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.
Net loss significantly decreased to $4.5 million in Q1 2025 from $123.3 million in Q4 2024.
Core net loss improved by 44% quarter-over-quarter, reaching $2.9 million.
Net interest margin increased to 1.82% in Q1 2025 from 1.38% in Q4 2024.
Total deposits (excluding brokered) grew by $131 million, and loans held for investment decreased by $169 million, strengthening liquidity.
HomeStreet anticipates a return to profitability during 2025, driven by continued growth in earnings from scheduled repricing of loans, reductions in higher cost borrowings, and effective noninterest expense management. The company does not expect to recognize income tax expense for the next few years due to a deferred tax asset valuation allowance.
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