4th Quarter 2024 Nasdaq: HMST January 27, 2025 Important Disclosures Forward-Looking Statements This presentation includes forward-looking statements, as that term is defined for purposes of applicable securities laws, our industry, our future financial performance, business plans and expectations, including expectations relating to decreases in interest rates and the impact of such decreases on the Company, impact of loan sales on the Company, and return to profitability and timing of such achievement. The ...

Group 1 - The year 2024 was exceptional for banks, following a complicated 2023 marked by a series of bank failures, starting with Silicon Valley Bank [1] - The economy demonstrated greater resilience than anticipated, which contributed to the recovery of the banking sector [1] Group 2 - The article does not provide specific financial data or performance metrics related to individual banks or the banking sector as a whole [1]

Core Viewpoint - HomeStreet (HMST) reported a quarterly loss of $0.27 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, and a decline from a loss of $0.12 per share a year ago [1][2] Financial Performance - The company posted revenues of $40.31 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.36% and down from $45.95 million year-over-year [2] - Over the last four quarters, HomeStreet has surpassed consensus EPS estimates only once [2] Stock Performance - HomeStreet shares have declined approximately 11% since the beginning of the year, while the S&P 500 has gained 3.7% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.01 for the coming quarter and $0.38 for the current fiscal year, alongside revenues of $46.79 million and $194.7 million respectively [7] - The estimate revisions trend for HomeStreet is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Savings and Loan industry, to which HomeStreet belongs, is currently in the top 11% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - HomeStreet reported a net loss of $123.3 million in Q4 2024, compared to a net loss of $7.3 million in Q3 2024, resulting in a net loss per fully diluted share of $6.54[1]. - For the full year 2024, the net loss was $144.3 million, with a net loss per fully diluted share of $7.65, compared to a net loss of $27.5 million and $1.46 per share in 2023[2]. - The company reported a net loss of $123,327,000 for Q4 2024, compared to a net loss of $3,419,000 in Q4 2023, marking a substantial increase in losses[12]. - The company reported a net loss of $144,344 thousand for the year 2024, compared to a net loss of $27,508 thousand in 2023, representing a significant increase in losses[17]. - Core net loss for the quarter ended December 31, 2024, was $(123,327), compared to $(7,282) in the previous quarter[60]. - The core net loss for Q4 2024 was $5.1 million, a slight improvement from $6.0 million in Q3 2024, primarily due to increased net interest income and reduced noninterest expenses[21]. Asset and Liability Management - Total assets as of December 31, 2024, were $8,123,698,000, down from $9,392,450,000 as of December 31, 2023, reflecting a decrease of 13.5%[13]. - Total liabilities decreased to $7,726,701 thousand in 2024 from $8,854,063 thousand in 2023, a reduction of about 12.7%[16]. - Total deposits decreased by $33 million, with uninsured deposits at $581 million, representing 9% of total deposits[3]. - Deposits fell to $6,413,021 thousand in 2024, down from $6,763,378 thousand in 2023, a decrease of approximately 5.2%[16]. - Total assets decreased by $1.3 billion in 2024, largely due to the $990 million sale of multifamily loans and a $221 million decrease in investment securities[34]. - Total liabilities decreased by $1.1 billion in 2024, driven by a $745 million decrease in borrowings and a $350 million decrease in deposits[34]. Income and Expenses - Net interest income for Q4 2024 was $29,616,000, a decrease from $34,989,000 in Q4 2023, representing a decline of 15.4% year-over-year[12]. - Noninterest income for Q4 2024 was a loss of $78,124,000, compared to a gain of $10,956,000 in Q4 2023, indicating a significant downturn[12]. - The company experienced a total noninterest income loss of $44,385 thousand for the year ended December 31, 2024, compared to a gain of $41,921 thousand in 2023[17]. - Interest expense increased to $282,486 thousand in 2024, up from $232,990 thousand in 2023, reflecting a rise of about 21.2%[17]. - Noninterest expenses were reduced by $45.7 million in 2024, primarily due to a $39.9 million goodwill impairment charge in 2023[33]. Credit Quality and Allowances - The allowance for credit losses to LHFI was 0.63%, with nonperforming assets to total assets at 0.71%[3]. - The allowance for credit losses (ACL) was $38,743,000 as of December 31, 2024, slightly down from $40,500,000 as of December 31, 2023[13]. - The provision for credit losses was zero in 2024, compared to a provision of $441 thousand in 2023, indicating a change in credit loss expectations[17]. - The ratio of nonperforming assets to total assets rose to 0.71% as of December 31, 2024, up from 0.45% as of December 31, 2023, indicating a deterioration in asset quality[13]. Equity and Book Value - The tangible book value per share decreased to $20.67 as of December 31, 2024, from previous levels due to cumulative losses and market conditions[6]. - The company’s total shareholders' equity decreased to $396,997,000 as of December 31, 2024, from $538,387,000 as of December 31, 2023, a decline of 26.2%[13]. - The book value per share was $21.05 as of December 31, 2024, down from $28.62 as of December 31, 2023, representing a decrease of 26.5%[13]. Future Outlook - HomeStreet anticipates continuous growth in earnings for the foreseeable future, supported by effective noninterest expense management and expected reductions in short-term interest rates[1]. - The company anticipates potential challenges due to changes in the interest rate environment and economic conditions, which may affect future performance[63]. - The company has highlighted the importance of managing operating costs and credit quality to mitigate risks associated with economic fluctuations[64]. - The company plans to continue focusing on market expansion and new product development to enhance future performance[58].

