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| 8-K - FORM 8-K - HomeStreet, Inc. | a8-kinvestorpresentationq3.htm |
THIRD QUARTER
2016
NASDAQ:HMST
Important Disclosures
Forward-Looking Statements
This presentation includes forward-looking statements, as that term is defined for purposes of applicable securities laws, about our industry, our future financial performance
and business plans and expectations. These statements are, in essence, attempts to anticipate or forecast future events, and thus subject to many risks and uncertainties.
These forward-looking statements are based on our management's current expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and
similar expressions concerning matters that are not historical facts, as well as a number of assumptions concerning future events. Forward-looking statements in this release
include, among other matters, statements regarding our business plans and strategies (including our expansion strategies) and the expected effects of those initiatives,
general economic trends (particularly those that affect mortgage origination and refinance activity) and growth scenarios and performance targets. Readers should note,
however, that all statements in this presentation other than assertions of historical fact are forward-looking in nature. These statements are subject to risks, uncertainties,
assumptions and other important factors set forth in our SEC filings, including but not limited to our Annual Report on Form 10-K for year ended December 31, 2015, and our
quarterly report on Form 10-Q for the quarter ended September 30, 2016, which we expect to file on or before November 9, 2016. Many of these factors are beyond our
control. Such factors could cause actual results to differ materially from the results discussed or implied in the forward-looking statements. These risks include statements
predicated on our ability to realize the expected value of our acquisition of the branches and certain assets and liabilities of The Bank of Oswego and the combined entity
resulting from that transaction; complete and integrate; continue to expand our banking operations geographically and across market sectors; grow our franchise and
capitalize on market opportunities; manage our growth efforts cost-effectively and attain the desired operational and financial outcomes; manage the losses inherent in our
loan portfolio; make accurate estimates of the value of our non-cash assets and liabilities; the outcome and the effect, if any, of regulatory examinations and actions taken by
our various regulators; maintain electronic and physical security of customer data; respond to an increasingly restrictive and complex regulatory environment; and attract and
retain key personnel. Actual results may fall materially short of our expectations and projections, and we may change our plans or take additional actions that differ in material
ways from our current intentions. Accordingly, we can give no assurance of future performance, and you should not rely unduly on forward-looking statements. All forward-
looking statements are based on information available to the Company as of the date hereof, and we do not undertake to update or revise any forward-looking statements, for
any reason.
Basis of Presentation of Financial Data
Unless noted otherwise in this presentation, all reported financial data is being presented as of the period ending September 30, 2016, and is unaudited, although certain
information related to the year ended December 31, 2015, has been derived from our audited financial statements. All financial data should be read in conjunction with the
notes in our consolidated financial statements.
Non-GAAP Financial Measures
Information on any non-GAAP financial measures such as core measures or tangible measures referenced in this presentation, including a reconciliation of those measures to
GAAP measures, may also be found in the appendix, our SEC filings, and in the earnings release available on our web site.
2
Growing Western U.S. Franchise
• Seattle-based diversified
commercial bank -
company founded in
1921
• Growing commercial &
consumer bank with
concentrations in major
metropolitan areas of the
Western United States
• Leading Northwest
mortgage lender
• 132 offices in the
Western United States
and Hawaii
• Total assets of $6.2
billion
3
Strategy
Build Single Family
Mortgage origination
market share
• Organic growth opportunities
Commercial Lending, Multifamily, Commercial Real Estate and Construction
Increase density of commercial and retail deposits via existing market penetration and de-novo branch expansion
• Growth via acquisition of branches and smaller institutions in-market and in new markets
• Continue opportunistic expansion (market share and footprint) of Single Family mortgage
banking activities
• Reliable source of capital to grow commercial and consumer banking segment
• Target major markets in Western United States
• Grow earning assets while containing operating expenses to improve operating
efficiencies
• Attain targeted operating efficiency ratios by segment
• Target long-term 15%+ ROTE
Expand Commercial &
Consumer Banking
Ongoing expense
management
Optimize use of capital
To grow and diversify earnings by expanding our Commercial & Consumer Banking business
and continue to build Mortgage Banking market share in new and existing markets
4
Successful Diversification
Strategy of growing our Commercial and Consumer Banking segment driving strong growth
and diversification of our loan portfolio and earnings
5
June 2013 quarter represented the beginning of our acquisition strategy post IPO
* 2012 was the peak of the post-recession refinance wave
** 41% of total asset growth has been through acquisitions
2Q13 3Q16
12 Month Core Net Income* 66,496$ 12 Month Core Net Income 69,022$
Commercial Banking % -12% Commercial Banking % 46%
Mortgage Banking % 112% Mortgage Banking % 54%
12 Month Revenue 323,283$ 12 Month Revenue 523,053$
Net interest Income % 20% Net interest Income % 33%
Non-interest Income % 80% Non-interest Income % 67%
53%
9%
27%
2%
4%
5%
Total Assets - $2.8 billion
Loan Portfolio - $1.4 Billion
Single family
Home equity and
other
CRE
Multifamily
Construction
Commercial
business
31%
9%
21%
15%
18%
6%
Total Assets - $6.2 Billion**
Loan Portfolio - $3.8 Billion
Single family
Home equity and
other
CRE
Multifamily
Construction
Commercial
business
Acquisition Strategy
Post Acquisition Scaling
(CA Example)
• Internal rate of return in excess of 15%
• EPS accretive
• Low-to-mid teens return on invested capital
• Less than 10% initial tangible book value per share dilution
• Less than 4 years tangible book value per share dilution earnback
Disciplined Acquisition
Objectives
Acquisition History
We seek to grow and diversify our business and earnings by opportunistically expanding through
acquisitions in attractive markets and then adding our full range of products and services
6
• HomeStreet Commercial Real Estate – Southern California
Originate permanent loans up to $10 million in principal, a portion of which we intend to sell
• SBA Lending group – Offices in Santa Ana, Beverly Hills, and Carlsbad California
• Fill-in Acquisitions – Purchasing two mature branches in Los Angeles County
• De-Novo Branch expansion associated with Kaiser Permanente affinity relationship
Kearney Mesa & Mission Gorge in San Diego, CA and Riverside, CA
(1) Acquisition structured as a purchase of two branch locations and related loans and other assets and an assumption of
certain liabilities including deposits
(2) Deal value weighted average price / TBV
Total Deal Price/
Assets Value TBV
Target State Announce Completion ($M) ($M) (%)
T e B nk of Oswego OR 5/11/2016 8/12/2016 42$ NA NA
(1)
Orange County Business Bank CA 9/28/2015 2/1/2016 200 56$ 117
Simplicity Bancorp, Inc. CA 9/29/2014 3/1/2015 879 133 99
Fortune Bank WA 7/26/2013 11/1/2013 142 27 142
YNB Financial Services Corp. WA 7/26/2013 11/1/2013 125 10 140
Total 1,263$ 226$ 110
(2)
Date
7
Recent Developments
Results of Operations
• Third quarter net income of $27.7 million or $1.11 diluted EPS
• Excluding after tax acquisition-related items, core net income of $28.0 million or $1.12 diluted EPS (1)
• Core return on tangible equity of 20.0%(1)
• Total assets increased to $6.2B at September 30, 2016, from $5.9B at June 30, 2016
• Continued strong credit performance and fundamentals in all of our markets
Strategic Growth Activity in 3Q16
• Completed the acquisition of loans and other assets, deposits, and the two branches from The Bank of
Oswego in the Portland, Oregon area on August 12, 2016
• Opened one de-novo retail deposit branch in Riverside, CA, near a Kaiser Permanente medical center
• Opened three single family home loan centers in Sherman Oaks, CA, Payson, AZ, and Scottsdale, AZ, offset
by the closing of one single family home loan center in San Rafael, CA
• Relocated our existing insurance agency staff to a separate office in Spokane, WA
(1) See appendix for reconciliation of non-GAAP financial measures.
