- Pre-tax income of $33.1 million increased 55% from the prior quarter driven by an $18.9 million or 42% increase in net gain on mortgage loan origination and sale activities.
- Return on equity of 37.16%, up from 34.87% in the prior quarter, and return on average assets of 3.50%, up from 3.04% in the prior quarter.
- Record single family mortgage production volume: $1.37 billion of closed loan production designated for sale, up 28% from the second quarter, and $1.31 billion of interest rate lock commitments, up 1% from the second quarter.
- HomeStreet maintained its ranking as the number two residential lender by volume of single family mortgages in the five-county Puget Sound area of Washington State (King, Snohomish, Pierce, Kitsap, and Thurston counties), as well as in Spokane County. The Company also became the number one single family mortgage lender in Clark County, Washington, and number three in the greater Portland, Oregon area. (1)
- Net interest margin increased to 3.08%, up from 2.83% in the prior quarter.
- Total loans held for investment rose $33.5 million, or 3% from the prior quarter with contributions from new lending in all of HomeStreet's primary lending lines of business; commercial, commercial real estate, construction and single family mortgage. This increase marks the first net increase in loans held for investment since the second quarter of 2008.
- Nonperforming assets declined to $55.3 million, or 2.20% of total assets, down from $73.7 million, or 3.04% of total assets, in the prior quarter.
- Total transaction and savings deposits rose to $1.03 billion, or 52.0% of total deposits, up from $953.4 million, or 50.0% of total deposits, in the prior quarter.
- Regulatory capital ratios for the Bank increased, with a Tier 1 leverage ratio of 10.8% and a total risk-based capital ratio of 17.9% at September 30, 2012.
HomeStreet, Inc. (NASDAQ:HMST) (the “Company” or “HomeStreet”), the parent company of HomeStreet Bank (the “Bank”), today announced net income of $21.3 million, or $2.90 per diluted share, for the third quarter of 2012, compared to net income of $18.0 million, or $2.43 per diluted share, for the second quarter of 2012. Highlights for the third quarter of 2012 include: