メカニクスバンコープの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 28, 2025

HOMESTREET, INC.

(Exact name of registrant as specified in its charter)

Washington

001-35424

91-0186600

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

601 Union Street, Ste. 2000, Seattle, WA 98101

(Address of principal executive offices) (Zip Code)

(206) 623-3050

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, No Par Value	HMST	Nasdaq Global Select Market


			Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Act or Rule 12b-2 of the Exchange Act.


☐			Emerging growth company

☐			If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act.


Item 2.02			Results of Operations and Financial Condition

On July 28, 2025, HomeStreet, Inc. issued a press release reporting results of operations for the second quarter of 2025. A copy of the earnings release is attached as Exhibit 99.1. A copy of the press release reporting summary results of operations is attached as Exhibit 99.2. This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.


Item 9.01			Financial Statements and Exhibits

(d)			Exhibits.
Exhibit 99.1			Earnings Release issued by HomeStreet, Inc. dated July 28, 2025 regarding its results of operations for the second quarter of 2025.
Exhibit 99.2			Summary Press Release issued by HomeStreet, Inc. dated July 28, 2025 regarding its results of operations for the second quarter of 2025.
Exhibit 104			Cover Page Interactive Data File (embedded within with Inline XBRL)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 28, 2025



HomeStreet, Inc.

By:						/s/ John M. Michel
						John M. Michel
						Executive Vice President and Chief Financial Officer

EX-99.1 2 a2q2025earningsrelease.htm EX-99.1 Q2 2025 EARNINGS RELEASE Document

HomeStreet Reports Second Quarter 2025 Results

SEATTLE –July 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 June 30, 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.”

“While we continue to work on the merger with Mechanics Bank, which is still expected to close in the third quarter of 2025, we are improving our operating metrics. In the second quarter we increased our net interest margin and continued to lower noninterest expenses,” said Mark Mason, Chairman of the Board, President, and Chief Executive Officer. “Our total and core net income for the second quarter of 2025 were consistent with our results for the first quarter of 2025 as continued improvements in our net interest margin, a $3.0 million increase in noninterest income and a $1.4 million decrease in noninterest expenses were offset by a $5.0 million increase in the provision for credit losses. The Bank, on a standalone basis, continued to be profitable in the second quarter of 2025 with net income of $0.7 million.”

“We are projecting a return to core profitability in the fourth quarter of this year, and given the scheduled repricing of our remaining multifamily and other commercial real estate loans, future anticipated reductions in higher cost borrowings, the repricing of our term deposits to lower rates and continued effective noninterest expense management, we anticipate continuous growth in earnings for the foreseeable future,” continued Mr. Mason. “Additionally, as a result of the deferred tax asset valuation allowance recorded in the fourth quarter of 2024, we do not expect to recognize any income tax expense on our earnings for the next few years.”


Operating Results						Second quarter 2025 compared to first quarter 2025 Reported Results: •Net loss: $4.4 million compared to $4.5 million •Net loss per fully diluted share: $0.23 compared to $0.24 •Noninterest expenses: $47.8 million compared to $49.1 million •Return on Average Equity ("ROAE"): (4.4)% compared to (4.5)% •Return on Average Tangible Equity ("ROATE"): (4.1)% compared to (4.2)% (1) •Return on Average Assets ("ROAA"): (0.23)% compared to (0.23)% •Net interest margin: 1.90% compared to 1.82% •Efficiency ratio: 93.2% compared to 102.9% (1)
						Core Results: (1) •Net loss: $3.1 million compared to $2.9 million •Net loss per fully diluted share: $0.16 compared to $0.15 •Core noninterest expenses: $45.6 million compared to $46.7 million •ROAE: (3.0)% compared to (2.9)% •ROATE: (2.7)% compared to (2.5)% •ROAA: (0.16)% compared to (0.15)%

(1) ROATE, the efficiency ratio, core net income (loss), core net income (loss) per fully diluted share, core noninterest expense, core ROAE, core ROATE and core ROAA are non-GAAP measures. For a reconciliation of these measures to the nearest comparable GAAP measure or a computation of the measure see "Non-GAAP financial measures" in this earnings release.

“Our net interest margin continued to improve in the second quarter due primarily to improving funding costs,” Mr. Mason stated.

“The decrease in our core noninterest expenses reflects our efforts to eliminate or defer nonessential expenses and the continued decline in our full time equivalent employees which decreased from 766 in the first quarter to 750 in the second quarter.”




Financial Position						As of and for the quarter ended June 30, 2025 •Excluding brokered deposits, total deposits decreased by $146 million •Loans held for investment ("LHFI"), decreased by $136 million •Nonperforming assets to total assets: 0.76% •Delinquencies: 1.11% •Allowance for credit losses to LHFI: 0.78% •Book value per share: $21.30 •Tangible book value per share: $20.97 (2)

(2) Tangible book value per share is a non-GAAP measure. For a reconciliation of this measure to the nearest comparable GAAP measure see "Non-GAAP financial measures" in this earnings release.

“The increase in our allowance for credit losses was due to the adverse credit migration of certain multifamily loans,” added Mr. Mason. “The downgrading of the risk rating of these loans is the result of our annual analysis of the prior year cash flow and current collateral coverage of portfolio commercial real estate loans. These loans continue to perform with guarantor support and our overall credit metrics remained stable with the total amount of delinquent loans and nonperforming assets decreasing slightly during the second quarter.”

About HomeStreet

HomeStreet, Inc. (Nasdaq: HMST) is a diversified financial services company headquartered in Seattle, Washington, serving consumers and businesses in the Western United States and Hawaii. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. Its principal subsidiary is HomeStreet Bank. Certain information about our business can be found on our investor relations web site, located at http://ir.homestreet.com. HomeStreet Bank is a member of the FDIC and is an Equal Housing Lender.


Contact:						Executive Vice President and Chief Financial Officer
						HomeStreet, Inc.
						John Michel (206) 515-2291
						john.michel@homestreet.com
						http://ir.homestreet.com

HomeStreet, Inc. and Subsidiaries

Summary Financial Data


	For the Quarter Ended
(in thousands, except per share data and FTE data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Select Income Statement Data:
Net interest income	$	33,870		$	33,221		$	29,616		$	28,619		$	29,701
Provision for credit losses	6,000			1,000			—			—			—
Noninterest income (loss)	15,100			12,136			(78,124)			11,058			13,227
Noninterest expense	47,751			49,108			43,953			49,166			50,931

Income (loss) before income taxes	(4,781)			(4,751)			(92,461)			(9,489)			(8,003)
Net income (loss)	(4,412)			(4,465)			(123,327)			(7,282)			(6,238)
Net income (loss) per fully diluted share	(0.23)			(0.24)			(6.54)			(0.39)			(0.33)
Core net income (loss): (1)
Total	(3,050)			(2,866)			(5,140)			(5,999)			(4,341)
Core net income (loss) per fully diluted share	(0.16)			(0.15)			(0.27)			(0.32)			(0.23)

