Coming off two straight profitable quarters and flush with capital from its recent public stock offering, HomeStreet Bank (HMST) in Seattle is back in the good graces of its regulators.
The thrift’s parent company announced late Tuesday that the Federal Deposit Insurance Corp. and the Washington Department of Financial Institutions have terminated a cease-and-desist order under which its HomeStreet Bank had been operating since May 2009. The order, which required HomeStreet to reduce its level of problem loans and bolster its capital ratios, was lifted Monday.
In a news release, Vice Chairman and Chief Executive Mark K. Mason called the termination of the order “a major milestone” for the $2.2 billion-asset HomeStreet,
“HomeStreet’s board of directors and management have worked closely with our regulators to meet the requirements of the order by building a strong credit culture, improving our asset quality, improving core earnings, maintaining strong liquidity and strengthening our capital position,” Mason said. “The termination of the order acknowledges these achievements.”
HomeStreet Bank had lost money in 10 consecutive quarters until it reported a $15.4 million profit in the third quarter of 2011. For the year it earned $17.6 million, compared to a loss of $29.3 million in 2010.
The bank’s fortunes were further improved when its parent company raised $96 million in an initial public offering
