HomeStreet, Inc. (NASDAQ:HMST) Q4 2022 Earnings Call Transcript

Mark Mason: The math is pretty straightforward still, right. You take $450 million of deposits and you can pick a rate they may settle in at, right. Maybe it won’t be, sort of 10 basis points to 15 basis points, maybe they settle in over the next couple of quarters, a little higher because of opportunities for a little more, but even if that was a 25 basis points, our current broker deposit levels are maybe 4.25 roughly, right? So. if you consider maybe a 400 basis point benefit on 450 million, I think you can do the math there, right?

Woody Lay: Yes. Okay. And then I wanted to touch on staffing levels and you noted in your opening comments that they declined by about 6% since the beginning of the year. I mean were those reductions made, sort of throughout the year or were they used to the fourth or you can give there?

Mark Mason: Really throughout the year though, about a third and I’m just going to guess at that number without looking it up was in the fourth quarter due to layoffs.

Woody Lay: Yeah. All right. And then last for me, just given the dynamics of the branch purchase. I mean, do you think by year-end 2023, you’re still playing the cross to $10 billion in asset threshold. I mean, I know the overall impact isn’t that large for you guys, but just trying to think of the size of the balance sheet?

Mark Mason: No, we currently don’t think that we will cross 10 billion until €“ well, because it’s all about growth rates. It’s unlikely in 2024 at this rate, right. It could be 2025 sometime. Now that’s subject to a lot of uncertainty about the economy and what our opportunities might be farther out, but if we really slow growth to the extent we are currently anticipating for this year, it’s going to be quite a while.

Woody Lay: Yes. All right. That’s all for me. Thanks guys.

Mark Mason: Thank you. Did you get the number?

John Michel: Yes. . It’s $1.4 billion.

Mark Mason: One second. Just an answer to Matthew Clark’s question. Total broker deposits at 12/31/2022 are approximately $1.4 billion.

Operator: There are no additional questions waiting at this time. So, I’ll pass the conference back to the management team for any closing remarks.

Mark Mason: We appreciate your attendance and your attention today. We look forward to speaking to you next quarter. Thank you for joining us.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.