Core Viewpoint - HomeStreet (HMST) is expected to report a quarterly loss of $0.21 per share, reflecting a year-over-year decline of 75%, with anticipated revenues of $41.29 million, down 10.2% from the previous year [1] Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 105.7% in the past 30 days, indicating a reassessment by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Metrics Analysis - Analysts predict the 'Efficiency Ratio' will reach 111.5%, up from 105.9% in the same quarter last year [5] - The 'Average Balance - Total interest earning assets' is expected to be $8.61 billion, down from $8.92 billion in the same quarter last year [5] - The consensus estimate for 'Total noninterest income' is $11.48 million, compared to $10.96 million in the same quarter last year [6] - 'Net Interest Income' is projected to be $30.14 million, down from $34.99 million year-over-year [6] - 'Loan servicing income' is expected to be $3.00 million, compared to $3.26 million in the same quarter last year [6] - 'Other' income is projected to reach $3.04 million, down from $3.26 million in the same quarter last year [7] Stock Performance - HomeStreet shares have changed by +1.3% in the past month, compared to a +2.1% move of the Zacks S&P 500 composite [7] - With a Zacks Rank 2 (Buy), HMST is expected to outperform the overall market in the near future [7]

Core Viewpoint - HomeStreet (HMST) is expected to report a year-over-year decline in earnings due to lower revenues, with a consensus outlook indicating a quarterly loss of $0.21 per share, representing a 75% decrease from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to be released on January 27, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2]. - Revenues are projected to be $41.29 million, reflecting a 10.1% decrease from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 105.71% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for HomeStreet is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -35.94%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [8]. - HomeStreet currently holds a Zacks Rank of 2, but the negative Earnings ESP complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, HomeStreet was expected to post a loss of $0.20 per share but actually reported a loss of $0.32, resulting in a surprise of -60% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - HomeStreet does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Core Viewpoint - HomeStreet (HMST) has experienced significant selling pressure, declining 13.4% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously estimated [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2] - HMST's current RSI reading is 25.11, suggesting that heavy selling may be exhausting, indicating a potential bounce back towards equilibrium [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for HMST have significantly increased, with a 1337.5% rise in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6] - HMST holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7]

Core Insights - HomeStreet, Inc.'s subsidiary, HomeStreet Bank, is selling approximately $990 million worth of multifamily commercial real estate loans to Bank of America, which is expected to enhance profitability and mitigate funding costs [1][3] - The loans will be sold at an approximate 8% discount, resulting in nearly $906 million received from Bank of America, primarily due to the existing interest rate environment and the nature of the loans being lower-yielding with longer durations [2][5] - This transaction is a significant milestone for HomeStreet, marking a potential return to profitability after four consecutive quarters of adjusted losses and addressing investor concerns following the halt of a proposed merger with FirstSun Capital Bancorp [3][9] Financial Strategy - The proceeds from the loan sale will be utilized to repay Federal Home Loan Bank (FHLB) advances and brokered deposits, which have higher interest rates compared to the company's core deposits [5] - HomeStreet will retain the servicing of the loans, indicating a continued relationship with the loan portfolio despite the sale [2] Market Context - Both HomeStreet and Bank of America currently hold a Zacks Rank of 3 (Hold), reflecting a neutral outlook in the market [6] - The loan sale aligns with broader industry trends, as other financial firms like Valley National Bancorp are also restructuring their loan portfolios to manage risks and reduce exposure to commercial real estate [4][8]

The Seattle-based parent company of HomeStreet Bank agreed to sell $990 million in multifamily commercial real estate loans to Bank of America.The price, including the value of the retained servicing, is 92% of the principal balance of the loans, and the loan sale is expected to close before Tuesday (Dec. 31), HomeStreet said in a Friday (Dec. 27) press release.“The pricing of the loan sale reflects the current interest rate environment and that the loans being sold are primarily lower yielding loans with l ...

HomeStreet meStreet eet 3rd Quarter 2024 October 29, 2024 Important Disclosures Forward-Looking Statements This presentation includes forward-looking statements, as that term is defined for purposes of applicable securities laws, about our proposed merger (the "Merger") with FirstSun Capital Bancorp, Inc. ("FirstSun"), our industry, our future financial performance, business plans and expectations. These statements are, in essence, attempts to anticipate or forecast future events, and thus subject to many r ...