# EDGAR Filing Document

**Accession Number:** 0001518715
**File Stem:** 0001518715-25-000105
**Filing Date:** 2025-7
**Character Count:** 109898
**Document Hash:** 22cff505d9e39320fb426ef2838b700e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001518715-25-000105.hdr.sgml**: 20250728

**ACCESSION NUMBER**: 0001518715-25-000105

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250728

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250728

**DATE AS OF CHANGE**: 20250728

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HomeStreet, Inc.
- **CENTRAL INDEX KEY:** 0001518715
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 910186600
- **STATE OF INCORPORATION:** WA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35424
- **FILM NUMBER:** 251155647

**BUSINESS ADDRESS:**
- **STREET 1:** 601 UNION STREET
- **STREET 2:** SUITE 2000
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98101
- **BUSINESS PHONE:** 206-623-3050

**MAIL ADDRESS:**
- **STREET 1:** 601 UNION STREET
- **STREET 2:** SUITE 2000
- **CITY:** SEATTLE
- **STATE:** WA
- **ZIP:** 98101

?xml version='1.0' encoding='ASCII'? hmst-20250728

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of**

**The Securities Exchange Act of 1934**

**Date of Report (Date of Earliest Event Reported): July 28, 2025** 

**HOMESTREET, INC.** 

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Washington** | **001-35424** | **91-0186600** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

**601 Union Street, Ste. 2000, Seattle, WA 98101** 

**(Address of principal executive offices) (Zip Code)**

**(206) 623-3050** 

**(Registrant's telephone number, including area code)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| <u>Common Stock, No Par Value</u> | <u>HMST</u> | <u>Nasdaq Global Select Market</u> |

---

 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Act or Rule 12b-2 of the Exchange Act.

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 12(a) of the Exchange Act.

------

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition** |

---

On July 28, 2025, HomeStreet, Inc. issued a press release reporting results of operations for the second quarter of 2025. A copy of the earnings release is attached as Exhibit 99.1. A copy of the press release reporting summary results of operations is attached as Exhibit 99.2. This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits** |
| (d) | Exhibits. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 99.1 | <u>[Earnings Release issued by HomeStreet, Inc. dated](a2q2025earningsrelease.htm)[July](a2q2025earningsrelease.htm)[28, 2025 regarding its results of operations for the](a2q2025earningsrelease.htm)[second](a2q2025earningsrelease.htm)[quarter of 2025.](a2q2025earningsrelease.htm)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 99.2 | <u>[Summary Press Release issued by HomeStreet, Inc. dated](a992q22025earningsreleases.htm)[July](a992q22025earningsreleases.htm)[28, 2025 regarding its results of operations for the](a992q22025earningsreleases.htm)[second](a992q22025earningsreleases.htm)[quarter of 2025.](a992q22025earningsreleases.htm)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit 104 | Cover Page Interactive Data File (embedded within with Inline XBRL) |

---

------

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 28, 2025

---

| | |
|:---|:---|
| **HomeStreet, Inc.** | **HomeStreet, Inc.** |
| By: | /s/ John M. Michel |
|  | John M. Michel |
|  | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

![image2.jpg](image2.jpg)

**HomeStreet Reports Second Quarter 2025 Results** 

SEATTLE –July 28, 2025 – (BUSINESS WIRE) – HomeStreet, Inc. (Nasdaq: HMST) (including its consolidated subsidiaries, the "Company", "HomeStreet" or "we"), the parent company of HomeStreet Bank (the "Bank"), today announced the financial results for the quarter ended June 30, 2025. As we present non-GAAP measures in this release, the reader should refer to the non-GAAP reconciliations set forth below under the section "Non-GAAP Financial Measures."

"While we continue to work on the merger with Mechanics Bank, which is still expected to close in the third quarter of 2025, we are improving our operating metrics. In the second quarter we increased our net interest margin and continued to lower noninterest expenses," said Mark Mason, Chairman of the Board, President, and Chief Executive Officer. "Our total and core net income for the second quarter of 2025 were consistent with our results for the first quarter of 2025 as continued improvements in our net interest margin, a $3.0 million increase in noninterest income and a $1.4 million decrease in noninterest expenses were offset by a $5.0 million increase in the provision for credit losses. The Bank, on a standalone basis, continued to be profitable in the second quarter of 2025 with net income of $0.7 million."

