This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

HomeStreet, Inc. Reports Third Quarter 2012 Results

Credit Quality

Nonperforming assets (NPAs) declined to $55.3 million, or 2.20% of total assets, as of September 30, 2012, from $73.7 million, or 3.04% of total assets, at June 30, 2012. This improvement primarily resulted from a net reduction in other real estate owned (OREO) which declined to $17.0 million, from $40.6 million at June 30, 2012, driven primarily by the sale of a construction/land development property that was transferred to OREO in the second quarter and had a carrying value of $15.9 million at June 30, 2012. Nonaccrual loans were $38.2 million, or 2.94% of total loans, up from $33.1 million, or 2.62% of total loans, at June 30, 2012. Loan delinquencies were $95.7 million, or 7.4% of total loans, up from $83.9 million, or 6.6% of total loans, in the prior quarter, primarily reflecting additions of single family and commercial business nonaccrual loans. Excluding single family mortgage loans insured or guaranteed by the FHA or VA, loan delinquencies were $50.7 million, or 3.9% of total loans, up from $41.2 million, or 3.3% of total loans, in the prior quarter.

The allowance for credit losses increased by $502 thousand to $27.6 million, or 2.12% of total loans, compared to $27.1 million, or 2.13% of total loans, at June 30, 2012. A provision for credit losses of $5.5 million was recorded for the third quarter of 2012, compared with $2.0 million recorded in the second quarter of 2012. Net charge-offs in the quarter decreased to $5.0 million, down from $10.3 million in the second quarter of 2012.

Deposits

Deposits were $1.98 billion at September 30, 2012, up $77.1 million, or 4%, from $1.90 billion at June 30, 2012 and down $75.2 million, or 4%, from a year ago. Certificates of deposit decreased $71.0 million, or 9%, from the prior quarter and $409.6 million, or 37%, from a year ago as we manage the reduction of these higher-cost deposits and replace them with lower-cost transaction and savings deposits, which increased $75.4 million, or 8%, from the prior quarter and $295.3 million, or 40%, from a year ago. The improvement in the composition of deposits reflects a focused effort on attracting transaction and savings deposit balances through our branch network and converting customers with maturing certificates of deposit to transaction and savings deposits.

3 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs