ | — | $ | — | $ | — |
(1) | Commercial and Consumer Banking segment net income and core efficiency ratios, excluding acquisition-related items, 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). |
(3) | Noninterest expense divided by total net revenue (net interest income and noninterest income), excluding acquisition-related items. |
(4) | Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS"®) is a registered trademark of Fannie Mae. |
(5) | Includes multifamily loans originated from sources other than DUS®. |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Servicing income, net: | ||||||||||||||||||||
Servicing fees and other | $ | 3,425 | $ | 1,871 | $ | 1,441 | $ | 1,258 | $ | 1,181 | ||||||||||
Amortization of multifamily MSRs | (661 | ) | (648 | ) | (637 | ) | (551 | ) | (511 | ) | ||||||||||
Commercial mortgage servicing income | $ | 2,764 | $ | 1,223 | $ | 804 | $ | 707 | $ | 670 |
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Commercial | ||||||||||||||||||||
Multifamily | $ | 1,055,181 | $ | 1,023,505 | $ | 946,191 | $ | 924,367 | $ | 866,880 | ||||||||||
Other | 67,348 | 62,466 | 62,566 | 79,513 | 86,567 | |||||||||||||||
Total commercial loans serviced for others | $ | 1,122,529 | $ | 1,085,971 | $ | 1,008,757 | $ | 1,003,880 | $ | 953,447 |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Beginning balance | $ | 16,366 | $ | 15,402 | $ | 14,651 | $ | 13,379 | $ | 12,649 | ||||||||||
Originations | 1,887 | 1,612 | 1,388 | 1,823 | 1,241 | |||||||||||||||
Amortization | (666 | ) | (648 | ) | (637 | ) | (551 | ) | (511 | ) | ||||||||||
Ending balance | $ | 17,587 | $ | 16,366 | $ | 15,402 | $ | 14,651 | $ | 13,379 | ||||||||||
Ratio of MSR carrying value to related loans serviced for others | 1.65 | % | 1.58 | % | 1.61 | % | 1.54 | % | 1.48 | % | ||||||||||
MSR servicing fee multiple (1) | 3.70 | 3.62 | 3.54 | 3.42 | 3.34 | |||||||||||||||
Weighted-average note rate (loans serviced for others) | 4.60 | % | 4.68 | % | 4.78 | % | 4.77 | % | 4.82 | % | ||||||||||
Weighted-average servicing fee (loans serviced for others) | 0.45 | % | 0.44 | % | 0.45 | % | 0.45 | % | 0.44 | % |
(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) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Available for sale: | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Residential | $ | 152,236 | $ | 139,074 | $ | 82,395 | $ | 68,101 | $ | 91,005 | ||||||||||
Commercial | 27,208 | 24,707 | 24,630 | 17,851 | 24,064 | |||||||||||||||
Municipal bonds | 355,344 | 335,801 | 228,924 | 171,869 | 187,083 | |||||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||||||
Residential | 182,833 | 163,406 | 112,176 | 84,497 | 100,228 | |||||||||||||||
Commercial | 120,259 | 116,099 | 83,822 | 79,133 | 43,807 | |||||||||||||||
Corporate debt securities | 85,191 | 85,249 | 80,852 | 78,736 | 82,882 | |||||||||||||||
U.S. Treasury | 26,004 | 26,020 | 41,026 | 40,964 | 41,013 | |||||||||||||||
Total available for sale | $ | 949,075 | $ | 890,356 | $ | 653,825 | $ | 541,151 | $ | 570,082 | ||||||||||
Held to maturity | 42,250 | 38,008 | 33,256 | 31,013 | 31,936 | |||||||||||||||
$ | 991,325 | $ | 928,364 | $ | 687,081 | $ | 572,164 | $ | 602,018 | |||||||||||
Weighted average duration in years | ||||||||||||||||||||
