HomeStreet, Inc. reported a net loss of $7.3 million for the third quarter of 2024, a significant decline from a net income of $2.3 million in the same quarter of 2023. For the nine months ended September 30, 2024, the company recorded a net loss of $21 million, an improvement from a loss of $24.1 million in the prior year. The basic and diluted earnings per share for Q3 2024 were both $(0.39), compared to $0.12 in Q3 2023.

Total revenues for the third quarter of 2024 were $39.7 million, down from $42.9 million in the previous quarter and $54.5 million in Q3 2023. The decline in revenue was primarily attributed to lower net interest income, which fell to $28.6 million from $38.9 million in Q3 2023. The net interest margin decreased to 1.33% from 1.37% in the previous quarter, reflecting the impact of rising interest rates on loan demand, particularly in single-family mortgages.

Noninterest income for the third quarter of 2024 was $11.1 million, a decrease from $13.2 million in the previous quarter but an increase from $10.5 million in Q3 2023. The increase was driven by higher gains on loan origination and sale activities, which amounted to $2.8 million, up from $2.3 million in the same quarter of 2023.

As of September 30, 2024, HomeStreet's total assets were $9.2 billion, down from $9.4 billion at the end of 2023. Total liabilities also decreased to $8.7 billion, primarily due to a $328 million drop in deposits, which was partially offset by an increase in borrowings. The company’s cash and cash equivalents stood at $205.9 million, down from $215.7 million at the end of 2023.

In terms of strategic developments, HomeStreet completed a branch acquisition in February 2023, adding three branches in Southern California. Additionally, the company entered into an amended merger agreement with FirstSun Capital Bancorp in April 2024, although regulatory approvals for the merger had not been obtained as of late October 2024.

The company’s allowance for credit losses (ACL) for loans held for investment (LHFI) was stable, with no provisions recognized during the third quarter of 2024. The total nonperforming assets increased slightly to $43.3 million, compared to $42.6 million at the end of 2023.

HomeStreet's capital ratios remained strong, with a common equity Tier 1 capital ratio of 9.50% as of September 30, 2024, exceeding regulatory requirements. The company continues to navigate a challenging banking environment characterized by increased competition for liquidity and rising operational costs.