Document

EX-99.1 2 a3q2024earningsrelease.htm Q3 2024 EARNINGS RELEASE Document

homestreet報告2024年第三季度業績

西雅圖-2024年10月29日-（商業線）- homestreet公司(Nasdaq: HMST)（包括其合併附屬公司，"公司"，"homestreet"或"我們"), homestreet銀行的母公司，今天宣佈了截至2024年9月30日季度的財務業績。由於我們在本發佈中提供非GAAP財務指標，讀者應參閱下文「非GAAP財務指標」一節中的非GAAP調節。


運營結果						2024年第三季度相對於2024年第二季度報告結果： •淨虧損：730萬美元相比於620萬美元 •每股攤薄淨虧損：0.39美元相比於0.33美元 •淨利息收益率：1.33%相比於1.37%
						核心結果 (1): •淨虧損：600萬美元相比於430萬美元 •每股全攤薄的淨虧損爲0.32美元，相比0.23美元

(1) 核心虧損和每股全攤薄核心虧損是非通用會計準則。有關這些衡量指標與最接近的通用會計準則指標的調和，請參閱本收益報告中的「非通用財務指標」

由於非利息收入和淨利息收益較低，我們的淨虧損和核心淨虧損在第三季度較第二季度有所增加，這是董事會主席、總裁兼首席執行官馬克·梅森說的。在季度內，儘管我們的淨利息收益略有下降，但我們看到它在季度後期趨於穩定。隨着短期利率近期下降，我們預計我們的融資成本將在第四季度及以後降低，我們的利率期貨也將開始增加。在第三季度，我們降低了我們推廣的存款證書的利率，預期在短期利率近期持續降低的情況下，我們將以較短存期的存款證書提供最高的利率。 O由於我們繼續着重於儘可能降低費用，我們的非利息支出在第三季度減少了180萬美元。我們的全職員工數量從上一季度的840人下降到819人，主要是因爲在自然流失過程中失去的員工沒有補充。




財務狀況						截至2024年9月30日的季度結束 •不包括經紀存款在內，總存款增加了11100萬美元 •未保險存款爲50900萬美元，佔總存款的8% •用於投資的貸款（「LHFI」）減少了4600萬美元 •不良資產佔總資產的比例：0.47%，與2024年6月30日的0.42%相比 •拖欠 (2)：0.69%，與2024年6月30日的0.66%相比 •信貸損失準備金佔貸款及墊款淨額比例爲0.53% •每股賬面價值：$28.55 •每股有形賬面價值：$28.13 (3)

(2) 逾期和非應計貸款總額佔持有投資貸款總額的百分比。

(3) 每股有形賬面價值是一項非GAAP指標。有關該指標與最接近的GAAP指標的調整，請參閱本收益發布中的「非GAAP財務指標」。

「截至季末，我們的存款餘額（不包括經紀存款）增加了11100萬美元，」Mark Mason繼續說道。「我們的非利息存款已經穩定，我們繼續看到來自新業務客戶的存款增長。」

「我們的貸款餘額在第三季度減少了4600萬美元，我們在商業房地產貸款組合中看到較低水平的預付款。我們的貸款發行仍然專注於變量利率貸款產品，具有適當的邊際超過增量融資成本，」Mark Mason補充道。「在第三季度，我們的不應計資產與總資產的比率以及我們的總貸款拖欠率分別保持在0.47%和0.69%的低水平。我們的信用質量保持強勁，我們尚未發現任何可能重大的信用問題在我們的貸款組合中。」

馬克·梅森表示：「受益於較低的利率期貨，我們每股的有形賬面價值由於可供出售證券組合的價值增加而增加。」 “儘管我們在2024年前九個月中遭受的營運損失，但從2023年12月31日的28.11美元增長到2024年9月30日的28.13美元的每股有形賬面價值已經增加了。值得注意的是，由於最近利率降低和時間的推移，截至2024年9月30日，我們估計的每股有形公允價值已增至18.52美元。 (4)

(4) 每股有形公允價值是一項非通用會計準則。有關該指標與最接近的通用會計準則指標的調節，請參閱本收益發布中的"非通用會計財務指標"。

關於homestreet

homestreet公司（納斯達克：HMST）是一家總部位於華盛頓州西雅圖的多元化金融服務公司，爲美國西部和夏威夷的消費者和企業提供服務。該公司主要從事房地產貸款業務，包括抵押銀行業務，商業和消費者銀行業務。其主要子公司是homestreet銀行。關於我們業務的一些信息可以在我們的投資者關係網站上找到，網址爲http://ir.homestreet.com。homestreet銀行是FDIC的成員，是一家提供平等住房貸款的銀行。


聯繫方式：						執行副總裁兼首席財務官
						HomeStreet, 公司。
						John Michel (206) 515-2291
						john.michel@homestreet.com
						http://ir.homestreet.com

HomeStreet公司及其子公司

摘要財務數據


	截至季度末
(以千計，除每股數據和全職等效數據)	2020年9月30日 2024			6月30日, 2024			3月31日 2024			12月31日 2023			2020年9月30日 2023

選擇利潤表數據:
淨利息收入	$	28,619		$	29,701		$	32,151		$	34,989		$	38,912
撥備	—			—			—			445			(1,110)
非利息收入	11,058			13,227			9,454			10,956			10,464
非利息支出	49,166			50,931			52,164			49,511			49,089

稅前收益（虧損）	(9,489)			(8,003)			(10,559)			(4,011)			1,397
	(7,282)			(6,238)			(7,497)			(3,419)			2,295
每股淨利潤（損失）	(0.39)			(0.33)			(0.40)			(0.18)			0.12
核心淨利潤（損失）： (1)
總費用	(5,999)			(4,341)			(5,469)			(2,249)			2,295
每股調整後核心淨利潤（虧損）	(0.32)			(0.23)			(0.29)			(0.12)			0.12

