Residential loan originations were off at HomeStreet Inc., and the decline is likely to accelerate this quarter. But the company grew its servicing portfolio, increased its mortgage staffing and announced two upcoming acquisitions.
Third-quarter earnings data indicate that single-family mortgage production was $1.187 billion.
Business fell from the three months ended June 30, when $1.307 billion was originated.
In the same period last year, HomeStreet closed $1.368 billion.
So far during 2013, mortgage production totaled $3.687 billion.
“HomeStreet maintained its ranking as the number two originator by volume of purchase mortgages in the Pacific Northwest, based on the combined results of HomeStreet originations and loans originated through an affiliated business arrangement known as Windermere Mortgage Services Series LLC,” the report said. “HomeStreet has held the number one or number two position for originator by volume of purchases mortgages in the Pacific Northwest for all three quarters of 2013.”
Interest rate lock commitments plummeted to $0.786 billion from $1.423 billion.
The Seattle-based firm said it serviced $11.286 billion in residential loans for others.
The servicing portfolio was up from $10.405 billion at the end of the second quarter and $8.110 billion as of Sept. 30, 2012.
Residential assets crept up to $0.949 billion from $0.905 billion as of June 30. A year prior, home loans on the balance sheet totaled $0.744 billion.
The Sept. 30, 2013, total included $0.819 billion in single-family loans and $0.130 billion in home-equity loans..
HomeStreet reported $0.011 billion in third quarter multifamily originations, down from the prior period’s $0.015 billion and the year-earlier period’s $0.020 billion.
Multifamily loans serviced for third parties finished last month at $0.723 billion, a little more than $0.720 billion at the end of June but off from $0.761 billion at the same point in 2012.
Commercial real estate holdings grew to $0.400 billion from $0.382 billion and were $0.361 billion a year earlier.
Multifamily holdings jumped to $0.042 billion from $0.026 billion and were also higher than $0.037 billion as of the third-quarter 2012.
Construction-and-development assets rose to $0.079 billion from $0.061 billion three months earlier and $0.078 billion 12 months earlier.
The mortgage banking segment swung to a $3 million loss before income taxes from a $17 million profit in the second quarter. Income was $38 million in the same period last year.
Company-wide income prior to taxes sank to $2 million from the second quarter’s $18 million and the third-quarter 2012’s $34 million.
Mortgage production staffing increased to 922 employees in the third quarter from 833 in the prior period and 621 in the same period during 2012.
Headcount at the holding company level increased to 1,426 from 1,309 and was way up from just 998 employees as of Sept. 30, 2012.
HomeStreet disclosed that it has reached separate agreements to acquire Fortune Bank and Yakima National Bank. Both deals, which have been approved by the target companies’ shareholders and by HomeStreet’s regulators, are expected to closed next month.
HomeStreet is additionally acquiring two branches from AmericanWest Bank.