"We are projecting a return to core profitability in the fourth quarter of this year, and given the scheduled repricing of our remaining multifamily and other commercial real estate loans, future anticipated reductions in higher cost borrowings, the repricing of our term deposits to lower rates and continued effective noninterest expense management, we anticipate continuous growth in earnings for the foreseeable future," continued Mr. Mason. "Additionally, as a result of the deferred tax asset valuation allowance recorded in the fourth quarter of 2024, we do not expect to recognize any income tax expense on our earnings for the next few years."

---

| | |
|:---|:---|
| **Operating Results** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Second quarter 2025 compared to first quarter 2025**<br>**Reported Results:**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net loss: $4.4 million compared to $4.5 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss per fully diluted share: $0.23 compared to $0.24<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Noninterest expenses: $47.8 million compared to $49.1 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on Average Equity ("ROAE"): (4.4)% compared to (4.5)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on Average Tangible Equity ("ROATE"): (4.1)% compared to (4.2)% <sup>(1)</sup><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on Average Assets ("ROAA"): (0.23)% compared to (0.23)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest margin: 1.90% compared to 1.82% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Efficiency ratio: 93.2% compared to 102.9% <sup>(1)</sup>  |
| **Operating Results** | **Core Results:** <sup>(1)</sup><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss: $3.1 million compared to $2.9 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss per fully diluted share: $0.16 compared to $0.15<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Core noninterest expenses: $45.6 million compared to $46.7 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ROAE: (3.0)% compared to (2.9)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ROATE: (2.7)% compared to (2.5)% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ROAA: (0.16)% compared to (0.15)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |

---

(1) ROATE, the efficiency ratio, core net income (loss), core net income (loss) per fully diluted share, core noninterest expense, core ROAE, core ROATE and core ROAA are non-GAAP measures. For a reconciliation of these measures to the nearest comparable GAAP measure or a computation of the measure see "Non-GAAP financial measures" in this earnings release.

------

"Our net interest margin continued to improve in the second quarter due primarily to improving funding costs," Mr. Mason stated.

"The decrease in our core noninterest expenses reflects our efforts to eliminate or defer nonessential expenses and the continued decline in our full time equivalent employees which decreased from 766 in the first quarter to 750 in the second quarter."

---

| | |
|:---|:---|
| **Financial Position** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**As of and for the quarter ended June 30, 2025**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Excluding brokered deposits, total deposits decreased by $146 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans held for investment ("LHFI"), decreased by $136 million <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nonperforming assets to total assets: 0.76%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delinquencies: 1.11% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allowance for credit losses to LHFI: 0.78% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Book value per share: $21.30<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tangible book value per share: $20.97 <sup>(2)</sup>  |
| **Financial Position** |  |

---

(2) Tangible book value per share is a non-GAAP measure. For a reconciliation of this measure to the nearest comparable GAAP measure see "Non-GAAP financial measures" in this earnings release.

"The increase in our allowance for credit losses was due to the adverse credit migration of certain multifamily loans," added Mr. Mason. "The downgrading of the risk rating of these loans is the result of our annual analysis of the prior year cash flow and current collateral coverage of portfolio commercial real estate loans. These loans continue to perform with guarantor support and our overall credit metrics remained stable with the total amount of delinquent loans and nonperforming assets decreasing slightly during the second quarter."

------

**About HomeStreet** 

HomeStreet, Inc. (Nasdaq: HMST) is a diversified financial services company headquartered in Seattle, Washington, serving consumers and businesses in the Western United States and Hawaii. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. Its principal subsidiary is HomeStreet Bank. Certain information about our business can be found on our investor relations web site, located at http://ir.homestreet.com. HomeStreet Bank is a member of the FDIC and is an Equal Housing Lender.