選擇績效比率：
年化平均淨資產收益率	(5.4)		%	(4.8)		%	(5.6)		%	(2.6)		%	1.7		%

年化平均有形淨資產收益率 (1)	(4.2)		%	(3.0)		%	(3.8)		%	(1.3)		%	2.2		%
年化平均資產回報率
	(0.32)		%	(0.27)		%	(0.32)		%	(0.15)		%	0.10		%
核心 (1)	(0.26)		%	(0.19)		%	(0.23)		%	(0.10)		%	0.10		%
效率比率 (1)	118.7		%	111.9		%	118.0		%	105.9		%	98.3		%
淨利息收益率	1.33		%	1.37		%	1.44		%	1.59		%	1.74		%

其他數據:
全職員工當量 ("FTE")	819			840			858			875			901

(1)核心淨利潤（虧損），每股攤薄後核心淨利潤（虧損），平均有形股東權益回報率，核心資產平均回報率和效率比率均爲非依據通用會計準則（GAAP）的財務指標。有關這些指標與最接近可比的GAAP財務指標之間的調和，或者該指標的計算，請參閱本業績中的「非依據通用會計準則財務指標」。

HomeStreet, Inc. and Subsidiaries

Summary Financial Data (continued)


	As of
(in thousands, except share and per share data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

Select Balance Sheet Data:
Loans held for sale	$	38,863		$	29,781		$	21,102		$	19,637		$	33,879
Loans held for investment, net	7,294,603			7,340,309			7,405,052			7,382,404			7,400,501
Allowance for credit losses ("ACL")	38,651			39,741			39,677			40,500			40,000
Investment securities	1,158,035			1,160,595			1,191,108			1,278,268			1,294,634
Total assets	9,201,285			9,266,039			9,455,182			9,392,450			9,458,751
Deposits	6,435,404			6,532,470			6,491,102			6,763,378			6,745,551
Borrowings	1,896,000			1,886,000			2,094,000			1,745,000			1,873,000
Long-term debt	225,039			224,948			224,857			224,766			224,671
Total shareholders' equity	538,315			520,117			527,333			538,387			502,487
Other Data:
Book value per share	$	28.55		$	27.58		$	27.96		$	28.62		$	26.74
Tangible book value per share (1)	$	28.13		$	27.14		$	27.49		$	28.11		$	26.18
Total equity to total assets	5.9		%	5.6		%	5.6		%	5.7		%	5.3		%
Tangible common equity to tangible assets (1)	5.8		%	5.5		%	5.5		%	5.6		%	5.2		%
Shares outstanding at end of period	18,857,565			18,857,565			18,857,566			18,810,055			18,794,030
Loans to deposit ratio (Bank)	113.5		%	112.6		%	114.3		%	109.4		%	110.0		%
Credit Quality:
ACL to total loans (2)	0.53		%	0.55		%	0.54		%	0.55		%	0.55		%
ACL to nonaccrual loans	95.9		%	109.3		%	80.2		%	103.9		%	103.2		%
Nonaccrual loans to total loans	0.55		%	0.49		%	0.66		%	0.53		%	0.52		%
Nonperforming assets to total assets	0.47		%	0.42		%	0.56		%	0.45		%	0.42		%
Nonperforming assets	$	43,320		$	39,374		$	52,584		$	42,643		$	39,749
Regulatory Capital Ratios:
Bank
Tier 1 leverage	8.59		%	8.44		%	8.34		%	8.50		%	8.49		%
Total risk-based capital	13.41		%	13.29		%	13.34		%	13.49		%	13.32		%
Common equity Tier 1 capital	12.75		%	12.62		%	12.67		%	12.79		%	12.64		%
Company
Tier 1 leverage	7.04		%	6.98		%	6.90		%	7.04		%	7.01		%
Total risk-based capital	12.70		%	12.67		%	12.70		%	12.84		%	12.62		%
Common equity Tier 1 capital	9.50		%	9.49		%	9.55		%	9.66		%	9.52		%

(1)Tangible book value per share and tangible common equity to tangible assets are non-GAAP financial measures. For a reconciliation to the nearest comparable GAAP financial measure, see “Non-GAAP Financial Measures” in this earnings release.

(2)This ratio excludes balances insured by the FHA or guaranteed by the VA or SBA.

HomeStreet, Inc. and Subsidiaries

Consolidated Balance Sheets


(in thousands, except share data)	September 30, 2024		December 31, 2023

ASSETS
Cash and cash equivalents	$	205,886	$	215,664

Investment securities	1,158,035		1,278,268
Loans held for sale	38,863		19,637
Loans held for investment ("LHFI") (net of allowance for credit losses of $38,651 and $40,500)	7,294,603		7,382,404
Mortgage servicing rights	97,122		104,236
Premises and equipment, net	48,716		53,582
Other real estate owned	3,000		3,667
Intangible assets	7,766		9,641
Other assets	347,294		325,351
Total assets	$	9,201,285	$	9,392,450
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits	$	6,435,404	$	6,763,378
Borrowings	1,896,000		1,745,000
Long-term debt	225,039		224,766
Accounts payable and other liabilities	106,527		120,919
Total liabilities	8,662,970		8,854,063
Shareholders' equity:
Common stock, no par value; 160,000,000 shares authorized
18,857,565 and 18,810,055 shares issued and outstanding	232,645		229,889
Retained earnings	374,340		395,357
Accumulated other comprehensive income (loss)	(68,670)		(86,859)
Total shareholders' equity	538,315		538,387
Total liabilities and shareholders' equity	$	9,201,285	$	9,392,450