Available for sale | 4.0 | 4.1 | 3.9 | 4.2 | 3.9 |
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Consumer loans | ||||||||||||||||||||
Single family (1) | $ | 1,186,476 | $ | 1,218,216 | $ | 1,231,707 | $ | 1,203,180 | $ | 1,171,967 | ||||||||||
Home equity and other | 338,155 | 309,204 | 275,405 | 256,373 | 237,491 | |||||||||||||||
1,524,631 | 1,527,420 | 1,507,112 | 1,459,553 | 1,409,458 | ||||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 810,346 | 762,170 | 661,932 | 600,703 | 563,241 | |||||||||||||||
Multifamily | 562,272 | 562,728 | 543,887 | 426,557 | 382,392 | |||||||||||||||
Construction/land development | 661,813 | 639,441 | 629,820 | 583,160 | 529,871 | |||||||||||||||
Commercial business | 237,117 | 239,077 | 213,084 | 154,262 | 158,135 | |||||||||||||||
2,271,548 | 2,203,416 | 2,048,723 | 1,764,682 | 1,633,639 | ||||||||||||||||
3,796,179 | 3,730,836 | 3,555,835 | 3,224,235 | 3,043,097 | ||||||||||||||||
Net deferred loan fees and costs | 1,974 | 779 | (979 | ) | (2,237 | ) | (3,232 | ) | ||||||||||||
3,798,153 | 3,731,615 | 3,554,856 | 3,221,998 | 3,039,865 | ||||||||||||||||
Allowance for loan losses | (33,975 | ) | (32,656 | ) | (31,305 | ) | (29,278 | ) | (26,922 | ) | ||||||||||
$ | 3,764,178 | $ | 3,698,959 | $ | 3,523,551 | $ | 3,192,720 | $ | 3,012,943 |
(1) | Includes $20.6 million, $22.4 million, $18.3 million, $21.5 million and $23.8 million of single family loans that are carried at fair value at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Beginning balance | $ | 34,001 | $ | 32,423 | $ | 30,659 | $ | 27,887 | $ | 26,448 | ||||||||||
Provision for credit losses | 1,250 | 1,100 | 1,400 | 1,900 | 700 | |||||||||||||||
Recoveries, net of (charge-offs) | (18 | ) | 478 | 364 | 872 | 739 | ||||||||||||||
Ending balance | $ | 35,233 | $ | 34,001 | $ | 32,423 | $ | 30,659 | $ | 27,887 | ||||||||||
Components: | ||||||||||||||||||||
Allowance for loan losses | $ | 33,975 | $ | 32,656 | $ | 31,305 | $ | 29,278 | $ | 26,922 | ||||||||||
Allowance for unfunded commitments | 1,258 | 1,345 | 1,118 | 1,381 | 965 | |||||||||||||||
Allowance for credit losses | $ | 35,233 | $ | 34,001 | $ | 32,423 | $ | 30,659 | $ | 27,887 | ||||||||||
Allowance as a % of loans held for investment(1) (2) | 0.89 | % | 0.88 | % | 0.88 | % | 0.91 | % | 0.89 | % | ||||||||||
Allowance as a % of nonaccrual loans | 131.07 | % | 207.41 | % | 195.51 | % | 170.54 | % | 138.27 | % |
(1) | Includes loans acquired with bank acquisitions. Excluding acquired loans, allowance for loan losses/total loans was 1.05%, 1.03%, 1.07%, 1.10% and 1.11% at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
(2) | In this calculation, loans held for investment includes loans that are carried at fair value. |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Beginning balance | $ | 26,443 | $ | 23,285 | $ | 24,699 | $ | 27,743 | $ | 32,736 | ||||||||||
Additions | 13,751 | 5,314 | 2,401 | 4,484 | 2,118 | |||||||||||||||
Reductions: | ||||||||||||||||||||
Recoveries, net of (charge-offs) | (18 | ) | 478 | 364 | 872 | 739 | ||||||||||||||
OREO sales | (3,992 | ) | — | (159 | ) | (916 | ) | (2,756 | ) | |||||||||||
OREO writedowns and other adjustments | (1,160 | ) | — | (393 | ) | (127 | ) | (399 | ) | |||||||||||
