Expense management

The bank will spend an additional $1.4 billion on technology in 2018 to gain share and boost efficiency, executives said Tuesday. But they were peppered with questions about whether the big investment will yield a big financial return down the road.

The company said it will lay off more than a dozen employees in a move that reflects the current volume of mortgage loan originations.

The Tennessee company also set high expectations for revenue opportunities while projecting it will deliver a 15% return on equity in 2019.

Higher costs dampened mortgage lenders' profitability, outweighing near-term gains in origination volume and per-loan revenue during the third quarter, according to the Mortgage Bankers Association's quarterly.

Blue Lion Capital believes a heavy focus on mortgages and acquisitions is hurting HomeStreet's financial performance.

The Seattle company, which has cut about 130 positions in the business in recent months, pointed to lower originations tied to a shortage of new and resale housing.

The regional bank reported an 8% gain in fee income and trimmed costs amid 1% loan growth.

Executives at BB&T, KeyCorp and Citizens are milking commercial lending niches and balancing cost control with new investments while waiting for more rate hikes to fatten margins.

Wintrust’s mortgage revenues fell in the first quarter, but net interest income picked up the slack.

The cuts punctuate the end to a rapid expansion period at the company, which now seems to be prioritizing profitability over growth.