HomeStreet, Inc. and Subsidiaries

Consolidated Income Statements


	Quarter Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share data)	2024		2023		2024		2023
Interest income:
Loans	$	87,161	$	85,899	$	260,740	$	254,250
Investment securities	9,633		12,309		30,507		37,944
Cash, Fed Funds and other	3,043		2,498		12,254		6,270
Total interest income	99,837		100,706		303,501		298,464
Interest expense:
Deposits	44,009		33,840		130,151		98,603
Borrowings	27,209		27,954		82,879		68,097
Total interest expense	71,218		61,794		213,030		166,700
Net interest income	28,619		38,912		90,471		131,764
Provision for credit losses	—		(1,110)		—		(886)
Net interest income after provision for credit losses	28,619		40,022		90,471		132,650
Noninterest income:
Net gain on loan origination and sale activities	2,760		2,372		8,102		7,238
Loan servicing income	3,058		3,092		9,500		9,390
Deposit fees	2,222		2,455		6,672		7,817
Other	3,018		2,545		9,465		6,520
Total noninterest income	11,058		10,464		33,739		30,965
Noninterest expense:
Compensation and benefits	26,760		27,002		82,387		84,031
Information services	7,742		7,579		22,664		22,207
Occupancy	4,974		5,306		15,538		16,834
General, administrative and other	9,690		9,202		31,672		29,432
Goodwill impairment	—		—		—		39,857
Total noninterest expense	49,166		49,089		152,261		192,361
Income (loss) before income taxes	(9,489)		1,397		(28,051)		(28,746)
Income tax (benefit) expense	(2,207)		(898)		(7,034)		(4,657)
Net income (loss)	$	(7,282)	$	2,295	$	(21,017)	$	(24,089)

Net income (loss) per share:
Basic	$	(0.39)	$	0.12	$	(1.11)	$	(1.28)
Diluted	$	(0.39)	$	0.12	$	(1.11)	$	(1.28)
Weighted average shares outstanding:
Basic	18,857,565		18,792,893		18,857,335		18,774,593
Diluted	18,857,565		18,792,893		18,857,335		18,774,593

HomeStreet, Inc. and Subsidiaries

Five Quarter Consolidated Income Statements





	Quarter Ended
(in thousands, except share and per share data)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Interest income:
Loans	$	87,161	$	87,323	$	86,256	$	87,005	$	85,899
Investment securities	9,633		10,160		10,714		11,671		12,309
Cash, Fed Funds and other	3,043		3,640		5,571		2,603		2,498
Total interest income	99,837		101,123		102,541		101,279		100,706
Interest expense:
Deposits	44,009		43,535		42,607		39,317		33,840
Borrowings	27,209		27,887		27,783		26,973		27,954
Total interest expense	71,218		71,422		70,390		66,290		61,794
Net interest income	28,619		29,701		32,151		34,989		38,912
Provision for credit losses	—		—		—		445		(1,110)
Net interest income after provision for credit losses	28,619		29,701		32,151		34,544		40,022
Noninterest income:
Net gain on loan origination and sale activities	2,760		3,036		2,306		2,108		2,372
Loan servicing income	3,058		3,410		3,032		3,258		3,092
Deposit fees	2,222		2,209		2,241		2,331		2,455
Other	3,018		4,572		1,875		3,259		2,545
Total noninterest income	11,058		13,227		9,454		10,956		10,464
Noninterest expense:
Compensation and benefits	26,760		27,616		28,011		27,033		27,002
Information services	7,742		7,580		7,342		7,694		7,579
Occupancy	4,974		5,130		5,434		5,407		5,306
General, administrative and other	9,690		10,605		11,377		9,377		9,202

Total noninterest expense	49,166		50,931		52,164		49,511		49,089
Income (loss) before income taxes	(9,489)		(8,003)		(10,559)		(4,011)		1,397
Income tax (benefit) expense	(2,207)		(1,765)		(3,062)		(592)		(898)
Net income (loss)	$	(7,282)	$	(6,238)	$	(7,497)	$	(3,419)	$	2,295

Net income (loss) per share:
Basic	$	(0.39)	$	(0.33)	$	(0.40)	$	(0.18)	$	0.12
Diluted	$	(0.39)	$	(0.33)	$	(0.40)	$	(0.18)	$	0.12
Weighted average shares outstanding:
Basic	18,857,565		18,857,566		18,856,870		18,807,965		18,792,893
Diluted	18,857,565		18,857,566		18,856,870		18,807,965		18,792,893

HomeStreet, Inc. and Subsidiaries

Average Balances, Yields (Taxable-equivalent basis) and Rates


	Quarter Ended September 30,						Nine Months Ended September 30,
Average Balances:	2024			2023			2024			2023
Investment securities	$	1,155,284		$	1,356,410		$	1,186,061		$	1,417,438
Loans	7,385,970			7,461,220			7,433,680			7,477,454
Total interest-earning assets	8,727,590			9,007,360			8,890,811			9,055,725
Total assets	9,138,291			9,433,648			9,303,598			9,508,701
Deposits: Interest-bearing	5,045,396			5,092,025			5,133,118			5,457,283
Deposits: Noninterest-bearing	1,283,502			1,430,834			1,295,044			1,459,506
Borrowings	1,950,109			2,051,584			2,016,440			1,677,276
Long-term debt	224,994			224,614			224,904			224,525
Total interest-bearing liabilities	7,220,499			7,368,223			7,374,462			7,359,084

Average Yield/Rate:
Investment securities	3.65		%	3.90		%	3.74		%	3.83		%
Loans	4.66		%	4.54		%	4.64		%	4.51		%
Total interest earning assets	4.56		%	4.46		%	4.56		%	4.42		%
Deposits: Interest-bearing	3.47		%	2.63		%	3.38		%	2.41		%
Total deposits	2.76		%	2.06		%	2.70		%	1.90		%
Borrowings	4.85		%	4.81		%	4.81		%	4.69		%
Long-term debt	5.48		%	5.49		%	5.49		%	5.37		%
Total interest-bearing liabilities	3.90		%	3.33		%	3.84		%	3.02		%
Net interest rate spread	0.66		%	1.13		%	0.73		%	1.40		%
Net interest margin	1.33		%	1.74		%	1.38		%	1.96		%


