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

Matthew Clark: Okay. And then just in terms of the use of those deposits, I mean, I thought previously you’d use them to pay down FHLB, but I think in your comments you mentioned that you locked in or of FHLB for some period of time. Can you just update us there?

Mark Mason: Yes. We’ll be using them to pay down broker deposits, essentially .

Matthew Clark: Yes. Okay, okay. And then in terms of the incremental loan growth, I mean sub-5% going forward here, call it, let’s just say 3% that’s 50 million, 60 million of loan growth a quarter, is the plan just to match fund that with deposits or do you plan to grow deposits in excess of that?

Mark Mason: Well, our longer term plan is to eliminate borrowings, right. We felt it necessary to fix this $1 billion of FHLB advances for a term to ensure that we took off the table some substantially higher level of Fed funds. We do believe that we can grow promotional deposit products through this year say maybe the third quarter and eliminate or near eliminate our broker deposits. So, that’s our plan. Of course, we continue to work to organically grow new customers. And we like others do add new customers consistently and we also have attrition steadily. Until this year, we’ve always had more growth organically than attrition, but with the liquidity coming out of the system, obviously, that’s a lot more challenging as is the challenges from alternative investments. And so, our current plan is again to refund or replace substantially all of our broker deposits with retail deposits, primarily promotional products.

Matthew Clark: Okay. And can you just update us on the amount of brokered deposits that you have at year-end and kind of related cost?

Mark Mason : Yes, it should be in the release, right, John?

John Michel : Yes.

Matthew Clark: If it’s split out.

Mark Mason : We’ll just point you to it, maybe just give us a second.

John Michel: It’s on the deposit table right.

Mark Mason: Sorry, we should know our materials better. I don’t know that we have that broken out. We could follow-up later.

Matthew Clark: Okay. Thank you.

Operator: Your next question is from the line of Woody Lay with KBW. Your line is now open.

Woody Lay: Hey, how’s it going guys?

Mark Mason: Good.

Woody Lay: Well, just had one follow-up on the branch purchase. I think last quarter you, kind of talked about it or sort of thought it would provide a day one benefit to the NIM of 25 basis points. Are you still thinking about it in the same way or is the forecast tough to tell at this point?