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%.