Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock
|
HMST
|
Nasdaq Global Select Market
|
|
ITEM 1 FINANCIAL STATEMENTS
|
(in thousands, except share data)
|
|
March 31,
2020 |
|
December 31,
2019 |
||||
|
|
|
|
|
||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents (includes interest-earning instruments of $40,041 and $28,489)
|
|
$
|
72,441
|
|
|
$
|
57,880
|
|
Investment securities (includes $1,054,145 and $938,778 carried at fair value)
|
|
1,058,492
|
|
|
943,150
|
|
||
Loans held for sale (includes $138,095 and $79,335 carried at fair value)
|
|
140,527
|
|
|
208,177
|
|
||
Loans held for investment (net of allowance for credit losses of $58,299 and $41,772; includes $4,926 and $3,468 carried at fair value)
|
|
5,034,930
|
|
|
5,072,784
|
|
||
Mortgage servicing rights (includes $49,933 and $68,109 carried at fair value)
|
|
80,053
|
|
|
97,603
|
|
||
Other real estate owned
|
|
1,343
|
|
|
1,393
|
|
||
Federal Home Loan Bank stock, at cost
|
|
26,795
|
|
|
22,399
|
|
||
Premises and equipment, net
|
|
74,698
|
|
|
76,973
|
|
||
Lease right-of-use assets
|
|
91,375
|
|
|
94,873
|
|
||
Goodwill
|
|
28,492
|
|
|
28,492
|
|
||
Other assets
|
|
197,572
|
|
|
180,083
|
|
||
Assets of discontinued operations
|
|
—
|
|
|
28,628
|
|
||
Total assets
|
|
$
|
6,806,718
|
|
|
$
|
6,812,435
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Deposits
|
|
$
|
5,257,057
|
|
|
$
|
5,339,959
|
|
Federal Home Loan Bank advances
|
|
463,590
|
|
|
346,590
|
|
||
Accounts payable and other liabilities
|
|
78,959
|
|
|
79,818
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
|
—
|
|
|
125,000
|
|
||
Other borrowings
|
|
95,000
|
|
|
—
|
|
||
Long-term debt
|
|
125,697
|
|
|
125,650
|
|
||
Lease liabilities
|
|
109,101
|
|
|
113,092
|
|
||
Liabilities of discontinued operations
|
|
—
|
|
|
2,603
|
|
||
Total liabilities
|
|
6,129,404
|
|
|
6,132,712
|
|
||
Commitments and contingencies (Note 8)
|
|
|
|
|
||||
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, 23,376,793 shares and 23,890,855 shares
|
|
511
|
|
|
511
|
|
||
Additional paid-in capital
|
|
293,791
|
|
|
300,218
|
|
||
Retained earnings
|
|
365,283
|
|
|
374,673
|
|
||
Accumulated other comprehensive income
|
|
17,729
|
|
|
4,321
|
|
||
Total shareholders' equity
|
|
677,314
|
|
|
679,723
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
6,806,718
|
|
|
$
|
6,812,435
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands, except share data)
|
2020
|
|
2019
|
|
||||
Interest income:
|
|
|
|
|
||||
Loans
|
$
|
59,114
|
|
|
$
|
62,931
|
|
|
Investment securities
|
4,387
|
|
|
5,564
|
|
|
||
Other
|
248
|
|
|
188
|
|
|
||
|
63,749
|
|
|
68,683
|
|
|
||
Interest expense:
|
|
|
|
|
||||
Deposits
|
14,783
|
|
|
14,312
|
|
|
||
Federal Home Loan Bank advances
|
1,310
|
|
|
4,642
|
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
458
|
|
|
304
|
|
|
||
Long-term debt
|
1,590
|
|
|
1,744
|
|
|
||
Other
|
174
|
|
|
124
|
|
|
||
|
18,315
|
|
|
21,126
|
|
|
||
Net interest income
|
45,434
|
|
|
47,557
|
|
|
||
Provision for credit losses
|
14,000
|
|
|
1,500
|
|
|
||
Net interest income after provision for credit losses
|
31,434
|
|
|
46,057
|
|
|
||
Noninterest income:
|
|
|
|
|
||||
Net gain on loan origination and sale activities
|
22,541
|
|
|
2,607
|
|
|
||
Loan servicing income
|
5,607
|
|
|
1,043
|
|
|
||
Depositor and other retail banking fees
|
1,890
|
|
|
1,745
|
|
|
||
Insurance agency commissions
|
406
|
|
|
625
|
|
|
||
Gain (loss) on sale of investment securities available for sale, net
|
112
|
|
|
(247
|
)
|
|
||
Other
|
2,074
|
|
|
2,319
|
|
|
||
|
32,630
|
|
|
8,092
|
|
|
||
Noninterest expense:
|
|
|
|
|
||||
Salaries and related costs
|
32,043
|
|
|
25,279
|
|
|
||
General and administrative
|
7,966
|
|
|
8,182
|
|
|
||
Amortization of core deposit intangibles
|
345
|
|
|
333
|
|
|
||
Legal
|
610
|
|
|
(204
|
)
|
|
||
Consulting
|
934
|
|
|
1,408
|
|
|
||
Federal Deposit Insurance Corporation assessments
|
771
|
|
|
821
|
|
|
||
Occupancy
|
5,521
|
|
|
4,968
|
|
|
||
Information services
|
6,942
|
|
|
7,088
|
|
|
||
Net cost (benefit) from operation and sale of other real estate owned
|
52
|
|
|
(29
|
)
|
|
||
|
55,184
|
|
|
47,846
|
|
|
||
Income from continuing operations before income taxes
|
8,880
|
|
|
6,303
|
|
|
||
Income tax expense from continuing operations
|
1,741
|
|
|
1,245
|
|
|
||
Income from continuing operations
|
7,139
|
|
|
5,058
|
|
|
||
Loss from discontinued operations before income taxes (includes net loss on disposal of $12,224 for the three months ended March 31, 2019)
|
—
|
|
|
(8,440
|
)
|
|
||
Income tax benefit from discontinued operations
|
—
|
|
|
(1,667
|
)
|
|
||
Income (loss) from discontinued operations
|
—
|
|
|
(6,773
|
)
|
|
||
NET INCOME (LOSS)
|
$
|
7,139
|
|
|
$
|
(1,715
|
)
|
|
Basic earnings per common share:
|
|
|
|
|
||||
Income from continuing operations
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
Income (loss) from discontinued operations
|
—
|
|
|
(0.25
|
)
|
|
||
Basic earnings per share
|
$
|
0.30
|
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
||||
Diluted earnings per common share
|
|
|
|
|
||||
Income from continuing operations
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
Income (loss) from discontinued operations
|
—
|
|
|
(0.25
|
)
|
|
||
Diluted earnings per share
|
$
|
0.30
|
|
|
$
|
(0.06
|
)
|
|
Basic weighted average number of shares outstanding
|
23,688,930
|
|
|
27,021,507
|
|
|
||
Diluted weighted average number of shares outstanding
|
23,860,280
|
|
|
27,185,175
|
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
Net income (loss)
|
$
|
7,139
|
|
|
$
|
(1,715
|
)
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
Unrealized gain (loss) on investment securities available for sale:
|
|
|
|
|
||||
Unrealized holding gain arising during the year, net of tax expense of $3,587 and $2,502
|
13,496
|
|
|
9,969
|
|
|
||
Reclassification adjustment for net (gains) losses included in net income, net of tax expense (benefit) of $24 and $(52)
|
(88
|
)
|
|
195
|
|
|
||
Other comprehensive income
|
13,408
|
|
|
10,164
|
|
|
||
Comprehensive income
|
$
|
20,547
|
|
|
$
|
8,449
|
|
|
(in thousands, except share data)
|
Number
of shares
|
|
Common
stock
|
|
Additional
paid-in
capital
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Total
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
For the three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2018
|
26,995,348
|
|
|
$
|
511
|
|
|
$
|
342,439
|
|
|
$
|
412,009
|
|
|
$
|
(15,439
|
)
|
|
$
|
739,520
|
|
Cumulative effect of adoption of new accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
1,532
|
|
|
(2,080
|
)
|
|
(548
|
)
|
|||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,715
|
)
|
|
—
|
|
|
(1,715
|
)
|
|||||
Common stock issued
|
42,909
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|||||
Share-based compensation recovery
|
—
|
|
|
—
|
|
|
(452
|
)
|
|
—
|
|
|
—
|
|
|
(452
|
)
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,164
|
|
|
10,164
|
|
|||||
Balance, March 31, 2019
|
27,038,257
|
|
|
$
|
511
|
|
|
$
|
342,049
|
|
|
$
|
411,826
|
|
|
$
|
(7,355
|
)
|
|
$
|
747,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the three months ended March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2019
|
23,890,855
|
|
|
$
|
511
|
|
|
$
|
300,218
|
|
|
$
|
374,673
|
|
|
$
|
4,321
|
|
|
$
|
679,723
|
|
Cumulative effect of adoption of ASC 326
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,740
|
)
|
|
—
|
|
|
(3,740
|
)
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
7,139
|
|
|
—
|
|
|
7,139
|
|
|||||
Dividends declared on common stock ($0.15 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,574
|
)
|
|
—
|
|
|
(3,574
|
)
|
|||||
Common stock issued
|
89,507
|
|
|
—
|
|
|
664
|
|
|
—
|
|
|
—
|
|
|
664
|
|
|||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
426
|
|
|
—
|
|
|
—
|
|
|
426
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,408
|
|
|
13,408
|
|
|||||
Common stock repurchased and retired
|
(603,569
|
)
|
|
—
|
|
|
(7,517
|
)
|
|
(9,215
|
)
|
|
—
|
|
|
(16,732
|
)
|
|||||
Balance, March 31, 2020
|
23,376,793
|
|
|
$
|
511
|
|
|
$
|
293,791
|
|
|
$
|
365,283
|
|
|
$
|
17,729
|
|
|
$
|
677,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
7,139
|
|
|
$
|
(1,715
|
)
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
||||
Depreciation, amortization and accretion
|
10,343
|
|
|
9,883
|
|
||
Provision for credit losses
|
14,000
|
|
|
1,500
|
|
||
Net fair value adjustment and gain on sale of loans held for sale
|
(10,430
|
)
|
|
(25,560
|
)
|
||
Gain on sale of mortgage servicing rights, gross
|
—
|
|
|
(6,206
|
)
|
||
Loss on sale of HLC mortgage origination assets, net
|
144
|
|
|
—
|
|
||
Fair value adjustment of loans held for investment
|
(55
|
)
|
|
(85
|
)
|
||
Origination of mortgage servicing rights
|
(4,119
|
)
|
|
(7,916
|
)
|
||
Change in fair value of mortgage servicing rights
|
20,338
|
|
|
14,260
|
|
||
Net (gain) loss on sale of investment securities
|
(112
|
)
|
|
247
|
|
||
Net gain on sale of loans originated as held for investment
|
(1,864
|
)
|
|
(1,613
|
)
|
||
Net fair value adjustment, gain on sale and provision for losses on other real estate owned
|
51
|
|
|
(64
|
)
|
||
Loss on disposal of fixed assets
|
1
|
|
|
—
|
|
||
Loss on lease abandonment and exit costs
|
627
|
|
|
11,425
|
|
||
Change in deferred income taxes
|
(7,031
|
)
|
|
(40,515
|
)
|
||
Share-based compensation expense
|
477
|
|
|
(390
|
)
|
||
Origination of loans held for sale
|
(378,996
|
)
|
|
(1,036,635
|
)
|
||
Proceeds from sale of loans originated as held for sale
|
358,839
|
|
|
1,047,718
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
(Increase) decrease in accounts receivable and other assets
|
(17,074
|
)
|
|
3,077
|
|
||
(Decrease) increase in accounts payable and other liabilities
|
(2,920
|
)
|
|
20,372
|
|
||
Decrease in lease liability
|
(3,396
|
)
|
|
—
|
|
||
Net cash used in operating activities
|
(14,038
|
)
|
|
(12,217
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchase of investment securities
|
(166,533
|
)
|
|
(6,683
|
)
|
||
Proceeds from sale of investment securities
|
33,792
|
|
|
94,998
|
|
||
Principal repayments and maturities of investment securities
|
34,605
|
|
|
28,022
|
|
||
Proceeds from sale of other real estate owned
|
—
|
|
|
518
|
|
||
Proceeds from sale of loans originated as held for investment
|
244,725
|
|
|
148,585
|
|
||
Proceeds from sale of mortgage servicing rights
|
66
|
|
|
1,052
|
|
||
Net cash provided by disposal of discontinued operations
|
1,398
|
|
|
166,250
|
|
||
Origination of loans held for investment and principal repayments, net
|
(98,023
|
)
|
|
(337,197
|
)
|
||
Purchase of property and equipment
|
(1,002
|
)
|
|
(638
|
)
|
||
Net cash used for acquisitions
|
—
|
|
|
(32,554
|
)
|
||
Net cash provided by investing activities
|
49,028
|
|
|
62,353
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
(Decrease) increase in deposits, net
|
(82,936
|
)
|
|
271,459
|
|
||
Proceeds from Federal Home Loan Bank advances
|
3,943,000
|
|
|
2,224,300
|
|
||
Repayment of Federal Home Loan Bank advances
|
(3,826,000
|
)
|
|
(2,557,300
|
)
|
||
Proceeds from federal funds purchased and securities sold under agreements to repurchase
|
8,173,000
|
|
|
2,967,000
|
|
||
Repayment of federal funds purchased and securities sold under agreements to repurchase
|
(8,298,000
|
)
|
|
(2,959,000
|
)
|
||
Proceeds from other borrowings
|
255,000
|
|
|
—
|
|
||
Repayment of other borrowings
|
(160,000
|
)
|
|
—
|
|
||
Repayment of lease principal
|
(285
|
)
|
|
(455
|
)
|
||
Proceeds from Federal Home Loan Bank stock repurchase
|
57,877
|
|
|
48,632
|
|
||
Purchase of Federal Home Loan Bank stock
|
(62,273
|
)
|
|
(35,668
|
)
|
||
Repurchase of common stock
|
(16,476
|
)
|
|
—
|
|
||
Proceeds from stock issuance, net
|
238
|
|
|
—
|
|
||
Dividends paid on common stock
|
(3,574
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(20,429
|
)
|
|
(41,032
|
)
|
||
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
14,561
|
|
|
9,104
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
|
|
|
|
||||
Cash, cash equivalents and restricted cash, beginning of year
|
57,880
|
|
|
58,586
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
72,441
|
|
|
67,690
|
|
||
Less: restricted cash included in other assets
|
—
|
|
|
—
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
72,441
|
|
|
$
|
67,690
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest paid
|
$
|
17,876
|
|
|
$
|
22,563
|
|
Federal and state income taxes paid, net
|
—
|
|
|
(7,387
|
)
|
||
Non-cash activities:
|
|
|
|
||||
Loans held for investment foreclosed and transferred to other real estate owned
|
—
|
|
|
180
|
|
||
Loans transferred from held for investment to held for sale
|
120,530
|
|
|
153,794
|
|
||
Loans transferred from held for sale to held for investment
|
2,087
|
|
|
3,867
|
|
||
Ginnie Mae loans (derecognized) recognized with the right to repurchase, net
|
(298
|
)
|
|
(27,278
|
)
|
||
Receivable from sale of mortgage servicing rights
|
—
|
|
|
18,315
|
|
||
Acquisition:
|
|
|
|
||||
Assets acquired
|
—
|
|
|
115,038
|
|
||
Liabilities assumed
|
—
|
|
|
74,942
|
|
||
Goodwill
|
—
|
|
|
7,293
|
|
(in thousands)
|
|
As reported under ASC 450-20
|
|
Impact of ASC 326 adoption
|
|
As reported under ASC 326
|
||||||
Assets (1)
|
|
|
|
|
|
|
||||||
Loans held for investment
|
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
|
||||||
Single family
|
|
$
|
6,450
|
|
|
$
|
468
|
|
|
$
|
6,918
|
|
Home equity and other
|
|
6,233
|
|
|
4,635
|
|
|
10,868
|
|
|||
Total consumer loans
|
|
12,683
|
|
|
5,103
|
|
|
17,786
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
|
||||||
Non-owner occupied commercial real estate
|
|
7,245
|
|
|
(3,392
|
)
|
|
3,853
|
|
|||
Multifamily
|
|
7,015
|
|
|
(2,977
|
)
|
|
4,038
|
|
|||
Construction/land development
|
|
|
|
|
|
|
||||||
Multifamily construction
|
|
2,848
|
|
|
693
|
|
|
3,541
|
|
|||
Commercial real estate construction
|
|
624
|
|
|
(115
|
)
|
|
509
|
|
|||
Single family construction
|
|
3,800
|
|
|
4,280
|
|
|
8,080
|
|
|||
Single family construction to permanent
|
|
1,003
|
|
|
200
|
|
|
1,203
|
|
|||
Total commercial real estate loans
|
|
22,535
|
|
|
(1,311
|
)
|
|
21,224
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
|
3,639
|
|
|
(2,459
|
)
|
|
1,180
|
|
|||
Commercial business
|
|
2,915
|
|
|
510
|
|
|
3,425
|
|
|||
Total commercial and industrial loans
|
|
6,554
|
|
|
(1,949
|
)
|
|
4,605
|
|
|||
Total allowance for credit losses on loans held for investment
|
|
41,772
|
|
|
1,843
|
|
|
43,615
|
|
|||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Allowance for credit losses on unfunded loan commitments
|
|
1,065
|
|
|
1,897
|
|
|
2,962
|
|
|||
Total allowance for credit losses including unfunded commitments
|
|
$
|
42,837
|
|
|
$
|
3,740
|
|
|
$
|
46,577
|
|
|
|
|
|
|
|
|
Qualitative Factor
|
Financial Instruments - Credit Losses
|
Portfolio Credit Quality
|
The borrower's financial condition, credit rating, credit score, asset quality, or business prospects
|
The borrower's ability to make scheduled interest or principal payments
|
|
The volume and severity of past due financial assets and the volume and severity of adversely classified or rated financial assets
|
|
Remaining Payments
|
The remaining payment terms of the financial assets
|
The remaining time to maturity and the timing and extent of prepayments on the financial assets
|
|
Volume & Nature
|
The nature and volume of the entity's financial assets
|
Collateral Values
|
The value of underlying collateral on financial assets in which the collateral-dependent practical expedient has not been utilized
|
Economic
|
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: Changes and expected changes in national, regional, and local economic and business conditions and developments in which the entity operates, including the condition and expected condition of various market segments
|
Credit Culture
|
The entity's lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off, and recovery practices, as well as knowledge of the borrower's operations or the borrower's standing in the community
|
The quality of the entity's credit review system
|
|
The experience, ability, and depth of the entity's management, lending staff, and other relevant staff
|
|
Business Environment
|
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: Regulatory, legal, or technological environment to which the entity has exposure
|
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: Changes and expected changes in the general market condition of either the geographical area or the industry to which the entity has exposure
|
•
|
AQR 1-4: These loans range from minimal to average risk characteristics and are pooled together. They exhibit sound sources of repayment and evidence no material collection or repayment weakness.
|
•
|
AQR 5: These loans have acceptable risk. While lower than average risk, weaknesses can be adequately mitigated by structure, collateral, or credit enhancement.
|
•
|
AQR 6: These loans meet the regulatory definition of “Watch”. They are considered satisfactory but have less than acceptable risk due to emerging risk elements or declining performance. Loans in this category are generally characterized by elements of uncertainty and require close management attention.
|
•
|
AQR 7: These loans meet the regulatory definition of “Special Mention.” They contain unfavorable characteristics and are generally undesirable. Loans in this category are currently protected but are potentially weak and constitute an undue or unwarranted credit risk.
|
•
|
AQR 8: These loans meet the regulatory definition of “Substandard”. They are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. They have well-defined weaknesses and have unsatisfactory characteristics causing unacceptable levels of risk.
|
(in thousands)
|
Three Months Ended March 31,
|
|
|||
|
|
2019
|
|
||
Proceeds from asset sales
|
|
$
|
183,151
|
|
|
Book value of asset sales
|
|
176,944
|
|
|
|
Gain on assets sold
|
|
6,207
|
|
|
|
Transaction costs
|
|
6,418
|
|
|
|
Compensation expense related to the transactions
|
|
1,117
|
|
|
|
Facility and IT related costs
|
|
10,896
|
|
|
|
Total costs
|
|
18,431
|
|
|
|
Net loss on disposal
|
|
$
|
(12,224
|
)
|
|
(in thousands)
|
December 31, 2019
|
||
ASSETS
|
|
||
Loans held for sale, at fair value
|
$
|
26,123
|
|
Other assets (1)
|
2,505
|
|
|
Assets of discontinued operations
|
$
|
28,628
|
|
LIABILITIES
|
|
||
Accrued expenses and other liabilities
|
$
|
2,603
|
|
Liabilities of discontinued operations
|
$
|
2,603
|
|
(1)
|
Includes $227 thousand of derivative balance at December 31, 2019.
|
(2)
|
Discontinued operations accounting was concluded effective January 1, 2020, therefore there is no comparable balance for the three months ended March 31, 2020.
|
|
Three Months Ended March 31,
|
|
||
(in thousands)
|
2019
|
|
||
Net interest income
|
$
|
2,145
|
|
|
Noninterest income
|
39,269
|
|
|
|
Noninterest expense
|
49,854
|
|
|
|
Loss before income taxes
|
(8,440
|
)
|
|
|
Income tax benefit
|
(1,667
|
)
|
|
|
Loss from discontinued operations
|
$
|
(6,773
|
)
|
|
(1)
|
Discontinued operations accounting was concluded effective January 1, 2020, therefore there is no comparable balance for the three months ended March 31, 2020.