Principal paydown, payoff advances and other adjustments | (835 | ) | (2,588 | ) | (918 | ) | (5,925 | ) | (2,587 | ) | ||||||||||
Transferred back to accrual status | (1,828 | ) | (46 | ) | (2,709 | ) | (1,432 | ) | (2,108 | ) | ||||||||||
Total reductions | (7,833 | ) | (2,156 | ) | (3,815 | ) | (7,528 | ) | (7,111 | ) | ||||||||||
Net additions (reductions) | 5,918 | 3,158 | (1,414 | ) | (3,044 | ) | (4,993 | ) | ||||||||||||
Ending balance(1) | $ | 32,361 | $ | 26,443 | $ | 23,285 | $ | 24,699 | $ | 27,743 |
(1) | Includes $2.1 million, $2.6 million, $2.6 million, $1.2 million and $1.5 million of nonperforming loans guaranteed by the SBA at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Nonaccrual loans | $ | 25,921 | $ | 15,745 | $ | 16,012 | $ | 17,168 | $ | 19,470 | ||||||||||
Other real estate owned | 6,440 | 10,698 | 7,273 | 7,531 | 8,273 | |||||||||||||||
Total nonperforming assets(1) | $ | 32,361 | $ | 26,443 | $ | 23,285 | $ | 24,699 | $ | 27,743 | ||||||||||
Nonaccrual loans as a % of total loans | 0.68 | % | 0.42 | % | 0.45 | % | 0.53 | % | 0.64 | % | ||||||||||
Nonperforming assets as a % of total assets | 0.52 | % | 0.45 | % | 0.43 | % | 0.50 | % | 0.56 | % |
(1) | Includes $2.1 million, $2.6 million, $2.6 million, $1.2 million and $1.5 million of nonperforming loans guaranteed by the SBA at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, respectively. |
(in thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | ||||||||||||||||||
September 30, 2016 | ||||||||||||||||||||||||
Total loans held for investment | $ | 9,493 | $ | 4,225 | $ | 58,029 | $ | 71,747 | $ | 3,724,432 | $ | 3,796,179 | ||||||||||||
Less: FHA/VA loans(1) | 6,382 | 2,762 | 32,108 | 41,252 | 59,585 | 100,837 | ||||||||||||||||||
Less: guaranteed portion of SBA loans(2) | — | — | 2,100 | 2,100 | 5,687 | 7,787 | ||||||||||||||||||
Total loans, excluding FHA/VA and guaranteed portion of SBA loans | $ | 3,111 | $ | 1,463 | $ | 23,821 | $ | 28,395 | $ | 3,659,160 | $ | 3,687,555 | ||||||||||||
As a % of total loans, excluding FHA/VA and guaranteed portion of SBA loans | 0.08 | % | 0.04 | % | 0.65 | % | 0.77 | % | 99.23 | % | 100.00 | % | ||||||||||||
December 31, 2015 | ||||||||||||||||||||||||
Total loans held for investment | $ | 8,503 | $ | 3,935 | $ | 53,781 | $ | 66,219 | $ | 3,158,016 | $ | 3,224,235 | ||||||||||||
Less: FHA/VA loans(1) | 5,762 | 2,293 | 36,595 | 44,650 | 55,210 | 99,860 | ||||||||||||||||||
Less: guaranteed portion of SBA loans(2) | — | — | 1,177 | $ | 1,177 | $ | 8,384 | $ | 9,561 | |||||||||||||||
Total loans, excluding FHA/VA and guaranteed portion of SBA loans | $ | 2,741 | $ | 1,642 | $ | 16,009 | $ | 20,392 | $ | 3,094,422 | $ | 3,114,814 | ||||||||||||
As a % of total loans, excluding FHA/VA and guaranteed portion of SBA loans | 0.09 | % | 0.05 | % | 0.51 | % | 0.65 | % | 99.35 | % | 100.00 | % |
(1) | Represents loans whose repayments are insured by the FHA or guaranteed by the VA. |
(2) | Represents that portion of loans whose repayments are guaranteed by the SBA. |
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Accrual (1) | $ | 81,270 | $ | 83,818 | $ | 84,595 | $ | 84,411 | $ | 89,369 | ||||||||||
Nonaccrual | 5,680 | 4,112 | 3,686 | 3,931 | 3,594 | |||||||||||||||
Total TDRs | $ | 86,950 | $ | 87,930 | $ | 88,281 | $ | 88,342 | $ | 92,963 |
