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HomeStreet(HMST) - 2024 Q4 - Annual Results
HMSTHomeStreet(HMST)2025-01-27 21:03

Financial Performance - HomeStreet reported a net loss of 123.3millioninQ42024,comparedtoanetlossof123.3 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].−Forthefullyear2024,thenetlosswas6.54[1]. - For the full year 2024, the net loss was 144.3 million, with a net loss per fully diluted share of 7.65,comparedtoanetlossof7.65, compared to a net loss of 27.5 million and 1.46persharein2023[2].−Thecompanyreportedanetlossof1.46 per share in 2023[2]. - The company reported a net loss of 123,327,000 for Q4 2024, compared to a net loss of 3,419,000inQ42023,markingasubstantialincreaseinlosses[12].−Thecompanyreportedanetlossof3,419,000 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 27,508thousandin2023,representingasignificantincreaseinlosses[17].−CorenetlossforthequarterendedDecember31,2024,was27,508 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)inthepreviousquarter[60].−ThecorenetlossforQ42024was(7,282) in the previous quarter[60]. - The core net loss for Q4 2024 was 5.1 million, a slight improvement from 6.0millioninQ32024,primarilyduetoincreasednetinterestincomeandreducednoninterestexpenses[21].AssetandLiabilityManagement−TotalassetsasofDecember31,2024,were6.0 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 9,392,450,000asofDecember31,2023,reflectingadecreaseof13.59,392,450,000 as of December 31, 2023, reflecting a decrease of 13.5%[13]. - Total liabilities decreased to 7,726,701 thousand in 2024 from 8,854,063thousandin2023,areductionofabout12.78,854,063 thousand in 2023, a reduction of about 12.7%[16]. - Total deposits decreased by 33 million, with uninsured deposits at 581million,representing9581 million, representing 9% of total deposits[3]. - Deposits fell to 6,413,021 thousand in 2024, down from 6,763,378thousandin2023,adecreaseofapproximately5.26,763,378 thousand in 2023, a decrease of approximately 5.2%[16]. - Total assets decreased by 1.3 billion in 2024, largely due to the 990millionsaleofmultifamilyloansanda990 million sale of multifamily loans and a 221 million decrease in investment securities[34]. - Total liabilities decreased by 1.1billionin2024,drivenbya1.1 billion in 2024, driven by a 745 million decrease in borrowings and a 350milliondecreaseindeposits[34].IncomeandExpenses−NetinterestincomeforQ42024was350 million decrease in deposits[34]. Income and Expenses - Net interest income for Q4 2024 was 29,616,000, a decrease from 34,989,000inQ42023,representingadeclineof15.434,989,000 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 10,956,000inQ42023,indicatingasignificantdownturn[12].−Thecompanyexperiencedatotalnoninterestincomelossof10,956,000 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 41,921thousandin2023[17].−Interestexpenseincreasedto41,921 thousand in 2023[17]. - Interest expense increased to 282,486 thousand in 2024, up from 232,990thousandin2023,reflectingariseofabout21.2232,990 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 39.9milliongoodwillimpairmentchargein2023[33].CreditQualityandAllowances−TheallowanceforcreditlossestoLHFIwas0.6339.9 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 40,500,000asofDecember31,2023[13].−Theprovisionforcreditlosseswaszeroin2024,comparedtoaprovisionof40,500,000 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 20.67asofDecember31,2024,frompreviouslevelsduetocumulativelossesandmarketconditions[6].−Thecompany’stotalshareholders′equitydecreasedto20.67 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 538,387,000asofDecember31,2023,adeclineof26.2538,387,000 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].