HomeStreet | research notes

HomeStreet: A Leading Residential Mortgage Lender

HomeStreet Bank is an American financial services company headquartered in Seattle, Washington. It is a subsidiary of HomeStreet, Inc. and operates as a savings bank regulated by the Office of the Comptroller of the Currency (OCC). HomeStreet is a leading provider of residential mortgage loans in the United States.

History

HomeStreet was founded in 1921 as the Workers Trust and Savings Bank. It changed its name to HomeStreet Bank in 1990. In 2009, HomeStreet acquired the assets of Washington Mutual Bank. This acquisition made HomeStreet the largest bank headquartered in the Pacific Northwest.

Products and Services

HomeStreet offers a wide range of products and services, including:

• Mortgage loans: HomeStreet offers a variety of mortgage loan products, including fixed-rate mortgages, adjustable-rate mortgages, and jumbo loans.
• Home equity loans and lines of credit: HomeStreet offers home equity loans and lines of credit to help homeowners access the equity in their homes.
• Consumer loans: HomeStreet offers personal loans, auto loans, and credit cards.
• Deposit accounts: HomeStreet offers a variety of deposit accounts, including checking accounts, savings accounts, and money market accounts.
• Wealth management: HomeStreet offers wealth management services through its subsidiary, HomeStreet Wealth Management.

Community Involvement

HomeStreet is committed to giving back to the communities it serves. The company supports a variety of charitable organizations, including those that focus on affordable housing, financial literacy, and community development.

Financial Strength

HomeStreet is a well-capitalized bank with a strong financial track record. The company has a Tier 1 capital ratio of 11.3%, which is well above the regulatory minimum. HomeStreet is also rated investment grade by all three major credit rating agencies.

Conclusion

HomeStreet is a leading residential mortgage lender with a strong commitment to its customers and communities. The company offers a wide range of products and services, and it is well-capitalized and financially sound. HomeStreet is a trusted partner for homeowners and homebuyers alike.

HomeStreet's Business Model

HomeStreet, Inc. is a financial services holding company focused on providing residential lending, commercial and consumer banking, wealth and investment management services, and insurance. Its business model revolves around the following key segments:

• Residential Lending: Origination and servicing of residential mortgage loans, primarily to owner-occupiers and real estate investors.
• Commercial Banking: Providing an array of banking products and services to businesses, including commercial loans, deposit accounts, and treasury management solutions.
• Consumer Banking: Offering checking and savings accounts, loans, and other banking services to individuals.
• Wealth and Investment Management: Providing comprehensive financial planning, investment advisory services, and investment products to high-net-worth individuals, families, and institutions.
• Insurance: Distribution of property and casualty insurance products, primarily through partnerships with independent insurance agencies.

Advantages over Competitors

HomeStreet differentiates itself from competitors in several ways:

• Local Expertise and Community Focus: HomeStreet has a strong local presence with branches and offices throughout the Western United States. This allows it to foster deep relationships with customers and tailor its offerings to local market needs.
• Commitment to Customer Service: HomeStreet prioritizes customer satisfaction and strives to provide exceptional service throughout the relationship lifecycle.
• Diversified Revenue Streams: The company's diversified business segments allow it to generate revenue from multiple sources and mitigate risks.
• Innovative Technology: HomeStreet invests in technology to streamline its operations, improve customer service, and enhance decision-making.
• Strong Regulatory Compliance: HomeStreet maintains a robust compliance framework to ensure adherence to regulations and protect customers.
• Experienced Leadership Team: The company is led by a team of seasoned executives with deep industry knowledge and a proven track record of success.
• Financial Strength: HomeStreet has a strong financial position, with ample liquidity and capital to support its growth initiatives.
• Customer-centric Culture: The company emphasizes customer-centricity at all levels, fostering a culture of empathy and responsiveness.
• Commitment to Sustainability: HomeStreet incorporates sustainability principles into its operations and supports initiatives that promote environmental and social responsibility.

HomeStreet, Inc.

Company Profile

• HomeStreet is a publicly traded company headquartered in Seattle, Washington.
• It is a diversified financial services company with over $23 billion in assets.
• The company offers a range of banking, lending, wealth management, and insurance products.

Business Overview

HomeStreet's business operations are divided into three primary segments:

• Consumer Banking: Provides deposit and lending products to individuals and families.
• Commercial Banking: Offers a full suite of banking and lending solutions to businesses of all sizes.
• Wealth Management: Provides comprehensive wealth management services to high-net-worth individuals and families.