(1) | Includes single family consumer loan balances insured by the FHA or guaranteed by the VA of $37.1 million, $37.1 million, $32.9 million, $29.6 million and $29.1 million at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Recorded investment of re-defaults(1) | $ | 1,173 | $ | 2,460 | $ | 271 | $ | — | $ | 620 |
(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) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Deposits by Product: | ||||||||||||||||||||
Noninterest-bearing accounts - checking and savings | $ | 499,106 | $ | 504,988 | $ | 452,267 | $ | 370,523 | $ | 372,070 | ||||||||||
Interest-bearing transaction and savings deposits: | ||||||||||||||||||||
NOW accounts | 501,370 | 518,132 | 495,467 | 408,477 | 452,482 | |||||||||||||||
Statement savings accounts due on demand | 303,872 | 300,070 | 300,952 | 292,092 | 296,983 | |||||||||||||||
Money market accounts due on demand | 1,513,547 | 1,366,581 | 1,244,064 | 1,155,464 | 1,140,660 | |||||||||||||||
Total interest-bearing transaction and savings deposits | 2,318,789 | 2,184,783 | 2,040,483 | 1,856,033 | 1,890,125 | |||||||||||||||
Total transaction and savings deposits | 2,817,895 | 2,689,771 | 2,492,750 | 2,226,556 | 2,262,195 | |||||||||||||||
Certificates of deposit | 1,097,263 | 1,139,249 | 901,559 | 732,892 | 719,208 | |||||||||||||||
Noninterest-bearing accounts - other | 589,402 | 410,135 | 428,718 | 272,505 | 326,290 | |||||||||||||||
Total deposits | $ | 4,504,560 | $ | 4,239,155 | $ | 3,823,027 | $ | 3,231,953 | $ | 3,307,693 | ||||||||||
Percent of total deposits: | ||||||||||||||||||||
Noninterest-bearing accounts - checking and savings | 11.1 | % | 11.9 | % | 11.8 | % | 11.5 | % | 11.2 | % | ||||||||||
Interest-bearing transaction and savings deposits: | ||||||||||||||||||||
NOW accounts | 11.1 | 12.2 | 13.0 | 12.6 | 13.7 | |||||||||||||||
Statement savings accounts due on demand | 6.7 | 7.1 | 7.9 | 9.0 | 9.0 | |||||||||||||||
Money market accounts due on demand | 33.6 | 32.2 | 32.5 | 35.8 | 34.5 | |||||||||||||||
Total interest-bearing transaction and savings deposits | 51.4 | 51.5 | 53.4 | 57.4 | 57.2 | |||||||||||||||
Total transaction and savings deposits | 62.5 | 63.4 | 65.2 | 68.9 | 68.4 | |||||||||||||||
Certificates of deposit | 24.4 | 26.9 | 23.6 | 22.7 | 21.7 | |||||||||||||||
Noninterest-bearing accounts - other | 13.1 | 9.7 | 11.2 | 8.4 | 9.9 | |||||||||||||||
Total deposits | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Net interest income | $ | 7,463 | $ | 6,089 | $ | 5,045 | $ | 6,981 | $ | 8,125 | ||||||||||
Noninterest income | 101,974 | 94,295 | 67,065 | 56,631 | 60,584 | |||||||||||||||
Noninterest expense | 82,228 | 76,928 | 64,723 | 63,183 | 63,916 | |||||||||||||||
Income before income taxes | 27,209 | 23,456 | 7,387 | 429 | 4,793 | |||||||||||||||
Income tax expense | 9,640 | 8,786 | 2,522 | 128 | 1,632 | |||||||||||||||
Net income | $ | 17,569 | $ | 14,670 | $ | 4,865 | $ | 301 | $ | 3,161 | ||||||||||
Efficiency ratio (1) | 75.14 | % | 76.63 | % | 89.76 | % | 99.33 | % | 93.02 | % | ||||||||||
Full-time equivalent employees (ending) | 1,483 | 1,409 | 1,361 | 1,311 | 1,293 | |||||||||||||||
Production volumes for sale to the secondary market: | ||||||||||||||||||||