(in thousands, except yield/rate)	Quarter Ended
Average Balances:	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Investment securities	$	1,155,284		$	1,164,144		$	1,239,093		$	1,278,344		$	1,356,410
Loans	7,385,970			7,454,945			7,460,650			7,465,375			7,461,220
Total interest earning assets	8,727,590			8,858,433			9,088,205			8,923,338			9,007,360
Total assets	9,138,291			9,272,131			9,502,189			9,351,866			9,433,648
Deposits: Interest-bearing	5,045,396			5,122,284			5,232,637			5,187,242			5,092,025
Deposits: Noninterest-bearing	1,283,502			1,282,447			1,319,309			1,343,043			1,430,834
Borrowings	1,950,109			2,025,415			2,074,527			1,975,536			2,051,584
Long-term debt	224,994			224,903			224,812			224,722			224,614
Total interest-bearing liabilities	7,220,499			7,372,602			7,531,976			7,387,500			7,368,223

Average Yield/Rate:
Investment securities	3.65		%	3.80		%	3.75		%	3.94		%	3.90		%
Loans	4.66		%	4.66		%	4.60		%	4.60		%	4.54		%
Total interest earning assets	4.56		%	4.59		%	4.54		%	4.52		%	4.46		%
Deposits: Interest-bearing	3.47		%	3.41		%	3.27		%	3.00		%	2.63		%
Total deposits	2.76		%	2.73		%	2.61		%	2.39		%	2.06		%
Borrowings	4.85		%	4.85		%	4.73		%	4.74		%	4.81		%
Long-term debt	5.48		%	5.49		%	5.51		%	5.52		%	5.49		%
Total interest-bearing liabilities	3.90		%	3.87		%	3.74		%	3.55		%	3.33		%
Net interest rate spread	0.66		%	0.72		%	0.80		%	0.98		%	1.13		%
Net interest margin	1.33		%	1.37		%	1.44		%	1.59		%	1.74		%

Results of Operations

Third Quarter of 2024 Compared to the Second Quarter of 2024

Non-core amounts: For the third quarter and second quarter of 2024 non-core items include $1.6 million and $2.4 million of merger related expenses, respectively.

Our net loss and loss before income taxes were $(7.3) million and $(9.5) million, respectively, in the third quarter of 2024, as compared to $(6.2) million and $(8.0) million, respectively, in the second quarter of 2024. The $1.5 million increase in loss before income taxes was primarily due to lower net interest income and lower noninterest income which was partially offset by a decrease in noninterest expense.

The income tax benefit realized resulted in an effective tax rate of 23.3% for the third quarter of 2024 as compared to an effective tax rate of 22.1% in the second quarter of 2024.

Our net interest income in the third quarter of 2024 was $1.1 million lower than the second quarter of 2024 due to a decrease in our net interest margin from 1.37% to 1.33% and a decrease in interest earning assets. The decrease in the net interest margin was due to a 3 basis point decrease in the yield on interest earning assets and a 3 basis point increase in the rates paid on interest-bearing liabilities. Yields on interest-earning assets decreased due to lower yields on investment securities. The increase in the rates paid on our interest-bearing liabilities was due to higher deposit costs due to a greater proportion of higher cost certificates of deposit.

There was no provision for credit losses recognized during either the third or second quarter of 2024. This reflects the stable balance of our loan portfolio, a minimal level of identified credit issues in our loan portfolio and the lack of significant expected credit issues arising in future periods.

Noninterest income in the third quarter of 2024 decreased from the second quarter of 2024 primarily due to more income realized in the second quarter of 2024 from our investments in small business investment companies.

The 3.5% decrease in noninterest expense in the third quarter of 2024, as compared to the second quarter of 2024, reflects the Company's emphasis on reducing operating expenses where possible.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Non-core amounts: For the nine months ended September 30, 2024, non-core items include $6.7 million of merger related expenses. During the nine months ended September 30, 2023, non-core items include a $39.9 million goodwill impairment charge.

Our net income (loss) and income (loss) before income taxes were $(21.0) million and $(28.1) million, respectively, in the nine months ended September 30, 2024, as compared to $(24.1) million and $(28.7) million, respectively, in the nine months ended September 30, 2023. Our core net income (loss) and core income (loss) before income taxes in the nine months ended September 30, 2024, which excludes the impact of merger related expenses and goodwill impairment charges, was $(15.8) million and $(21.4) million, as compared to $10.5 million and $11.1 million, respectively, in the nine months ended September 30, 2023. The $32.5 million decrease in core income before taxes was primarily due to lower net interest income, partially offset by an increase in noninterest income and a decrease in noninterest expense.

The income tax benefit realized in the nine months ended September 30, 2024 resulted in an effective tax rate of 25.1% as compared to an effective tax rate of 16.2% for the nine months ended September 30, 2023. Our

effective tax rate in the nine months ended September 30, 2023 was significantly impacted by the goodwill impairment charge, a portion of which is not deductible for tax purposes.

Net interest income in the nine months ended September 30, 2024 decreased $41.3 million as compared to the nine months ended September 30, 2023 due primarily to a decrease in our net interest margin. Our net interest margin decreased from 1.96% in the nine months ended September 30, 2023 to 1.38% in the nine months ended September 30, 2024 due to a 82 basis point increase in the rates paid on interest-bearing liabilities which was partially offset by a 14 basis point increase in the yield on interest earning assets. Yields on interest-earning assets increased as yields on adjustable-rate loans increased due to increases in the indexes on which their pricing is based. The increase in the rates paid on our interest-bearing liabilities was due to an increase in the proportion of higher cost borrowings and a decrease in the proportion of noninterest-bearing deposits to the total balance of interest-bearing liabilities and higher deposit rates and higher borrowing rates. The increases in the rates paid on deposits were due to increases in market interest rates over the prior year and the migration of noninterest-bearing and lower cost interest-bearing accounts to higher cost certificates of deposit and money market accounts.

