Q4 Net Income of $5.6 Million, or $0.38 per
Diluted Share
2014 Net Income of $22.3 Million, or $1.49 per
Diluted Share
HomeStreet, Inc. (NASDAQ:HMST) (the “Company” or “HomeStreet”),
the parent company of HomeStreet Bank (the “Bank”), today announced
net income of $5.6 million, or $0.38 per diluted share, for the
fourth quarter of 2014, compared to net income of $5.0 million, or
$0.33 per share, for the third quarter of 2014 and a net loss of
$861 thousand, or $(0.06) per share, for the fourth quarter of
2013. Excluding acquisition-related expenses of $889 thousand, net
income for the quarter was $6.2 million,(1) or $0.41(1) per share,
compared to net income of $5.4 million,(1) or $0.36(1) per share,
for the third quarter of 2014 and $1.8 million,(1) or $0.12(1) per
share, for the fourth quarter of 2013. For the full year 2014, net
income was $22.3 million, or $1.49 per share. Excluding
acquisition-related expenses, net income for 2014 was $24.2
million,(1) or $1.62(1) per share, compared to $26.8 million,(1) or
$1.81(1) per share for 2013.
“During the past year, we made substantial progress on our
strategy to grow and diversify earnings. We expanded our commercial
and consumer banking business and built mortgage banking market
share in new and existing markets,” said HomeStreet President and
CEO Mark K. Mason. “We opened three de novo retail deposit branches
and grew our transaction and savings deposits by 12% in the
12-month period. Loan portfolio growth was strong throughout the
year, with total loans held for investment increasing 12% over the
prior year despite our sale of $266.8 million in single family
loans in the first and second quarters of 2014. Net interest income
also improved as a result of a higher net interest margin and
strong growth of nearly 20% in average interest-earning assets, and
noninterest income grew nearly 43% over the last year. Over the
course of the year we also expanded our home loan center network by
11 offices and mortgage production personnel grew by 18%. As a
result, and despite a 39% decrease in industry loan volume, our
single family closed loan volume designated for sale was
approximately the same as in 2013.
“We have made substantial progress toward our planned
acquisition of Simplicity Bancorp. We have received all required
regulatory approvals and the shareholder meetings of HomeStreet and
Simplicity are scheduled for January 29, 2015 and February 11,
2015, respectively. Additionally, we anticipate that the California
Department of Business Oversight will convene a fairness hearing on
February 10, 2015 relating to our request for a permit to register
our stock to be exchanged in this transaction. We are excited about
the potential this acquisition offers us for building a strong
consumer and commercial banking franchise in Southern California to
complement our growing mortgage banking business in the
region.”
(1) The summary press release contains certain non-GAAP
financial disclosures for consolidated net income excluding
acquisition-related expenses and diluted earnings per share
excluding acquisition-related expenses. The Company uses certain
non-GAAP financial measures to provide meaningful supplemental
information regarding the Company's operational performance and to
enhance investors' overall understanding of such financial
performance. For corresponding reconciliations to GAAP financial
measures, see Non-GAAP Financial Measures beginning on page 29 of
the earnings release as filed with the SEC on Form 8-K.
Conference Call
HomeStreet, Inc. will conduct a quarterly earnings conference
call on Tuesday, January 27, 2015 at 1:00 p.m. ET. The Company will
discuss fourth quarter 2014 results and provide an update on recent
activities. A question and answer session will follow the
presentation. Shareholders, analysts and other interested parties
may register in advance at http://dpregister.com/10056110 or may join the
call by dialing 1-877-508-9589 (1-855-669-9657 in Canada) shortly
before 1:00 p.m. ET. A rebroadcast will be available approximately
one hour after the conference call by dialing 1-877-344-7529 and
entering passcode 10056110.
Forward-Looking Statements
This press release contains forward-looking statements
concerning HomeStreet, Inc. and HomeStreet Bank and their
operations, performance, financial conditions and likelihood of
success. All statements other than statements of historical fact
are forward-looking statements. Forward-looking statements are
based on many beliefs, assumptions, estimates and expectations of
our future performance, taking into account information currently
available to us, and include statements about the competitiveness
of the banking industry. When used in this press release, the words
“anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,”
“may,” “plan,” “potential,” “should,” “will” and “would” and
similar expressions (including the negative of these terms) may
help identify forward-looking statements. Such statements involve
inherent risks and uncertainties, many of which are difficult to
predict and are generally beyond the control of the Company.
Forward-looking statements speak only as of the date made, and we
do not undertake to update them to reflect changes or events that
occur after that date.
