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