There was no provision for credit losses recognized during the nine months ended September 30, 2024 as compared to a $0.9 million recovery in the nine months ended September 30, 2023. These low levels of provisions for credit losses reflect the stable balance of our loan portfolio, a minimal level of identified credit issues in our loan portfolio and the lack of significant expected credit issues arising in future periods.

Noninterest income in the nine months ended September 30, 2024 increased from the nine months ended September 30, 2023 primarily due to higher levels of income realized from our investments in small business investment companies and an increase in single family gain on loan origination and sales activities which were partially offset by lower deposit fees.

The $40.1 million decrease in noninterest expense in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 was primarily due to a $39.9 million goodwill impairment in the nine months ended September 30, 2023, lower compensation and benefit costs and lower occupancy costs, which were partially offset by $6.7 million of merger related expenses recognized in 2024. The decrease in compensation and benefit costs was primarily due to lower staffing levels, which was partially offset by wage increases given in the nine months ended September 30, 2024. FTEs decreased from 910 in the nine months ended September 30, 2023 to 839 in the nine months ended September 30, 2024.

Financial Position

During the nine months ended September 30, 2024, our total assets decreased $191 million due primarily to a $120 million decrease in investment securities as we are not purchasing new investment securities to replace principal paydowns in our portfolio. During the nine months ended September 30, 2024 total liabilities decreased $191 million due to a $328 million decrease in deposits, partially offset by an increase in borrowings. The decrease in deposits was primarily due to a $477 million decrease in brokered certificates of deposit which was partially offset by increases in non-brokered deposits. The $151 million of additional borrowings were used to replace maturing brokered deposits.

Loans Held for Investment


(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

Commercial real estate ("CRE")
Non-owner occupied CRE	$	590,956	$	612,937	$	633,401	$	641,885	$	633,083
Multifamily	3,950,941		3,935,158		3,929,679		3,940,189		3,957,209
Construction/land development	535,601		530,445		575,152		565,916		566,289
Total	5,077,498		5,078,540		5,138,232		5,147,990		5,156,581
Commercial and industrial loans
Owner occupied CRE	365,138		372,452		381,943		391,285		428,253
Commercial business	345,999		376,711		387,464		359,049		385,148
Total	711,137		749,163		769,407		750,334		813,401
Consumer loans
Single family (1)	1,137,981		1,152,004		1,149,940		1,140,279		1,099,644
Home equity and other	406,638		400,343		387,150		384,301		370,875
Total	1,544,619		1,552,347		1,537,090		1,524,580		1,470,519
Total LHFI	7,333,254		7,380,050		7,444,729		7,422,904		7,440,501
Allowance for credit losses ("ACL")	(38,651)		(39,741)		(39,677)		(40,500)		(40,000)
Total LHFI less ACL	$	7,294,603	$	7,340,309	$	7,405,052	$	7,382,404	$	7,400,501

(1)Includes $1.3 million at September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023 and $1.2 million at September 30, 2023 of single family loans that are carried at fair value.

Loan Roll-forward


(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

Loans - beginning balance	$	7,380,050	$	7,444,729	$	7,422,904	$	7,440,501	$	7,436,651
Originations and advances	279,783		282,460		287,568		297,867		329,294
Transfers (to) from loans held for sale	(378)		(520)		(273)		—		466
Payoffs, paydowns and other	(324,651)		(346,533)		(264,876)		(312,265)		(325,312)
Charge-offs and transfers to OREO	(1,550)		(86)		(594)		(3,199)		(598)
Loans - ending balance	$	7,333,254	$	7,380,050	$	7,444,729	$	7,422,904	$	7,440,501

Loan Originations and Advances


(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

CRE
Non-owner occupied CRE	$	9	$	977	$	1,146	$	12,405	$	2,315
Multifamily	48,960		17,495		489		1,482		44,356
Construction/land development	160,220		152,681		157,453		158,755		155,460
Total	209,189		171,153		159,088		172,642		202,131
Commercial and industrial loans
Owner occupied CRE	—		663		949		7,883		2,242
Commercial business	12,966		38,990		61,400		21,115		34,255
Total	12,966		39,653		62,349		28,998		36,497
Consumer loans
Single family (1)	15,960		33,359		31,769		62,167		57,483
Home equity and other	41,668		38,295		34,362		34,060		33,183
Total	57,628		71,654		66,131		96,227		90,666
Total loan originations and advances	$	279,783	$	282,460	$	287,568	$	297,867	$	329,294

(1) Includes loans transferred from construction loans to permanent single family loans upon completion of construction of $12.9 million, $31.6 million, $30.8 million, $57.6 million and $55.1 million for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.

Credit Quality

During the third quarter of 2024, our ratios of nonperforming assets to total assets and total loans delinquent over 30 days, including nonaccrual loans, remained at low levels. As of September 30, 2024, our ratio of nonperforming assets to total assets was 0.47% as compared to 0.42% at June 30, 2024 while our ratio of total loans delinquent over 30 days, including nonaccrual loans, to total loans was 0.69% as compared to 0.66% at June 30, 2024.

Delinquencies


	Past Due and Still Accruing
(in thousands)	30-59 days			60-89 days			90 days or more (1)			Nonaccrual			Total past due and nonaccrual (2)			Current			Total loans

September 30, 2024
Total loans held for investment	$	3,719		$	1,867		$	4,967		$	40,320		$	50,873		$	7,282,381		$	7,333,254
%	0.05		%	0.02		%	0.07		%	0.55		%	0.69		%	99.31		%	100.00		%

June 30, 2024
Total loans held for investment	$	3,824		$	2,691		$	5,459		$	36,374		$	48,348		$	7,331,702		$	7,380,050
%	0.05		%	0.04		%	0.08		%	0.49		%	0.66		%	99.34		%	100.00		%

(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.

(2) Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.0 million and $11.3 million at September 30, 2024 and June 30, 2024, respectively.

