HomeStreet Reports Third Quarter 2024 Results
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 (Nasdaq: HMST) ha riportato i risultati finanziari per il terzo trimestre del 2024, mostrando una perdita netta di 7,3 milioni di dollari (0,39 dollari per azione), rispetto a una perdita di 6,2 milioni di dollari nel secondo trimestre. Il margine di interesse netto è sceso a 1,33% da 1,37%. I depositi totali, escludendo i depositi intermediati, sono aumentati di 111 milioni di dollari, mentre i prestiti detenuti per investimento sono diminuiti di 46 milioni di dollari. Gli attivi non performanti rispetto agli attivi totali sono aumentati leggermente allo 0,47%. Il valore contabile tangibile per azione dell'azienda era di 28,13 dollari e i depositi non assicurati rappresentavano l'8% dei depositi totali. La direzione prevede una diminuzione dei costi di finanziamento e un miglioramento del margine di interesse nel quarto trimestre a causa delle recenti riduzioni dei tassi a breve termine.
HomeStreet (Nasdaq: HMST) reportó resultados financieros para el tercer trimestre de 2024, mostrando una pérdida neta de 7.3 millones de dólares (0.39 dólares por acción), en comparación con una pérdida de 6.2 millones de dólares en el segundo trimestre. El margen de interés neto disminuyó al 1.33% desde el 1.37%. Los depósitos totales, excluyendo los depósitos intermedios, aumentaron en 111 millones de dólares, mientras que los préstamos mantenidos para inversión disminuyeron en 46 millones de dólares. Los activos no rentables sobre el total de activos aumentaron ligeramente al 0.47%. El valor contable tangible por acción de la empresa fue de 28.13 dólares y los depósitos no asegurados representaron el 8% de los depósitos totales. La dirección espera que los costos de financiamiento disminuyan y que el margen de interés mejore en el cuarto trimestre debido a las recientes disminuciones en las tasas a corto plazo.
홈스트리트 (Nasdaq: HMST)는 2024년 3분기 재무 결과를 발표하였으며, 730만 달러의 순손실 (주당 0.39달러)를 기록하였으며, 이는 2분기의 620만 달러 손실에 비해 증가한 수치입니다. 순이자 마진은 1.33%로 하락하였으며, 이는 1.37%에서 감소한 수치입니다. 중개된 예금을 제외한 총 예금은 1억 1100만 달러 증가하였으며, 투자 목적으로 보유한 대출은 4600만 달러 감소하였습니다. 총 자산 대비 실적 부진 자산 비율은 0.47%로 약간 증가하였습니다. 회사의 주당 실질 장부 가치는 28.13달러였으며, 무보험 예금은 총 예금의 8%를 차지했습니다. 경영진은 단기 금리의 최근 감소로 인해 4분기에는 자금 조달 비용이 감소하고 이자 마진이 개선될 것으로 예상하고 있습니다.
HomeStreet (Nasdaq: HMST) a rapporté des résultats financiers pour le troisième trimestre 2024, montrant une perte nette de 7,3 millions de dollars (0,39 dollar par action), comparé à une perte de 6,2 millions de dollars au deuxième trimestre. La marge d'intérêt nette a diminué à 1,33% contre 1,37%. Les dépôts totaux, excluant les dépôts de courtage, ont augmenté de 111 millions de dollars, tandis que les prêts détenus pour investissement ont diminué de 46 millions de dollars. Les actifs non performants par rapport aux actifs totaux ont légèrement augmenté à 0,47%. La valeur comptable tangible par action de l'entreprise était de 28,13 dollars, et les dépôts non assurés représentaient 8% des dépôts totaux. La direction s'attend à une diminution des coûts de financement et à une amélioration de la marge d'intérêt au quatrième trimestre en raison des récentes baisses des taux à court terme.
HomeStreet (Nasdaq: HMST) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, die einen Nettoverlust von 7,3 Millionen Dollar (0,39 Dollar pro Aktie) zeigen, im Vergleich zu einem Verlust von 6,2 Millionen Dollar im 2. Quartal. Die Nettomarge für Zinsen sank auf 1,33% von 1,37%. Die Gesamteinlagen, ohne die über Broker vermittelten Einlagen, erhöhten sich um 111 Millionen Dollar, während die für Investitionen gehaltenen Kredite um 46 Millionen Dollar zurückgingen. Die notleidenden Vermögenswerte stiegen leicht auf 0,47% des Gesamtvermögens. Der greifbare Buchwert pro Aktie des Unternehmens betrug 28,13 Dollar, und nicht versicherte Einlagen machten 8% der Gesamteinlagen aus. Das Management erwartet eine Senkung der Finanzierungskosten und eine Verbesserung der Zinsmarge im vierten Quartal aufgrund der jüngsten Rückgänge der kurzfristigen Zinssätze.