Financial Performance

• HomeStreet has a strong track record of financial performance.
• In 2022, the company reported net income of $195 million, up 18% from the previous year.
• Total assets grew by 13% to $23.4 billion.
• Return on average tangible common equity (ROATCE) was 12.8%, exceeding the company's target of 10%.

Outlook

HomeStreet's outlook for the future is positive. The company expects to continue to grow its business through organic expansion and acquisitions.

• Growth Strategies:
  • Increase market share in existing markets.
  • Expand into new markets.
  • Acquire complementary businesses.
• Financial Goals:
  • Maintain ROATCE above 10%.
  • Increase dividend payments to shareholders.
• Key Opportunities:
  • Growing demand for financial services in the Western United States.
  • Low interest rate environment supporting lending and borrowing.
  • Acquisition opportunities in fragmented markets.

Competitive Landscape

HomeStreet competes with a range of regional and national financial institutions. Key competitors include:

• Wells Fargo
• U.S. Bank
• Bank of America
• JPMorgan Chase

Leadership

• CEO: Mark K. Mason
• CFO: Scott C. Strong
• President of Consumer Banking: Mark E. Ruhdorfer
• President of Commercial Banking: Shailesh J. Mehta
• President of Wealth Management: David S. Spaulding

Key Metrics

• Assets under Management: $4.3 billion
• Loans Held for Investment: $15.4 billion
• Deposits: $14.9 billion
• Market Capitalization: $1.6 billion

Recent News and Developments

• In January 2023, HomeStreet completed the acquisition of Summit Bank, expanding its operations into Arizona.
• In August 2022, the company raised $150 million in a common stock offering to fund growth initiatives.
• HomeStreet regularly pays quarterly dividends to shareholders. The current dividend yield is approximately 4%.

Similar Companies to HomeStreet that Customers May Also Like:

1. Citizens Bank (https://www.citizensbank.com/)

• Review: Offers a wide range of banking products and services, including mortgages, home equity loans, and personal loans. Customers appreciate the bank's strong customer service and convenient online banking platform.

2. First Republic Bank (https://www.firstrepublic.com/)

• Review: Known for its personalized banking services and competitive mortgage rates. Customers value the bank's focus on client relationships and its commitment to providing tailored financial solutions.

3. KeyBank (https://www.key.com/)

• Review: Offers a comprehensive suite of financial services, including mortgages, home equity lines of credit, and wealth management. Customers appreciate the bank's nationwide reach and its commitment to community involvement.

4. Pacific Western Bank (https://www.pacwest.com/)

• Review: Specializes in mortgage financing and offers competitive rates. Customers value the bank's quick loan approvals and its dedicated team of mortgage professionals.

5. Radius Bank (https://www.radiusbank.com/)

• Review: An online bank that offers high-yield savings accounts and home loans. Customers appreciate the bank's low fees, mobile-friendly banking app, and commitment to sustainability.

6. SoFi (https://www.sofi.com/)

• Review: An online lender that offers student loans, personal loans, and mortgages. Customers value SoFi's competitive rates, convenient application process, and fast funding times.

7. Umpqua Bank (https://www.umpquabank.com/)

• Review: Provides a range of banking products and services, including mortgages, home equity loans, and wealth management. Customers appreciate the bank's community focus and its personalized approach to banking.

8. Zions Bank (https://www.zionsbank.com/)

• Review: Offers a full range of financial services, including mortgages, home equity loans, and investment services. Customers value the bank's solid track record, its commitment to customer service, and its extensive branch network in the Western United States.

History of HomeStreet, Inc.

1989:

• Founded as Commerce Mortgage Company in Seattle, Washington, by Ron Tidemann and Dave Schneider.

1996:

• Went public on the Nasdaq Stock Market.

1999:

• Changed its name to HomeStreet Bank.

2000s:

• Expanded through acquisitions and organic growth, establishing a presence in Western Washington, Oregon, and Hawaii.

2007-2009:

• Faced challenges during the financial crisis due to mortgage lending exposure.

2010:

• Acquired Bank of Hawaii and became the first bank holding company to operate in both Washington and Hawaii.

2012:

• Changed its name to HomeStreet, Inc., to reflect its broader range of financial products and services.

2014:

• Acquired Inland Mortgage Capital Corporation, expanding its mortgage banking business.

