Washington
|
|
91-0186600
|
(State or other jurisdiction of incorporation)
|
|
(IRS Employer Identification No.)
|
|
|
|
|
ITEM 3
|
||
ITEM 4
|
||
|
||
ITEM 1
|
||
ITEM 1A
|
||
ITEM 2
|
||
ITEM 3
|
||
ITEM 4
|
||
ITEM 5
|
||
ITEM 6
|
||
ITEM 1 FINANCIAL STATEMENTS
|
(in thousands, except share data)
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
|
|
|
|
|
||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents (including interest-earning instruments of $126,083 and $30,268)
|
|
$
|
176,218
|
|
|
$
|
72,718
|
|
Investment securities (includes $829,422 and $846,268 carried at fair value)
|
|
907,457
|
|
|
904,304
|
|
||
Loans held for sale (includes $527,088 and $577,313 carried at fair value)
|
|
568,514
|
|
|
610,902
|
|
||
Loans held for investment (net of allowance for loan losses of $39,480 and $37,847; includes $4,187 and $5,477 carried at fair value)
|
|
4,883,310
|
|
|
4,506,466
|
|
||
Mortgage servicing rights (includes $245,744 and $258,560 carried at fair value)
|
|
272,205
|
|
|
284,653
|
|
||
Other real estate owned
|
|
752
|
|
|
664
|
|
||
Federal Home Loan Bank stock, at cost
|
|
48,157
|
|
|
46,639
|
|
||
Premises and equipment, net
|
|
99,155
|
|
|
104,654
|
|
||
Goodwill
|
|
22,564
|
|
|
22,564
|
|
||
Other assets
|
|
185,545
|
|
|
188,477
|
|
||
Total assets
|
|
$
|
7,163,877
|
|
|
$
|
6,742,041
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Deposits
|
|
$
|
5,120,285
|
|
|
$
|
4,760,952
|
|
Federal Home Loan Bank advances
|
|
1,008,613
|
|
|
979,201
|
|
||
Accounts payable and other liabilities
|
|
173,145
|
|
|
172,234
|
|
||
Other borrowings
|
|
30,007
|
|
|
—
|
|
||
Long-term debt
|
|
125,368
|
|
|
125,274
|
|
||
Total liabilities
|
|
6,457,418
|
|
|
6,037,661
|
|
||
Commitments and contingencies (Note 7)
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
||||
Preferred stock, no par value, authorized 10,000 shares, issued and outstanding, 0 shares and 0 shares
|
|
—
|
|
|
—
|
|
||
Common stock, no par value, authorized 160,000,000 shares, issued and outstanding, 26,978,229 shares and 26,888,288 shares
|
|
511
|
|
|
511
|
|
||
Additional paid-in capital
|
|
340,723
|
|
|
339,009
|
|
||
Retained earnings
|
|
384,947
|
|
|
371,982
|
|
||
Accumulated other comprehensive loss
|
|
(19,722
|
)
|
|
(7,122
|
)
|
||
Total shareholders' equity
|
|
706,459
|
|
|
704,380
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
7,163,877
|
|
|
$
|
6,742,041
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands, except share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
61,409
|
|
|
$
|
51,198
|
|
|
$
|
117,345
|
|
|
$
|
100,704
|
|
Investment securities
|
5,527
|
|
|
5,419
|
|
|
11,086
|
|
|
11,051
|
|
||||
Other
|
253
|
|
|
125
|
|
|
432
|
|
|
261
|
|
||||
|
67,189
|
|
|
56,742
|
|
|
128,863
|
|
|
112,016
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
9,562
|
|
|
5,867
|
|
|
17,350
|
|
|
11,490
|
|
||||
Federal Home Loan Bank advances
|
4,782
|
|
|
2,368
|
|
|
8,418
|
|
|
4,769
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
24
|
|
|
5
|
|
|
56
|
|
|
5
|
|
||||
Long-term debt
|
1,662
|
|
|
1,514
|
|
|
3,246
|
|
|
2,993
|
|
||||
Other
|
156
|
|
|
120
|
|
|
330
|
|
|
240
|
|
||||
|
16,186
|
|
|
9,874
|
|
|
29,400
|
|
|
19,497
|
|
||||
Net interest income
|
51,003
|
|
|
46,868
|
|
|
99,463
|
|
|
92,519
|
|
||||
Provision for credit losses
|
1,000
|
|
|
500
|
|
|
1,750
|
|
|
500
|
|
||||
Net interest income after provision for credit losses
|
50,003
|
|
|
46,368
|
|
|
97,713
|
|
|
92,019
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Net gain on loan origination and sale activities
|
57,049
|
|
|
65,908
|
|
|
105,368
|
|
|
126,189
|
|
||||
Loan servicing income
|
7,032
|
|
|
8,764
|
|
|
14,606
|
|
|
18,003
|
|
||||
Income from WMS Series LLC
|
322
|
|
|
406
|
|
|
311
|
|
|
591
|
|
||||
Depositor and other retail banking fees
|
1,953
|
|
|
1,811
|
|
|
3,898
|
|
|
3,467
|
|
||||
Insurance agency commissions
|
527
|
|
|
501
|
|
|
1,070
|
|
|
897
|
|
||||
Gain on sale of investment securities available for sale
|
16
|
|
|
551
|
|
|
238
|
|
|
557
|
|
||||
Other
|
2,490
|
|
|
3,067
|
|
|
4,729
|
|
|
5,765
|
|
||||
|
69,389
|
|
|
81,008
|
|
|
130,220
|
|
|
155,469
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and related costs
|
69,127
|
|
|
76,390
|
|
|
135,818
|
|
|
147,698
|
|
||||
General and administrative
|
14,707
|
|
|
15,872
|
|
|
29,291
|
|
|
33,000
|
|
||||
Amortization of core deposit intangibles
|
407
|
|
|
493
|
|
|
813
|
|
|
1,007
|
|
||||
Legal
|
839
|
|
|
150
|
|
|
1,569
|
|
|
310
|
|
||||
Consulting
|
758
|
|
|
771
|
|
|
1,635
|
|
|
1,829
|
|
||||
Federal Deposit Insurance Corporation assessments
|
1,079
|
|
|
697
|
|
|
2,008
|
|
|
1,521
|
|
||||
Occupancy
|
14,953
|
|
|
8,880
|
|
|
23,133
|
|
|
17,089
|
|
||||
Information services
|
8,693
|
|
|
8,172
|
|
|
17,158
|
|
|
15,820
|
|
||||
Net cost (benefit) from operation and sale of other real estate owned
|
2
|
|
|
(181
|
)
|
|
(91
|
)
|
|
(156
|
)
|
||||
|
110,565
|
|
|
111,244
|
|
|
211,334
|
|
|
218,118
|
|
||||
Income before income taxes
|
8,827
|
|
|
16,132
|
|
|
16,599
|
|
|
29,370
|
|
||||
Income tax expense
|
1,728
|
|
|
4,923
|
|
|
3,634
|
|
|
9,178
|
|
||||
NET INCOME
|
$
|
7,099
|
|
|
$
|
11,209
|
|
|
$
|
12,965
|
|
|
$
|
20,192
|
|
|
|
|
|
|
|
|
|
||||||||
Basic income per share
|
$
|
0.26
|
|
|
$
|
0.42
|
|
|
$
|
0.48
|
|
|
$
|
0.75
|
|
Diluted income per share
|
$
|
0.26
|
|
|
$
|
0.41
|
|
|
$
|
0.48
|
|
|
$
|
0.75
|
|
Basic weighted average number of shares outstanding
|
26,976,892
|
|
|
26,866,230
|
|
|
26,952,178
|
|
|
26,843,813
|
|
||||
Diluted weighted average number of shares outstanding
|
27,156,329
|
|
|
27,084,608
|
|
|
27,157,664
|
|
|
27,071,028
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
7,099
|
|
|
$
|
11,209
|
|
|
$
|
12,965
|
|
|
$
|
20,192
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on investment securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding (loss) gain arising during the period, net of tax (benefit) expense of ($642) and $1,848 for the three months ended June 30, 2018 and 2017, and ($3,300) and $2,887 for the six months ended June 30, 2018 and 2017, respectively
|
(2,412
|
)
|
|
3,431
|
|
|
(12,412
|
)
|
|
5,361
|
|
||||
Reclassification adjustment for net gains included in net income, net of tax expense of $4 and $193 for the three months ended June 30, 2018 and 2017, and $50 and $195 for the six months ended June 30, 2018 and 2017, respectively
|
(12
|
)
|
|
(358
|
)
|
|
(188
|
)
|
|
(362
|
)
|
||||
Other comprehensive (loss) income
|
(2,424
|
)
|
|
3,073
|
|
|
(12,600
|
)
|
|
4,999
|
|
||||
Comprehensive income
|
$
|
4,675
|
|
|
$
|
14,282
|
|
|
$
|
365
|
|
|
$
|
25,191
|
|
(in thousands, except share data)
|
Number
of shares
|
|
Common
stock
|
|
Additional
paid-in
capital
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Total
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, January 1, 2017
|
26,800,183
|
|
|
$
|
511
|
|
|
$
|
336,149
|
|
|
$
|
303,036
|
|
|
$
|
(10,412
|
)
|
|
$
|
629,284
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
20,192
|
|
|
—
|
|
|
20,192
|
|
|||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
1,211
|
|
|
—
|
|
|
—
|
|
|
1,211
|
|
|||||
Common stock issued
|
74,688
|
|
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,999
|
|
|
4,999
|
|
|||||
Balance, June 30, 2017
|
26,874,871
|
|
|
$
|
511
|
|
|
$
|
337,515
|
|
|
$
|
323,228
|
|
|
$
|
(5,413
|
)
|
|
$
|
655,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, January 1, 2018
|
26,888,288
|
|
|
$
|
511
|
|
|
$
|
339,009
|
|
|
$
|
371,982
|
|
|
$
|
(7,122
|
)
|
|
$
|
704,380
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
12,965
|
|
|
—
|
|
|
12,965
|
|
|||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
1,460
|
|
|
—
|
|
|
—
|
|
|
1,460
|
|
|||||
Common stock issued
|
89,941
|
|
|
—
|
|
|
254
|
|
|
—
|
|
|
—
|
|
|
254
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,600
|
)
|
|
(12,600
|
)
|
|||||
Balance, June 30, 2018
|
26,978,229
|
|
|
$
|
511
|
|
|
$
|
340,723
|
|
|
$
|
384,947
|
|
|
$
|
(19,722
|
)
|
|
$
|
706,459
|
|
|
Six Months Ended June 30,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
12,965
|
|
|
$
|
20,192
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion
|
12,104
|
|
|
10,911
|
|
||
Provision for credit losses
|
1,750
|
|
|
500
|
|
||
Net fair value adjustment and gain on sale of loans held for sale
|
(44,297
|
)
|
|
(113,742
|
)
|
||
Fair value adjustment of loans held for investment
|
31
|
|
|
(1,203
|
)
|
||
Origination of mortgage servicing rights
|
(33,369
|
)
|
|
(35,211
|
)
|
||
Change in fair value of mortgage servicing rights
|
(24,878
|
)
|
|
21,722
|
|
||
Net gain on sale of investment securities
|
(238
|
)
|
|
(557
|
)
|
||
Net loss (gain) on sale of loans originated as held for investment
|
628
|
|
|
(297
|
)
|
||
Net fair value adjustment, gain on sale and provision for losses on other real estate owned
|
(92
|
)
|
|
(356
|
)
|
||
Loss on disposal of fixed assets
|
302
|
|
|
106
|
|
||
Loss on lease abandonment
|
5,802
|
|
|
502
|
|
||
Net deferred income tax (benefit) expense
|
(46
|
)
|
|
7,510
|
|
||
Share-based compensation expense
|
1,702
|
|
|
1,362
|
|
||
Origination of loans held for sale
|
(3,248,078
|
)
|
|
(3,665,396
|
)
|
||
Proceeds from sale of loans originated as held for sale
|
3,345,695
|
|
|
3,769,126
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Decrease (increase) in accounts receivable and other assets
|
3,437
|
|
|
(7,198
|
)
|
||
Increase (decrease) in accounts payable and other liabilities
|
2,347
|
|
|
(17,371
|
)
|
||
Net cash provided by (used in) operating activities
|
35,765
|
|
|
(9,400
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchase of investment securities
|
(97,842
|
)
|
|
(246,435
|
)
|
||
Proceeds from sale of investment securities
|
22,232
|
|
|
314,633
|
|
||
Principal repayments and maturities of investment securities
|
52,857
|
|
|
50,043
|
|
||
Proceeds from sale of other real estate owned
|
459
|
|
|
2,170
|
|
||
Proceeds from sale of loans originated as held for investment
|
230,527
|
|
|
23,780
|
|
||
Proceeds from sale of mortgage servicing rights
|
65,263
|
|
|
—
|
|
||
Mortgage servicing rights purchased from others
|
—
|
|
|
(565
|
)
|
||
Capital expenditures related to other real estate owned
|
—
|
|
|
(57
|
)
|
||
Origination of loans held for investment and principal repayments, net
|
(617,670
|
)
|
|
(420,530
|
)
|
||
Purchase of property and equipment
|
(5,926
|
)
|
|
(28,789
|
)
|
||
Net cash used in investing activities
|
(350,100
|
)
|
|
(305,750
|
)
|
|
Six Months Ended June 30,
|
||||||
(in thousands)
|
2018
|
|
2017
|
||||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Increase in deposits, net
|
$
|
359,251
|
|
|
$
|
318,132
|
|
Proceeds from Federal Home Loan Bank advances
|
5,637,500
|
|
|
4,497,700
|
|
||
Repayment of Federal Home Loan Bank advances
|
(5,608,000
|
)
|
|
(4,498,700
|
)
|
||
Proceeds from federal funds purchased and securities sold under agreements to repurchase
|
796,000
|
|
|
326,618
|
|
||
Repayment of federal funds purchased and securities sold under agreements to repurchase
|
(796,000
|
)
|
|
(326,618
|
)
|
||
Proceeds from line of credit draws
|
30,000
|
|
|
—
|
|
||
Proceeds from Federal Home Loan Bank stock
|
98,621
|
|
|
91,939
|
|
||
Purchase of Federal Home Loan Bank stock
|
(100,139
|
)
|
|
(93,362
|
)
|
||
Proceeds from stock issuance, net
|
11
|
|
|
11
|
|
||
Payments from equity raise
|
—
|
|
|
(46
|
)
|
||
Net cash provided by financing activities
|
417,244
|
|
|
315,674
|
|
||
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
102,909
|
|
|
524
|
|
||
Cash, cash equivalents and restricted cash, beginning of year
|
73,909
|
|
|
56,364
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
176,818
|
|
|
56,888
|
|
||
Less restricted cash included in other assets
|
(600
|
)
|
|
(2,441
|
)
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
176,218
|
|
|
$
|
54,447
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest paid
|
$
|
28,825
|
|
|
$
|
19,757
|
|
Federal and state income taxes refunded, net
|
(112
|
)
|
|
(23,382
|
)
|
||
Non-cash activities:
|
|
|
|
||||
Loans held for investment foreclosed and transferred to other real estate owned
|
455
|
|
|
1,125
|
|
||
Loans transferred from held for investment to held for sale
|
252,567
|
|
|
113,278
|
|
||
Loans transferred from held for sale to held for investment
|
10,480
|
|
|
29,809
|
|
||
Ginnie Mae loans recognized with the right to repurchase (reduction in), net
|
1,992
|
|
|
(2,358
|
)
|
||
Receivable from sale of mortgage servicing rights
|
3,457
|
|
|
—
|
|
|
At June 30, 2018
|
||||||||||||||
(in thousands)
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair
value |
||||||||
|
|
|
|
|
|
|
|
||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
121,537
|
|
|
$
|
2
|
|
|
$
|
(5,691
|
)
|
|
$
|
115,848
|
|
Commercial
|
31,216
|
|
|
—
|
|
|
(862
|
)
|
|
30,354
|
|
||||
Municipal bonds
|
370,688
|
|
|
951
|
|
|
(9,840
|
)
|
|
361,799
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
175,563
|
|
|
6
|
|
|
(7,050
|
)
|
|
168,519
|
|
||||
Commercial
|
113,926
|
|
|
27
|
|
|
(2,330
|
)
|
|
111,623
|
|
||||
Corporate debt securities
|
22,606
|
|
|
2
|
|
|
(1,129
|
)
|
|
21,479
|
|
||||
U.S. Treasury securities
|
10,907
|
|
|
—
|
|
|
(469
|
)
|
|
10,438
|
|
||||
Agency debentures
|
9,868
|
|
|
—
|
|
|
(506
|
)
|
|
9,362
|
|
||||
|
$
|
856,311
|
|
|
$
|
988
|
|
|
$
|
(27,877
|
)
|
|
$
|
829,422
|
|
|
|
|
|
|
|
|
|
||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
11,430
|
|
|
$
|
—
|
|
|
$
|
(301
|
)
|
|
$
|
11,129
|
|
Commercial
|
21,773
|
|
|
—
|
|
|
(649
|
)
|
|
21,124
|
|
||||
Collateralized mortgage obligations
|
17,341
|
|
|
45
|
|
|
(72
|
)
|
|
17,314
|
|
||||
Municipal bonds
|
27,396
|
|
|
169
|
|
|
(445
|
)
|
|
27,120
|
|
||||
Corporate debt securities
|
95
|
|
|
—
|
|
|
—
|
|
|
95
|
|
||||
|
$
|
78,035
|
|
|
$
|
214
|
|
|
$
|
(1,467
|
)
|
|
$
|
76,782
|
|
|
At December 31, 2017
|
||||||||||||||
(in thousands)
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair
value |
||||||||
|
|
|
|
|
|
|
|
||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
133,654
|
|
|
$
|
4
|
|
|
$
|
(3,568
|
)
|
|
$
|
130,090
|
|
Commercial
|
24,024
|
|
|
8
|
|
|
(338
|
)
|
|
23,694
|
|
||||
Municipal bonds
|
389,117
|
|
|
2,978
|
|
|
(3,643
|
)
|
|
388,452
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
164,502
|
|
|
3
|
|
|
(4,081
|
)
|
|
160,424
|
|
||||
Commercial
|
100,001
|
|
|
9
|
|
|
(1,441
|
)
|
|
98,569
|
|
||||
Corporate debt securities
|
25,146
|
|
|
67
|
|
|
(476
|
)
|
|
24,737
|
|
||||
U.S. Treasury securities
|
10,899
|
|
|
—
|
|
|
(247
|
)
|
|
10,652
|
|
||||
Agency debentures
|
9,861
|
|
|
—
|
|
|
(211
|
)
|
|
9,650
|
|
||||
|
$
|
857,204
|
|
|
$
|
3,069
|
|
|
$
|
(14,005
|
)
|
|
$
|
846,268
|
|
|
|
|
|
|
|
|
|
||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
12,062
|
|
|
$
|
35
|
|
|
$
|
(99
|
)
|
|
$
|
11,998
|
|
Commercial
|
21,015
|
|
|
75
|
|
|
(161
|
)
|
|
20,929
|
|
||||
Collateralized mortgage obligations
|
3,439
|
|
|
—
|
|
|
—
|
|
|
3,439
|
|
||||
Municipal bonds
|
21,423
|
|
|
339
|
|
|
(97
|
)
|
|
21,665
|
|
||||
Corporate debt securities
|
97
|
|
|
—
|
|
|
—
|
|
|
97
|
|
||||
|
$
|
58,036
|
|
|
$
|
449
|
|
|
$
|
(357
|
)
|
|
$
|
58,128
|
|
|
At June 30, 2018
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
(in thousands)
|
Gross
unrealized
losses
|
|
Fair
value
|
|
Gross
unrealized
losses
|
|
Fair
value
|
|
Gross
unrealized
losses
|
|
Fair
value
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
(343
|
)
|
|
$
|
13,874
|
|
|
$
|
(5,348
|
)
|
|
$
|
101,421
|
|
|
$
|
(5,691
|
)
|
|
$
|
115,295
|
|
Commercial
|
(509
|
)
|
|
23,846
|
|
|
(353
|
)
|
|
6,508
|
|
|
(862
|
)
|
|
30,354
|
|
||||||
Municipal bonds
|
(4,038
|
)
|
|
176,321
|
|
|
(5,802
|
)
|
|
125,662
|
|
|
(9,840
|
)
|
|
301,983
|
|
||||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
(1,529
|
)
|
|
63,185
|
|
|
(5,521
|
)
|
|
101,000
|
|
|
(7,050
|
)
|
|
164,185
|
|
||||||
Commercial
|
(940
|
)
|
|
43,156
|
|
|
(1,390
|
)
|
|
43,017
|
|
|
(2,330
|
)
|
|
86,173
|
|
||||||
Corporate debt securities
|
(176
|
)
|
|
8,683
|
|
|
(953
|
)
|
|
12,566
|
|
|
(1,129
|
)
|
|
21,249
|
|
||||||
U.S. Treasury securities
|
(2
|
)
|
|
998
|
|
|
(467
|
)
|
|
9,440
|
|
|
(469
|
)
|
|
10,438
|
|
||||||
Agency debentures
|
(506
|
)
|
|
9,363
|
|
|
—
|
|
|
—
|
|
|
(506
|
)
|
|
9,363
|
|
||||||
|
$
|
(8,043
|
)
|
|
$
|
339,426
|
|
|
$
|
(19,834
|
)
|
|
$
|
399,614
|
|
|
$
|
(27,877
|
)
|
|
$
|
739,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
(96
|
)
|
|
$
|
4,686
|
|
|
$
|
(205
|
)
|
|
$
|
4,131
|
|
|
$
|
(301
|
)
|
|
$
|
8,817
|
|
Commercial
|
(649
|
)
|
|
21,124
|
|
|
—
|
|
|
—
|
|
|
(649
|
)
|
|
21,124
|
|
||||||
Collateralized mortgage obligations
|
(72
|
)
|
|
13,850
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
13,850
|
|
||||||
Municipal bonds
|
(171
|
)
|
|
10,506
|
|
|
(274
|
)
|
|
9,168
|
|
|
(445
|
)
|
|
19,674
|
|
||||||
|
$
|
(988
|
)
|
|
$
|
50,166
|
|
|
$
|
(479
|
)
|
|
$
|
13,299
|
|
|
$
|
(1,467
|
)
|
|
$
|
63,465
|
|
|
At December 31, 2017
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
(in thousands)
|
Gross
unrealized losses |
|
Fair
value |
|
Gross
unrealized losses |
|
Fair
value |
|
Gross
unrealized losses |
|
Fair
value |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