|
|
Three Months Ended March 31,
|
||
(in thousands)
|
2019
|
||
Net cash used in operating activities
|
$
|
(31,117
|
)
|
Net cash provided by investing activities
|
178,096
|
|
|
At March 31, 2020
|
||||||||||||||
(in thousands)
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair
value |
||||||||
|
|
|
|
|
|
|
|
||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
84,150
|
|
|
$
|
1,155
|
|
|
$
|
(559
|
)
|
|
$
|
84,746
|
|
Commercial
|
41,940
|
|
|
1,978
|
|
|
—
|
|
|
43,918
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
285,188
|
|
|
9,321
|
|
|
(356
|
)
|
|
294,153
|
|
||||
Commercial
|
159,803
|
|
|
2,569
|
|
|
(1,602
|
)
|
|
160,770
|
|
||||
Municipal bonds
|
442,224
|
|
|
12,979
|
|
|
(2,570
|
)
|
|
452,633
|
|
||||
Corporate debt securities
|
17,103
|
|
|
66
|
|
|
(558
|
)
|
|
16,611
|
|
||||
U.S. Treasury securities
|
1,297
|
|
|
17
|
|
|
—
|
|
|
1,314
|
|
||||
|
$
|
1,031,705
|
|
|
$
|
28,085
|
|
|
$
|
(5,645
|
)
|
|
$
|
1,054,145
|
|
|
|
|
|
|
|
|
|
||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
||||||||
Municipal bonds
|
4,347
|
|
|
115
|
|
|
—
|
|
|
4,462
|
|
||||
|
$
|
4,347
|
|
|
$
|
115
|
|
|
$
|
—
|
|
|
$
|
4,462
|
|
|
At December 31, 2019
|
||||||||||||||
(in thousands)
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Fair
value |
||||||||
|
|
|
|
|
|
|
|
||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
93,283
|
|
|
$
|
120
|
|
|
$
|
(1,708
|
)
|
|
$
|
91,695
|
|
Commercial
|
37,972
|
|
|
411
|
|
|
(358
|
)
|
|
38,025
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
292,370
|
|
|
935
|
|
|
(1,687
|
)
|
|
291,618
|
|
||||
Commercial
|
156,693
|
|
|
684
|
|
|
(1,223
|
)
|
|
156,154
|
|
||||
Municipal bonds
|
333,303
|
|
|
8,997
|
|
|
(982
|
)
|
|
341,318
|
|
||||
Corporate debt securities
|
18,391
|
|
|
313
|
|
|
(43
|
)
|
|
18,661
|
|
||||
U.S. Treasury securities
|
1,296
|
|
|
11
|
|
|
—
|
|
|
1,307
|
|
||||
|
$
|
933,308
|
|
|
$
|
11,471
|
|
|
$
|
(6,001
|
)
|
|
$
|
938,778
|
|
|
|
|
|
|
|
|
|
||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
||||||||
Municipal bonds
|
4,372
|
|
|
129
|
|
|
—
|
|
|
4,501
|
|
||||
|
$
|
4,372
|
|
|
$
|
129
|
|
|
$
|
—
|
|
|
$
|
4,501
|
|
|
At March 31, 2020
|
||||||||||||||||||||||
|
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
|
$
|
—
|
|
|
$
|
811
|
|
|
$
|
(559
|
)
|
|
$
|
18,799
|
|
|
$
|
(559
|
)
|
|
$
|
19,610
|
|
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
(356
|
)
|
|
36,486
|
|
|
—
|
|
|
—
|
|
|
(356
|
)
|
|
36,486
|
|
||||||
Commercial
|
(797
|
)
|
|
58,541
|
|
|
(805
|
)
|
|
24,746
|
|
|
(1,602
|
)
|
|
83,287
|
|
||||||
Municipal bonds
|
(2,147
|
)
|
|
76,591
|
|
|
(423
|
)
|
|
28,341
|
|
|
(2,570
|
)
|
|
104,932
|
|
||||||
Corporate debt securities
|
(558
|
)
|
|
12,629
|
|
|
—
|
|
|
—
|
|
|
(558
|
)
|
|
12,629
|
|
||||||
|
$
|
(3,858
|
)
|
|
$
|
185,058
|
|
|
$
|
(1,787
|
)
|
|
$
|
71,886
|
|
|
$
|
(5,645
|
)
|
|
$
|
256,944
|
|
|
At December 31, 2019
|
||||||||||||||||||||||
|
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
|
$
|
(409
|
)
|
|
$
|
18,440
|
|
|
$
|
(1,299
|
)
|
|
$
|
68,362
|
|
|
$
|
(1,708
|
)
|
|
$
|
86,802
|
|
Commercial
|
(352
|
)
|
|
21,494
|
|
|
(6
|
)
|
|
2,483
|
|
|
(358
|
)
|
|
23,977
|
|
||||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
(965
|
)
|
|
171,708
|
|
|
(722
|
)
|
|
29,264
|
|
|
(1,687
|
)
|
|
200,972
|
|
||||||
Commercial
|
(680
|
)
|
|
67,160
|
|
|
(543
|
)
|
|
41,605
|
|
|
(1,223
|
)
|
|
108,765
|
|
||||||
Municipal bonds
|
(334
|
)
|
|
39,127
|
|
|
(648
|
)
|
|
45,869
|
|
|
(982
|
)
|
|
84,996
|
|
||||||
Corporate debt securities
|
(5
|
)
|
|
3,689
|
|
|
(38
|
)
|
|
1,743
|
|
|
(43
|
)
|
|
5,432
|
|
||||||
|
$
|
(2,745
|
)
|
|
$
|
321,618
|
|
|
$
|
(3,256
|
)
|
|
$
|
189,326
|
|
|
$
|
(6,001
|
)
|
|
$
|
510,944
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
Proceeds
|
$
|
33,792
|
|
|
$
|
94,998
|
|
|
Gross gains
|
745
|
|
|
372
|
|
|
||
Gross losses
|
(633
|
)
|
|
(619
|
)
|
|
(in thousands)
|
At March 31,
2020 |
|
At December 31,
2019 |
||||
|
|
|
|
||||
Washington and California State to secure public deposits
|
$
|
176,545
|
|
|
$
|
200,571
|
|
Other securities pledged
|
2,098
|
|
|
4,332
|
|
||
Total securities pledged as collateral
|
$
|
178,643
|
|
|
$
|
204,903
|
|
(in thousands)
|
At March 31,
2020 |
|
At December 31,
2019 |
|
|||||
|
|
|
|
|
|||||
Consumer loans
|
|
|
|
|
|||||
Single family (1)
|
$
|
988,967
|
|
|
$
|
1,072,706
|
|
|
|
Home equity and other
|
525,544
|
|
|
553,376
|
|
|
|||
Total consumer loans
|
1,514,511
|
|
|
1,626,082
|
|
|
|||
Commercial real estate loans
|
|
|
|
|
|||||
Non-owner occupied commercial real estate
|
872,173
|
|
|
895,546
|
|
|
|||
Multifamily
|
1,167,242
|
|
|
999,140
|
|
|
|||
Construction/land development
|
626,969
|
|
|
701,762
|
|
|
|||
Total commercial real estate loans
|
2,666,384
|
|
|
2,596,448
|
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|||||
Owner occupied commercial real estate
|
473,338
|
|
|
477,316
|
|
|
|||
Commercial business
|
438,996
|
|
|
414,710
|
|
|
|||
Total commercial and industrial loans
|
912,334
|
|
|
892,026
|
|
|
|||
Total loans before allowance, net deferred loan fees and costs
|
5,093,229
|
|
|
5,114,556
|
|
(2
|
)
|
||
Allowance for credit losses (3)
|
(58,299
|
)
|
|
(41,772
|
)
|
|
|||
Total loans held for investment
|
$
|
5,034,930
|
|
|
$
|
5,072,784
|
|
|
(1)
|
Includes $4.9 million and $3.5 million at March 31, 2020 and December 31, 2019, 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.
|
(2)
|
Net deferred loans fees and costs of $24.5 million are now included within the carrying amounts of the loan balances as of December 31, 2019, in order to conform to the current period presentation.
|
(3)
|
Accrued interest receivable on loans held for investment totaled $18.7 million at March 31, 2020 and is excluded from the calculations of estimated credit losses.
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
Allowance for credit losses including unfunded commitments (roll-forward):
|
|
|
|
|
||||
Beginning balance
|
$
|
42,837
|
|
|
$
|
42,913
|
|
|
Impact of ASC 326 adoption (1)
|
3,740
|
|
|
—
|
|
|
||
Provision for credit losses
|
14,000
|
|
|
1,500
|
|
|
||
Recoveries, net of (charge-offs)
|
29
|
|
|
123
|
|
|
||
Ending balance
|
$
|
60,606
|
|
|
$
|
44,536
|
|
|
(1)
|
In conjunction with adopting ASU 2016-13 on January 1, 2020 we recorded a decrease of $3.7 million to retained earnings on January 1, 2020 for the cumulative effect of adopting this guidance.
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||||
(in thousands)
|
Prior to adoption of ASC 326
|
|
Impact of ASC 326 adoption
|
|
Charge-offs
|
|
Recoveries
|
|
Provision (Reversal)
|
|
Ending
balance |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family
|
$
|
6,450
|
|
|
$
|
468
|
|
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
1,616
|
|
|
$
|
8,587
|
|
Home equity and other
|
6,843
|
|
|
4,555
|
|
|
(217
|
)
|
|
149
|
|
|
1,561
|
|
|
12,891
|
|
||||||
Total consumer loans
|
13,293
|
|
|
5,023
|
|
|
(217
|
)
|
|
202
|
|
|
3,177
|
|
|
21,478
|
|
||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-owner occupied commercial real estate
|
7,249
|
|
|
(3,386
|
)
|
|
—
|
|
|
—
|
|
|
5,164
|
|
|
9,027
|
|
||||||
Multifamily
|
7,015
|
|
|
(2,963
|
)
|
|
—
|
|
|
—
|
|
|
223
|
|
|
4,275
|
|
||||||
Construction/land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Multifamily construction
|
2,996
|
|
|
1,077
|
|
|
—
|
|
|
—
|
|
|
(415
|
)
|
|
3,658
|
|
||||||
Commercial real estate construction
|
627
|
|
|
(103
|
)
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|
396
|
|
||||||
Single family construction
|
3,940
|
|
|
5,356
|
|
|
—
|
|
|
163
|
|
|
(2,107
|
)
|
|
7,352
|
|
||||||
Single family construction to permanent
|
1,116
|
|
|
622
|
|
|
—
|
|
|
—
|
|
|
247
|
|
|
1,985
|
|
||||||
Total commercial real estate loans
|
22,943
|
|
|
603
|
|
|
—
|
|
|
163
|
|
|
2,984
|
|
|
26,693
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
3,640
|
|
|
(2,458
|
)
|
|
—
|
|
|
—
|
|
|
2,984
|
|
|
4,166
|
|
||||||
Commercial business
|
2,961
|
|
|
572
|
|
|
(143
|
)
|
|
24
|
|
|
4,855
|
|
|
8,269
|
|
||||||
Total commercial and industrial loans
|
6,601
|
|
|
(1,886
|
)
|
|
(143
|
)
|
|
24
|
|
|
7,839
|
|
|
12,435
|
|
||||||
Total allowance for credit losses including unfunded commitments
|
$
|
42,837
|
|
|
$
|
3,740
|
|
|
$
|
(360
|
)
|
|
$
|
389
|
|
|
$
|
14,000
|
|
|
$
|
60,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
(in thousands)
|
Beginning
balance |
|
Charge-offs
|
|
Recoveries
|
|
(Reversal of) Provision
|
|
Ending
balance |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
8,217
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
$
|
(112
|
)
|
|
$
|
8,190
|
|
Home equity and other
|
7,712
|
|
|
(46
|
)
|
|
73
|
|
|
52
|
|
|
7,791
|
|
|||||
Total consumer loans
|
15,929
|
|
|
(46
|
)
|
|
158
|
|
|
(60
|
)
|
|
15,981
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
5,496
|
|
|
—
|
|
|
—
|
|
|
680
|
|
|
6,176
|
|
|||||
Multifamily
|
5,754
|
|
|
—
|
|
|
—
|
|
|
606
|
|
|
6,360
|
|
|||||
Construction/land development
|
9,539
|
|
|
—
|
|
|
4
|
|
|
108
|
|
|
9,651
|
|
|||||
Total commercial real estate loans
|
20,789
|
|
|
—
|
|
|
4
|
|
|
1,394
|
|
|
22,187
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied commercial real estate
|
3,282
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
3,304
|
|
|||||
Commercial business
|
2,913
|
|
|
—
|
|
|
7
|
|
|
144
|
|
|
3,064
|
|
|||||
Total commercial and industrial loans
|
6,195
|
|
|
—
|
|
|
7
|
|
|
166
|
|
|
6,368
|
|
|||||
Total allowance for credit losses including unfunded commitments
|
$
|
42,913
|
|
|
$
|
(46
|
)
|
|
$
|
169
|
|
|
$
|
1,500
|
|
|
$
|
44,536
|
|
|
|
•
|
AQR 1-4: These loans range from minimal to average risk characteristics and are pooled together. They exhibit sound sources of repayment and evidence no material collection or repayment weakness.
|
•
|
AQR 5: These loans have acceptable risk. While lower than average risk, weaknesses can be adequately mitigated by structure, collateral, or credit enhancement.
|
•
|
AQR 6: These loans meet the regulatory definition of “Watch”. They are considered satisfactory but have less than acceptable risk due to emerging risk elements or declining performance. Loans in this category are generally characterized by elements of uncertainty and require close management attention.
|
•
|
AQR 7: These loans meet the regulatory definition of “Special Mention.” They contain unfavorable characteristics and are generally undesirable. Loans in this category are currently protected but are potentially weak and constitute an undue or unwarranted credit risk.
|
•
|
AQR 8: These loans meet the regulatory definition of “Substandard”. They are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. They have well-defined weaknesses and have unsatisfactory characteristics causing unacceptable levels of risk.
|
•
|
AQR 6: These loans meet the regulatory definition of “Watch”. A homogeneous watch loan, risk rated 6, is 60-89 days past due from the required payment date at month-end.
|
•
|
AQR 7: These loans meet the regulatory definition of “Special Mention.” A homogeneous special mention loan, risk rated 7, is less than 90 days past due from the required payment date at month-end.
|
•
|
AQR 8: These loans meet the regulatory definition of “Substandard”. A homogeneous substandard loan, risk rated 8, is more than 90 days or more past due from the required payment date at month-end.
|
•
|
AQR 10: These loans meet the regulatory definition of “Loss”. A homogeneous loss loan, risk rated 10, is 120 days or more past due from the required payment date for non-real estate secured closed-end loans or 180 days or more past due from the required payment date for open-end loans and all loans secured by real estate. These loans are generally charged-off in the month in which the applicable time period elapses.
|
•
|
AQR 6: These loans meet the regulatory definition of “Watch”. A homogeneous watch loan, risk rated 6, is 60-89 days past due from the required payment date at month-end.
|
•
|
AQR 8: These loans meet the regulatory definition of “Substandard”. A homogeneous substandard loan, risk rated 8, is more than 90 days or more past due from the required payment date at month-end.
|
•
|
AQR 10: These loans meet the regulatory definition of “Loss”. A homogeneous retail loss loan, risk rated 10, is past due 180 cumulative days or more from the contractual due date. These loans are generally charged-off in the month in which the 180 day period elapses.
|
|
|
As of March 31, 2020
|
||||||||||||||||||||||||||||||||||
(in thousands)
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015 and prior
|
|
Revolving
|
|
Revolving-term
|
|
Total
|
||||||||||||||||||
CONSUMER PORTFOLIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Single family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current
|
|
$
|
14,076
|
|
|
$
|
86,322
|
|
|
$
|
226,526
|
|
|
$
|
247,856
|
|
|
$
|
84,453
|
|
|
$
|
323,377
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
982,610
|
|
30-59 days past due
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
680
|
|
|
—
|
|
|
—
|
|
|
680
|
|
|||||||||
60-89 days past due
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
399
|
|
|
—
|
|
|
—
|
|
|
399
|
|
|||||||||
90+ days past due
|
|
—
|
|
|
534
|
|
|
155
|
|
|
962
|
|
|
594
|
|
|
3,033
|
|
|
—
|
|
|
—
|
|
|
5,278
|
|
|||||||||
Total single family (1)
|
|
14,076
|
|
|
86,856
|
|
|
226,681
|
|
|
248,818
|
|
|
85,047
|
|
|
327,489
|
|
|
—
|
|
|
—
|
|
|
988,967
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||||||
Single family net recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||||||
Home equity and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current
|
|
921
|
|
|
3,651
|
|
|
2,341
|
|
|
2,533
|
|
|
1,298
|
|
|
8,654
|
|
|
493,200
|
|
|
10,209
|
|
|
522,807
|
|
|||||||||
30-59 days past due
|
|
2
|
|
|
50
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
1,058
|
|
|
31
|
|
|
1,210
|
|
|||||||||
60-89 days past due
|
|
—
|
|
|
43
|
|
|
3
|
|
|
4
|
|
|
—
|
|
|
7
|
|
|
217
|
|
|
—
|
|
|
274
|
|
|||||||||
90+ days past due
|
|
—
|
|
|
12
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
1,112
|
|
|
66
|
|
|
1,253
|
|
|||||||||
Total home equity and other
|
|
923
|
|
|
3,756
|
|
|
2,360
|
|
|
2,537
|
|
|
1,298
|
|
|
8,777
|
|
|
495,587
|
|
|
10,306
|
|
|
525,544
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
(23
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(179
|
)
|
|
—
|
|
|
(217
|
)
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
35
|
|
|
111
|
|
|
—
|
|
|
149
|
|
|||||||||
Home equity and other net (charge- offs) recoveries
|
|
—
|
|
|
(23
|
)
|
|
(14
|
)
|
|
1
|
|
|
1
|
|
|
35
|
|
|
(68
|
)
|
|
—
|
|
|
(68
|
)
|
|||||||||
Total consumer portfolio
|
|
$
|
14,999
|
|
|
$
|
90,612
|
|
|
$
|
229,041
|
|
|
$
|
251,355
|
|
|
$
|
86,345
|
|
|
$
|
336,266
|
|
|
$
|
495,587
|
|
|
$
|
10,306
|
|
|
$
|
1,514,511
|
|
Year to date charge-offs
|
|
—
|
|
|
(23
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(179
|
)
|
|
—
|
|
|
(217
|
)
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
88
|
|
|
111
|
|
|
—
|
|
|
202
|
|
|||||||||
Total consumer portfolio net (charge-offs) recoveries
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
(14
|
)
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
88
|
|
|
$
|
(68
|
)
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
(1)
|
Includes $4.9 million at March 31, 2020 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.