2016:

• Acquired Capital Pacific Bancorp, increasing its presence in Southern California.

2018:

• Announced a merger with The Bancorp, Inc., but the deal was later terminated.

2019:

• Acquired Gateway Community & Banking, expanding into Arizona.

2020:

• Navigated the COVID-19 pandemic by providing financial assistance to customers and employees.

Present:

• HomeStreet continues to be a leading financial services provider in the Western United States, offering a comprehensive range of banking, lending, investment, and insurance solutions.

2020

• January: HomeStreet acquires Capital Pacific Bancorp, expanding its presence in California.
• April: The company launches a $100 million loan program to support small businesses impacted by COVID-19.
• December: HomeStreet reports strong financial performance, with record net income and net interest income.

2021

• January: The company announces the acquisition of Gateway Mortgage Group, a leading non-bank mortgage lender.
• May: HomeStreet completes the acquisition of Gateway Mortgage Group, creating one of the largest mortgage lenders in the United States.
• October: The company reports another strong financial quarter, driven by higher loan volumes and strong credit quality.

2022

• January: HomeStreet announces a new partnership with Amazon to offer mortgage services to Amazon customers.
• March: The company acquires certain assets from CIT Bank, expanding its commercial banking operations.
• April: HomeStreet reports a record first quarter, with strong growth in both retail and mortgage banking.
• May: The company acquires Pinnacle Bank, a community bank in the Pacific Northwest.
• June: HomeStreet completes the acquisition of Pinnacle Bank, further solidifying its position in the region.
• July: The company announces a new partnership with SoFi to offer financial planning and home renovation services to SoFi customers.

Recent Timelines

• August 2022: HomeStreet reports a strong second quarter, with continued growth in net interest income and mortgage banking revenue.
• September 2022: The company launches a new digital mortgage platform, offering a streamlined and convenient experience for borrowers.
• October 2022: HomeStreet announces a partnership with PointCentral to provide smart home monitoring and control services to its customers.
• November 2022: The company reports a strong third quarter, with continued momentum in its retail and mortgage banking businesses.
• December 2022: HomeStreet announces plans to acquire American Pacific Bancorp, further expanding its presence in the Pacific Northwest.

Exceptional Home Financing Experience with HomeStreet

I recently had the pleasure of working with HomeStreet for my mortgage needs, and I couldn't be happier with the experience. From start to finish, their team went above and beyond to ensure a seamless and stress-free process.

Personalized Service:

From the initial consultation, I felt like I was dealing with a trusted advisor rather than just a lender. My loan officer, Maria, took the time to understand my financial situation and goals, and tailored the loan options accordingly.

Competitive Rates and Flexible Terms:

HomeStreet offered some of the most competitive rates in the market. They also provided flexible term options, allowing me to choose a loan that fit my budget and financial timeline.

Efficient Processing:

The entire loan application and approval process was handled efficiently and with minimal paperwork. Their online portal made it convenient to upload necessary documents and track the progress of my application.

Dedicated Support:

Throughout the process, I had access to a dedicated team that was always available to answer my questions and provide guidance. Maria and her colleagues were incredibly responsive and made sure I was informed every step of the way.

Smooth Closing:

The closing process was a breeze thanks to the well-prepared team at HomeStreet. The documents were accurate, and the closing agent explained everything thoroughly, ensuring I understood every step.

Overall, I highly recommend HomeStreet to anyone looking for a home loan. Their personalized service, competitive rates, efficient processing, and dedicated support make them an exceptional choice. I am thrilled with my new home and grateful for the exceptional experience I had with HomeStreet.

Discover Your Dream Home with HomeStreet: Explore Our Comprehensive Website for All Your Real Estate Needs

Are you embarking on a journey to find your perfect home? Look no further than HomeStreet's user-friendly website, where you'll find a wealth of resources to guide you through every step of your homeownership experience.

Seamless Home Search

Navigating the housing market can be overwhelming, but HomeStreet makes it a breeze. Our advanced search filters allow you to narrow down your search by location, price, size, and more. Browse through our extensive listings and find homes that meet your specific criteria. Each listing includes detailed descriptions, high-quality photos, and virtual tours to give you a comprehensive overview of potential properties.

Expert Guidance and Support

Our team of experienced professionals is here to assist you every step of the way. From finding the right home to closing on your dream property, HomeStreet provides personalized guidance and support throughout the process. Connect with our agents for in-depth market insights, neighborhood information, and tailored recommendations.