- Total deposits increased by $111 million (excluding brokered deposits)
- Noninterest expenses decreased by $1.8 million
- Low level of uninsured deposits at 8% of total deposits
- Tangible book value per share maintained stable at $28.13
- Net loss increased to $7.3 million from $6.2 million quarter-over-quarter
- Net interest margin declined to 1.33% from 1.37%
- Loans held for investment decreased by $46 million
- Nonperforming assets increased to 0.47% from 0.42%
- Delinquencies rose to 0.69% from 0.66%
Insights
HomeStreet's Q3 2024 results reveal concerning trends with a widening net loss of
Key concerns include:
- Deteriorating core performance with losses per share increasing to
$0.32 from$0.23 - Slight uptick in nonperforming assets to
0.47% - Continued workforce reduction from 840 to 819 employees
Operating Results |
|
Third quarter 2024 compared to second quarter 2024 Reported Results:
Core Results (1):
|
(1) |
Core loss and core loss per fully diluted share are non-GAAP measures. For a reconciliation of these measures to the nearest comparable GAAP measure see "Non-GAAP financial measures" in this earnings release. |
“As a result of lower noninterest income and lower net interest income, our net loss and core net loss were higher in the third quarter than in the second quarter,” said Mark Mason, Chairman of the Board, President, and Chief Executive Officer. “While our net interest margin decreased slightly during the quarter we did see it stabilize during the latter part of the quarter. With the recent decrease in short term rates, we expect our funding costs to decrease in the fourth quarter and beyond and our interest margin to begin to increase. In the third quarter we reduced the rates offered on our promotional certificates of deposit and are offering our highest rates on shorter duration certificates of deposit in anticipation of continued decreases in the near future of short term interest rates. Our noninterest expenses decreased by
Financial Position |
|
As of and for the quarter ended September 30, 2024
|
(2) |
Total past due and nonaccrual loans as a percentage of total loans held for investment. |
|
(3) |
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. |
"Our quarter-end deposit balances, excluding brokered deposits, increased
"Our loan balances decreased
“With the benefits of lower interest rates, our tangible book value per share has increased due to the increased value of our available for sale securities portfolio,” stated Mark Mason. “In spite of the operating losses we have incurred through the first nine months of 2024, our tangible book value per share increased from
(4) |
Tangible fair 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
HomeStreet, Inc. (Nasdaq: HMST) is a diversified financial services company headquartered in
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. In addition, all statements in this earnings release (including but not limited to those found in the quotes of our Chief Executive Officer) that address and/or include beliefs, assumptions, estimates, projections and expectations of our future performance and financial condition and trends in product mixes and expected impact on costs, as well as the expected impact of decreases in short term interest rates, 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 release 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. The Company does not endorse any projections regarding future performance that may be made by third parties. 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 FirstSun Capital Bancorp ("FirstSun"), (2) the ability of HomeStreet and FirstSun to obtain required governmental approvals of the Merger, (3) the failure to satisfy the closing conditions in the definitive Agreement and Plan of Merger (the “Merger Agreement”), dated as of January 16, 2024, as amended on April 30, 2024, by and between HomeStreet and FirstSun, 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
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.