---

| | |
|:---|:---|
| Contact: | **Executive Vice President and Chief Financial Officer** |
|  | HomeStreet, Inc. |
|  | John Michel (206) 515-2291 |
|  | john.michel@homestreet.com |
|  | <u>http://ir.homestreet.com</u> |

---

------

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Inc. and Subsidiaries**

**Summary Financial Data**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** |
| (in thousands, except per share data and FTE data) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Select Income Statement Data: | Select Income Statement Data: |  |  |  |  |
| Net interest income | $33870 | $33221 | $29616 | $28619 | $29701 |
| Provision for credit losses | 6000 | 1000 |  |  |  |
| Noninterest income (loss) | 15100 | 12136 | (78124) | 11058 | 13227 |
| Noninterest expense | 47751 | 49108 | 43953 | 49166 | 50931 |
| Income (loss) before income taxes | (4781) | (4751) | (92461) | (9489) | (8003) |
| Net income (loss) | (4412) | (4465) | (123327) | (7282) | (6238) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) per fully diluted share | (0.23) | (0.24) | (6.54) | (0.39) | (0.33) |
| Core net income (loss): <sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | (3050) | (2866) | (5140) | (5999) | (4341) |
| &nbsp;&nbsp;&nbsp;&nbsp;Core net income (loss) per fully diluted share  | (0.16) | (0.15) | (0.27) | (0.32) | (0.23) |
| Select Performance Ratios: | Select Performance Ratios: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;ROAE - annualized |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income (loss) | (4.4)% | (4.5)% | (92.7)% | (5.4)% | (4.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core <sup>(1)</sup> | (3.0)% | (2.9)% | (3.9)% | (4.5)% | (3.3)% |
| &nbsp;&nbsp;ROATE - annualized <sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income (loss) | (4.1)% | (4.2)% | (93.7)% | (5.1)% | (4.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core <sup>(1)</sup> | (2.7)% | (2.5)% | (3.5)% | (4.2)% | (3.0)% |
| &nbsp;&nbsp;&nbsp;ROAA - annualized |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | (0.23)% | (0.23)% | (5.38)% | (0.32)% | (0.27)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core <sup>(1)</sup> | (0.16)% | (0.15)% | (0.22)% | (0.26)% | (0.19)% |
| &nbsp;&nbsp;Efficiency ratio <sup>(1)</sup> | 93.2% | 102.9% | 115.6% | 118.7% | 111.9% |
| &nbsp;&nbsp;&nbsp;Net interest margin | 1.90% | 1.82% | 1.38% | 1.33% | 1.37% |
| Other data: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Full-time equivalent employees ("FTE") | 750 | 766 | 792 | 819 | 840 |

---

(1)ROATE, core net income (loss), core net income (loss) per fully diluted share, core ROAE, core ROATE, core ROAA and the efficiency ratio are non-GAAP financial measures. For a reconciliation of these measures to the nearest comparable GAAP financial measure or the computation of the measure see "Non-GAAP Financial Measures" in this earnings release.

