HomeStreet reports Q3 core EPS (32c), consensus (24c)

Reports Q3 revenue $39.68M, consensus $42.56M. “As a result of lower noninterest income and lower net interest income, our net loss and core net loss were higher in the third quarter than in the second quarter,” said Mark Mason, Chairman of the Board, President, and Chief Executive Officer. “While our net interest margin decreased slightly during the quarter we did see it stabilize during the latter part of the quarter. With the recent decrease in short term rates, we expect our funding costs to decrease in the fourth quarter and beyond and our interest margin to begin to increase. In the third quarter we reduced the rates offered on our promotional certificates of deposit and are offering our highest rates on shorter duration certificates of deposit in anticipation of continued decreases in the near future of short term interest rates. Our noninterest expenses decreased by $1.8 million during the third quarter as we continue to focus on reducing expenses where possible. Our full time equivalent employees declined to 819 from 840 in the prior quarter primarily as a result of not replacing employees lost through attrition.”