(182
|
)
|
|
$
|
18,020
|
|
|
$
|
(3,386
|
)
|
|
$
|
110,878
|
|
|
$
|
(3,568
|
)
|
|
$
|
128,898
|
|
Commercial
|
(113
|
)
|
|
15,265
|
|
|
(225
|
)
|
|
6,748
|
|
|
(338
|
)
|
|
22,013
|
|
||||||
Municipal bonds
|
(760
|
)
|
|
105,415
|
|
|
(2,883
|
)
|
|
134,103
|
|
|
(3,643
|
)
|
|
239,518
|
|
||||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
(612
|
)
|
|
53,721
|
|
|
(3,469
|
)
|
|
104,555
|
|
|
(4,081
|
)
|
|
158,276
|
|
||||||
Commercial
|
(538
|
)
|
|
57,236
|
|
|
(903
|
)
|
|
35,225
|
|
|
(1,441
|
)
|
|
92,461
|
|
||||||
Corporate debt securities
|
(15
|
)
|
|
5,272
|
|
|
(461
|
)
|
|
13,365
|
|
|
(476
|
)
|
|
18,637
|
|
||||||
U.S. Treasury securities
|
(3
|
)
|
|
997
|
|
|
(244
|
)
|
|
9,655
|
|
|
(247
|
)
|
|
10,652
|
|
||||||
Agency debentures
|
(211
|
)
|
|
9,650
|
|
|
$
|
—
|
|
|
—
|
|
|
(211
|
)
|
|
9,650
|
|
|||||
|
$
|
(2,434
|
)
|
|
$
|
265,576
|
|
|
$
|
(11,571
|
)
|
|
$
|
414,529
|
|
|
$
|
(14,005
|
)
|
|
$
|
680,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
(13
|
)
|
|
$
|
2,662
|
|
|
$
|
(86
|
)
|
|
$
|
4,452
|
|
|
$
|
(99
|
)
|
|
$
|
7,114
|
|
Commercial
|
(161
|
)
|
|
15,900
|
|
|
—
|
|
|
—
|
|
|
(161
|
)
|
|
15,900
|
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
3,439
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,439
|
|
||||||
Municipal bonds
|
(3
|
)
|
|
2,185
|
|
|
(94
|
)
|
|
9,465
|
|
|
(97
|
)
|
|
11,650
|
|
||||||
|
$
|
(177
|
)
|
|
$
|
24,186
|
|
|
$
|
(180
|
)
|
|
$
|
13,917
|
|
|
$
|
(357
|
)
|
|
$
|
38,103
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Proceeds
|
$
|
5,357
|
|
|
$
|
312,247
|
|
|
$
|
22,232
|
|
|
$
|
314,633
|
|
Gross gains
|
38
|
|
|
551
|
|
|
261
|
|
|
576
|
|
||||
Gross losses
|
(22
|
)
|
|
—
|
|
|
(23
|
)
|
|
(19
|
)
|
(in thousands)
|
At June 30,
2018 |
|
At December 31,
2017 |
||||
|
|
|
|
||||
Federal Home Loan Bank to secure borrowings
|
$
|
85,339
|
|
|
$
|
425,866
|
|
Washington and California State to secure public deposits
|
134,420
|
|
|
118,828
|
|
||
Securities pledged to secure derivatives in a liability position
|
10,615
|
|
|
7,308
|
|
||
Other securities pledged
|
5,403
|
|
|
6,089
|
|
||
Total securities pledged as collateral
|
$
|
235,777
|
|
|
$
|
558,091
|
|
(in thousands)
|
At June 30,
2018 |
|
At December 31,
2017 |
||||
|
|
|
|
||||
Consumer loans
|
|
|
|
||||
Single family(1)
|
$
|
1,416,072
|
|
|
$
|
1,381,366
|
|
Home equity and other
|
513,016
|
|
|
453,489
|
|
||
Total consumer loans
|
1,929,088
|
|
|
1,834,855
|
|
||
Commercial real estate loans
|
|
|
|
||||
Non-owner occupied commercial real estate
|
640,984
|
|
|
622,782
|
|
||
Multifamily
|
836,260
|
|
|
728,037
|
|
||
Construction/land development
|
778,094
|
|
|
687,631
|
|
||
Total commercial real estate loans
|
2,255,338
|
|
|
2,038,450
|
|
||
Commercial and industrial loans
|
|
|
|
||||
Owner occupied commercial real estate
|
400,149
|
|
|
391,613
|
|
||
Commercial business
|
319,038
|
|
|
264,709
|
|
||
Total commercial and industrial loans
|
719,187
|
|
|
656,322
|
|
||
Loans held for investment before deferred fees, costs and allowance
|
4,903,613
|
|
|
4,529,627
|
|
||
Net deferred loan fees and costs
|
19,177
|
|
|
14,686
|
|
||
|
4,922,790
|
|
|
4,544,313
|
|
||
Allowance for loan losses
|
(39,480
|
)
|
|
(37,847
|
)
|
||
Total loans held for investment
|
$
|
4,883,310
|
|
|
$
|
4,506,466
|
|
(1)
|
Includes $4.2 million and $5.5 million at June 30, 2018 and December 31, 2017, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Allowance for credit losses (roll-forward):
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
40,446
|
|
|
$
|
36,042
|
|
|
$
|
39,116
|
|
|
$
|
35,264
|
|
Provision for credit losses
|
1,000
|
|
|
500
|
|
|
1,750
|
|
|
500
|
|
||||
(Charge-offs) recoveries, net
|
(464
|
)
|
|
928
|
|
|
116
|
|
|
1,706
|
|
||||
Ending balance
|
$
|
40,982
|
|
|
$
|
37,470
|
|
|
$
|
40,982
|
|
|
$
|
37,470
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Beginning
balance |
|
Charge-offs
|
|
Recoveries
|
|
(Reversal of) Provision
|
|
Ending
balance |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
9,208
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
(616
|
)
|
|
$
|
8,594
|
|
Home equity and other
|
6,987
|
|
|
(145
|
)
|
|
147
|
|
|
357
|
|
|
7,346
|
|
|||||
Total consumer loans
|
16,195
|
|
|
(145
|
)
|
|
149
|
|
|
(259
|
)
|
|
15,940
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
4,627
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|
4,764
|
|
|||||
Multifamily
|
4,651
|
|
|
—
|
|
|
—
|
|
|
366
|
|
|
5,017
|
|
|||||
Construction/land development
|
9,159
|
|
|
—
|
|
|
172
|
|
|
(126
|
)
|
|
9,205
|
|
|||||
Total commercial real estate loans
|
18,437
|
|
|
—
|
|
|
172
|
|
|
377
|
|
|
18,986
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied commercial real estate
|
2,966
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
3,032
|
|
|||||
Commercial business
|
2,848
|
|
|
(652
|
)
|
|
12
|
|
|
816
|
|
|
3,024
|
|
|||||
Total commercial and industrial loans
|
5,814
|
|
|
(652
|
)
|
|
12
|
|
|
882
|
|
|
6,056
|
|
|||||
Total allowance for credit losses
|
$
|
40,446
|
|
|
$
|
(797
|
)
|
|
$
|
333
|
|
|
$
|
1,000
|
|
|
$
|
40,982
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
(in thousands)
|
Beginning
balance |
|
Charge-offs
|
|
Recoveries
|
|
(Reversal of) Provision
|
|
Ending
balance |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
7,954
|
|
|
$
|
(2
|
)
|
|
$
|
683
|
|
|
$
|
(347
|
)
|
|
$
|
8,288
|
|
Home equity and other
|
6,546
|
|
|
(186
|
)
|
|
67
|
|
|
429
|
|
|
6,856
|
|
|||||
Total consumer loans
|
14,500
|
|
|
(188
|
)
|
|
750
|
|
|
82
|
|
|
15,144
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
4,699
|
|
|
—
|
|
|
—
|
|
|
217
|
|
|
4,916
|
|
|||||
Multifamily
|
3,793
|
|
|
—
|
|
|
—
|
|
|
266
|
|
|
4,059
|
|
|||||
Construction/land development
|
8,069
|
|
|
—
|
|
|
214
|
|
|
(57
|
)
|
|
8,226
|
|
|||||
Total commercial real estate loans
|
16,561
|
|
|
—
|
|
|
214
|
|
|
426
|
|
|
17,201
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied commercial real estate
|
2,337
|
|
|
—
|
|
|
—
|
|
|
202
|
|
|
2,539
|
|
|||||
Commercial business
|
2,644
|
|
|
(16
|
)
|
|
168
|
|
|
(210
|
)
|
|
2,586
|
|
|||||
Total commercial and industrial loans
|
4,981
|
|
|
(16
|
)
|
|
168
|
|
|
(8
|
)
|
|
5,125
|
|
|||||
Total allowance for credit losses
|
$
|
36,042
|
|
|
$
|
(204
|
)
|
|
$
|
1,132
|
|
|
$
|
500
|
|
|
$
|
37,470
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Beginning
balance |
|
Charge-offs
|
|
Recoveries
|
|
(Reversal of) Provision
|
|
Ending
balance |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
9,412
|
|
|
$
|
—
|
|
|
$
|
282
|
|
|
$
|
(1,100
|
)
|
|
$
|
8,594
|
|
Home equity and other
|
7,081
|
|
|
(242
|
)
|
|
223
|
|
|
284
|
|
|
7,346
|
|
|||||
|
16,493
|
|
|
(242
|
)
|
|
505
|
|
|
(816
|
)
|
|
15,940
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
4,755
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
4,764
|
|
|||||
Multifamily
|
3,895
|
|
|
—
|
|
|
—
|
|
|
1,122
|
|
|
5,017
|
|
|||||
Construction/land development
|
8,677
|
|
|
—
|
|
|
343
|
|
|
185
|
|
|
9,205
|
|
|||||
Total commercial real estate loans
|
17,327
|
|
|
—
|
|
|
343
|
|
|
1,316
|
|
|
18,986
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Owner occupied commercial real estate
|
2,960
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
3,032
|
|
|||||
Commercial business
|
2,336
|
|
|
(653
|
)
|
|
163
|
|
|
1,178
|
|
|
3,024
|
|
|||||
Total commercial and industrial loans
|
5,296
|
|
|
(653
|
)
|
|
163
|
|
|
1,250
|
|
|
6,056
|
|
|||||
Total allowance for credit losses
|
$
|
39,116
|
|
|
$
|
(895
|
)
|
|
$
|
1,011
|
|
|
$
|
1,750
|
|
|
$
|
40,982
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
(in thousands)
|
Beginning
balance |
|
Charge-offs
|
|
Recoveries
|
|
(Reversal of) Provision
|
|
Ending
balance |
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
8,196
|
|
|
$
|
(2
|
)
|
|
$
|
1,016
|
|
|
$
|
(922
|
)
|
|
$
|
8,288
|
|
Home equity and other
|
6,153
|
|
|
(511
|
)
|
|
353
|
|
|
861
|
|
|
6,856
|
|
|||||
|
14,349
|
|
|
(513
|
)
|
|
1,369
|
|
|
(61
|
)
|
|
15,144
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
4,481
|
|
|
—
|
|
|
—
|
|
|
435
|
|
|
4,916
|
|
|||||
Multifamily
|
3,086
|
|
|
—
|
|
|
—
|
|
|
973
|
|
|
4,059
|
|
|||||
Construction/land development
|
8,553
|
|
|
—
|
|
|
434
|
|
|
(761
|
)
|
|
8,226
|
|
|||||
Total commercial real estate loans
|
16,120
|
|
|
—
|
|
|
434
|
|
|
647
|
|
|
17,201
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied commercial real estate
|
2,199
|
|
|
—
|
|
|
—
|
|
|
340
|
|
|
2,539
|
|
|||||
Commercial business
|
2,596
|
|
|
(16
|
)
|
|
432
|
|
|
(426
|
)
|
|
2,586
|
|
|||||
|
4,795
|
|
|
(16
|
)
|
|
432
|
|
|
(86
|
)
|
|
5,125
|
|
|||||
Total allowance for credit losses
|
$
|
35,264
|
|
|
$
|
(529
|
)
|
|
$
|
2,235
|
|
|
$
|
500
|
|
|
$
|
37,470
|
|
|
At June 30, 2018
|
|
||||||||||||||||||||||
(in thousands)
|
Allowance:
collectively
evaluated for
impairment
|
|
Allowance:
individually
evaluated for
impairment
|
|
Total
|
|
Loans:
collectively
evaluated for
impairment
|
|
Loans:
individually
evaluated for
impairment
|
|
Total
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family
|
$
|
8,478
|
|
|
$
|
116
|
|
|
$
|
8,594
|
|
|
$
|
1,344,362
|
|
|
$
|
67,548
|
|
|
$
|
1,411,910
|
|
|
Home equity and other
|
7,302
|
|
|
44
|
|
|
7,346
|
|
|
511,740
|
|
|
1,260
|
|
|
513,000
|
|
|
||||||
Total consumer loans
|
15,780
|
|
|
160
|
|
|
15,940
|
|
|
1,856,102
|
|
|
68,808
|
|
|
1,924,910
|
|
|
||||||
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-owner occupied commercial real estate
|
4,764
|
|
|
—
|
|
|
4,764
|
|
|
640,984
|
|
|
—
|
|
|
640,984
|
|
|
||||||
Multifamily
|
5,017
|
|
|
—
|
|
|
5,017
|
|
|
835,476
|
|
|
784
|
|
|
836,260
|
|
|
||||||
Construction/land development
|
9,205
|
|
|
—
|
|
|
9,205
|
|
|
777,428
|
|
|
666
|
|
|
778,094
|
|
|
||||||
Total commercial real estate loans
|
18,986
|
|
|
—
|
|
|
18,986
|
|
|
2,253,888
|
|
|
1,450
|
|
|
2,255,338
|
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
3,032
|
|
|
—
|
|
|
3,032
|
|
|
398,889
|
|
|
1,260
|
|
|
400,149
|
|
|
||||||
Commercial business
|
2,902
|
|
|
122
|
|
|
3,024
|
|
|
317,012
|
|
|
2,026
|
|
|
319,038
|
|
|
||||||
Total commercial and industrial loans
|
5,934
|
|
|
122
|
|
|
6,056
|
|
|
715,901
|
|
|
3,286
|
|
|
719,187
|
|
|
||||||
Total loans evaluated for impairment
|
40,700
|
|
|
282
|
|
|
40,982
|
|
|
4,825,891
|
|
|
73,544
|
|
|
4,899,435
|
|
|
||||||
Loans held for investment carried at fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,187
|
|
(1)
|
||||||
Total loans held for investment
|
$
|
40,700
|
|
|
$
|
282
|
|
|
$
|
40,982
|
|
|
$
|
4,825,891
|
|
|
$
|
73,544
|
|
|
$
|
4,903,622
|
|
|
|
At December 31, 2017
|
|
||||||||||||||||||||||
(in thousands)
|
Allowance:
collectively
evaluated for
impairment
|
|
Allowance:
individually
evaluated for
impairment
|
|
Total
|
|
Loans:
collectively
evaluated for
impairment
|
|
Loans:
individually
evaluated for
impairment
|
|
Total
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family
|
$
|
9,188
|
|
|
$
|
224
|
|
|
$
|
9,412
|
|
|
$
|
1,300,939
|
|
|
$
|
74,967
|
|
|
$
|
1,375,906
|
|
|
Home equity and other
|
7,036
|
|
|
45
|
|
|
7,081
|
|
|
452,182
|
|
|
1,290
|
|
|
453,472
|
|
|
||||||
Total consumer loans
|
16,224
|
|
|
269
|
|
|
16,493
|
|
|
1,753,121
|
|
|
76,257
|
|
|
1,829,378
|
|
|
||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-owner occupied commercial real estate
|
4,755
|
|
|
—
|
|
|
4,755
|
|
|
622,782
|
|
|
—
|
|
|
622,782
|
|
|
||||||
Multifamily
|
3,895
|
|
|
—
|
|
|
3,895
|
|
|
727,228
|
|
|
809
|
|
|
728,037
|
|
|
||||||
Construction/land development
|
8,677
|
|
|
—
|
|
|
8,677
|
|
|
687,177
|
|
|
454
|
|
|
687,631
|
|
|
||||||
Total commercial real estate loans
|
17,327
|
|
|
—
|
|
|
17,327
|
|
|
2,037,187
|
|
|
1,263
|
|
|
2,038,450
|
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
2,960
|
|
|
—
|
|
|
2,960
|
|
|
388,624
|
|
|
2,989
|
|
|
391,613
|
|
|
||||||
Commercial business
|
2,316
|
|
|
20
|
|
|
2,336
|
|
|
261,603
|
|
|
3,106
|
|
|
264,709
|
|
|
||||||
Total commercial and industrial loans
|
5,276
|
|
|
20
|
|
|
5,296
|
|
|
650,227
|
|
|
6,095
|
|
|
656,322
|
|
|
||||||
Total loans evaluated for impairment
|
38,827
|
|
|
289
|
|
|
39,116
|
|
|
4,440,535
|
|
|
83,615
|
|
|
4,524,150
|
|
|
||||||
Loans held for investment carried at fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
5,246
|
|
|
231
|
|
|
5,477
|
|
(1)
|
||||||
Total loans held for investment
|
$
|
38,827
|
|
|
$
|
289
|
|
|
$
|
39,116
|
|
|
$
|
4,445,781
|
|
|
$
|
83,846
|
|
|
$
|
4,529,627
|
|
|
(1)
|
Comprised of single family loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations.
|
|
At June 30, 2018
|
||||||||||
(in thousands)
|
Recorded
investment (1)
|
|
Unpaid
principal
balance (2)
|
|
Related
allowance
|
||||||
|
|
|
|
|
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family
|
$
|
65,585
|
|
|
$
|
66,378
|
|
|
$
|
—
|
|
Home equity and other
|
759
|
|
|
784
|
|
|
—
|
|
|||
Total consumer loans
|
66,344
|
|
|
67,162
|
|
|
—
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Multifamily
|
784
|
|
|
822
|
|
|
—
|
|
|||
Construction/land development
|
666
|
|
|
666
|
|
|
—
|
|
|||
Total commercial real estate loans
|
1,450
|
|
|
1,488
|
|
|
—
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
1,260
|
|
|
1,569
|
|
|
—
|
|
|||
Commercial business
|
1,589
|
|
|
2,262
|
|
|
—
|
|
|||
Total commercial and industrial loans
|
2,849
|
|
|
3,831
|
|
|
—
|
|
|||
|
$
|
70,643
|
|
|
$
|
72,481
|
|
|
$
|
—
|
|
With an allowance recorded:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family
|
$
|
1,963
|
|
|
$
|
2,021
|
|
|
$
|
116
|
|
Home equity and other
|
501
|
|
|
500
|
|
|
44
|
|
|||
Total consumer loans
|
2,464
|
|
|
2,521
|
|
|
160
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Commercial business
|
437
|
|
|
857
|
|
|
122
|
|
|||
Total commercial and industrial loans
|
437
|
|
|
857
|
|
|
122
|
|
|||
|
$
|
2,901
|
|
|
$
|
3,378
|
|
|
$
|
282
|
|
Total:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family(3)
|
$
|
67,548
|
|
|
$
|
68,399
|
|
|
$
|
116
|
|
Home equity and other
|
1,260
|
|
|
1,284
|
|
|
44
|
|
|||
Total consumer loans
|
68,808
|
|
|
69,683
|
|
|
160
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Multifamily
|
784
|
|
|
822
|
|
|
—
|
|
|||
Construction/land development
|
666
|
|
|
666
|
|
|
—
|
|
|||
Total commercial and industrial loans
|
1,450
|
|
|
1,488
|
|
|
—
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
1,260
|
|
|
1,569
|
|
|
—
|
|
|||
Commercial business
|
2,026
|
|
|
3,119
|
|
|
122
|
|
|||
Total commercial and industrial loans
|
3,286
|
|
|
4,688
|
|
|
122
|
|
|||
Total impaired loans
|
$
|
73,544
|
|
|
$
|
75,859
|
|
|
$
|
282
|
|
(1)
|
Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums.
|
(2)
|
Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances.
|
(3)
|
Includes $65.5 million in single family performing trouble debt restructurings ("TDRs").
|
|
At December 31, 2017
|
||||||||||
(in thousands)
|
Recorded
investment (1)
|
|
Unpaid
principal
balance (2)
|
|
Related
allowance
|
||||||
|
|
|
|
|
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family
|
$
|
71,264
|
|
(4)
|
$
|
72,424
|
|
|
$
|
—
|
|
Home equity and other
|
782
|
|
|
807
|
|
|
—
|
|
|||
Total consumer loans
|
72,046
|
|
|
73,231
|
|
|
—
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Multifamily
|
809
|
|
|
837
|
|
|
—
|
|
|||
Construction/land development
|
454
|
|
|
454
|
|
|
—
|
|
|||
Total commercial real estate loans
|
1,263
|
|
|
1,291
|
|
|
—
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
2,989
|
|
|
3,288
|
|
|
—
|
|
|||
Commercial business
|
2,398
|
|
|
3,094
|
|
|
—
|
|
|||
Total commercial and industrial loans
|
5,387
|
|
|
6,382
|
|
|
—
|
|
|||
|
$
|
78,696
|
|
|
$
|
80,904
|
|
|
$
|
—
|
|
With an allowance recorded:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family
|
$
|
3,934
|
|
|
$
|
4,025
|
|
|
$
|
224
|
|
Home equity and other
|
508
|
|
|
508
|
|
|
45
|
|
|||
Total consumer loans
|
4,442
|
|
|
4,533
|
|
|
269
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Commercial business
|
708
|
|
|
755
|
|
|
20
|
|
|||
Total commercial and industrial loans
|
708
|
|
|
755
|
|
|
20
|
|
|||
|
$
|
5,150
|
|
|
$
|
5,288
|
|
|
$
|
289
|
|
Total:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family(3)
|
$
|
75,198
|
|
|
$
|
76,449
|
|
|
$
|
224
|
|
Home equity and other
|
1,290
|
|
|
1,315
|
|
|
45
|
|
|||
Total consumer loans
|
76,488
|
|
|
77,764
|
|
|
269
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Multifamily
|
809
|
|
|
837
|
|
|
—
|
|
|||
Construction/land development
|
454
|
|
|
454
|
|
|
—
|
|
|||
Total commercial real estate loans
|
1,263
|
|
|
1,291
|
|
|
—
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
2,989
|
|
|
3,288
|
|
|
—
|
|
|||
Commercial business
|
3,106
|
|
|
3,849
|
|
|
20
|
|
|||
Total commercial and industrial loans
|
6,095
|
|
|
7,137
|
|
|
20
|
|
|||
Total impaired loans
|
$
|
83,846
|
|
|
$
|
86,192
|
|
|
$
|
289
|
|
(1)
|
Includes partial charge-offs and nonaccrual interest paid and purchase discounts and premiums.
|
(2)
|
Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances.
|
(3)
|
Includes $69.6 million in single family performing TDRs.
|
(4)
|
Includes $231 thousand of fair value option loans.
