Homestreet Stock Price, News & Analysis

Mechanics Bank and HomeStreet Inc. (NASDAQ: HMST) have announced a strategic merger agreement to create the premier publicly-traded West Coast bank. The all-stock transaction values HomeStreet at $300 million and Mechanics Bank at $3.3 billion.

The merger will combine HomeStreet's 56 branches across Washington, Oregon, Southern California, and Hawaii with Mechanics Bank's 112 California branches, creating a network of 168 branches with $23 billion in assets. Post-merger, existing HomeStreet shareholders will own approximately 8.3% of the combined company, while Mechanics Bank shareholders will hold 91.7%, with Ford Financial Fund controlling about 74.3%.

The combined entity will operate as Mechanics Bancorp, remaining publicly traded. The merger is expected to close in the third quarter of 2025, subject to regulatory and shareholder approvals.

HomeStreet Inc (Nasdaq: HMST) reported financial results for Q4 and full-year 2024. The company implemented a new strategic plan after merger termination, including selling $990 million of multifamily loans with 3.30% weighted average interest rate. The proceeds were used to pay off Federal Home Loan Bank advances and brokered deposits with 4.65% weighted average interest rate.

Q4 2024 reported a net loss of $123.3 million ($6.54 per share), compared to Q3 2024's loss of $7.3 million. Full-year 2024 showed a net loss of $144.3 million versus $27.5 million in 2023. The company recorded a $53 million deferred tax allowance in Q4. Net interest margin increased to 1.38% from 1.33% in Q3. The company expects to return to profitability in first half of 2025.

Total deposits decreased by $33 million, with uninsured deposits at $581 million (9% of total). Loans held for investment decreased by $1.1 billion. Tangible book value per share decreased to $20.67.

HomeStreet (Nasdaq: HMST) has scheduled its fourth quarter 2024 analyst earnings conference call for Tuesday, January 28, 2025, at 1:00 p.m. ET. Chairman, President and CEO Mark K. Mason and Executive Vice President and CFO John M. Michel will lead the discussion, covering Q4 2024 results and recent company updates.

Participants can join through the online registration link or dial 1-833-470-1428 using Access Code 651499. A rebroadcast will be available approximately one hour after the call by dialing 1-866-813-9403 with passcode 729493. The earnings information will be posted on the company's website after market close on Monday, January 27, 2025.

HomeStreet Bank has completed the sale of $990 million in multifamily commercial real estate loans, retaining the servicing rights. The transaction was executed at approximately 92% of the loans' principal balance, including the value of retained servicing. The company utilized nearly all proceeds from the sale to reduce its Federal Home Loan Bank borrowings.

HomeStreet Bank (Nasdaq:HMST) has announced an agreement to sell $990 million of multifamily commercial real estate loans to Bank of America. The transaction, expected to close before December 31, 2024, will be executed on a servicing retained basis at 92% of the loans' principal balance. The sale is part of a new strategic plan aimed at returning the company to profitability in early 2025. The proceeds will be used to pay down Federal Home Loan Bank advances and brokered deposits, which currently carry higher interest rates than core deposits.

FirstSun Capital Bancorp and HomeStreet, Inc. announced that regulatory approvals necessary for their planned merger have not been obtained, with regulators requesting FirstSun and Sunflower Bank to withdraw their merger applications. The companies are now discussing alternative regulatory structures for the merger, while also considering terms for potential termination if no alternative is feasible. HomeStreet confirmed no specific regulatory concerns were related to their operations. FirstSun cited a more challenging external environment for bank mergers as a contributing factor, particularly following industry events earlier this year.

HomeStreet announced it will host its third quarter 2024 earnings conference call on Wednesday, October 30, 2024, at 1:00 p.m. ET. Chairman, President and CEO Mark K. Mason and Executive Vice President and CFO John M. Michel will discuss Q3 2024 results and provide updates on recent events, followed by an analyst Q&A session. The earnings information will be available on the company's website after market close on Tuesday, October 29, 2024. Participants can register in advance online or join by dialing 1-646-307-1963 or 1-800-715-9871 using Access Code 7202613.

HomeStreet (Nasdaq: HMST) reported financial results for Q3 2024, showing a net loss of $7.3 million ($0.39 per share), compared to a $6.2 million loss in Q2. The net interest margin declined to 1.33% from 1.37%. Total deposits, excluding brokered deposits, increased by $111 million, while loans held for investment decreased by $46 million. Nonperforming assets to total assets rose slightly to 0.47%. The company's tangible book value per share was $28.13, and uninsured deposits represented 8% of total deposits. Management expects funding costs to decrease and interest margin to improve in Q4 due to recent decreases in short-term rates.

HomeStreet Inc. (HMST) reported its Q2 2024 financial results, showing a net loss of $6.2 million ($0.33 per share), an improvement from Q1's $7.5 million loss. The core net loss was $4.3 million ($0.23 per share). Key highlights include:

- Net interest margin declined to 1.37% due to increased funding costs
- Noninterest income increased by $3.8 million
- Noninterest expenses decreased by $1.2 million
- Full-time equivalent employees reduced to 840 from 858
- Total deposits (excluding brokered) increased by $13 million
- Loans held for investment decreased by $65 million
- Nonperforming assets to total assets improved to 0.42% from 0.56%
- Delinquencies decreased to 0.66% from 0.82%

The company noted stabilizing deposit trends and strong asset quality, with no significant credit issues identified in the loan portfolio.