|
|
|
As of March 31, 2020
|
||||||||||||||||||||||||||||||||||
(in thousands)
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015 and prior
|
|
Revolving
|
|
Revolving-term
|
|
Total
|
||||||||||||||||||
COMMERCIAL PORTFOLIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-owner occupied commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-4 Good
|
|
$
|
4,094
|
|
|
$
|
115,378
|
|
|
$
|
119,289
|
|
|
$
|
85,310
|
|
|
$
|
105,922
|
|
|
$
|
106,101
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
536,092
|
|
5 - Acceptable
|
|
32,606
|
|
|
76,697
|
|
|
49,136
|
|
|
62,867
|
|
|
50,674
|
|
|
51,220
|
|
|
10,197
|
|
|
226
|
|
|
333,623
|
|
|||||||||
6 - Watch
|
|
—
|
|
|
—
|
|
|
310
|
|
|
—
|
|
|
—
|
|
|
1,193
|
|
|
—
|
|
|
955
|
|
|
2,458
|
|
|||||||||
7- Special Mention
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
8 - Substandard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total non-owner occupied commercial real estate
|
|
36,700
|
|
|
192,075
|
|
|
168,735
|
|
|
148,177
|
|
|
156,596
|
|
|
158,514
|
|
|
10,195
|
|
|
1,181
|
|
|
872,173
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Non-owner occupied commercial real estate net (charge-offs) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Multifamily
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-4 Good
|
|
147,564
|
|
|
245,999
|
|
|
29,936
|
|
|
38,382
|
|
|
111,467
|
|
|
22,864
|
|
|
13,951
|
|
|
—
|
|
|
610,163
|
|
|||||||||
5 - Acceptable
|
|
128,750
|
|
|
162,736
|
|
|
58,748
|
|
|
35,120
|
|
|
85,035
|
|
|
83,491
|
|
|
1,491
|
|
|
—
|
|
|
555,371
|
|
|||||||||
6 - Watch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,248
|
|
|
460
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,708
|
|
|||||||||
7- Special Mention
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
8 - Substandard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total multifamily
|
|
276,314
|
|
|
408,735
|
|
|
88,684
|
|
|
74,750
|
|
|
196,962
|
|
|
106,355
|
|
|
15,442
|
|
|
—
|
|
|
1,167,242
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Multifamily net (charge- offs) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Multifamily construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-4 Good
|
|
(155
|
)
|
|
8,074
|
|
|
58,378
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,297
|
|
|||||||||
5 - Acceptable
|
|
—
|
|
|
—
|
|
|
54,727
|
|
|
11,920
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,647
|
|
|||||||||
6 - Watch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
7- Special Mention
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,988
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,988
|
|
|||||||||
8 - Substandard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total multifamily construction
|
|
(155
|
)
|
|
8,074
|
|
|
113,105
|
|
|
11,920
|
|
|
21,988
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154,932
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Multifamily construction net (charge-offs) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Commercial real estate construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-4 Good
|
|
—
|
|
|
—
|
|
|
5,343
|
|
|
25,263
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,606
|
|
|||||||||
5 - Acceptable
|
|
—
|
|
|
—
|
|
|
2,205
|
|
|
21,827
|
|
|
—
|
|
|
654
|
|
|
—
|
|
|
—
|
|
|
24,686
|
|
|||||||||
6 - Watch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
7- Special Mention
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
As of March 31, 2020
|
||||||||||||||||||||||||||||||||||
(in thousands)
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015 and prior
|
|
Revolving
|
|
Revolving-term
|
|
Total
|
||||||||||||||||||
8 - Substandard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total commercial real estate construction loans
|
|
—
|
|
|
—
|
|
|
7,548
|
|
|
47,090
|
|
|
—
|
|
|
654
|
|
|
—
|
|
|
—
|
|
|
55,292
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Commercial real estate construction net (charge-offs) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Single family construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-4 Good
|
|
1,468
|
|
|
2,950
|
|
|
1,136
|
|
|
354
|
|
|
—
|
|
|
148
|
|
|
10,489
|
|
|
—
|
|
|
16,545
|
|
|||||||||
5 - Acceptable
|
|
31,029
|
|
|
95,185
|
|
|
47,871
|
|
|
492
|
|
|
468
|
|
|
—
|
|
|
66,871
|
|
|
—
|
|
|
241,916
|
|
|||||||||
6 - Watch
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,799
|
|
|
—
|
|
|
1,799
|
|
|||||||||
7- Special Mention
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
8 - Substandard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total single family construction
|
|
32,497
|
|
|
98,135
|
|
|
49,007
|
|
|
846
|
|
|
468
|
|
|
148
|
|
|
79,159
|
|
|
—
|
|
|
260,260
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
163
|
|
|||||||||
Single family construction net recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
—
|
|
|
163
|
|
|||||||||
Single family construction to permanent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current
|
|
6,024
|
|
|
105,414
|
|
|
40,898
|
|
|
4,667
|
|
|
1,698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
158,701
|
|
|||||||||
30-59 days past due
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
60-89 days past due
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
90+ days past due
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total single family construction to permanent
|
|
6,024
|
|
|
105,414
|
|
|
40,898
|
|
|
4,667
|
|
|
1,698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
158,701
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Single family construction to permanent net (charge- offs) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Owner occupied commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-4 Good
|
|
1,255
|
|
|
1,756
|
|
|
2,405
|
|
|
10,895
|
|
|
41,238
|
|
|
11,003
|
|
|
—
|
|
|
—
|
|
|
68,552
|
|
|||||||||
5 - Acceptable
|
|
11,268
|
|
|
50,221
|
|
|
48,172
|
|
|
85,666
|
|
|
64,967
|
|
|
44,636
|
|
|
—
|
|
|
6,361
|
|
|
311,291
|
|
|||||||||
6 - Watch
|
|
—
|
|
|
28,499
|
|
|
2,185
|
|
|
3,491
|
|
|
24,482
|
|
|
8,872
|
|
|
600
|
|
|
1,838
|
|
|
69,967
|
|
|||||||||
7- Special Mention
|
|
—
|
|
|
—
|
|
|
12,468
|
|
|
6,378
|
|
|
—
|
|
|
1,149
|
|
|
—
|
|
|
231
|
|
|
20,226
|
|
|||||||||
8 - Substandard
|
|
—
|
|
|
253
|
|
|
1,111
|
|
|
833
|
|
|
678
|
|
|
98
|
|
|
—
|
|
|
329
|
|
|
3,302
|
|
|||||||||
Total owner occupied commercial real estate
|
|
12,523
|
|
|
80,729
|
|
|
66,341
|
|
|
107,263
|
|
|
131,365
|
|
|
65,758
|
|
|
600
|
|
|
8,759
|
|
|
473,338
|
|
|
|
As of March 31, 2020
|
||||||||||||||||||||||||||||||||||
(in thousands)
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015 and prior
|
|
Revolving
|
|
Revolving-term
|
|
Total
|
||||||||||||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Owner occupied commercial real estate net (charge-offs) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Commercial business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
1-4 Good
|
|
10,107
|
|
|
15,333
|
|
|
5,533
|
|
|
262
|
|
|
50
|
|
|
782
|
|
|
52,538
|
|
|
—
|
|
|
84,605
|
|
|||||||||
5 - Acceptable
|
|
16,511
|
|
|
61,192
|
|
|
37,408
|
|
|
38,253
|
|
|
23,631
|
|
|
20,729
|
|
|
72,657
|
|
|
3,709
|
|
|
274,090
|
|
|||||||||
6 - Watch
|
|
1,392
|
|
|
14,133
|
|
|
23,503
|
|
|
7,715
|
|
|
67
|
|
|
421
|
|
|
12,202
|
|
|
1,520
|
|
|
60,953
|
|
|||||||||
7- Special Mention
|
|
—
|
|
|
643
|
|
|
4,054
|
|
|
68
|
|
|
1,262
|
|
|
1,033
|
|
|
2,385
|
|
|
190
|
|
|
9,635
|
|
|||||||||
8 - Substandard
|
|
—
|
|
|
110
|
|
|
3,833
|
|
|
455
|
|
|
552
|
|
|
436
|
|
|
2,016
|
|
|
95
|
|
|
7,497
|
|
|||||||||
Total commercial business
|
|
28,010
|
|
|
91,411
|
|
|
74,331
|
|
|
46,753
|
|
|
25,562
|
|
|
23,401
|
|
|
141,798
|
|
|
5,514
|
|
|
436,780
|
|
|||||||||
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(143
|
)
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||||||
Commercial business net (charge-offs) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(102
|
)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|||||||||
Total commercial portfolio
|
|
$
|
391,913
|
|
|
$
|
984,573
|
|
|
$
|
608,649
|
|
|
$
|
441,466
|
|
|
$
|
534,639
|
|
|
$
|
354,830
|
|
|
$
|
247,194
|
|
|
$
|
15,454
|
|
|
$
|
3,578,718
|
|
Year to date charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(143
|
)
|
|||||||||
Year to date Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
187
|
|
|
—
|
|
|
—
|
|
|
187
|
|
|||||||||
Total commercial portfolio (charge-offs) recoveries
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
$
|
(102
|
)
|
|
$
|
187
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44
|
|
Total loans held for investment
|
|
$
|
406,912
|
|
|
$
|
1,075,185
|
|
|
$
|
837,690
|
|
|
$
|
692,821
|
|
|
$
|
620,984
|
|
|
$
|
691,096
|
|
|
$
|
742,781
|
|
|
$
|
25,760
|
|
|
$
|
5,093,229
|
|
Year to date charge-offs
|
|
—
|
|
|
(23
|
)
|
|
(15
|
)
|
|
(41
|
)
|
|
(102
|
)
|
|
—
|
|
|
(179
|
)
|
|
—
|
|
|
(360
|
)
|
|||||||||
Year to date recoveries
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
275
|
|
|
111
|
|
|
—
|
|
|
389
|
|
|||||||||
Year to date net (charge-offs) recoveries
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
(14
|
)
|
|
$
|
(40
|
)
|
|
$
|
(101
|
)
|
|
$
|
275
|
|
|
$
|
(68
|
)
|
|
$
|
—
|
|
|
$
|
29
|
|
|
|
At March 31, 2020
|
||||||||||||||||||||||
(in thousands)
|
|
Land
|
|
1-4 Family
|
|
Multifamily
|
|
Non-residential real estate
|
|
Other non-real estate
|
|
Total
|
||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family
|
|
$
|
—
|
|
|
$
|
1,251
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,251
|
|
Home equity loans and other
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||||
Total consumer loans
|
|
—
|
|
|
1,270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,270
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
|
1,789
|
|
|
—
|
|
|
—
|
|
|
1,261
|
|
|
—
|
|
|
3,050
|
|
||||||
Commercial business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,183
|
|
|
3,183
|
|
||||||
Total commercial and industrial loans
|
|
1,789
|
|
|
—
|
|
|
—
|
|
|
1,261
|
|
|
3,183
|
|
|
6,233
|
|
||||||
Total collateral-dependent loans
|
|
$
|
1,789
|
|
|
$
|
1,270
|
|
|
$
|
—
|
|
|
$
|
1,261
|
|
|
$
|
3,183
|
|
|
$
|
7,503
|
|
|
At March 31, 2020
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
983,478
|
|
|
$
|
5,489
|
|
|
$
|
988,967
|
|
Home equity and other
|
524,291
|
|
|
1,253
|
|
|
525,544
|
|
|||
Total consumer loans
|
1,507,769
|
|
|
6,742
|
|
|
1,514,511
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Non-owner occupied commercial real estate
|
872,173
|
|
|
—
|
|
|
872,173
|
|
|||
Multifamily
|
1,167,242
|
|
|
—
|
|
|
1,167,242
|
|
|||
Construction/land development
|
|
|
|
|
|
|
|||||
Multifamily construction
|
154,932
|
|
|
—
|
|
|
154,932
|
|
|||
Commercial real estate construction
|
55,292
|
|
|
—
|
|
|
55,292
|
|
|||
Single family construction
|
260,260
|
|
|
—
|
|
|
260,260
|
|
|||
Single family construction to permanent
|
156,485
|
|
|
—
|
|
|
156,485
|
|
|||
Total commercial real estate loans
|
2,666,384
|
|
|
—
|
|
|
2,666,384
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
470,288
|
|
|
3,050
|
|
|
473,338
|
|
|||
Commercial business
|
435,813
|
|
|
3,183
|
|
|
438,996
|
|
|||
Total commercial and industrial loans
|
906,101
|
|
|
6,233
|
|
|
912,334
|
|
|||
|
$
|
5,080,254
|
|
|
$
|
12,975
|
|
|
$
|
5,093,229
|
|
|
At December 31, 2019 (2)
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
1,067,342
|
|
|
$
|
5,364
|
|
|
$
|
1,072,706
|
|
Home equity and other
|
552,216
|
|
|
1,160
|
|
|
553,376
|
|
|||
Total consumer loans
|
1,619,558
|
|
|
6,524
|
|
|
1,626,082
|
|
|||
Commercial real estate loans
|
|
|
|
|
|
||||||
Non-owner occupied commercial real estate
|
895,546
|
|
|
—
|
|
|
895,546
|
|
|||
Multifamily
|
999,140
|
|
|
—
|
|
|
999,140
|
|
|||
Construction/land development
|
701,762
|
|
|
—
|
|
|
701,762
|
|
|||
Total commercial real estate loans
|
2,596,448
|
|
|
—
|
|
|
2,596,448
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
474,425
|
|
|
2,891
|
|
|
477,316
|
|
|||
Commercial business
|
411,264
|
|
|
3,446
|
|
|
414,710
|
|
|||
Total commercial and industrial loans
|
885,689
|
|
|
6,337
|
|
|
892,026
|
|
|||
|
$
|
5,101,695
|
|
|
$
|
12,861
|
|
|
$
|
5,114,556
|
|
(1)
|
Includes $4.9 million and $3.5 million of loans at March 31, 2020 and December 31, 2019, 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.
|
(2)
|
Net deferred loans fees and costs of $24.5 million were included within the carrying amounts of the loan balances as of December 31, 2019, in order to conform to the current period presentation.
|
|
At March 31, 2020
|
|
At December 31, 2019
|
||||||||||||||||||||
(in thousands)
|
Nonaccrual
|
|
Nonaccrual with no related ACL
|
|
90 days or
more past
due and
accruing
|
|
Nonaccrual
|
|
Nonaccrual with no related ACL
|
|
90 days or
more past
due and
accruing
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single family
|
$
|
5,489
|
|
|
$
|
1,461
|
|
|
$
|
20,845
|
|
|
$
|
5,364
|
|
|
$
|
1,652
|
|
|
$
|
19,702
|
|
Home equity and other
|
1,253
|
|
|
20
|
|
|
—
|
|
|
1,160
|
|
|
9
|
|
|
—
|
|
||||||
Total consumer loans
|
6,742
|
|
|
1,481
|
|
|
20,845
|
|
|
6,524
|
|
|
1,661
|
|
|
19,702
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
3,050
|
|
|
3,049
|
|
|
—
|
|
|
2,891
|
|
|
2,892
|
|
|
—
|
|
||||||
Commercial business
|
3,183
|
|
|
2,716
|
|
|
—
|
|
|
3,446
|
|
|
2,954
|
|
|
—
|
|
||||||
Total commercial and industrial loans
|
6,233
|
|
|
5,765
|
|
|
—
|
|
|
6,337
|
|
|
5,846
|
|
|
—
|
|
||||||
|
$
|
12,975
|
|
|
$
|
7,246
|
|
|
$
|
20,845
|
|
|
$
|
12,861
|
|
|
$
|
7,507
|
|
|
$
|
19,702
|
|
|
At March 31, 2020
|
|
||||||||||||||||||||||||||
(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
|
$
|
5,872
|
|
|
$
|
2,501
|
|
|
$
|
26,334
|
|
|
$
|
34,707
|
|
|
$
|
954,260
|
|
(1)
|
$
|
988,967
|
|
|
$
|
20,845
|
|
(2)
|
Home equity and other
|
1,210
|
|
|
274
|
|
|
1,253
|
|
|
2,737
|
|
|
522,807
|
|
|
525,544
|
|
|
—
|
|
|
|||||||
Total consumer loans
|
7,082
|
|
|
2,775
|
|
|
27,587
|
|
|
37,444
|
|
|
1,477,067
|
|
|
1,514,511
|
|
|
20,845
|
|
|
|||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Non-owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
872,173
|
|
|
872,173
|
|
|
—
|
|
|
|||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,167,242
|
|
|
1,167,242
|
|
|
—
|
|
|
|||||||
Construction/land development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Multifamily construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154,932
|
|
|
154,932
|
|
|
—
|
|
|
|||||||
Commercial real estate construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,292
|
|
|
55,292
|
|
|
—
|
|
|
|||||||
Single family construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
260,260
|
|
|
260,260
|
|
|
—
|
|
|
|||||||
Single family construction to permanent
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
156,485
|
|
|
156,485
|
|
|
—
|
|
|
|||||||
Total commercial real estate loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,666,384
|
|
|
2,666,384
|
|
|
—
|
|
|
|||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
3,050
|
|
|
3,050
|
|
|
470,288
|
|
|
473,338
|
|
|
—
|
|
|
|||||||
Commercial business
|
—
|
|
|
—
|
|
|
3,183
|
|
|
3,183
|
|
|
435,813
|
|
|
438,996
|
|
|
—
|
|
|
|||||||
Total commercial and industrial loans
|
—
|
|
|
—
|
|
|
6,233
|
|
|
6,233
|
|
|
906,101
|
|
|
912,334
|
|
|
—
|
|
|
|||||||
|
$
|
7,082
|
|
|
$
|
2,775
|
|
|
$
|
33,820
|
|
|
$
|
43,677
|
|
|
$
|
5,049,552
|
|
|
$
|
5,093,229
|
|
|
$
|
20,845
|
|
|
|
At December 31, 2019(3)
|
|
||||||||||||||||||||||||||
(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
|
$
|
5,694
|
|
|
$
|
4,261
|
|
|
$
|
25,066
|
|
|
$
|
35,021
|
|
|
$
|
1,037,685
|
|
(1)
|
$
|
1,072,706
|
|
|
$
|
19,702
|
|
(2)
|
Home equity and other
|
837
|
|
|
372
|
|
|
1,160
|
|
|
2,369
|
|
|
551,007
|
|
|
553,376
|
|
|
—
|
|
|
|||||||
Total consumer loans
|
6,531
|
|
|
4,633
|
|
|
26,226
|
|
|
37,390
|
|
|
1,588,692
|
|
|
1,626,082
|
|
|
19,702
|
|
|
|||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Non-owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
895,546
|
|
|
895,546
|
|
|
—
|
|
|
|||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
999,140
|
|
|
999,140
|
|
|
—
|
|
|
|||||||
Construction/land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
701,762
|
|
|
701,762
|
|
|
—
|
|
|
|||||||
Total commercial real estate loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,596,448
|
|
|
2,596,448
|
|
|
—
|
|
|
|||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
2,891
|
|
|
2,891
|
|
|
474,425
|
|
|
477,316
|
|
|
—
|
|
|
|||||||
Commercial business
|
44
|
|
|
—
|
|
|
3,446
|
|
|
3,490
|
|
|
411,220
|
|
|
414,710
|
|
|
—
|
|
|
|||||||
Total commercial and industrial loans
|
44
|
|
|
—
|
|
|
6,337
|
|
|
6,381
|
|
|
885,645
|
|
|
892,026
|
|
|
—
|
|
|
|||||||
|
$
|
6,575
|
|
|
$
|
4,633
|
|
|
$
|
32,563
|
|
|
$
|
43,771
|
|
|
$
|
5,070,785
|
|
|
$
|
5,114,556
|
|
|
$
|
19,702
|
|
|
(1)
|
Includes $4.9 million and $3.5 million of loans at March 31, 2020 and December 31, 2019, 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.
|
(3)
|
Net deferred loans fees and costs of $24.5 million were included within the carrying amounts of the loan balances as of December 31, 2019, in order to conform to the current period presentation.