Innovative Technology

HomeStreet leverages cutting-edge technology to enhance your home search experience. Our interactive map feature allows you to explore different neighborhoods and get an in-depth look at nearby amenities, schools, and transportation options. The "My Favorites" feature helps you keep track of the homes you're interested in, while the "Saved Searches" functionality enables you to stay up-to-date on new listings that meet your criteria.

Financial Solutions

Finding the right financing is crucial when purchasing a home. HomeStreet offers a wide range of mortgage products, including conventional, FHA, VA, and jumbo loans. Our experienced mortgage team will work with you to find the loan that best fits your financial situation and goals.

Convenient Tools and Resources

In addition to our comprehensive home search and mortgage information, HomeStreet's website provides a wealth of valuable tools and resources. Our mortgage calculator helps you estimate your monthly payments, while our home value estimator gives you an idea of what your home is worth. You'll also find informative articles, market insights, and helpful tips to empower you throughout your homeownership journey.

Exceptional Customer Service

At HomeStreet, we prioritize providing our customers with an exceptional experience. Our friendly and knowledgeable team is available to answer all your questions and guide you through the homebuying process. Whether you're a first-time homebuyer or an experienced investor, we'll work tirelessly to make your dream of homeownership a reality.

Visit our website today and discover everything HomeStreet has to offer. With our advanced search tools, expert guidance, innovative technology, and exceptional customer service, we're your trusted partner in finding your dream home: https://homestreetbank.com/

Main Suppliers of HomeStreet

1. Freddie Mac

• Website: https://www.freddiemac.com/
• Freddie Mac is a government-sponsored enterprise (GSE) that provides financing for mortgages. HomeStreet is a Freddie Mac seller/servicer, which means that it originates and services mortgages backed by Freddie Mac.

2. Fannie Mae

• Website: https://www.fanniemae.com/
• Fannie Mae is another GSE that provides financing for mortgages. HomeStreet is also a Fannie Mae seller/servicer.

3. Wells Fargo

• Website: https://www.wellsfargo.com/
• Wells Fargo is a large bank that provides a variety of financial services, including mortgage banking. HomeStreet has a long-standing relationship with Wells Fargo and uses its services for a variety of purposes, including loan origination, servicing, and capital markets execution.

4. Black Knight

• Website: https://www.blackknightinc.com/
• Black Knight is a leading provider of software and data solutions for the mortgage and real estate industries. HomeStreet uses Black Knight's solutions for a variety of purposes, including loan origination, servicing, and risk management.

5. CoreLogic

• Website: https://www.corelogic.com/
• CoreLogic is a leading provider of data and analytics for the mortgage and real estate industries. HomeStreet uses CoreLogic's solutions for a variety of purposes, including property valuation, flood determination, and fraud detection.

Upstream Service Providers

1. Realtors

• HomeStreet works with a network of realtors to generate leads for new mortgages. Realtors are typically independent contractors who represent buyers and sellers in real estate transactions.

2. Appraisers

• HomeStreet uses appraisers to determine the value of properties for mortgage lending purposes. Appraisers are typically licensed professionals who have undergone specialized training.

3. Home inspectors

• HomeStreet uses home inspectors to inspect properties for potential defects that could affect the value of the property or the safety of the occupants. Home inspectors are typically licensed professionals who have undergone specialized training.

4. Title companies

• HomeStreet uses title companies to ensure that the title to a property is clear and that there are no liens or other encumbrances on the property. Title companies are typically licensed professionals who have undergone specialized training.

Primary Downstream Companies of HomeStreet Bancorp Inc.:

1. HomeStreet Home Loans (https://www.homestreetloans.com/)

• HomeStreet Home Loans is the largest subsidiary of HomeStreet Bancorp Inc.
• Provides a wide range of mortgage lending products and services to consumers and investors nationwide.
• Offers various loan options, such as conventional loans, FHA loans, VA loans, jumbo loans, and refinancing options.

2. HomeStreet Bank (https://www.homestreet.com/)

• HomeStreet Bank is a full-service commercial bank that provides a comprehensive suite of banking products and services to businesses, professionals, and individuals.
• Offers a full spectrum of accounts, including checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs).
• Provides business services such as commercial lending, cash management, and merchant services.

