Wade Lay's questions to HomeStreet (HMST) leadership • Q3 2023
Question
Inquired about the drivers for the quarterly expense decrease, the company's comfort with a high loan-to-deposit ratio, and the outlook for near-term profitability.
Answer
Expense reduction was driven by lower headcount and commissions, a trend expected to continue. The company is comfortable with the current loan-to-deposit ratio (~110%) in the short term due to strong liquidity, though the long-term goal is ~95%. They expect to remain profitable in the near term, albeit at low levels.