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
(in thousands)
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
Consumer loans
|
|
|
|
|
|
|
|
||||||||
Single family
|
$
|
68,188
|
|
|
$
|
657
|
|
|
$
|
83,653
|
|
|
$
|
790
|
|
Home equity and other
|
1,263
|
|
|
19
|
|
|
1,568
|
|
|
24
|
|
||||
Total consumer loans
|
69,451
|
|
|
676
|
|
|
85,221
|
|
|
814
|
|
||||
Commercial real estate loans
|
|
|
|
|
|
|
|
||||||||
Non-owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
1,161
|
|
|
—
|
|
||||
Multifamily
|
792
|
|
|
6
|
|
|
832
|
|
|
6
|
|
||||
Construction/land development
|
628
|
|
|
6
|
|
|
1,105
|
|
|
21
|
|
||||
Total commercial real estate loans
|
1,420
|
|
|
12
|
|
|
3,098
|
|
|
27
|
|
||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
||||||||
Owner occupied commercial real estate
|
2,057
|
|
|
19
|
|
|
3,280
|
|
|
37
|
|
||||
Commercial business
|
2,405
|
|
|
29
|
|
|
2,380
|
|
|
36
|
|
||||
Total commercial and industrial loans
|
4,462
|
|
|
48
|
|
|
5,660
|
|
|
73
|
|
||||
|
$
|
75,333
|
|
|
$
|
736
|
|
|
$
|
93,979
|
|
|
$
|
914
|
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
(in thousands)
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
Consumer loans
|
|
|
|
|
|
|
|
||||||||
Single family
|
$
|
70,525
|
|
|
$
|
1,310
|
|
|
$
|
82,661
|
|
|
$
|
1,540
|
|
Home equity and other
|
1,272
|
|
|
38
|
|
|
1,533
|
|
|
43
|
|
||||
Total consumer loans
|
71,797
|
|
|
1,348
|
|
|
84,194
|
|
|
1,583
|
|
||||
Commercial real estate loans
|
|
|
|
|
|
|
|
||||||||
Non-owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
1,065
|
|
|
—
|
|
||||
Multifamily
|
797
|
|
|
12
|
|
|
836
|
|
|
12
|
|
||||
Construction/land development
|
570
|
|
|
11
|
|
|
1,367
|
|
|
47
|
|
||||
Total commercial real estate loans
|
1,367
|
|
|
23
|
|
|
3,268
|
|
|
59
|
|
||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
||||||||
Owner occupied commercial real estate
|
2,367
|
|
|
55
|
|
|
2,676
|
|
|
96
|
|
||||
Commercial business
|
2,639
|
|
|
66
|
|
|
2,684
|
|
|
83
|
|
||||
Total commercial and industrial loans
|
5,006
|
|
|
121
|
|
|
5,360
|
|
|
179
|
|
||||
|
$
|
78,170
|
|
|
$
|
1,492
|
|
|
$
|
92,822
|
|
|
$
|
1,821
|
|
•
|
The borrower may be experiencing declining operating trends, strained cash flows or less-than anticipated financial performance. Cash flow should still be adequate to cover debt service, and the negative trends should be identified as being of a short-term or temporary nature.
|
•
|
The borrower may have experienced a minor, unexpected covenant violation.
|
•
|
The borrower may be experiencing tight working capital or have a cash cushion deficiency.
|
•
|
A loan may also be a watch if financial information is late, there is a documentation deficiency, the borrower has experienced unexpected management turnover, or if it faces industry issues that, when combined with performance factors create uncertainty in its future ability to perform.
|
•
|
Delinquent payments, increasing and material overdraft activity, request for bulge and/or out-of-formula advances may be an indicator of inadequate working capital and may suggest a lower rating.
|
•
|
Failure of the intended repayment source to materialize as expected, or renewal of a loan (other than cash/marketable security secured or lines of credit) without reduction are possible indicators of a watch or worse risk rating.
|
•
|
Performance is poor or significantly less than expected. There may be a temporary debt-servicing deficiency or inadequate working capital as evidenced by a cash cushion deficiency, but not to the extent that repayment is compromised. Material violation of financial covenants is common.
|
•
|
Loans with unresolved material issues that significantly cloud the debt service outlook, even though a debt servicing deficiency does not currently exist.
|
•
|
Modest underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt as structured. Depth of support for interest carry provided by owner/guarantors may mitigate and provide for improved rating.
|
•
|
This rating may be assigned when a loan officer is unable to supervise the credit properly, or when there is an inadequate loan agreement, an inability to control collateral, failure to obtain proper documentation, or any other deviation from prudent lending practices.
|
•
|
Unlike a substandard credit, there should be a reasonable expectation that these temporary issues will be corrected within the normal course of business, rather than through liquidation of assets, and in a reasonable period of time.
|
•
|
Cash flow deficiencies or trends are of a magnitude to jeopardize current and future payments with no immediate relief. A loss is not presently expected, however the outlook is sufficiently uncertain to preclude ruling out the possibility.
|
•
|
The borrower has been unable to adjust to prolonged and unfavorable industry or economic trends.
|
•
|
Material underperformance or deviation from plan for real estate loans where absorption of rental/sales units is necessary to properly service the debt and risk is not mitigated by willingness and capacity of owner/guarantor to support interest payments.
|
•
|
Management character or honesty has become suspect. This includes instances where the borrower has become uncooperative.
|
•
|
Due to unprofitable or unsuccessful business operations, some form of restructuring of the business, including liquidation of assets, has become the primary source of loan repayment. Cash flow has deteriorated, or been diverted, to the point that sale of collateral is now the Company’s primary source of repayment (unless this was the original source of repayment). If the collateral is under the Company’s control and is cash or other liquid, highly marketable securities and properly margined, then a more appropriate rating might be special mention or watch.
|
•
|
The borrower is involved in bankruptcy proceedings where collateral liquidation values are expected to fully protect the Company against loss.
|
•
|
There is material, uncorrectable faulty documentation or materially suspect financial information.
|
|
At June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Pass
|
|
Watch
|
|
Special mention
|
|
Substandard
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
1,395,212
|
|
(1)
|
$
|
3,360
|
|
|
$
|
11,041
|
|
|
$
|
6,459
|
|
|
$
|
1,416,072
|
|
Home equity and other
|
510,922
|
|
|
132
|
|
|
695
|
|
|
1,267
|
|
|
513,016
|
|
|||||
|
1,906,134
|
|
|
3,492
|
|
|
11,736
|
|
|
7,726
|
|
|
1,929,088
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
629,257
|
|
|
3,182
|
|
|
7,756
|
|
|
789
|
|
|
640,984
|
|
|||||
Multifamily
|
790,836
|
|
|
45,139
|
|
|
—
|
|
|
285
|
|
|
836,260
|
|
|||||
Construction/land development
|
757,359
|
|
|
8,951
|
|
|
6,966
|
|
|
4,818
|
|
|
778,094
|
|
|||||
|
2,177,452
|
|
|
57,272
|
|
|
14,722
|
|
|
5,892
|
|
|
2,255,338
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied commercial real estate
|
356,391
|
|
|
29,172
|
|
|
13,724
|
|
|
862
|
|
|
400,149
|
|
|||||
Commercial business
|
268,488
|
|
|
32,887
|
|
|
16,495
|
|
|
1,168
|
|
|
319,038
|
|
|||||
|
624,879
|
|
|
62,059
|
|
|
30,219
|
|
|
2,030
|
|
|
719,187
|
|
|||||
|
$
|
4,708,465
|
|
|
$
|
122,823
|
|
|
$
|
56,677
|
|
|
$
|
15,648
|
|
|
$
|
4,903,613
|
|
(1)
|
Includes $4.2 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations.
|
|
At December 31, 2017
|
||||||||||||||||||
(in thousands)
|
Pass
|
|
Watch
|
|
Special mention
|
|
Substandard
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
1,355,965
|
|
(1)
|
$
|
2,982
|
|
|
$
|
11,328
|
|
|
$
|
11,091
|
|
|
$
|
1,381,366
|
|
Home equity and other
|
451,194
|
|
|
143
|
|
|
751
|
|
|
1,401
|
|
|
453,489
|
|
|||||
|
1,807,159
|
|
|
3,125
|
|
|
12,079
|
|
|
12,492
|
|
|
1,834,855
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
613,181
|
|
|
8,801
|
|
|
—
|
|
|
800
|
|
|
622,782
|
|
|||||
Multifamily
|
693,190
|
|
|
34,038
|
|
|
507
|
|
|
302
|
|
|
728,037
|
|
|||||
Construction/land development
|
664,025
|
|
|
22,062
|
|
|
1,466
|
|
|
78
|
|
|
687,631
|
|
|||||
|
1,970,396
|
|
|
64,901
|
|
|
1,973
|
|
|
1,180
|
|
|
2,038,450
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied commercial real estate
|
361,429
|
|
|
20,949
|
|
|
6,399
|
|
|
2,836
|
|
|
391,613
|
|
|||||
Commercial business
|
220,461
|
|
|
39,588
|
|
|
1,959
|
|
|
2,701
|
|
|
264,709
|
|
|||||
|
581,890
|
|
|
60,537
|
|
|
8,358
|
|
|
5,537
|
|
|
656,322
|
|
|||||
|
$
|
4,359,445
|
|
|
$
|
128,563
|
|
|
$
|
22,410
|
|
|
$
|
19,209
|
|
|
$
|
4,529,627
|
|
(1)
|
Includes $5.5 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations.
|
|
At June 30, 2018
|
|
||||||||||||||||||||||||||
(in thousands)
|
30-59 days
past due
|
|
60-89 days
past due
|
|
90 days or
more
past due
|
|
Total past
due
|
|
Current
|
|
Total
loans
|
|
90 days or
more past
due and
accruing
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Single family
|
$
|
9,857
|
|
|
$
|
4,322
|
|
|
$
|
47,426
|
|
|
$
|
61,605
|
|
|
$
|
1,354,467
|
|
(1)
|
$
|
1,416,072
|
|
|
$
|
40,967
|
|
(2)
|
Home equity and other
|
477
|
|
|
19
|
|
|
1,267
|
|
|
1,763
|
|
|
511,253
|
|
|
513,016
|
|
|
—
|
|
|
|||||||
|
10,334
|
|
|
4,341
|
|
|
48,693
|
|
|
63,368
|
|
|
1,865,720
|
|
|
1,929,088
|
|
|
40,967
|
|
|
|||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Non-owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
640,984
|
|
|
640,984
|
|
|
—
|
|
|
|||||||
Multifamily
|
—
|
|
|
—
|
|
|
285
|
|
|
285
|
|
|
835,975
|
|
|
836,260
|
|
|
—
|
|
|
|||||||
Construction/land development
|
—
|
|
|
—
|
|
|
75
|
|
|
75
|
|
|
778,019
|
|
|
778,094
|
|
|
—
|
|
|
|||||||
|
—
|
|
|
—
|
|
|
360
|
|
|
360
|
|
|
2,254,978
|
|
|
2,255,338
|
|
|
—
|
|
|
|||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
394
|
|
|
394
|
|
|
399,755
|
|
|
400,149
|
|
|
—
|
|
|
|||||||
Commercial business
|
—
|
|
|
—
|
|
|
1,150
|
|
|
1,150
|
|
|
317,888
|
|
|
319,038
|
|
|
—
|
|
|
|||||||
|
—
|
|
|
—
|
|
|
1,544
|
|
|
1,544
|
|
|
717,643
|
|
|
719,187
|
|
|
—
|
|
|
|||||||
|
$
|
10,334
|
|
|
$
|
4,341
|
|
|
$
|
50,597
|
|
|
$
|
65,272
|
|
|
$
|
4,838,341
|
|
|
$
|
4,903,613
|
|
|
$
|
40,967
|
|
|
|
At December 31, 2017
|
|
||||||||||||||||||||||||||
(in thousands)
|
30-59 days
past due |
|
60-89 days
past due |
|
90 days or
more past due |
|
Total past
due |
|
Current
|
|
Total
loans |
|
90 days or
more past due and accruing |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Single family
|
$
|
10,493
|
|
|
$
|
4,437
|
|
|
$
|
48,262
|
|
|
$
|
63,192
|
|
|
$
|
1,318,174
|
|
(1)
|
$
|
1,381,366
|
|
|
$
|
37,171
|
|
(2)
|
Home equity and other
|
750
|
|
|
20
|
|
|
1,404
|
|
|
2,174
|
|
|
451,315
|
|
|
453,489
|
|
|
—
|
|
|
|||||||
|
11,243
|
|
|
4,457
|
|
|
49,666
|
|
|
65,366
|
|
|
1,769,489
|
|
|
1,834,855
|
|
|
37,171
|
|
|
|||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Non-owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
622,782
|
|
|
622,782
|
|
|
—
|
|
|
|||||||
Multifamily
|
—
|
|
|
—
|
|
|
302
|
|
|
302
|
|
|
727,735
|
|
|
728,037
|
|
|
—
|
|
|
|||||||
Construction/land development
|
641
|
|
|
—
|
|
|
78
|
|
|
719
|
|
|
686,912
|
|
|
687,631
|
|
|
—
|
|
|
|||||||
|
641
|
|
|
—
|
|
|
380
|
|
|
1,021
|
|
|
2,037,429
|
|
|
2,038,450
|
|
|
—
|
|
|
|||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
640
|
|
|
640
|
|
|
390,973
|
|
|
391,613
|
|
|
—
|
|
|
|||||||
Commercial business
|
377
|
|
|
—
|
|
|
1,526
|
|
|
1,903
|
|
|
262,806
|
|
|
264,709
|
|
|
—
|
|
|
|||||||
|
377
|
|
|
—
|
|
|
2,166
|
|
|
2,543
|
|
|
653,779
|
|
|
656,322
|
|
|
—
|
|
|
|||||||
|
$
|
12,261
|
|
|
$
|
4,457
|
|
|
$
|
52,212
|
|
|
$
|
68,930
|
|
|
$
|
4,460,697
|
|
|
$
|
4,529,627
|
|
|
$
|
37,171
|
|
|
(1)
|
Includes $4.2 million and $5.5 million of loans at June 30, 2018 and December 31, 2017, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in our consolidated statements of operations.
|
(2)
|
FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.
|
|
At June 30, 2018
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family
|
$
|
1,409,613
|
|
(1)
|
$
|
6,459
|
|
|
$
|
1,416,072
|
|
Home equity and other
|
511,749
|
|
|
1,267
|
|
|
513,016
|
|
|||
|
1,921,362
|
|
|
7,726
|
|
|
1,929,088
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Non-owner occupied commercial real estate
|
640,984
|
|
|
—
|
|
|
640,984
|
|
|||
Multifamily
|
835,975
|
|
|
285
|
|
|
836,260
|
|
|||
Construction/land development
|
778,019
|
|
|
75
|
|
|
778,094
|
|
|||
|
2,254,978
|
|
|
360
|
|
|
2,255,338
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
399,755
|
|
|
394
|
|
|
400,149
|
|
|||
Commercial business
|
317,888
|
|
|
1,150
|
|
|
319,038
|
|
|||
|
717,643
|
|
|
1,544
|
|
|
719,187
|
|
|||
|
$
|
4,893,983
|
|
|
$
|
9,630
|
|
|
$
|
4,903,613
|
|
|
At December 31, 2017
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family
|
$
|
1,370,275
|
|
(1)
|
$
|
11,091
|
|
|
$
|
1,381,366
|
|
Home equity and other
|
452,085
|
|
|
1,404
|
|
|
453,489
|
|
|||
|
1,822,360
|
|
|
12,495
|
|
|
1,834,855
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Non-owner occupied commercial real estate
|
622,782
|
|
|
—
|
|
|
622,782
|
|
|||
Multifamily
|
727,735
|
|
|
302
|
|
|
728,037
|
|
|||
Construction/land development
|
687,553
|
|
|
78
|
|
|
687,631
|
|
|||
|
2,038,070
|
|
|
380
|
|
|
2,038,450
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
390,973
|
|
|
640
|
|
|
391,613
|
|
|||
Commercial business
|
263,183
|
|
|
1,526
|
|
|
264,709
|
|
|||
|
654,156
|
|
|
2,166
|
|
|
656,322
|
|
|||
|
$
|
4,514,586
|
|
|
$
|
15,041
|
|
|
$
|
4,529,627
|
|
(1)
|
Includes $4.2 million and $5.5 million of loans at June 30, 2018 and December 31, 2017, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations.
|
|
Three Months Ended June 30, 2018
|
|||||||||||
(dollars in thousands)
|
Concession type
|
|
Number of loan
modifications |
|
Recorded
investment |
|
Related charge-
offs |
|||||
|
|
|
|
|
|
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|||||
Single family
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
5
|
|
|
$
|
777
|
|
|
$
|
—
|
|
|
Payment restructure
|
|
39
|
|
|
8,741
|
|
|
—
|
|
||
Total consumer
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
5
|
|
|
777
|
|
|
—
|
|
||
|
Payment restructure
|
|
39
|
|
|
8,741
|
|
|
—
|
|
||
|
|
|
44
|
|
|
9,518
|
|
|
—
|
|
||
Total loans
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
5
|
|
|
777
|
|
|
—
|
|
||
|
Payment restructure
|
|
39
|
|
|
8,741
|
|
|
—
|
|
||
|
|
|
44
|
|
|
$
|
9,518
|
|
|
$
|
—
|
|
|
Three Months Ended June 30, 2017
|
|||||||||||
(dollars in thousands)
|
Concession type
|
|
Number of loan
modifications |
|
Recorded
investment |
|
Related charge-
offs |
|||||
|
|
|
|
|
|
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|||||
Single family
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
13
|
|
|
$
|
2,097
|
|
|
$
|
—
|
|
|
Payment restructure
|
|
30
|
|
|
6,015
|
|
|
—
|
|
||
Home equity and other
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
277
|
|
|
—
|
|
||
Total consumer
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
13
|
|
|
2,097
|
|
|
—
|
|
||
|
Payment restructure
|
|
31
|
|
|
6,292
|
|
|
—
|
|
||
|
|
|
44
|
|
|
8,389
|
|
|
—
|
|
||
Commercial real estate loans
|
|
|
|
|
|
|
|
|||||
Construction/land development
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
436
|
|
|
—
|
|
||
Total commercial real estate
|
|
|
1
|
|
|
436
|
|
|
—
|
|
||
Total loans
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
13
|
|
|
2,097
|
|
|
—
|
|
||
|
Payment restructure
|
|
32
|
|
|
6,728
|
|
|
—
|
|
||
|
|
|
45
|
|
|
$
|
8,825
|
|
|
$
|
—
|
|
|
Six Months Ended June 30, 2018
|
|||||||||||
(dollars in thousands)
|
Concession type
|
|
Number of loan
modifications |
|
Recorded
investment |
|
Related charge-
offs |
|||||
|
|
|
|
|
|
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|||||
Single family
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
13
|
|
|
$
|
2,462
|
|
|
$
|
—
|
|
|
Payment restructure
|
|
64
|
|
|
13,930
|
|
|
—
|
|
||
Total consumer
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
13
|
|
|
2,462
|
|
|
—
|
|
||
|
Payment restructure
|
|
64
|
|
|
13,930
|
|
|
—
|
|
||
|
|
|
77
|
|
|
16,392
|
|
|
—
|
|
||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|||||
Commercial business
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
2
|
|
|
267
|
|
|
—
|
|
||
Total commercial and industrial
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
2
|
|
|
267
|
|
|
—
|
|
||
|
|
|
2
|
|
|
267
|
|
|
—
|
|
||
Total loans
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
13
|
|
|
2,462
|
|
|
—
|
|
||
|
Payment restructure
|
|
66
|
|
|
14,197
|
|
|
—
|
|
||
|
|
|
79
|
|
|
$
|
16,659
|
|
|
$
|
—
|
|
|
Six Months Ended June 30, 2017
|
|||||||||||
(dollars in thousands)
|
Concession type
|
|
Number of loan
modifications |
|
Recorded
investment |
|
Related charge-
offs |
|||||
|
|
|
|
|
|
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|||||
Single family
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
39
|
|
|
$
|
6,920
|
|
|
$
|
—
|
|
|
Payment restructure
|
|
42
|
|
|
8,892
|
|
|
—
|
|
||
Home equity and other
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
2
|
|
|
351
|
|
|
—
|
|
||
Total consumer
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
39
|
|
|
6,920
|
|
|
—
|
|
||
|
Payment restructure
|
|
44
|
|
|
9,243
|
|
|
—
|
|
||
|
|
|
83
|
|
|
16,163
|
|
|
—
|
|
||
Commercial real estate loans
|
|
|
|
|
|
|
|
|||||
Construction/land development
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
436
|
|
|
—
|
|
||
Total commercial real estate
|
|
|
1
|
|
|
436
|
|
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|||||
Commercial business
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
18
|
|
|
—
|
|
||
Total commercial and industrial
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
18
|
|
|
—
|
|
||
Total loans
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
39
|
|
|
6,920
|
|
|
—
|
|
||
|
Payment restructure
|
|
46
|
|
|
9,697
|
|
|
—
|
|
||
|
|
|
85
|
|
|
$
|
16,617
|
|
|
$
|
—
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
(dollars in thousands)
|
Number of loan relationships that re-defaulted
|
|
Recorded
investment |
|
Number of loan relationships that re-defaulted
|
|
Recorded
investment |
||||||
|
|
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
|
|
||||||
Single family
|
6
|
|
|
$
|
1,395
|
|
|
7
|
|
|
$
|
1,382
|
|
|
6
|
|
|
$
|
1,395
|
|
|
7
|
|
|
$
|
1,382
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
(dollars in thousands)
|
Number of loan relationships that re-defaulted
|
|
Recorded
investment |
|
Number of loan relationships that re-defaulted
|
|
Recorded
investment |
||||||
|
|
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
|
|
||||||
Single family
|
12
|
|
|
$
|
2,279
|
|
|
8
|
|
|
$
|
1,652
|
|
|
12
|
|
|
$
|
2,279
|
|
|
8
|
|
|
$
|
1,652
|
|
(in thousands)
|
At June 30,
2018 |
|
At December 31,
2017 |
||||
|
|
|
|
||||
Noninterest-bearing accounts
|
$
|
1,021,790
|
|
|
$
|
980,902
|
|
NOW accounts, 0.00% to 1.00% at June 30, 2018 and 0.00% to 1.98% at December 31, 2017
|
486,104
|
|
|
461,349
|
|
||
Statement savings accounts, due on demand, 0.05% to 1.13% at June 30, 2018 and December 31, 2017
|
283,969
|
|
|
293,858
|
|
||
Money market accounts, due on demand, 0.00% to 1.92% at June 30, 2018 and 0.00% to 1.80% at December 31, 2017
|
1,932,340
|
|
|
1,834,154
|
|
||
Certificates of deposit, 0.10% to 3.80% at June 30, 2018 and 0.05% to 3.80% at December 31, 2017
|
1,396,082
|
|
|
1,190,689
|
|
||
|
$
|
5,120,285
|
|
|
$
|
4,760,952
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
NOW accounts
|
$
|
430
|
|
|
$
|
503
|
|
|
$
|
870
|
|
|
$
|
980
|
|
Statement savings accounts
|
217
|
|
|
253
|
|
|
446
|
|
|
505
|
|
||||
Money market accounts
|
4,064
|
|
|
1,935
|
|
|
7,523
|
|
|
4,165
|
|
||||
Certificates of deposit
|
4,851
|
|
|
3,176
|
|
|
8,511
|
|
|
5,840
|
|
||||
|
$
|
9,562
|
|
|
$
|
5,867
|
|
|
$
|
17,350
|
|
|
$
|
11,490
|
|
(in thousands)
|
At June 30,
2018 |
||
|
|
||
Within one year
|
$
|
1,114,257
|
|
One to two years
|
207,361
|
|
|
Two to three years
|
45,187
|
|
|
Three to four years
|
10,340
|
|
|
Four to five years
|
18,660
|
|
|
Thereafter
|
277
|
|
|
|
$
|
1,396,082
|
|
|
At June 30, 2018
|
||||||||||
|
Notional amount
|
|
Fair value derivatives
|
||||||||
(in thousands)
|
|
|
Asset
|
|
Liability
|
||||||
|
|
|
|
|
|
||||||
Forward sale commitments
|
$
|
1,609,872
|
|
|
$
|
2,224
|
|
|
$
|
(3,134
|
)
|
Interest rate swaptions
|
30,000
|
|
|
79
|
|
|
—
|
|
|||
Interest rate lock and purchase loan commitments
|
594,753
|
|
|
16,972
|
|
|
(106
|
)
|
|||
Interest rate swaps
|
1,311,000
|
|
|
9,609
|
|
|
(35,063
|
)
|
|||
Eurodollar futures
|
4,483,000
|
|
|
78
|
|
|
—
|
|
|||
Total derivatives before netting
|
$
|
8,028,625
|
|
|
28,962
|
|
|
(38,303
|
)
|
||
Netting adjustment/Cash collateral (1)
|
|
|
(8,771
|
)
|
|
33,928
|
|
||||
Carrying value on consolidated statements of financial condition
|
|
|
$
|
20,191
|
|
|
$
|
(4,375
|
)
|
(1)
|
Includes cash collateral of $25.2 million at June 30, 2018 as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security.
|
|
At December 31, 2017
|
||||||||||
|
Notional amount
|
|
Fair value derivatives
|
||||||||
(in thousands)
|
|
|
Asset
|
|
Liability
|
||||||
|
|
|
|
|
|
||||||
Forward sale commitments
|
$
|
1,687,658
|
|
|
$
|
1,311
|
|
|
$
|
(1,445
|
)
|
Interest rate swaptions
|
120,000
|
|
|
—
|
|
|
—
|
|
|||
Interest rate lock and purchase loan commitments
|
472,733
|
|
|
12,950
|
|
|
(25
|
)
|
|||
Interest rate swaps
|
1,869,000
|
|
|
12,171
|
|
|
(23,654
|
)
|
|||
Eurodollar futures
|
3,287,000
|
|
|
—
|
|
|
(101
|
)
|
|||
Total derivatives before netting
|
$
|
7,436,391
|
|
|
26,432
|
|
|
(25,225
|
)
|
||
Netting adjustment/Cash collateral (1)
|
|
|
(6,646
|
)
|
|
23,505
|
|
||||
Carrying value on consolidated statements of financial condition
|
|
|
$
|
19,786
|
|
|
$
|
(1,720
|
)
|
(1)
|
Includes cash collateral of $16.9 million at December 31, 2017 as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security.
|
|
At June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Gross fair value
|
|
Netting adjustments/ Cash collateral(1)
|
|
Carrying value
|
|
Securities not offset in consolidated balance sheet (disclosure-only netting)
|
|
Net amount
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative assets
|
$
|
28,962
|
|
|
$
|
(8,771
|
)
|
|
$
|
20,191
|
|
|
$
|
—
|
|
|
$
|
20,191
|
|
Derivative liabilities
|
(38,303
|
)
|
|
33,928
|
|
|
(4,375
|
)
|
|
3,766
|
|
|
(609
|
)
|
|
At December 31, 2017
|
||||||||||||||||||
(in thousands)
|
Gross fair value
|
|
Netting adjustments/ Cash collateral(1)
|
|
Carrying value
|
|
Securities not offset in consolidated balance sheet (disclosure-only netting)
|
|
Net amount
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative assets
|
$
|
26,432
|
|
|
$
|
(6,646
|
)
|
|
$
|
19,786
|
|
|
$
|
—
|
|
|
$
|
19,786
|
|
Derivative liabilities
|
(25,225
|
)
|
|
23,505
|
|
|
(1,720
|
)
|
|
1,213
|
|
|
(507
|
)
|
(1)
|
Includes cash collateral of $25.2 million and $16.9 million at June 30, 2018 and December 31, 2017, respectively, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Recognized in noninterest income:
|
|
|
|
|
|
|
|
||||||||
Net gain (loss) on loan origination and sale activities (1)
|
$
|
2,957
|
|
|
$
|
(10,109
|
)
|
|
$
|
17,082
|
|
|
$
|
(11,608
|
)
|
Loan servicing (loss) income (2)
|
(12,188
|
)
|
|
8,874
|
|
|
(43,165
|
)
|
|
9,253
|
|
||||
|
$
|
(9,231
|
)
|
|
$
|
(1,235
|
)
|
|
$
|
(26,083
|
)
|
|
$
|
(2,355
|
)
|
(1)
|
Comprised of interest rate lock commitments ("IRLCs") and forward contracts used as an economic hedge of IRLCs and single family mortgage loans held for sale.