------

**HomeStreet, Inc. and Subsidiaries**

**Summary Financial Data (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** | **As of** | **As of** |
| (in thousands, except share and per share data) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Select Balance Sheet Data: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans held for sale | $48783 | $34734 | $20312 | $38863 | $29781 |
| &nbsp;&nbsp;&nbsp;Loans held for investment, net | 5887333 | 6023582 | 6193053 | 7294603 | 7340309 |
| &nbsp;&nbsp;&nbsp;Allowance for credit losses ("ACL") | 45806 | 39634 | 38743 | 38651 | 39741 |
| &nbsp;&nbsp;&nbsp;Investment securities | 1030981 | 1055318 | 1057006 | 1158035 | 1160595 |
| &nbsp;&nbsp;&nbsp;Total assets | 7609323 | 7803631 | 8123698 | 9201285 | 9266039 |
| &nbsp;&nbsp;&nbsp;Deposits | 5857284 | 6090495 | 6413021 | 6435404 | 6532470 |
| &nbsp;&nbsp;&nbsp;Borrowings | 1040000 | 1000000 | 1000000 | 1896000 | 1886000 |
| &nbsp;&nbsp;&nbsp;Long-term debt | 225316 | 225223 | 225131 | 225039 | 224948 |
| &nbsp;&nbsp;&nbsp;Total shareholders' equity | 402981 | 400751 | 396997 | 538315 | 520117 |
| Other Data: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Book value per share | $21.30 | $21.18 | $21.05 | $28.55 | $27.58 |
| &nbsp;&nbsp;&nbsp;Tangible book value per share <sup>(1)</sup> | $20.97 | $20.83 | $20.67 | $28.13 | $27.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity to total assets | 5.3% | 5.1% | 4.9% | 5.9% | 5.6% |
| &nbsp;&nbsp;&nbsp;Tangible common equity to tangible assets <sup>(1)</sup> | 5.2% | 5.1% | 4.8% | 5.8% | 5.5% |
| &nbsp;&nbsp;&nbsp;Shares outstanding at end of period | 18920808 | 18920808 | 18857565 | 18857565 | 18857565 |
| &nbsp;&nbsp;&nbsp;Loans to deposit ratio (Bank) | 101.1% | 99.3% | 96.8% | 113.5% | 112.6% |
| Credit Quality: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Delinquencies<sup>(2)</sup> | 1.11% | 1.09% | 1.06% | 0.69% | 0.66% |
| &nbsp;&nbsp;&nbsp;ACL to total loans <sup>(3)</sup> | 0.78% | 0.66% | 0.63% | 0.53% | 0.55% |
| &nbsp;&nbsp;&nbsp;&nbsp;ACL to nonaccrual loans | 82.9% | 71.0% | 70.4% | 95.9% | 109.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonaccrual loans to total loans | 0.93% | 0.92% | 0.88% | 0.55% | 0.49% |
| &nbsp;&nbsp;&nbsp;Nonperforming assets to total assets | 0.76% | 0.75% | 0.71% | 0.47% | 0.42% |
| &nbsp;&nbsp;&nbsp;Nonperforming assets  | $58052 | $58611 | $57814 | $43320 | $39374 |
| Regulatory Capital Ratios:  |  |  |  |  |  |
| &nbsp;&nbsp;Bank |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 leverage | 8.74% | 8.46% | 7.30% | 8.59% | 8.44% |
| &nbsp;&nbsp;&nbsp;Total risk-based capital | 13.66% | 13.40% | 13.02% | 13.41% | 13.29% |
| &nbsp;&nbsp;&nbsp;Common equity Tier 1 capital | 12.76% | 12.61% | 12.27% | 12.75% | 12.62% |
| &nbsp;&nbsp;Company |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 leverage | 6.78% | 6.62% | 5.77% | 7.04% | 6.98% |
| &nbsp;&nbsp;&nbsp;Total risk-based capital | 12.65% | 12.48% | 12.23% | 12.70% | 12.67% |
| &nbsp;&nbsp;&nbsp;Common equity Tier 1 capital | 8.78% | 8.76% | 8.62% | 9.50% | 9.49% |

---

(1)Tangible book value per share and tangible common equity to tangible assets are non-GAAP financial measures. For a reconciliation to the nearest comparable GAAP financial measure, see "Non-GAAP Financial Measures" in this earnings release.

(2)Total past due and nonaccrual loans as a percentage of total loans held for investment.

(3)This ratio excludes balances insured by the FHA or guaranteed by the VA or SBA.

------

**HomeStreet, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
| (in thousands, except share data) | **June 30, 2025** | **December 31, 2024** |
| ASSETS |  |  |
| Cash and cash equivalents | $201080 | $406600 |
| Investment securities | 1030981 | 1057006 |
| Loans held for sale | 48783 | 20312 |
| Loans held for investment ("LHFI") (net of allowance for credit losses of $45,806 and $38,743) | 5887333 | 6193053 |
| Mortgage servicing rights | 100493 | 99466 |
| Premises and equipment, net | 44348 | 47201 |
| Other real estate owned | 2820 | 2820 |
| Intangible assets | 6184 | 7141 |
| Other assets | 287301 | 290099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $7609323 | $8123698 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| Liabilities: |  |  |
| Deposits | $5857284 | $6413021 |
| Borrowings | 1040000 | 1000000 |
| Long-term debt | 225316 | 225131 |
| Accounts payable and other liabilities | 83742 | 88549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 7206342 | 7726701 |
| Shareholders' equity: |  |  |
| Common stock, no par value; 160,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,920,808 and 18,857,565 shares issued and outstanding | 234026 | 233185 |
| Retained earnings | 242136 | 251013 |
| Accumulated other comprehensive income (loss) | (73181) | (87201) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 402981 | 396997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $7609323 | $8123698 |

