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Business Segments
 3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS:

The Company's business segments are determined based on the products and services provided, as well as the nature of the related business activities and reflect the manner in which financial information is currently evaluated by management. The Company organizes the segments into two lines of business: Commercial and Consumer Banking segment and Mortgage Banking segment.

A description of the Company's business segments and the products and services that they provide is as follows.

Commercial and Consumer Banking provides diversified financial products and services to our commercial and consumer customers through bank branches, ATMs, and online, mobile and telephone banking. These products and services include deposit products; residential, consumer, business and agricultural portfolio loans; non-deposit investment products; insurance products, and cash management services. We originate construction loans, bridge loans and permanent loans for our portfolio primarily on single family residences, and on office, retail, industrial and multifamily properties. We originate multifamily real estate loans through our Fannie Mae DUS® business, and after origination those loans are sold to or securitized by Fannie Mae, while the Company generally retains the servicing rights. In addition, through the HomeStreet Commercial Capital division of HomeStreet Bank we originate permanent commercial real estate loans primarily up to $10 million in size, a portion of which we intend to pool and sell into the secondary market. As a part of the HomeStreet Commercial Capital division, we also have a team that specializes in U.S. Small Business Administration ("SBA") lending. This segment also reflects the results for the management of the Company's portfolio of investment securities.

Mortgage Banking originates single family residential mortgage loans for sale in the secondary markets and performs mortgage servicing on a substantial portion of such loans. The majority of our mortgage loans are sold to or securitized by Fannie Mae, Freddie Mac or Ginnie Mae, while we retain the right to service these loans. We have become a rated originator and servicer of jumbo loans, allowing us to sell these loans to other securitizers. Additionally, we purchase loans from WMS Series LLC through a correspondent arrangement with that company. We also sell loans on a servicing-released and servicing-retained basis to securitizers and correspondent lenders. A small percentage of our loans are brokered to other lenders. On occasion, we may sell a portion of our MSR portfolio. We manage the loan funding and the interest rate risk associated with the secondary market loan sales and the retained single family mortgage servicing rights within this business segment.

Financial highlights by operating segment were as follows.

 
Three Months Ended March 31, 2018
(in thousands)
Mortgage
Banking
 
Commercial and
Consumer Banking
 
Total
 
 
 
 
 
 
Condensed income statement:
 
 
 
 
 
Net interest income (1)
$
3,012

 
$
45,448

 
$
48,460

Provision for credit losses
—

 
750

 
750

Noninterest income
53,735

 
7,096

 
60,831

Noninterest expense
62,497

 
38,272

 
100,769

(Loss) income before income taxes
(5,750
)
 
13,522

 
7,772

Income tax (benefit) expense
(1,410
)
 
3,316

 
1,906

Net (loss) income
$
(4,340
)
 
$
10,206

 
$
5,866

Total assets
$
783,244

 
$
6,140,812

 
$
6,924,056


 
Three Months Ended March 31, 2017
(in thousands)
Mortgage
Banking
 
Commercial and
Consumer Banking
 
Total
 
 
 
 
 
 
Condensed income statement:
 
 
 
 
 
Net interest income (1)
$
4,747

 
$
40,904

 
$
45,651

Noninterest income
65,036

 
9,425

 
74,461

Noninterest expense
70,404

 
36,470

 
106,874

Loss (income) before income taxes
(621
)
 
13,859

 
13,238

Income tax (benefit) expense
(312
)
 
4,567

 
4,255

Net (loss) income
$
(309
)
 
$
9,292

 
$
8,983

Total assets
$
817,972

 
$
5,583,171

 
$
6,401,143

(1)
Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.