HomeStreet reports Q3 core EPS 12c, consensus 5c

“Our operating results for the quarter reflect the continuing adverse impact of the historically record velocity and magnitude of increases in short-term interest rates,” said Mark K. Mason HomeStreet’s Chairman of the Board, President, and Chief Executive Officer. “The high interest rate environment has significantly negatively impacted our net interest margin as well as loan volume in our residential and commercial mortgage banking businesses whose activity continues at historically low levels. To mitigate these challenges, we have reduced controllable expenses where possible, reduced staff to the minimum levels to transact current business volume in a safe and sound manner, raised new deposits through promotional products and focused our new loan origination activity primarily on floating rate products such as commercial loans, residential construction loans and home equity loans. Due to historically low levels of prepayments, our loan portfolio has remained stable even with our reduced level of originations.”