HomeStreet Inc., parent company of HomeStreet Bank, announced net third-quarter income of $21.3 million, or $2.90 per diluted share, crushing analysts’ expectations of $1.92 per share and well ahead of last year’s earnings of $2.43 per share.
“Our record earnings in the third quarter were driven primarily by strong mortgage banking activity. We are also very pleased to have again made significant progress in improving our credit quality during the quarter and we believe our asset quality is consistent with that of healthy institutions today,” said Mark Mason, president and CEO, in a statement.
Seattle-based HomeStreet (NASDAQ: HMST) said single-family closed loan production totaled $1.37 billion, increasing $890.2 million, or 186 percent, from the third quarter of 2011. The bank said its net gain on mortgage loan origination and sale activities was $64.4 million, an increase of $48.6 million, or 308 percent, from a year earlier.