Allowance for Credit Losses (roll-forward)


	Quarter Ended
(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

Allowance for credit losses
Beginning balance	$	39,741	$	39,677	$	40,500	$	40,000	$	41,500
Provision for credit losses	104		128		242		223		(990)
Recoveries (charge-offs), net	(1,194)		(64)		(1,065)		277		(510)
Ending balance	$	38,651	$	39,741	$	39,677	$	40,500	$	40,000

Allowance for unfunded commitments:
Beginning balance	$	1,453	$	1,581	$	1,823	$	1,601	$	1,721
Provision for credit losses	(104)		(128)		(242)		222		(120)
Ending balance	$	1,349	$	1,453	$	1,581	$	1,823	$	1,601

Provision for credit losses:
Allowance for credit losses - loans	$	104	$	128	$	242	$	223	$	(990)
Allowance for unfunded commitments	(104)		(128)		(242)		222		(120)
Total	$	—	$	—	$	—	$	445	$	(1,110)

Allocation of Allowance for Credit Losses by Product Type


	September 30, 2024				June 30, 2024				March 31, 2024
(in thousands)	Balance		Rate (1)		Balance		Rate (1)		Balance		Rate (1)

Non-owner occupied CRE	$	1,812	0.31	%	$	1,777	0.29	%	$	2,131	0.34	%
Multifamily	15,760		0.40	%	17,070		0.43	%	18,947		0.48	%
Construction/land development
Multifamily construction	1,389		0.88	%	1,971		1.03	%	1,621		0.84	%
CRE construction	82		0.85	%	35		0.53	%	188		1.02	%
Single family construction	7,187		2.29	%	5,445		2.03	%	5,578		2.00	%
Single family construction to perm	255		0.47	%	300		0.47	%	435		0.51	%
Total CRE	26,485		0.52	%	26,598		0.52	%	28,900		0.56	%
Owner occupied CRE	639		0.18	%	731		0.20	%	836		0.22	%
Commercial business	4,472		1.30	%	5,595		1.49	%	2,646		0.69	%
Total commercial and industrial	5,111		0.72	%	6,326		0.85	%	3,482		0.46	%
Single family	3,804		0.36	%	3,844		0.36	%	4,273		0.40	%
Home equity and other	3,251		0.80	%	2,973		0.74	%	3,022		0.78	%
Total consumer	7,055		0.49	%	6,817		0.47	%	7,295		0.51	%
Total	$	38,651	0.53	%	$	39,741	0.55	%	$	39,677	0.54	%

(1) The ACL rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA

Production Volumes for Sale to the Secondary Market


	Quarter Ended
(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

Loan originations
Single family loans	$	125,964	$	101,057	$	76,528	$	67,330	$	95,917
Commercial and industrial and CRE loans	—		19,593		3,496		7,142		11,863
Loans sold
Single family loans	109,091		98,081		70,379		77,916		101,575
Commercial and industrial and CRE loans (1)	7,602		13,539		8,196		10,619		2,821
Net gain on loan origination and sale activities
Single family loans	2,779		2,718		1,986		1,844		2,267
Commercial and industrial and CRE loans (1)	(19)		318		320		264		105
Total	$	2,760	$	3,036	$	2,306	$	2,108	$	2,372

(1) May include loans originated as held for investment.

Loan Servicing Income


	Quarter Ended
(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

Single family servicing income, net:
Servicing fees and other	$	3,776	$	3,751	$	3,839	$	3,880	$	3,852
Changes - amortization (1)	(1,669)		(1,713)		(1,428)		(1,504)		(1,564)
Net	2,107		2,038		2,411		2,376		2,288
Risk management, single family MSRs:
Changes in fair value due to assumptions (2)	(1,963)		529		618		(1,380)		785
Net gain (loss) from economic hedging (3)	1,418		(509)		(1,110)		1,089		(1,160)
Subtotal	(545)		20		(492)		(291)		(375)
Single family servicing income	1,562		2,058		1,919		2,085		1,913
Commercial loan servicing income:
Servicing fees and other	2,919		2,811		2,515		2,588		2,553
Amortization of capitalized MSRs	(1,423)		(1,459)		(1,402)		(1,415)		(1,374)
Total	1,496		1,352		1,113		1,173		1,179
Total loan servicing income	$	3,058	$	3,410	$	3,032	$	3,258	$	3,092

(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)The interest income from US Treasury notes trading securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.3 million for each of the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023.

Capitalized Mortgage Servicing Rights ("MSRs")


	Quarter Ended
(in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

Single Family MSRs
Beginning balance	$	73,725		$	74,056		$	74,249		$	76,470		$	76,314
Additions and amortization:
Originations	707			853			617			663			935

Changes - amortization (1)	(1,669)			(1,713)			(1,428)			(1,504)			(1,564)
Net additions and amortization	(962)			(860)			(811)			(841)			(629)
Change in fair value due to assumptions (2)	(1,963)			529			618			(1,380)			785
Ending balance	$	70,800		$	73,725		$	74,056		$	74,249		$	76,470
Ratio to related loans serviced for others	1.36		%	1.41		%	1.40		%	1.40		%	1.43		%

Multifamily and SBA MSRs
Beginning balance	$	27,583		$	28,863		$	29,987		$	31,141		32,477
Originations	162			179			278			261			38
Amortization	(1,423)			(1,459)			(1,402)			(1,415)			(1,374)
Ending balance	$	26,322		$	27,583		$	28,863		$	29,987		$	31,141
Ratio to related loans serviced for others	1.42		%	1.47		%	1.52		%	1.58		%	1.64		%

(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.