---

------

**HomeStreet, Inc. and Subsidiaries**

**Consolidated Income Statements**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended June 30,** | **Quarter Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| (in thousands, except share and per share data) | **2025** | **2024** | **2025** | **2024** |
| Interest income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans | $71811 | $87323 | $145235 | $173579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 8596 | 10160 | 17246 | 20874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash, Fed Funds and other | 2635 | 3640 | 6326 | 9211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 83042 | 101123 | 168807 | 203664 |
| Interest expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 34514 | 43535 | 72751 | 86142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 14658 | 27887 | 28965 | 55670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 49172 | 71422 | 101716 | 141812 |
| Net interest income | 33870 | 29701 | 67091 | 61852 |
| Provision for credit losses | 6000 |  | 7000 |  |
| Net interest income after provision for credit losses | 27870 | 29701 | 60091 | 61852 |
| Noninterest income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on loan origination and sale activities | 3235 | 3036 | 6451 | 5342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan servicing income | 7550 | 3410 | 12408 | 6442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposit fees | 2116 | 2209 | 4187 | 4450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 2199 | 4572 | 4190 | 6447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 15100 | 13227 | 27236 | 22681 |
| Noninterest expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation and benefits | 26014 | 27616 | 52323 | 55627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information services | 7441 | 7580 | 15026 | 14922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 4868 | 5130 | 9739 | 10564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General, administrative and other | 9428 | 10605 | 19771 | 21982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 47751 | 50931 | 96859 | 103095 |
| Income (loss) before income taxes | (4781) | (8003) | (9532) | (18562) |
| Income tax (benefit) expense | (369) | (1765) | (655) | (4827) |
| Net income (loss) | $(4412) | $(6238) | $(8877) | $(13735) |
| Net income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.23) | $(0.33) | $(0.47) | $(0.73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.23) | $(0.33) | $(0.47) | $(0.73) |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 18920808 | 18857566 | 18920808 | 18857218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted  | 18920808 | 18857566 | 18920808 | 18857218 |

---

------

**HomeStreet, Inc. and Subsidiaries**

**Five Quarter Consolidated Income Statements** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| (in thousands, except share and per share data) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Interest income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | $71811 | $73424 | $85951 | $87161 | $87323 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 8596 | 8650 | 9069 | 9633 | 10160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash, Fed Funds and other | 2635 | 3691 | 4052 | 3043 | 3640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 83042 | 85765 | 99072 | 99837 | 101123 |
| Interest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 34514 | 38237 | 44101 | 44009 | 43535 |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 14658 | 14307 | 25355 | 27209 | 27887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 49172 | 52544 | 69456 | 71218 | 71422 |
| Net interest income | 33870 | 33221 | 29616 | 28619 | 29701 |
| Provision for credit losses | 6000 | 1000 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 27870 | 32221 | 29616 | 28619 | 29701 |
| Noninterest income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain (loss) on loan origination and sale activities | 3235 | 3216 | (84992) | 2760 | 3036 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan servicing income | 7550 | 4858 | 2997 | 3058 | 3410 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit fees | 2116 | 2071 | 2166 | 2222 | 2209 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 2199 | 1991 | 1705 | 3018 | 4572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income (loss) | 15100 | 12136 | (78124) | 11058 | 13227 |
| Noninterest expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Compensation and benefits | 26014 | 26309 | 25037 | 26760 | 27616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Information services | 7441 | 7585 | 7208 | 7742 | 7580 |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 4868 | 4871 | 6181 | 4974 | 5130 |
| &nbsp;&nbsp;&nbsp;&nbsp;General, administrative and other | 9428 | 10343 | 5527 | 9690 | 10605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 47751 | 49108 | 43953 | 49166 | 50931 |
| Income (loss) before income taxes | (4781) | (4751) | (92461) | (9489) | (8003) |
| Income tax (benefit) expense | (369) | (286) | 30866 | (2207) | (1765) |
| Net income (loss) | $(4412) | $(4465) | $(123327) | $(7282) | $(6238) |
| Net income (loss) per share: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.23) | $(0.24) | $(6.54) | $(0.39) | $(0.33) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.23) | $(0.24) | $(6.54) | $(0.39) | $(0.33) |
| Weighted average shares outstanding: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 18920808 | 18920808 | 18857565 | 18857565 | 18857566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 18920808 | 18920808 | 18857565 | 18857565 | 18857566 |