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 goodwill impairment charges 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; and (iii) tangible fair value per share as we believe this information provides an estimate of what the current value per share is of the Company’s net assets; (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 and excluding taxes incurred and payable to the state of
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 |
||||||
(in thousands, except share and per share data) |
September 30,
|
|
June 30,
|
||||
|
|
|
|
||||
Core net income (loss) |
|
|
|
||||
Net income (loss) |
$ |
(7,282 |
) |
|
$ |
(6,238 |
) |
Adjustments (tax effected) |
|
|
|
||||
Merger related expenses |
|
1,283 |
|
|
|
1,897 |
|
Total |
$ |
(5,999 |
) |
|
$ |
(4,341 |
) |
Core net income (loss) per fully diluted share |
|
|
|||||
Fully diluted shares |
|
18,857,565 |
|
|
|
18,857,566 |
|
Computed amount |
$ |
(0.32 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
||||
Return on average tangible equity (annualized) |
|
|
|
||||
Average shareholders' equity |
$ |
531,608 |
|
|
$ |
522,904 |
|
Less: Average goodwill and other intangibles |
|
(8,176 |
) |
|
|
(8,794 |
) |
Average tangible equity |
$ |
523,432 |
|
|
$ |
514,110 |
|
|
|
|
|
||||
Core net income (loss) (per above) |
$ |
(5,999 |
) |
|
$ |
(4,341 |
) |
Adjustments (tax effected) |
|
|
|
||||
Amortization of core deposit intangibles |
|
488 |
|
|
|
487 |
|
Tangible income (loss) applicable to shareholders |
$ |
(5,511 |
) |
|
$ |
(3,854 |
) |
|
|
|
|
||||
Ratio |
|
(4.2 |
)% |
|
|
(3.0 |
)% |
|
|
|
|
||||
Efficiency ratio |
|
|
|
||||
Noninterest expense |
|
|
|
||||
Total |
$ |
49,166 |
|
|
$ |
50,931 |
|
Adjustments: |
|
|
|
||||
Merger related expenses |
|
(1,645 |
) |
|
|
(2,432 |
) |
|
|
(438 |
) |
|
|
(463 |
) |
Adjusted total |
$ |
47,083 |
|
|
$ |
48,036 |
|
|
|
|
|
||||
Total revenues |
|
|
|
||||
Net interest income |
$ |
28,619 |
|
|
$ |
29,701 |
|
Noninterest income |
|
11,058 |
|
|
|
13,227 |
|
Adjusted total |
$ |
39,677 |
|
|
$ |
42,928 |
|
Ratio |
|
118.7 |
% |
|
|
111.9 |
% |
|
|
|
|
||||
Return on average assets (annualized) - Core |
|||||||
Average Assets |
$ |
9,138,291 |
|
|
$ |
9,272,131 |
|
Core net income (loss) (per above) |
|
(5,999 |
) |
|
|
(4,341 |
) |
Ratio |
|
(0.26 |
)% |
|
|
(0.19 |
)% |
|
|
|
|
||||
Tangible book value per share |
|
|
|
||||
Shareholders' equity |
$ |
538,315 |
|
|
$ |
520,117 |
|
Less: Goodwill and other intangibles |
|
(7,766 |
) |
|
|
(8,391 |
) |
Tangible shareholders' equity |
$ |
530,549 |
|
|
$ |
511,726 |
|
Common shares outstanding |
|
18,857,565 |
|
|
|
18,857,565 |
|
Computed amount |
$ |
28.13 |
|
|
$ |
27.14 |
|
|
|
As of or for the Quarter Ended September 30, 2024 |
||||||||||||||
(in thousands, except share and per share data) |
|
Carrying Value |
|
Fair Value |
|
Change in Value |
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Tangible Fair Value per Share |
|
|||||||||||||||
Tangible shareholder's equity (see above) |
|
|
|
|
|
|
$ |
530,549 |
|
|||||||
Assets: |
|
|
|
|
|
|
|
|||||||||
Investment securities HTM |
|
$ |
2,318 |
|
$ |
2,296 |
|
$ |
(22 |
) |
|
|||||
Loans held for investment |
|
|
7,293,274 |
|
|
|
7,019,085 |
|
|
|
(274,189 |
) |
|
|||
MSRs - multifamily and SBA |
|
|
26,322 |
|
|
|
31,970 |
|
|
|
5,648 |
|
|
|||
Liabilities: |
|
|
|
|
|
|
|
|||||||||
Certificates of deposit |
|
|
3,181,412 |
|
|
|
3,180,057 |
|
|
|
1,355 |
|
|
|||
Borrowings |
|
|
1,896,000 |
|
|
|
1,909,471 |
|
|
|
(13,471 |
) |
|
|||
Long term debt |
|
|
225,039 |
|
|
|
184,609 |
|
|
|
40,430 |
|
|
|||
Total change in value |
|
|
|
|
|
|
|
(240,249 |
) |
|||||||
Deferred taxes at |
|
|
|
|
|
|
|
58,861 |
|
|||||||
|
|
|
|
|
|
|
$ |
349,161 |
|
|||||||
Shares outstanding |
|
|
|
|
|
|
|
18,857,565 |
|
|||||||
Computed amount |
|
|
|
|
|
|
$ |
18.52 |
|
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241029225501/en/
Executive Vice President and Chief Financial Officer
HomeStreet, Inc.
John Michel (206) 515-2291
john.michel@homestreet.com
http://ir.homestreet.com
Source: HomeStreet, Inc.
FAQ
What was HomeStreet's (HMST) net loss in Q3 2024?
How much did HomeStreet's (HMST) deposits grow in Q3 2024?
What was HomeStreet's (HMST) net interest margin in Q3 2024?
What percentage of HomeStreet's (HMST) deposits were uninsured in Q3 2024?