Select Performance Ratios:
ROAE - annualized
Net Income (loss)	(4.4)		%	(4.5)		%	(92.7)		%	(5.4)		%	(4.8)		%
Core (1)	(3.0)		%	(2.9)		%	(3.9)		%	(4.5)		%	(3.3)		%
ROATE - annualized (1)
Net Income (loss)	(4.1)		%	(4.2)		%	(93.7)		%	(5.1)		%	(4.5)		%
Core (1)	(2.7)		%	(2.5)		%	(3.5)		%	(4.2)		%	(3.0)		%
ROAA - annualized
Net income (loss)	(0.23)		%	(0.23)		%	(5.38)		%	(0.32)		%	(0.27)		%
Core (1)	(0.16)		%	(0.15)		%	(0.22)		%	(0.26)		%	(0.19)		%
Efficiency ratio (1)	93.2		%	102.9		%	115.6		%	118.7		%	111.9		%
Net interest margin	1.90		%	1.82		%	1.38		%	1.33		%	1.37		%

Other data:
Full-time equivalent employees ("FTE")	750			766			792			819			840

(1)ROATE, core net income (loss), core net income (loss) per fully diluted share, core ROAE, core ROATE, core ROAA and the efficiency ratio are non-GAAP financial measures. For a reconciliation of these measures to the nearest comparable GAAP financial measure or the computation of the measure see “Non-GAAP Financial Measures” in this earnings release.

HomeStreet, Inc. and Subsidiaries

Summary Financial Data (continued)


	As of
(in thousands, except share and per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Select Balance Sheet Data:
Loans held for sale	$	48,783		$	34,734		$	20,312		$	38,863		$	29,781
Loans held for investment, net	5,887,333			6,023,582			6,193,053			7,294,603			7,340,309
Allowance for credit losses ("ACL")	45,806			39,634			38,743			38,651			39,741
Investment securities	1,030,981			1,055,318			1,057,006			1,158,035			1,160,595
Total assets	7,609,323			7,803,631			8,123,698			9,201,285			9,266,039
Deposits	5,857,284			6,090,495			6,413,021			6,435,404			6,532,470
Borrowings	1,040,000			1,000,000			1,000,000			1,896,000			1,886,000
Long-term debt	225,316			225,223			225,131			225,039			224,948
Total shareholders' equity	402,981			400,751			396,997			538,315			520,117
Other Data:
Book value per share	$	21.30		$	21.18		$	21.05		$	28.55		$	27.58
Tangible book value per share (1)	$	20.97		$	20.83		$	20.67		$	28.13		$	27.14
Total equity to total assets	5.3		%	5.1		%	4.9		%	5.9		%	5.6		%
Tangible common equity to tangible assets (1)	5.2		%	5.1		%	4.8		%	5.8		%	5.5		%
Shares outstanding at end of period	18,920,808			18,920,808			18,857,565			18,857,565			18,857,565
Loans to deposit ratio (Bank)	101.1		%	99.3		%	96.8		%	113.5		%	112.6		%
Credit Quality:
Delinquencies(2)	1.11		%	1.09		%	1.06		%	0.69		%	0.66		%
ACL to total loans (3)	0.78		%	0.66		%	0.63		%	0.53		%	0.55		%
ACL to nonaccrual loans	82.9		%	71.0		%	70.4		%	95.9		%	109.3		%
Nonaccrual loans to total loans	0.93		%	0.92		%	0.88		%	0.55		%	0.49		%
Nonperforming assets to total assets	0.76		%	0.75		%	0.71		%	0.47		%	0.42		%
Nonperforming assets	$	58,052		$	58,611		$	57,814		$	43,320		$	39,374
Regulatory Capital Ratios:
Bank
Tier 1 leverage	8.74		%	8.46		%	7.30		%	8.59		%	8.44		%
Total risk-based capital	13.66		%	13.40		%	13.02		%	13.41		%	13.29		%
Common equity Tier 1 capital	12.76		%	12.61		%	12.27		%	12.75		%	12.62		%
Company
Tier 1 leverage	6.78		%	6.62		%	5.77		%	7.04		%	6.98		%
Total risk-based capital	12.65		%	12.48		%	12.23		%	12.70		%	12.67		%
Common equity Tier 1 capital	8.78		%	8.76		%	8.62		%	9.50		%	9.49		%

(1)Tangible book value per share and tangible common equity to tangible assets are non-GAAP financial measures. For a reconciliation to the nearest comparable GAAP financial measure, see “Non-GAAP Financial Measures” in this earnings release.

(2)Total past due and nonaccrual loans as a percentage of total loans held for investment.

(3)This ratio excludes balances insured by the FHA or guaranteed by the VA or SBA.

HomeStreet, Inc. and Subsidiaries

Consolidated Balance Sheets


(in thousands, except share data)	June 30, 2025		December 31, 2024

ASSETS
Cash and cash equivalents	$	201,080	$	406,600

Investment securities	1,030,981		1,057,006
Loans held for sale	48,783		20,312
Loans held for investment ("LHFI") (net of allowance for credit losses of $45,806 and $38,743)	5,887,333		6,193,053
Mortgage servicing rights	100,493		99,466
Premises and equipment, net	44,348		47,201
Other real estate owned	2,820		2,820
Intangible assets	6,184		7,141
Other assets	287,301		290,099
Total assets	$	7,609,323	$	8,123,698
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits	$	5,857,284	$	6,413,021
Borrowings	1,040,000		1,000,000
Long-term debt	225,316		225,131
Accounts payable and other liabilities	83,742		88,549
Total liabilities	7,206,342		7,726,701
Shareholders' equity:
Common stock, no par value; 160,000,000 shares authorized
18,920,808 and 18,857,565 shares issued and outstanding	234,026		233,185
Retained earnings	242,136		251,013
Accumulated other comprehensive income (loss)	(73,181)		(87,201)
Total shareholders' equity	402,981		396,997
Total liabilities and shareholders' equity	$	7,609,323	$	8,123,698

HomeStreet, Inc. and Subsidiaries

Consolidated Income Statements


	Quarter Ended June 30,				Six Months Ended June 30,
(in thousands, except share and per share data)	2025		2024		2025		2024
Interest income:
Loans	$	71,811	$	87,323	$	145,235	$	173,579
Investment securities	8,596		10,160		17,246		20,874
Cash, Fed Funds and other	2,635		3,640		6,326		9,211
Total interest income	83,042		101,123		168,807		203,664
Interest expense:
Deposits	34,514		43,535		72,751		86,142
Borrowings	14,658		27,887		28,965		55,670
Total interest expense	49,172		71,422		101,716		141,812
Net interest income	33,870		29,701		67,091		61,852
Provision for credit losses	6,000		—		7,000		—
Net interest income after provision for credit losses	27,870		29,701		60,091		61,852
Noninterest income:
Net gain on loan origination and sale activities	3,235		3,036		6,451		5,342
Loan servicing income	7,550		3,410		12,408		6,442
Deposit fees	2,116		2,209		4,187		4,450
Other	2,199		4,572		4,190		6,447
Total noninterest income	15,100		13,227		27,236		22,681
Noninterest expense:
Compensation and benefits	26,014		27,616		52,323		55,627
Information services	7,441		7,580		15,026		14,922
Occupancy	4,868		5,130		9,739		10,564
General, administrative and other	9,428		10,605		19,771		21,982