Results of Operations
For the three months ended
(1) Excludes pre-tax acquisition-related expenses and bargain purchase gain. See appendix for reconciliation of non-GAAP financial measures.
(2) See appendix for reconciliation of non-GAAP financial measures.
For the nine months ended
8
($ in thousands)
Sept. 30,
2016
Sept. 30,
2015
Sept. 30,
2016
Sept. 30,
2015
Net interest income $ 46,802 $ 39,634 $ 131,975 $ 108,598
Provision for loan losses 1,250 700 3,750 4,200
Noninterest income 111,745 67,468 285,929 215,828
Noninterest expense 114,399 92,026 326,783 273,843
Net income before taxes 42,898 14,376 87,371 46,383
Income taxes 15,197 4,415 31,514 13,742
Net income $ 27,701 $ 9,961 $ 55,857 $ 32,641
Diluted EPS $ 1.11 $ 0.45 $ 2.27 $ 1.58
Core net income
(1) $ 28,034 $ 9,449 $ 60,234 $ 35,550
Core EPS
(1) $ 1.12 $ 0.42 $ 2.45 $ 1.72
Tangible BV/share (2) $ 22.45 $ 19.95 $ 22.45 $ 19.95
Core ROAA (1) 1.81% 0.78% 1.43% 1.07%
Core ROAE (1) 19.07% 8.21% 14.62% 11.05%
Core ROATE (1) 20.04% 8.59% 15.41% 11.57%
Net Interest Margin 3.34% 3.67% 3.46% 3.63%
Core efficiency ratio (1) 71.8% 86.2% 76.6% 81.4%
Tier 1 Leverage Ratio (Bank) 9.91% 9.69% 9.91% 9.69%
Total Risk-Based Capital (Bank) 14.41% 14.15% 14.41% 14.15%
For the three months ended For the nine months ended
Results of Operations – Quarter Trend
For the three months ended
(1) Includes two months of OCBB’s results of operations.
(2) Excludes pre-tax acquisition-related expenses and bargain purchase gain. See appendix for reconciliation of non-GAAP financial measures.
(3) See appendix for reconciliation of non-GAAP financial measures.
For the nine months ended
9
($ in thousands) Sept. 30, 2016 Jun. 30, 2016 Mar. 31, 2016
(1) Dec. 31, 2015 Sept. 30, 2015
Net interest income $ 46,802 $ 44,482 $ 40,691 $ 39,740 $ 39,634
Provision for loan losses 1,250 1,100 1,400 1,900 700
Noninterest income 111,745 102,476 71,708 65,409 67,468
Noninterest expense 114,399 111,031 101,353 92,725 92,026
Net income before taxes 42,898 34,827 9,646 10,524 14,376
Income taxes 15,197 13,078 3,239 1,846 4,415
Net income $ 27,701 $ 21,749 $ 6,407 $ 8,678 $ 9,961
Diluted EPS $ 1.11 $ 0.87 $ 0.27 $ 0.39 $ 0.45
Core net income
(2) $ 28,034 $ 22,415 $ 9,785 $ 8,787 $ 9,449
Core EPS
(2) $ 1.12 $ 0.90 $ 0.41 $ 0.39 $ 0.42
Tangible BV/share (3) $22.45 $ 21.38 $ 20.37 $ 20.16 $ 19.95
Core ROAA (2) 1.81% 1.59% 0.78% 0.72% 0.78%
Core ROAE (2) 19.07% 16.36% 7.66% 7.47% 8.21%
Core ROATE (2) 20.04% 17.27% 8.08% 7.80% 8.59%
Net Interest Margin 3.34% 3.48% 3.55% 3.61% 3.67%
Core efficiency ratio (2) 71.8% 74.9% 85.6% 87.8% 86.2%
Tier 1 Leverage Ratio (Bank) 9.91% 10.28% 10.17% 9.46% 9.69%
Total Risk-Based Capital (Bank) 14.41% 14.33% 13.93% 13.92% 14.15%
For the three months ended
3.67%
0.03
0.032
0.034
0.036
0.038
0.04
0.042
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Ne
t In
ter
est
Ma
rgi
n (%
)
Ne
t In
ter
est
Inc
om
e (i
n m
illio
ns)
$39.6 $39.7 $40.7
$44.5
$47.7
3.67%
3.61%
3.55%
3.48%
3.34%
2.75%
2.95%
3.15%
3.35%
3.55%
3.75%
3.95%
4.15%
$-
$10.0
$2 .0
$30.0
$40.0
$50.0
$6 .0
3Q15 4Q15 1Q16 2Q16 3Q16
Ne
t In
ter
est
Ma
rgi
n (%
)
Ne
t In
ter
est
Inc
om
e (i
n m
illio
ns)
Net Interest Income & Margin
• 3Q NIM declined 14 bps while net interest income increased $3 million
• NIM decline primarily due to higher cost of interest-bearing funds – mostly resulting from the impact of the first full
quarter of expense from private placement of $65 million senior debt issued in May – as well as due to asset mix
shifts resulting from growth in lower yielding loans held for sale and investment securities as we temporarily invest
the proceeds from the senior debt offering in these products
• Higher net interest income due to 9.7% growth in average interest-earning assets during the quarter that offset
the decline in margin
10
Avg. Yield
3.00%
3.20%
3.40%
3.60%
3.80%
4.00%
4.20%
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
3Q15 4Q15 1Q16 2Q16 3Q16
Av
era
ge
Yi
eld
Av
era
ge
Ba
lan
ce
s (
in
bil
lio
ns
)
Loans Held for Sale
Cash & Cash Equivalents
Investment Securities
Loans Held for Investment
Average Yield
Interest-Earning Assets
• Average total interest-earning assets increased $507 million or 10% in 3Q primarily from $215 million increase in
average investment securities balances and $198 million increase in average loans held for sale balances
• Loans held for investment, net, ending balances increased $65 million or 2% in 3Q
• New commitments of $661 million in mortgage, commercial lending, commercial real estate and residential construction
Avg. Yield 4.03% 4.03% 4.03% 4.00% 3.93%
11
HomeStreet Investment Securities Portfolio Yield
As of 09/30/2016 2016 YTD Total
Return (1)
Yield (2)
Duration (2)
HomeStreet Investment Portfolio 4.47 2.42 3.98
Composition Adjusted Barclays US Aggregate Index (4) 5.00 2.34 4.14
HMST performance data: BondEdge
(1) As of September 30, 2016
(2) Yield and duration Include FTE adjustment. Yields are at current market prices, not book.
