HomeStreet, Inc. reported a net loss of $4.4 million for the second quarter of 2025, a slight improvement from a loss of $6.2 million in the same quarter of the previous year. For the first half of 2025, the company recorded a net loss of $8.9 million, compared to a loss of $13.7 million in the first half of 2024. The company's total interest income decreased to $83.0 million in the second quarter, down from $101.1 million a year earlier, primarily due to lower loan volumes and interest rates. However, net interest income increased to $33.9 million, up from $29.7 million in the prior year, driven by a reduction in interest expenses.
Total assets for HomeStreet decreased to $7.6 billion as of June 30, 2025, down from $8.1 billion at the end of 2024. This decline was largely attributed to a $306 million decrease in loans held for investment, which fell to $5.9 billion. The company's deposits also saw a significant reduction, dropping to $5.9 billion from $6.4 billion, primarily due to a decrease in brokered certificates of deposit. The allowance for credit losses increased to $45.8 million, reflecting adverse credit migration in certain multifamily loans.
Strategically, HomeStreet is in the process of merging with Mechanics Bank, a move expected to close in the third quarter of 2025. This merger is anticipated to enhance the company's market position and operational capabilities. Additionally, on July 16, 2025, HomeStreet announced the sale of its Ginnie Mae mortgage servicing portfolio, valued at $15.7 million, which is expected to streamline operations and improve financial performance.
Operationally, the company reported a total of 750 full-time equivalent employees as of June 30, 2025, a decrease from 766 at the end of 2024. The company’s efficiency ratio improved to 93.2% in the second quarter, down from 102.9% in the previous quarter, indicating better cost management. Looking ahead, HomeStreet anticipates a return to profitability in 2025, supported by expected reductions in short-term interest rates and effective management of non-interest expenses.
About HomeStreet, Inc.
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