Total noninterest expense	47,751		50,931		96,859		103,095
Income (loss) before income taxes	(4,781)		(8,003)		(9,532)		(18,562)
Income tax (benefit) expense	(369)		(1,765)		(655)		(4,827)
Net income (loss)	$	(4,412)	$	(6,238)	$	(8,877)	$	(13,735)

Net income (loss) per share:
Basic	$	(0.23)	$	(0.33)	$	(0.47)	$	(0.73)
Diluted	$	(0.23)	$	(0.33)	$	(0.47)	$	(0.73)
Weighted average shares outstanding:
Basic	18,920,808		18,857,566		18,920,808		18,857,218
Diluted	18,920,808		18,857,566		18,920,808		18,857,218

HomeStreet, Inc. and Subsidiaries

Five Quarter Consolidated Income Statements





	Quarter Ended
(in thousands, except share and per share data)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
Interest income:
Loans	$	71,811	$	73,424	$	85,951	$	87,161	$	87,323
Investment securities	8,596		8,650		9,069		9,633		10,160
Cash, Fed Funds and other	2,635		3,691		4,052		3,043		3,640
Total interest income	83,042		85,765		99,072		99,837		101,123
Interest expense:
Deposits	34,514		38,237		44,101		44,009		43,535
Borrowings	14,658		14,307		25,355		27,209		27,887
Total interest expense	49,172		52,544		69,456		71,218		71,422
Net interest income	33,870		33,221		29,616		28,619		29,701
Provision for credit losses	6,000		1,000		—		—		—
Net interest income after provision for credit losses	27,870		32,221		29,616		28,619		29,701
Noninterest income:
Net gain (loss) on loan origination and sale activities	3,235		3,216		(84,992)		2,760		3,036
Loan servicing income	7,550		4,858		2,997		3,058		3,410
Deposit fees	2,116		2,071		2,166		2,222		2,209
Other	2,199		1,991		1,705		3,018		4,572
Total noninterest income (loss)	15,100		12,136		(78,124)		11,058		13,227
Noninterest expense:
Compensation and benefits	26,014		26,309		25,037		26,760		27,616
Information services	7,441		7,585		7,208		7,742		7,580
Occupancy	4,868		4,871		6,181		4,974		5,130
General, administrative and other	9,428		10,343		5,527		9,690		10,605

Total noninterest expense	47,751		49,108		43,953		49,166		50,931
Income (loss) before income taxes	(4,781)		(4,751)		(92,461)		(9,489)		(8,003)
Income tax (benefit) expense	(369)		(286)		30,866		(2,207)		(1,765)
Net income (loss)	$	(4,412)	$	(4,465)	$	(123,327)	$	(7,282)	$	(6,238)

Net income (loss) per share:
Basic	$	(0.23)	$	(0.24)	$	(6.54)	$	(0.39)	$	(0.33)
Diluted	$	(0.23)	$	(0.24)	$	(6.54)	$	(0.39)	$	(0.33)
Weighted average shares outstanding:
Basic	18,920,808		18,920,808		18,857,565		18,857,565		18,857,566
Diluted	18,920,808		18,920,808		18,857,565		18,857,565		18,857,566

HomeStreet, Inc. and Subsidiaries

Average Balances, Yields (Taxable-equivalent basis) and Rates


	Quarter Ended June 30,						Six Months Ended June 30,
Average Balances:	2025			2024			2025			2024
Investment securities	$	1,043,212		$	1,164,144		$	1,049,240		$	1,201,618
Loans	6,035,713			7,454,945			6,116,736			7,457,798
Total interest-earning assets	7,272,471			8,858,433			7,383,957			8,973,319
Total assets	7,644,356			9,272,131			7,757,019			9,387,160
Deposits: Interest-bearing	4,644,881			5,122,284			4,760,601			5,177,460
Deposits: Noninterest-bearing	1,253,539			1,282,447			1,259,586			1,300,878
Borrowings	1,031,292			2,025,415			1,021,258			2,049,971
Long-term debt	225,270			224,903			225,224			224,858
Total interest-bearing liabilities	5,901,443			7,372,602			6,007,083			7,452,289

Average Yield/Rate:
Investment securities	3.62		%	3.80		%	3.61		%	3.78		%
Loans	4.74		%	4.66		%	4.75		%	4.63		%
Total interest earning assets	4.60		%	4.59		%	4.62		%	4.56		%
Deposits: Interest-bearing	2.98		%	3.41		%	3.08		%	3.34		%
Total deposits	2.34		%	2.73		%	2.43		%	2.67		%
Borrowings	4.49		%	4.85		%	4.49		%	4.79		%
Long-term debt	5.21		%	5.49		%	5.22		%	5.50		%
Total interest-bearing liabilities	3.33		%	3.87		%	3.40		%	3.81		%
Net interest rate spread	1.27		%	0.72		%	1.22		%	0.76		%
Net interest margin	1.90		%	1.37		%	1.86		%	1.40		%


(in thousands, except yield/rate)	Quarter Ended
Average Balances:	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Investment securities	$	1,043,212		$	1,055,336		$	1,096,695		$	1,155,284		$	1,164,144
Loans	6,035,713			6,198,659			7,334,221			7,385,970			7,454,945
Total interest earning assets	7,272,471			7,496,682			8,721,422			8,727,590			8,858,433
Total assets	7,644,356			7,870,934			9,127,103			9,138,291			9,272,131
Deposits: Interest-bearing	4,644,881			4,877,607			5,148,727			5,045,396			5,122,284
Deposits: Noninterest-bearing	1,253,539			1,265,701			1,253,516			1,283,502			1,282,447
Borrowings	1,031,292			1,011,111			1,875,616			1,950,109			2,025,415
Long-term debt	225,270			225,178			225,086			224,994			224,903
Total interest-bearing liabilities	5,901,443			6,113,896			7,249,429			7,220,499			7,372,602

Average Yield/Rate:
Investment securities	3.62		%	3.60		%	3.63		%	3.65		%	3.80		%
Loans	4.74		%	4.76		%	4.62		%	4.66		%	4.66		%
Total interest earning assets	4.60		%	4.65		%	4.53		%	4.56		%	4.59		%
Deposits: Interest-bearing	2.98		%	3.18		%	3.40		%	3.47		%	3.41		%
Total deposits	2.34		%	2.52		%	2.74		%	2.76		%	2.73		%
Borrowings	4.49		%	4.50		%	4.66		%	4.85		%	4.85		%
Long-term debt	5.21		%	5.23		%	5.36		%	5.48		%	5.49		%
Total interest-bearing liabilities	3.33		%	3.47		%	3.79		%	3.90		%	3.87		%
Net interest rate spread	1.27		%	1.18		%	0.74		%	0.66		%	0.72		%
Net interest margin	1.90		%	1.82		%	1.38		%	1.33		%	1.37		%

Results of Operations

Second Quarter of 2025 Compared to the First Quarter of 2025

Non-core amounts: For the second quarter and first quarter of 2025 non-core items include $1.7 million and $2.1 million of merger related expenses, respectively.