(3) Performance Trust proprietary models as of 03/31/16, YOY
(4) Barclays US Aggregate Index Adjusted to reflect HMST portfolio composition
• Investment security portfolio market
value is $998m.
• The investment portfolio has an
average credit rating of Aa1.
• The portfolio total return ranks in the
92nd percentile compared to other
banks (3)
12
3%
9%
37%
21%
30%
Investment portfolio composition as of
09/30/2016
Treasury
Corporate
Municipal
Passthrough
CMO
$4.8 $5.2 $2.3 $3.7 $4.6
$4.8
$13.5
$8.1
$13.2 $14.5
$57.9
$46.6 $61.3
$85.6
$92.6
$67.5
$65.4
$71.7
$102.5
$111.7
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
3Q15 4Q15 1Q16 2Q16 3Q16
No
nin
ter
st I
nc
om
e (i
n m
illio
ns
)
Net gain on mortgage loan
origination and sale activities
Mortgage servicing income
Other noninterest income
Noninterest Income
• Noninterest income increased 9% to $111.7 million in 3Q primarily due to higher net gain on mortgage loan
origination and sale activities
• Net gain on mortgage loan origination and sale activities increased $7.0 million primarily due to 14% higher single
family rate lock and forward sale commitments volume
• Mortgage servicing income increased $1.4 million primarily due to prepayment penalty fees received on payoff of
commercial loans
13
1,600
2,000
2,400
2,800
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
3Q15 4Q15 1Q16 2Q16 3Q16
Non
intere
st E
xpe
nse
(in
mill
ion
s)
Core noninterest expense Merger-related expenses FTE
FTE
Noninterest Expense
• Excluding acquisition-related expenses, salaries and related costs increased by 6% in 3Q, primarily influenced by
increased commissions on higher closed loan volume and 4% increase in full-time equivalent employees
• Core efficiency ratio improved in both operating segments
• Noninterest expense will continue to vary primarily based on headcount and mortgage origination volume
(1) Excludes acquisition-related expenses, which are shown in “acquisition-related expenses” in the table. See appendix for
reconciliation of non-GAAP financial measures.
14
Total noninterest expense $90.7 $91.7 $100.6 $107.9 $115.2
Merger-related expenses $0.4 $0.8 $5.2 $1.0 $0.5
Core noninterest expense (1) $90.2 $90.9 $95.4 $106.9 $114.7
Salaries & related costs (1) $61.0 $60.3 $63.8 $74.5 $79.2
General & administrative (1) $14.0 $14.9 $16.0 $15.7 $17.1
Other noninterest expense (1) $15.2 $15.7 $15.6 $16.6 $18.3
FTE 2,100 2,139 2,264 2,335 2,431
Core efficiency ratio (1) 86.2% 87.8% 85.5% 74.9% 71.8%
Segment Overview
Commercial & Consumer Banking
• Regional Single Family mortgage origination platform
• 100% direct retail origination
• Majority of production sold into secondary market
• Fannie Mae, Freddie Mac, FHA, VA lender since programs’
inceptions
• Portfolio products: jumbo, HELOC and custom home
construction
• Servicing retained on majority of originated loans sold to
secondary markets
• Build Western U.S. major market retail franchise
• Dynamic personnel management in relation to changes in
market conditions
• Fixed/Semi/Variable cost management
• Long-term efficiency ratio target of <80%
• Long-term targeted ROE of >25%
Mortgage Banking
Overview
• Commercial Banking
Commercial lending, including SBA
All CRE property types with multifamily focus
Residential and commercial construction
Commercial deposit, treasury and cash management services
• Consumer Banking
Consumer loan and deposit products
Consumer investment, insurance and private banking products
and services
• Expand market share in primary markets in the West
Follow mortgage expansion
• Diversify and grow loan portfolio 4-6% or more per quarter (1)
• Manage non-interest expense increase to approximately 3% per
quarter
• Manage credit risk by monitoring portfolio and geographic early
warning indicators
• Long-term efficiency ratio target of <65%
• Long-term targeted ROE range of 8-12%
Commercial lending – 8-12%
Commercial real estate – 10-15%
Residential construction – 20-30%
Single Family residential – 10-15%
Strategic Objectives
(1) Actual growth of loan portfolio is subject to, among other things, actual loan production volumes, portfolio runoff, portfolio loan sales, portfolio credit
performance, net interest margin, and market forces. Other portfolio management considerations include liquidity management, capital requirements and
profitability.
