Boston, MA 07/29/2014 (wallstreetpr) – HomeStreet Inc (NASDAQ:HMST) presented its second quarterly data on Monday, where it reported a substantial growth in its net income over the last quarter. As per the released reports, the net income of the company grew from $2.3 million, or 15 cents per share in the first quarter to $9.4 million or 63 cents in the reported quarter. The company’s net income stood at $12.1 million or 82 cents in the previous year’s same quarter.
Mortgage Segment Coming Back To Profit
Alongside presenting figures relates to the business, the company’s CEO Mark K. Mason said that the mortgage origination segment has swung back to profitability. He added that the company’s long-term strategy to boost retail mortgage banking franchise has helped it to speed up the closed loan production growth at the rate of two to three times higher than the industry. Moreover, increased loan volume together with efforts to boost production efficiency has helped it to reduce cost per unit to produce loans during the quarter.
Target Growth
On the basis of these developments, Mason said that he believes that the company is on track to match or surpass the originations volume of last year, even as there are signs of softening in the present regional and national markets. The company maintains to be a top lender with respect to purchase mortgage in Puget Sound and Pacific Northwest region. Also, the company retains 20% share in California’s mortgage origination’ of closed loan volume. Speaking ahead, Mason said that their consumer as well as commercial banking business is growing reflecting a robust loan portfolio growth and loan production. The company has set target growth of 5% and more per quarter for its interest earnings assets. HomeStreet Inc (NASDAQ:HMST) recently opened a retail deposit branch and plans to add one more in Seattle, its core market.
Mason concluded the call stating that during the quarter witnessed successful closure of two transactions. One pertains to sale of $211 million of mortgages in a bid to reduce mortgage exposure and secondly sale of a part of the company’s mortgage servicing rights in an attractive deal.
