HomeStreet Bank has announced its year end and 2017 4Q results today, reporting a net income of $68.9 million, or $2.54 per diluted share for the year ended Dec. 31, 2017, compared with net income of $58.2 million, or $2.34 per diluted share for the year ended Dec. 31, 2016.
Net income was $34.9 million, or $1.29 per diluted share for the fourth quarter 2017, compared with net income of $13.8 million, or $0.51 per diluted share for the third quarter 2017, and $2.3 million, or $0.09 per diluted share for the fourth quarter 2016.
More highlights of the announcement included a record net income of $42.1 million in Homestreet’s commercial and consumer banking segment; last year’s tax legislation resulting in the recognition of a one-time, non-cash tax benefit of $23.3 million for 2017; the growth of loans held for investment to $4.53 billion; and four new retail deposit branches.
“In 2017, we continued executing on our strategy of building a regional bank with representation in major coastal markets in the Western US, and I’m very proud of the hard work and dedication of our HomeStreet employees in making this progress,” said Mark K. Mason, chairman, president and CEO of Homestreet. “Our commercial and consumer banking segment reported record net income for 2017 driven primarily by an 18 percent increase in loans held for investment, all of which was from organic growth. Increased net gain on the sale of commercial real estate and SBA loans contributed to 19 percent growth in noninterest income during the year, and asset quality continued to be strong with nonperforming assets decreasing to 0.23 percent of total assets, representing our lowest absolute and relative levels of problem assets since 2006.”
“While the results of our Mortgage Banking segment continue to be adversely impacted by the limited supply of new and resale housing in many of our primary markets, as well as the seasonal production slowdown we typically experience at the end of the year, we have begun to see the benefits of the restructuring we implemented during 2017. Direct origination expenses are lower and the successful implementation of our new loan origination system during 2017 will create opportunities for additional operating efficiencies going forward. We will continue to focus on optimizing our mortgage banking capacity within our existing geographic footprint and remain committed to being a leading mortgage originator and servicer in our markets.”