|
(2)
|
Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs.
|
(in thousands)
|
At June 30,
2018 |
|
At December 31,
2017 |
||||
|
|
|
|
||||
Single family
|
$
|
527,088
|
|
|
$
|
577,313
|
|
Multifamily DUS® (1)
|
35,656
|
|
|
29,651
|
|
||
Small Business Administration ("SBA")
|
4,253
|
|
|
3,938
|
|
||
CRE-Non-DUS® (1)(2)
|
1,517
|
|
|
—
|
|
||
Total loans held for sale
|
$
|
568,514
|
|
|
$
|
610,902
|
|
(1)
|
Fannie Mae Multifamily Delegated Underwriting and Servicing Program (“DUS"®) is a registered trademark of Fannie Mae.
|
(2)
|
Loans originated as Held for Investment.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
1,768,348
|
|
(1
|
)
|
$
|
1,808,500
|
|
|
$
|
3,319,072
|
|
(1
|
)
|
$
|
3,548,237
|
|
Multifamily DUS® (2)
|
54,621
|
|
|
35,312
|
|
|
87,597
|
|
|
112,161
|
|
||||||
SBA
|
3,622
|
|
|
3,532
|
|
|
7,314
|
|
|
11,167
|
|
||||||
CRE-Non-DUS® (2)(3)
|
114,650
|
|
|
21,163
|
|
|
114,650
|
|
|
26,714
|
|
||||||
Total loans sold
|
$
|
1,941,241
|
|
|
$
|
1,868,507
|
|
|
$
|
3,528,633
|
|
|
$
|
3,698,279
|
|
(1)
|
Includes proceeds of $138.6 million in single family loans originated as held for investment.
|
(2)
|
Fannie Mae Multifamily DUS® is a registered trademark of Fannie Mae.
|
(3)
|
Loans originated as Held for Investment.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Single family:
|
|
|
|
|
|
|
|
||||||||
Servicing value and secondary market gains(1)
|
$
|
48,093
|
|
|
$
|
57,353
|
|
|
$
|
89,520
|
|
|
$
|
107,891
|
|
Loan origination and funding fees
|
6,158
|
|
|
6,823
|
|
|
11,603
|
|
|
12,604
|
|
||||
Total single family
|
54,251
|
|
|
64,176
|
|
|
101,123
|
|
|
120,495
|
|
||||
Multifamily DUS®
|
1,613
|
|
|
1,273
|
|
|
2,759
|
|
|
4,633
|
|
||||
SBA
|
385
|
|
|
316
|
|
|
686
|
|
|
918
|
|
||||
CRE-Non-DUS® (2)
|
800
|
|
|
143
|
|
|
800
|
|
|
143
|
|
||||
Total gain on loan origination and sale activities
|
$
|
57,049
|
|
|
$
|
65,908
|
|
|
$
|
105,368
|
|
|
$
|
126,189
|
|
(1)
|
Comprised of gains and losses on interest rate lock and purchase loan commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold.
|
(2)
|
Loan originated as held for investment.
|
(in thousands)
|
At June 30,
2018 |
|
At December 31,
2017 |
||||
|
|
|
|
||||
Single family
|
|
|
|
||||
U.S. government and agency
|
$
|
18,493,704
|
|
|
$
|
22,123,710
|
|
Other
|
579,472
|
|
|
507,437
|
|
||
|
19,073,176
|
|
|
22,631,147
|
|
||
Commercial
|
|
|
|
||||
Multifamily DUS®
|
1,357,929
|
|
|
1,311,399
|
|
||
Other
|
82,083
|
|
|
79,797
|
|
||
|
1,440,012
|
|
|
1,391,196
|
|
||
Total loans serviced for others
|
$
|
20,513,188
|
|
|
$
|
24,022,343
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
2,665
|
|
|
$
|
2,863
|
|
|
$
|
3,015
|
|
|
$
|
3,382
|
|
Additions (reductions), net of adjustments(1)
|
(5
|
)
|
|
328
|
|
|
605
|
|
|
(32
|
)
|
||||
Realized losses (2)
|
(156
|
)
|
|
(201
|
)
|
|
(1,116
|
)
|
|
(360
|
)
|
||||
Balance, end of period
|
$
|
2,504
|
|
|
$
|
2,990
|
|
|
$
|
2,504
|
|
|
$
|
2,990
|
|
(1)
|
Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.
|
(2)
|
Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expense.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Servicing income, net:
|
|
|
|
|
|
|
|
||||||||
Servicing fees and other
|
$
|
18,385
|
|
|
$
|
15,977
|
|
|
$
|
36,836
|
|
|
$
|
32,156
|
|
Changes in fair value of single family MSRs due to modeled amortization (1)
|
(9,400
|
)
|
|
(8,909
|
)
|
|
(18,270
|
)
|
|
(17,429
|
)
|
||||
Amortization of multifamily and SBA MSRs
|
(1,064
|
)
|
|
(761
|
)
|
|
(2,113
|
)
|
|
(1,692
|
)
|
||||
|
7,921
|
|
|
6,307
|
|
|
16,453
|
|
|
13,035
|
|
||||
Risk management, single family MSRs:
|
|
|
|
|
|
|
|
||||||||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2)
|
11,299
|
|
(3)
|
(6,417
|
)
|
|
41,318
|
|
(3)
|
(4,285
|
)
|
||||
Net (loss) gain from derivatives economically hedging MSR
|
(12,188
|
)
|
|
8,874
|
|
|
(43,165
|
)
|
|
9,253
|
|
||||
|
(889
|
)
|
|
2,457
|
|
|
(1,847
|
)
|
|
4,968
|
|
||||
Loan servicing income
|
$
|
7,032
|
|
|
$
|
8,764
|
|
|
$
|
14,606
|
|
|
$
|
18,003
|
|
(1)
|
Represents changes due to collection/realization of expected cash flows and curtailments.
|
(2)
|
Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections.
|
(3)
|
Includes pre-tax income of $573 thousand, net of brokerage fees and prepayment reserves, resulting from the sale of single family MSRs during the three and six months ended June 30, 2018.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
(rates per annum) (1)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
|
|
|
||||
Constant prepayment rate ("CPR") (2)
|
15.69
|
%
|
|
14.75
|
%
|
|
14.72
|
%
|
|
13.39
|
%
|
Discount rate (3)
|
10.29
|
%
|
|
10.30
|
%
|
|
10.26
|
%
|
|
10.29
|
%
|
(1)
|
Weighted average rates for sales during the period for sales of loans with similar characteristics.
|
(2)
|
Represents the expected lifetime average.
|
(3)
|
Discount rate is a rate based on market observations.
|
(dollars in thousands)
|
At June 30, 2018
|
||
|
|
||
Fair value of single family MSR
|
$
|
245,744
|
|
Expected weighted-average life (in years)
|
6.58
|
|
|
Constant prepayment rate (1)
|
11.18
|
%
|
|
Impact on fair value of 25 basis points adverse change in interest rates
|
$
|
(13,929
|
)
|
Impact on fair value of 50 basis points adverse change in interest rates
|
$
|
(29,665
|
)
|
Discount rate
|
10.40
|
%
|
|
Impact on fair value of 100 basis points increase
|
$
|
(8,988
|
)
|
Impact on fair value of 200 basis points increase
|
$
|
(17,353
|
)
|
(1)
|
Represents the expected lifetime average.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
294,062
|
|
|
$
|
235,997
|
|
|
$
|
258,560
|
|
|
$
|
226,113
|
|
||
Additions and amortization:
|
|
|
|
|
|
|
|
||||||||||
Originations
|
16,673
|
|
|
15,748
|
|
|
31,026
|
|
|
31,666
|
|
||||||
Purchases
|
—
|
|
|
211
|
|
|
—
|
|
|
565
|
|
||||||
Sale of single family MSRs
|
(66,890
|
)
|
|
—
|
|
|
(66,890
|
)
|
|
—
|
|
||||||
Changes due to modeled amortization(1)
|
(9,400
|
)
|
|
(8,909
|
)
|
|
(18,270
|
)
|
|
(17,429
|
)
|
||||||
Net additions and amortization
|
(59,617
|
)
|
|
7,050
|
|
|
(54,134
|
)
|
|
14,802
|
|
||||||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2)
|
11,299
|
|
(3
|
)
|
(6,426
|
)
|
|
41,318
|
|
(3
|
)
|
(4,294
|
)
|
||||
Ending balance
|
$
|
245,744
|
|
|
$
|
236,621
|
|
|
$
|
245,744
|
|
|
$
|
236,621
|
|
(1)
|
Represents changes due to collection/realization of expected cash flows and curtailments.
|
(2)
|
Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which affect future prepayment speed and cash flow projections.
|
(3)
|
Includes pre-tax income of $573 thousand, net of brokerage fees and prepayment reserves, resulting from the sale of single family MSRs during the three and six months ended June 30, 2018.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
26,042
|
|
|
$
|
21,424
|
|
|
$
|
26,093
|
|
|
$
|
19,747
|
|
Origination
|
1,409
|
|
|
937
|
|
|
2,343
|
|
|
3,545
|
|
||||
Amortization
|
(991
|
)
|
|
(761
|
)
|
|
(1,976
|
)
|
|
(1,692
|
)
|
||||
Ending balance
|
$
|
26,460
|
|
|
$
|
21,600
|
|
|
$
|
26,460
|
|
|
$
|
21,600
|
|
(in thousands)
|
At June 30, 2018
|
||
|
|
||
Remainder of 2018
|
$
|
1,845
|
|
2019
|
3,626
|
|
|
2020
|
3,557
|
|
|
2021
|
3,357
|
|
|
2022
|
3,046
|
|
|
2023 and thereafter
|
11,029
|
|
|
Carrying value of multifamily MSR
|
$
|
26,460
|
|
(in thousands)
|
Fair Value at June 30, 2018
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
115,848
|
|
|
$
|
—
|
|
|
$
|
115,848
|
|
|
$
|
—
|
|
Commercial
|
30,354
|
|
|
—
|
|
|
30,354
|
|
|
—
|
|
||||
Municipal bonds
|
361,799
|
|
|
—
|
|
|
361,799
|
|
|
—
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
168,519
|
|
|
—
|
|
|
168,519
|
|
|
—
|
|
||||
Commercial
|
111,623
|
|
|
—
|
|
|
111,623
|
|
|
—
|
|
||||
Corporate debt securities
|
21,478
|
|
|
—
|
|
|
21,478
|
|
|
—
|
|
||||
U.S. Treasury securities
|
10,438
|
|
|
—
|
|
|
10,438
|
|
|
—
|
|
||||
Agency debentures
|
9,362
|
|
|
—
|
|
|
9,362
|
|
|
—
|
|
||||
Single family mortgage servicing rights
|
245,744
|
|
|
—
|
|
|
—
|
|
|
245,744
|
|
||||
Single family loans held for sale
|
527,088
|
|
|
—
|
|
|
525,265
|
|
|
1,823
|
|
||||
Single family loans held for investment
|
4,187
|
|
|
—
|
|
|
—
|
|
|
4,187
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Eurodollar futures
|
78
|
|
|
78
|
|
|
—
|
|
|
—
|
|
||||
Forward sale commitments
|
2,224
|
|
|
—
|
|
|
2,224
|
|
|
—
|
|
||||
Interest rate swaptions
|
79
|
|
|
—
|
|
|
79
|
|
|
—
|
|
||||
Interest rate lock and purchase loan commitments
|
16,972
|
|
|
—
|
|
|
—
|
|
|
16,972
|
|
||||
Interest rate swaps
|
9,609
|
|
|
—
|
|
|
9,609
|
|
|
—
|
|
||||
Total assets
|
$
|
1,635,402
|
|
|
$
|
78
|
|
|
$
|
1,366,598
|
|
|
$
|
268,726
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Forward sale commitments
|
$
|
3,134
|
|
|
$
|
—
|
|
|
$
|
3,134
|
|
|
$
|
—
|
|
Interest rate lock and purchase loan commitments
|
106
|
|
|
—
|
|
|
—
|
|
|
106
|
|
||||
Interest rate swaps
|
35,063
|
|
|
—
|
|
|
35,063
|
|
|
—
|
|
||||
Total liabilities
|
$
|
38,303
|
|
|
$
|
—
|
|
|
$
|
38,197
|
|
|
$
|
106
|
|
(in thousands)
|
Fair Value at December 31, 2017
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
130,090
|
|
|
$
|
—
|
|
|
$
|
130,090
|
|
|
$
|
—
|
|
Commercial
|
23,694
|
|
|
—
|
|
|
23,694
|
|
|
—
|
|
||||
Municipal bonds
|
388,452
|
|
|
—
|
|
|
388,452
|
|
|
—
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
160,424
|
|
|
—
|
|
|
160,424
|
|
|
—
|
|
||||
Commercial
|
98,569
|
|
|
—
|
|
|
98,569
|
|
|
—
|
|
||||
Corporate debt securities
|
24,737
|
|
|
—
|
|
|
24,737
|
|
|
—
|
|
||||
U.S. Treasury securities
|
10,652
|
|
|
—
|
|
|
10,652
|
|
|
—
|
|
||||
Agency debentures
|
9,650
|
|
|
|
|
9,650
|
|
|
—
|
|
|||||
Single family mortgage servicing rights
|
258,560
|
|
|
—
|
|
|
—
|
|
|
258,560
|
|
||||
Single family loans held for sale
|
577,313
|
|
|
—
|
|
|
575,977
|
|
|
1,336
|
|
||||
Single family loans held for investment
|
5,477
|
|
|
—
|
|
|
—
|
|
|
5,477
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Forward sale commitments
|
1,311
|
|
|
—
|
|
|
1,311
|
|
|
—
|
|
||||
Interest rate lock and purchase loan commitments
|
12,950
|
|
|
—
|
|
|
—
|
|
|
12,950
|
|
||||
Interest rate swaps
|
12,172
|
|
|
—
|
|
|
12,172
|
|
|
—
|
|
||||
Total assets
|
$
|
1,714,051
|
|
|
$
|
—
|
|
|
$
|
1,435,728
|
|
|
$
|
278,323
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Eurodollar futures
|
$
|
101
|
|
|
$
|
101
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward sale commitments
|
1,445
|
|
|
—
|
|
|
1,445
|
|
|
—
|
|
||||
Interest rate lock and purchase loan commitments
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
Interest rate swaps
|
23,654
|
|
|
—
|
|
|
23,654
|
|
|
—
|
|
||||
Total liabilities
|
$
|
25,225
|
|
|
$
|
101
|
|
|
$
|
25,099
|
|
|
$
|
25
|
|
(dollars in thousands)
|
At June 30, 2018
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans held for investment, fair value option
|
$
|
4,187
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
3.43%
|
|
5.21%
|
|
3.98%
|
(dollars in thousands)
|
At December 31, 2017
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans held for investment, fair value option
|
$
|
5,477
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
3.61%
|
|
4.96%
|
|
4.10%
|
(dollars in thousands)
|
At June 30, 2018
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans held for sale, fair value option
|
$
|
1,823
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
—%
|
|
5.33%
|
|
4.73%
|
|
|
|
|
|
Market price movement from comparable bond
|
|
(0.37)%
|
|
(0.24)%
|
|
(0.30)%
|
(dollars in thousands)
|
At December 31, 2017
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans held for sale, fair value option
|
$
|
1,336
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
3.93%
|
|
3.93%
|
|
3.93%
|
|
|
|
|
|
Market price movement from comparable bond
|
|
(0.38)%
|
|
(0.10)%
|
|
(0.24)%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Beginning balance, net
|
$
|
16,676
|
|
|
$
|
27,136
|
|
|
$
|
12,925
|
|
|
$
|
19,219
|
|
Total realized/unrealized gains
|
28,566
|
|
|
34,127
|
|
|
51,080
|
|
|
69,586
|
|
||||
Settlements
|
(28,376
|
)
|
|
(38,980
|
)
|
|
(47,139
|
)
|
|
(66,522
|
)
|
||||
Ending balance, net
|
$
|
16,866
|
|
|
$
|
22,283
|
|
|
$
|
16,866
|
|
|
$
|
22,283
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
$
|
3,326
|
|
|
$
|
556
|
|
|
$
|
—
|
|
|
$
|
(1,997
|
)
|
|
$
|
(62
|
)
|
|
$
|
1,823
|
|
Loans held for investment
|
|
5,304
|
|
|
—
|
|
|
—
|
|
|
(1,114
|
)
|
|
(3
|
)
|
|
4,187
|
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
$
|
40,331
|
|
|
$
|
197
|
|
|
$
|
13,755
|
|
|
$
|
(25,884
|
)
|
|
$
|
860
|
|
|
$
|
29,259
|
|
Loans held for investment
|
|
19,042
|
|
|
—
|
|
|
(13,575
|
)
|
|
(479
|
)
|
|
146
|
|
|
5,134
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans held for sale
|
|
1,336
|
|
|
2,601
|
|
|
—
|
|
|
(1,997
|
)
|
|
(117
|
)
|
|
1,823
|
|
Loans held for investment
|
|
5,477
|
|
|
—
|
|
|
—
|
|
|
(1,114
|
)
|
|
(176
|
)
|
|
4,187
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans held for sale
|
|
41,810
|
|
|
2,996
|
|
|
13,066
|
|
|
(29,110
|
)
|
|
497
|
|
|
29,259
|
|
Loans held for investment
|
|
17,988
|
|
|
—
|
|
|
(12,369
|
)
|
|
(479
|
)
|
|
(6
|
)
|
|
5,134
|
|
(dollars in thousands)
|
At June 30, 2018
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate lock and purchase loan commitments, net
|
$
|
16,866
|
|
|
Income approach
|
|
Fall-out factor
|
|
0.40%
|
|
61.01%
|
|
17.01%
|
|
|
|
|
|
Value of servicing
|
|
0.68%
|
|
1.64%
|
|
1.05%
|
(dollars in thousands)
|
At December 31, 2017
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate lock and purchase loan commitments, net
|
$
|
12,925
|
|
|
Income approach
|
|
Fall-out factor
|
|
0.00%
|
|
58.38%
|
|
12.05%
|
|
|
|
|
|
Value of servicing
|
|
0.69%
|
|
1.73%
|
|
1.09%
|
|
At or for the Three Months Ended June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Fair Value of Assets Held at June 30, 2018
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gains (Losses)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment(1)
|
$
|
1,341
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,341
|
|
|
$
|
(7
|
)
|
|
At or for the Three Months Ended June 30, 2017
|
||||||||||||||||||
(in thousands)
|
Fair Value of Assets Held at June 30, 2017
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gains (Losses)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment(1)
|
$
|
2,003
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,003
|
|
|
$
|
162
|
|
|
At or for the Six Months Ended June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Fair Value of Assets Held at June 30, 2018
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gains (Losses)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment(1)
|
$
|
1,341
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,341
|
|
|
$
|
(144
|
)
|
|
At or for the Six Months Ended June 30, 2017
|
||||||||||||||||||
(in thousands)
|
Fair Value of Assets Held at June 30, 2017
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gains (Losses)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment(1)
|
$
|
2,003
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,003
|
|
|
$
|
140
|
|
(1)
|
Represents the carrying value of loans for which adjustments are based on the fair value of the collateral.
|
|
At June 30, 2018
|
||||||||||||||||||
(in thousands)
|
Carrying
Value
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
176,218
|
|
|
$
|
176,218
|
|
|
$
|
176,218
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities held to maturity
|
78,035
|
|
|
76,783
|
|
|
—
|
|
|
76,783
|
|
|
—
|
|
|||||
Loans held for investment
|
4,879,123
|
|
|
4,855,496
|
|
|
—
|
|
|
—
|
|
|
4,855,496
|
|
|||||
Loans held for sale – transferred from held for investment
|
1,517
|
|
|
1,517
|
|
|
—
|
|
|
—
|
|
|
1,517
|
|
|||||
Loans held for sale – multifamily and other
|
39,909
|
|
|
39,909
|
|
|
—
|
|
|
39,909
|
|
|
—
|
|
|||||
Mortgage servicing rights – multifamily
|
26,461
|
|
|
29,006
|
|
|
—
|
|
|
—
|
|
|
29,006
|
|
|||||
Federal Home Loan Bank stock
|
48,157
|
|
|
48,157
|
|
|
—
|
|
|
48,157
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
1,396,082
|
|
|
$
|
1,388,422
|
|
|
$
|
—
|
|
|
$
|
1,388,422
|
|
|
$
|
—
|
|
Federal Home Loan Bank advances
|
1,008,613
|
|
|
1,010,460
|
|
|
—
|
|
|
1,010,460
|
|
|
—
|
|
|||||
Other borrowings
|
30,007
|
|
|
30,007
|
|
|
30,007
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
125,368
|
|
|
107,418
|
|
|
—
|
|
|
107,418
|
|
|
—
|
|
|
At December 31, 2017
|
||||||||||||||||||
(in thousands)
|
Carrying
Value
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
72,718
|
|
|
$
|
72,718
|
|
|
$
|
72,718
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities held to maturity
|
58,036
|
|
|
58,128
|
|
|
—
|
|
|
58,128
|
|
|
—
|
|
|||||
Loans held for investment
|
4,500,989
|
|
|
4,497,884
|
|
|
—
|
|
|
—
|
|
|
4,497,884
|
|
|||||
Loans held for sale – multifamily and other
|
33,589
|
|
|
33,589
|
|
|
—
|
|
|
33,589
|
|
|
—
|
|
|||||
Mortgage servicing rights – multifamily
|
26,093
|
|
|
28,362
|
|
|
—
|
|
|
—
|
|
|
28,362
|
|
|||||
Federal Home Loan Bank stock
|
46,639
|
|
|
46,639
|
|
|
—
|
|
|
46,639
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits (1)
|
$
|
1,190,689
|
|
|
$
|
1,186,126
|
|
|
$
|
—
|
|
|
$
|
1,186,126
|
|
|
$
|
—
|
|
Federal Home Loan Bank advances
|
979,201
|
|
|
981,441
|
|
|
—
|
|
|
981,441
|
|
|
—
|
|
|||||
Long-term debt
|
125,274
|
|
|
108,530
|
|
|
—
|
|
|
108,530
|
|
|
—
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands, except share and per share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
7,099
|
|
|
$
|
11,209
|
|
|
$
|
12,965
|
|
|
$
|
20,192
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average number of common shares outstanding
|
26,976,892
|
|
|
26,866,230
|
|
|
26,952,178
|
|
|
26,843,813
|
|
||||
Dilutive effect of outstanding common stock equivalents (1)
|
179,437
|
|
|
218,378
|
|
|
205,486
|
|
|
227,215
|
|
||||
Diluted weighted-average number of common stock outstanding
|
27,156,329
|
|
|
27,084,608
|
|
|
27,157,664
|
|
|
27,071,028
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.26
|
|
|
$
|
0.42
|
|
|
$
|
0.48
|
|
|
$
|
0.75
|
|
Diluted earnings per share
|
$
|
0.26
|
|
|
$
|
0.41
|
|
|
$
|
0.48
|
|
|
$
|
0.75
|
|
(1)
|
Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the three and six months ended June 30, 2018 and 2017 were certain stock options and unvested restricted stock issued to key senior management personnel and directors of the Company. The aggregate number of common stock equivalents related to such options and unvested restricted shares, which could potentially be dilutive in future periods, was 9,259 at June 30, 2018 and 6,417 at June 30, 2017.