Single family mortgage closed loan volume (2)(3) | $ | 2,647,943 | $ | 2,261,599 | $ | 1,573,148 | $ | 1,648,735 | $ | 1,934,151 | ||||||||||
Single family mortgage interest rate lock commitments(2) | $ | 2,689,640 | $ | 2,361,691 | $ | 1,803,703 | $ | 1,340,148 | $ | 1,806,767 | ||||||||||
Single family mortgage loans sold(2) | $ | 2,489,415 | $ | 2,173,392 | $ | 1,471,583 | $ | 1,830,768 | $ | 1,965,223 |
(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) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | ||||||||||||||||
Gain on mortgage loan origination and sale activities:(1) | |||||||||||||||||||||
Single family: | |||||||||||||||||||||
Servicing value and secondary market gains(2) | $ | 79,946 | $ | 73,685 | $ | 54,127 | $ | 37,727 | $ | 49,613 | |||||||||||
Loan origination fees | 8,931 | 7,355 | 5,328 | 5,769 | 6,362 | ||||||||||||||||
Total mortgage banking gain on mortgage loan origination and sale activities(1) | $ | 88,877 | $ | 81,040 | $ | 59,455 | $ | 43,496 | $ | 55,975 | |||||||||||
Composite Margin (in basis points): | |||||||||||||||||||||
Servicing value and secondary market gains / interest rate lock commitments(3) | 297 | 312 | 300 | 281 | 275 | ||||||||||||||||
Loan origination fees / retail mortgage originations(4) | 37 | 35 | 36 | 38 | 36 | ||||||||||||||||
Composite Margin | 334 | 347 | 336 | 319 | 311 |
(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 fees are stated as a percentage of mortgage originations from the retail channel and excludes mortgage loans purchased from WMS Series LLC. |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Servicing income, net: | ||||||||||||||||||||
Servicing fees and other | $ | 12,628 | $ | 11,531 | $ | 11,089 | $ | 10,683 | $ | 9,955 | ||||||||||
Changes in fair value of single family MSRs due to modeled amortization (1) | (8,925 | ) | (7,758 | ) | (7,257 | ) | (7,313 | ) | (8,478 | ) | ||||||||||
3,703 | 3,773 | 3,832 | 3,370 | 1,477 | ||||||||||||||||
Risk management, single family MSRs: | ||||||||||||||||||||
Changes in fair value of MSR due to changes in model inputs and/or assumptions (2) | 4,915 | (14,055 | ) | (28,214 | ) | 14,779 | (19,396 | ) | ||||||||||||
Net gain (loss) from derivatives economically hedging MSR | 3,162 | 22,241 | 31,707 | (5,321 | ) | 22,017 | ||||||||||||||
8,077 | 8,186 | 3,493 | 9,458 | 2,621 | ||||||||||||||||
Mortgage Banking servicing income | $ | 11,780 | $ | 11,959 | $ | 7,325 | $ | 12,828 | $ | 4,098 |
(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. |
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Single family | ||||||||||||||||||||
U.S. government and agency | $ | 17,593,901 | $ | 16,433,411 | $ | 15,302,363 | $ | 14,628,596 | $ | 13,590,706 | ||||||||||
Other | 605,139 | 640,109 | 678,569 | 719,215 | 680,481 | |||||||||||||||
Total single family loans serviced for others | $ | 18,199,040 | $ | 17,073,520 | $ | 15,980,932 | $ | 15,347,811 | $ | 14,271,187 |
Quarter Ended | ||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | |||||||||||||||
Beginning balance | $ | 130,900 | $ | 133,449 | $ | 156,604 | $ | 132,701 | $ | 140,588 | ||||||||||
Additions and amortization: | ||||||||||||||||||||
Originations | 23,020 | 19,264 | 12,316 | 16,437 | 19,984 | |||||||||||||||
Purchases | — | — | — | — | 3 | |||||||||||||||