15
Commercial & Consumer Banking
16
Commercial & Consumer Banking Segment
• Year over year net income is up, reflecting the success of strategic growth initiatives, both M&A and organic
• Year to date net interest income increased 30% primarily due to 37% growth in average earning asset balances
17
(1) Excludes pre-tax acquisition-related expenses and bargain purchase gain. See appendix for reconciliation of non-GAAP financial
measures.
($ in thousands)
Sept. 30,
2016
Sept. 30,
2015
Sept. 30,
2016
Sept. 30,
2015
Net interest income $ 39,339 $ 31,509 $ 113,378 $ 87,261
Provision for loan losses 1,250 700 3,750 4,200
Noninterest income 9,771 6,884 22,595 20,589
Noninterest expense 32,171 28,110 102,904 93,056
Net income before taxes 15,689 9,583 29,319 10,594
Income taxes 5,557 2,783 10,566 953
Net income $ 10,132 $ 6,800 $ 18,753 $ 9,641
Core net income
(1) $ 10,465 $ 6,288 $ 23,130 $ 12,549
Core ROAA
(1) 0.83% 0.66% 0.66% 0.49%
Core ROAE
(1) 8.57% 7.39% 6.81% 5.64%
Core ROATE
(1) 9.10% 7.87% 7.26% 6.04%
Core efficiency ratio
(1) 64.5% 73.6% 70.7% 76.9%
Net Interest Margin 3.33% 3.62% 3.42% 3.58%
Total average earning assets $4,793,035 $3,514,496 $ 4,436,608 $ 3,244,317
FTE 948 807 948 807
For the three months ended For the nine months ended
Commercial & Consumer Banking Segment – Quarter Trend
• Core net income improved over the prior quarter due to higher noninterest income (+$1.6 million) primarily driven by
prepayment fees and higher net interest income (+$946 thousand) resulting from 7% growth in average earning
assets
18
(1) Includes two months of OCBB’s results of operations.
(3) Excludes pre-tax acquisition-related expenses and bargain purchase gain. See appendix for reconciliation of non-GAAP financial measures.
($ in thousands)
Sept. 30,
2016
Jun. 30,
2016
Mar. 31,
2016
(1)
Dec. 31,
2015
Sept. 30,
2015
Net interest income $ 39,339 $ 38,393 $ 35,646 $ 32,759 $ 31,509
Provision for loan losses 1,250 1,100 1,400 1,900 700
Noninterest income 9,771 8,181 4,643 8,778 6,884
Noninterest expense 32,171 34,103 36,630 29,542 28,110
Net income before taxes 15,689 11,371 2,259 10,095 9,583
Income taxes 5,557 4,292 717 1,718 2,783
Net income $ 10,132 $ 7,079 $ 1,542 $ 8,377 $ 6,800
Core net income
(2) $ 10,465 $ 7,745 $ 4,920 $ 8,486 $ 6,288
Core ROAA
(2) 0.83% 0.66% 0.46% 0.85% 0.66%
Core ROAE
(2) 8.57% 6.87% 4.71% 9.11% 7.39%
Core ROATE
(2) 9.10% 7.34% 5.03% 9.64% 7.87%
Core efficiency ratio
(2) 64.5% 71.0% 78.0% 70.0% 73.6%
Net Interest Margin 3.33% 3.47% 3.54% 3.51% 3.62%
Total average earning assets $4,793,035 $4,476,524 $4,039,023 $3,708,342 $3,514,496
FTE 948 926 903 828 807
For the three months ended
Loan Production/Loan Balance Trend
19
• New loan commitments for 3Q16 increased 44% from a year ago and included $415 million in commercial loans, representing 69% of all new loan commitments
• Loans held for investment balances have grown 18% year to date, 71% of this growth was organic
• 1Q16 balances included $126 million of loans added from the acquisition of OCBB, 3Q16 included $40 million of loans added from the acquisition of loans,
deposits, and branches of The Bank of Oswego
Commitme
n
ts
B
al
an
ce
s
($ in thousands) Sept. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015
Single Family $1,186,476 $1,218,216 $1,231,707 $1,203,180 $1,171,967
Single Family Custom Home Construction $143,492 $133,947 $119,363 $108,228 $81,554
Home Equity and other $338,155 $309,204 $275,405 $256,373 $237,491
Total Consumer Loans $1,668,123 $1,661,367 $1,626,475 $1,567,781 $1,491,012
Commercial Real Estate $810,346 $762,170 $661,932 $600,703 $563,241
Multifamily $562,272 $562,728 $543,887 $426,557 $382,392
Residential Construction $245,327 $221,442 $202,427 $177,335 $153,212
Commercial Real Estate/Multifamily Construction $272,994 $284,052 $308,030 $297,597 $295,105
Commercial Business $237,117 $239,077 $213,084 $154,262 $158,135
Total Commercial Loans $2,128,056 $2,069,469 $1,929,360 $1,656,454 $1,552,085
Total Loans Held for Investment
(before Deferred Fees and Allowance) $3,796,179 $3,730,836 $3,555,835 $3,224,235 $3,043,097
($ in thousands) Sept. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015
Single Family $60,356 $66,194 $74,048 $99,621 $62,702
Single Family Custom Home Construction $54,575 $53,736 $47,519 $73,978 $41,944
Home Equity and other $70,914 $75,452 $55, 69 $54,047 $37,716
Total Consumer Loans $185,8 5 $195,382 $176,836 $227,646 $142,362
C mercial Real Estate/Multifamily $147,1 0 $220,592 $146,563 $136,370 $99,48
Residential Constructio $173 255 $172 285 $105 847 $114 31 $114 25
Commercial Real Estate/Multifamily Construction $68,740 $48,750 $27,420 $77,815 $33,605
Business $26,026 $32,100 $12,582 $18,572 $26,697
Total Commercial Loans $415,151 $473,727 $292,412 $347,288 $274,214
Total $600,996 $669,109 $469,24 $574,934 $416,576
Loan Portfolio
• Loans held for investment increased $66.5 million, or 1.8% during the quarter to $3.8 billion
• We continue to diversify the composition of the portfolio, commercial loans make up 60% of the portfolio at 3Q16
and single family and consumer loans make up 40%
• CRE loans ended 3Q16 at $1.37 billion or 36% of the total LHFI portfolio and 65% of the commercial loan portfolio.
