UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ FORM 10-Q ________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____ Commission file number: 001-35424 ________________________________ HOMESTREET, INC. (Ex ...

Financial Performance - HomeStreet (HMST) reported revenue of $45.36 million for the quarter ended March 2025, marking a year-over-year increase of 9% [1] - The EPS for the same period was -$0.15, an improvement from -$0.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $44.39 million, resulting in a surprise of +2.19% [1] - The company experienced an EPS surprise of -114.29%, with the consensus EPS estimate being -$0.07 [1] Key Metrics - Net Interest Margin was reported at 1.8%, slightly below the estimated 1.9% [4] - Efficiency Ratio was 102.9%, higher than the estimated 101.2% [4] - Net Interest Income was $33.22 million, compared to the average estimate of $35.94 million [4] - Net gain on loan origination and sale activities was $3.22 million, exceeding the estimated $2.09 million [4] - Total noninterest income reached $12.14 million, significantly above the average estimate of $9.36 million [4] Stock Performance - HomeStreet shares have returned +20.1% over the past month, contrasting with the Zacks S&P 500 composite's -4.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

HomeStreet (HMST) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -114.29%. A quarter ago, it was expected that this real estate lender would post a loss of $0.21 per share when it actually produced a loss of $0.27, delivering a surprise of -28.57%.Over the last four quarters, the company has ...

HomeStreet Reports First Quarter 2025 Results SEATTLE –April 28, 2025 – (BUSINESS WIRE) – HomeStreet, Inc. (Nasdaq: HMST) (including its consolidated subsidiaries, the "Company", "HomeStreet" or "we"), the parent company of HomeStreet Bank (the "Bank"), today announced the financial results for the quarter ended March 31, 2025. As we present non-GAAP measures in this release, the reader should refer to the non-GAAP reconciliations set forth below under the section "Non-GAAP Financial Measures." "As a result ...

Core Insights - Banks are increasingly learning to position themselves against macroeconomic volatility to enhance financial stability and operational sustainability [1] Group 1: Industry Overview - Banks are often the first to feel the impact of macroeconomic volatility, making them vulnerable to uncertainties and recessions [1] - Despite the challenges, many banks are adapting their strategies to mitigate risks associated with economic fluctuations [1] Group 2: Investment Trends - The logistics sector has seen significant interest from investors, with a focus on diversification across various industries and market cap sizes [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to a broader portfolio approach [1] - The US market has become a target for investment, with a growing number of investors exploring opportunities in US banks, hotels, shipping, and logistics companies [1]

HomeStreet (HMST) shares rallied 26.2% in the last trading session to close at $11.74. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.4% loss over the past four weeks. HomeStreet and Mechanics Bank announced an all-stock business combination between the two. Existing shareholders of Mechanics Bank will receive common stock in HomeStreet in exchange for their Mechanics Bank shares. Upon closure, HomeStreet ...

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NEW YORK, March 31, 2025 /PRNewswire/ -- Rowley Law PLLC is investigating potential securities law violations by HomeStreet, Inc. (NASDAQ: HMST) and its board of directors concerning the proposed acquisition of the company by Mechanics Bank. HomeStreet stockholders will own approximately 8.3% of the combined company. The transaction is valued at approximately $300 million and is expected to close in the third quarter of 2025. Attorney Advertising. Prior results do not guarantee a similar outcome. SOURCE Row ...