Deposits


(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023

Deposits by Product:
Noninterest-bearing demand deposits	$	1,253,582	$	1,252,850	$	1,311,559	$	1,306,503	$	1,437,057
Interest-bearing:
Interest-bearing demand deposits	315,711		332,290		330,301		344,748		352,529
Savings	239,060		246,397		256,383		261,508		284,663
Money market	1,445,639		1,502,960		1,536,341		1,622,665		1,723,924
Certificates of deposit:
Brokered deposits	741,051		948,989		921,103		1,218,008		973,314
Other	2,440,361		2,248,984		2,135,415		2,009,946		1,974,064
Total interest-bearing deposits	5,181,822		5,279,620		5,179,543		5,456,875		5,308,494
Total deposits	$	6,435,404	$	6,532,470	$	6,491,102	$	6,763,378	$	6,745,551


Percent of total deposits:
Noninterest-bearing demand deposits	19.5	%	19.2	%	20.2	%	19.3	%	21.3	%
Interest-bearing:
Interest-bearing demand deposits	4.9	%	5.1	%	5.1	%	5.1	%	5.2	%
Savings	3.7	%	3.8	%	3.9	%	3.9	%	4.2	%
Money market	22.5	%	23.0	%	23.7	%	24.0	%	25.6	%
Certificates of deposit
Brokered deposits	11.5	%	14.5	%	14.2	%	18.0	%	14.4	%
Other	37.9	%	34.4	%	32.9	%	29.7	%	29.3	%
Total interest-bearing deposits	80.5	%	80.8	%	79.8	%	80.7	%	78.7	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance.

In this earnings release, we use the following non-GAAP measures: (i) tangible common equity and tangible assets as we believe this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of capital ratios; (ii) core net income (loss) and effective tax rate on core net income (loss) before taxes, which excludes goodwill impairment charges and merger related expenses and the related tax impact as we believe this measure is a better comparison to be used for projecting future results; and (iii) tangible fair value per share as we believe this information provides an estimate of what the current value per share is of the Company’s net assets; (iv) an efficiency ratio which is the ratio of noninterest expense to the sum of net interest income and noninterest income, excluding certain items of income or expense and excluding taxes incurred and payable to the state of Washington as such taxes are not classified as income taxes and we believe including them in noninterest expense impacts the comparability of our results to those companies whose operations are in states where assessed taxes on business are classified as income taxes.

These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures provided by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirements.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other parties in the evaluation of companies in our industry. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP. In the information below, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP measures used in this earnings release, or the computation of the non-GAAP financial measure.

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures or calculations of the non-GAAP measure:


	As of or for the Quarter Ended															Nine Months Ended
(in thousands, except share and per share data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023

Core net income (loss)
Net income (loss)	$	(7,282)		$	(6,238)		$	(7,497)		$	(3,419)		$	2,295		$	(21,017)		$	(24,089)
Adjustments (tax effected)
Merger related expenses	1,283			1,897			2,028			1,170			—			5,208			—
Goodwill impairment	—			—			—			—			—			—			34,622
Total	$	(5,999)		$	(4,341)		$	(5,469)		$	(2,249)		$	2,295		$	(15,809)		$	10,533

Core net income (loss) per fully diluted share
Fully diluted shares	18,857,565			18,857,566			18,856,870			18,807,965			18,792,893			18,857,335			18,774,593

Computed amount	$	(0.32)		$	(0.23)		$	(0.29)		$	(0.12)		$	0.12		$	(0.84)		$	0.56

Return on average tangible equity (annualized)
Average shareholders' equity	$	531,608		$	522,904		$	537,627		$	513,758		$	535,369		$	530,716		$	565,200
Less: Average goodwill and other intangibles	(8,176)			(8,794)			(9,403)			(10,149)			(10,917)			(8,789)			(30,934)
Average tangible equity	$	523,432		$	514,110		$	528,224		$	503,609		$	524,452		$	521,927		$	534,266











Core net income (loss) (per above)	(5,999)			(4,341)			(5,469)			(2,249)			2,295			(15,809)			10,533
Adjustments (tax effected)
Amortization of core deposit intangibles	488			487			488			615			614			1,463			1,687
Tangible income (loss) applicable to shareholders	$	(5,511)		$	(3,854)		$	(4,981)		$	(1,634)		$	2,909		$	(14,346)		$	12,220

Ratio	(4.2)		%	(3.0)		%	(3.8)		%	(1.3)		%	2.2		%	(3.7)		%	3.1		%

Efficiency ratio
Noninterest expense
Total	$	49,166		$	50,931		$	52,164		$	49,511		$	49,089		$	152,261		$	192,361
Adjustments:
Merger related expenses	(1,645)			(2,432)			(2,600)			(1,500)			—			(6,677)			—
Goodwill impairment	—			—			—			—			—			—			(39,857)
State of Washington taxes	(438)			(463)			(452)			659			(572)			(1,353)			(1,653)
Adjusted total	$	47,083		$	48,036		$	49,112		$	48,670		$	48,517		$	144,231		$	150,851

Total revenues
Net interest income	$	28,619		$	29,701		$	32,151		$	34,989		$	38,912		90,471			131,764
Noninterest income	11,058			13,227			9,454			10,956			10,464			33,739			30,965

Adjusted total	$	39,677		$	42,928		$	41,605		$	45,945		$	49,376		$	124,210		$	162,729

Ratio	118.7		%	111.9		%	118.0		%	105.9		%	98.3		%	116.1		%	92.7		%


	As of or for the Quarter Ended															Nine Months Ended
(in thousands, except share and per share data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023

Return on average assets (annualized) - Core
Average Assets	$	9,138,291		$	9,272,131		$	9,502,189		$	9,351,866		$	9,433,648		$	9,303,598		$	9,508,701
Core net income (loss) (per above)	(5,999)			(4,341)			(5,469)			(2,249)			2,295			(15,809)			10,533

Ratio	(0.26)		%	(0.19)		%	(0.23)		%	(0.10)		%	0.10		%	(0.23)		%	0.15		%






Effective tax rate used in computations above (1)	22.0		%	22.0		%	22.0		%	22.0		%	22.0		%	22.0		%	22.0		%