|
|
Three Months Ended March 31, 2020
|
|||||||||||
(dollars in thousands)
|
Concession type
|
|
Number of loan
modifications |
|
Recorded
investment |
|
Related charge-
offs |
|||||
|
|
|
|
|
|
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|||||
Single family
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
11
|
|
|
$
|
2,213
|
|
|
$
|
—
|
|
|
Payment restructure
|
|
3
|
|
|
454
|
|
|
—
|
|
||
Total consumer
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
11
|
|
|
2,213
|
|
|
—
|
|
||
|
Payment restructure
|
|
3
|
|
|
454
|
|
|
—
|
|
||
|
|
|
14
|
|
|
2,667
|
|
|
—
|
|
||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|||||
Owner occupied commercial real estate
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
678
|
|
|
—
|
|
||
Commercial business
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
1,125
|
|
|
—
|
|
||
Total commercial and industrial
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
2
|
|
|
1,803
|
|
|
—
|
|
||
|
|
|
2
|
|
|
1,803
|
|
|
—
|
|
||
Total loans
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
11
|
|
|
2,213
|
|
|
—
|
|
||
|
Payment restructure
|
|
5
|
|
|
2,257
|
|
|
—
|
|
||
|
|
|
16
|
|
|
$
|
4,470
|
|
|
$
|
—
|
|
|
Three Months Ended March 31, 2019
|
|||||||||||
(dollars in thousands)
|
Concession type
|
|
Number of loan
modifications |
|
Recorded
investment |
|
Related charge-
offs |
|||||
|
|
|
|
|
|
|
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|||||
Single family
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
5
|
|
|
$
|
1,192
|
|
|
$
|
—
|
|
|
Payment restructure
|
|
48
|
|
|
9,761
|
|
|
—
|
|
||
Total consumer
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
5
|
|
|
1,192
|
|
|
—
|
|
||
|
Payment restructure
|
|
48
|
|
|
9,761
|
|
|
—
|
|
||
|
|
|
53
|
|
|
10,953
|
|
|
—
|
|
||
Commercial real estate loans
|
|
|
|
|
|
|
|
|||||
Construction/land development
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
4,675
|
|
|
—
|
|
||
Total commercial real estate
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
4,675
|
|
|
—
|
|
||
|
|
|
1
|
|
|
4,675
|
|
|
—
|
|
||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|||||
Owner occupied commercial real estate
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
5,840
|
|
|
—
|
|
||
Total commercial and industrial
|
|
|
|
|
|
|
|
|||||
|
Payment restructure
|
|
1
|
|
|
5,840
|
|
|
—
|
|
||
|
|
|
1
|
|
|
5,840
|
|
|
—
|
|
||
Total loans
|
|
|
|
|
|
|
|
|||||
|
Interest rate reduction
|
|
5
|
|
|
1,192
|
|
|
—
|
|
||
|
Payment restructure
|
|
50
|
|
|
20,276
|
|
|
—
|
|
||
|
|
|
55
|
|
|
$
|
21,468
|
|
|
$
|
—
|
|
•
|
The modification is in response to the National Emergency;
|
•
|
The borrower was current at the time the modification program was implemented; and
|
•
|
The modification is short-term
|
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
||||||||||
(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
|
|
|
$
|
1,281
|
|
|
5
|
|
|
$
|
1,059
|
|
|
6
|
|
|
$
|
1,281
|
|
|
5
|
|
|
$
|
1,059
|
|
|
At December 31, 2019
|
||||||||||||||||||
(in thousands)
|
Pass
|
|
Watch
|
|
Special mention
|
|
Substandard
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family
|
$
|
1,053,648
|
|
(1)
|
$
|
2,518
|
|
|
$
|
8,802
|
|
|
$
|
5,364
|
|
|
$
|
1,070,332
|
|
Home equity and other
|
530,784
|
|
|
318
|
|
|
664
|
|
|
1,160
|
|
|
532,926
|
|
|||||
Total consumer loans
|
1,584,432
|
|
|
2,836
|
|
|
9,466
|
|
|
6,524
|
|
|
1,603,258
|
|
|||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-owner occupied commercial real estate
|
892,890
|
|
|
2,006
|
|
|
—
|
|
|
—
|
|
|
894,896
|
|
|||||
Multifamily
|
991,696
|
|
|
4,802
|
|
|
—
|
|
|
—
|
|
|
996,498
|
|
|||||
Construction/land development
|
669,751
|
|
|
11,694
|
|
|
20,954
|
|
|
—
|
|
|
702,399
|
|
|||||
Total commercial real estate loans
|
2,554,337
|
|
|
18,502
|
|
|
20,954
|
|
|
—
|
|
|
2,593,793
|
|
|||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner occupied commercial real estate
|
422,434
|
|
|
37,885
|
|
|
12,709
|
|
|
5,144
|
|
|
478,172
|
|
|||||
Commercial business
|
351,911
|
|
|
50,149
|
|
|
9,405
|
|
|
3,415
|
|
|
414,880
|
|
|||||
Total commercial and industrial loans
|
774,345
|
|
|
88,034
|
|
|
22,114
|
|
|
8,559
|
|
|
893,052
|
|
|||||
|
$
|
4,913,114
|
|
|
$
|
109,372
|
|
|
$
|
52,534
|
|
|
$
|
15,083
|
|
|
$
|
5,090,103
|
|
(1)
|
Includes $3.5 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 December 31, 2019
|
|
||||||||||||||||||||||
(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
|
$
|
6,333
|
|
|
$
|
117
|
|
|
$
|
6,450
|
|
|
$
|
1,005,386
|
|
|
$
|
61,503
|
|
|
$
|
1,066,889
|
|
|
Home equity and other
|
6,815
|
|
|
28
|
|
|
6,843
|
|
|
532,038
|
|
|
863
|
|
|
532,901
|
|
|
||||||
Total consumer loans
|
13,148
|
|
|
145
|
|
|
13,293
|
|
|
1,537,424
|
|
|
62,366
|
|
|
1,599,790
|
|
|
||||||
Commercial real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-owner occupied commercial real estate
|
7,249
|
|
|
—
|
|
|
7,249
|
|
|
894,896
|
|
|
—
|
|
|
894,896
|
|
|
||||||
Multifamily
|
7,015
|
|
|
—
|
|
|
7,015
|
|
|
996,498
|
|
|
—
|
|
|
996,498
|
|
|
||||||
Construction/land development
|
8,679
|
|
|
—
|
|
|
8,679
|
|
|
702,399
|
|
|
—
|
|
|
702,399
|
|
|
||||||
Total commercial real estate loans
|
22,943
|
|
|
—
|
|
|
22,943
|
|
|
2,593,793
|
|
|
—
|
|
|
2,593,793
|
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
3,640
|
|
|
—
|
|
|
3,640
|
|
|
475,281
|
|
|
2,891
|
|
|
478,172
|
|
|
||||||
Commercial business
|
2,953
|
|
|
8
|
|
|
2,961
|
|
|
411,386
|
|
|
3,494
|
|
|
414,880
|
|
|
||||||
Total commercial and industrial loans
|
6,593
|
|
|
8
|
|
|
6,601
|
|
|
886,667
|
|
|
6,385
|
|
|
893,052
|
|
|
||||||
Total loans evaluated for impairment
|
42,684
|
|
|
153
|
|
|
42,837
|
|
|
5,017,884
|
|
|
68,751
|
|
|
5,086,635
|
|
|
||||||
Loans held for investment carried at fair value
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,468
|
|
(1)
|
||||||
Total loans held for investment
|
$
|
42,684
|
|
|
$
|
153
|
|
|
$
|
42,837
|
|
|
$
|
5,017,884
|
|
|
$
|
68,751
|
|
|
$
|
5,090,103
|
|
|
(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 December 31, 2019
|
||||||||||
(in thousands)
|
Recorded
investment (1)
|
|
Unpaid
principal
balance (2)
|
|
Related
allowance
|
||||||
|
|
|
|
|
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family(3)
|
$
|
60,009
|
|
|
$
|
60,448
|
|
|
$
|
—
|
|
Home equity and other
|
472
|
|
|
472
|
|
|
—
|
|
|||
Total consumer loans
|
60,481
|
|
|
60,920
|
|
|
—
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
2,891
|
|
|
3,013
|
|
|
—
|
|
|||
Commercial business
|
2,954
|
|
|
3,267
|
|
|
—
|
|
|||
Total commercial and industrial loans
|
5,845
|
|
|
6,280
|
|
|
—
|
|
|||
|
$
|
66,326
|
|
|
$
|
67,200
|
|
|
$
|
—
|
|
With an allowance recorded:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family
|
$
|
1,494
|
|
|
$
|
1,494
|
|
|
$
|
117
|
|
Home equity and other
|
391
|
|
|
391
|
|
|
28
|
|
|||
Total consumer loans
|
1,885
|
|
|
1,885
|
|
|
145
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Commercial business
|
540
|
|
|
919
|
|
|
8
|
|
|||
Total commercial and industrial loans
|
540
|
|
|
919
|
|
|
8
|
|
|||
|
$
|
2,425
|
|
|
$
|
2,804
|
|
|
$
|
153
|
|
Total:
|
|
|
|
|
|
||||||
Consumer loans
|
|
|
|
|
|
||||||
Single family (3)
|
$
|
61,503
|
|
|
$
|
61,942
|
|
|
$
|
117
|
|
Home equity and other
|
863
|
|
|
863
|
|
|
28
|
|
|||
Total consumer loans
|
62,366
|
|
|
62,805
|
|
|
145
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
2,891
|
|
|
3,013
|
|
|
—
|
|
|||
Commercial business
|
3,494
|
|
|
4,186
|
|
|
8
|
|
|||
Total commercial and industrial loans
|
6,385
|
|
|
7,199
|
|
|
8
|
|
|||
Total impaired loans
|
$
|
68,751
|
|
|
$
|
70,004
|
|
|
$
|
153
|
|
(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 $59.8 million in single family performing TDRs.
|
|
|
Three Months Ended March 31, 2019
|
||||||
|
|
|
|
|
||||
(in thousands)
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||
Consumer loans
|
|
|
|
|
||||
Single family
|
|
$
|
68,548
|
|
|
$
|
706
|
|
Home equity and other
|
|
1,180
|
|
|
18
|
|
||
Total consumer loans
|
|
69,728
|
|
|
724
|
|
||
Commercial real estate loans
|
|
|
|
|
||||
Non-owner occupied commercial real estate
|
|
6
|
|
|
—
|
|
||
Multifamily
|
|
490
|
|
|
7
|
|
||
Construction/land development
|
|
2,701
|
|
|
—
|
|
||
Total commercial real estate loans
|
|
3,197
|
|
|
7
|
|
||
Commercial and industrial loans
|
|
|
|
|
||||
Owner occupied commercial real estate
|
|
4,128
|
|
|
93
|
|
||
Commercial business
|
|
1,937
|
|
|
11
|
|
||
Total commercial and industrial loans
|
|
6,065
|
|
|
104
|
|
||
|
|
$
|
78,990
|
|
|
$
|
835
|
|
|
(in thousands)
|
At March 31,
2020 |
|
At December 31,
2019 |
||||
|
|
|
|
||||
Noninterest-bearing accounts
|
$
|
1,016,264
|
|
|
$
|
907,918
|
|
NOW accounts, 0.00% to 0.70% at March 31, 2020 and 0.00% to 1.19% at December 31, 2019
|
420,606
|
|
|
373,832
|
|
||
Statement savings accounts, due on demand, 0.05% to 1.13% at March 31, 2020 and December 31, 2019
|
222,821
|
|
|
219,182
|
|
||
Money market accounts, due on demand, 0.00% to 2.18% at March 31, 2020 and 0.00% to 2.42% at December 31, 2019
|
2,299,442
|
|
|
2,224,494
|
|
||
Certificates of deposit, 0.10% to 3.06% at March 31, 2020 and December 31, 2019
|
1,297,924
|
|
|
1,614,533
|
|
||
|
$
|
5,257,057
|
|
|
$
|
5,339,959
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
NOW accounts
|
$
|
341
|
|
|
$
|
375
|
|
|
Statement savings accounts
|
96
|
|
|
149
|
|
|
||
Money market accounts
|
6,306
|
|
|
5,803
|
|
|
||
Certificates of deposit
|
8,040
|
|
|
7,985
|
|
|
||
|
$
|
14,783
|
|
|
$
|
14,312
|
|
|
(in thousands)
|
At March 31,
2020 |
||
|
|
||
Within one year
|
$
|
1,040,961
|
|
One to two years
|
175,905
|
|
|
Two to three years
|
56,234
|
|
|
Three to four years
|
11,334
|
|
|
Four to five years
|
13,457
|
|
|
Thereafter
|
33
|
|
|
|
$
|
1,297,924
|
|
|
At March 31, 2020
|
||||||||||
|
Notional amount
|
|
Fair value derivatives
|
||||||||
(in thousands)
|
|
|
Asset
|
|
Liability
|
||||||
|
|
|
|
|
|
||||||
Forward sale commitments
|
$
|
2,208,952
|
|
|
$
|
16,269
|
|
|
$
|
(19,614
|
)
|
Interest rate lock and purchase loan commitments
|
439,186
|
|
|
13,565
|
|
|
(63
|
)
|
|||
Interest rate swaps
|
568,635
|
|
|
45,076
|
|
|
(27,850
|
)
|
|||
Eurodollar futures
|
1,012,000
|
|
|
—
|
|
|
(41
|
)
|
|||
Total derivatives before netting
|
$
|
4,228,773
|
|
|
74,910
|
|
|
(47,568
|
)
|
||
Netting adjustment/Cash collateral (1)
|
|
|
(41,435
|
)
|
|
42,458
|
|
||||
Carrying value on consolidated statements of financial condition
|
|
|
$
|
33,475
|
|
|
$
|
(5,110
|
)
|
|
At December 31, 2019
|
||||||||||
|
Notional amount
|
|
Fair value derivatives
|
||||||||
(in thousands)
|
|
|
Asset
|
|
Liability
|
||||||
|
|
|
|
|
|
||||||
Forward sale commitments
|
$
|
651,838
|
|
|
$
|
830
|
|
|
$
|
(492
|
)
|
Interest rate lock and purchase loan commitments
|
124,379
|
|
|
2,281
|
|
|
(58
|
)
|
|||
Interest rate swaps
|
688,516
|
|
|
27,097
|
|
|
(10,889
|
)
|
|||
Eurodollar futures
|
2,232,000
|
|
|
3
|
|
|
—
|
|
|||
Total derivatives before netting
|
$
|
3,696,733
|
|
|
30,211
|
|
|
(11,439
|
)
|
||
Netting adjustment/Cash collateral (1)
|
|
|
(21,414
|
)
|
|
9,101
|
|
||||
Carrying value on consolidated statements of financial condition(2)
|
|
|
$
|
8,797
|
|
|
$
|
(2,338
|
)
|
(1)
|
Includes net cash collateral paid of $1.0 million and net cash collateral received of $12.3 million at March 31, 2020 and December 31, 2019, 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.
|
(2)
|
Includes both continuing and discontinued operations.
|
|
At March 31, 2020
|
||||||||||||||||||
(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
|
$
|
74,910
|
|
|
$
|
(41,435
|
)
|
|
$
|
33,475
|
|
|
$
|
—
|
|
|
$
|
33,475
|
|
Derivative liabilities
|
(47,568
|
)
|
|
42,458
|
|
|
(5,110
|
)
|
|
—
|
|
|
(5,110
|
)
|
|
At December 31, 2019
|
||||||||||||||||||
(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
|
$
|
30,211
|
|
|
$
|
(21,414
|
)
|
|
$
|
8,797
|
|
|
$
|
—
|
|
|
$
|
8,797
|
|
Derivative liabilities
|
(11,439
|
)
|
|
9,101
|
|
|
(2,338
|
)
|
|
—
|
|
|
(2,338
|
)
|
(1)
|
Includes net cash collateral paid of $1.0 million and net cash collateral received of $12.3 million at March 31, 2020 and December 31, 2019, 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 March 31,
|
|
|||||||
(in thousands)
|
2020
|
|
2019
|
|
|||||
|
|
|
|
|
|||||
Recognized in noninterest income:
|
|
|
|
|
|||||
Net gain on loan origination and sale activities (1)
|
$
|
5,140
|
|
|
$
|
146
|
|
|
|
Loan servicing income (2)
|
19,921
|
|
|
3,683
|
|
|
|||
Other (3)
|
(494
|
)
|
|
9
|
|
|
|||
|
$
|
24,567
|
|
|
$
|
3,838
|
|
(4
|
)
|
(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, futures and forward contracts used as an economic hedge of single family MSRs.
|
(3)
|
Comprised of interest rate swaps used as an economic hedge of loans held for investment.
|
(4)
|
Includes both continuing and discontinued operations.
|
(in thousands)
|
At March 31,
2020 |
|
At December 31,
2019 |
||||
|
|
|
|
||||
Commercial
|
$
|
2,432
|
|
|
$
|
128,841
|
|
Single family (1)
|
138,095
|
|
|
105,458
|
|
||
Total loans held for sale
|
$
|
140,527
|
|
|
$
|
234,299
|
|
(1)
|
Includes loans from discontinued operations of $26.1 million at December 31, 2019 with no similar balance at March 31, 2020.
|
|
Three Months Ended March 31,
|
|
|||||||
(in thousands)
|
2020
|
|
2019
|
|
|||||
|
|
|
|
|
|||||
Commercial
|
$
|
282,457
|
|
|
$
|
164,071
|
|
|
|
Single family
|
309,853
|
|
|
1,004,849
|
|
(1
|
)
|
||
Total loans sold (2)
|
$
|
592,310
|
|
|
$
|
1,168,920
|
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
Commercial
|
$
|
4,710
|
|
|
$
|
2,660
|
|
|
Single family (1)
|
17,831
|
|
|
35,435
|
|
|
||
Gain on loan origination and sale activities (2)
|
$
|
22,541
|
|
|
$
|
38,095
|
|
|
(in thousands)
|
At March 31,
2020 |
|
At December 31,
2019 |
||||
|
|
|
|
||||
Commercial
|
$
|
1,661,038
|
|
|
$
|
1,618,876
|
|
Single family
|
6,772,912
|
|
|
7,023,441
|
|
||
Total loans serviced for others
|
$
|
8,433,950
|
|
|
$
|
8,642,317
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
Balance, beginning of period
|
$
|
2,871
|
|
|
$
|
3,120
|
|
|
Additions, net of adjustments (1)
|
(316
|
)
|
|
253
|
|
|
||
Realized losses (2)
|
(73
|
)
|
|
(117
|
)
|
|
||
Balance, end of period
|
$
|
2,482
|
|
|
$
|
3,256
|
|
|
(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 expenses.
|
|
Three Months Ended March 31,
|
|
|||||||
(in thousands)
|
2020
|
|
2019
|
|
|||||
|
|
|
|
|
|||||
Servicing income, net:
|
|
|
|
|
|||||
Servicing fees and other
|
$
|
7,535
|
|
|
$
|
16,577
|
|
(5
|
)
|
Changes in fair value of single family MSRs due to modeled amortization (1)
|
(3,494
|
)
|
|
(8,983
|
)
|
|
|||
Amortization of multifamily and SBA MSRs
|
(1,511
|
)
|
|
(1,376
|
)
|
|
|||
|
2,530
|
|
|
6,218
|
|
|
|||
Risk management, single family MSRs:
|
|
|
|
|
|||||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2)(3)
|
(16,844
|
)
|
|
(4,498
|
)
|
(5
|
)
|
||
Net gain from derivatives economically hedging MSR
|
19,921
|
|
|
3,683
|
|
|
|||
|
3,077
|
|
|
(815
|
)
|
|
|||
Loan servicing income (4)
|
$
|
5,607
|
|
|
$
|
5,403
|
|
|
(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 $774 thousand, net of transaction costs, brokerage fees and prepayment reserves, resulting from the sales of single family MSRs during the three months ended March 31, 2019.
|
(4)
|
Includes $3.6 million from discontinued operations for the three months ended March 31, 2019.
|
(5)
|
The Company has corrected an error of $780 thousand for the three months ended March 31, 2019 due to incorrect presentation of pre-tax net income from the sale of single family MSRs within servicing fees and other instead of within changes in fair value of MSRs due to changes in market inputs and/or model updates of $17.4 million and $(5.3) million, respectively, to amounts as corrected of $16.6 million and $(4.5) million.
|
|
Three Months Ended March 31,
|
|
||||
(rates per annum) (1)
|
2020
|
|
2019
|
|
||
|
|
|
|
|
||
Constant prepayment rate ("CPR") (2)
|
15.61
|
%
|
|
19.84
|
%
|
|
Discount rate (3)
|
7.83
|
%
|
|
9.73
|
%
|
|
(1)
|
Weighted average rates during the period for sales of loans with similar characteristics.
|
(2)
|
Represents the expected lifetime average.
|
(3)
|
Discount rate is based on market observations.
|
(dollars in thousands)
|
At March 31, 2020
|
||
|
|
||
Fair value of single family MSR
|
$
|
49,933
|
|
Expected weighted-average life (in years)
|
3.52
|
|
|
Constant prepayment rate (1)
|
18.01
|
%
|
|
Impact on fair value of 25 basis points adverse change in interest rates
|
$
|
(3,751
|
)
|
Impact on fair value of 50 basis points adverse change in interest rates
|
$
|
(6,853
|
)
|
Discount rate
|
7.41
|
%
|
|
Impact on fair value of 100 basis points increase
|
$
|
(1,474
|
)
|
Impact on fair value of 200 basis points increase
|
$
|
(2,867
|
)
|
(1)
|
Represents the expected lifetime average.
|
|
Three Months Ended March 31,
|
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
|
||||
|
|
|
|
|
|
||||
Beginning balance
|
$
|
68,109
|
|
|
$
|
252,168
|
|
|
|
Additions and amortization:
|
|
|
|
|
|
||||
Originations
|
2,162
|
|
|
7,287
|
|
|
|
||
Sale of single family MSRs
|
—
|
|
|
(176,944
|
)
|
|
|
||
Changes due to amortization (1)
|
(3,494
|
)
|
|
(8,983
|
)
|
|
|
||
Net additions and amortization
|
(1,332
|
)
|
|
(178,640
|
)
|
|
|
||
Changes in fair value of MSRs due to changes in market inputs and/or model updates (2)
|
(16,844
|
)
|
|
(5,278
|
)
|
|
|
||
Ending balance
|
$
|
49,933
|
|
|
$
|
68,250
|
|
|
|
(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.