Financial Performance - As of December 31, 2024, HomeStreet, Inc. had total assets of $8.1 billion, loans of $6.2 billion, and deposits of $6.4 billion[18]. - In 2023, the company's mortgage origination volume decreased by 42% compared to 2022, primarily due to significant increases in interest rates[54]. - The company reported a net loss of $144,344,000 for 2024, compared to a net loss of $27,508,000 in 2023[117]. - The net interest income for 2024 was $120,087,000, a decrease from $166,753,000 in 2023[117]. - The efficiency ratio increased to 116.0% in 2024, compared to 95.6% in 2023[117]. - Total revenues decreased to $164,520 thousand in 2024 from $208,674 thousand in 2023, representing a decline of approximately 21.1%[178]. - The company incurred a loss on the sale of multifamily loans amounting to $88,818 thousand in 2024[178]. - The core net loss for 2024 was $20.9 million, down from core net income of $8.3 million in 2023, indicating a deterioration in core profitability[121]. - Noninterest income for 2024 was a loss of $44,385 thousand, compared to a gain of $41,921 thousand in 2023, reflecting a substantial decline in noninterest revenue[130]. - The company's retained earnings decreased from $395,357,000 in 2023 to $251,013,000 in 2024, a decline of about 36.4%[209]. Asset and Liability Management - Total assets decreased from $9,392,450 thousand in 2023 to $8,123,698 thousand in 2024, a decline of approximately 13.5%[118]. - The company's total liabilities decreased from $8,854,063,000 in 2023 to $7,726,701,000 in 2024, a reduction of approximately 12.7%[209]. - The loans to deposits ratio improved from 109.4% in 2023 to 97.4% in 2024, indicating better liquidity management[118]. - The fair value of investment securities available for sale decreased from $1,251,199,000 in 2023 to $1,019,959,000 in 2024[137]. - Cash and cash equivalents increased by $190.9 million in 2024, compared to an increase of $142.8 million in 2023[162]. Credit Quality and Loss Provisions - The allowance for credit losses (ACL) to total loans increased from 0.55% in 2023 to 0.63% in 2024, suggesting a higher provision for potential loan losses[118]. - The ratio of nonperforming assets to total assets increased to 0.71% as of December 31, 2024, up from 0.45% in 2023[151]. - The total loans delinquent over 30 days rose to 1.06% in 2024 from 0.72% in 2023[151]. - The company's allowance for credit losses (ACL) as of December 31, 2024, was $38.743 million, with a rate of 0.63%, compared to $40.500 million and a rate of 0.55% as of December 31, 2023[157]. Employee and Operational Metrics - The company employed 787 employees, with a turnover rate of 21% for the year ended December 31, 2024[23]. - The company experienced a 9% decrease in full-time equivalent (FTE) employees, contributing to lower compensation and benefit costs[135]. - The company has adopted an information security program approved by its board to address cybersecurity risks[21]. - The company’s operational systems are vulnerable to unforeseen problems, including natural disasters and infrastructure damage, which could disrupt critical functions and increase operational costs[76]. Regulatory and Compliance Issues - The company is subject to extensive regulations, which can increase compliance costs and expose it to significant penalties for noncompliance[62]. - The company has limited ability to pay dividends from the Bank due to regulatory restrictions and capital requirements[56]. - Federal and state regulations may restrict the bank's ability to pay dividends, which could affect the company's capacity to service its debt obligations[83]. - The company is exposed to significant legal claims and regulatory actions, which could result in substantial uninsured liabilities and reputational harm[66]. Market and Economic Conditions - The company faces competitive pressures from banks, credit unions, and technology-driven financial service providers, which may impact future earnings and growth[46]. - Changes in interest rates significantly affect the company's profitability, impacting the difference between interest earned on loans and interest paid on deposits[40]. - Adverse economic conditions, including inflation, could negatively impact borrowers' ability to repay loans, affecting the company's financial condition[44]. - The company faces potential negative impacts on its financial condition and operations due to public health crises, which may lead to increased unemployment and financial hardship for customers in affected industries[70]. Technology and Cybersecurity - The company is exposed to cybersecurity risks that could result in financial losses, operational disruptions, and reputational damage due to the evolving nature of cyber threats[72]. - The company has implemented various cybersecurity processes and controls to manage risks and improve its incident response plan, although challenges remain in fully mitigating these risks[92]. - The company may face difficulties in raising debt or capital to pay off its HomeStreet Notes upon maturity, especially in constrained capital markets[87]. Future Outlook and Strategy - In Q4 2024, the company sold $990 million of multifamily loans, repositioning its balance sheet and aiming for profitability in H1 2025[110]. - The company plans to provide forbearance and assistance to customers affected by wildfires in Southern California, with no expected losses due to full insurance coverage[112]. - The company has a dividend policy but does not intend to pay dividends in 2025, with reassessment occurring quarterly[105].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a net loss of $123.3 million or $6.54 per share, compared to a net loss of $7.3 million or $0.39 per share in Q3 2024 [7] - The core net loss, excluding certain impacts, was $5.1 million or $0.27 per share, an improvement from a net loss of $6 million or $0.32 per share in Q3 2024 [8] - Net interest income increased by $1 million from Q3 2024, with a net interest margin rising from 1.33% to 1.38% [11] Business Line Data and Key Metrics Changes - Noninterest income decreased primarily due to an $88.8 million loss on the sale of multifamily loans [14] - Noninterest expenses were $5.2 million lower in Q4 2024, driven by a decrease in compensation benefits and general administrative expenses [15] Market Data and Key Metrics Changes - The ratio of nonperforming assets to total assets was 71 basis points, and total loans delinquent over 30 days was 106 basis points as of December 31, 2024 [14] - The company experienced a $15 million increase in nonaccrual loans during Q4, primarily related to a syndicated commercial loan [14] Company Strategy and Development Direction - Following the termination of a merger, the company adopted a new strategic plan, including the sale of $990 million in multifamily loans to improve liquidity and reduce commercial real estate concentrations [19][20] - The company anticipates returning to profitability in the first half of 2025, driven by loan repricing and effective noninterest expense management [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability early in the year, contingent on stable credit conditions and economic factors [22][31] - The company noted that deposits have shown resilience despite external pressures, maintaining a low level of uninsured deposits at 9% of total deposits [23] Other Important Information - The tangible book value per share decreased to $20.67 as of year-end, impacted by the loss on the loan sale and tax implications [25] - The company has significant exposure to commercial real estate in areas affected by wildfires but expects no losses due to full insurance coverage [27][28] Q&A Session Summary Question: What is the expected NIM trajectory for the first half of the year? - Management does not have a specific target but expects a positive impact on earnings from the loan sale and repricing [36][40] Question: What is the current spot rate on deposits? - As of December 31, the spot rate for all deposits was 2.65%, with expectations to reduce broker deposits further [48] Question: What is the appetite for more originate-to-sale business? - The company has a large appetite but is cautious due to current market conditions and borrower activity [72] Question: Are there more opportunities to reduce noninterest expenses? - Management indicated limited opportunities remain for further reductions, with a focus on maintaining critical positions [75][78]