BUSINESS WIRE<\/a>)–
\nHomeStreet, Inc. (Nasdaq: HMST) (including its consolidated subsidiaries, the “Company”, “HomeStreet” or “we”), the parent company of HomeStreet Bank, today announced the financial results for the quarter ended March 31, 2023. As we present non-GAAP measures in this release, the reader should refer to the non-GAAP reconciliations set forth below under the section \u201cNon-GAAP Financial Measures.\u201d<\/p>\n\n\u201cOur financial results continue to be adversely impacted by the now historically record velocity and magnitude of increases in short-term interest rates,\u201d said Mark K. Mason, HomeStreet\u2019s Chairman of the Board, President, and Chief Executive Officer. In light of these challenges, we have enhanced our on-balance sheet liquidity, continued to raise new deposits through promotional certificates of deposit and reduced new loan originations. Additionally, we have focused our new loan origination activity primarily on floating rate products such as commercial loans, residential construction loans and home equity loans. In February, we completed the acquisition of three branches in southern California which accounted for $322 million of deposits at the end of March. The new employees at these branches are great additions to our team and we look forward to growing our customer base in these new markets once the conversion process is complete. At March 31, 2023 our on-balance sheet liquidity was 19%, our uninsured deposits were only $1.0 billion, or 14% of total deposits, and $6.0 billion of contingent funding was available.\u201d<\/p>\n
\n\u201cAs expected, our net interest margin decreased in the first quarter due to decreases in lower cost transaction and savings deposits and overall higher funding costs. Due to the highly uncertain interest rate and economic environment going forward, we anticipate these funding cost pressures to continue, and, despite the future repricing of our loans and investment securities, we expect our net interest margin to decline somewhat for the remainder of 2023,\u201d continued Mr. Mason. \u201cTo mitigate the impact of a lower net interest margin we have continued to reduce non-essential expenses while being mindful to preserve and protect our high quality lending lines of business, preserving our ability to grow earnings once the interest rate environment stabilizes and loan pricing and volumes normalize.\u201d<\/p>\n
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