Changes due to modeled amortization (1) | (8,925 | ) | (7,758 | ) | (7,257 | ) | (7,313 | ) | (8,478 | ) | ||||||||||
Net additions and amortization | 14,095 | 11,506 | 5,059 | 9,124 | 11,509 | |||||||||||||||
Changes in fair value due to changes in model inputs and/or assumptions (2) | 4,915 | (14,055 | ) | (28,214 | ) | 14,779 | (19,396 | ) | ||||||||||||
Ending balance | $ | 149,910 | $ | 130,900 | $ | 133,449 | $ | 156,604 | $ | 132,701 | ||||||||||
Ratio of MSR carrying value to related loans serviced for others | 0.82 | % | 0.77 | % | 0.84 | % | 1.03 | % | 0.93 | % | ||||||||||
MSR servicing fee multiple (3) | 2.87 | 2.67 | 2.91 | 3.59 | 3.21 | |||||||||||||||
Weighted-average note rate (loans serviced for others) | 4.00 | % | 4.05 | % | 4.07 | % | 4.08 | % | 4.09 | % | ||||||||||
Weighted-average servicing fee (loans serviced for others) | 0.29 | % | 0.29 | % | 0.29 | % | 0.29 | % | 0.29 | % |
(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) | 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 | Nine Months Ended | |||||||||||||||||||||||||||
(dollars in thousands, except share data) | Sept. 30, 2016 | June 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | |||||||||||||||||||||
Shareholders' equity | $ | 586,028 | $ | 559,603 | $ | 529,132 | $ | 465,275 | $ | 460,458 | $ | 586,028 | $ | 460,458 | ||||||||||||||
Less: Goodwill and other intangibles | (28,573 | ) | (28,861 | ) | (29,126 | ) | (20,266 | ) | (20,250 | ) | (28,573 | ) | (20,250 | ) | ||||||||||||||
Tangible shareholders' equity | $ | 557,455 | $ | 530,742 | $ | 500,006 | $ | 445,009 | $ | 440,208 | $ | 557,455 | $ | 440,208 | ||||||||||||||
Common shares outstanding | 24,833,008 | 24,821,349 | 24,550,219 | 22,076,534 | 22,061,702 | 24,833,008 | 22,061,702 | |||||||||||||||||||||
Book value per share | $ | 23.60 | $ | 22.55 | $ | 21.55 | $ | 21.08 | $ | 20.87 | $ | 23.60 | $ | 20.87 | ||||||||||||||
Impact of goodwill and other intangibles | (1.15 | ) | (1.17 | ) | (1.18 | ) | (0.92 | ) | (0.92 | ) | (1.15 | ) | (0.92 | ) | ||||||||||||||
Tangible book value per share | $ | 22.45 | $ | 21.38 | $ | 20.37 | $ | 20.16 | $ | 19.95 | $ | 22.45 | $ | 19.95 | ||||||||||||||
Average shareholders' equity | $ | 588,335 | $ | 548,080 | $ | 510,883 | $ | 470,635 | $ | 460,489 | $ | 549,242 | $ | 429,071 | ||||||||||||||
Less: Average goodwill and other intangibles | (28,769 | ) | (28,946 | ) | (26,645 | ) | (20,195 | ) | (20,596 | ) | (28,122 | ) | (19,491 | ) | ||||||||||||||
Average tangible shareholders' equity | $ | 559,566 | $ | 519,134 | $ | 484,238 | $ | 450,440 | $ | 439,893 | $ | 521,120 | $ | 409,580 | ||||||||||||||
Return on average shareholders’ equity | 18.83 | % | 15.87 | % | 5.02 | % | 7.38 | % | 8.65 | % | 13.56 | % | 10.14 | % | ||||||||||||||
Impact of goodwill and other intangibles | 0.97 | % | 0.89 | % | 0.27 | % | 0.33 | % | 0.41 | % | 0.73 | % | 0.49 | % | ||||||||||||||
Return on average tangible shareholders' equity | 19.80 | % | 16.76 | % | 5.29 | % | 7.71 | % | 9.06 | % | 14.29 | % | 10.63 | % | ||||||||||||||
Return on average shareholders' equity | 18.83 | % | 15.87 | % | 5.02 | % | 7.38 | % | 8.65 | % | 13.56 | % | 10.14 | % | ||||||||||||||
