HomeStreet, Inc. (NASDAQ:HMST) Q3 2023 Earnings Call Transcript

John Michel: I think the fourth quarter would be a similar change. As Mark mentioned, there is some reductions in personnel that we’ll be realizing the full benefit in the fourth quarter. And just as a reminder in the first quarter and why we comment on it always is we do have those compensation benefit costs that come in to hit hard in the first quarter, which is basically employer taxes and 401(k) maths..

Mark Mason: And merit increases.

John Michel: They hit the second quarter really. So the first quarter is primarily – it’s literally projecting out. It’s literally $1 million more in the first quarter compared to the fourth quarter. And then it kind of comes down again and goes through the cycle. So – but that’s – so the first quarter that’s the only reference we have to slightly increasing that’s because of those. But we think there’s offsetting costs in the compensation that Mark talked about in the fourth quarter that will carry forward to the first quarter. So other than that one item, we see a general trend continuing.

Timothy Coffey: Okay. Great. That’s great, John. Thank you. Those are my questions. I appreciate your time.

John Michel: Thanks, Tim.

Operator: We have no further questions in the queue. So I’ll turn the call back over to Mark Mason for closing remarks.

Mark Mason: Again, we appreciate your attendance today and your patience for our prepared remarks and your questions. Look forward to speaking with you next quarter. Thank you.

Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.