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
Beginning balance
|
$
|
29,494
|
|
|
$
|
28,328
|
|
|
Origination
|
1,957
|
|
|
630
|
|
|
||
Amortization
|
(1,331
|
)
|
|
(1,266
|
)
|
|
||
Ending balance
|
$
|
30,120
|
|
|
$
|
27,692
|
|
|
(in thousands)
|
At March 31, 2020
|
||
|
|
||
Remainder of 2020
|
$
|
3,248
|
|
2021
|
4,229
|
|
|
2022
|
4,011
|
|
|
2023
|
3,798
|
|
|
2024
|
3,542
|
|
|
2025
|
3,206
|
|
|
2026 and thereafter
|
8,086
|
|
|
Carrying value of multifamily MSR
|
$
|
30,120
|
|
(in thousands)
|
Fair Value at March 31, 2020
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
84,746
|
|
|
$
|
—
|
|
|
$
|
81,948
|
|
|
$
|
2,798
|
|
Commercial
|
43,918
|
|
|
—
|
|
|
43,918
|
|
|
—
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
294,153
|
|
|
—
|
|
|
294,153
|
|
|
—
|
|
||||
Commercial
|
160,770
|
|
|
—
|
|
|
160,770
|
|
|
—
|
|
||||
Municipal bonds
|
452,633
|
|
|
—
|
|
|
452,633
|
|
|
—
|
|
||||
Corporate debt securities
|
16,611
|
|
|
—
|
|
|
16,524
|
|
|
87
|
|
||||
U.S. Treasury securities
|
1,314
|
|
|
—
|
|
|
1,314
|
|
|
—
|
|
||||
Single family loans held for sale
|
138,095
|
|
|
—
|
|
|
138,095
|
|
|
—
|
|
||||
Single family loans held for investment
|
4,926
|
|
|
—
|
|
|
—
|
|
|
4,926
|
|
||||
Single family mortgage servicing rights
|
49,933
|
|
|
—
|
|
|
—
|
|
|
49,933
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Forward sale commitments
|
16,269
|
|
|
—
|
|
|
16,269
|
|
|
—
|
|
||||
Interest rate lock and purchase loan commitments
|
13,565
|
|
|
—
|
|
|
—
|
|
|
13,565
|
|
||||
Interest rate swaps
|
45,076
|
|
|
—
|
|
|
45,076
|
|
|
—
|
|
||||
Total assets
|
$
|
1,322,009
|
|
|
$
|
—
|
|
|
$
|
1,250,700
|
|
|
$
|
71,309
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Eurodollar futures
|
$
|
41
|
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward sale commitments
|
19,614
|
|
|
—
|
|
|
19,614
|
|
|
—
|
|
||||
Interest rate lock and purchase loan commitments
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
||||
Interest rate swaps
|
27,850
|
|
|
—
|
|
|
27,850
|
|
|
—
|
|
||||
Total liabilities
|
$
|
47,568
|
|
|
$
|
41
|
|
|
$
|
47,464
|
|
|
$
|
63
|
|
(in thousands)
|
Fair Value at December 31, 2019
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
91,695
|
|
|
$
|
—
|
|
|
$
|
89,831
|
|
|
$
|
1,864
|
|
Commercial
|
38,025
|
|
|
—
|
|
|
38,025
|
|
|
—
|
|
||||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||||
Residential
|
291,618
|
|
|
—
|
|
|
291,618
|
|
|
—
|
|
||||
Commercial
|
156,154
|
|
|
—
|
|
|
156,154
|
|
|
—
|
|
||||
Municipal bonds
|
341,318
|
|
|
—
|
|
|
341,318
|
|
|
—
|
|
||||
Corporate debt securities
|
18,661
|
|
|
—
|
|
|
18,573
|
|
|
88
|
|
||||
U.S. Treasury securities
|
1,307
|
|
|
—
|
|
|
1,307
|
|
|
—
|
|
||||
Single family loans held for sale (1)
|
105,458
|
|
|
—
|
|
|
105,458
|
|
|
—
|
|
||||
Single family loans held for investment
|
3,468
|
|
|
—
|
|
|
—
|
|
|
3,468
|
|
||||
Single family mortgage servicing rights
|
68,109
|
|
|
—
|
|
|
—
|
|
|
68,109
|
|
||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Eurodollar futures
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||
Forward sale commitments
|
830
|
|
|
—
|
|
|
830
|
|
|
—
|
|
||||
Interest rate lock and purchase loan commitments
|
2,281
|
|
|
—
|
|
|
—
|
|
|
2,281
|
|
||||
Interest rate swaps
|
27,097
|
|
|
—
|
|
|
27,097
|
|
|
—
|
|
||||
Total assets
|
$
|
1,146,024
|
|
|
$
|
3
|
|
|
$
|
1,070,211
|
|
|
$
|
75,810
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
||||||||
Forward sale commitments
|
$
|
492
|
|
|
$
|
—
|
|
|
$
|
492
|
|
|
$
|
—
|
|
Interest rate lock and purchase loan commitments
|
58
|
|
|
—
|
|
|
—
|
|
|
58
|
|
||||
Interest rate swaps
|
10,889
|
|
|
—
|
|
|
10,889
|
|
|
—
|
|
||||
Total liabilities
|
$
|
11,439
|
|
|
$
|
—
|
|
|
$
|
11,381
|
|
|
$
|
58
|
|
(dollars in thousands)
|
At March 31, 2020
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Investment securities available for sale
|
$
|
2,885
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
2.00%
|
|
2.00%
|
|
2.00%
|
(dollars in thousands)
|
At December 31, 2019
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Investment securities available for sale
|
$
|
1,952
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
2.00%
|
|
2.00%
|
|
2.00%
|
(dollars in thousands)
|
At March 31, 2020
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans held for investment, fair value option
|
$
|
4,926
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
5.75%
|
|
8.23%
|
|
6.37%
|
(dollars in thousands)
|
At December 31, 2019
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans held for investment, fair value option
|
$
|
3,468
|
|
|
Income approach
|
|
Implied spread to benchmark interest rate curve
|
|
4.56%
|
|
6.87%
|
|
5.63%
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
At March 31, 2020
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate lock and purchase loan commitments, net
|
$
|
13,502
|
|
|
Income approach
|
|
Fall-out factor
|
|
0.71%
|
|
34.34%
|
|
16.89%
|
|
|
|
|
|
Value of servicing
|
|
0.37%
|
|
1.36%
|
|
1.05%
|
(dollars in thousands)
|
At December 31, 2019
|
||||||||||||
Fair Value
|
|
Valuation
Technique
|
|
Significant Unobservable
Input
|
|
Low
|
|
High
|
|
Weighted Average
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate lock and purchase loan commitments, net
|
$
|
2,223
|
|
|
Income approach
|
|
Fall-out factor
|
|
—%
|
|
59.69%
|
|
12.20%
|
|
|
|
|
|
Value of servicing
|
|
0.55%
|
|
1.77%
|
|
1.14%
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities available for sale
|
|
$
|
1,952
|
|
|
$
|
985
|
|
|
$
|
—
|
|
|
$
|
(291
|
)
|
|
$
|
239
|
|
|
$
|
2,885
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities available for sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,379
|
|
|
$
|
(40
|
)
|
|
$
|
(402
|
)
|
|
$
|
1,937
|
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||||||||
(in thousands)
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment
|
|
$
|
3,468
|
|
|
$
|
1,679
|
|
|
$
|
—
|
|
|
$
|
(247
|
)
|
|
$
|
26
|
|
|
$
|
4,926
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||
|
|
Beginning balance
|
|
Additions
|
|
Transfers
|
|
Payoffs/Sales
|
|
Change in mark to market
|
|
Ending balance
|
||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
$
|
2,691
|
|
|
$
|
1,886
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(52
|
)
|
|
$
|
4,525
|
|
Loans held for investment
|
|
4,057
|
|
|
725
|
|
|
—
|
|
|
(3
|
)
|
|
51
|
|
|
4,830
|
|
|
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
Beginning balance, net
|
$
|
2,223
|
|
|
$
|
10,284
|
|
|
Total realized/unrealized gains
|
15,762
|
|
|
19,665
|
|
|
||
Settlements
|
(4,483
|
)
|
|
(15,893
|
)
|
|
||
Ending balance, net
|
$
|
13,502
|
|
|
$
|
14,056
|
|
|
|
At or for the Three Months Ended March 31, 2020
|
||||||||||||||||||
(in thousands)
|
Fair Value of Assets Held at March 31, 2020
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gains (Losses)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment (1)
|
$
|
890
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
890
|
|
|
$
|
113
|
|
|
At or for the Three Months Ended March 31, 2019
|
||||||||||||||||||
(in thousands)
|
Fair Value of Assets Held at March 31, 2019
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Gains (Losses)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment (1)
|
$
|
270
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
270
|
|
|
$
|
(4
|
)
|
|
|
|
At March 31, 2020
|
||||||||||||||||||
(in thousands)
|
Carrying
Value
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
72,441
|
|
|
$
|
72,441
|
|
|
$
|
72,441
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities held to maturity
|
4,347
|
|
|
4,462
|
|
|
—
|
|
|
4,462
|
|
|
—
|
|
|||||
Loans held for investment
|
5,030,004
|
|
|
5,164,795
|
|
|
—
|
|
|
—
|
|
|
5,164,795
|
|
|||||
Loans held for sale – multifamily and other
|
2,432
|
|
|
2,432
|
|
|
—
|
|
|
2,432
|
|
|
—
|
|
|||||
Mortgage servicing rights – multifamily
|
30,120
|
|
|
33,483
|
|
|
—
|
|
|
—
|
|
|
33,483
|
|
|||||
Federal Home Loan Bank stock
|
26,795
|
|
|
26,795
|
|
|
—
|
|
|
26,795
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
1,297,924
|
|
|
$
|
1,312,470
|
|
|
$
|
—
|
|
|
$
|
1,312,470
|
|
|
$
|
—
|
|
Federal Home Loan Bank advances
|
463,590
|
|
|
465,297
|
|
|
—
|
|
|
465,297
|
|
|
—
|
|
|||||
Other borrowings
|
95,000
|
|
|
94,998
|
|
|
—
|
|
|
94,998
|
|
|
—
|
|
|||||
Long-term debt
|
125,697
|
|
|
117,694
|
|
|
—
|
|
|
117,694
|
|
|
—
|
|
|
At December 31, 2019
|
||||||||||||||||||
(in thousands)
|
Carrying
Value
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
57,880
|
|
|
$
|
57,880
|
|
|
$
|
57,880
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities held to maturity
|
4,372
|
|
|
4,501
|
|
|
—
|
|
|
4,501
|
|
|
—
|
|
|||||
Loans held for investment
|
5,069,316
|
|
|
5,139,078
|
|
|
—
|
|
|
—
|
|
|
5,139,078
|
|
|||||
Loans held for sale – multifamily and other
|
128,841
|
|
|
130,720
|
|
|
—
|
|
|
130,720
|
|
|
—
|
|
|||||
Mortgage servicing rights – multifamily
|
29,494
|
|
|
32,738
|
|
|
—
|
|
|
—
|
|
|
32,738
|
|
|||||
Federal Home Loan Bank stock
|
22,399
|
|
|
22,399
|
|
|
—
|
|
|
22,399
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits
|
$
|
1,614,533
|
|
|
$
|
1,622,879
|
|
|
$
|
—
|
|
|
$
|
1,622,879
|
|
|
$
|
—
|
|
Federal Home Loan Bank advances
|
346,590
|
|
|
347,949
|
|
|
—
|
|
|
347,949
|
|
|
—
|
|
|||||
Federal funds purchased and securities sold under agreements to repurchase
|
125,000
|
|
|
125,101
|
|
|
125,101
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
125,650
|
|
|
115,011
|
|
|
—
|
|
|
115,011
|
|
|
—
|
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands, except share and per share data)
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||
EPS numerator:
|
|
|
|
|
||||
Income from continuing operations
|
$
|
7,139
|
|
|
$
|
5,058
|
|
|
Income (loss) from discontinued operations
|
—
|
|
|
(6,773
|
)
|
|
||
Net income available to common shareholders
|
$
|
7,139
|
|
|
$
|
(1,715
|
)
|
|
EPS denominator:
|
|
|
|
|
||||
Weighted average shares:
|
|
|
|
|
||||
Basic weighted-average number of common shares outstanding
|
23,688,930
|
|
|
27,021,507
|
|
|
||
Dilutive effect of outstanding common stock equivalents (1)
|
171,350
|
|
|
163,668
|
|
|
||
Diluted weighted-average number of common stock outstanding
|
23,860,280
|
|
|
27,185,175
|
|
|
||
Basic earnings per share:
|
|
|
|
|
||||
Income from continuing operations
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
Income (loss) from discontinued operations
|
—
|
|
|
(0.25
|
)
|
|
||
Basic earnings per share
|
$
|
0.30
|
|
|
$
|
(0.06
|
)
|
|
Diluted earnings per share:
|
|
|
|
|
||||
Income from continuing operations
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
Income (loss) from discontinued operations
|
—
|
|
|
(0.25
|
)
|
|
||
Diluted earnings per share
|
$
|
0.30
|
|
|
$
|
(0.06
|
)
|
|
(1)
|
Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the three months ended March 31, 2020 and 2019 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 1,067 at March 31, 2020 and zero at March 31, 2019.
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
|
|
|
|
||||
Operating lease cost
|
$
|
3,215
|
|
|
$
|
3,951
|
|
Finance lease cost:
|
|
|
|
||||
Amortization of right-of-use assets
|
374
|
|
|
616
|
|
||
Interest on lease liabilities
|
74
|
|
|
94
|
|
||
Short-term lease
|
—
|
|
|
4
|
|
||
Variable lease cost
|
1,355
|
|
|
1,768
|
|
||
Sublease income
|
(2,049
|
)
|
|
(339
|
)
|
||
Total lease cost
|
$
|
2,969
|
|
|
$
|
6,094
|
|
|
Three Months Ended March 31,
|
||||||
(in thousands)
|
2020
|
|
2019
|
||||
|
|
|
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from operating leases
|
$
|
4,269
|
|
|
$
|
4,431
|
|
Operating cash flows from finance leases
|
74
|
|
|
94
|
|
||
Financing cash flows from finance leases
|
285
|
|
|
455
|
|
||
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
|
||||
Operating leases
|
$
|
324
|
|
|
$
|
4,836
|
|
Finance leases
|
28
|
|
|
176
|
|
(in thousands, except lease term and discount rate)
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
|
|
|
||||
Operating lease right-of-use assets
|
$
|
83,666
|
|
|
$
|
86,789
|
|
Operating lease liabilities
|
100,850
|
|
|
104,579
|
|
||
|
|
|
|
||||
Finance lease right-of-use assets
|
$
|
7,709
|
|
|
$
|
8,084
|
|
Finance lease liabilities
|
8,251
|
|
|
8,513
|
|
||
|
|
|
|
||||
Weighted Average Remaining lease term in years
|
|
|
|
||||
Operating leases
|
11.84
|
|
|
11.87
|
|
||
Finance leases
|
15.66
|
|
|
15.46
|
|
||
Weighted Average Discount Rate
|
|
|
|
||||
Operating leases
|
3.49
|
%
|
|
3.48
|
%
|
||
Finance leases
|
3.64
|
|
|
2.63
|
|
|
|
Operating Leases
|
|
Finance Leases
|
||||
Year ended December 31,
|
|
|
|
|
||||
2020 (excluding the three months ended March 31, 2020)
|
|
$
|
11,021
|
|
|
$
|
1,184
|
|
2021
|
|
13,626
|
|
|
1,294
|
|
||
2022
|
|
12,175
|
|
|
590
|
|
||
2023
|
|
10,637
|
|
|
475
|
|
||
2024
|
|
10,205
|
|
|
400
|
|
||
2025
|
|
9,012
|
|
|
420
|
|
||
2026 and thereafter
|
|
56,604
|
|
|
6,818
|
|
||
Total lease payments
|
|
123,280
|
|
|
11,181
|
|
||
Less imputed interest
|
|
22,430
|
|
|
2,930
|
|
||
Total
|
|
$
|
100,850
|
|
|
$
|
8,251
|
|
|
Three Months Ended March 31,
|
|
|||||||
(in thousands)
|
2020
|
|
2019
|
|
|||||
|
|
|
|
|
|||||
Beginning balance
|
$
|
4,321
|
|
|
$
|
(15,439
|
)
|
|
|
Cumulative effect of adoption of new accounting standards
|
—
|
|
|
(2,080
|
)
|
(1
|
)
|
||
Other comprehensive income before reclassifications
|
13,496
|
|
|
9,969
|
|
|
|||
Amounts reclassified from accumulated other comprehensive (loss) income
|
(88
|
)
|
|
195
|
|
|
|||
Net current-period other comprehensive income
|
13,408
|
|
|
10,164
|
|
|
|||
Ending balance
|
$
|
17,729
|
|
|
$
|
(7,355
|
)
|
|
Affected Line Item in the Consolidated Statements of Operations
|
|
Amount Reclassified from Accumulated
Other Comprehensive Income (Loss)
|
|||||||
|
|
Three Months Ended March 31,
|
|
||||||
(in thousands)
|
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
|
||||
Gain (loss) on sale of investment securities available for sale
|
|
$
|
112
|
|
|
$
|
(247
|
)
|
|
Income tax expense (benefit)
|
|
24
|
|
|
(52
|
)
|
|
||
Total, net of tax
|
|
$
|
88
|
|
|
$
|
(195
|
)
|
|
•
|
Simplifying the organizational structure by reducing management levels and management redundancy
|
•
|
Consolidating similar functions currently residing in multiple organizations
|
•
|
Renegotiating, where possible, our technology contracts
|
•
|
Identifying and eliminating redundant or unnecessary systems and services
|
•
|
Rationalizing staffing appropriate to recognize the significant changes in work volumes and company direction
|
•
|
Eliminating excess occupancy costs consistent with reduced personnel
|
|
|
2020
|
|
2019
|
||||||||||||||||||||||||||||
At and for the three months ended March 31
|
|
Facility-related costs
|
|
Personnel-related costs
|
|
Other costs
|
|
Total
|
|
Facility-related costs
|
|
Personnel- related costs
|
|
Other costs
|
|
Total
|
||||||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
|
$
|
1,235
|
|
|
$
|
510
|
|
|
$
|
159
|
|
|
$
|
1,904
|
|
|
$
|
1,604
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,604
|
|
Transfers-In
|
|
497
|
|
|
707
|
|
|
—
|
|
|
1,204
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restructuring charges
|
|
580
|
|
|
147
|
|
|
488
|
|
|
1,215
|
|
|
(96
|
)
|
|
—
|
|
|
128
|
|
|
32
|
|
||||||||
Costs paid or otherwise settled
|
|
(1,072
|
)
|
|
(1,072
|
)
|
|
(522
|
)
|
|
(2,666
|
)
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
||||||||
Ending balance
|
|
$
|
1,240
|
|
|
$
|
292
|
|
|
$
|
125
|
|
|
$
|
1,657
|
|
|
$
|
1,407
|
|
|
$
|
—
|
|
|
$
|
128
|
|
|
$
|
1,535
|
|
ITEM 2
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
At or for the Three Months Ended
|
||||||||||||||||||
(dollars in thousands, except share data)
|
Mar. 31, 2020
|
|
Dec. 31, 2019
|
|
Sept. 30, 2019
|
|
June 30, 2019
|
|
Mar. 31,
2019 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Income statement data (for the period ended):
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
45,434
|
|
|
$
|
45,512
|
|
|
$
|
47,134
|
|
|
$
|
49,187
|
|
|
$
|
47,557
|
|
Provision (reversal) for credit losses
|
14,000
|
|
|
(2,000
|
)
|
|
—
|
|
|
—
|
|
|
1,500
|
|
|||||
Noninterest income
|
32,630
|
|
|
21,931
|
|
|
24,580
|
|
|
19,829
|
|
|
8,092
|
|
|||||
Noninterest expense
|
55,184
|
|
|
53,215
|
|
|
55,721
|
|
|
58,832
|
|
|
47,846
|
|
|||||
Income from continuing operations before income taxes
|
8,880
|
|
|
16,228
|
|
|
15,993
|
|
|
10,184
|
|
|
6,303
|
|
|||||
Income tax expense (benefit) from continuing operations
|
1,741
|
|
|
3,123
|
|
|
2,328
|
|
|
1,292
|
|
|
1,245
|
|
|||||
Income from continuing operations
|
7,139
|
|
|
13,105
|
|
|
13,665
|
|
|
8,892
|
|
|
5,058
|
|
|||||
(Loss) income from discontinued operations before income taxes
|
—
|
|
|
(3,357
|
)
|
|
190
|
|
|
(16,678
|
)
|
|
(8,440
|
)
|
|||||
Income tax (benefit) expense from discontinued operations
|
—
|
|
|
(1,240
|
)
|
|
28
|
|
|
(2,198
|
)
|
|
(1,667
|
)
|
|||||
(Loss) income from discontinued operations (1)
|
—
|
|
|