Multifamily is the number one property type in this portfolio
20
Loan Composition
$3.80 billion
CRE by Property Type
$1.37 billion
Other Includes: AK,CO,HI,ID,NV,TX,UT CA-Los Angeles County
•Additional property types are
reviewed on a case by case basis
• Includes acquired loan types
• Examples include: Self Storage &
Hotel
• 5-10 Year Term
• $30MM Loan Amt. Max
• ≥ 1.25 DSCR
•Avg. LTV @ Orig. ~ 62%
• 5-10 Year Term
• $30MM Loan Amt. Max
• ≥ 1.25 DSCR
•Avg. LTV @ Orig. ~ 67%
• 5-10 Year Term
• $30MM Loan Amt. Max
• ≥ 1.20 DSCR
•Avg. LTV @ Orig. ~ 61%
• 5-10 Year Term
• $30MM Loan Amt. Max
• ≥ 1.25 DSCR
•Avg. LTV @ Orig. ~ 61%
CA-Other Oregon WA-Other WA-Puget Sound
Commercial Real Estate Perm Lending Overview
21
HomeStreet lends within the full spectrum of commercial real estate lending types, but is deliberate in achieving diversification among
property types and geographic areas to mitigate concentration risk
Balance: $205M
% of Balances: 15%
% Owner Occupied: 17%
Portfolio LTV ~ 52% (1)
Portfolio Avg. DSCR ~ 1.70x
Avg. Loan Size: $1.5M
Largest Dollar Loan: $19.9M
9/30/16 Balances Outstanding
Loan Characteristics
Commercial Real Estate Property Types
Multifamily Office Industrial/
Warehouse
Retail Other
Balance: $564M
% of Balances: 41%
Portfolio Avg. LTV ~ 56% (1)
Portfolio Avg. DSCR ~ 1.68x
Avg. Loan Size: $1.1M
Largest Dollar Loan: $24.1M
Geographical Distribution (balances)
Balance: $179M
% of Balances: 13%
% Owner Occupied: 51%
Portfolio LTV ~ 49% (1)
Portfolio Avg. DSCR ~ 1.68x
Avg. Loan Size: $1.7M
Largest Dollar Loan: $10.9M
Balance: $305M
% of Balances: 22%
% Owner Occupied: 26%
Portfolio LTV ~ 56% (1)
Portfolio Avg. DSCR ~ 1.61x
Avg. Loan Size: $1.6M
Largest Dollar Loan: $25.8M
Balance: $120M
% of Balances: 9%
% of Owner Occupied: 64%
Portfolio LTV ~ 44% (1)
Portfolio Avg. DSCR ~ 1.83x
Avg. Loan Size: $788K
Largest Dollar Loan: $21.3M
(1) Property values as of origination date
Construction Lending Overview
22
Construction lending is a broad category that includes many different loan types, which are often characterized by different risk profiles.
HomeStreet lends within the full spectrum of construction lending types, but is deliberate in achieving diversification among the types to
mitigate risk. Additionally, recent geographic expansion has provided an opportunity to reduce concentrations in any particular market.
Balance: $177M
Unfunded Commitments: $232M
% of Balances: 27%
% of Unfunded Commitments: 42%
Avg. Loan Size: $251K
Largest Dollar Loan: $9.6M
9/30/16 Balances and Commitments
Loan Characteristics
Construction Lending Types
Custom Home
Construction
Multifamily Commercial Residential
Construction
Land & Lots
•12 Month Term
•Consumer Owner Occupied
•Borrower Underwritten
similar to Single Family
Balance: $143M
Unfunded Commitments: $109M
% of Balances: 22%
% of Unfunded Commitments: 20%
Avg. Loan Size: $447K
Largest Dollar Loan: $1.6M
Geographical Distribution (balances)
Balance: $199M
Unfunded Commitments: $173M
% of Balances: 30%
% of Unfunded Commitments: 32%
Avg. Loan Size: $6.6M
Largest Dollar Loan: $24.9M
Balance: $79M
Unfunded Commitments: $10M
% of Balances: 12%
% of Unfunded Commitments: 2%
Avg. Loan Size: $11.3M
Largest Dollar Loan: $22.2M
Balance: $63M
Unfunded Commitments: $22M
% of Balances: 10%
% of Commitments: 4%
Avg. Loan Size: $554K
Largest Dollar Loan: $3.8M
Seattle Metro Puget Sound Other WA Other Portland Metro OR Other Hawaii California Utah Idaho
•18-36 Month Term
•≤ 80% LTC
•Minimum 15% Cash Equity
•≥ 1.15 DSC
•Portfolio LTV ~ 65%
•18-36 Month Term
•≤ 80% LTC
•Minimum 15% Cash Equity
•≥ 1.25 DSC
•≥ 50% pre-leased office/retail
•Portfolio LTV ~65%
•12-18 Month Term
• LTC: ≤ 95% Presale & Spec
•Leverage, Liquid. & Net Worth
Covenants as appropriate
•Portfolio LTV ~ 70%
•12-24 Month Term
•≤ 50% -80% LTC
• Strong, experienced,
vertically integrated builders
•Portfolio LTV ~ 55%
Credit Quality
23
• Credit Quality continues to reflect excellent loan quality:
• Nonperforming assets increased to 0.52% of total assets
• The increase was primarily due to an increase in single family and commercial nonaccrual loans offset
somewhat by a decrease in OREO
• Delinquencies increased to 1.89% of total loans compared to 1.59% in 2Q16
• Adjusted delinquencies ended the quarter at 0.77%
(1) Nonperforming assets includes nonaccrual loans and OREO, excludes performing TDRs and SBAs
(2) Total delinquencies and total loans - adjusted (net of Ginnie Mae EBO loans (FHA/VA loans) and starting in 4Q15 guaranteed portion of SBA loans
(3) Peer group revised 1Q15. Source: SNL
(4) Not available at time of publishing
(5) While not a loss reserve, purchase discounts are available to absorb credit related losses on loans purchased with discounts
($ in thousands) HMST Peer Mdn
(3)
HMST Peer Mdn
(3)
HMST Peer Mdn
(3)
HMST Peer Mdn
(3)
HMST Peer Mdn
(3)
Nonperforming assets
(1)