3. HomeStreet Capital Markets (https://www.homestreetcapitalmarkets.com/)

• HomeStreet Capital Markets is the capital markets arm of HomeStreet Bancorp Inc.
• Focuses on originating, structuring, and distributing residential mortgage-backed securities (RMBS).
• Provides solutions for investors seeking exposure to residential mortgage finance.

4. HomeStreet Mortgage Servicing (https://www.homestreetmortgageservicing.com/)

• HomeStreet Mortgage Servicing is a loan servicing company that manages residential mortgages for various originators and servicers.
• Provides a comprehensive range of servicing functions, including loan payment processing, escrow administration, property tax payments, and customer support.

5. Finance of America Mortgage LLC (https://www.financeofamerica.com/)

• Finance of America Mortgage LLC is a non-bank mortgage lender that is owned by HomeStreet Bancorp Inc.
• Specializes in providing mortgage financing for non-traditional borrowers, such as self-employed individuals, foreign nationals, and those with credit challenges.

6. Prime Mortgage Lending LLC (https://www.primelending.com/)

• Prime Mortgage Lending LLC is a subsidiary of HomeStreet Bancorp Inc.
• Offers a full range of mortgage products and services to consumers and mortgage brokers.
• Provides various loan options, including conventional loans, FHA loans, VA loans, and jumbo loans.

Key Revenue Streams of HomeStreet, Inc.

HomeStreet, Inc. is a diversified financial services company headquartered in Seattle, Washington. The company's primary revenue streams are:

1. Residential Lending

• Annual Revenue: Approximately $800 million
• Description: HomeStreet originates and services residential mortgage loans through its network of retail branches and loan officers. The company offers a variety of loan products, including conventional, FHA, VA, and jumbo loans.

2. Commercial Lending

• Annual Revenue: Approximately $400 million
• Description: HomeStreet provides commercial real estate loans to small businesses and investors. The company offers a variety of loan products, including commercial mortgages, construction loans, and lines of credit.

3. Deposit Services

• Annual Revenue: Approximately $300 million
• Description: HomeStreet offers a range of deposit products, including checking accounts, savings accounts, and money market accounts. The company generates revenue from interest earned on customer deposits.

4. Wealth Management

• Annual Revenue: Approximately $200 million
• Description: HomeStreet provides wealth management services through its subsidiary, H.S. Insurance Services, Inc. The company offers a variety of financial planning and investment services to individuals and families.

5. Insurance

• Annual Revenue: Approximately $100 million
• Description: HomeStreet distributes a range of insurance products, including homeowners insurance, auto insurance, and life insurance. The company generates revenue from commissions on insurance policies sold.

6. Other

• Annual Revenue: Approximately $50 million
• Description: This category includes revenue from loan servicing, investment banking, and other ancillary services.

Total Annual Revenue (Estimated): $1.9 billion

Key Partners of HomeStreet

1. M&T Bank

Website: https://www.mtb.com/

M&T Bank is a top-tier regional bank serving the Northeast United States. The bank provides a wide range of financial products and services, including personal banking, commercial banking, and wealth management. HomeStreet has partnered with M&T Bank to provide its customers with access to a variety of banking products and services.

2. Fannie Mae

Website: https://www.fanniemae.com/

Fannie Mae is a government-sponsored enterprise (GSE) that purchases mortgages from lenders and packages them into securities for sale to investors. HomeStreet has partnered with Fannie Mae to provide its customers with access to a variety of mortgage products.

3. Freddie Mac

Website: https://www.freddiemac.com/

Freddie Mac is another GSE that purchases mortgages from lenders and packages them into securities for sale to investors. HomeStreet has partnered with Freddie Mac to provide its customers with access to a variety of mortgage products.

4. Real estate agents

HomeStreet partners with a network of real estate agents to help its customers buy and sell homes. These agents are familiar with the local market and can provide HomeStreet customers with expert advice on finding the right home or selling their current home.

5. Homebuilders

HomeStreet partners with a network of homebuilders to help its customers build new homes. These builders are experienced in building homes in a variety of styles and price ranges. HomeStreet customers can work with these builders to design and build the home of their dreams.

6. Title insurance companies

HomeStreet partners with a network of title insurance companies to protect its customers from potential title defects. Title insurance is an important part of the homebuying process, and HomeStreet can help its customers find the right title insurance policy for their needs.

Key Cost Structure of HomeStreet, Inc.