(2,117
|
)
|
|
162
|
|
|
(14,480
|
)
|
|
(6,773
|
)
|
|||||
Net income (loss)
|
$
|
7,139
|
|
|
$
|
10,988
|
|
|
$
|
13,827
|
|
|
$
|
(5,588
|
)
|
|
$
|
(1,715
|
)
|
Basic income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.30
|
|
|
$
|
0.54
|
|
|
$
|
0.55
|
|
|
$
|
0.32
|
|
|
$
|
0.19
|
|
(Loss) income from discontinued operations
|
—
|
|
|
(0.09
|
)
|
|
0.01
|
|
|
(0.54
|
)
|
|
(0.25
|
)
|
|||||
Basic income (loss) per common share
|
$
|
0.30
|
|
|
$
|
0.45
|
|
|
$
|
0.55
|
|
|
$
|
(0.22
|
)
|
|
$
|
(0.06
|
)
|
Diluted income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.30
|
|
|
$
|
0.54
|
|
|
$
|
0.54
|
|
|
$
|
0.32
|
|
|
$
|
0.19
|
|
(Loss) income from discontinued operations
|
—
|
|
|
(0.09
|
)
|
|
0.01
|
|
|
(0.54
|
)
|
|
(0.25
|
)
|
|||||
Diluted income (loss) per common share
|
$
|
0.30
|
|
|
$
|
0.45
|
|
|
$
|
0.55
|
|
|
$
|
(0.22
|
)
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares outstanding
|
23,376,793
|
|
|
23,890,855
|
|
|
24,408,513
|
|
|
26,085,164
|
|
|
27,038,257
|
|
|||||
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
23,688,930
|
|
|
24,233,434
|
|
|
24,419,793
|
|
|
26,619,216
|
|
|
27,021,507
|
|
|||||
Diluted
|
23,860,280
|
|
|
24,469,891
|
|
|
24,625,938
|
|
|
26,802,130
|
|
|
27,185,175
|
|
|||||
Shareholders' equity per share
|
$
|
28.97
|
|
|
$
|
28.45
|
|
|
$
|
28.32
|
|
|
$
|
27.75
|
|
|
$
|
27.63
|
|
Financial position (at period end):
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
72,441
|
|
|
$
|
57,880
|
|
|
$
|
74,788
|
|
|
$
|
99,602
|
|
|
$
|
67,690
|
|
Investment securities
|
1,058,492
|
|
|
943,150
|
|
|
866,736
|
|
|
803,819
|
|
|
816,878
|
|
|||||
Loans held for sale
|
140,527
|
|
|
208,177
|
|
|
172,958
|
|
|
145,252
|
|
|
56,928
|
|
|||||
Loans held for investment, net
|
5,034,930
|
|
|
5,072,784
|
|
|
5,139,108
|
|
|
5,287,859
|
|
|
5,345,969
|
|
|||||
Loan servicing rights
|
80,053
|
|
|
97,603
|
|
|
90,624
|
|
|
94,950
|
|
|
95,942
|
|
|||||
Other real estate owned
|
1,343
|
|
|
1,393
|
|
|
1,753
|
|
|
1,753
|
|
|
838
|
|
|||||
Total assets
|
6,806,718
|
|
|
6,812,435
|
|
|
6,835,878
|
|
|
7,200,790
|
|
|
7,171,405
|
|
|||||
Deposits
|
5,257,057
|
|
|
5,339,959
|
|
|
5,804,307
|
|
|
5,590,893
|
|
|
5,178,334
|
|
|||||
Federal Home Loan Bank advances
|
463,590
|
|
|
346,590
|
|
|
5,590
|
|
|
387,590
|
|
|
599,590
|
|
|||||
Federal funds purchased and securities sold under agreements to repurchase
|
—
|
|
|
125,000
|
|
|
—
|
|
|
—
|
|
|
27,000
|
|
|||||
Other borrowings
|
95,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Shareholders' equity
|
677,314
|
|
|
679,723
|
|
|
691,136
|
|
|
723,910
|
|
|
747,031
|
|
|||||
Financial position (averages):
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
$
|
993,158
|
|
|
$
|
892,833
|
|
|
$
|
803,355
|
|
|
$
|
815,287
|
|
|
$
|
891,813
|
|
Loans held for investment
|
5,080,928
|
|
|
5,184,089
|
|
|
5,277,586
|
|
|
5,435,474
|
|
|
5,236,387
|
|
|||||
Total interest-earning assets
|
6,253,147
|
|
|
6,328,179
|
|
|
6,437,903
|
|
|
6,699,821
|
|
|
6,471,930
|
|
|||||
Total interest-bearing deposits
|
4,333,756
|
|
|
4,674,797
|
|
|
4,846,585
|
|
|
4,361,850
|
|
|
4,145,778
|
|
|||||
Federal Home Loan Bank advances
|
333,821
|
|
|
125,414
|
|
|
85,894
|
|
|
594,810
|
|
|
833,478
|
|
|||||
Federal funds purchased and securities sold under agreements to repurchase
|
134,539
|
|
|
53,163
|
|
|
6,930
|
|
|
73,189
|
|
|
47,778
|
|
|||||
Total interest-bearing liabilities
|
4,943,155
|
|
|
4,988,112
|
|
|
5,074,429
|
|
|
5,165,939
|
|
|
5,159,853
|
|
|||||
Shareholders' equity
|
691,292
|
|
|
701,018
|
|
|
693,475
|
|
|
741,330
|
|
|
750,466
|
|
|
At or for the Three Months Ended
|
||||||||||||||||||
(dollars in thousands, except share data)
|
Mar. 31, 2020
|
|
Dec. 31, 2019
|
|
Sept. 30, 2019
|
|
June 30, 2019
|
|
Mar. 31,
2019 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial performance, consolidated
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average shareholders' equity (2)
|
4.13
|
%
|
|
6.27
|
%
|
|
7.98
|
%
|
|
(3.02
|
)%
|
|
(0.91
|
)%
|
|||||
Return on average assets
|
0.42
|
|
|
0.64
|
|
|
0.79
|
|
|
(0.31
|
)
|
|
(0.10
|
)
|
|||||
Net interest margin (3)
|
2.93
|
|
|
2.87
|
|
|
2.96
|
|
|
3.11
|
|
|
3.11
|
|
|||||
Efficiency ratio (4)
|
70.69
|
|
|
83.87
|
|
|
78.08
|
|
|
106.83
|
|
|
100.66
|
|
|||||
Asset quality:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses including unfunded commitments
|
$
|
60,606
|
|
|
$
|
42,837
|
|
|
$
|
44,634
|
|
|
$
|
44,628
|
|
|
$
|
44,536
|
|
Allowance for credit losses/total loans (8)
|
1.14
|
%
|
|
0.82
|
%
|
|
0.84
|
%
|
|
0.81
|
%
|
|
0.80
|
%
|
|||||
Allowance for credit losses/nonaccrual loans (9)
|
449.32
|
%
|
|
324.80
|
%
|
|
349.37
|
%
|
|
435.59
|
%
|
|
271.99
|
%
|
|||||
Total nonaccrual loans (5)(6)
|
$
|
12,975
|
|
|
$
|
12,861
|
|
|
$
|
12,433
|
|
|
$
|
9,930
|
|
|
$
|
15,874
|
|
Nonaccrual loans/total loans
|
0.25
|
%
|
|
0.25
|
%
|
|
0.24
|
%
|
|
0.19
|
%
|
|
0.29
|
%
|
|||||
Other real estate owned
|
$
|
1,343
|
|
|
$
|
1,393
|
|
|
$
|
1,753
|
|
|
$
|
1,753
|
|
|
$
|
838
|
|
Total nonperforming assets
|
$
|
14,318
|
|
|
$
|
14,254
|
|
|
$
|
14,186
|
|
|
$
|
11,683
|
|
|
$
|
16,712
|
|
Nonperforming assets/total assets
|
0.21
|
%
|
|
0.21
|
%
|
|
0.21
|
%
|
|
0.16
|
%
|
|
0.23
|
%
|
|||||
Net (recoveries) charge-offs
|
$
|
(29
|
)
|
|
$
|
(203
|
)
|
|
$
|
(6
|
)
|
|
$
|
(92
|
)
|
|
$
|
(123
|
)
|
Regulatory capital ratios for the Bank:
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 leverage capital (to average assets)
|
10.06
|
%
|
|
10.56
|
%
|
|
10.17
|
%
|
|
9.86
|
%
|
|
11.17
|
%
|
|||||
Common equity tier 1 risk-based capital (to risk-weighted assets)
|
12.75
|
|
|
13.50
|
|
|
13.45
|
|
|
13.26
|
|
|
14.88
|
|
|||||
Tier 1 risk-based capital (to risk-weighted assets)
|
12.75
|
|
|
13.50
|
|
|
13.45
|
|
|
13.26
|
|
|
14.88
|
|
|||||
Total risk-based capital (to risk-weighted assets)
|
13.95
|
|
|
14.37
|
|
|
14.37
|
|
|
14.15
|
|
|
15.77
|
|
|||||
Regulatory capital ratios for the Company:
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 leverage capital (to average assets)
|
10.15
|
%
|
|
10.16
|
%
|
|
10.04
|
%
|
|
10.12
|
%
|
|
10.73
|
%
|
|||||
Tier 1 common equity risk-based capital (to risk-weighted assets)
|
11.24
|
|
|
11.43
|
|
|
11.67
|
|
|
11.99
|
|
|
12.62
|
|
|||||
Tier 1 risk-based capital (to risk-weighted assets)
|
12.32
|
|
|
12.52
|
|
|
12.77
|
|
|
13.06
|
|
|
13.68
|
|
|||||
Total risk-based capital (to risk-weighted assets)
|
13.50
|
|
|
13.40
|
|
|
13.69
|
|
|
13.95
|
|
|
14.58
|
|
|
At or for the Three Months Ended
|
||||||||||||||||||
(in thousands)
|
Mar. 31, 2020
|
|
Dec. 31, 2019
|
|
Sept. 30, 2019
|
|
June 30, 2019
|
|
Mar. 31,
2019 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans serviced for others:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
1,661,038
|
|
|
$
|
1,618,876
|
|
|
$
|
1,576,714
|
|
|
$
|
1,535,522
|
|
|
$
|
1,521,597
|
|
Single family (7)
|
6,772,912
|
|
|
7,023,441
|
|
|
7,014,265
|
|
|
6,790,955
|
|
|
6,052,394
|
|
|||||
Total loans serviced for others
|
$
|
8,433,950
|
|
|
$
|
8,642,317
|
|
|
$
|
8,590,979
|
|
|
$
|
8,326,477
|
|
|
$
|
7,573,991
|
|
(1)
|
Discontinued operations accounting was terminated effective January 1, 2020, as it was no longer material to our consolidated operations.
|
(2)
|
Net earnings available to common shareholders divided by average shareholders' equity.
|
(3)
|
Net interest income divided by total average interest-earning assets on a tax equivalent basis.
|
(4)
|
Noninterest expense divided by total revenue (pre-provision net interest income and noninterest income).
|
(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, $1.3 million, $1.3 million, $1.4 million and $1.7 million of nonperforming loans guaranteed by the SBA at March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively.
|
(7)
|
Excludes interim loan servicing from first quarter 2019 sale of single family mortgage servicing rights.
|
(8)
|
Prior to January 1, 2020 and the adoption of ASU 2016-13, this calculation represented the Allowance for Loan Losses/Total Loans.
|
(9)
|
Prior to January 1, 2020 and the adoption of ASU 2016-13, this calculation represented the Allowance for Loan Losses/Non-Accrual Loans.
|
1 DUS® is a registered trademark of Fannie Mae
|
70
|
|
|
At or for the Three Months Ended March 31,
|
|
Percent Change
|
|||||||
(in thousands, except per share data and ratios)
|
2020
|
|
2019
|
|
||||||
|
|
|
|
|
|
|||||
Selected statement of operations data
|
|
|
|
|
|
|||||
Total net revenue (1)
|
$
|
78,064
|
|
|
$
|
55,649
|
|
|
40
|
%
|
Total noninterest expense
|
55,184
|
|
|
47,846
|
|
|
15
|
|
||
Provision for credit losses
|
14,000
|
|
|
1,500
|
|
|
833
|
|
||
Income from continuing operations before income taxes
|
8,880
|
|
|
6,303
|
|
|
41
|
|
||
Income tax expense for continuing operations
|
1,741
|
|
|
1,245
|
|
|
40
|
|
||
Income from continuing operations
|
7,139
|
|
|
5,058
|
|
|
41
|
|
||
Loss from discontinued operations before income taxes
|
—
|
|
|
(8,440
|
)
|
|
(100
|
)
|
||
Income tax benefit from discontinued operations
|
—
|
|
|
(1,667
|
)
|
|
(100
|
)
|
||
Loss from discontinued operations
|
—
|
|
|
(6,773
|
)
|
|
(100
|
)
|
||
Net income (loss)
|
$
|
7,139
|
|
|
$
|
(1,715
|
)
|
|
(516
|
)%
|
|
|
|
|
|
|
|||||
Financial performance
|
|
|
|
|
|
|||||
Diluted income per share for continuing operations
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
|
|
Diluted income (loss) per share for discontinued operations
|
—
|
|
|
(0.25
|
)
|
|
|
|||
Diluted income (loss) per share
|
$
|
0.30
|
|
|
$
|
(0.06
|
)
|
|
|
|
Return on average common shareholders' equity
|
4.13
|
%
|
|
(0.91
|
)%
|
|
|
|||
Return on average assets
|
0.42
|
%
|
|
(0.10
|
)%
|
|
|
|||
Net interest margin
|
2.93
|
%
|
|
3.11
|
%
|
|
|
(1)
|
Total net revenue is net interest income and noninterest income.
|
|
|
At March 31, 2020
|
||||
|
|
HomeStreet, Inc.
|
|
HomeStreet Bank
|
||
|
|
Ratio
|
|
Ratio
|
||
|
|
|
|
|
||
|
|
|
|
|
||
Tier 1 leverage capital (to average assets)
|
|
10.15
|
%
|
|
10.06
|
%
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
11.24
|
|
|
12.75
|
|
Tier 1 risk-based capital (to risk-weighted assets)
|
|
12.32
|
|
|
12.75
|
|
Total risk-based capital (to risk-weighted assets)
|
|
13.50
|
|
|
13.95
|
|
|
|
At December 31, 2019
|
||||
|
|
HomeStreet, Inc.
|
|
HomeStreet Bank
|
||
|
|
Ratio
|
|
Ratio
|
||
|
|
|
|
|
||
|
|
|
|
|
||
Tier 1 leverage capital (to average assets)
|
|
10.16
|
%
|
|
10.56
|
%
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
11.43
|
|
|
13.50
|
|
Tier 1 risk-based capital (to risk-weighted assets)
|
|
12.52
|
|
|
13.50
|
|
Total risk-based capital (to risk-weighted assets)
|
|
13.40
|
|
|
14.37
|
|
•
|
Allowance for Credit Losses for Loans Held for Investment
|
•
|
Fair Value of Financial Instruments and Single Family Mortgage Servicing Rights ("MSRs")
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||
(in thousands)
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Cost
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets: (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
41,652
|
|
|
$
|
5
|
|
|
0.05
|
%
|
|
$
|
58,650
|
|
|
$
|
184
|
|
|
1.27
|
%
|
Investment securities
|
993,158
|
|
|
5,317
|
|
|
2.14
|
|
|
891,813
|
|
|
6,048
|
|
|
2.71
|
|
||||
Loans held for sale (4)
|
137,409
|
|
|
1,367
|
|
|
3.98
|
|
|
285,080
|
|
|
3,344
|
|
|
4.69
|
|
||||
Loans held for investment
|
5,080,928
|
|
|
57,878
|
|
|
4.52
|
|
|
5,236,387
|
|
|
63,034
|
|
|
4.82
|
|
||||
Total interest-earning assets
|
6,253,147
|
|
|
64,567
|
|
|
4.10
|
|
|
6,471,930
|
|
|
72,610
|
|
|
4.50
|
|
||||
Noninterest-earning assets (2)(4)
|
572,846
|
|
|
|
|
|
|
721,795
|
|
|
|
|
|
||||||||
Total assets
|
$
|
6,825,993
|
|
|
|
|
|
|
$
|
7,193,725
|
|
|
|
|
|
||||||
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: (4)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand accounts
|
$
|
369,439
|
|
|
$
|
341
|
|
|
0.37
|
%
|
|
$
|
375,530
|
|
|
$
|
375
|
|
|
0.41
|
%
|
Savings accounts
|
220,150
|
|
|
98
|
|
|
0.18
|
|
|
240,900
|
|
|
150
|
|
|
0.25
|
|
||||
Money market accounts
|
2,261,776
|
|
|
6,306
|
|
|
1.12
|
|
|
1,932,317
|
|
|
5,803
|
|
|
1.21
|
|
||||
Certificate accounts
|
1,482,391
|
|
|
8,134
|
|
|
2.21
|
|
|
1,597,031
|
|
|
8,153
|
|
|
2.07
|
|
||||
Total interest-bearing deposits (5)
|
4,333,756
|
|
|
14,879
|
|
|
1.38
|
|
|
4,145,778
|
|
|
14,481
|
|
|
1.41
|
|
||||
Federal Home Loan Bank advances
|
333,821
|
|
|
1,310
|
|
|
1.55
|
|
|
833,478
|
|
|
5,614
|
|
|
2.69
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
134,539
|
|
|
458
|
|
|
1.35
|
|
|
47,778
|
|
|
304
|
|
|
2.54
|
|
||||
Other borrowings
|
15,373
|
|
|
78
|
|
|
2.03
|
|
|
7,339
|
|
|
94
|
|
|
5.15
|
|
||||
Long-term debt
|
125,666
|
|
|
1,590
|
|
|
5.04
|
|
|
125,480
|
|
|
1,744
|
|
|
5.56
|
|
||||
Total interest-bearing liabilities
|
4,943,155
|
|
|
18,315
|
|
|
1.48
|
|
|
5,159,853
|
|
|
22,237
|
|
|
1.74
|
|
||||
Noninterest-bearing liabilities (4) (5)
|
1,191,546
|
|
|
|
|
|
|
1,283,406
|
|
|
|
|
|
||||||||
Total liabilities
|
6,134,701
|
|
|
|
|
|
|
6,443,259
|
|
|
|
|
|
||||||||
Shareholders' equity
|
691,292
|
|
|
|
|
|
|
750,466
|
|
|
|
|
|
||||||||
Total liabilities and shareholders' equity
|
$
|
6,825,993
|
|
|
|
|
|
|
$
|
7,193,725
|
|
|
|
|
|
||||||
Net interest income (3)
|
|
|
$
|
46,252
|
|
|
|
|
|
|
$
|
50,373
|
|
|
|
||||||
Net interest spread
|
|
|
|
|
2.62
|
%
|
|
|
|
|
|
2.76
|
%
|
||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
0.31
|
|
|
|
|
|
|
0.35
|
|
||||||||
Net interest margin
|
|
|
|
|
2.93
|
%
|
|
|
|
|
|
3.11
|
%
|
(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 recorded in other real estate owned.
|
(3)
|
Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $818 thousand and $670 thousand for the three months ended March 31, 2020 and 2019, respectively. The estimated federal statutory tax rate was 21% for the periods presented.
|
(4)
|
Includes average balances related to discontinued operations, which were impractical to remove for the periods presented. The net interest margin related to discontinued operations is immaterial.
|
(5)
|
Cost of deposits was 1.14% in both the three months ended March 31, 2020 and 2019.
|
|
Three Months Ended March 31,
|
|
Dollar
Change |
|
Percent
Change
|
|||||||||
(in thousands)
|
2020
|
|
2019
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||
Noninterest income
|
|
|
|
|
|
|
|
|||||||
Gain on loan origination and sale activities
|
$
|
22,541
|
|
|
$
|
2,607
|
|
|
$
|
19,934
|
|
|
765
|
%
|
Loan servicing income
|
5,607
|
|
|
1,043
|
|
|
4,564
|
|
|
438
|
|
|||
Depositor and other retail banking fees
|
1,890
|
|
|
1,745
|
|
|
145
|
|
|
8
|
|
|||
Insurance agency commissions
|
406
|
|
|
625
|
|
|
(219
|
)
|
|
(35
|
)
|
|||
Gain (loss) on sale of investment securities available for sale
|
112
|
|
|
(247
|
)
|
|
359
|
|
|
(145
|
)
|
|||
Other
|
2,074
|
|
|
2,319
|
|
|
(245
|
)
|
|
(11
|
)
|
|||
Total noninterest income
|
$
|
32,630
|
|
|
$
|
8,092
|
|
|
$
|
24,538
|
|
|
303
|
%
|
(in thousands)
|
|
At March 31,
2020 |
|
At December 31,
2019 |
||||
|
|
|
|
|
||||
Commercial
|
|
$
|
1,661,038
|
|
|
$
|
1,618,876
|
|
Single family
|
|
6,772,912
|
|
|
7,023,441
|
|
||
Total loans serviced for others
|
|
$
|
8,433,950
|
|
|
$
|
8,642,317
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
(in thousands)
|
|
2020
|
|
2019
|
|
Dollar Change
|
|
Percent
Change |
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Commercial loan servicing income, net:
|
|
|
|
|
|
|
|
|
|||||||
Servicing fees and other
|
|
$
|
2,556
|
|
|
$
|
2,419
|
|
|
$
|
137
|
|
|
6
|
%
|
Amortization of capitalized MSRs
|
|
(1,511
|
)
|
|
(1,376
|
)
|
|
(135
|
)
|
|
10
|
|
|||
Commercial loan servicing income
|
|
1,045
|
|
|
1,043
|
|
|
2
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Single family servicing income, net
|
|
|
|
|
|
|
|
|
|
|
|
||||
Servicing fees and other
|
|
4,979
|
|
|
14,158
|
|
(4)
|
(9,179
|
)
|
|
(65
|
)
|
|||
Changes in fair value of single family MSRs due to amortization (1)
|
|
(3,494
|
)
|
|
(8,983
|
)
|
|
5,489
|
|
|
(61
|
)
|
|||
|
|
1,485
|
|
|
5,175
|
|
|
(3,690
|
)
|
|
(71
|
)
|
|||
Risk management, single family MSRs:
|
|
|
|
|
|
|
|
|
|||||||
Changes in fair value of MSR due to changes in model inputs and/or assumptions (2)
|
|
(16,844
|
)
|
|
(4,498
|
)
|
(3) (4)
|
(12,346
|
)
|
|
274
|
|
|||
Net gain (loss) from derivatives economically hedging MSR
|
|
19,921
|
|
|
3,683
|
|
|
16,238
|
|
|
441
|
|
|||
|
|
3,077
|
|
|
(815
|
)
|
|
3,892
|
|
|
(478
|
)
|
|||
Single Family servicing income
|
|
4,562
|
|
|
4,360
|
|
|
202
|
|
|
5
|
|
|||
Total loan servicing income
|
|
$
|
5,607
|
|
|
$
|
5,403
|
|
(5)
|
$
|
204
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
(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)
|
Includes pre-tax income of $774 thousand, net of transaction costs, brokerage fees and prepayment reserves, resulting from the sale of single family MSRs during the three months ended March 31, 2019.
|
(4)
|
Reclassified $780 thousand between these line items as compared to prior year disclosures.
|
(5)
|
Includes both continuing and discontinued operations.