$32,361 -- $26,443 -- $23,285 -- $24,699 -- $27,743 --
Nonperforming loans $25,921 -- $15,745 -- $16,012 -- $17,168 -- $19,470 --
OREO $6,440 -- $10,698 -- $7,273 -- $7,531 -- $8,273 --
Nonperforming assets/total assets
(1)
0.52%
(4)
0.45% 0.45% 0.43% 0.49% 0.50% 0.60% 0.56% 0.53%
Nonperforming loans/total loans 0.68%
(4)
0.42% 0.40% 0.45% 0.43% 0.53% 0.39% 0.64% 0.51%
Total delinquencies/total loans 1.89%
(4)
1.59% 0.73% 1.94% 0.74% 2.05% 0.71% 2.40% 0.92%
Total delinquencies/total loans - adjusted
(2)
0.77%
(4)
0.45% 0.73% 0.64% 0.72% 0.65% 0.71% 1.04% 0.92%
ALLL / total loans 0.89%
(4)
0.88% 1.04% 0.88% 1.05% 0.91% 1.05% 0.89% 1.07%
ALLL / Nonperforming loans (NPLs) 131.07%
(4)
207.41% 236.59% 195.51% 224.60% 170.54% 252.66% 138.27% 189.83%
ALLL / total loans, excluding purchased loans 1.05% -- 1.03% -- 1.07% -- 1.10% -- 1.11% --
Purchased Discount & Reserves/Gross Purchased Loans 2.92% -- 3.03% -- 3.01% -- 3.03% -- 3.17% --
Sept. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Sept. 30, 2015
Deposits
24
Total Cost of Deposits
9% 8% 11% 10%
13%
20%
23%
24% 27%
24%
61%
57%
53%
52%
51%
10%
11%
12%
12%
11%
$2,445
$3,232
$3,823
$4,329
$4,504
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
12/31/2014 12/31/2015 3/31/2016 6/30/2016 9/30/2016
Bala
nce
s (in
mil
lion
s)
Noninterest-Bearing Transaction &
Savings Deposits
Interest-Bearing Transaction &
Savings Deposits
Time Deposits
Mortgage Svcg. Escrow Accts. &
Other
Total Cost of Deposits 0.39% 0.44% 0.42% 0.46% 0.50%
• Total deposits of $4.5 billion at September 30, 2016 increased $265 million or 6% from June 30, 2016
• Transaction and savings accounts increased 5% during the quarter while CD balances declined 4% during the
quarter
• 34.6% deposit growth during the quarter in our de-novo branches opened since 2012. Opened 14 branches, or
27% of our total network since 2012. Deposits in our acquired branches increased 11.1% during the quarter
• The previously announced agreement to acquire two retail branches located in Southern California and certain
related deposits from Boston Private Bank and Trust scheduled to close in November 2016
Mortgage Banking
25
Mortgage Banking Segment
• Year-to-date net income increased 61.3% as a result of our investment in growth and improved operating
efficiency
• Average interest rate lock and forward sale commitments increased 22.6% year-over-year and our average
balance of single-family loans serviced for others increased 30.9% resulting in increased gain-on-sale income
and servicing income, respectively
• During the period, we have had a higher proportion of support staff relative to sales staff due to the
implementation of TRID and we increased the number of stand-alone single-family offices by six, which
contributed to growth in non-interest expense
26
($ in thousands)
Sept. 30,
2016
Sept. 30,
2015
Sept. 30,
2016
Sept. 30,
2015
Net interest income $ 7,463 $ 8,125 $ 18,597 $ 21,336
Noninterest income 101,974 60,584 263,334 195,239
Noninterest expense 82,228 63,916 223,880 180,786
Net income before taxes 27,209 4,793 58,051 35,789
Income taxes 9,640 1,632 20,948 12,788
Net income $ 17,569 $ 3,161 $ 37,103 $ 23,001
ROAA 6.04% 1.11% 5.26% 3.06%
ROATE 68.36% 10.28% 51.85% 23.96%
Efficiency Ratio 75.1% 93.0% 79.4% 83.5%
FTE 1,483 1,293 1,483 1,293
For the three months ended For the nine months ended
Mortgage Banking Segment – Quarter Trend
• Net income increased $2.9 million from 2Q, which was primarily driven by $7.7 million higher noninterest
income
• 14% higher rate lock volume was the primary driver of net gain on mortgage loan origination and sale activities
of $88.9 million coming in $7.9 million or 10% above 2Q
• Interest rate lock commitment volume in 3Q of $2.69 billion was 14% higher than in 2Q and HFS closed loan
volume of $2.65 billion was up 17% from the prior quarter
• Mortgage servicing income of $11.8 million declined slightly from 12.0 million in 2Q primarily from higher MSR
value decay
27
($ in thousands)
Sept. 30,
2016
Jun. 30,
2016
Mar. 31,
2016
Dec. 31,
2015
Sept. 30,
2015
Net interest income $ 7,463 $ 6,089 $ 5,045 $ 6,981 $ 8,125
Noninterest income 101,974 94,295 67,065 56,631 60,584
Noninterest expense 82,228 76,928 64,723 63,183 63,916
Net income before taxes 27,209 23,456 7,387 429 4,793
Income taxes 9,640 8,786 2,522 128 1,632
Net income $ 17,569 $ 14,670 $ 4,865 $ 301 $ 3,161
ROAA 6.04% 6.67% 2.50% 0.12% 1.11%
ROATE 68.36% 62.45% 21.74% 1.28% 10.28%
Efficiency Ratio 75.1% 76.6% 89.8% 99.3% 93.0%
FTE 1,483 1,409 1,361 1,311 1,293
For the three months ended
Mortgage Origination
(1) Represents combined value of secondary market gains and originated mortgage servicing rights stated as a
percentage of interest rate lock commitments.
(2) Loan origination and funding fees stated as a percentage of mortgage originations from the retail channel and
excludes loans purchased from WMS.
