HomeStreet, Inc. reported a net loss of $123.3 million, or $6.54 per share, for the fourth quarter ended December 31, 2024. This loss included an $88.8 million pretax loss on the multifamily loan sale and a $53.3 million deferred tax asset valuation allowance. On a core basis, the net loss was $5.1 million, or $0.27 per share, an improvement from the prior quarter.
Net interest income increased by $1 million from the third quarter, with the net interest margin expanding to 1.38% from 1.33%. Noninterest expenses decreased by $5.2 million, driven by a 3% reduction in full-time equivalent employees to 776 by December 2024. Loans held for investment decreased by $1.1 billion due to the loan sale, improving liquidity and reducing the loan-to-deposit ratio to 97.4%.
Cash and securities balances stood at $1.5 billion, representing 18% of total assets, at year-end 2024, with uninsured deposits at 9% of total deposits. Nonperforming assets were 71 basis points of total assets, and total loans delinquent over 30 days were 106 basis points, with a syndicated commercial loan downgraded in the quarter. Management anticipates a return to profitability in the first half of 2025 and continuous earnings growth, expecting no income tax expense for several years due to the deferred tax asset allowance.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.