|
|
Three Months Ended March 31,
|
|
Dollar
Change |
|
Percent
Change |
|||||||||
(in thousands)
|
2020
|
|
2019
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||
Fees:
|
|
|
|
|
|
|
|
|||||||
Monthly maintenance and deposit-related fees
|
$
|
842
|
|
|
$
|
689
|
|
|
$
|
153
|
|
|
22
|
%
|
Debit Card/ATM fees
|
987
|
|
|
997
|
|
|
(10
|
)
|
|
(1
|
)
|
|||
Other fees
|
61
|
|
|
64
|
|
|
(3
|
)
|
|
(5
|
)
|
|||
Total depositor and other retail banking fees
|
$
|
1,890
|
|
|
$
|
1,750
|
|
|
$
|
140
|
|
|
8
|
%
|
|
Three Months Ended March 31,
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||||
(in thousands)
|
2020
|
|
2019
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||
Noninterest expense
|
|
|
|
|
|
|
|
|||||||
Salaries and related costs
|
$
|
32,043
|
|
|
$
|
25,279
|
|
|
$
|
6,764
|
|
|
27
|
%
|
General and administrative
|
7,966
|
|
|
8,182
|
|
|
(216
|
)
|
|
(3
|
)
|
|||
Amortization of core deposit intangibles
|
345
|
|
|
333
|
|
|
12
|
|
|
4
|
|
|||
Legal
|
610
|
|
|
(204
|
)
|
|
814
|
|
|
(399
|
)
|
|||
Consulting
|
934
|
|
|
1,408
|
|
|
(474
|
)
|
|
(34
|
)
|
|||
Federal Deposit Insurance Corporation assessments
|
771
|
|
|
821
|
|
|
(50
|
)
|
|
(6
|
)
|
|||
Occupancy
|
5,521
|
|
|
4,968
|
|
|
553
|
|
|
11
|
|
|||
Information services
|
6,942
|
|
|
7,088
|
|
|
(146
|
)
|
|
(2
|
)
|
|||
Net cost (benefit) of operation and sale of other real estate owned
|
52
|
|
|
(29
|
)
|
|
81
|
|
|
(279
|
)
|
|||
Total noninterest expense
|
$
|
55,184
|
|
|
$
|
47,846
|
|
|
$
|
7,338
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
At March 31, 2020
|
|
At December 31, 2019
|
||||||||||
(in thousands)
|
Fair Value
|
|
Percent
|
|
Fair Value
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||
Residential
|
$
|
84,746
|
|
|
8
|
%
|
|
$
|
91,695
|
|
|
10
|
%
|
Commercial
|
43,918
|
|
|
4
|
|
|
38,025
|
|
|
4
|
|
||
Collateralized mortgage obligations:
|
|
|
|
|
|
|
|
||||||
Residential
|
294,153
|
|
|
28
|
|
|
291,618
|
|
|
31
|
|
||
Commercial
|
160,770
|
|
|
15
|
|
|
156,154
|
|
|
17
|
|
||
Municipal bonds
|
452,633
|
|
|
43
|
|
|
341,318
|
|
|
36
|
|
||
Corporate debt securities
|
16,611
|
|
|
2
|
|
|
18,661
|
|
|
2
|
|
||
U.S. Treasury securities
|
1,314
|
|
|
—
|
|
|
1,307
|
|
|
—
|
|
||
Total investment securities available for sale
|
$
|
1,054,145
|
|
|
100
|
%
|
|
$
|
938,778
|
|
|
100
|
%
|
|
At March 31, 2020
|
|
December 31, 2019 (2)
|
||||||||||
(in thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
988,967
|
|
|
20
|
%
|
|
$
|
1,072,706
|
|
|
21
|
%
|
Home equity and other
|
525,544
|
|
|
10
|
|
|
553,376
|
|
|
10
|
|
||
Total consumer loans
|
1,514,511
|
|
|
30
|
|
|
1,626,082
|
|
|
31
|
|
||
Commercial real estate loans:
|
|
|
|
|
|
|
|
||||||
Non-owner occupied commercial real estate
|
872,173
|
|
|
17
|
|
|
895,546
|
|
|
18
|
|
||
Multifamily
|
1,167,242
|
|
|
23
|
|
|
999,140
|
|
|
20
|
|
||
Construction/land development
|
626,969
|
|
|
12
|
|
|
701,762
|
|
|
14
|
|
||
Total commercial real estate loans
|
2,666,384
|
|
|
52
|
|
|
2,596,448
|
|
|
52
|
|
||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
473,338
|
|
|
9
|
|
|
477,316
|
|
|
9
|
|
||
Commercial business
|
438,996
|
|
|
9
|
|
|
414,710
|
|
|
8
|
|
||
Total commercial and industrial loans
|
912,334
|
|
|
18
|
|
|
892,026
|
|
|
17
|
|
||
Loans held for investment
|
5,093,229
|
|
|
100
|
%
|
|
5,114,556
|
|
|
100
|
%
|
||
Allowance for credit losses
|
(58,299
|
)
|
|
|
|
(41,772
|
)
|
|
|
||||
Total loans held for investment
|
$
|
5,034,930
|
|
|
|
|
$
|
5,072,784
|
|
|
|
(1)
|
Includes $4.9 million and $3.5 million at March 31, 2020 and December 31, 2019, 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 in value recognized in the consolidated statements of operations.
|
(2)
|
Net deferred loans fees and costs of $24.5 million are now included within the carrying amounts of the loan balances as of December 31, 2019, in order to conform to the current period presentation.
|
(in thousands)
|
|
At March 31, 2020
|
|
At December 31, 2019
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing accounts - checking and savings
|
|
$
|
768,776
|
|
|
15
|
%
|
|
$
|
704,743
|
|
|
13
|
%
|
Interest-bearing transaction and savings deposits:
|
|
|
|
|
|
|
|
|
||||||
NOW accounts
|
|
420,606
|
|
|
8
|
|
|
373,832
|
|
|
7
|
|
||
Statement savings accounts due on demand
|
|
222,821
|
|
|
4
|
|
|
219,182
|
|
|
4
|
|
||
Money market accounts due on demand
|
|
2,299,442
|
|
|
44
|
|
|
2,224,494
|
|
|
42
|
|
||
Total interest-bearing transaction and savings deposits
|
|
2,942,869
|
|
|
56
|
|
|
2,817,508
|
|
|
53
|
|
||
Total transaction and savings deposits
|
|
3,711,645
|
|
|
71
|
|
|
3,522,251
|
|
|
66
|
|
||
Certificates of deposit
|
|
1,297,924
|
|
|
24
|
|
|
1,614,533
|
|
|
30
|
|
||
Noninterest-bearing accounts - other
|
|
247,488
|
|
|
5
|
|
|
203,175
|
|
|
4
|
|
||
Total deposits
|
|
$
|
5,257,057
|
|
|
100
|
%
|
|
$
|
5,339,959
|
|
|
100
|
%
|
|
At or For the Three Months Ended March 31,
|
||||
|
2020
|
|
2019
|
||
|
|
|
|
||
Return on assets (1)(4)
|
0.42
|
%
|
|
(0.10
|
)%
|
Return on equity (2)(4)
|
4.13
|
|
|
(0.91
|
)
|
Equity to assets ratio (3)
|
10.13
|
|
|
10.43
|
|
(1)
|
Net income divided by average total assets.
|
(2)
|
Net income divided by average common shareholders' equity.
|
(3)
|
Average equity divided by average total assets.
|
(4)
|
Net income includes both continuing and discontinued operations for the three months ended March 31, 2019.
|
|
At March 31, 2020
|
||||||||
(in thousands)
|
Amount(1)
|
|
Percent of
Allowance to Total Allowance |
|
Loan
Category as a % of Total Loans |
||||
|
|
|
|
|
|
||||
Consumer loans
|
|
|
|
|
|
||||
Single family
|
$
|
8,587
|
|
|
14
|
%
|
|
20
|
%
|
Home equity and other
|
12,891
|
|
|
21
|
|
|
10
|
|
|
Total consumer loans
|
21,478
|
|
|
35
|
|
|
30
|
|
|
Commercial real estate loans
|
|
|
|
|
|
||||
Non-owner occupied commercial real estate
|
9,027
|
|
|
15
|
|
|
17
|
|
|
Multifamily
|
4,275
|
|
|
7
|
|
|
23
|
|
|
Construction/land development
|
|
|
|
|
|
||||
Multifamily construction
|
3,658
|
|
|
6
|
|
|
3
|
|
|
Commercial real estate construction
|
396
|
|
|
1
|
|
|
1
|
|
|
Single family construction
|
7,352
|
|
|
12
|
|
|
5
|
|
|
Single family construction to permanent
|
1,985
|
|
|
3
|
|
|
3
|
|
|
Total commercial real estate loans
|
26,693
|
|
|
44
|
|
|
52
|
|
|
Commercial and industrial loans
|
|
|
|
|
|
||||
Owner occupied commercial real estate
|
4,166
|
|
|
7
|
|
|
9
|
|
|
Commercial business
|
8,269
|
|
|
14
|
|
|
9
|
|
|
Total commercial and industrial loans
|
12,435
|
|
|
21
|
|
|
18
|
|
|
Total allowance for credit losses including unfunded commitments
|
$
|
60,606
|
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Excludes loans held for investment balances that are carried at fair value.
|
|
At December 31, 2019
|
||||||||
(in thousands)
|
Amount(1)
|
|
Percent of
Allowance to Total Allowance |
|
Loan
Category as a % of Total Loans |
||||
|
|
|
|
|
|
||||
Consumer loans
|
|
|
|
|
|
||||
Single family
|
$
|
6,450
|
|
|
15
|
%
|
|
21
|
%
|
Home equity and other
|
6,843
|
|
|
16
|
|
|
10
|
|
|
Total consumer loans
|
13,293
|
|
|
31
|
|
|
31
|
|
|
Commercial real estate loans
|
|
|
|
|
|
||||
Non-owner occupied commercial real estate
|
7,249
|
|
|
17
|
|
|
18
|
|
|
Multifamily
|
7,015
|
|
|
17
|
|
|
20
|
|
|
Construction land development
|
8,679
|
|
|
20
|
|
|
14
|
|
|
Total commercial real estate loans
|
22,943
|
|
|
54
|
|
|
52
|
|
|
Commercial and industrial loans
|
|
|
|
|
|
||||
Owner occupied commercial real estate
|
3,640
|
|
|
8
|
|
|
9
|
|
|
Commercial business
|
2,961
|
|
|
7
|
|
|
8
|
|
|
Total commercial and industrial loans
|
6,601
|
|
|
15
|
|
|
17
|
|
|
Total allowance for credit losses
|
$
|
42,837
|
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Excludes loans held for investment balances that are carried at fair value.
|
|
At March 31, 2020
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
57,504
|
|
|
$
|
1,251
|
|
|
$
|
58,755
|
|
Home equity and other
|
786
|
|
|
19
|
|
|
805
|
|
|||
|
58,290
|
|
|
1,270
|
|
|
59,560
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Owner occupied commercial real estate
|
—
|
|
|
678
|
|
|
678
|
|
|||
Commercial business
|
46
|
|
|
1,342
|
|
|
1,388
|
|
|||
|
46
|
|
|
2,020
|
|
|
2,066
|
|
|||
|
$
|
58,336
|
|
|
$
|
3,290
|
|
|
$
|
61,626
|
|
(1)
|
Includes loan balances insured by the FHA or guaranteed by the VA of $47.1 million at March 31, 2020.
|
|
At December 31, 2019
|
||||||||||
(in thousands)
|
Accrual
|
|
Nonaccrual
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Consumer
|
|
|
|
|
|
||||||
Single family (1)
|
$
|
59,809
|
|
|
$
|
1,694
|
|
|
$
|
61,503
|
|
Home equity and other
|
853
|
|
|
9
|
|
|
862
|
|
|||
|
60,662
|
|
|
1,703
|
|
|
62,365
|
|
|||
Commercial and industrial loans
|
|
|
|
|
|
||||||
Commercial business
|
48
|
|
|
222
|
|
|
270
|
|
|||
|
48
|
|
|
222
|
|
|
270
|
|
|||
|
$
|
60,710
|
|
|
$
|
1,925
|
|
|
$
|
62,635
|
|
•
|
The modification is in response to the National Emergency;
|
•
|
The borrower was current at the time the modification program was implemented; and
|
•
|
The modification is short-term
|
|
|
Requests
|
|
Granted
|
||||||||||||||||
(dollars in thousands)
|
|
Number of loans
|
|
Amount
|
|
As a % of loan category
|
|
Number of loans
|
|
Amount
|
|
As a % of loan category
|
||||||||
Single family
|
|
230
|
|
|
$
|
88,742
|
|
|
6
|
%
|
|
230
|
|
|
$
|
88,742
|
|
|
6
|
%
|
Commercial real estate
|
|
18
|
|
|
98,583
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential construction
|
|
11
|
|
|
10,254
|
|
|
2
|
|
(1)
|
—
|
|
|
—
|
|
|
—
|
|
||
Commercial and industrial
|
|
307
|
|
|
229,408
|
|
|
25
|
|
(1)
|
163
|
|
|
134,223
|
|
|
15
|
|
||
Total loans
|
|
566
|
|
|
$
|
426,987
|
|
|
8
|
%
|
|
393
|
|
|
$
|
222,965
|
|
|
4
|
%
|
|
At March 31, 2020
|
||||||||||||||||||||||
(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
|
$
|
5,872
|
|
|
$
|
2,501
|
|
|
$
|
5,489
|
|
|
$
|
20,845
|
|
(1)
|
$
|
34,707
|
|
|
$
|
1,343
|
|
Home equity and other
|
1,210
|
|
|
274
|
|
|
1,253
|
|
|
—
|
|
|
2,737
|
|
|
—
|
|
||||||
|
7,082
|
|
|
2,775
|
|
|
6,742
|
|
|
20,845
|
|
|
37,444
|
|
|
1,343
|
|
||||||
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied commercial real estate
|
—
|
|
|
—
|
|
|
3,050
|
|
|
—
|
|
|
3,050
|
|
|
—
|
|
||||||
Commercial business
|
—
|
|
|
—
|
|
|
3,183
|
|
|
—
|
|
|
3,183
|
|
|
—
|
|
||||||
|
—
|
|
|
—
|
|
|
6,233
|
|
|
—
|
|
|
6,233
|
|
|
—
|
|
||||||
Total
|
$
|
7,082
|
|
|
$
|
2,775
|
|
|
$
|
12,975
|
|
|
$
|
20,845
|
|
|
$
|
43,677
|
|
|
$
|
1,343
|
|
(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 March 31, 2020, these past due loans totaled $20.8 million.
|
|
At December 31, 2019
|
||||||||||||||||||||||
(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
|
$
|
5,694
|
|
|
$
|
4,261
|
|
|
$
|
5,364
|
|
|
$
|
19,702
|
|
(1)
|
$
|
35,021
|
|
|
$
|
1,393
|
|
Home equity and other
|
837
|
|
|
372
|
|
|
1,160
|
|
|
—
|
|
|
2,369
|
|
|
—
|
|
||||||
|
6,531
|
|
|
4,633
|
|
|
6,524
|
|
|
19,702
|
|
|
37,390
|
|
|
1,393
|
|
||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied commercial real estate
|
—
|
|
|
—
|
|
|
2,891
|
|
|
—
|
|
|
2,891
|
|
|
—
|
|
||||||
Commercial business
|
44
|
|
|
—
|
|
|
3,446
|
|
|
—
|
|
|
3,490
|
|
|
—
|
|
||||||
|
44
|
|
|
—
|
|
|
6,337
|
|
|
—
|
|
|
6,381
|
|
|
—
|
|
||||||
Total
|
$
|
6,575
|
|
|
$
|
4,633
|
|
|
$
|
12,861
|
|
|
$
|
19,702
|
|
|
$
|
43,771
|
|
|
$
|
1,393
|
|
(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, 2019, these past due loans totaled $19.7 million.
|
|
|
At March 31, 2020
|
|||||||||||||||||||
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)
|
|
$
|
671,528
|
|
|
10.06
|
%
|
|
$
|
267,050
|
|
|
4.0
|
%
|
|
$
|
333,812
|
|
|
5.0
|
%
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
671,528
|
|
|
12.75
|
|
|
237,045
|
|
|
4.5
|
|
|
342,398
|
|
|
6.5
|
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
671,528
|
|
|
12.75
|
|
|
316,060
|
|
|
6.0
|
|
|
421,413
|
|
|
8.0
|
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
734,616
|
|
|
13.95
|
|
|
421,413
|
|
|
8.0
|
|
|
526,767
|
|
|
10.0
|
|
|
|
At March 31, 2020
|
|||||||||||||||||||
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)
|
|
$
|
685,710
|
|
|
10.15
|
%
|
|
$
|
270,279
|
|
|
4.0
|
%
|
|
$
|
337,849
|
|
|
5.0
|
%
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
625,710
|
|
|
11.24
|
|
|
250,553
|
|
|
4.5
|
|
|
361,911
|
|
|
6.5
|
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
685,710
|
|
|
12.32
|
|
|
334,071
|
|
|
6.0
|
|
|
445,428
|
|
|
8.0
|
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
751,720
|
|
|
13.50
|
|
|
445,428
|
|
|
8.0
|
|
|
556,786
|
|
|
10.0
|
|
|
|
At December 31, 2019
|
|||||||||||||||||||
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)
|
|
$
|
712,596
|
|
|
10.56
|
%
|
|
$
|
269,930
|
|
|
4.0
|
%
|
|
$
|
337,413
|
|
|
5.0
|
%
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
712,596
|
|
|
13.50
|
|
|
237,451
|
|
|
4.5
|
|
|
342,985
|
|
|
6.5
|
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
712,596
|
|
|
13.50
|
|
|
316,602
|
|
|
6.0
|
|
|
422,136
|
|
|
8.0
|
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
758,303
|
|
|
14.37
|
|
|
422,136
|
|
|
8.0
|
|
|
527,669
|
|
|
10.0
|
|
|
|
At December 31, 2019
|
|||||||||||||||||||
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)
|
|
$
|
691,323
|
|
|
10.16
|
%
|
|
$
|
272,253
|
|
|
4.0
|
%
|
|
$
|
340,316
|
|
|
5.0
|
%
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
631,323
|
|
|
11.43
|
|
|
248,523
|
|
|
4.5
|
|
|
358,977
|
|
|
6.5
|
|
|||
Tier 1 risk-based capital (to risk-weighted assets)
|
|
691,323
|
|
|
12.52
|
|
|
331,364
|
|
|
6.0
|
|
|
441,818
|
|
|
8.0
|
|
|||
Total risk-based capital (to risk-weighted assets)
|
|
739,812
|
|
|
13.40
|
|
|
441,818
|
|
|
8.0
|
|
|
552,273
|
|
|
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.
|
|
March 31, 2020
|
||||||||||||||||||||||||||||||
(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
|
$
|
72,441
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
72,441
|
|
FHLB Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,795
|
|
|
—
|
|
|
26,795
|
|
||||||||
Investment securities (1)
|
134,497
|
|
|
61,026
|
|
|
67,382
|
|
|
147,287
|
|
|
116,211
|
|
|
532,089
|
|
|
—
|
|
|
1,058,492
|
|
||||||||
Mortgage loans held for sale (3)
|
140,527
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140,527
|
|
||||||||
Loans held for investment
|
1,345,532
|
|
|
372,839
|
|
|
550,194
|
|
|
1,149,605
|
|
|
988,801
|
|
|
686,258
|
|
|
—
|
|
|
5,093,229
|
|
||||||||
Total interest-earning assets
|
1,692,997
|
|
|
433,865
|
|
|
617,576
|
|
|
1,296,892
|
|
|
1,105,012
|
|
|
1,245,142
|
|
|
—
|
|
|
6,391,484
|
|
||||||||
Non-interest-earning assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
415,234
|
|
|
415,234
|
|
||||||||
Total assets
|
$
|
1,692,997
|
|
|
$
|
433,865
|
|
|
$
|
617,576
|
|
|
$
|
1,296,892
|
|
|
$
|
1,105,012
|
|
|
$
|
1,245,142
|
|
|
$
|
415,234
|
|
|
$
|
6,806,718
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
NOW accounts (2)
|
$
|
420,606
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
420,606
|
|
Statement savings accounts (2)
|
222,821
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
222,821
|
|
||||||||
Money market
accounts (2)
|
2,299,442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,299,442
|
|
||||||||
Certificates of deposit
|
309,819
|
|
|
298,972
|
|
|
432,169
|
|
|
232,139
|
|
|
24,800
|
|
|
25
|
|
|
—
|
|
|
1,297,924
|
|
||||||||
FHLB advances
|
458,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,590
|
|
|
—
|
|
|
463,590
|
|
||||||||
Other borrowings
|
95,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95,000
|
|
||||||||
Long-term debt (3)
|
60,697
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65,000
|
|
|
—
|
|
|
125,697
|
|
||||||||
Total interest-bearing liabilities
|
3,866,385
|
|
|
298,972
|
|
|
432,169
|
|
|
232,139
|
|
|
24,800
|
|
|
70,615
|
|
|
—
|
|
|
4,925,080
|
|
||||||||
Non-interest bearing liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,204,324
|
|
|
1,204,324
|
|
||||||||
Equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
677,314
|
|
|
677,314
|
|
||||||||
Total liabilities and shareholders' equity
|
$
|
3,866,385
|
|
|
$
|
298,972
|
|
|
$
|
432,169
|
|
|
$
|
232,139
|
|
|
$
|
24,800
|
|
|
$
|
70,615
|
|
|
$
|
1,881,638
|
|
|
$
|
6,806,718
|
|
Interest sensitivity gap
|
$
|
(2,173,388
|
)
|
|
$
|
134,893
|
|
|
$
|
185,407
|
|
|
$
|
1,064,753
|
|
|
$
|
1,080,212
|
|
|
$
|
1,174,527
|
|
|
|
|
|
||||
Cumulative interest sensitivity gap
|
$
|
(2,173,388
|
)
|
|
$
|
(2,038,495
|
)
|
|
$
|
(1,853,088
|
)
|
|
$
|
(788,335
|
)
|
|
$
|
291,877
|
|
|
$
|
1,466,404
|
|
|
|
|
|
||||
Cumulative interest sensitivity gap as a percentage of total assets
|
(32
|
)%
|
|
(30
|
)%
|
|
(27
|
)%
|
|
(12
|
)%
|
|
4
|
%
|
|
22
|
%
|
|
|
|
|
||||||||||
Cumulative interest-earning assets as a percentage of cumulative interest-bearing liabilities
|
44
|
%
|
|
51
|
%
|
|
60
|
%
|
|
84
|
%
|
|
106
|
%
|
|
130
|
%
|
|
|
|
|
(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 contractual maturity or our expected sale date.