|
|
At or for the Three Months Ended June 30, 2018
|
||||||||||
(in thousands)
|
Mortgage
Banking
|
|
Commercial and
Consumer Banking
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Condensed income statement:
|
|
|
|
|
|
||||||
Net interest income (1)
|
$
|
3,258
|
|
|
$
|
47,745
|
|
|
$
|
51,003
|
|
Provision for credit losses
|
—
|
|
|
1,000
|
|
|
1,000
|
|
|||
Noninterest income
|
60,984
|
|
|
8,405
|
|
|
69,389
|
|
|||
Noninterest expense
|
71,279
|
|
|
39,286
|
|
|
110,565
|
|
|||
(Loss) income before income taxes
|
(7,037
|
)
|
|
15,864
|
|
|
8,827
|
|
|||
Income tax (benefit) expense
|
(2,236
|
)
|
|
3,964
|
|
|
1,728
|
|
|||
Net (loss) income
|
$
|
(4,801
|
)
|
|
$
|
11,900
|
|
|
$
|
7,099
|
|
Total assets
|
$
|
805,777
|
|
|
$
|
6,358,100
|
|
|
$
|
7,163,877
|
|
|
At or for the Three Months Ended June 30, 2017
|
||||||||||
(in thousands)
|
Mortgage
Banking
|
|
Commercial and
Consumer Banking
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Condensed income statement:
|
|
|
|
|
|
||||||
Net interest income (1)
|
$
|
4,420
|
|
|
$
|
42,448
|
|
|
$
|
46,868
|
|
Provision for credit losses
|
—
|
|
|
500
|
|
|
500
|
|
|||
Noninterest income
|
72,732
|
|
|
8,276
|
|
|
81,008
|
|
|||
Noninterest expense
|
74,613
|
|
|
36,631
|
|
|
111,244
|
|
|||
Income before income taxes
|
2,539
|
|
|
13,593
|
|
|
16,132
|
|
|||
Income tax expense
|
776
|
|
|
4,147
|
|
|
4,923
|
|
|||
Net income
|
$
|
1,763
|
|
|
$
|
9,446
|
|
|
$
|
11,209
|
|
Total assets
|
$
|
992,668
|
|
|
$
|
5,593,889
|
|
|
$
|
6,586,557
|
|
|
At or for the Six Months Ended June 30, 2018
|
||||||||||
(in thousands)
|
Mortgage
Banking
|
|
Commercial and
Consumer Banking
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Condensed income statement:
|
|
|
|
|
|
||||||
Net interest income (1)
|
$
|
6,270
|
|
|
$
|
93,193
|
|
|
$
|
99,463
|
|
Provision for credit losses
|
—
|
|
|
1,750
|
|
|
1,750
|
|
|||
Noninterest income
|
114,719
|
|
|
15,501
|
|
|
130,220
|
|
|||
Noninterest expense
|
133,776
|
|
|
77,558
|
|
|
211,334
|
|
|||
(Loss) income before income taxes
|
(12,787
|
)
|
|
29,386
|
|
|
16,599
|
|
|||
Income tax (benefit) expense
|
(3,646
|
)
|
|
7,280
|
|
|
3,634
|
|
|||
Net (loss) income
|
$
|
(9,141
|
)
|
|
$
|
22,106
|
|
|
$
|
12,965
|
|
Total assets
|
$
|
805,777
|
|
|
$
|
6,358,100
|
|
|
$
|
7,163,877
|
|
|
At or for the Six Months Ended June 30, 2017
|
||||||||||
(in thousands)
|
Mortgage
Banking
|
|
Commercial and
Consumer Banking
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Condensed income statement:
|
|
|
|
|
|
||||||
Net interest income (1)
|
$
|
9,167
|
|
|
$
|
83,352
|
|
|
$
|
92,519
|
|
Provision for credit losses
|
—
|
|
|
500
|
|
|
500
|
|
|||
Noninterest income
|
137,768
|
|
|
17,701
|
|
|
155,469
|
|
|||
Noninterest expense
|
145,017
|
|
|
73,101
|
|
|
218,118
|
|
|||
Income before income taxes
|
1,918
|
|
|
27,452
|
|
|
29,370
|
|
|||
Income tax expense
|
464
|
|
|
8,714
|
|
|
9,178
|
|
|||
Net income
|
$
|
1,454
|
|
|
$
|
18,738
|
|
|
$
|
20,192
|
|
Total assets
|
$
|
992,668
|
|
|
$
|
5,593,889
|
|
|
$
|
6,586,557
|
|
(1)
|
Net interest income is the aggregation of interest earned on assets, interest expense charged by treasury to fund the assets, interest paid on liabilities, and interest income provided by treasury for investing the liabilities.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
(17,298
|
)
|
|
$
|
(8,486
|
)
|
|
$
|
(7,122
|
)
|
|
$
|
(10,412
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
(2,412
|
)
|
|
3,431
|
|
|
(12,412
|
)
|
|
5,361
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
(12
|
)
|
|
(358
|
)
|
|
(188
|
)
|
|
(362
|
)
|
||||
Net current-period other comprehensive (loss) income
|
|
(2,424
|
)
|
|
3,073
|
|
|
(12,600
|
)
|
|
4,999
|
|
||||
Ending balance
|
|
$
|
(19,722
|
)
|
|
$
|
(5,413
|
)
|
|
$
|
(19,722
|
)
|
|
$
|
(5,413
|
)
|
Affected Line Item in the Consolidated Statements of Operations
|
|
Amount Reclassified from Accumulated
Other Comprehensive Income (Loss)
|
||||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of investment securities available for sale
|
|
$
|
16
|
|
|
$
|
551
|
|
|
$
|
238
|
|
|
$
|
557
|
|
Income tax expense
|
|
4
|
|
|
193
|
|
|
50
|
|
|
195
|
|
||||
Total, net of tax
|
|
$
|
12
|
|
|
$
|
358
|
|
|
$
|
188
|
|
|
$
|
362
|
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
At and for the three months ended June 30
|
|
Facilities-related costs
|
|
Personnel-related costs
|
|
Total
|
|
Facilities-related costs
|
|
Personnel-related costs
|
|
Total
|
||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
|
$
|
720
|
|
|
$
|
—
|
|
|
$
|
720
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring costs
|
|
6,454
|
|
|
439
|
|
|
6,893
|
|
|
—
|
|
|
104
|
|
|
104
|
|
||||||
Costs paid or otherwise settled
|
|
(2,965
|
)
|
|
—
|
|
|
(2,965
|
)
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
||||||
Ending balance
|
|
$
|
4,209
|
|
|
$
|
439
|
|
|
$
|
4,648
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
71
|
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
At and for the six months ended June 30
|
|
Facilities-related costs
|
|
Personnel-related costs
|
|
Total
|
|
Facilities-related costs
|
|
Personnel-related costs
|
|
Total
|
||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
|
$
|
1,386
|
|
|
$
|
—
|
|
|
$
|
1,386
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring costs
|
|
6,163
|
|
|
439
|
|
|
6,602
|
|
|
—
|
|
|
104
|
|
|
104
|
|
||||||
Costs paid or otherwise settled
|
|
(3,340
|
)
|
|
—
|
|
|
(3,340
|
)
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
||||||
Ending balance
|
|
$
|
4,209
|
|
|
$
|
439
|
|
|
$
|
4,648
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
71
|
|
ITEM 2
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
At or for the Three Months Ended
|
|
At or for the Six Months Ended
|
||||||||||||||||||||||||
(dollars in thousands, except share data)
|
June 30,
2018 |
|
Mar. 31,
2018 |
|
Dec. 31,
2017 |
|
Sept. 30,
2017 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income statement data (for the period ended):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income
|
$
|
51,003
|
|
|
$
|
48,460
|
|
|
$
|
51,079
|
|
|
$
|
50,840
|
|
|
$
|
46,868
|
|
|
$
|
99,463
|
|
|
$
|
92,519
|
|
Provision for credit losses
|
1,000
|
|
|
750
|
|
|
—
|
|
|
250
|
|
|
500
|
|
|
1,750
|
|
|
500
|
|
|||||||
Noninterest income
|
69,389
|
|
|
60,831
|
|
|
72,801
|
|
|
83,884
|
|
|
81,008
|
|
|
130,220
|
|
|
155,469
|
|
|||||||
Noninterest expense
|
110,565
|
|
|
100,769
|
|
|
106,838
|
|
|
114,697
|
|
|
111,244
|
|
|
211,334
|
|
|
218,118
|
|
|||||||
Income before income taxes
|
8,827
|
|
|
7,772
|
|
|
17,042
|
|
|
19,777
|
|
|
16,132
|
|
|
16,599
|
|
|
29,370
|
|
|||||||
Income tax expense (benefit)
|
1,728
|
|
|
1,906
|
|
|
(17,873
|
)
|
|
5,938
|
|
|
4,923
|
|
|
3,634
|
|
|
9,178
|
|
|||||||
Net income
|
$
|
7,099
|
|
|
$
|
5,866
|
|
|
$
|
34,915
|
|
|
$
|
13,839
|
|
|
$
|
11,209
|
|
|
$
|
12,965
|
|
|
$
|
20,192
|
|
Basic income per share
|
$
|
0.26
|
|
|
$
|
0.22
|
|
|
$
|
1.30
|
|
|
$
|
0.51
|
|
|
$
|
0.42
|
|
|
$
|
0.48
|
|
|
$
|
0.75
|
|
Diluted income per share
|
$
|
0.26
|
|
|
$
|
0.22
|
|
|
$
|
1.29
|
|
|
$
|
0.51
|
|
|
$
|
0.41
|
|
|
$
|
0.48
|
|
|
$
|
0.75
|
|
Common shares outstanding
|
26,978,229
|
|
|
26,972,074
|
|
|
26,888,288
|
|
|
26,884,402
|
|
|
26,874,871
|
|
|
26,978,229
|
|
|
26,874,871
|
|
|||||||
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic
|
26,976,892
|
|
|
26,927,464
|
|
|
26,887,611
|
|
|
26,883,392
|
|
|
26,866,230
|
|
|
26,952,178
|
|
|
26,843,813
|
|
|||||||
Diluted
|
27,156,329
|
|
|
27,159,000
|
|
|
27,136,977
|
|
|
27,089,040
|
|
|
27,084,608
|
|
|
27,157,664
|
|
|
27,071,028
|
|
|||||||
Shareholders' equity per share
|
$
|
26.19
|
|
|
$
|
25.99
|
|
|
$
|
26.20
|
|
|
$
|
24.98
|
|
|
$
|
24.40
|
|
|
$
|
26.19
|
|
|
$
|
24.40
|
|
Financial position (at period end):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
$
|
176,218
|
|
|
$
|
66,289
|
|
|
$
|
72,718
|
|
|
$
|
55,050
|
|
|
$
|
54,447
|
|
|
$
|
176,218
|
|
|
$
|
54,447
|
|
Investment securities
|
907,457
|
|
|
915,483
|
|
|
904,304
|
|
|
919,459
|
|
|
936,522
|
|
|
907,457
|
|
|
936,522
|
|
|||||||
Loans held for sale
|
568,514
|
|
|
500,533
|
|
|
610,902
|
|
|
851,126
|
|
|
784,556
|
|
|
568,514
|
|
|
784,556
|
|
|||||||
Loans held for investment, net
|
4,883,310
|
|
|
4,758,261
|
|
|
4,506,466
|
|
|
4,313,225
|
|
|
4,156,424
|
|
|
4,883,310
|
|
|
4,156,424
|
|
|||||||
Loan servicing rights
|
272,205
|
|
|
320,105
|
|
|
284,653
|
|
|
268,072
|
|
|
258,222
|
|
|
272,205
|
|
|
258,222
|
|
|||||||
Other real estate owned
|
752
|
|
|
297
|
|
|
664
|
|
|
3,704
|
|
|
4,597
|
|
|
752
|
|
|
4,597
|
|
|||||||
Total assets
|
7,163,877
|
|
|
6,924,056
|
|
|
6,742,041
|
|
|
6,796,346
|
|
|
6,586,557
|
|
|
7,163,877
|
|
|
6,586,557
|
|
|||||||
Deposits
|
5,120,285
|
|
|
5,048,996
|
|
|
4,760,952
|
|
|
4,670,486
|
|
|
4,747,771
|
|
|
5,120,285
|
|
|
4,747,771
|
|
|||||||
Federal Home Loan Bank advances
|
1,008,613
|
|
|
851,657
|
|
|
979,201
|
|
|
1,135,245
|
|
|
867,290
|
|
|
1,008,613
|
|
|
867,290
|
|
|||||||
Federal funds purchased and securities sold under agreements to repurchase
|
—
|
|
|
25,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Shareholders' equity
|
$
|
706,459
|
|
|
$
|
700,963
|
|
|
$
|
704,380
|
|
|
$
|
671,469
|
|
|
$
|
655,841
|
|
|
$
|
706,459
|
|
|
$
|
655,841
|
|
Financial position (averages):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
$
|
911,678
|
|
|
$
|
915,562
|
|
|
$
|
929,995
|
|
|
$
|
925,545
|
|
|
$
|
1,089,552
|
|
|
$
|
913,609
|
|
|
$
|
1,121,224
|
|
Loans held for investment
|
4,836,644
|
|
|
4,641,980
|
|
|
4,429,777
|
|
|
4,242,795
|
|
|
4,119,825
|
|
|
4,739,850
|
|
|
4,017,748
|
|
|||||||
Total interest-earning assets
|
6,369,673
|
|
|
6,093,430
|
|
|
6,269,600
|
|
|
6,098,054
|
|
|
5,837,917
|
|
|
6,232,315
|
|
|
5,810,143
|
|
|||||||
Total interest-bearing deposits
|
4,046,297
|
|
|
3,834,191
|
|
|
3,581,911
|
|
|
3,622,606
|
|
|
3,652,036
|
|
|
3,940,829
|
|
|
3,574,543
|
|
|||||||
Federal Home Loan Bank advances
|
943,539
|
|
|
858,451
|
|
|
1,264,893
|
|
|
1,034,634
|
|
|
872,019
|
|
|
901,230
|
|
|
923,679
|
|
|||||||
Federal funds purchased and securities sold under agreements to repurchase
|
5,253
|
|
|
7,333
|
|
|
8,828
|
|
|
272
|
|
|
4,804
|
|
|
6,287
|
|
|
2,901
|
|
|||||||
Total interest-bearing liabilities
|
5,121,085
|
|
|
4,825,265
|
|
|
4,980,926
|
|
|
4,783,142
|
|
|
4,654,064
|
|
|
4,973,992
|
|
|
4,626,306
|
|
|||||||
Shareholders’ equity
|
$
|
751,593
|
|
|
$
|
717,742
|
|
|
$
|
701,849
|
|
|
$
|
683,186
|
|
|
$
|
668,377
|
|
|
$
|
734,761
|
|
|
$
|
658,961
|
|
|
At or for the Three Months Ended
|
|
At or for the Six Months Ended
|
||||||||||||||||||||||||
(dollars in thousands, except share data)
|
June 30,
2018 |
|
Mar. 31,
2018 |
|
Dec. 31,
2017 |
|
Sept. 30,
2017 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Financial performance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Return on average shareholders' equity (1)
|
3.78
|
%
|
|
3.27
|
%
|
|
19.90
|
%
|
|
8.10
|
%
|
|
6.71
|
%
|
|
3.53
|
%
|
|
6.13
|
%
|
|||||||
Return on average assets
|
0.40
|
%
|
|
0.35
|
%
|
|
2.03
|
%
|
|
0.83
|
%
|
|
0.70
|
%
|
|
0.37
|
%
|
|
0.63
|
%
|
|||||||
Net interest margin (2)
|
3.25
|
%
|
|
3.25
|
%
|
|
3.33
|
%
|
|
3.40
|
%
|
|
3.29
|
%
|
|
3.25
|
%
|
|
3.26
|
%
|
|||||||
Efficiency ratio (3)
|
91.84
|
%
|
|
92.20
|
%
|
|
86.24
|
%
|
|
85.13
|
%
|
|
86.99
|
%
|
|
92.01
|
%
|
|
87.96
|
%
|
|||||||
Asset quality:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for credit losses
|
$
|
40,982
|
|
|
$
|
40,446
|
|
|
$
|
39,116
|
|
|
$
|
38,195
|
|
|
$
|
37,470
|
|
|
$
|
40,982
|
|
|
$
|
37,470
|
|
Allowance for loan losses/total loans (4)
|
0.80
|
%
|
|
0.81
|
%
|
|
0.83
|
%
|
|
0.85
|
%
|
|
0.86
|
%
|
|
0.80
|
%
|
|
0.86
|
%
|
|||||||
Allowance for loan losses/nonaccrual loans
|
409.97
|
%
|
|
359.32
|
%
|
|
251.63
|
%
|
|
245.02
|
%
|
|
233.50
|
%
|
|
409.97
|
%
|
|
233.50
|
%
|
|||||||
Total nonaccrual loans (5)(6)
|
$
|
9,630
|
|
|
$
|
10,879
|
|
|
$
|
15,041
|
|
|
$
|
15,123
|
|
|
$
|
15,476
|
|
|
$
|
9,630
|
|
|
$
|
15,476
|
|
Nonaccrual loans/total loans
|
0.20
|
%
|
|
0.23
|
%
|
|
0.33
|
%
|
|
0.35
|
%
|
|
0.37
|
%
|
|
0.20
|
%
|
|
0.37
|
%
|
|||||||
Other real estate owned
|
$
|
751
|
|
|
$
|
297
|
|
|
$
|
664
|
|
|
$
|
3,704
|
|
|
$
|
4,597
|
|
|
$
|
751
|
|
|
$
|
4,597
|
|
Total nonperforming assets (6)
|
$
|
10,381
|
|
|
$
|
11,176
|
|
|
$
|
15,705
|
|
|
$
|
18,827
|
|
|
$
|
20,073
|
|
|
$
|
10,381
|
|
|
$
|
20,073
|
|
Nonperforming assets/total assets
|
0.14
|
%
|
|
0.16
|
%
|
|
0.23
|
%
|
|
0.28
|
%
|
|
0.30
|
%
|
|
0.14
|
%
|
|
0.30
|
%
|
|||||||
Net (recoveries) charge-offs
|
$
|
464
|
|
|
$
|
(580
|
)
|
|
$
|
(921
|
)
|
|
$
|
(475
|
)
|
|
$
|
(928
|
)
|
|
$
|
(116
|
)
|
|
$
|
(1,706
|
)
|
Regulatory capital ratios for the Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Tier 1 leverage capital (to average assets)
|
9.72
|
%
|
|
9.58
|
%
|
|
9.67
|
%
|
|
9.86
|
%
|
|
10.13
|
%
|
|
9.72
|
%
|
|
10.13
|
%
|
|||||||
Common equity tier 1 risk-based capital (to risk-weighted assets)
|
12.69
|
%
|
|
12.30
|
%
|
|
13.22
|
%
|
|
12.88
|
%
|
|
13.23
|
%
|
|
12.69
|
%
|
|
13.23
|
%
|
|||||||
Tier 1 risk-based capital (to risk-weighted assets)
|
12.69
|
%
|
|
12.30
|
%
|
|
13.22
|
%
|
|
12.88
|
%
|
|
13.23
|
%
|
|
12.69
|
%
|
|
13.23
|
%
|
|||||||
Total risk-based capital (to risk-weighted assets)
|
13.52
|
%
|
|
13.09
|
%
|
|
14.02
|
%
|
|
13.65
|
%
|
|
14.01
|
%
|
|
13.52
|
%
|
|
14.01
|
%
|
|||||||
Regulatory capital ratios for the Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tier 1 leverage capital (to average assets)
|
9.18
|
%
|
|
9.08
|
%
|
|
9.12
|
%
|
|
9.33
|
%
|
|
9.55
|
%
|
|
9.18
|
%
|
|
9.55
|
%
|
|||||||
Tier 1 common equity risk-based capital (to risk-weighted assets)
|
10.48
|
%
|
|
9.26
|
%
|
|
9.86
|
%
|
|
9.77
|
%
|
|
10.01
|
%
|
|
10.48
|
%
|
|
10.01
|
%
|
|||||||
Tier 1 risk-based capital (to risk-weighted assets)
|
11.56
|
%
|
|
10.28
|
%
|
|
10.92
|
%
|
|
10.81
|
%
|
|
11.10
|
%
|
|
11.56
|
%
|
|
11.10
|
%
|
|||||||
Total risk-based capital (to risk-weighted assets)
|
12.38
|
%
|
|
10.97
|
%
|
|
11.61
|
%
|
|
11.48
|
%
|
|
11.79
|
%
|
|
12.38
|
%
|
|
11.79
|
%
|
(1)
|
Net earnings available to common shareholders divided by average shareholders’ equity.
|
(2)
|
Net interest income divided by total average interest-earning assets on a tax equivalent basis.
|
(3)
|
Noninterest expense divided by total revenue (net interest income and noninterest income).
|
(4)
|
Includes loans acquired with bank acquisitions. Excluding acquired loans, allowance for loan losses /total loans was 0.85%, 0.87%, 0.90%, 0.93% and 0.95% at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively.
|
(5)
|
Generally, loans are placed on nonaccrual status when they are 90 or more days past due, unless payment is insured by the FHA or guaranteed by the VA.
|
(6)
|
Includes $1.4 million, $1.7 million, $1.9 million, $1.4 million and $732 thousand of nonperforming loans guaranteed by the SBA at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively.
|
|
At or for the Three Months Ended
|
||||||||||||||||||
(in thousands)
|
June 30,
2018 |
|
Mar. 31,
2018 |
|
Dec. 31,
2017 |
|
Sept. 30,
2017 |
|
June 30,
2017 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans serviced for others:
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
19,073,176
|
|
|
$
|
23,219,576
|
|
|
$
|
22,631,147
|
|
|
$
|
21,892,253
|
|
|
$
|
21,104,608
|
|
Multifamily DUS® (1)
|
1,357,929
|
|
|
1,323,937
|
|
|
1,311,399
|
|
|
1,213,459
|
|
|
1,135,722
|
|
|||||
Other
|
82,083
|
|
|
81,436
|
|
|
79,797
|
|
|
78,674
|
|
|
75,336
|
|
|||||
Total loans serviced for others
|
$
|
20,513,188
|
|
|
$
|
24,624,949
|
|
|
$
|
24,022,343
|
|
|
$
|
23,184,386
|
|
|
$
|
22,315,666
|
|
1 DUS® is a registered trademark of Fannie Mae
|
65
|
|
|
|
At or for the Three Months Ended June 30,
|
|
Percent Change
|
|
At or for the Six Months Ended June 30,
|
|
Percent Change
|
||||||||||||||
(in thousands, except per share data and ratios)
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected statement of operations data
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total net revenue (1)
|
|
$
|
120,392
|
|
|
$
|
127,876
|
|
|
(6
|
)%
|
|
$
|
229,683
|
|
|
$
|
247,988
|
|
|
(7
|
)%
|
Total noninterest expense
|
|
110,565
|
|
|
111,244
|
|
|
(1
|
)%
|
|
211,334
|
|
|
218,118
|
|
|
(3
|
)%
|
||||
Provision for credit losses
|
|
1,000
|
|
|
500
|
|
|
100
|
%
|
|
1,750
|
|
|
500
|
|
|
250
|
%
|
||||
Income tax expense
|
|
1,728
|
|
|
4,923
|
|
|
(65
|
)%
|
|
3,634
|
|
|
9,178
|
|
|
(60
|
)%
|
||||
Net income
|
|
$
|
7,099
|
|
|
$
|
11,209
|
|
|
(37
|
)%
|
|
$
|
12,965
|
|
|
$
|
20,192
|
|
|
(36
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial performance
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted income per share
|
|
$
|
0.26
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.48
|
|
|
$
|
0.75
|
|
|
|
||
Return on average common shareholders’ equity
|
|
3.78
|
%
|
|
6.71
|
%
|
|
|
|
3.53
|
%
|
|
6.13
|
%
|
|
|
||||||
Return on average assets
|
|
0.40
|
%
|
|
0.70
|
%
|
|
|
|
0.37
|
%
|
|
0.63
|
%
|
|
|
||||||
Net interest margin
|
|
3.25
|
%
|
|
3.29
|
%
|
|
|
|
3.25
|
%
|
|
3.26
|
%
|
|
|
(1)
|
Total net revenue is net interest income and noninterest income.
|
|
|
At June 30, 2018
|
||||
|
|
HomeStreet, Inc.