Personnel and Employee Benefits

• Salaries and Wages: $467.5 million (58.4% of total expenses)
• Employee Benefits: $86.3 million (10.8%)

Deposit and Loan Funding

• Interest Expense: $249.2 million (31.2%)
• Deposit Insurance: $42.7 million (5.4%)

Other Operating Expenses

• Marketing: $29.7 million (3.7%)
• Technology: $23.6 million (2.9%)
• Professional Fees: $19.7 million (2.5%)
• Insurance: $18.5 million (2.3%)
• Property and Equipment: $18.0 million (2.3%)
• Other: $42.8 million (5.4%)

Total Estimated Annual Cost

Based on the company's 2021 financial statements, HomeStreet's total estimated annual cost is approximately $801.8 million.

Analysis

Personnel and employee benefits comprise the largest portion of HomeStreet's cost structure, reflecting the labor-intensive nature of the banking industry. Deposit and loan funding is also a significant expense due to the interest paid on deposits and the cost of securing funds for loans.

HomeStreet's other operating expenses are relatively balanced, with marketing, technology, and professional fees being the primary drivers. These expenses are essential for maintaining customer relationships, developing new products and services, and meeting regulatory requirements.

Overall, HomeStreet's cost structure is in line with industry peers. The company's focus on controlling expenses has contributed to its strong financial performance in recent years.

Sales Channels

HomeStreet Bank operates through the following primary sales channels:

• Branch Network: HomeStreet has a network of approximately 90 branches located primarily in the western United States, including California, Washington, Oregon, and Hawaii. These branches provide a variety of financial products and services to consumers and businesses, including but not limited to:

  • Checking and savings accounts
  • Mortgages
  • Home equity loans
  • Commercial and consumer loans
  • Trust and investment services

• Online and Mobile Banking: HomeStreet offers its customers online and mobile banking services, which allow them to access their accounts, make transactions, and manage their finances remotely. These services are available through HomeStreet's website and mobile app.

• Mortgage Origination: HomeStreet operates a mortgage origination business through its subsidiary, HomeStreet Lending. HomeStreet Lending offers a variety of mortgage products, including but not limited to:

  • Conventional loans
  • FHA loans
  • VA loans
  • Jumbo loans

• Trust and Investment Services: HomeStreet provides trust and investment services to individuals and institutions through its subsidiary, HomeStreet Trust Company. These services include but are not limited to:

  • Trust administration
  • Investment management
  • Estate planning

Estimated Annual Sales

HomeStreet Bank's estimated annual sales for the year 2023 are approximately $1.5 billion. This estimate is based on the following factors:

• Financial data from HomeStreet's annual reports and public filings
• Industry research and analysis
• Analyst estimates

It's important to note that this is an estimated figure and actual sales may vary.

HomeStreet, Inc.

HomeStreet, Inc. is a privately held financial services company headquartered in Seattle, Washington. It operates through its banking subsidiary, HomeStreet Bank, and its insurance subsidiary, HomeStreet Insurance Services. HomeStreet Bank has 60 branches in Washington, Oregon, California, Hawaii, and Alaska. HomeStreet Insurance Services offers a range of insurance products, including homeowners, renters, auto, and business insurance.

Customer Segments and Estimated Annual Sales

HomeStreet's customer segments and estimated annual sales are as follows:

• Individuals: HomeStreet offers a range of banking and insurance products to individuals, including checking accounts, savings accounts, mortgages, home equity loans, auto loans, and personal loans. Individuals account for the majority of HomeStreet's sales, with an estimated annual sales volume of $1.5 billion.
• Small businesses: HomeStreet offers a range of banking and insurance products to small businesses, including business checking accounts, business savings accounts, commercial loans, and business insurance. Small businesses account for a significant portion of HomeStreet's sales, with an estimated annual sales volume of $500 million.
• Non-profits: HomeStreet offers a range of banking and insurance products to non-profit organizations, including non-profit checking accounts, non-profit savings accounts, and non-profit loans. Non-profits account for a small portion of HomeStreet's sales, with an estimated annual sales volume of $100 million.

HomeStreet's Target Market

HomeStreet's target market is individuals, small businesses, and non-profit organizations in the Pacific Northwest. The company focuses on providing personalized service and tailored financial solutions to its customers. HomeStreet also targets customers who are underserved by traditional banks and insurance companies.

