Mechanics Bancorp reported a strong Q4 2025 with materially higher net income, supported by expanded net interest margin, a full quarter impact of the HomeStreet merger, and disciplined cost management.

HomeStreet, Inc. reported a net loss of $4.5 million for the first quarter of 2025, a substantial improvement from the $123.3 million net loss in the fourth quarter of 2024. The company's core net loss decreased by 44% quarter-over-quarter, and the net interest margin improved from 1.38% to 1.82%. Total deposits, excluding brokered deposits, increased by $131 million, and loans held for investment decreased by $169 million, enhancing funding and liquidity.

HomeStreet, Inc. announced a net loss of $7.3 million for the third quarter of 2024, an increase from the $6.2 million net loss in the previous quarter. This was primarily driven by lower noninterest income and net interest income. Despite the slight decrease in net interest margin to 1.33%, the company anticipates funding costs to decrease and interest margin to improve in the fourth quarter due to recent short-term rate decreases. Total assets decreased by $191 million, and total deposits decreased by $328 million during the nine months ended September 30, 2024, partially offset by increased borrowings. Credit quality metrics, including nonperforming assets and delinquencies, remained low.