We caution readers that a number of factors could cause actual
results to differ materially from those expressed in, implied or
projected by, such forward-looking statements. Among other things,
our ability to expand our banking operations geographically and
across market sectors, grow our franchise and capitalize on market
opportunities, meet the growth targets that management has set for
the Company, maintain our position in the industry and generate
positive net income and cash flow, may be limited due to future
risks and uncertainties including, but not limited to, changes in
general economic conditions that impact our markets and our
business, actions by the Federal Reserve affecting monetary and
fiscal policy, regulatory and legislative actions that may increase
capital requirements or otherwise constrain our ability to do
business, our ability to maintain electronic and physical security
of our customer data, our ability to attract and retain key
personnel, our ability to make accurate estimates of the value of
our non-cash assets and liabilities, significant increases in the
competition we face in our industry and market and the extent of
our success in problem asset resolution efforts. Closing of the
acquisition discussed in this press release will be contingent on
meeting certain conditions, including the receipt of regulatory
approvals and certain shareholder approvals from the shareholders
of each entity. Such transaction may be delayed in closing, may
require significant management attention, and may fall short of
anticipated size and value. We may not immediately realize the
benefits expected from our anticipated acquisition or our recently
completed bank and branch acquisitions, and integration of acquired
operations may take longer or prove more expensive than
anticipated. In addition, we may not recognize all or a substantial
portion of the value of our rate-lock loan activity due to
challenges our customers may face in meeting current underwriting
standards, a decrease in interest rates, an increase in competition
for such loans, unfavorable changes in general economic conditions,
including housing prices, the job market, consumer confidence and
spending habits either nationally or in the regional and local
market areas in which the Company does business and legislative or
regulatory actions or reform (including, without limitation, the
Dodd-Frank Wall Street Reform and Consumer Protection Act). A
discussion of the factors that we recognize to pose risk to the
achievement of our business goals and our operational and financial
objectives is contained in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2013 and Quarterly Report on
Form 10-Q for the fiscal quarter ended September 30, 2014.
These factors are updated from time to time in our filings with the
Securities and Exchange Commission, and readers of this release are
cautioned to review those disclosures in conjunction with the
discussions herein.
Information contained herein, other than information at
December 31, 2013 and for the twelve months then ended, is
unaudited. All financial data should be read in conjunction with
the notes to the consolidated financial statements of HomeStreet,
Inc., and subsidiaries as of and for the fiscal year ended
December 31, 2013, as contained in the Company's Annual Report
on Form 10-K for such fiscal year.
Additional Information About the Merger and Where to Find
it
The merger of Simplicity Bancorp, Inc. (“Simplicity”) with and
into HomeStreet (the “merger”) will require the approval of
Simplicity’s stockholders, and the issuance of shares comprising
the merger consideration will require the approval of HomeStreet’s
shareholders. This earnings release is not a recommendation in
favor of a vote on the transaction or on the issuance of shares in
the transaction, nor is it a solicitation of proxies in connection
with any such vote. HomeStreet and Simplicity filed a joint
proxy statement and other relevant documents with the SEC on
January 6, 2015 in connection with the merger. The parties have
also applied for registration of the HomeStreet shares to be issued
in the transaction following a fairness hearing to be convened by
the Commissioner of the California Department of Business
Oversight. Details about the fairness hearing, including a formal
notice of the hearing, will be published and made available to
Simplicity stockholders in accordance with Section 25142 of the
California Corporations Code.
SHAREHOLDERS OF SIMPLICITY AND HOMESTREET ARE ADVISED TO READ
THE JOINT PROXY STATEMENT, AS WELL AS THE FAIRNESS HEARING NOTICE
WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC AND THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT,
IN ADDITION TO ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
The joint proxy statement, fairness hearing notice (when it
becomes available), and other relevant materials, and any other
documents filed with or furnished to the SEC by HomeStreet or
Simplicity, may be obtained free of charge at the SEC’s website at
www.sec.gov. In addition, investors and security holders may obtain
free copies of these documents by contacting the Corporate
Secretary of HomeStreet at 800-654-1075 or the Corporate Secretary
of Simplicity at 800-524-2274. HomeStreet and Simplicity and
certain of their respective directors and executive officers may be
deemed to be participants in the solicitation of proxies from
Simplicity and HomeStreet shareholders in connection with the
proposed merger. Information concerning such participants’
ownership of Simplicity and HomeStreet common shares is set forth
in the joint proxy statement. This communication does not
constitute an offer to sell, or a solicitation of an offer to buy,
any securities.
For details and the complete earnings release, please refer to
the Company’s investor relations website at
http://ir.homestreet.com as well as the Form 8-K filing at
www.sec.gov.
Investor Relations & Media:HomeStreet, Inc.Terri Silver,
206-389-6303terri.silver@homestreet.comhttp://ir.homestreet.com
HomeStreet (NASDAQ:HMST)
Historical Stock Chart
From Mar 2024 to Apr 2024
HomeStreet (NASDAQ:HMST)
Historical Stock Chart
From Apr 2023 to Apr 2024