|
|
HomeStreet Bank
|
||
(in thousands)
|
|
Ratio
|
|
Ratio
|
||
|
|
|
|
|
||
|
|
|
|
|
||
Tier 1 leverage capital (to average assets)
|
|
9.18
|
%
|
|
9.72
|
%
|
Common equity Tier 1 risk-based capital (to risk-weighted assets)
|
|
10.48
|
%
|
|
12.69
|
%
|
Tier 1 risk-based capital (to risk-weighted assets)
|
|
11.56
|
%
|
|
12.69
|
%
|
Total risk-based capital (to risk-weighted assets)
|
|
12.38
|
%
|
|
13.52
|
%
|
|
|
At December 31, 2017
|
||||
|
|
HomeStreet, Inc.
|
|
HomeStreet Bank
|
||
(in thousands)
|
|
Ratio
|
|
Ratio
|
||
|
|
|
|
|
||
|
|
|
|
|
||
Tier 1 leverage capital (to average assets)
|
|
9.12
|
%
|
|
9.67
|
%
|
Common equity Tier 1 risk-based capital (to risk-weighted assets)
|
|
9.86
|
%
|
|
13.22
|
%
|
Tier 1 risk-based capital (to risk-weighted assets)
|
|
10.92
|
%
|
|
13.22
|
%
|
Total risk-based capital (to risk-weighted assets)
|
|
11.61
|
%
|
|
14.02
|
%
|
•
|
Allowance for Loan and Lease Losses
|
•
|
Fair Value of Financial Instruments
|
•
|
Single Family Mortgage Servicing Rights ("MSRs")
|
•
|
Other Real Estate Owned ("OREO")
|
•
|
Income Taxes
|
•
|
Business Combinations
|
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||
(in thousands)
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets: (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
87,898
|
|
|
$
|
252
|
|
|
1.15
|
%
|
|
$
|
87,249
|
|
|
$
|
125
|
|
|
0.57
|
%
|
Investment securities
|
911,678
|
|
|
6,029
|
|
|
2.64
|
%
|
|
1,089,552
|
|
|
6,466
|
|
|
2.38
|
%
|
||||
Loans held for sale
|
533,453
|
|
|
6,081
|
|
|
4.56
|
%
|
|
541,291
|
|
|
5,586
|
|
|
4.13
|
%
|
||||
Loans held for investment
|
4,836,644
|
|
|
55,537
|
|
|
4.59
|
%
|
|
4,119,825
|
|
|
45,701
|
|
|
4.43
|
%
|
||||
Total interest-earning assets
|
6,369,673
|
|
|
67,899
|
|
|
4.26
|
%
|
|
5,837,917
|
|
|
57,878
|
|
|
3.96
|
%
|
||||
Noninterest-earning assets (2)
|
711,206
|
|
|
|
|
|
|
587,211
|
|
|
|
|
|
||||||||
Total assets
|
$
|
7,080,879
|
|
|
|
|
|
|
$
|
6,425,128
|
|
|
|
|
|
||||||
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand accounts
|
$
|
445,128
|
|
|
$
|
430
|
|
|
0.39
|
%
|
|
$
|
494,997
|
|
|
$
|
502
|
|
|
0.41
|
%
|
Savings accounts
|
292,156
|
|
|
217
|
|
|
0.30
|
%
|
|
309,844
|
|
|
256
|
|
|
0.33
|
%
|
||||
Money market accounts
|
1,926,662
|
|
|
4,064
|
|
|
0.85
|
%
|
|
1,551,328
|
|
|
1,917
|
|
|
0.50
|
%
|
||||
Certificate accounts
|
1,382,351
|
|
|
4,999
|
|
|
1.45
|
%
|
|
1,295,867
|
|
|
3,303
|
|
|
1.03
|
%
|
||||
Total interest-bearing deposits
|
4,046,297
|
|
|
9,710
|
|
|
0.96
|
%
|
|
3,652,036
|
|
|
5,978
|
|
|
0.66
|
%
|
||||
Federal Home Loan Bank advances
|
943,539
|
|
|
4,782
|
|
|
2.03
|
%
|
|
872,019
|
|
|
2,368
|
|
|
1.09
|
%
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
5,253
|
|
|
24
|
|
|
1.84
|
%
|
|
4,804
|
|
|
14
|
|
|
1.20
|
%
|
||||
Other borrowings
|
659
|
|
|
7
|
|
|
4.40
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Long-term debt
|
125,337
|
|
|
1,662
|
|
|
5.32
|
%
|
|
125,205
|
|
|
1,514
|
|
|
4.86
|
%
|
||||
Total interest-bearing liabilities
|
5,121,085
|
|
|
16,185
|
|
|
1.27
|
%
|
|
4,654,064
|
|
|
9,874
|
|
|
0.85
|
%
|
||||
Noninterest-bearing liabilities
|
1,208,201
|
|
|
|
|
|
|
1,102,687
|
|
|
|
|
|
||||||||
Total liabilities
|
6,329,286
|
|
|
|
|
|
|
5,756,751
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
751,593
|
|
|
|
|
|
|
668,377
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
7,080,879
|
|
|
|
|
|
|
$
|
6,425,128
|
|
|
|
|
|
||||||
Net interest income (3)
|
|
|
$
|
51,714
|
|
|
|
|
|
|
$
|
48,004
|
|
|
|
||||||
Net interest spread
|
|
|
|
|
2.99
|
%
|
|
|
|
|
|
3.11
|
%
|
||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
0.26
|
%
|
|
|
|
|
|
0.18
|
%
|
||||||||
Net interest margin
|
|
|
|
|
3.25
|
%
|
|
|
|
|
|
3.29
|
%
|
(1)
|
The average balances of nonaccrual assets and related income, if any, are included in their respective categories.
|
(2)
|
Includes loan balances that have been foreclosed and are now reclassified to OREO.
|
(3)
|
Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $711 thousand and $1.1 million for the quarter ended June 30, 2018 and 2017, respectively. The estimated federal statutory tax rate was 21% and 35%, respectively, for the periods presented.
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||
(in thousands)
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets: (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
83,487
|
|
|
$
|
432
|
|
|
1.04
|
%
|
|
$
|
89,224
|
|
|
$
|
261
|
|
|
0.59
|
%
|
Investment securities
|
913,609
|
|
|
12,115
|
|
|
2.65
|
%
|
|
1,121,224
|
|
|
13,065
|
|
|
2.33
|
%
|
||||
Loans held for sale
|
495,369
|
|
|
10,734
|
|
|
4.33
|
%
|
|
581,947
|
|
|
11,673
|
|
|
4.02
|
%
|
||||
Loans held for investment
|
4,739,850
|
|
|
106,995
|
|
|
4.53
|
%
|
|
4,017,748
|
|
|
89,187
|
|
|
4.44
|
%
|
||||
Total interest-earning assets
|
6,232,315
|
|
|
130,276
|
|
|
4.19
|
%
|
|
5,810,143
|
|
|
114,186
|
|
|
3.93
|
%
|
||||
Noninterest-earning assets (2)
|
684,164
|
|
|
|
|
|
|
574,654
|
|
|
|
|
|
||||||||
Total assets
|
$
|
6,916,479
|
|
|
|
|
|
|
$
|
6,384,797
|
|
|
|
|
|
||||||
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand accounts
|
$
|
443,256
|
|
|
$
|
870
|
|
|
0.39
|
%
|
|
$
|
472,920
|
|
|
$
|
980
|
|
|
0.42
|
%
|
Savings accounts
|
292,629
|
|
|
448
|
|
|
0.31
|
%
|
|
307,095
|
|
|
508
|
|
|
0.33
|
%
|
||||
Money market accounts
|
1,893,852
|
|
|
7,511
|
|
|
0.79
|
%
|
|
1,570,406
|
|
|
4,128
|
|
|
0.53
|
%
|
||||
Certificate accounts
|
1,311,092
|
|
|
8,843
|
|
|
1.35
|
%
|
|
1,224,122
|
|
|
6,104
|
|
|
1.00
|
%
|
||||
Total interest-bearing deposits
|
3,940,829
|
|
|
17,672
|
|
|
0.90
|
%
|
|
3,574,543
|
|
|
11,720
|
|
|
0.66
|
%
|
||||
Federal Home Loan Bank advances
|
901,230
|
|
|
8,418
|
|
|
1.87
|
%
|
|
923,679
|
|
|
4,770
|
|
|
1.04
|
%
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
6,287
|
|
|
56
|
|
|
1.80
|
%
|
|
2,901
|
|
|
16
|
|
|
1.03
|
%
|
||||
Other borrowings
|
332
|
|
|
8
|
|
|
2.21
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||
Long-term debt
|
125,314
|
|
|
3,246
|
|
|
5.20
|
%
|
|
125,183
|
|
|
2,992
|
|
|
4.81
|
%
|
||||
Total interest-bearing liabilities
|
4,973,992
|
|
|
29,400
|
|
|
1.18
|
%
|
|
4,626,306
|
|
|
19,498
|
|
|
0.85
|
%
|
||||
Noninterest-bearing liabilities
|
1,207,726
|
|
|
|
|
|
|
1,099,530
|
|
|
|
|
|
||||||||
Total liabilities
|
6,181,718
|
|
|
|
|
|
|
5,725,836
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
734,761
|
|
|
|
|
|
|
658,961
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
6,916,479
|
|
|
|
|
|
|
$
|
6,384,797
|
|
|
|
|
|
||||||
Net interest income (3)
|
|
|
$
|
100,876
|
|
|
|
|
|
|
$
|
94,688
|
|
|
|
||||||
Net interest spread
|
|
|
|
|
3.01
|
%
|
|
|
|
|
|
3.08
|
%
|
||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
0.24
|
%
|
|
|
|
|
|
0.18
|
%
|
||||||||
Net interest margin
|
|
|
|
|
3.25
|
%
|
|
|
|
|
|
3.26
|
%
|
(1)
|
The average balances of nonaccrual assets and related income, if any, are included in their respective categories.
|
(2)
|
Includes loan balances that have been foreclosed and are now reclassified to OREO.
|
(3)
|
Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $1.4 million and $2.2 million for the six months ended June 30, 2018 and 2017 respectively. The estimated federal statutory tax rate was 21% and 35%, respectively, for the periods presented.
|
|
Three Months Ended June 30,
|
|
Dollar
Change
|
|
Percent
Change
|
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gain on loan origination and sale activities (1)
|
$
|
57,049
|
|
|
$
|
65,908
|
|
|
$
|
(8,859
|
)
|
|
(13
|
)%
|
|
$
|
105,368
|
|
|
$
|
126,189
|
|
|
$
|
(20,821
|
)
|
|
(16
|
)%
|
Loan servicing income
|
7,032
|
|
|
8,764
|
|
|
(1,732
|
)
|
|
(20
|
)
|
|
14,606
|
|
|
18,003
|
|
|
(3,397
|
)
|
|
(19
|
)
|
||||||
Income from WMS Series LLC
|
322
|
|
|
406
|
|
|
(84
|
)
|
|
(21
|
)
|
|
311
|
|
|
591
|
|
|
(280
|
)
|
|
(47
|
)
|
||||||
Depositor and other retail banking fees
|
1,953
|
|
|
1,811
|
|
|
142
|
|
|
8
|
|
|
3,898
|
|
|
3,467
|
|
|
431
|
|
|
12
|
|
||||||
Insurance agency commissions
|
527
|
|
|
501
|
|
|
26
|
|
|
5
|
|
|
1,070
|
|
|
897
|
|
|
173
|
|
|
19
|
|
||||||
Gain on sale of investment securities available for sale
|
16
|
|
|
551
|
|
|
(535
|
)
|
|
(97
|
)
|
|
238
|
|
|
557
|
|
|
(319
|
)
|
|
(57
|
)
|
||||||
Other
|
2,490
|
|
|
3,067
|
|
|
(577
|
)
|
|
(19
|
)
|
|
4,729
|
|
|
5,765
|
|
|
(1,036
|
)
|
|
(18
|
)
|
||||||
Total noninterest income
|
$
|
69,389
|
|
|
$
|
81,008
|
|
|
$
|
(11,619
|
)
|
|
(14
|
)%
|
|
$
|
130,220
|
|
|
$
|
155,469
|
|
|
$
|
(25,249
|
)
|
|
(16
|
)%
|
(1)
|
Single family, multifamily and other commercial loan banking activities.
|
|
Three Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Single family held for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Servicing value and secondary market gains(1)
|
$
|
48,182
|
|
|
$
|
57,353
|
|
|
$
|
(9,171
|
)
|
|
(16
|
)%
|
|
$
|
89,609
|
|
|
$
|
107,891
|
|
|
$
|
(18,282
|
)
|
|
(17
|
)%
|
Loan origination and administrative fees
|
6,158
|
|
|
6,823
|
|
|
(665
|
)
|
|
(10
|
)
|
|
11,603
|
|
|
12,604
|
|
|
(1,001
|
)
|
|
(8
|
)
|
||||||
Total gain on single family held for sale
|
54,340
|
|
|
64,176
|
|
|
(9,836
|
)
|
|
(15
|
)
|
|
101,212
|
|
|
120,495
|
|
|
(19,283
|
)
|
|
(16
|
)
|
||||||
Multifamily DUS®
|
1,613
|
|
|
1,273
|
|
|
340
|
|
|
27
|
|
|
2,759
|
|
|
4,633
|
|
|
(1,874
|
)
|
|
(40
|
)
|
||||||
SBA
|
385
|
|
|
316
|
|
|
69
|
|
|
22
|
|
|
686
|
|
|
918
|
|
|
(232
|
)
|
|
(25
|
)
|
||||||
CRE Non-DUS®
|
800
|
|
|
143
|
|
|
657
|
|
|
459
|
|
|
800
|
|
|
143
|
|
|
657
|
|
|
459
|
|
||||||
Single Family
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|
NM
|
|
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|
NM
|
|
||||||
Gain on loan origination and sale activities
|
$
|
57,049
|
|
|
$
|
65,908
|
|
|
$
|
(8,859
|
)
|
|
(13
|
)%
|
|
$
|
105,368
|
|
|
$
|
126,189
|
|
|
$
|
(20,821
|
)
|
|
(16
|
)%
|
NM = not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Comprised of gains and losses on interest rate lock commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and changes in the Company's repurchase liability for loans that have been sold.
|
|
Three Months Ended June 30,
|
|
Dollar
Change
|
|
Percent
Change
|
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Single family mortgage interest rate lock commitments
|
$
|
1,679,748
|
|
|
$
|
1,950,427
|
|
|
$
|
(270,679
|
)
|
|
(14
|
)%
|
|
$
|
3,251,723
|
|
|
$
|
3,573,049
|
|
|
$
|
(321,326
|
)
|
|
(9
|
)%
|
Single family mortgage closed loan volume (1)
|
1,739,887
|
|
|
2,011,127
|
|
|
(271,240
|
)
|
|
(13
|
)%
|
|
3,192,285
|
|
|
3,632,180
|
|
|
(439,895
|
)
|
|
(12
|
)%
|
(1)
|
Includes loans originated by WMS Series LLC and purchased by HomeStreet Bank.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Effect of changes to the mortgage repurchase liability recorded in gain on loan origination and sale activities:
|
|
|
|
|
|
|
|
||||||||
New loan sales (1)
|
$
|
308
|
|
|
$
|
592
|
|
|
$
|
555
|
|
|
$
|
1,359
|
|
Other changes in estimated repurchase losses(2)
|
(313
|
)
|
|
(264
|
)
|
|
50
|
|
|
(1,391
|
)
|
||||
|
$
|
(5
|
)
|
|
$
|
328
|
|
|
$
|
605
|
|
|
$
|
(32
|
)
|
(1)
|
Represents the estimated fair value of the repurchase or indemnity obligation recognized as a reduction of proceeds on new loan sales.
|
(2)
|
Represents changes in estimated probable future repurchase losses on previously sold loans.
|
(1)
|
Represents changes due to collection/realization of expected cash flows and curtailments.
|
(2)
|
Principally reflects changes in market inputs, which include current market interest rates and prepayment model updates, both of which
|
(3)
|
Includes pre-tax income of $573 thousand, net of transaction costs and prepayment reserves, resulting from the sale of single family MSRs during the three and six months ended June 30, 2018.
|
|
Three Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Monthly maintenance and deposit-related fees
|
$
|
787
|
|
|
$
|
758
|
|
|
$
|
29
|
|
|
4
|
%
|
|
$
|
1,598
|
|
|
$
|
1,460
|
|
|
$
|
138
|
|
|
9
|
%
|
Debit Card/ATM fees
|
1,098
|
|
|
1,014
|
|
|
84
|
|
|
8
|
|
|
2,166
|
|
|
1,911
|
|
|
255
|
|
|
13
|
|
||||||
Other fees
|
68
|
|
|
39
|
|
|
29
|
|
|
74
|
|
|
134
|
|
|
96
|
|
|
38
|
|
|
40
|
|
||||||
Total depositor and other retail banking fees
|
$
|
1,953
|
|
|
$
|
1,811
|
|
|
$
|
142
|
|
|
8
|
%
|
|
$
|
3,898
|
|
|
$
|
3,467
|
|
|
$
|
431
|
|
|
12
|
%
|
|
Three Months Ended June 30,
|
|
Dollar
Change
|
|
Percent
Change
|
|
Six Months Ended June 30,
|
|
Dollar
Change
|
|
Percent
Change
|
||||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Salaries and related costs
|
$
|
69,127
|
|
|
$
|
76,390
|
|
|
$
|
(7,263
|
)
|
|
(10
|
)%
|
|
$
|
135,818
|
|
|
$
|
147,698
|
|
|
$
|
(11,880
|
)
|
|
(8
|
)%
|
||
General and administrative
|
14,707
|
|
|
15,872
|
|
|
(1,165
|
)
|
|
(7
|
)
|
|
29,291
|
|
|
33,000
|
|
|
(3,709
|
)
|
|
(11
|
)
|
||||||||
Amortization of core deposit intangibles
|
407
|
|
|
493
|
|
|
(86
|
)
|
|
(17
|
)
|
|
813
|
|
|
1,007
|
|
|
(194
|
)
|
|
(19
|
)
|
||||||||
Legal
|
839
|
|
|
150
|
|
|
689
|
|
|
459
|
|
|
1,569
|
|
|
310
|
|
|
1,259
|
|
|
406
|
|
||||||||
Consulting
|
758
|
|
|
771
|
|
|
(13
|
)
|
|
(2
|
)
|
|
1,635
|
|
|
1,829
|
|
|
(194
|
)
|
|
(11
|
)
|
||||||||
Federal Deposit Insurance Corporation assessments
|
1,079
|
|
|
697
|
|
|
382
|
|
|
55
|
|
|
2,008
|
|
|
1,521
|
|
|
487
|
|
|
32
|
|
||||||||
Occupancy
|
14,953
|
|
(1
|
)
|
8,880
|
|
|
6,073
|
|
|
68
|
|
|
23,133
|
|
(1
|
)
|
17,089
|
|
|
6,044
|
|
|
35
|
|
||||||
Information services
|
8,693
|
|
|
8,172
|
|
|
521
|
|
|
6
|
|
|
17,158
|
|
|
15,820
|
|
|
1,338
|
|
|
8
|
|
||||||||
Net cost (benefit) of operation and sale of other real estate owned
|
2
|
|
|
(181
|
)
|
|
183
|
|
|
(101
|
)
|
|
(91
|
)
|
|
(156
|
)
|
|
65
|
|
|
(42
|
)
|
||||||||
Total noninterest expense
|
$
|
110,565
|
|
|
$
|
111,244
|
|
|
$
|
(679
|
)
|
|
(1
|
)%
|
|
$
|
211,334
|
|
|
$
|
218,118
|
|
|
$
|
(6,784
|
)
|
|
(3
|
)%
|
|
|
(1)
|
Includes approximately $6.4 million of pre-tax charges related to the Mortgage Banking restructuring activity that occurred in the second quarter of 2018.
|
|
At June 30, 2018
|
|
At December 31, 2017
|
||||||||||
(in thousands)
|
Fair Value
|
|
Percent
|
|
Fair Value
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||
Residential
|
$
|
115,848
|
|
|
14
|
%
|
|
$
|
130,090
|
|
|
15
|
%
|
Commercial
|
30,354
|
|
|
4
|
|
|
23,694
|
|
|
3
|
|
||
Municipal bonds
|
361,799
|
|
|
44
|
|
|
388,452
|
|
|
46
|
|
||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||
Residential
|
168,519
|
|
|
20
|
|
|
160,424
|
|
|
19
|
|
||
Commercial
|
111,623
|
|
|
13
|
|
|
98,569
|
|
|
12
|
|
||
Corporate debt securities
|
21,478
|
|
|
3
|
|
|
24,737
|
|
|
3
|
|
||
U.S. Treasury securities
|
10,438
|
|
|
1
|
|
|
10,652
|
|
|
1
|
|
||
Agency debentures
|
9,363
|
|
|
1
|
|
|
9,650
|
|
|
1
|
|
||
Total investment securities available for sale
|
$
|
829,422
|
|
|
100
|
%
|
|
$
|
846,268
|
|
|
100
|
%
|
|
At June 30, 2018
|
|
At December 31, 2017
|
||||||||||
(in thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
1,416,072
|
|
|
29
|
%
|
|
$
|
1,381,366
|
|
|
30
|
%
|
Home equity and other
|
513,016
|
|
|
10
|
|
|
453,489
|
|
|
10
|
|
||
|
1,929,088
|
|
|
39
|
|
|
1,834,855
|
|
|
40
|
|
||
Commercial real estate loans:
|
|
|
|
|
|
|
|
||||||
Non-owner occupied commercial real estate
|
640,984
|
|
|
13
|
|
|
622,782
|
|
|
14
|
|
||
Multifamily
|
836,260
|
|
|
17
|
|
|
728,037
|
|
|
16
|
|
||
Construction/ land development
|
778,094
|
|
|
16
|
|
|
687,631
|
|
|
15
|
|
||
|
2,255,338
|
|
|
46
|
|
|
2,038,450
|
|
|
45
|
|
||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
400,149
|
|
|
8
|
|
|
391,613
|
|
|
9
|
|
||
Commercial business
|
319,038
|
|
|
7
|
|
|
264,709
|
|
|
6
|
|
||
|
719,187
|
|
|
15
|
|
|
656,322
|
|
|
15
|
|
||
Total loans before allowance, net deferred loan fees and costs
|
4,903,613
|
|
|
100
|
%
|
|
4,529,627
|
|
|
100
|
%
|
||
Net deferred loan fees and costs
|
19,177
|
|
|
|
|
14,686
|
|
|
|
||||
|
4,922,790
|
|
|
|
|
4,544,313
|
|
|
|
||||
Allowance for loan losses
|
(39,480
|
)
|
|
|
|
(37,847
|
)
|
|
|
||||
|
$
|
4,883,310
|
|
|
|
|
$
|
4,506,466
|
|
|
|
(1)
|
Includes $4.2 million and $5.5 million at June 30, 2018 and December 31, 2017, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated statements of operations.
|
(in thousands)
|
|
At June 30, 2018
|
|
At December 31, 2017
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing accounts - checking and savings
|
|
$
|
627,893
|
|
|
12
|
%
|
|
$
|
579,504
|
|
|
12
|
%
|
Interest-bearing transaction and savings deposits:
|
|
|
|
|
|
|
|
|
||||||
NOW accounts
|
|
486,104
|
|
|
9
|
|
|
461,349
|
|
|
10
|
|
||
Statement savings accounts due on demand
|
|
283,969
|
|
|
6
|
|
|
293,858
|
|
|
6
|
|
||
Money market accounts due on demand
|
|
1,932,340
|
|
|
38
|
|
|
1,834,154
|
|
|
39
|
|
||
Total interest-bearing transaction and savings deposits
|
|
2,702,413
|
|
|
53
|
|
|
2,589,361
|
|
|
55
|
|
||
Total transaction and savings deposits
|
|
3,330,306
|
|
|
65
|
|
|
3,168,865
|
|
|
67
|
|
||
Certificates of deposit
|
|
1,396,082
|
|
|
27
|
|
|
1,190,689
|
|
|
25
|
|
||
Noninterest-bearing accounts - other
|
|
393,897
|
|
|
8
|
|
|
401,398
|
|
|
8
|
|
||
Total deposits
|
|
$
|
5,120,285
|
|
|
100
|
%
|
|
$
|
4,760,952
|
|
|
100
|
%
|
|
At or For the Three Months Ended June 30,
|
|
At or For the Six Months Ended June 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
|
|
|
|
|
|
|
|
||||
Return on assets (1)
|
0.40
|
%
|
|
0.70
|
%
|
|
0.37
|
%
|
|
0.63
|
%
|
Return on equity (2)
|
3.78
|
%
|
|
6.71
|
%
|
|
3.53
|
%
|
|
6.13
|
%
|
Equity to assets ratio (3)
|
10.61
|
%
|
|
10.40
|
%
|
|
10.62
|
%
|
|
10.32
|
%
|
(1)
|
Net income divided by average total assets.