28
0
50
100
150
200
250
300
350
400
3Q15 4Q15 1Q16 2Q16 3Q16
Single Family Composite Margin
(bps)
secondary gains/rate locks loan fees/closed loans
-
500
1,000
1,500
2,000
2,500
3,000
3Q15 4Q15 1Q16 2Q16 3Q16
Held for Sale Closed Loan Production
($ in millions)
HMST WMS Rate locks
Bps
3Q15 4Q15 1Q16 2Q16 3Q16
Secondary gains/rate locks (1) 275 281 300 312 297
Loan fees/closed loans (2) 36 38 36 35 37
Composite Margin 311 319 336 347 334
3Q15 4Q15 1Q16 2Q16 3Q16
HMST $1,768 $1,530 $1,479 $2,118 $2,451
WMS $16 $119 $94 $144 $197
Closed Loans $1,934 $1,649 $1,573 $2,262 $2,648
Purchase % 75% 70% 62% 69% 64%
Refinance % 25% 30% 38% 31% 36%
Rate locks $1,807 $1,340 $1,804 $2,362 $2,690
Purchase % 70% 67% 59% 65% 53%
Refinance % 30% 33% 41% 35% 47%
Mortgage Servicing
As of September 30, 2016
• Constant Prepayment Rate (CPR) – 21.6% for 3Q 2016
• W.A. servicing fee - 28.7 bps
• MSRs represent 0.82% of ending UPB – 2.87 W.A. servicing fee multiple
• W.A age – 26.8 months
• W.A. expected life – 48.2 months as of 9/30/16
• Composition of government – 26.8%
• Total delinquency - 1.2% (including foreclosures)
• W.A. note rate – 3.99%
29
$14,271
$15,348
$15,981
$17,074
$18,199
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
3Q15 4Q15 1Q16 2Q16 3Q16
Mortgage Servicing Portfolio
($ in millions)
Mortgage Market & Competitive Landscape
30
Mortgage Market
• MBA estimates third quarter mortgage origination nationally to increase 10% over second quarter. HomeStreet’s
originations increased 17% over the prior quarter.
• The most recent Mortgage Bankers Association monthly forecast projects total loan originations to increase 12.8% in
2016 over the past year, an upward revision from its prior quarter forecast of a 6.8% decrease.
• Mortgage rates continue near historic lows, and nationally purchases are expected to increase by 11.4% from 2015 and
comprise 53% of volume in 2016.
• Housing starts for this year are expected to be up 6.7% over 2015 levels.
Competitive Landscape
• Purchases comprised 53% of originations nationally and 51% in the Pacific Northwest in the third quarter. HomeStreet
continues to perform above the national and regional averages, with purchases accounting for 64% of our closed loans
and 53% of our interest rate lock commitments in the quarter.
• Purchase demand continues to remain strong in many of our our markets, however limited inventory continues to be a
significant constraining issue.
• The Pacific Northwest and the major markets in western United States are expected to continue to grow more quickly
than the rest of the country, consistent with the past two and half years.
Earnings Guidance
31
• Currently anticipating mortgage loan lock and forward sale commitments volume of approximately $2.0 billion and
$2.1 billion in the fourth quarter of 2016 and first quarter of 2017, respectively
• Projecting mortgage loan held for sale closing volumes of $2.4 billion and $1.8 billion in the fourth of 2016 and
first quarter of 2017, respectively
• We expect mortgage loan lock and forward sale commitments and mortgage loan held for sale closing volumes to
each total $9.3 billion and $9.4 billion, respectively, for 2017, subject to market interest rates, home prices, and
other economic conditions
• Gain on sale composite margin expected to range between 315 and 325 basis points through the end of 2017
• In our Commercial and Consumer Banking segment, we expect average net loan portfolio growth to approximate
4% to 6% quarterly during 2017
• Reflecting the continued flattening of the yield curve since last quarter, we generally expect our consolidated net
interest margin to trend in the 3.30% to 3.35% level and remain in that range through 2017, absent changes in
market rates and prepayment speeds
• We believe that non-interest expense growth in the 3rd quarter represented a peak for the year. Therefore, we do
not expect our non-interest expense to meaningfully increase during the fourth quarter
• During 2017, we expect our non-interest expenses will grow approximately 2% per quarter on average, reflecting
the continued investment in our growth and infrastructure
The information in this presentation, particularly including but not limited to that presented on this slide, is forward-looking in nature, and you should review Item 1A, “Risk
Factors,” in our most recent Quarterly Report on Form 10-Q for a list of factors that may cause us to deviate from our plans or to fall short of our expectations.
.
Appendix
32
Statements of Financial Condition
For the three months ended For the nine months ended
33
($ in thousands) Sept. 30, 2016 Jun. 30, 2016 Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015
Cash and cash equivalents $ 55,998 $ 45,229 $ 46,356 $ 32,684 $ 37,303
Investment securities 991,325 928,364 687,081 572,164 602,018
Loans held for sale 893,513 772,780 696,692 650,163 882,319
Loans held for investment, net 3,764,178 3,698,959 3,523,551 3,192,720 3,012,943
Mortgage servicing rights 167,501 147,266 148,851 171,255 146,080
Other real estate owned 6,440 10,698 7,273 7,531 8,273
Federal Home Loan Bank stock, at cost 39,783 40,414 40,548 44,342 44,652
Premises and equipment, net 72,951 67,884 67,323 63,738 60,544
Goodwill 19,900 19,846 20,366 11,521 11,945
Other assets 215,012 209,738 179,211 148,377 169,576
Total assets $ 6,226,601 $ 5,941,178 $ 5,417,252 $ 4,894,495 $ 4,975,653
Deposits $ 4,504,560 $ 4,239,155 $ 3,823,027 $ 3,231,953 $ 3,307,693
Federal Home Loan Bank advances 858,923 878,987 883,574 1,018,159 1,025,745
Accounts payable and other liabilities 151,968 138,307 119,662 117,251 119,900
Long-term debt 125,122 125,126 61,857 61,857 61,857
