How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
HomeStreet Bank scored 18 out of a possible 30 on Bankrate's test of earnings, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for HomeStreet Bank was 9.71 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $71.3 million on total equity of $776.6 million. The bank experienced an annualized return on average assets, or ROA, of 1.10 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.