General: Our net loss and loss before income taxes were $4.4 million and $4.8 million, respectively, in the second quarter of 2025, as compared to $4.5 million and $4.8 million, respectively, in the first quarter of 2025. Our core net loss and core loss before taxes, which excludes merger related expenses, were $3.1 million and $3.0 million, respectively, in the second quarter of 2025, as compared to $2.9 million and $2.7 million, respectively, in the first quarter of 2025. The increase in core loss before income taxes was primarily due to an increase in the provision for credit losses, partially offset by increases in net interest income and noninterest income and lower noninterest expenses.

Income Taxes: Due to our cumulative losses over the three year period ended December 31, 2024, accounting rules required us to provide a valuation allowance for the balance of our deferred tax assets in the fourth quarter of 2024. As a result, we do not expect to recognize income tax expense until the deferred tax assets valuation allowance no longer exists. The $0.4 million and $0.3 million of income tax benefit recognized in the second and first quarters of 2025, respectively, primarily relate to the reversal of the disparate tax effects on our accumulated other comprehensive income ("AOCI") resulting from recording a valuation allowance for the deferred tax assets related to the AOCI in the fourth quarter of 2024.

Our net interest income in the second quarter of 2025 was $0.6 million higher than the first quarter of 2025 due to an increase in our net interest margin from 1.82% to 1.90%. The increase in the net interest margin was due primarily to a 14 basis point decrease in the rates paid on interest-bearing liabilities, partially offset by a 5 basis point decrease in the yield on interest earning assets. The decrease in rates on interest bearing liabilities are primarily due to a decrease in rates paid on certificates of deposits resulting from decreases in market interest rates. The decrease in the yield on interest earning assets is primarily due to a decrease in yields on Fed Funds due to decreases in short term market rates.

The $6.0 million provision for credit losses in the second quarter of 2025 was primarily due to the impact of adverse credit migration of certain multifamily loans. The $1.0 million provision for credit losses in the first quarter of 2025 was primarily due to a $3.3 million increase in specific reserves which was partially offset by lower general reserves resulting in part from lower loan balances.

Noninterest income in the second quarter of 2025 increased from the first quarter of 2025 primarily due to an increase in loan servicing income due to a $4.4 million increase in the value of our single family mortgage servicing rights resulting from higher market valuations of these assets.

Noninterest expenses were $1.4 million lower in the second quarter of 2025 due primarily to a $0.9 million decrease in general, administrative and other expenses which reflects the efforts made to eliminate or defer nonessential expenses.

Six Months Ended of June 30, 2025 Compared to the Six Months Ended of June 30, 2024

Non-core amounts: For the six months ended June 30, 2025, non-core items include $3.8 million of merger related expenses. During the six months ended June 30, 2024, non-core items include $5.0 million of merger related expenses.

Our net loss and loss before income taxes were $8.9 million and $9.5 million, respectively, in the six months ended June 30, 2025, as compared to $13.7 million and $18.6 million, respectively, in the six months ended June 30, 2024. Our core net loss and core loss before income taxes, which exclude the impact of merger related expenses, were $5.9 million and $5.7 million in the six months ended June 30, 2025, as compared to $9.8 million and $13.5 million in the six months ended June 30, 2024. The $7.8 million decrease in core loss before income taxes was primarily due to higher net interest income and noninterest income and lower noninterest expenses, partially offset by an increase in the provision for credit losses.

Due to our cumulative losses over the three year period ended December 31, 2024, accounting rules required us to provide a valuation allowance for the balance of our deferred tax assets in the fourth quarter of 2024. As a result, we do not expect to recognize tax expense until the deferred tax assets valuation allowance no longer exists. The $0.7 million income tax benefit recognized in the six months ended June 30, 2025 primarily relates to the reversal of the disparate tax effects on our AOCI resulting from recording a valuation allowance for the deferred tax assets related to AOCI in the fourth quarter of 2024. Our effective tax rate in the six months ended June 30, 2024 of 26.0% was higher than our statutory rate of 24.6% due to the impact of tax advantaged investments which creates a higher benefit due to our taxable loss.

Net interest income in the six months ended June 30, 2025 increased $5.2 million as compared to the six months ended June 30, 2024 due primarily to an increase in net interest margin from 1.40% in the six months ended June 30, 2024 to 1.86% in the six months ended June 30, 2025. The increase in net interest margin is due to a 41 basis point decrease in the rates paid on interest-bearing liabilities and a 6 basis point increase in the yield on interest earning assets. The increase in yield on interest earning assets was primarily due to the sale of $990 million of lower yielding multifamily loans at the end of the fourth quarter of 2024. The decrease in rates on interest bearing liabilities are primarily due to our paydown at the end of 2024 and beginning of 2025 of higher cost borrowings and brokered certificates of deposit with proceeds from the sale of multifamily loans.

The $7.0 million provision for credit losses recognized during the six months ended June 30, 2025 was primarily due to the impact of adverse credit migration in certain multifamily loans and a $3.3 million increase in specific reserves which was partially offset by lower general reserves resulting in part from lower loan balances. There was no provision for credit losses during the six months ended June 30, 2024, which reflected the stable balance of our loan portfolio, a minimal level of identified credit issues in our loan portfolio and the lack of significant expected credit issues arising in future periods.

Noninterest income in the six months ended June 30, 2025 increased from the six months ended June 30, 2024 primarily due to a $1.1 million increase in gain on loan sales and a $6.0 million increase in loan servicing income, partially offset by a $2.3 million decrease in other noninterest income. The gain on loan sales increased primarily due to an increase in CRE loan sales volume. The increase in loan servicing income is primarily due to a $5.9 million increase in the value of our single family mortgage servicing rights resulting from higher market valuations of these assets. The decrease in other noninterest income is primarily due to higher levels of income realized from our investments in small business investment companies in the first six months of 2024.

The $6.2 million decrease in noninterest expense in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily due to $3.3 million lower compensation and benefit costs, $0.8 million lower occupancy costs and $2.2 million lower general and administrative costs. The decrease in

compensation and benefit costs was primarily due to an 11% decrease in FTE and lower medical costs, which was partially offset by wage increases given in the first quarter of 2025. The decrease in occupancy costs is primarily due to reductions in leased space from branch closures in 2024. The decrease in general and administrative costs was due to lower merger related expenses and reductions in other costs which reflect the efforts made to eliminate or defer nonessential expenses.

Financial Position

During the six months ended June 30, 2025, our total assets decreased $514 million due primarily to a $306 million decrease in loans held for investment and a $206 million decrease in cash. In the six months ended June 30, 2025, total liabilities decreased $520 million due to a $556 million decrease in deposits. The decrease in deposits was primarily due to a $541 million decrease in brokered certificates of deposits.