Total liabilities 5,640,573 5,381,575 4,888,120 4,429,220 4,515,195
Preferred stock - - - - -
Common stock 511 511 511 511 511
Additional paid-in capital 276,844 276,303 273,168 222,328 222,047
Retained earnings 300,742 273,041 251,292 244,885 236,207
Accumulated other comprehensive income (loss) 7,931 9,748 4,161 (2,449) 1,693
Total shareholders’ equity 586,028 559,603 529,132 465,275 460,458
Total liabilities and shareholders’ equity $ 6,226,601 $ 5,941,178 $ 5,417,252 $ 4,894,495 $ 4,975,653
Non-GAAP Financial Measures
Tangible Book Value:
34
Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(dollars in thousands, except share data) 2016 2016 2016 2015 2015 2016 2015
Shareholders' equity $586,028 $559,603 $529,132 $465,275 $460,458 $586,028 $460,458
Less: Goodwill and other intangibles (28,573) (28,861) (29,126) (20,266) (20,250) (28,573) (20,250)
Tangible shareholders' equity $557,455 $530,742 $500,006 $445,009 $440,208 $557,455 $440,208
Common shares outstanding 24,833,008 24,821,349 24,550,219 22,076,534 22,061,702 24,833,008 22,061,702
Book value per share $23.60 $22.55 $21.55 $21.08 $20.87 $23.60 $20.87
Impact of goodwill and other intangibles (1.15) (1.17) (1.18) (0.92) (0.92) (1.15) (0.92)
Tangible book value per share $22.45 $21.38 $20.37 $20.16 $19.95 $22.45 $19.95
Average hareholders' equity $588,335 $548,080 $510,883 $470,635 $460,489 $549,242 $429,071
Less: Average goodwill and other intangibles (28,769) (28,946) (26,645) (20,195) (20,596) (28,122) (19,491)
Average tangible shareholders' equity $559,566 $519,134 $484,238 $450,440 $439,893 $521,120 $409,580
Return on average shareholders’ equity 18.83% 15.87% 5.02% 7.38% 8.65% 13.56% 10.14%
Impact of goodwill and other intangibles 0.97% 0.89% 0.27% 0.33% 0.41% 0.73% 0.49%
Return on average tangible shareholders' equity 19.80% 16.76% 5.29% 7.71% 9.06% 14.29% 10.63%
Quarter Ended Nine Months Ended
Non-GAAP Financial Measures
Core Net Income:
35
Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(dollars in thousands) 2016 2016 2016 2015 2015 2016 2015
Net income $27,701 $21,749 $6,407 $8,678 $9,961 $55,857 $32,641
Impact of acquisition-related items (net of tax) 333 666 3,378 109 (512) 4,377 2,909
Net income, excluding acquisition-related items (net of tax) $28,034 $22,415 $9,785 $8,787 $9,449 $60,234 $35,550
Noninterest expense $114,399 $111,031 $101,353 $92,725 $92,026 $326,783 $273,843
Deduct: acquisition-related expenses (512) (1,025) (5,198) (754) (437) (6,735) (15,810)
Noninterest expense, excluding acquisition-related expenses $113,887 $110,006 $96,155 $91,971 $91,589 $320,048 $258,033
Diluted earnings per common share $1.11 $0.87 $0.27 $0.39 $0.45 $2.27 $1.58
Impact of acquisition-related items (net of tax) 0.01 0.03 0.14 - (0.03) 0.18 0.14
Diluted earnings per common share, excluding acquisition-
related items (net of tax) $1.12 $0.90 $0.41 $0.39 $0.42 $2.45 $1.72
Return on average assets 1.79% 1.54% 0.51% 0.71% 0.83% 1.33% 0.98%
Impact of acquisition-related items (net of tax) 0.02% 0.05% 0.27% 0.01% (0.05)% 0.10% 0.09%
Return on average assets, excluding acquisition-related
items (net of tax)
1.81% 1.59% 0.78% 0.72% 0.78% 1.43% 1.07%
Return on average shareholders' equity 18.83% 15.87% 5.02% 7.38% 8.65% 13.56% 10.14%
Impact of acquisition-related items (net of tax) 0.24% 0.49% 2.64% 0.09% (0.44)% 1.06% 0.91%
Return on average shareholders' equity, excluding
acquisition-related items (net of tax)
19.07% 16.36% 7.66% 7.47% 8.21% 14.62% 11.05%
Return on average tangible shareholders' equity 19.80% 16.76% 5.29% 7.71% 9.06% 14.29% 10.63%
Impact of acquisition-related items (net of tax) 0.24% 0.51% 2.79% 0.09% (0.47)% 1.12% 0.94%
Return on average tangible shareholders' equity, excluding
acquisition-related items (net of tax)
20.04% 17.27% 8.08% 7.80% 8.59% 15.41% 11.57%
Efficiency ratio 72.15% 75.55% 90.17% 88.18% 85.92% 78.20% 84.41%
Impact of acquisition-related items (net of tax) (0.32)% (0.69)% (4.62)% (0.39)% 0.24% (1.62)% (3.03)%
Efficiency ratio, excluding acquisition-related items (net of
tax)
71.83% 74.86% 85.55% 87.79% 86.16% 76.58% 81.38%
Nine Months EndedQuarter Ended
Non-GAAP Financial Measures
Core Net Income – Commercial & Consumer Banking:
36
Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
(dollars in thousands) 2016 2016 2016 2015 2015 2016 2015
Commercial and Consumer Banking Segment:
Net income $10,132 $7,079 $1,542 $8,377 $6,800 $18,753 $9,640
Impact of acquisition-related items (net of tax) 333 666 3,378 109 (512) 4,377 2,909
Net income, excluding acquisition-related items (net of tax) $10,465 $7,745 $4,920 $8,486 $6,288 $23,130 $12,549
ROAA 0.81% 0.60% 0.15% 0.84% 0.71% 0.54% 0.38%
Impact of acquisition-related items (net of tax) 0.03% 0.06% 0.32% 0.01% (0.05)% 0.13% 0.11%
ROAA, excluding acquisition-related items (net of tax) 0.83% 0.66% 0.46% 0.85% 0.66% 0.66% 0.49%
ROAE 8.29% 6.28% 1.47% 8.99% 7.99% 5.52% 4.33%
Impact of acquisition-related items (net of tax) 0.27% 0.59% 3.23% 0.12% (0.60)% 1.29% 1.31%
ROAE, excluding acquisition-related items (net of tax) 8.57% 6.87% 4.71% 9.11% 7.39% 6.81% 5.64%
ROATE 8.81% 6.71% 1.58% 9.51% 8.51% 5.89% 4.64%
Impact of acquisition-related items (net of tax) 0.29% 0.63% 3.45% 0.12% (0.64)% 1.37% 1.40%
ROATE, excluding acquisition-related items (net of tax) 9.10% 7.34% 5.03% 9.64% 7.87% 7.26% 6.04%
Efficiency ratio 65.51% 73.22% 90.92% 71.12% 73.22% 75.68% 86.28%
Impact of acquisition-related items (net of tax) (1.04)% (2.20)% (12.90)% (1.17)% 0.38% (4.95)% (9.42)%
Efficiency ratio, excluding acquisition-related items (net of
tax)
64.47% 71.02% 78.02% 69.95% 73.60% 70.73% 76.86%
Nine Months EndedQuarter Ended