Impact of acquisition-related expenses (net of tax) and bargain purchase gain | 0.24 | % | 0.49 | % | 2.64 | % | 0.09 | % | (0.44 | )% | 1.06 | % | 0.91 | % | ||||||||||||||
Return on average shareholders' equity, excluding acquisition-related expenses (net of tax) and bargain purchase gain | 19.07 | % | 16.36 | % | 7.66 | % | 7.47 | % | 8.21 | % | 14.62 | % | 11.05 | % | ||||||||||||||
Return on average assets | 1.79 | % | 1.54 | % | 0.51 | % | 0.71 | % | 0.83 | % | 1.33 | % | 0.98 | % | ||||||||||||||
Impact of acquisition-related expenses (net of tax) and bargain purchase gain | 0.02 | % | 0.05 | % | 0.27 | % | 0.01 | % | (0.05 | )% | 0.10 | % | 0.09 | % | ||||||||||||||
Return on average assets, excluding acquisition-related expenses (net of tax) and bargain purchase gain | 1.81 | % | 1.59 | % | 0.78 | % | 0.72 | % | 0.78 | % | 1.43 | % | 1.07 | % |
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | |||||||||||||||||||||
Consolidated results: | ||||||||||||||||||||||||||||
Net income | $ | 27,701 | $ | 21,749 | $ | 6,407 | $ | 8,678 | $ | 9,961 | $ | 55,857 | $ | 32,641 | ||||||||||||||
Impact of acquisition-related expenses (net of tax) and bargain purchase gain | 333 | 666 | 3,378 | 109 | (512 | ) | 4,377 | 2,909 | ||||||||||||||||||||
Net income, excluding acquisition-related expenses (net of tax) and bargain purchase gain | $ | 28,034 | $ | 22,415 | $ | 9,785 | $ | 8,787 | $ | 9,449 | $ | 60,234 | $ | 35,550 | ||||||||||||||
Net interest income | $ | 46,802 | $ | 44,482 | $ | 40,691 | $ | 39,740 | $ | 39,634 | $ | 131,975 | $ | 108,598 | ||||||||||||||
Noninterest income | 111,745 | 102,476 | 71,708 | 65,409 | 67,468 | 285,929 | 215,828 | |||||||||||||||||||||
Impact of bargain purchase gain | — | — | — | (381 | ) | (796 | ) | — | (7,345 | ) | ||||||||||||||||||
Noninterest income, excluding bargain purchase gain | $ | 111,745 | $ | 102,476 | $ | 71,708 | $ | 65,028 | $ | 66,672 | $ | 285,929 | $ | 208,483 | ||||||||||||||
Noninterest expense | $ | 114,399 | $ | 111,031 | $ | 101,353 | $ | 92,725 | $ | 92,026 | $ | 326,783 | $ | 273,843 | ||||||||||||||
Impact of acquisition-related expenses | (512 | ) | (1,025 | ) | (5,198 | ) | (754 | ) | (437 | ) | (6,735 | ) | (15,810 | ) | ||||||||||||||
Noninterest expense, excluding acquisition-related expenses | $ | 113,887 | $ | 110,006 | $ | 96,155 | $ | 91,971 | $ | 91,589 | $ | 320,048 | $ | 258,033 | ||||||||||||||
Efficiency ratio | 72.15 | % | 75.55 | % | 90.17 | % | 88.18 | % | 85.92 | % | 78.20 | % | 84.41 | % | ||||||||||||||
Impact of acquisition-related expenses and bargain purchase gain | (0.32 | )% | (0.69 | )% | (4.62 | )% | (0.39 | )% | 0.24 | % | (1.62 | )% | (3.03 | )% | ||||||||||||||
Core efficiency ratio, excluding acquisition-related expenses and bargain purchase gain | 71.83 | % | 74.86 | % | 85.55 | % | 87.79 | % | 86.16 | % | 76.58 | % | 81.38 | % | ||||||||||||||
Diluted earnings per common share | $ | 1.11 | $ | 0.87 | $ | 0.27 | $ | 0.39 | $ | 0.45 | $ | 2.27 | $ | 1.58 | ||||||||||||||
Impact of acquisition-related expenses (net of tax) and bargain purchase gain | 0.01 | 0.03 | 0.14 | — | (0.03 | ) | 0.18 | 0.14 | ||||||||||||||||||||
Diluted earnings per common share, excluding acquisition-related expenses (net of tax) and bargain purchase gain | $ | 1.12 | $ | 0.90 | $ | 0.41 | $ | 0.39 | $ | 0.42 | $ | 2.45 | $ | 1.72 | ||||||||||||||