|
(2)
|
Net earnings available to common shareholders divided by average common shareholders’ equity.
|
(3)
|
Average equity divided by average total assets.
|
|
Three Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income
|
$
|
47,745
|
|
|
$
|
42,448
|
|
|
$
|
5,297
|
|
|
12
|
%
|
|
$
|
93,193
|
|
|
$
|
83,352
|
|
|
$
|
9,841
|
|
|
12
|
%
|
Provision for credit losses
|
1,000
|
|
|
500
|
|
|
500
|
|
|
100
|
|
|
1,750
|
|
|
500
|
|
|
1,250
|
|
|
250
|
|
||||||
Noninterest income
|
8,405
|
|
|
8,276
|
|
|
129
|
|
|
2
|
|
|
15,501
|
|
|
17,701
|
|
|
(2,200
|
)
|
|
(12
|
)
|
||||||
Noninterest expense
|
39,286
|
|
|
36,631
|
|
|
2,655
|
|
|
7
|
|
|
77,558
|
|
|
73,101
|
|
|
4,457
|
|
|
6
|
|
||||||
Income before income tax expense
|
15,864
|
|
|
13,593
|
|
|
2,271
|
|
|
17
|
|
|
29,386
|
|
|
27,452
|
|
|
1,934
|
|
|
7
|
|
||||||
Income tax expense
|
3,964
|
|
|
4,147
|
|
|
(183
|
)
|
|
(4
|
)
|
|
7,280
|
|
|
8,714
|
|
|
(1,434
|
)
|
|
(16
|
)
|
||||||
Net income
|
$
|
11,900
|
|
|
$
|
9,446
|
|
|
$
|
2,454
|
|
|
26
|
%
|
|
$
|
22,106
|
|
|
$
|
18,738
|
|
|
$
|
3,368
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
$
|
6,358,100
|
|
|
$
|
5,593,889
|
|
|
$
|
764,211
|
|
|
14
|
%
|
|
$
|
6,358,100
|
|
|
$
|
5,593,889
|
|
|
$
|
764,211
|
|
|
14
|
%
|
Efficiency ratio (1)
|
69.97
|
%
|
|
72.22
|
%
|
|
|
|
|
|
71.35
|
%
|
|
72.34
|
%
|
|
|
|
|
||||||||||
Full-time equivalent employees (ending)
|
1,018
|
|
|
1,055
|
|
|
|
|
|
|
1,018
|
|
|
1055
|
|
|
|
|
|
||||||||||
Production volumes for sale to the secondary market:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loan originations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Multifamily DUS® (2)
|
$
|
71,759
|
|
|
$
|
58,343
|
|
|
$
|
13,416
|
|
|
23
|
%
|
|
$
|
93,503
|
|
|
$
|
115,895
|
|
|
$
|
(22,392
|
)
|
|
(19
|
)%
|
SBA
|
5,713
|
|
|
6,126
|
|
|
(413
|
)
|
|
(7
|
)%
|
|
8,943
|
|
|
12,924
|
|
|
(3,981
|
)
|
|
(31
|
)%
|
||||||
Loans sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Multifamily DUS® (2)
|
$
|
54,621
|
|
|
$
|
35,312
|
|
|
$
|
19,309
|
|
|
55
|
%
|
|
$
|
87,597
|
|
|
$
|
112,161
|
|
|
$
|
(24,564
|
)
|
|
(22
|
)%
|
SBA
|
3,622
|
|
|
3,532
|
|
|
90
|
|
|
3
|
%
|
|
7,314
|
|
|
11,167
|
|
|
(3,853
|
)
|
|
(35
|
)%
|
||||||
CRE Non-DUS (3)
|
114,650
|
|
|
21,163
|
|
|
93,487
|
|
|
442
|
%
|
|
114,650
|
|
|
26,714
|
|
|
87,936
|
|
|
329
|
%
|
||||||
Single Family (3)
|
138,603
|
|
|
—
|
|
|
138,603
|
|
|
NM
|
|
|
138,603
|
|
|
—
|
|
|
138,603
|
|
|
NM
|
|
||||||
Net gain on loan origination and sale activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Multifamily DUS®(2)
|
1,613
|
|
|
1,273
|
|
|
340
|
|
|
27
|
%
|
|
2,759
|
|
|
4,633
|
|
|
(1,874
|
)
|
|
(40
|
)%
|
||||||
SBA
|
385
|
|
|
316
|
|
|
69
|
|
|
22
|
%
|
|
686
|
|
|
918
|
|
|
(232
|
)
|
|
(25
|
)%
|
||||||
CRE Non-DUS (3)
|
800
|
|
|
143
|
|
|
657
|
|
|
459
|
%
|
|
800
|
|
|
143
|
|
|
657
|
|
|
459
|
%
|
||||||
Single Family (3)
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|
NM
|
|
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|
NM
|
|
||||||
|
$
|
2,709
|
|
|
$
|
1,732
|
|
|
$
|
977
|
|
|
56
|
%
|
|
$
|
4,156
|
|
|
$
|
5,694
|
|
|
$
|
(1,538
|
)
|
|
(27
|
)%
|
NM = not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At June 30,
2018 |
|
At December 31,
2017 |
||||
(in thousands)
|
|
||||||
|
|
|
|
||||
Commercial
|
|
|
|
||||
Multifamily DUS®
|
$
|
1,357,929
|
|
|
$
|
1,311,399
|
|
Other
|
82,083
|
|
|
79,797
|
|
||
Total commercial loans serviced for others
|
$
|
1,440,012
|
|
|
$
|
1,391,196
|
|
|
Three Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Servicing fees and other
|
$
|
2,001
|
|
|
$
|
1,652
|
|
|
$
|
349
|
|
|
21
|
%
|
|
$
|
3,958
|
|
|
$
|
3,492
|
|
|
$
|
466
|
|
|
13
|
%
|
Amortization of multifamily and SBA MSRs
|
(1,064
|
)
|
|
(761
|
)
|
|
(303
|
)
|
|
(40
|
)
|
|
(2,113
|
)
|
|
(1,692
|
)
|
|
(421
|
)
|
|
(25
|
)
|
||||||
Commercial mortgage servicing income
|
$
|
937
|
|
|
$
|
891
|
|
|
$
|
46
|
|
|
5
|
%
|
|
$
|
1,845
|
|
|
$
|
1,800
|
|
|
$
|
45
|
|
|
3
|
%
|
|
Three Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income
|
$
|
3,258
|
|
|
$
|
4,420
|
|
|
$
|
(1,162
|
)
|
|
(26
|
)%
|
|
$
|
6,270
|
|
|
$
|
9,167
|
|
|
$
|
(2,897
|
)
|
|
(32
|
)%
|
Noninterest income
|
60,984
|
|
|
72,732
|
|
|
(11,748
|
)
|
|
(16
|
)
|
|
114,719
|
|
|
137,768
|
|
|
(23,049
|
)
|
|
(17
|
)
|
||||||
Noninterest expense
|
71,279
|
|
|
74,613
|
|
|
(3,334
|
)
|
|
(4
|
)
|
|
133,776
|
|
|
145,017
|
|
|
(11,241
|
)
|
|
(8
|
)
|
||||||
(Loss) income before income taxes
|
(7,037
|
)
|
|
2,539
|
|
|
(9,576
|
)
|
|
(377
|
)
|
|
(12,787
|
)
|
|
1,918
|
|
|
(14,705
|
)
|
|
(767
|
)
|
||||||
Income tax (benefit) expense
|
(2,236
|
)
|
|
776
|
|
|
(3,012
|
)
|
|
(388
|
)
|
|
(3,646
|
)
|
|
464
|
|
|
(4,110
|
)
|
|
(886
|
)
|
||||||
Net (loss) income
|
$
|
(4,801
|
)
|
|
$
|
1,763
|
|
|
$
|
(6,564
|
)
|
|
(372
|
)%
|
|
$
|
(9,141
|
)
|
|
$
|
1,454
|
|
|
$
|
(10,595
|
)
|
|
(729
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
$
|
805,777
|
|
|
$
|
992,668
|
|
|
$
|
(186,891
|
)
|
|
(19
|
)%
|
|
$
|
805,777
|
|
|
$
|
992,668
|
|
|
$
|
(186,891
|
)
|
|
(19
|
)%
|
Efficiency ratio (1)
|
110.95
|
%
|
|
96.71
|
%
|
|
|
|
|
|
110.57
|
%
|
|
98.69
|
%
|
|
|
|
|
||||||||||
Full-time equivalent employees (ending)
|
1,235
|
|
|
1,487
|
|
|
|
|
|
|
1,235
|
|
|
1,487
|
|
|
|
|
|
||||||||||
Production volumes for sale to the secondary market:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Single family mortgage interest rate lock commitments
|
$
|
1,679,748
|
|
|
$
|
1,950,427
|
|
|
$
|
(270,679
|
)
|
|
(14
|
)%
|
|
$
|
3,251,723
|
|
|
$
|
3,573,049
|
|
|
$
|
(321,326
|
)
|
|
(9
|
)%
|
Single family mortgage closed loan volume (2)(3)
|
$
|
1,739,887
|
|
|
$
|
2,011,127
|
|
|
$
|
(271,240
|
)
|
|
(13
|
)%
|
|
$
|
3,192,285
|
|
|
$
|
3,632,180
|
|
|
$
|
(439,895
|
)
|
|
(12
|
)%
|
Single family mortgage loans sold(3)
|
$
|
1,629,745
|
|
|
$
|
1,808,500
|
|
|
$
|
(178,755
|
)
|
|
(10
|
)%
|
|
$
|
3,180,469
|
|
|
$
|
3,548,237
|
|
|
$
|
(367,768
|
)
|
|
(10
|
)%
|
(1)
|
Noninterest expense divided by total net revenue (net interest income and noninterest income).
|
(2)
|
Includes loans originated by WMS Series LLC and purchased by HomeStreet Bank and brokered loans where HomeStreet receives fee income but does not fund the loan on its balance sheet or sell it into the secondary market.
|
(3)
|
Represents single family mortgage production volume designated for sale to the secondary market during each respective period.
|
|
Three Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
|
Six Months Ended June 30,
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||||||
(in thousands)
|
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Single family: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Servicing value and secondary market gains(2)
|
$
|
48,182
|
|
|
$
|
57,353
|
|
|
$
|
(9,171
|
)
|
|
(16
|
)%
|
|
$
|
89,609
|
|
|
$
|
107,891
|
|
|
$
|
(18,282
|
)
|
|
(17
|
)%
|
Loan origination and funding fees
|
6,158
|
|
|
6,823
|
|
|
(665
|
)
|
|
(10
|
)
|
|
11,603
|
|
|
12,604
|
|
|
(1,001
|
)
|
|
(8
|
)
|
||||||
Total mortgage banking gain on loan origination and sale activities(1)
|
$
|
54,340
|
|
|
$
|
64,176
|
|
|
$
|
(9,836
|
)
|
|
(15
|
)%
|
|
$
|
101,212
|
|
|
$
|
120,495
|
|
|
$
|
(19,283
|
)
|
|
(16
|
)%
|
(1)
|
Excludes inter-segment activities.
|
(2)
|
Comprised of gains and losses on interest rate lock commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and the estimated fair value of the repurchase or indemnity obligation recognized on new loan sales.
|
(1)
|
Represents changes due to collection/realization of expected cash flows and curtailments.
|
(2)
|
Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.
|
(3)
|
Included pre-tax income of $573 thousand, net of transaction costs and prepayment reserves, resulting from the sale of single family MSRs during the three and six months ended June 30, 2018.
|
(in thousands)
|
At June 30,
2018 |
|
At December 31,
2017
|
||||
Single family
|
|
|
|
||||
U.S. government and agency
|
$
|
18,493,704
|
|
|
$
|
22,123,710
|
|
Other
|
579,472
|
|
|
507,437
|
|
||
Total single family loans serviced for others
|
$
|
19,073,176
|
|
|
$
|
22,631,147
|
|
|
At June 30, 2018
|
||||||||||
(in thousands)
|
Recorded
Investment
|
|
Unpaid Principal
Balance (2)
|
|
Related
Allowance
|
||||||
|
|
|
|
|
|
||||||
Impaired loans:
|
|
|
|
|
|
||||||
Loans with no related allowance recorded
|
$
|
70,643
|
|
|
$
|
72,481
|
|
|
$
|
—
|
|
Loans with an allowance recorded
|
2,901
|
|
|
3,378
|
|
|
282
|
|
|||
Total
|
$
|
73,544
|
|
(1)
|
$
|
75,859
|
|
|
$
|
282
|
|
|
|||||||||||
|
At December 31, 2017
|
||||||||||
(in thousands)
|
Recorded
Investment
|
|
Unpaid Principal
Balance (2)
|
|
Related
Allowance
|
||||||
|
|
|
|
|
|
||||||
Impaired loans:
|
|
|
|
|
|
||||||
Loans with no related allowance recorded
|
$
|
78,696
|
|
(3)
|
$
|
80,904
|
|
|
$
|
—
|
|
Loans with an allowance recorded
|
5,150
|
|
|
5,288
|
|
|
289
|
|
|||
Total
|
$
|
83,846
|
|
(1)
|
$
|
86,192
|
|
|
$
|
289
|
|
(1)
|
Includes $65.5 million and $69.6 million in single family performing troubled debt restructurings ("TDRs") at June 30, 2018 and December 31, 2017, respectively.
|
(2)
|
Unpaid principal balance does not include partial charge-offs, purchase discounts and premiums or nonaccrual interest paid. Related allowance is calculated on net book balances not unpaid principal balances.
|
(3)
|
Includes $231 thousand of fair value option loans.
|
|
At June 30, 2018
|
|
At December 31, 2017
|
||||||||||||||||
(in thousands)
|
Amount
|
|
Percent of
Allowance
to Total
Allowance
|
|
Loan
Category
as a % of
Total Loans (1)
|
|
Amount
|
|
Percent of
Allowance
to Total
Allowance
|
|
Loan
Category as a % of Total Loans (1) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Single family
|
$
|
8,594
|
|
|
21.0
|
%
|
|
28.8
|
%
|
|
$
|
9,412
|
|
|
24.1
|
%
|
|
30.4
|
%
|
Home equity and other
|
7,346
|
|
|
17.9
|
|
|
10.5
|
|
|
7,081
|
|
|
18.1
|
|
|
10.0
|
|
||
|
15,940
|
|
|
38.9
|
|
|
39.3
|
|
|
16,493
|
|
|
42.2
|
|
|
40.4
|
|
||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-owner occupied commercial real estate
|
4,764
|
|
|
11.6
|
|
|
13.1
|
|
|
4,755
|
|
|
12.1
|
|
|
13.8
|
|
||
Multifamily
|
5,017
|
|
|
12.2
|
|
|
17.0
|
|
|
3,895
|
|
|
10.0
|
|
|
16.1
|
|
||
Construction/land development
|
9,205
|
|
|
22.5
|
|
|
15.9
|
|
|
8,677
|
|
|
22.2
|
|
|
15.2
|
|
||
|
18,986
|
|
|
46.3
|
|
|
46.0
|
|
|
17,327
|
|
|
44.3
|
|
|
45.1
|
|
||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Owner occupied commercial real estate
|
3,032
|
|
|
7.4
|
|
|
8.2
|
|
|
2,960
|
|
|
7.5
|
|
|
8.7
|
|
||
Commercial business
|
3,024
|
|
|
7.4
|
|
|
6.5
|
|
|
2,336
|
|
|
6.0
|
|
|
5.9
|
|
||
|
6,056
|
|
|
14.8
|
|
|
14.7
|
|
|
5,296
|
|
|
13.5
|
|
|
14.5
|
|
||
Total allowance for credit losses
|
$
|
40,982
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
39,116
|
|
|
100.0
|
%
|
|
100.0
|
%
|
(1)
|
Excludes loans held for investment balances that are carried at fair value.
|
|
At June 30, 2018
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
65,525
|
|
|
$
|
2,023
|
|
|
$
|
67,548
|
|
Home equity and other
|
1,238
|
|
|
21
|
|
|
1,259
|
|
|||
|
66,763
|
|
|
2,044
|
|
|
68,807
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Multifamily
|
499
|
|
|
—
|
|
|
499
|
|
|||
Construction/land development
|
665
|
|
|
—
|
|
|
665
|
|
|||
|
1,164
|
|
|
—
|
|
|
1,164
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
866
|
|
|
—
|
|
|
866
|
|
|||
Commercial business
|
388
|
|
|
252
|
|
|
640
|
|
|||
|
1,254
|
|
|
252
|
|
|
1,506
|
|
|||
|
$
|
69,181
|
|
|
$
|
2,296
|
|
|
$
|
71,477
|
|
(1)
|
Includes loan balances insured by the FHA or guaranteed by the VA of $48.7 million at June 30, 2018.
|
|
At December 31, 2017
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
69,555
|
|
|
$
|
2,451
|
|
|
$
|
72,006
|
|
Home equity and other
|
1,254
|
|
|
36
|
|
|
1,290
|
|
|||
|
70,809
|
|
|
2,487
|
|
|
73,296
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Multifamily
|
507
|
|
|
—
|
|
|
507
|
|
|||
Construction/land development
|
454
|
|
|
—
|
|
|
454
|
|
|||
|
961
|
|
|
—
|
|
|
961
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
876
|
|
|
—
|
|
|
876
|
|
|||
Commercial business
|
377
|
|
|
62
|
|
|
439
|
|
|||
|
1,253
|
|
|
62
|
|
|
1,315
|
|
|||
|
$
|
73,023
|
|
|
$
|
2,549
|
|
|
$
|
75,572
|
|
(1)
|
Includes loan balances insured by the FHA or guaranteed by the VA of $46.7 million at December 31, 2017.
|
|
At June 30, 2018
|
||||||||||||||||||||||
(in thousands)
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Nonaccrual
|
|
90 Days or
More Past Due and Accruing
|
|
Total
Past Due
Loans
|
|
Other
Real Estate
Owned
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family
|
$
|
9,857
|
|
|
$
|
4,322
|
|
|
$
|
6,459
|
|
|
$
|
40,967
|
|
(1)
|
$
|
61,605
|
|
|
$
|
751
|
|
Home equity and other
|
477
|
|
|
19
|
|
|
1,267
|
|
|
—
|
|
|
1,763
|
|
|
—
|
|
||||||
|
10,334
|
|
|
4,341
|
|
|
7,726
|
|
|
40,967
|
|
|
63,368
|
|
|
751
|
|
||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Multifamily
|
—
|
|
|
—
|
|
|
285
|
|
|
—
|
|
|
285
|
|
|
—
|
|
||||||
Construction/land development
|
—
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
75
|
|
|
—
|
|
||||||
|
—
|
|
|
—
|
|
|
360
|
|
|
—
|
|
|
360
|
|
|
—
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied commercial real estate
|
—
|
|
|
—
|
|
|
394
|
|
|
—
|
|
|
394
|
|
|
—
|
|
||||||
Commercial business
|
—
|
|
|
—
|
|
|
1,150
|
|
|
—
|
|
|
1,150
|
|
|
—
|
|
||||||
|
—
|
|
|
—
|
|
|
1,544
|
|
|
—
|
|
|
1,544
|
|
|
—
|
|
||||||
Total
|
$
|
10,334
|
|
|
$
|
4,341
|
|
|
$
|
9,630
|
|
|
$
|
40,967
|
|
|
$
|
65,272
|
|
|
$
|
751
|
|
(1)
|
FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. At June 30, 2018, these past due loans totaled $41.0 million.
|
|
At December 31, 2017
|
||||||||||||||||||||||
(in thousands)
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Nonaccrual
|
|
90 Days or
More Past Due and Accruing |
|
Total
Past Due
Loans
|
|
Other
Real Estate
Owned
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family
|
$
|
10,493
|
|
|
$
|
4,437
|
|
|
$
|
11,091
|
|
|
$
|
37,171
|
|
(1)
|
$
|
63,192
|
|
|
$
|
664
|
|
Home equity and other
|
750
|
|
|
20
|
|
|
1,404
|
|
|
—
|
|
|
2,174
|
|
|
—
|
|
||||||
|
11,243
|
|
|
4,457
|
|
|
12,495
|
|
|
37,171
|
|
|
65,366
|
|
|
664
|
|
||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Multifamily
|
—
|
|
|
—
|
|
|
302
|
|
|
—
|
|
|
302
|
|
|
—
|
|
||||||
Construction/land development
|
641
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
719
|
|
|
—
|
|
||||||
|
641
|
|
|
—
|
|
|
380
|
|
|
—
|
|
|
1,021
|
|
|
—
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
640
|
|
|
—
|
|
|
640
|
|
|
—
|
|
||||||
Commercial business
|
377
|
|
|
—
|
|
|
1,526
|
|
|
—
|
|
|
1,903
|
|
|
—
|
|
||||||
|
377
|
|
|
—
|
|
|
2,166
|
|
|
—
|
|
|
2,543
|
|
|
—
|
|
||||||
Total
|
$
|
12,261
|
|
|
$
|
4,457
|
|
|
$
|
15,041
|
|
|
$
|
37,171
|
|
|
$
|
68,930
|
|
|
$
|
664
|
|
(1)
|
FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. At December 31, 2017, these past due loans totaled $37.2 million.
|
•
|
MSRs (net of deferred tax) in excess of 10% of Tier 1 capital before threshold based deductions must be deducted from common equity. The disallowable portion of MSRs will be phased in incrementally (40% in 2015; 60% in 2016; 80% in 2017 and beyond).
|
•
|
In addition, the combined balance of MSRs and deferred tax assets is limited to approximately 15% of the Bank’s and the Company’s common equity Tier 1 capital. These combined assets must be deducted from common equity to the extent that they exceed the 15% threshold.
|
•
|
Any portion of the Bank’s and the Company’s MSRs that are not deducted from the calculation of common equity Tier 1 is subject to a 100% risk weight.
|
|
|
At June 30, 2018
|
|||||||||||||||||||
HomeStreet Bank
|
|
Actual
|
|
For Minimum Capital
Adequacy Purposes
|
|
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
(in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 leverage capital (to average assets)
|
|
$
|
671,630
|
|
|
9.72
|
%
|
|
$
|
276,378
|
|
|
4.0
|
%
|
|
$
|
345,472
|
|
|
5.0
|
%
|
Common equity Tier 1 risk-based capital (to risk-weighted assets)
|
|
671,630
|
|
|
12.69
|
%
|
|
238,102
|
|
|
4.5
|
%
|
|
343,926
|
|
|
6.5
|
%
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
671,630
|
|
|
12.69
|
%
|
|
317,470
|
|
|
6.0
|
%
|
|
423,293
|
|
|
8.0
|
%
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
$
|
715,117
|
|
|
13.52
|
%
|
|
$
|
423,293
|
|
|
8.0
|
%
|
|
$
|
529,116
|
|
|
10.0
|
%
|
|
|
At June 30, 2018
|
|||||||||||||||||||
HomeStreet, Inc.
|
|
Actual
|
|
For Minimum Capital
Adequacy Purposes
|
|
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
(in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 leverage capital (to average assets)
|
|
$
|
638,529
|
|
|
9.18
|
%
|
|
$
|
278,118
|
|
|
4.0
|
%
|
|
$
|
347,647
|
|
|
5.0
|
%
|
Common equity Tier 1 risk-based capital (to risk-weighted assets)
|
|
579,102
|
|
|
10.48
|
%
|
|
248,585
|
|
|
4.5
|
%
|
|
359,067
|
|
|
6.5
|
%
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
638,529
|
|
|
11.56
|
%
|
|
331,447
|
|
|
6.0
|
%
|
|
441,929
|
|
|
8.0
|
%
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
$
|
684,120
|
|
|
12.38
|
%
|
|
$
|
441,929
|
|
|
8.0
|
%
|
|
$
|
552,411
|
|
|
10.0
|
%
|
|
|
At December 31, 2017
|
|||||||||||||||||||
HomeStreet Bank
|
|
Actual
|
|
For Minimum Capital
Adequacy Purposes
|
|
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
(in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 leverage capital (to average assets)
|
|
$
|
649,864
|
|
|
9.67
|
%
|
|
$
|
268,708
|
|
|
4.0
|
%
|
|
$
|
335,885
|
|
|
5.0
|
%
|
Common equity Tier 1 risk-based capital (to risk-weighted assets)
|
|
649,864
|
|
|
13.22
|
%
|
|
221,201
|
|
|
4.5
|
%
|
|
319,512
|
|
|
6.5
|
%
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
649,864
|
|
|
13.22
|
%
|
|
294,935
|
|
|
6.0
|
%
|
|
393,246
|
|
|
8.0
|
%
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
$
|
688,981
|
|
|
14.02
|
%
|
|
$
|
393,246
|
|
|
8.0
|
%
|
|
$
|
491,558
|
|
|
10.0
|
%
|
|
|
At December 31, 2017
|
|||||||||||||||||||
HomeStreet, Inc.
