HomeStreet, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2016; Provides Tax Rate Guidance for the Year 2017
January 23, 2017 at 04:28 pm
Share
HomeStreet, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported, net interest income was $48,074,000 against $39,740,000 a year ago. The increase from the fourth quarter of 2015 was primarily due to a result of growth in average interest earning assets. Income before income taxes was $3,406,000 against $10,524,000 a year ago. Net income was $2,294,000 against $8,678,000 a year ago. Basic and diluted income per share was $0.09 against $0.39 a year ago. Return on average shareholders' equity was $1.49% against 7.38% a year ago. Return on average assets was $0.15% against 0.71% a year ago. Core net income was $2.6 million, or $0.10 per diluted share compared with $8.8 million, or $0.39 per diluted share, for the fourth quarter of 2015. The decrease in net income from the prior quarter was primarily due to a $24.8 million decrease in gain on mortgage loan origination and sales and a $14.5 million decrease in mortgage servicing income, partially offset by $1.3 million increase in net interest income.
For the full year, the company reported net interest income was $180,049,000 against $148,338,000 a year ago. Income before income taxes was $90,777,000 against $56,907,000 a year ago. Net income was $58,151,000 against $41,319,000 a year ago. Diluted income per share was $2.34 against $1.96 a year ago. Book value per share was $23.48 against $21.08 a year ago. Return on average shareholders' equity was $10.27% against 9.35% a year ago. Return on average assets was $1.01% against 0.91% a year ago. Core net income was $62.8 million, or $2.53 per diluted share, compared with core net income of $44.3 million, or $2.11 per diluted share, for the year ended December 31, 2015. The increase in net income year-over-year was primarily due to $70.9 million higher gain on mortgage loan origination and sale activities, $31.7 million higher net interest income and $111.5 million higher mortgage servicing income, partially offset by $62.8 million in higher salaries and related expenses. Tangible book value per share was $22.33 against $20.16 per share a year ago.
Net charge-offs in the fourth quarter of 2016 totaled $319,000 against recoveries of $872,000 a year ago.
The company expects tax rate for 2017 around 34.5%, somewhere between 34% and 35%.
HomeStreet, Inc. is a diversified financial services company. The Company is principally engaged in commercial banking, mortgage banking and consumer/retail banking activities serving customers primarily in the Western United States. It operates through its subsidiaries, which include HomeStreet Bank (the Bank), HomeStreet Statutory Trusts and HomeStreet Capital Corporation. The Bank provides commercial banking products and services to small and medium sized businesses, real estate investors and professional firms and consumer banking products and services to individuals. The Bank offers consumer and commercial banking, mortgage lending and loans for residential construction, commercial real estate financing, and insurance products and services on the West Coast and Hawaii. The Companyâs commercial loan portfolio is comprised of the non-owner occupied commercial real estate (CRE), multifamily, construction and land development, owner occupied CRE and commercial business loan classes.
HomeStreet, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2016; Provides Tax Rate Guidance for the Year 2017