KBW Positive On HomeStreet Acquisition Moves

On a day where most of the attention is on Brexit and bank stress tests, Keefe, Bruyette & Woods took a quick look at HomeStreet, Inc

. This morning, the small-cap bank acquired 2 Southern California branches, adding to their growing presence in the region. KBW viewed this as a small positive for HomeStreet as these branches are ideal locations close to Kaiser Permanente. HomeStreet continues to add branches to improve their relationship with the employees of Kaiser Permanente and may increase the amount of branches in the area to drive revenue synergy. KBW notes that with acquisitions like The Bank of Oswego and Simplicity Bank, HomeStreet will see a small boost to organic growth from the commercial and consumer banking segment. In summary, KBW believes HomeStreet's acquisition efforts may not be impactful to EPS on an individual basis. However, collectively, these continued announcements could make a notable positive benefit. Shares of HomeStreet are trading up 2.075% at $20.96 per share.