HomeStreet Inc (HMST) Reports Q3 2023 Earnings: Net Income at $2.3 Million
HomeStreet Inc (NASDAQ:HMST) reported a net income of $2.3 million in Q3 2023, a significant recovery from a net loss of $31.4 million in Q2 2023.
Return on Average Equity (ROAE) and Return on Average Assets (ROAA) improved to 1.7% and 0.10% respectively, from negative figures in the previous quarter.
The company's net interest margin decreased to 1.74% from 1.93% in Q2 2023.
Uninsured deposits stood at $535 million, or 8% of total deposits, as of the end of Q3 2023.
On October 30, 2023, HomeStreet Inc (NASDAQ:HMST) announced its financial results for the quarter ended September 30, 2023. The company reported a net income of $2.3 million, a significant improvement from a net loss of $31.4 million in the previous quarter. Earnings per fully diluted share stood at $0.12, compared to a loss of $1.67 in Q2 2023.
Financial Performance
The company's Return on Average Equity (ROAE) and Return on Average Assets (ROAA) improved to 1.7% and 0.10% respectively, from negative figures in the previous quarter. However, the net interest margin decreased to 1.74% from 1.93% in Q2 2023. The efficiency ratio also increased to 98.3% from 93.7% in the previous quarter.
Financial Position
As of the end of Q3 2023, uninsured deposits stood at $535 million, or 8% of total deposits. Excluding brokered deposits, total deposits decreased by $137 million. Loans held for investment remained stable, while nonperforming assets to total assets stood at 0.42%. The allowance for credit losses to Loans held for investment was 0.55%. The book value per share was $26.74, and the tangible book value per share was $26.18.
Management Commentary
Mark K. Mason, HomeStreets Chairman of the Board, President, and Chief Executive Officer, commented on the results, stating,
Our operating results for the quarter reflect the continuing adverse impact of the historically record velocity and magnitude of increases in short-term interest rates. The high interest rate environment has significantly negatively impacted our net interest margin as well as loan volume in our residential and commercial mortgage banking businesses whose activity continues at historically low levels."
Dividend and Conference Call
HomeStreet declared and paid a cash dividend of $0.10 per share in the third quarter. The company will conduct a quarterly earnings conference call on Tuesday, October 31, 2023, at 1:00 p.m. ET.
Explore the complete 8-K earnings release (here) from HomeStreet Inc for further details.
This article first appeared on GuruFocus.