|
|
Actual
|
|
For Minimum Capital
Adequacy Purposes
|
|
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
(in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 leverage capital (to average assets)
|
|
$
|
614,624
|
|
|
9.12
|
%
|
|
$
|
269,534
|
|
|
4.0
|
%
|
|
$
|
336,918
|
|
|
5.0
|
%
|
Common equity Tier 1 risk-based capital (to risk-weighted assets)
|
|
555,120
|
|
|
9.86
|
%
|
|
253,293
|
|
|
4.5
|
%
|
|
365,868
|
|
|
6.5
|
%
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
614,624
|
|
|
10.92
|
%
|
|
337,724
|
|
|
6.0
|
%
|
|
450,299
|
|
|
8.0
|
%
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
$
|
653,741
|
|
|
11.61
|
%
|
|
$
|
450,299
|
|
|
8.0
|
%
|
|
$
|
562,873
|
|
|
10.0
|
%
|
ITEM 3
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
•
|
understanding the nature and level of the Company's interest rate risk and interest rate sensitivity;
|
•
|
assessing how that risk fits within our overall business strategies;
|
•
|
ensuring an appropriate level of rigor and sophistication in the risk management process for the overall level of risk;
|
•
|
complying with and reviewing the asset/liability management policy; and
|
•
|
formulating and implementing strategies to improve balance sheet mix and earnings.
|
|
June 30, 2018
|
||||||||||||||||||||||||||||||
(dollars in thousands)
|
3 Mos.
or Less
|
|
More Than
3 Mos.
to 6 Mos.
|
|
More Than
6 Mos.
to 12 Mos.
|
|
More Than
12 Mos.
to 3 Yrs.
|
|
More Than
3 Yrs.
to 5 Yrs.
|
|
More Than
5 Yrs.
|
|
Non-Rate-
Sensitive
|
|
Total
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash & cash equivalents
|
$
|
176,218
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
176,218
|
|
FHLB Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48,157
|
|
|
—
|
|
|
48,157
|
|
||||||||
Investment securities(1)
|
61,382
|
|
|
38,616
|
|
|
34,975
|
|
|
200,893
|
|
|
131,875
|
|
|
439,716
|
|
|
—
|
|
|
907,457
|
|
||||||||
Mortgage loans held for sale (3)
|
562,956
|
|
|
155
|
|
|
362
|
|
|
1,543
|
|
|
1,343
|
|
|
2,155
|
|
|
—
|
|
|
568,514
|
|
||||||||
Loans held for investment(1)
|
1,472,336
|
|
|
280,576
|
|
|
458,110
|
|
|
1,045,889
|
|
|
838,726
|
|
|
787,673
|
|
|
—
|
|
|
4,883,310
|
|
||||||||
Total interest-earning assets
|
2,272,892
|
|
|
319,347
|
|
|
493,447
|
|
|
1,248,325
|
|
|
971,944
|
|
|
1,277,701
|
|
|
—
|
|
|
6,583,656
|
|
||||||||
Non-interest-earning assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
580,221
|
|
|
580,221
|
|
||||||||
Total assets
|
$
|
2,272,892
|
|
|
$
|
319,347
|
|
|
$
|
493,447
|
|
|
$
|
1,248,325
|
|
|
$
|
971,944
|
|
|
$
|
1,277,701
|
|
|
$
|
580,221
|
|
|
$
|
7,163,877
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
NOW accounts(2)
|
$
|
486,104
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
486,104
|
|
Statement savings accounts(2)
|
283,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
283,969
|
|
||||||||
Money market
accounts(2)
|
1,932,340
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,932,340
|
|
||||||||
Certificates of deposit
|
509,808
|
|
|
250,970
|
|
|
377,585
|
|
|
228,662
|
|
|
29,057
|
|
|
—
|
|
|
—
|
|
|
1,396,082
|
|
||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
FHLB advances
|
983,023
|
|
|
10,000
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|
5,590
|
|
|
—
|
|
|
1,008,613
|
|
||||||||
Other borrowings
|
30,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,007
|
|
||||||||||||||
Long-term debt
|
60,368
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65,000
|
|
|
—
|
|
|
125,368
|
|
||||||||
Total interest-bearing liabilities
|
4,285,619
|
|
|
260,970
|
|
|
377,585
|
|
|
238,662
|
|
|
29,057
|
|
|
70,590
|
|
|
—
|
|
|
5,262,483
|
|
||||||||
Non-interest bearing liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,194,935
|
|
|
1,194,935
|
|
||||||||
Equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
706,459
|
|
|
706,459
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
4,285,619
|
|
|
$
|
260,970
|
|
|
$
|
377,585
|
|
|
$
|
238,662
|
|
|
$
|
29,057
|
|
|
$
|
70,590
|
|
|
$
|
1,901,394
|
|
|
$
|
7,163,877
|
|
Interest sensitivity gap
|
(2,012,727
|
)
|
|
58,377
|
|
|
115,862
|
|
|
1,009,663
|
|
|
942,887
|
|
|
1,207,111
|
|
|
|
|
|
||||||||||
Cumulative interest sensitivity gap
|
$
|
(2,012,727
|
)
|
|
$
|
(1,954,350
|
)
|
|
$
|
(1,838,488
|
)
|
|
$
|
(828,825
|
)
|
|
$
|
114,062
|
|
|
$
|
1,321,173
|
|
|
|
|
|
||||
Cumulative interest sensitivity gap as a percentage of total assets
|
(28
|
)%
|
|
(27
|
)%
|
|
(26
|
)%
|
|
(12
|
)%
|
|
2
|
%
|
|
18
|
%
|
|
|
|
|
||||||||||
Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities
|
53
|
%
|
|
57
|
%
|
|
63
|
%
|
|
84
|
%
|
|
102
|
%
|
|
125
|
%
|
|
|
|
|
(1)
|
Based on contractual maturities, repricing dates and forecasted principal payments assuming normal amortization and, where applicable, prepayments.
|
(2)
|
Assumes 100% of interest-bearing non-maturity deposits are subject to repricing in three months or less.
|
(3)
|
Based on our intent to sell.
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||
Change in Interest Rates
(basis points) (1)
|
|
Percentage Change
|
||||||||||
|
Net Interest Income (2)
|
|
Net Portfolio Value (3)
|
|
Net Interest Income (2)
|
|
Net Portfolio Value (3)
|
|||||
+200
|
|
(3.1
|
)%
|
|
(12.2
|
)%
|
|
(0.5
|
)%
|
|
(8.2
|
)%
|
+100
|
|
(1.5
|
)
|
|
(6.3
|
)
|
|
(0.2
|
)
|
|
(4.2
|
)
|
-100
|
|
2.9
|
|
|
(0.5
|
)
|
|
1.9
|
|
|
(0.9
|
)
|
-200
|
|
6.2
|
%
|
|
(5.4
|
)%
|
|
2.3
|
%
|
|
(4.8
|
)%
|
(1)
|
For purposes of our model, we assume interest rates will not go below zero. This "floor" limits the effect of a potential negative interest rate shock in a low rate environment like the one we are currently experiencing.
|
(2)
|
This percentage change represents the impact to net interest income for a one-year period, assuming there is no change in the structure of the balance sheet.
|
(3)
|
This percentage change represents the impact to the net present value of equity, assuming there is no change in the structure of the balance sheet.
|
ITEM 4
|
CONTROLS AND PROCEDURES
|
ITEM 1
|
LEGAL PROCEEDINGS
|
ITEM 1A
|
RISK FACTORS
|
•
|
Volatility in interest rates may limit our ability to make loans, decrease our net interest income and noninterest income, create disparity between actual and expected closed loan volumes based on historical fallout rates, reduce demand for loans, diminish the value of our loan servicing rights, affect the value of our hedging instruments, increase the cost of deposits and otherwise negatively impact our financial situation;
|
•
|
Competition in the mortgage market industry may drive down the interest rates we are able to offer on our mortgages and reduce our profit margins on mortgage loan products, which would negatively impact our net interest income;
|
•
|
Volatility in mortgage markets, which is driven by factors outside of our control such as interest rate changes, imbalances in housing supply and demand and general economic conditions, may negatively impact our ability to originate loans and change the fair value of our existing loans and servicing rights;
|
•
|
Our hedging strategies to offset risks related to interest rate changes may not be successful and may result in unanticipated losses for the Company;
|
•
|
Changes in regulations or in regulators' interpretations of existing regulations may negatively impact the Company or the Bank and may limit our ability to offer certain products or services, increase our costs of compliance or restrict our growth initiatives, branch expansion and acquisition activities;
|
•
|
Increased costs for controls over data confidentiality, integrity, and availability due to growth or as may be necessary to strengthen the security profile of our computer systems and computer networks may have a negative impact on our net income;
|
•
|
Changes in the cost structures and fees of government-sponsored enterprises to whom we sell many of these loans may compress our margins and reduce our net income and profitability; and
|
•
|
Increased costs from growth through acquisition could exceed the income growth anticipated from these opportunities, especially in the short term as these acquisitions are integrated into our business;
|
•
|
Activist investors may attempt to effect changes in the Company’s strategic direction and how the Company is governed, or to acquire control over the Company. In particular, the above mentioned activist investor has
|
•
|
While the Company welcomes the opinions of all shareholders, responding to proxy contests and related actions by activist investors could be costly and time-consuming, disrupt our operations, and divert the attention of our Board of Directors and senior management and employees away from their regular duties and the pursuit of business opportunities. In addition, there may be litigation in connection with a proxy contest, which would serve as a further distraction to our Board of Directors, senior management and employees and could require the Company to incur significant additional costs.
|
•
|
Perceived uncertainties as to our future direction as a result of potential changes to the composition of the Board of Directors may lead to the perception of a change in the strategic direction of the business, instability or lack of continuity which may be exploited by our competitors; may cause concern to our existing or potential customers and employees; may result in the loss of potential business opportunities; and may make it more difficult to attract and retain qualified personnel and business partners.
|
•
|
Proxy contests and related actions by activist investors could cause significant fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business.
|
•
|
Reduced cash flows and capital resources, as we are required to make cash advances to meet contractual obligations to investors, process foreclosures, and maintain, repair and market foreclosed properties;
|
•
|
Declining mortgage servicing fee revenues because we recognize these revenues only upon collection;
|
•
|
Increasing mortgage servicing costs;
|
•
|
Declining fair value on our mortgage servicing rights; and
|
•
|
Declining fair values and liquidity of securities held in our investment portfolio that are collateralized by mortgage obligations.
|
•
|
Variances in our operating results;
|
•
|
Disparity between our operating results and the operating results of our competitors;
|
•
|
Changes in analyst’s estimates of our earnings results and future performance, or variances between our actual performance and that forecast by analysts;
|
•
|
News releases or other announcements of material events relating to the Company, including but not limited to mergers, acquisitions, expansion plans, restructuring activities or other strategic developments;
|
•
|
Statements made by activist investors criticizing our strategy, our management team or our Board of Directors;
|
•
|
Future securities offerings by us of debt or equity securities;
|
•
|
Addition or departure of key personnel;
|
•
|
Market-wide events that may be seen by the market as impacting the Company;
|
•
|
The presence or absence of short-selling of our common stock;
|
•
|
General financial conditions of the country or the regions in which we operate;
|
•
|
Trends in real estate in our primary markets; or
|
•
|
Trends relating to the economic markets generally.
|
•
|
A classified Board of Directors so that only approximately one third of our board of directors is elected each year;
|
•
|
Elimination of cumulative voting in the election of directors;
|
•
|
Procedures for advance notification of shareholder nominations and proposals;
|
•
|
The ability of our Board of Directors to amend our bylaws without shareholder approval; and
|
•
|
The ability of our Board of Directors to issue shares of preferred stock without shareholder approval upon the terms and conditions and with the rights, privileges and preferences as the board of directors may determine.
|
ITEM 2
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4
|
MINE SAFETY DISCLOSURES
|
ITEM 5
|
OTHER INFORMATION
|
ITEM 6
|
EXHIBITS
|
Exhibit
Number
|
|
Description
|
|
|
|
10.1†
|
|
|
|
|
|
12.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32(1)
|
|
|
|
|
|
101.INS(2)
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
|
(1)
|
This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
|
|
|
(2)
|
Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2018 and 2017, (ii) the Consolidated Statements of Financial Condition (unaudited) as of June 30, 2018 and December 31, 2017, (iii) the Consolidated Statements of Shareholders' Equity for the six months ended June 30, 2018 and 2017, and Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2018 and 2017, (iv) the Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2018 and 2017, and (v) the Notes to Consolidated Financial Statements (unaudited).
|
|
HomeStreet, Inc.
|
|
|
|
|
|
By:
|
/s/ Mark K. Mason
|
|
|
Mark K. Mason
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
HomeStreet, Inc.
|
|
|
|
|
|
By:
|
/s/ Mark R. Ruh
|
|
|
Mark R. Ruh
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
TABLE OF CONTENTS
|
|||
ARTICLE I DEFINITIONS AND CONSTRUCTION
|
1
|
|
|
Section 1.01
|
Definitions.
|
1
|
|
Section 1.02
|
General Interpretive Principles.
|
9
|
|
ARTICLE II SALE OF SERVICING RIGHTS AND RELATED MATTERS
|
10
|
|
|
Section 2.01
|
Items to be Sold, Transferred and Assigned.
|
10
|
|
Section 2.02
|
Evidence of Sale.
|
10
|
|
Section 2.03
|
Retention of Property by Seller in Trust.
|
10
|
|
ARTICLE III PURCHASE PRICE AND RELATED MATTERS
|
11
|
|
|
Section 3.01
|
Purchase Price.
|
11
|
|
Section 3.02
|
Procedures for Determining Purchase Price.
|
11
|
|
Section 3.03
|
Payment of Purchase Price by the Purchaser.
|
12
|
|
Section 3.04
|
Escrows and Advances.
|
13
|
|
Section 3.05
|
Certain Adjustments and Refunds.
|
13
|
|
Section 3.06
|
Form of Payment to be Made.
|
15
|
|
ARTICLE IV REPRESENTATIONS AND WARRANTIES
|
15
|
|
|
Section 4.01
|
Representations and Warranties of Seller.
|
15
|
|
Section 4.02
|
Representations and Warranties of Seller Regarding Mortgage Loans and Servicing Rights.
|
17
|
|
Section 4.03
|
Representations and Warranties of Purchaser.
|
24
|
|
Section 4.04
|
Knowledge-Qualified Representations and Warranties.
|
25
|
|
Section 4.05
|
Purpose of Representations and Warranties.
|
26
|
|
ARTICLE V COVENANTS
|
26
|
|
|
Section 5.01
|
Document Custodian; Assignments and Related Matters.
|
26
|
|
Section 5.02
|
Undertakings by Seller.
|
27
|
|
Section 5.03
|
Non-Solicitation.
|
28
|
|
Section 5.04
|
Payment of Costs.
|
28
|
|
Section 5.05
|
Property Taxes and Charges.
|
29
|
|
Section 5.06
|
Ordinary Course Interim Servicing.
|
29
|
|
Section 5.07
|
Cooperation.
|
29
|
|
Section 5.08
|
Custodial Account Verification.
|
29
|
|
Section 5.09
|
Purchaser Due Diligence.
|
30
|
|
Section 5.10
|
Servicing Transfer.
|
30
|
|
Section 5.11
|
Forwarding of Payments and Other Items.
|
30
|
|
Section 5.12
|
File Request.
|
30
|
|
ARTICLE VI CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER
|
31
|
|
|
Section 6.01
|
Correctness of Representations and Warranties.
|
31
|
|
Section 6.02
|
Compliance with Covenants.
|
31
|
|
Section 6.03
|
Litigation.
|
31
|
|
Section 6.04
|
Execution and Delivery of Agreements.
|
31
|
|
Section 6.05
|
Financial Condition of Seller.
|
31
|
|
Section 6.06
|
Required Documentation.
|
32
|
|
Section 6.07
|
No Material Adverse Change.
|
32
|
|
ARTICLE VII CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER
|
32
|
|
|
Section 7.01
|
Correctness of Representations and Warranties.
|
32
|
|
Section 7.02
|
Compliance with Covenants.
|
32
|
|
Section 7.03
|
Litigation.
|
32
|
|
Section 7.04
|
Execution and Delivery of Agreements.
|
32
|
|
Section 7.05
|
Required Documentation.
|
32
|
|
ARTICLE VIII INDEMNIFICATION AND REPURCHASES
|
33
|
|
|
Section 8.01
|
Indemnification of Purchaser.
|
33
|
|
Section 8.02
|
Repurchase of Mortgage Loans.
|
33
|
|
Section 8.03
|
Repurchase of Servicing Rights.
|
35
|
|
Section 8.04
|
Effect of Refinancing.
|
36
|
|
Section 8.05
|
Investor Appeal Rights.
|
36
|
|
Section 8.06
|
Effect of Due Diligence and Review.
|
36
|
|
Section 8.07
|
Indemnification of Seller.
|
36
|
|
Section 8.08
|
Notice and Settlement of Claims.
|
37
|
|
Section 8.09
|
Limitation on Liability.
|
37
|
|
ARTICLE IX TERMINATION
|
38
|
|
|
Section 9.01
|
Termination.
|
38
|
|
Section 9.02
|
Effect of Termination.
|
39
|
|
ARTICLE X MISCELLANEOUS
|
39
|
|
|
Section 10.01
|
Supplementary Information.
|
39
|
|
Section 10.02
|
Broker’s Fees.
|
39
|
|
Section 10.03
|
Further Assurances.
|
39
|
|
Section 10.04
|
Survival.
|
39
|
|
Section 10.05
|
Assignment.
|
40
|
|
Section 10.06
|
Notices.
|
40
|
|
Section 10.07
|
Entire Agreement.
|
40
|
|
Section 10.08
|
Binding Effect; Third Parties.
|
40
|
|
Section 10.09
|
Applicable Laws; Waiver of Jury Trial.
|
40
|
|
Section 10.10
|
Counterparts.
|
41
|
|
Section 10.11
|
No Remedy Exclusive.
|
41
|
|
Section 10.12
|
Attorney’s Fees and Expenses.
|
41
|
|
Section 10.13
|
Waiver.
|
41
|
|
Section 10.14
|
Announcements; Confidentiality.
|
41
|
|
Section 10.15
|
Time of the Essence.
|
41
|
|
Section 10.16
|
Accounting Treatment of Sales of Servicing Rights.
|
41
|
|
Section 10.17
|
Protection of Consumer Information.
|
42
|
|
Section 10.18
|
No Rights of Offset.
|
42
|
|
EXHIBIT 1.01(a) SPECIAL PRODUCT/EXCLUDED LOAN TYPES
|
45
|
|
|
EXHIBIT 1.01(b) MORTGAGE FILE CONTENTS
|
46
|
|
|
EXHIBIT 1.01(c) FORM INTERIM SERVICING AGREEMENT
|
48
|
|
|
[attached]
|
48
|
|
|
EXHIBIT 2.02 FORM OF BILL OF SALE
|
49
|
|
|
EXHIBIT 3.02(b) DATA FIELDS CONTAINED IN SETTLEMENT REPORT
|
52
|
|
|
EXHIBIT 5.01(c) Imaged Mortgage File Document Criteria
|
55
|
|
|
EXHIBIT 5.10 TRANSFER INSTRUCTIONS
|
56
|
|
|
Six Months Ended June 30,
|
|
Years Ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Fixed Charges
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, excluding deposits
|
$
|
12,050
|
|
|
$
|
8,007
|
|
|
$
|
19,333
|
|
|
$
|
10,479
|
|
|
$
|
4,975
|
|
Amortization of premiums
|
1,360
|
|
|
1,908
|
|
|
4,065
|
|
|
4,671
|
|
|
3,461
|
|
|||||
Estimated interest on rental expense (1)
|
4,612
|
|
|
4,084
|
|
|
8,705
|
|
|
7,346
|
|
|
6,628
|
|
|||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Fixed Charges
|
$
|
18,022
|
|
|
$
|
13,999
|
|
|
$
|
32,103
|
|
|
$
|
22,496
|
|
|
$
|
15,064
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
16,599
|
|
|
29,370
|
|
|
$
|
66,189
|
|
|
$
|
90,777
|
|
|
$
|
56,907
|
|
||
Add: distributed income of equity investees
|
—
|
|
|
463
|
|
|
1,042
|
|
|
2,753
|
|
|
2,512
|
|
|||||
Add: fixed charges
|
18,022
|
|
|
13,999
|
|
|
32,103
|
|
|
22,496
|
|
|
15,064
|
|
|||||
Less: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
|
311
|
|
|
591
|
|
|
598
|
|
|
2,333
|
|
|
1,624
|
|
|||||
Total earnings
|
$
|
34,310
|
|
|
$
|
43,241
|
|
|
$
|
98,736
|
|
|
$
|
113,693
|
|
|
$
|
72,859
|
|
Ratio of Earnings to fixed charges, excluding interest on deposits
|
1.90
|
|
|
3.09
|
|
|
3.08
|
|
|
5.05
|
|
|
4.84
|
|
|
Six Months Ended June 30,
|
|
Years Ended December 31,
|
||||||||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Fixed Charges
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, including deposits
|
$
|
29,400
|
|
|
$
|
19,497
|
|
|
$
|
43,245
|
|
|
$
|
29,488
|
|
|
$
|
16,776
|
|
Amortization of premiums
|
1,360
|
|
|
1,908
|
|
|
4,065
|
|
|
4,671
|
|
|
3,461
|
|
|||||
Estimated interest on rental expense (1)
|
4,612
|
|
|
4,084
|
|
|
8,705
|
|
|
7,346
|
|
|
6,628
|
|
|||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Fixed Charges
|
$
|
35,372
|
|
|
$
|
25,489
|
|
|
$
|
56,015
|
|
|
$
|
41,505
|
|
|
$
|
26,865
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
$
|
16,599
|
|
|
$
|
29,370
|
|
|
$
|
66,189
|
|
|
$
|
90,777
|
|
|
$
|
56,907
|
|
Add: distributed income of equity investees
|
—
|
|
|
463
|
|
|
1,042
|
|
|
2,753
|
|
|
2,512
|
|
|||||
Add: fixed charges
|
35,372
|
|
|
25,489
|
|
|
56,015
|
|
|
41,505
|
|
|
26,865
|
|
|||||
Subtract: minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
|
311
|
|
|
591
|
|
|
598
|
|
|
2,333
|
|
|
1,624
|
|
|||||
Total earnings
|
$
|
51,660
|
|
|
$
|
54,731
|
|
|
$
|
122,648
|
|
|
$
|
132,702
|
|
|
$
|
84,660
|
|
Ratio of Earnings to fixed charges, including interest on deposits
|
1.46
|
|
|
2.15
|
|
|
2.19
|
|
|
3.20
|
|
|
3.15
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2018 of HomeStreet, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
August 3, 2018
|
By:
|
/s/ Mark K. Mason
|
|
|
|
Mark K. Mason
|
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form10-Q for the quarter ended June 30, 2018 of HomeStreet, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
August 3, 2018
|
By:
|
/s/ Mark R. Ruh
|
|
|
|
Mark R. Ruh
|
|
|
|
Executive Vice President, Chief Financial Officer and Principal Accounting Officer
|
|
|
|
|
|
|
|
1.
|
The Quarterly Report on Form 10-Q for the period ended June 30, 2018 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
August 3, 2018
|
By:
|
/s/ Mark K. Mason
|
|
|
|
Mark K. Mason
|
|
|
|
President and Chief Executive Officer
|
1.
|
The Quarterly Report on Form 10-Q for the period ended June 30, 2018 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
August 3, 2018
|
By:
|
/s/ Mark R. Ruh
|
|
|
|
Mark R. Ruh
|
|
|
|
Executive Vice President, Chief Financial Officer and Principal Accounting Officer
|
|
|
|
|
|
|
|