Return on average tangible shareholders' equity | 19.80 | % | 16.76 | % | 5.29 | % | 7.71 | % | 9.06 | % | 14.29 | % | 10.63 | % | ||||||||||||||
Impact of acquisition-related expenses (net of tax) and bargain purchase gain | 0.24 | % | 0.51 | % | 2.79 | % | 0.09 | % | (0.47 | )% | 1.12 | % | 0.94 | % | ||||||||||||||
Return on average tangible shareholders' equity, excluding acquisition-related expenses (net of tax) and bargain purchase gain | 20.04 | % | 17.27 | % | 8.08 | % | 7.80 | % | 8.59 | % | 15.41 | % | 11.57 | % |
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||
(in thousands) | Sept. 30, 2016 | June 30, 2016 | Mar. 30, 2016 | Dec. 31, 2015 | Sept. 30, 2015 | Sept. 30, 2016 | Sept. 30, 2015 | |||||||||||||||||||||
Commercial and Consumer Banking Segment results: | ||||||||||||||||||||||||||||
Net income | $ | 10,132 | $ | 7,079 | $ | 1,542 | $ | 8,377 | $ | 6,800 | $ | 18,753 | $ | 9,640 | ||||||||||||||
Impact of acquisition-related expenses (net of tax) and bargain purchase gain | 333 | 666 | 3,378 | 109 | (512 | ) | 4,377 | 2,909 | ||||||||||||||||||||
Net income, excluding acquisition-related expenses (net of tax) and bargain purchase gain | $ | 10,465 | $ | 7,745 | $ | 4,920 | $ | 8,486 | $ | 6,288 | $ | 23,130 | $ | 12,549 | ||||||||||||||
Net interest income | $ | 39,339 | $ | 38,393 | $ | 35,646 | $ | 32,759 | $ | 31,509 | $ | 113,378 | $ | 87,261 | ||||||||||||||
Noninterest income | $ | 9,771 | $ | 8,181 | $ | 4,643 | $ | 8,778 | $ | 6,884 | $ | 22,595 | $ | 20,589 | ||||||||||||||
Impact of bargain purchase gain | — | — | — | (381 | ) | (796 | ) | — | $ | (7,345 | ) | |||||||||||||||||
Noninterest income, excluding bargain purchase gain | $ | 9,771 | $ | 8,181 | $ | 4,643 | $ | 8,397 | $ | 6,088 | $ | 22,595 | $ | 13,244 | ||||||||||||||
Noninterest expense | $ | 32,171 | $ | 34,103 | $ | 36,630 | $ | 29,542 | $ | 28,110 | $ | 102,904 | $ | 93,056 | ||||||||||||||
Impact of acquisition-related expenses | (512 | ) | (1,025 | ) | (5,198 | ) | (754 | ) | (437 | ) | (6,735 | ) | (15,810 | ) | ||||||||||||||
Noninterest expense, excluding acquisition-related expenses | $ | 31,659 | $ | 33,078 | $ | 31,432 | $ | 28,788 | $ | 27,673 | $ | 96,169 | $ | 77,246 | ||||||||||||||
Efficiency ratio | 65.51 | % | 73.22 | % | 90.92 | % | 71.12 | % | 73.22 | % | 75.68 | % | 86.28 | % | ||||||||||||||
Impact of acquisition-related expenses and bargain purchase gain | (1.04 | )% | (2.20 | )% | (12.90 | )% | (1.17 | )% | 0.38 | % | (4.95 | )% | (9.42 | )% | ||||||||||||||
Core efficiency ratio, excluding acquisition-related expenses and bargain purchase gain | 64.47 | % | 71.02 | % | 78.02 | % | 69.95 | % | 73.60 | % | 70.73 | % | 76.86 | % |
▪ | Record quarterly net income of $27.7 million |
▪ | Total assets of $6.23 billion grew $285.4 million, or 4.8%, from $5.94 billion at June 30, 2016 |
▪ | Completed the purchase of two retail deposit branches and related loans and deposits in Lake Oswego, Oregon |
▪ | Opened three home-loan centers and one retail deposit branch during the quarter |
Contact: | Investor Relations: | |
HomeStreet, Inc. | ||
Gerhard Erdelji (206) 515-4039 | ||
Gerhard.Erdelji@HomeStreet.com | ||
http://ir.homestreet.com |
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