Loans Held for Investment


(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Commercial real estate ("CRE")
Non-owner occupied CRE	$	508,781	$	545,313	$	570,750	$	590,956	$	612,937
Multifamily	2,895,342		2,934,442		2,992,675		3,950,941		3,935,158
Construction/land development	425,718		436,610		472,740		535,601		530,445
Total	3,829,841		3,916,365		4,036,165		5,077,498		5,078,540
Commercial and industrial loans
Owner occupied CRE	324,299		340,106		361,997		365,138		372,452
Commercial business	285,612		299,001		312,004		345,999		376,711
Total	609,911		639,107		674,001		711,137		749,163
Consumer loans
Single family	1,060,566		1,088,264		1,109,095		1,137,981		1,152,004
Home equity and other	432,821		419,480		412,535		406,638		400,343
Total (1)	1,493,387		1,507,744		1,521,630		1,544,619		1,552,347
Total LHFI	5,933,139		6,063,216		6,231,796		7,333,254		7,380,050
Allowance for credit losses ("ACL")	(45,806)		(39,634)		(38,743)		(38,651)		(39,741)
Total LHFI less ACL	$	5,887,333	$	6,023,582	$	6,193,053	$	7,294,603	$	7,340,309

(1)Includes $1.0 million at June 30, 2025 and $1.2 million at March 31, 2025 and $1.3 million at December 31, 2024, September 30, 2024 and June 30, 2024 of single family loans that are carried at fair value.

Loan Roll-forward


(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Loans - beginning balance	$	6,063,216	$	6,231,796	$	7,333,254	$	7,380,050	$	7,444,729
Originations and advances	226,790		203,589		278,922		279,783		282,460
Transfers (to) from loans held for sale	(1,059)		(479)		1		(378)		(520)
Loan Sold	—		—		(994,243)		—		—
Payoffs, paydowns and other	(355,761)		(371,629)		(385,790)		(324,639)		(346,493)
Charge-offs	(47)		(61)		(348)		(1,562)		(126)
Loans - ending balance	$	5,933,139	$	6,063,216	$	6,231,796	$	7,333,254	$	7,380,050

Loan Originations and Advances


(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

CRE
Non-owner occupied CRE	$	3	$	3,993	$	9	$	9	$	977
Multifamily (1)	26,523		2,103		79,710		48,960		17,495
Construction/land development	133,742		121,765		122,855		160,220		152,681
Total	160,268		127,861		202,574		209,189		171,153
Commercial and industrial loans
Owner occupied CRE	1,675		—		4,040		—		663
Commercial business	17,017		26,224		28,921		12,966		38,990
Total	18,692		26,224		32,961		12,966		39,653
Consumer loans
Single family (2)	4,191		11,221		6,037		15,960		33,359
Home equity and other	43,639		38,283		37,350		41,668		38,295
Total	47,830		49,504		43,387		57,628		71,654
Total loan originations and advances	$	226,790	$	203,589	$	278,922	$	279,783	$	282,460

(1) Includes loans transferred from construction loans to permanent multifamily loans upon completion of construction of $20.0 million, $57.0 million, $47.1 million and $17.5 million for the quarters ended June 30, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

(2) Includes loans transferred from construction loans to permanent single family loans upon completion of construction of $2.0 million, $10.4 million, $4.6 million, $12.9 million, $31.6 million for the quarters ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

Credit Quality

During the second quarter of 2025, our ratios of nonperforming assets to total assets and total loans delinquent over 30 days, including nonaccrual loans, remained at low levels. As of June 30, 2025, our ratio of nonperforming assets to total assets was 0.76% as compared to 0.75% at March 31, 2025, and our ratio of total loans delinquent over 30 days, including nonaccrual loans, to total loans was 1.11% as compared to 1.09% at March 31, 2025. The total balance of past due and nonaccrual loans decreased slightly during the second quarter.

Delinquencies


	Past Due and Still Accruing
(dollars in thousands)	30-59 days			60-89 days			90 days or more (1)			Nonaccrual			Total past due and nonaccrual (2)			Current			Total loans

June 30, 2025
Total loans held for investment	$	4,600		$	2,114		$	3,737		$	55,232		$	65,683		$	5,867,456		$	5,933,139
%	0.08		%	0.04		%	0.06		%	0.93		%	1.11		%	98.89		%	100.00		%

March 31, 2025
Total loans held for investment	$	3,709		$	2,204		$	4,182		$	55,791		$	65,886		$	5,997,330		$	6,063,216
%	0.06		%	0.04		%	0.07		%	0.92		%	1.09		%	98.91		%	100.00		%

(1) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.

(2) Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.4 million and $10.4 million at June 30, 2025 and March 31, 2025, respectively.

Allowance for Credit Losses (roll-forward)


	Quarter Ended
(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Allowance for credit losses
Beginning balance	$	39,634	$	38,743	$	38,651	$	39,741	$	39,677
Provision for credit losses	6,160		888		203		104		128
Recoveries (charge-offs), net	12		3		(111)		(1,194)		(64)
Ending balance	$	45,806	$	39,634	$	38,743	$	38,651	$	39,741

Allowance for unfunded commitments:
Beginning balance	$	1,258	$	1,146	$	1,349	$	1,453	$	1,581
Provision for credit losses	(160)		112		(203)		(104)		(128)
Ending balance	$	1,098	$	1,258	$	1,146	$	1,349	$	1,453

Provision for credit losses:
Allowance for credit losses - loans	$	6,160	$	888	$	203	$	104	$	128
Allowance for unfunded commitments	(160)		112		(203)		(104)		(128)
Total	$	6,000	$	1,000	$	—	$	—	$	—

Allocation of Allowance for Credit Losses by Product Type


	June 30, 2025				March 31, 2025				December 31, 2024
(dollars in thousands)	Balance		Rate (1)		Balance		Rate (1)		Balance		Rate (1)

Non-owner occupied CRE	$	1,791	0.35	%	$	1,658	0.30	%	$	1,739	0.30	%
Multifamily	18,948		0.65	%	13,287		0.45	%	14,909		0.50	%
Construction/land development
Multifamily construction	1,159		2.57	%	468		0.72	%	849		0.86	%
CRE construction	71		0.59	%	73		0.66	%	66		0.60	%
Single family construction	5,200		1.55	%	5,704		1.74	%	6,737		2.10	%
Single family construction to perm	150		0.44	%	140		0.45	%	184		0.44	%
Total CRE	27,319		0.71	%	21,330		0.55	%	24,484		0.61	%
Owner occupied CRE	610		0.19	%	598		0.18	%	576		0.16	%
Commercial business	11,150		3.96	%	10,648		3.61	%	6,886		2.23	%
Total commercial and industrial	11,760		1.94	%	11,246		1.77	%	7,462		1.12	%
Single family	3,602		0.37	%	3,702		0.37	%	3,610		0.35	%
Home equity and other	3,125		0.72	%	3,356		0.80	%	3,187		0.77	%
Total consumer	6,727		0.48	%	7,058		0.50	%	6,797		0.47	%
Total	$	45,806	0.78	%	$	39,634	0.66	%	$	38,743	0.63	%

(1) The ACL rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA

Production Volumes for Sale to the Secondary Market


	Quarter Ended
(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Loan originations
Single family loans	$	114,723	$	83,834	$	110,434	$	125,964	$	101,057
Commercial and industrial and CRE loans	18,861		42,676		84,263		—		19,593
Loans sold
Single family loans	105,197		82,397		127,401		109,091		98,081
Commercial and industrial and CRE loans (1)	12,894		54,195		1,074,405		7,602		13,539
Net gain (loss) on loan origination and sale activities
Single family loans	3,182		2,283		2,090		2,779		2,718
Commercial and industrial and CRE loans (1)	53		933		(87,082)		(19)		318
Total	$	3,235	$	3,216	$	(84,992)	$	2,760	$	3,036

(1) May include loans originated as held for investment.