Tangible book value per share
Shareholders' equity	$	538,315		$	520,117		$	527,333		$	538,387		$	502,487		$	538,315		$	502,487
Less: Intangible assets	(7,766)			(8,391)			(9,016)			(9,641)			(10,429)			(7,766)			(10,429)
Tangible shareholders' equity	$	530,549		$	511,726		$	518,317		$	528,746		$	492,058		$	530,549		$	492,058

Common shares outstanding	18,857,565			18,857,565			18,857,566			18,810,055			18,794,030			18,857,565			18,794,030

Computed amount	$	28.13		$	27.14		$	27.49		$	28.11		$	26.18		$	28.13		$	26.18

Tangible common equity to tangible assets
Tangible shareholders' equity (per above)	$	530,549		$	511,726		$	518,317		$	528,746		$	492,058		$	530,549		$	492,058
Tangible assets
Total assets	$	9,201,285		$	9,266,039		$	9,455,182		$	9,392,450		$	9,458,751		$	9,201,285		$	9,458,751
Less: Intangible assets (per above)	(7,766)			(8,391)			(9,016)			(9,641)			(10,429)			(7,766)			(10,429)
Net	$	9,193,519		$	9,257,648		$	9,446,166		$	9,382,809		$	9,448,322		$	9,193,519		$	9,448,322

Ratio	5.8		%	5.5		%	5.5		%	5.6		%	5.2		%	5.8		%	5.2		%

(1) Effective tax rate indicated is used for all adjustments except the goodwill impairment charge as a portion of this charge was not deductible for tax purposes. Instead, a computed effective rate of 13.1% was used for the goodwill impairment charge.


	As of or for the Quarter Ended September 30, 2024
(in thousands, except share and per share data)	Carrying Value		Fair Value		Change in Value

Tangible Fair Value per Share
Tangible shareholder's equity (see above)							$	530,549
Assets:
Investment securities HTM	$	2,318	$	2,296	$	(22)
Loans held for investment	7,293,274		7,019,085		(274,189)
MSRs - multifamily and SBA	26,322		31,970		5,648
Liabilities:
Certificates of deposit	3,181,412		3,180,057		1,355
Borrowings	1,896,000		1,909,471		(13,471)
Long term debt	225,039		184,609		40,430
Total change in value							(240,249)
Deferred taxes at 24.5%							58,861
							$	349,161
Shares outstanding							18,857,565
Computed amount							$	18.52

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Generally, forward-looking statements include the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “goal,” “upcoming,” “outlook,” “guidance” or "project" or the negation thereof, or similar expressions. In addition, all statements in this earnings release (including but not limited to those found in the quotes of our Chief Executive Officer) that address and/or include beliefs, assumptions, estimates, projections and expectations of our future performance and financial condition and trends in product mixes and expected impact on costs, as well as the expected impact of decreases in short term interest rates, are forward-looking statements within the meaning of the Reform Act. Forward-looking statements involve inherent risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond management’s control. Forward-looking statements are based on the Company’s expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this release as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. The Company does not endorse any projections regarding future performance that may be made by third parties. For all forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act.

We caution readers that actual results may differ materially from those expressed in or implied by the Company’s forward-looking statements. Rather, more important factors could affect the Company’s future results, including but not limited to the following: (1) our ability to successfully consummate the pending merger (the "Merger") with FirstSun Capital Bancorp ("FirstSun"), (2) the ability of HomeStreet and FirstSun to obtain required governmental approvals of the Merger, (3) the failure to satisfy the closing conditions in the definitive Agreement and Plan of Merger (the “Merger Agreement”), dated as of January 16, 2024, as amended on April 30, 2024, by and between HomeStreet and FirstSun, or any unexpected delay in closing the Merger, (4) the ability to achieve expected cost savings, synergies and other financial benefits from the Merger within the expected time frames and costs or difficulties relating to integration matters being greater than expected, (5) the diversion of management time from core banking functions due to Merger-related issues; (6) potential difficulty in maintaining relationships with customers, associates or business partners as a result of the announced Merger, (7) changes in the U.S. and global economies, including business disruptions, reductions in employment, inflationary pressures and an increase in business failures, specifically among our customers; (8) changes in the interest rate environment; (9) changes in deposit flows, loan demand or real estate values may adversely affect the business of our primary subsidiary, HomeStreet Bank (the “Bank”), through which substantially all of our operations are carried out; (10) there may be increases in competitive pressure among financial institutions or from non-financial institutions; (11) our ability to attract and retain key members of our senior management team; (12) the timing and occurrence or non-occurrence of events may be subject to circumstances beyond our control; (13) our ability to control operating costs and expenses; (14) our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses; (15) the adequacy of our allowance for credit losses; (16) changes in accounting principles, policies or guidelines may cause our financial condition to be perceived or interpreted differently; (17) legislative or regulatory changes that may adversely affect our business or financial condition, including, without limitation, changes in corporate and/or individual income tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (18) general economic conditions, either nationally or locally in some or all areas in which we conduct business, or conditions in the securities markets or banking industry, may be less favorable than what we currently anticipate; (19) challenges our customers may face in meeting current underwriting standards may adversely impact all or a substantial portion of the value of our rate-lock loan activity we recognize; (20) technological changes may be more difficult or expensive than what we anticipate; (21) a failure in or breach of our operational or security systems or information technology infrastructure, or those of our third-party providers and vendors, including due to cyber-attacks; (22) success or consummation of new business initiatives may be more difficult or expensive than what we anticipate; (23) our ability to grow efficiently both organically and through acquisitions and to manage our growth and integration costs; (24) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; (25) litigation, investigations or other matters before regulatory

agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than what we anticipate; and (26) our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or the Bank, or repurchases of our common stock. A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives cited in this release, other releases, public statements and/or filings with the Securities and Exchange Commission (“SEC”) is also contained in the “Risk Factors” sections of the Company's Forms 10-K and 10-Q and in our Current Reports on Form 8-K we file with the SEC. We strongly recommend readers review those disclosures in conjunction with the discussions herein.

All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company.