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||
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
|
|
2.5
|
%
|
|
(10.2
|
)%
|
|
1.0
|
%
|
|
(11.6
|
)%
|
+100
|
|
1.3
|
|
|
(4.1
|
)
|
|
0.6
|
|
|
(5.4
|
)
|
-100
|
|
(2.5
|
)
|
|
2.8
|
|
|
(0.9
|
)
|
|
4.1
|
|
-200
|
|
(3.6
|
)
|
|
1.4
|
|
|
(2.4
|
)
|
|
6.5
|
|
(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
|
•
|
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.
|
•
|
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.
|
•
|
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, as was the case with our 2018 proxy fight, 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.
|
•
|
Global economic events, such as the economic crisis related to the COVID-19 outbreak
|
•
|
Market responses to times of considerable uncertainty
|
•
|
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;
|
•
|
Repurchase activity by us under our stock repurchase program;
|
•
|
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;
|
•
|
Trends relating to the economic markets generally; or
|
•
|
Changes in laws and regulations affecting financial institutions.
|
•
|
A phased-out classified Board of Directors so that until 2022, only a portion of our board of directors will be 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
|
(in thousands, expect share and per share information)
|
|
Total shares of common stock purchased (1)
|
|
Average price paid per share of common stock (2)
|
|
Total number of shares purchased as part of publicly announced plans
|
|
Dollar value of remaining authorized repurchase
|
|
|||||||
January
|
|
261,152
|
|
|
$
|
32.85
|
|
|
240,851
|
|
|
$
|
146
|
|
(3
|
)
|
February
|
|
4,360
|
|
|
31.85
|
|
|
4,067
|
|
|
—
|
|
(3
|
)
|
||
March
|
|
338,057
|
|
|
23.71
|
|
|
335,360
|
|
|
17,056
|
|
(4
|
)
|
||
Three months ended March 31, 2020
|
|
603,569
|
|
|
27.72
|
|
|
580,278
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
ITEM 3
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4
|
MINE SAFETY DISCLOSURES
|
ITEM 5
|
OTHER INFORMATION
|
ITEM 6
|
EXHIBITS
|
Exhibit
Number
|
|
Description
|
|
|
|
10.1
|
|
|
10.2
|
|
|
31.1
|
|
|
31.2
|
|
|
32 (1)
|
|
|
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
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
(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.
|
|
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)
|
/s/ Mark R. Ruh
|
2/27/2020
|
Mark R. Ruh
|
Date
|
/s/ Mark K. Mason
|
2/27/2020
|
By: Mark. K Mason
Its: Chief Executive Officer
|
Date
|
I.
|
EMPLOYMENT
|
A.
|
Position and Duties
|
B.
|
Term of Agreement
|
II.
|
COMPENSATION AND BENEFITS
|
A.
|
Annual Salary
|
B.
|
Sign-On Bonus
|
C.
|
Annual Incentive Compensation
|
D.
|
Equity Compensation
|
E.
|
Relocation Assistance
|
F.
|
Benefits
|
G.
|
Business Expenses
|
III.
|
TERMINATION
|
A.
|
Employment Termination
|
B.
|
Automatic Termination on Death or Total Disability
|
C.
|
Termination with Cause or Resignation Without Good Reason
|
D.
|
Termination Without Cause or Executive Resigns for Good Reason
|
E.
|
Definitions of “Cause”, “Good Reason”
|
1.
|
Cause
|
2.
|
Good Reason
|
IV.
|
CONFIDENTIALITY; NON-SOLICITATION
|
V.
|
ASSIGNMENT
|
VI.
|
MISCELLANEOUS
|
1.
|
“Confidential Information” means information concerning the business, operations, strategies, financial status, products, services, customer names, customer lists and customer information of HomeStreet, which is confidential or proprietary to HomeStreet.
|
2.
|
Confidential Information does not include information that: (a) is or becomes generally available to the public through no fault or act of Recipient or any of his Representatives in violation of this Agreement; (b) is or becomes available to Recipient or his representatives on a non-confidential basis from a source other than HomeStreet not known to Recipient or such Representatives to be prohibited from disclosing such information by a contractual, legal or fiduciary obligation of confidentiality; (c) is independently developed by the Recipient or his representatives without use of or reliance on, either directly or indirectly, Confidential Information; or (d) was known to or in the possession of Recipient or one of his representatives on a non-confidential basis prior to disclosure by HomeStreet under the terms of this Agreement; or (e) is developed primarily through the efforts or work product of Executive.
|
3.
|
After the termination of his services or employment agreement, Recipient agrees not to disclose any Confidential Information to any third party, unless such third party is a fiduciary, affiliate or HomeStreet vendor and such vendor and HomeStreet have signed a similar confidentiality agreement, or such disclosure of Confidential Information is required by lawful judicial or governmental order or is covered by paragraph 4 below. Recipient agrees to give HomeStreet reasonable notice in writing in advance of releasing Confidential Information pursuant to any judicial or governmental order, except for disclosures described in paragraph 4, below. Recipient additionally agrees to implement and maintain at all times reasonably appropriate procedures and controls to ensure at all times the security and confidentiality of all of HomeStreet’s Confidential Information, to protect against any anticipated threats or hazards to the security or integrity of such information; and to protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to Home Street or any customer of HomeStreet. Recipient agrees to notify HomeStreet of any known security breach, any known unauthorized release of Confidential Information, or any known unauthorized attempt to access Confidential Information of which it becomes aware within a reasonable time of the occurrence of such event. Such notice will include, at a minimum, the date and time of any such event, the nature and extent
|
4.
|
Executive understands and acknowledges that nothing in this Agreement prohibits or limits Executive or Executive’s counsel from initiating communications directly with, responding to any inquiry from, volunteering information to, or providing testimony before, the Securities and Exchange Commission regarding this agreement and its underlying facts and circumstances, or any reporting of, investigation into, or proceeding regarding suspected violations of law, and that Executive is not required to advise or seek permission from HomeStreet before engaging in any such activity. Executive recognizes that, in connection with any such activity, Executive must inform such authority that the information Executive is providing is confidential. Despite the foregoing, Executive is not permitted to reveal to any third-party, including any governmental, law enforcement, or regulatory authority, information Executive came to learn during the course of employment with HomeStreet that is protected from disclosure by any applicable privilege, including but not limited to the attorney-client privilege, attorney work product doctrine and/or other applicable legal privileges. HomeStreet does not waive any applicable privileges or the right to continue to protect its privileged attorney-client information, attorney work product, and other privileged information. Additionally, Executive recognizes that Executive’s ability to disclose information may be limited or prohibited by applicable law and the Company does not consent to disclosures that would violate applicable law. Such applicable laws include, without limitation, laws and regulations restricting disclosure of confidential supervisory information (any information or materials relating to the examination and supervision of the Company by applicable bank regulatory agencies, Company materials responding to or referencing non-public information relating to examinations or supervision by bank regulatory agencies and correspondence to or from applicable banking regulators) or disclosures subject to the Bank Secrecy Act, including information that would reveal the existence or contemplated filing of a suspicious activity report.
|
5.
|
All Confidential Information is and shall remain the property of HomeStreet. No license or conveyance of any right is granted or implied by the distribution of any Confidential Information to Recipient. Recipient agrees not to use, duplicate, or reproduce in any way any Confidential Information for Recipient’s own benefit or financial gain, or for any third party’s benefit or financial gain except to the extent reasonably necessary to analyze and prepare a business proposal to HomeStreet, in connection with rendering services to HomeStreet and to prepare and maintain his internal files in the ordinary course of its business. All documents (originals and copies, including electronic versions) containing Confidential Information shall either be destroyed or disposed of in a manner consistent with the Fair and Accurate Credit Transactions Act of 2003 or, if directed by HomeStreet, returned to HomeStreet upon termination of the rendering of services to HomeStreet by Recipient. Recipient agrees that HomeStreet may take reasonable actions as deemed appropriate by HomeStreet to confirm that Recipient has satisfied these obligations. It is understood that Recipient may retain one archival copy of such information for his internal files except for Bank customer loan files and documents containing private customer information.
|
6.
|
Executive understands that pursuant to the federal Defense of Trade Secrets Act, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and
|
7.
|
By making any Confidential Information available to Recipient, HomeStreet makes no representation, warranty or guarantee, either express or implied, as to the accuracy or completeness of any Confidential Information or to the format in which such Confidential Information is provided to Recipient. Except as otherwise provided in any engagement letter, HomeStreet shall not be liable to any party for damages, of whatever kind, as a result of Recipient’s reliance on any Confidential Information or any format in which Confidential Information is made available to Recipient.
|
8.
|
Recipient acknowledges that due to the highly sensitive nature of the Confidential Information, Recipient will be liable to HomeStreet for all losses suffered by HomeStreet as a result of Recipient’s intentional and material breach of this Agreement. In addition to any other remedies available to HomeStreet, Recipient agrees that, if Recipient breaches this Agreement, HomeStreet may seek injunctive relief against Recipient to stop any such breach.
|
9.
|
If either Party to this Agreement commences legal action to enforce any rights arising out of or relating to this Agreement, the prevailing Party in any such action shall be entitled to recover reasonable attorneys’ fees and costs, including fees and costs on appeal. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Washington and the venue for any legal action shall be Seattle, Washington.
|
10.
|
If Recipient and HomeStreet have entered into any other agreement, the terms of this Agreement shall, by this reference, be incorporated into and made a part of such other agreement, except to the extent otherwise specifically provided in such other agreement. The terms of this Agreement shall survive the termination of rendering of services to HomeStreet by Recipient for a period of ten years.
|
11.
|
During Employee’s employment with the Company and/or a successor employer and for eighteen (18) months after the termination of such employment, Employee will not, directly or indirectly, on his own or on behalf of any other entity: (1) induce, or attempt to induce, any employee, executive, or independent contractor of the Company to cease such employment or relationship with HomeStreet; (2) engage, employ, contract with, or participate in ownership with any person who was an employee, executive, or independent contractor for HomeStreet within the six (6) months immediately prior to such engagement, employment, contract or other business relationship on behalf of any Competing Business (defined below); or (3) solicit, divert, appropriate to or accept on behalf of any Competing Business, any business or account from any customer of the Company with whom Employee has interacted as part of his duties with the Company or about whom Employee has acquired confidential information in the course of his employment, or encourage or entice any such customer to cease its business or banking relationship with the Company. “Competing Business” means any bank or thrift with an office or branch in Washington, Oregon, Idaho, Utah, California or Hawaii or any other state where the Company has an office or branch and employs fifteen or more people.
|
12.
|
Employee acknowledges and agrees that the restrictive covenants in this Agreement are reasonable and necessary to protect HomeStreet’s goodwill, confidential and proprietary information, trade secrets, business strategies, customer relationships and other legitimate business interests, that irreparable injury will result to the Company if Employee breaches or threatens to breach any terms of the Agreement, and that in the event Employee breaches or threatens to breach any terms of the Agreement, HomeStreet will have no adequate remedy at law. Employee accordingly agrees that in the event of any actual or threatened breach by his of any of the terms of the Agreement, HomeStreet shall be entitled to immediate temporary injunctive and other equitable relief, and without the necessity of showing actual monetary damages, subject to hearing as soon thereafter as possible. Nothing contained herein shall be construed as prohibiting HomeStreet from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of any damages which it is able to prove. If a bond is required in any action to enforce a right under this Agreement, including an action for a Temporary Restraining Order or Preliminary Injunction, the parties hereto agree that a reasonable amount of bond is $100.
|
13.
|
Employee agrees that a successor in interest to HomeStreet may enforce the rights set forth in this Agreement following a change of control, without further express consent by Employee and that HomeStreet may, at its option, assign its rights to any successor or assign. Any amendment to or modification of this Agreement, or waiver of any obligation hereunder, shall be in writing signed by the party to be bound thereby. Any waiver by HomeStreet of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of the provision or as a waiver of a breach of any other provision of this Agreement.
|
14.
|
This Agreement shall be governed by the law of the State of Washington. This Agreement sets forth the entire agreement, and supersedes any prior agreements, with regard to the subject matter hereof. Employee acknowledges that he/she has carefully read all of the provisions of this Agreement and agree that (a) the same are necessary for the reasonable and proper protection of the Company’s business, (b) every provision of this Agreement is reasonable with respect to its scope and duration and (c) he/she has received a copy of this Agreement and had the opportunity to review, and in fact reviewed it with legal counsel. If either Party to this Agreement commences legal action to enforce any rights arising out of or relating to this Agreement, the prevailing Party in any such action shall be entitled to recover reasonable attorneys’ fees and costs, including fees and costs on appeal. The venue for any legal action shall be Seattle, Washington. If a court of law holds any provision of this Agreement to be illegal, invalid or unenforceable, (a) that provision shall be deemed amended to achieve an economic effect that is as near as possible to that provided by the original provision and (b) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected.
|
A.
|
Assets means all or substantially all of the assets of the Company, as they shall be held by the Company from time to time, including the assets of all divisions, segments, and business units in existence at such time.
|
B.
|
Change in Control means except for a sale of the Company’s stock in a broad-based public offering:
|
1.
|
One person or entity acquiring or otherwise becoming the owner of fifty percent (50%) or more of the Company’s outstanding shares; or
|
2.
|
Dissolution or sale of fifty percent (50%) or more in value of the assets of either HomeStreet, Inc. or HomeStreet Bank; or
|
3.
|
A change “in the ownership or effective control” or “in the ownership of a substantial portion of the assets” of Employer, within the meaning of Section 280G or the Internal Revenue Code.
|
C.
|
Good Reason means that Executive, without his consent, has experienced one of the following events or circumstances:
|
1.
|
the assignment to the Executive of any duties materially diminished from those in effect immediately prior to such assignment;
|
2.
|
a change in the Executive’s authority, duties or responsibilities which represents a material adverse change from those in effect immediately prior to such change;
|
3.
|
a material decrease in the Executive’s annual Salary or elimination or reduction of any material benefit that HomeStreet otherwise provides to its executives of similar rank (except those changes to any benefit or benefit program implemented for all Company employees who participate in such benefits or programs or that may be required by law) without his prior written agreement;
|
4.
|
relocation of Executive’s principal place of employment to a location that increases the Executive’s commute from his primary residence by more than 30 miles one way;
|
5.
|
any other action or inaction that constitutes a material breach of the terms of the Agreement by the Company;
|
6.
|
or to comply with Section 409A of the Code, the Executive’s termination of employment will not be for Good Reason unless (i) Executive notifies the Company in writing of the existence of the condition which Executive believes constitutes Good Reason within sixty (60) days of the initial existence of such condition (which notice specifically identifies such condition), and (ii) the Company fails to remedy such condition within thirty (30) days after the date on which it receives such notice (the “Remedial Period”) whereupon Executive’s employment shall be deemed to be terminated for Good Reason upon failure of the Company to remedy. If Company attempts to cure, or disputes the existence of Good Reason, it shall provide documentary evidence thereof to Executive within the Remedial Period. Executive may elect to remain employed by Company and dispute any response by Company during the Remedial Period, without prejudice to the claim of Good Reason, by invoking the provisions of Article VI.I. If Executive terminates employment before the expiration of the Remedial Period or after the Company remedies the condition (even if within the end of the Remedial Period), then Executive’s termination will not be considered to be for Good Reason. Even where the parties dispute the existence of Good Reason and Executive invokes a dispute resolution process, Executive’s “separation from service” must occur no later than six months following the initial existence of the circumstances giving rise to Good Reason.
|
D.
|
Control means owning, and having the present and continuing right to exercise control over, a majority of the voting power of, and right to exercise control over management of, any entity, which right is not subject to any material limitations, qualifications, or exceptions (whether temporary or permanent).
|
E.
|
Termination for Cause means a termination of Employee’s employment by reason of Employee’s:
|
1.
|
Breach of any contractual obligation to the Company (including violation of any Confidentiality, Nonsolicitation and Noncompetition Agreement that Employee
|
2.
|
Willful breach or neglect of duties he/she is required to perform, provided Employee has not cured such breach within fourteen (14) days of receipt of written notice of such breach from the Company;
|
3.
|
Commission of act(s) of dishonesty, theft, embezzlement, fraud, misrepresentation or other act(s) of moral turpitude against the Company, its subsidiaries or affiliates, its shareholders or employees or which adversely impact the interest of Employer;
|
4.
|
Willful and continual failure to comply with any law, rule or regulation (other than traffic violations or similar offenses), provided that Employee has been given written notice of such failure and has not complied within fourteen (14) days after receipt of such notice (from the Company or a regulator or other authoritative source), or final cease and desist order of a regulatory agency having jurisdiction over Employer;
|
5.
|
Failure to follow direction, which failure is not corrected within fourteen (14) days after receipt by Employee of written notice outlining the corrective action required;
|
6.
|
Death or disability (“disability” is defined as the inability to perform the duties of his position for a consecutive period of 120 days or for any 150 days in any calendar year); or
|
7.
|
Other conduct or omission by Employee that Employer concludes is materially injurious to the Employer’s interests.
|
F.
|
Transfer shall mean the sale, transfer, or disposition of all or substantially all of the Assets in a single transaction or group of related transactions, but shall not include the sale, transfer, or disposition of any of the Assets in the ordinary course of business.
|
A.
|
Death. Should Employee die after becoming entitled to but before receipt of the Change in Control Payment under Section I of this agreement, then such payment will be made to the executors or administrators of his estate.
|
B.
|
General Creditor Status. The payment to which Employee may become entitled hereunder will be paid, when due, from the general assets of the Company, and no trust fund, escrow arrangement or other segregated account will be established as a funding vehicle for such payment. Accordingly, Employee’s right (or the right of the personal representatives or beneficiaries of Employee’s estate) to receive any payment hereunder will at all times be that of a general creditor of the Company and will have no priority over the claims of other general creditors.
|
C.
|
Regulatory Effect. The terms of this CIC Agreement and the payment of any Change in Control Payment is subject to and may be limited by applicable statutory, regulatory, contractual or other legal restriction binding on the Company or any required regulatory approval.
|
D.
|
Miscellaneous. This CIC Agreement will be binding upon the Company, its successors and assigns (including, without limitation, the surviving entity in any Change in Control) and is to be construed and interpreted under the laws of the State of Washington. This CIC Agreement shall be interpreted and administered in order to be an exempt “short term deferral” under Section 409A of the Internal Revenue Code and the regulations thereunder. This CIC Agreement may be amended only by written instrument signed by Employee and an authorized officer of the Company other than Employee. It supersedes all other Change in Control agreements executed by Employee and the Company. If any provision of this CIC Agreement as applied to Employee or the Company or to any circumstance should be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the invalidity of that provision will in no way affect (to the maximum extent permissible by law) the application of such provision under circumstances different from those adjudicated by the court, the application of any other provision of this CIC Agreement, or the enforceability or invalidity of this CIC Agreement as a whole. Should any provision of this CIC Agreement become or be deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent or duration of its coverage, then such provision will be deemed amended to the extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision will be stricken and the remainder of this CIC Agreement will continue in full force and effect.
|
E.
|
Attorneys’ Fees. In the event of any legal proceeding with respect to any controversy, claim or dispute relating to the interpretation or application of the provisions of this letter agreement or any benefits payable hereunder, the prevailing party in such proceedings will be entitled to recover from the losing party reasonable attorney fees and costs incurred in connection with such proceedings or in the enforcement or
|
F.
|
Internal Revenue Code Section 280G. Notwithstanding anything in this CIC Agreement to the contrary, if it is determined by legal counsel (or other tax advisor to Employee) that the total of the Change in Control Payment, together with any other payments or benefits paid by the Employer to Employee, would constitute an "excess parachute payment" within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended, and the net after-tax amount that Employee would realize from such compensation, considering Employee's federal and state income tax brackets and the excise tax, would be greater if the compensation payable hereunder were limited, then the compensation payable hereunder shall be limited in the manner determined by such counsel or advisor, to maximize Employee's net after-tax income.
|
|
HOMESTREET BANK
|
|
|
/s/ John Michel
|
By: _____Mark Mason____________________
|
Employee
|
Its: ____President & CEO_________________
|
|
|
Date: ______5/4/2020____________________
|
Date: _______5-4-2020_______________
|
|
|
|
HOMESTREET, INC.
|
|
|
|
By: _____Mark Mason____________________
|
|
Its: ____President & CEO_________________
|
|
|
|
Date: _______5-4-2020_______________
|
Relocation Estimates
|
Maximum Relocation Reimbursement
|
||
Closing Costs on Existing Home
|
$96,000 Taxable
|
|
|
Temporary Housing
|
$60,000 Taxable
|
|
|
Moving Household Goods
|
$15,000 Non-Taxable
|
|
|
Travel Expense for Home Shopping
|
$8,000 Taxable
|
|
|
Total
|
|
$179,000
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2020 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:
|
May 8, 2020
|
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 March 31, 2020 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:
|
May 8, 2020
|
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 quarter ended March 31, 2020 (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:
|
May 8, 2020
|
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 March 31, 2020 (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:
|
May 8, 2020
|
By:
|
/s/ Mark R. Ruh
|
|
|
|
Mark R. Ruh
|
|
|
|
Executive Vice President, Chief Financial Officer and Principal Accounting Officer
|
|
|
|
|
|
|
|