HomeStreet's Competitive Advantages

HomeStreet has a number of competitive advantages, including:

• Strong local presence: HomeStreet has a network of branches in the Pacific Northwest, which allows it to provide personalized service to its customers.
• Tailored financial solutions: HomeStreet offers a range of financial products and services that are tailored to the needs of its customers.
• Focus on underserved customers: HomeStreet focuses on providing financial services to individuals, small businesses, and non-profit organizations that are underserved by traditional banks and insurance companies.
• Strong financial performance: HomeStreet has a strong track record of financial performance, with consistent growth in revenue and earnings.

Value Proposition of HomeStreet, Inc.

Introduction: HomeStreet, Inc. is a diversified financial services company headquartered in Seattle, Washington. The company provides a wide range of financial products and services, including banking, lending, insurance, and wealth management. HomeStreet has a strong track record of providing value to its customers through its focus on customer service, innovation, and community involvement.

Key Value Proposition Elements:

1. Customer-Centric Approach: HomeStreet believes that its customers are at the heart of everything it does. The company is committed to providing a superior customer experience by understanding and meeting the financial needs of its customers. HomeStreet's customer-centric approach is reflected in its personalized service, flexible products, and convenient access to banking services.

2. Competitive Products and Services: HomeStreet offers a diverse range of financial products and services that are designed to meet the needs of its customers. The company's product offerings include mortgages, home equity loans, personal loans, credit cards, checking and savings accounts, and insurance products. HomeStreet also provides wealth management services, including investment management, financial planning, and retirement planning.

3. Innovative Technology: HomeStreet is committed to using technology to enhance the customer experience. The company offers online banking, mobile banking, and a variety of other digital tools that make it easy for customers to manage their finances. HomeStreet also invests in technology to improve its efficiency and reduce costs.

4. Local Market Expertise: HomeStreet has a strong presence in the Western United States, with branches in Washington, Oregon, California, and Arizona. The company has a deep understanding of the local markets it serves and is able to provide its customers with tailored financial solutions.

5. Community Involvement: HomeStreet is a strong supporter of the communities it serves. The company is involved in a variety of philanthropic activities, including affordable housing initiatives, financial literacy programs, and support for local businesses. HomeStreet's community involvement helps to build strong relationships and contribute to the well-being of the regions it serves.

Benefits for Customers:

By partnering with HomeStreet, customers can benefit from the following:

• Personalized service and tailored financial solutions
• Access to a wide range of competitive financial products and services
• Convenience and ease of use through digital tools
• Local expertise and a deep understanding of the customer's market
• Support for the local community and a commitment to social responsibility

Conclusion: HomeStreet's value proposition is built on a foundation of customer-centricity, innovation, and community involvement. By providing a superior customer experience, offering competitive products and services, and investing in technology, HomeStreet differentiates itself in the financial services industry. The company's commitment to its customers and its local communities makes it a trusted financial partner for individuals, families, and businesses alike.

Credit Risk

• HomeStreet Bank's loan portfolio is concentrated in certain geographic markets, primarily the Pacific Northwest, which makes it vulnerable to economic downturns in those areas.
• The bank has a higher proportion of non-performing loans than some of its peers, which could lead to losses if these loans are not repaid.
• HomeStreet Bank's reliance on jumbo loans, which are typically larger and riskier than conforming loans, also increases its credit risk.

Interest Rate Risk

• HomeStreet Bank is sensitive to changes in interest rates, as a significant portion of its deposits are interest-rate sensitive.
• If interest rates rise, the bank's net interest margin could decline, which would reduce its profitability.

Liquidity Risk

• HomeStreet Bank's reliance on wholesale funding sources, such as brokered deposits and repurchase agreements, makes it vulnerable to liquidity shocks.
• If these funding sources dry up, the bank could face difficulty meeting its financial obligations.

Operational Risk

• HomeStreet Bank operates in a highly competitive industry, which increases its operational risk.
• The bank's reliance on technology systems also poses operational risks, such as cybersecurity breaches and system failures.

Compliance Risk

• HomeStreet Bank is subject to a variety of laws and regulations, and failure to comply with these requirements could result in fines, penalties, or other sanctions.
• The bank has been involved in several recent regulatory actions, which could increase its compliance risk going forward.

Reputation Risk

• HomeStreet Bank's reputation could be damaged by negative publicity or regulatory actions.
• This could lead to a loss of customers and a decline in the bank's stock price.

Other Risks

• HomeStreet Bank is also exposed to other risks, such as natural disasters, economic downturns, and geopolitical events.
• These risks could have a material impact on the bank's financial performance.