Loan Servicing Income


	Quarter Ended
(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Single family servicing income, net:
Servicing fees and other	$	3,684	$	3,725	$	3,715	$	3,776	$	3,751
Changes - amortization (1)	(1,598)		(1,582)		(1,690)		(1,669)		(1,713)
Net	2,086		2,143		2,025		2,107		2,038
Risk management, single family MSRs:
Changes in fair value due to assumptions (2)	4,373		271		2,559		(1,963)		529
Net gain (loss) from economic hedging (3)	(118)		1,016		(2,731)		1,418		(509)
Subtotal	4,255		1,287		(172)		(545)		20
Single family servicing income	6,341		3,430		1,853		1,562		2,058
Commercial loan servicing income:
Servicing fees and other	2,664		2,782		2,472		2,919		2,811
Amortization of capitalized MSRs	(1,455)		(1,354)		(1,328)		(1,423)		(1,459)
Total	1,209		1,428		1,144		1,496		1,352
Total loan servicing income	$	7,550	$	4,858	$	2,997	$	3,058	$	3,410

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.

(3)The interest income from US Treasury notes trading securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.5 million for the quarter ended June 30, 2025, $0.4 million for the quarter ended March 31, 2025 and $0.3 million for each of the quarters ended December 31, 2024, September 30, 2024 and June 30, 2024.

Capitalized Mortgage Servicing Rights ("MSRs")


	Quarter Ended
(in thousands)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Single Family MSRs
Beginning balance	$	72,285		$	72,901		$	70,800		$	73,725		$	74,056
Additions and amortization:
Originations	931			695			1,232			707			853

Changes - amortization (1)	(1,598)			(1,582)			(1,690)			(1,669)			(1,713)
Net additions and amortization	(667)			(887)			(458)			(962)			(860)
Change in fair value due to assumptions (2)	4,373			271			2,559			(1,963)			529
Ending balance	$	75,991		$	72,285		$	72,901		$	70,800		$	73,725
Ratio to related loans serviced for others	1.18		%	1.41		%	1.41		%	1.36		%	1.41		%

Multifamily and SBA MSRs
Beginning balance	$	25,674		$	26,565		$	26,322		$	27,583		28,863
Originations	283			463			1,571			162			179
Amortization	(1,455)			(1,354)			(1,328)			(1,423)			(1,459)
Ending balance	$	24,502		$	25,674		$	26,565		$	26,322		$	27,583
Ratio to related loans serviced for others	1.28		%	1.33		%	1.38		%	1.42		%	1.47		%

(1) Represents changes due to collection/realization of expected cash flows and curtailments.

(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.

Deposits


(in thousands)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Deposits by Product:
Noninterest-bearing demand deposits	$	1,203,680	$	1,276,133	$	1,195,781	$	1,253,582	$	1,252,850
Interest-bearing:
Interest-bearing demand deposits	322,151		327,400		323,112		315,711		332,290
Savings	233,074		233,240		229,659		239,060		246,397
Money market	1,363,793		1,437,024		1,396,697		1,445,639		1,502,960
Certificates of deposit:
Brokered deposits	210,067		297,717		751,406		741,051		948,989
Other	2,524,519		2,518,981		2,516,366		2,440,361		2,248,984
Total interest-bearing deposits	4,653,604		4,814,362		5,217,240		5,181,822		5,279,620
Total deposits	$	5,857,284	$	6,090,495	$	6,413,021	$	6,435,404	$	6,532,470


Percent of total deposits:
Noninterest-bearing demand deposits	20.5	%	21.0	%	18.6	%	19.5	%	19.2	%
Interest-bearing:
Interest-bearing demand deposits	5.5	%	5.4	%	5.0	%	4.9	%	5.1	%
Savings	4.0	%	3.8	%	3.6	%	3.7	%	3.8	%
Money market	23.3	%	23.6	%	21.8	%	22.5	%	23.0	%
Certificates of deposit
Brokered deposits	3.6	%	4.9	%	11.7	%	11.5	%	14.5	%
Other	43.1	%	41.3	%	39.3	%	37.9	%	34.4	%
Total interest-bearing deposits	79.5	%	79.0	%	81.4	%	80.5	%	80.8	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance.

In this earnings release, we use the following non-GAAP measures: (i) tangible common equity and tangible assets as we believe this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of capital ratios; (ii) core net income (loss) and effective tax rate on core net income (loss) before taxes, which excludes the loss on the sale of $990 million of multifamily loans in the fourth quarter of 2024 due to the unusual nature and size of the loan sale, the deferred tax asset valuation allowance recognized in the fourth quarter of 2024 because it is a significant unusual item, loss on debt extinguishment in the fourth quarter of 2024 and merger related expenses and the related tax impact as we believe this measure is a better comparison to be used for projecting future results; (iii) core noninterest expenses which exclude merger related expenses as we believe this measure is a better comparison to be used for projecting future noninterest expenses and (iv) an efficiency ratio which is the ratio of noninterest expense to the sum of net interest income and noninterest income, excluding certain items of income or expense considered non-core and excluding taxes incurred and payable to the state of Washington as such taxes are not classified as income taxes and we believe including them in noninterest expense impacts the comparability of our results to those companies whose operations are in states where assessed taxes on business are classified as income taxes.

These supplemental performance measures, as well as additional measures derived from these supplemental performance measures, may vary from, and may not be comparable to, similarly titled measures provided by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirements.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other parties in the evaluation of companies in our industry. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP. In the information below, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP measures used in this earnings release, or the computation of the non-GAAP financial measure.

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures or calculations of the non-GAAP measure:


	As of or for the Quarter Ended															Six Months Ended
(in thousands, except share and per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024

Core net income (loss)
Net income (loss)	$	(4,412)		$	(4,465)		$	(123,327)		$	(7,282)		$	(6,238)		$	(8,877)		$	(13,735)
Adjustments (tax effected)
Loss on loan sale	—			—			67,058			—			—			—			—
Merger related expenses (recoveries)	1,362			1,599			(2,534)			1,283			1,897			2,961			3,925
Loss on debt extinguishment	—			—			353			—			—			—			—

Deferred tax asset allowance	—			—			53,310			—			—			—			—
Total	$	(3,050)		$	(2,866)		$	(5,140)		$	(5,999)		$	(4,341)		$	(5,916)		$	(9,810)

Core net income (loss) per fully diluted share
Fully diluted shares	18,920,808			18,920,808			18,857,565			18,857,565			18,857,566			18,920,808			18,857,218

Computed amount	$	(0.16)		$	(0.15)		$	(0.27)		$	(0.32)		$	(0.23)		$	(0.31)		$	(0.52)

Return on average tangible equity (annualized)
Average shareholders' equity	$	403,629		$	404,800		$	529,299		$	531,608		$	522,904		$	404,211		$	530,266
Less: Average goodwill and other intangibles	(6,494)			(6,976)			(7,542)			(8,176)			(8,794)			(6,734)			(9,099)
Average tangible equity	$	397,135		$	397,824		$	521,757		$	523,432		$	514,110		$	397,477		$	521,167

Net income (loss)	$	(4,412)		$	(4,465)		$	(123,327)		$	(7,282)		$	(6,238)		$	(8,877)		$	(13,735)
Adjustments (tax effected)
Amortization of core deposit intangibles	373			374			487			488			487			747			975
Tangible income applicable to shareholders	$	(4,039)		$	(4,091)		$	(122,840)		$	(6,794)		$	(5,751)		$	(8,130)		$	(12,760)

Ratio	(4.1)		%	(4.2)		%	(93.7)		%	(5.1)		%	(4.5)		%	(4.1)		%	(4.9)		%

Return on average tangible equity (annualized) - Core
Average tangible equity	$	397,135		$	397,824		$	521,757		$	523,432		$	514,110		$	397,477		$	521,167

Core net income (loss) (per above)	$	(3,050)		$	(2,866)		$	(5,140)		$	(5,999)		$	(4,341)		(5,916)			(9,810)
Adjustments (tax effected)
Amortization of core deposit intangibles	373			374			487			488			487			747			975
Tangible income (loss) applicable to shareholders	$	(2,677)		$	(2,492)		$	(4,653)		$	(5,511)		$	(3,854)		$	(5,169)		$	(8,835)

Ratio	(2.7)		%	(2.5)		%	(3.5)		%	(4.2)		%	(3.0)		%	(2.6)		%	(3.4)		%

Return on average equity (annualized) - Core
Average shareholders' equity (per above)	$	403,629		$	404,800		$	529,299		$	531,608		$	522,904		$	404,211		$	530,266
Core net income (loss) (per above)	(3,050)			(2,866)			(5,140)			(5,999)			(4,341)			(5,916)			(9,810)

Ratio	(3.0)		%	(2.9)		%	(3.9)		%	(4.5)		%	(3.3)		%	(3.0)		%	(3.7)		%


	As of or for the Quarter Ended															Six Months Ended
(in thousands, except share and per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024

Efficiency ratio
Noninterest expense
Total	$	47,751		$	49,108		$	43,953		$	49,166		$	50,931		$	96,859		$	103,095
Adjustments:
Merger related expenses or recoveries	(1,746)			(2,050)			3,249			(1,645)			(2,432)			(3,796)			(5,032)
Loss on debt extinguishment	—			—			(452)			—			—			—			—

State of Washington taxes	(382)			(386)			(157)			(438)			(463)			(768)			(915)
Core noninterest expense	$	45,623		$	46,672		$	46,593		$	47,083		$	48,036		$	92,295		$	97,148

Total revenues
Net interest income	$	33,870		$	33,221		$	29,616		$	28,619		$	29,701		67,091			61,852
Noninterest income (loss)	15,100			12,136			(78,124)			11,058			13,227			27,236			22,681
Loss on loan sale	—			—			88,818			—			—			—			—
Adjusted total	$	48,970		$	45,357		$	40,310		$	39,677		$	42,928		$	94,327		$	84,533

Ratio	93.2		%	102.9		%	115.6		%	118.7		%	111.9		%	97.8		%	114.9		%

Return on average assets (annualized) - Core
Average Assets	$	7,644,356		$	7,870,934		$	9,127,103		$	9,138,291		$	9,272,131		$	7,757,019		$	9,387,160
Core net income (loss) (per above)	(3,050)			(2,866)			(5,140)			(5,999)			(4,341)			(5,916)			(9,810)

Ratio	(0.16)		%	(0.15)		%	(0.22)		%	(0.26)		%	(0.19)		%	(0.15)		%	(0.21)		%






Effective tax rate used in computations above (1)	22.0		%	22.0		%	22.0		%	22.0		%	22.0		%	22.0		%	22.0		%

Tangible book value per share
Shareholders' equity	$	402,981		$	400,751		$	396,997		$	538,315		$	520,117		$	402,981		$	520,117
Less: Intangible assets	(6,184)			(6,662)			(7,141)			(7,766)			(8,391)			(6,184)			(8,391)
Tangible shareholders' equity	$	396,797		$	394,089		$	389,856		$	530,549		$	511,726		$	396,797		$	511,726

Common shares outstanding	18,920,808			18,920,808			18,857,565			18,857,565			18,857,565			18,920,808			18,857,565

Computed amount	$	20.97		$	20.83		$	20.67		$	28.13		$	27.14		$	20.97		$	27.14

Tangible common equity to tangible assets
Tangible shareholders' equity (per above)	$	396,797		$	394,089		$	389,856		$	530,549		$	511,726		$	396,797		$	511,726
Tangible assets
Total assets	$	7,609,323		$	7,803,631		$	8,123,698		$	9,201,285		$	9,266,039		$	7,609,323		$	9,266,039
Less: Intangible assets (per above)	(6,184)			(6,662)			(7,141)			(7,766)			(8,391)			(6,184)			(8,391)
Net	$	7,603,139		$	7,796,969		$	8,116,557		$	9,193,519		$	9,257,648		$	7,603,139		$	9,257,648

Ratio	5.2		%	5.1		%	4.8		%	5.8		%	5.5		%	5.2		%	5.5		%

(1) Effective tax rate indicated is used for all adjustments except the loss on loan sale. The gross effective tax rate of 24.5% was used for the loss on loan sale due to the large size of the loss in relation to permanent differences that could impact our gross effective rate.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Generally, forward-looking statements include the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “goal,” “upcoming,” “outlook,” “guidance” or "project" or the negation thereof, or similar expressions, including statements relating to the growth of the Company achievement of profitability and timing of such achievement, timing for the closing of the pending Merger ("defined below") and expectations with respect to income tax expense. In addition, all statements in this report that address and/or include beliefs, assumptions, estimates, projections and expectations of our future performance and financial condition are forward-looking statements within the meaning of the Reform Act. Forward-looking statements involve inherent risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond management’s control. Forward-looking statements are based on the Company’s expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this report as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. For all forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act.

We caution readers that actual results may differ materially from those expressed in or implied by the Company’s forward-looking statements. Rather, more important factors could affect the Company’s future results, including but not limited to the following: (1) our ability to successfully consummate the pending merger (the "Merger") with Mechanics Bank ("Mechanics"), (2) the ability of HomeStreet and Mechanics to obtain required governmental approvals of the Merger, (3) the failure to satisfy the closing conditions in the definitive Agreement and Plan of Merger, dated as of March 28, 2025 (the “Merger Agreement”), or any unexpected delay in closing the Merger, (4) the ability to achieve expected cost savings, synergies and other financial benefits from the Merger within the expected time frames and costs or difficulties relating to integration matters being greater than expected, (5) the diversion of management time from core banking functions due to Merger-related issues; (6) potential difficulty in maintaining relationships with customers, associates or business partners as a result of the announced Merger; (7) changes in the interest rate environment and in expectation of reduction in short-term interest rates; (8) changes in the U.S. and global economies, including business disruptions, reductions in employment, inflationary pressures and an increase in business failures, specifically among our customers, and global trade disputes, including the imposition of tariffs by the U.S. and countermeasures by foreign governments; (9) our ability to control operating costs and expenses; (10) our ability to attract and retain key members of our senior management team; (11) changes in deposit flows, loan demand or real estate values may adversely affect our business; (12) there may be increases in competitive pressure among financial institutions or from non-financial institutions; (13) our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or the Bank; (14) the timing and occurrence or non-occurrence of events may be subject to circumstances beyond our control; (15) our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses and impact the adequacy of our allowance for credit losses; (16) changes in accounting principles, policies or guidelines may cause our financial condition to be perceived or interpreted differently; (17) legislative or regulatory changes that may adversely affect our business or financial condition, including, without limitation, changes in corporate and/or individual income tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (18) general economic conditions, either nationally or locally in some or all areas in which we conduct business, or conditions in the securities markets or banking industry, may be less favorable than what we currently anticipate; (19) challenges our customers may face in meeting current underwriting standards may adversely impact all or a substantial portion of our rate-lock loan activity we recognize; (20) technological changes may be more difficult or more expensive than what we anticipate; (21) a failure in or breach of our operational or security systems or information technology infrastructure, or those of our third-party providers and vendors, including due to cyber-attacks; (22) success or consummation of new business initiatives may be more difficult or expensive than what we anticipate; (23) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; and (24) litigation, investigations or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than what we anticipate. A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives cited in this release, other releases, public statements and/or filings with the Securities and Exchange Commission (“SEC”) is also contained in the “Risk Factors”

sections of the Company's Forms 10-K and 10-Q and in our Current Reports on Form 8-K we file with the SEC. We strongly recommend readers review those disclosures in conjunction with the discussions herein.

All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company.

EX-99.2 3 a992q22025earningsreleases.htm EX-99.2 Q2 2025 SUMMARY EARNINGS RELEASE Document

HomeStreet Reports Second Quarter 2025 Results


Operating Results						Second quarter 2025 compared to first quarter 2025 Reported Results: •Net loss: $4.4 million compared to $4.5 million •Net loss per fully diluted share: $0.23 compared to $0.24 •Noninterest expenses: $47.8 million compared to $49.1 million •Return on Average Equity ("ROAE"): (4.4)% compared to (4.5)% •Return on Average Tangible Equity ("ROATE"): (4.1)% compared to (4.2)% (1) •Return on Average Assets ("ROAA"): (0.23)% compared to (0.23)% •Net interest margin: 1.90% compared to 1.82% •Efficiency ratio: 93.2% compared to 102.9% (1)
						Core Results: (1) •Net loss: $3.1 million compared to $2.9 million •Net loss per fully diluted share: $0.16 compared to $0.15 •Core noninterest expenses: $45.6 million compared to $46.7 million •ROAE: (3.0)% compared to (2.9)% •ROATE: (2.7)% compared to (2.5)% •ROAA: (0.16)% compared to (0.15)%

“Our net interest margin continued to improve in the second quarter due primarily to improving funding costs,” Mr. Mason stated.




Financial Position						As of and for the quarter ended June 30, 2025 •Excluding brokered deposits, total deposits decreased by $146 million •Loans held for investment ("LHFI"), decreased by $136 million •Nonperforming assets to total assets: 0.76% •Delinquencies: 1.11% •Allowance for credit losses to LHFI: 0.78% •Book value per share: $21.30 •Tangible book value per share: $20.97 (2)

(2) Tangible book value per share is a non-GAAP measure. For a reconciliation of this measure to the nearest comparable GAAP measure see "Non-GAAP financial measures" in this earnings release.

About HomeStreet


Contact:						Executive Vice President and Chief Financial Officer
						HomeStreet, Inc.
						John Michel (206) 515-2291
						john.michel@homestreet.com
						http://ir.homestreet.com

Forward-Looking Statements

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance.

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures or calculations of the non-GAAP measure:


	As of or for the Quarter Ended
(in thousands, except share and per share data)	June 30, 2025			March 31, 2025

Core net income (loss)
Net income (loss)	$	(4,412)		$	(4,465)
Adjustments (tax effected)

Merger related expenses (recoveries)	1,362			1,599


Total	$	(3,050)		$	(2,866)
Core net income (loss) per fully diluted share
Fully diluted shares	18,920,808			18,920,808
Computed amount	$	(0.16)		$	(0.15)

Return on average tangible equity (annualized)
Average shareholders' equity	$	403,629		$	404,800
Less: Average intangibles	(6,494)			(6,976)
Average tangible equity	$	397,135		$	397,824

Net income (loss)	$	(4,412)		$	(4,465)
Adjustments (tax effected)
Amortization of core deposit intangibles	373			374
Tangible income applicable to shareholders	$	(4,039)		$	(4,091)

Ratio	(4.1)		%	(4.2)		%

Return on average tangible equity (annualized) - Core
Average tangible equity	$	397,135		$	397,824

Core net income (loss) (per above)	$	(3,050)		$	(2,866)
Adjustments (tax effected)
Amortization of core deposit intangibles	373			374
Tangible income (loss) applicable to shareholders	$	(2,677)		$	(2,492)

Ratio	(2.7)		%	(2.5)		%

Return on average equity (annualized) - Core
Average shareholders' equity (per above)	$	403,629		$	404,800
Core net income (loss) (per above)	(3,050)			(2,866)

Ratio	(3.0)		%	(2.9)		%
Effective tax rate used in computations above (1)	22.0		%	22.0		%

Efficiency ratio
Noninterest expense
Total	$	47,751		$	49,108
Adjustments:
Merger related (expenses) recoveries	(1,746)			(2,050)

State of Washington taxes	(382)			(386)
Core noninterest expense	$	45,623		$	46,672

(in thousands, except share and per share data)	June 30, 2025			March 31, 2025

Total revenues
Net interest income	$	33,870		$	33,221
Noninterest income (loss)	15,100			12,136

Adjusted total	$	48,970		$	45,357
Ratio	93.2		%	102.9		%

Return on average assets (annualized) - Core
Average Assets	$	7,644,356		$	7,870,934
Core net income (loss) (per above)	(3,050)			(2,866)
Ratio	(0.16)		%	(0.15)		%

Tangible book value per share
Shareholders' equity	$	402,981		$	400,751
Less: Intangibles	(6,184)			(6,662)
Tangible shareholders' equity	$	396,797		$	394,089
Common shares outstanding	18,920,808			18,920,808
Computed amount	$	20.97		$	20.83