---

------

**HomeStreet, Inc. and Subsidiaries**

**Average Balances, Yields (Taxable-equivalent basis) and Rates** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended June 30,** | **Quarter Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| Average Balances: | **2025** | **2024** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | $1043212 | $1164144 | $1049240 | $1201618 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 6035713 | 7454945 | 6116736 | 7457798 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 7272471 | 8858433 | 7383957 | 8973319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 7644356 | 9272131 | 7757019 | 9387160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits: Interest-bearing | 4644881 | 5122284 | 4760601 | 5177460 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits: Noninterest-bearing | 1253539 | 1282447 | 1259586 | 1300878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 1031292 | 2025415 | 1021258 | 2049971 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 225270 | 224903 | 225224 | 224858 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 5901443 | 7372602 | 6007083 | 7452289 |
| Average Yield/Rate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 3.62% | 3.80% | 3.61% | 3.78% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 4.74% | 4.66% | 4.75% | 4.63% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest earning assets | 4.60% | 4.59% | 4.62% | 4.56% |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits: Interest-bearing | 2.98% | 3.41% | 3.08% | 3.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 2.34% | 2.73% | 2.43% | 2.67% |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 4.49% | 4.85% | 4.49% | 4.79% |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 5.21% | 5.49% | 5.22% | 5.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 3.33% | 3.87% | 3.40% | 3.81% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest rate spread | 1.27% | 0.72% | 1.22% | 0.76% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest margin | 1.90% | 1.37% | 1.86% | 1.40% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands, except yield/rate) | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| Average Balances: | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | $1043212 | $1055336 | $1096695 | $1155284 | $1164144 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 6035713 | 6198659 | 7334221 | 7385970 | 7454945 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest earning assets | 7272471 | 7496682 | 8721422 | 8727590 | 8858433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | 7644356 | 7870934 | 9127103 | 9138291 | 9272131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits: Interest-bearing | 4644881 | 4877607 | 5148727 | 5045396 | 5122284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits: Noninterest-bearing | 1253539 | 1265701 | 1253516 | 1283502 | 1282447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 1031292 | 1011111 | 1875616 | 1950109 | 2025415 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 225270 | 225178 | 225086 | 224994 | 224903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 5901443 | 6113896 | 7249429 | 7220499 | 7372602 |
| Average Yield/Rate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment securities | 3.62% | 3.60% | 3.63% | 3.65% | 3.80% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 4.74% | 4.76% | 4.62% | 4.66% | 4.66% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest earning assets | 4.60% | 4.65% | 4.53% | 4.56% | 4.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits: Interest-bearing | 2.98% | 3.18% | 3.40% | 3.47% | 3.41% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 2.34% | 2.52% | 2.74% | 2.76% | 2.73% |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 4.49% | 4.50% | 4.66% | 4.85% | 4.85% |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 5.21% | 5.23% | 5.36% | 5.48% | 5.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 3.33% | 3.47% | 3.79% | 3.90% | 3.87% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest rate spread | 1.27% | 1.18% | 0.74% | 0.66% | 0.72% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest margin | 1.90% | 1.82% | 1.38% | 1.33% | 1.37% |

---

------

**<u>Results of Operations</u>**

*Second Quarter of 2025 Compared to the First Quarter of 2025*

*Non-core amounts:* For the second quarter and first quarter of 2025 non-core items include $1.7 million and $2.1 million of merger related expenses, respectively.

*General:* Our net loss and loss before income taxes were $4.4 million and $4.8 million, respectively, in the second quarter of 2025, as compared to $4.5 million and $4.8 million, respectively, in the first quarter of 2025. Our core net loss and core loss before taxes, which excludes merger related expenses, were $3.1 million and $3.0 million, respectively, in the second quarter of 2025, as compared to $2.9 million and $2.7 million, respectively, in the first quarter of 2025. The increase in core loss before income taxes was primarily due to an increase in the provision for credit losses, partially offset by increases in net interest income and noninterest income and lower noninterest expenses.

*Income Taxes:* Due to our cumulative losses over the three year period ended December 31, 2024, accounting rules required us to provide a valuation allowance for the balance of our deferred tax assets in the fourth quarter of 2024. As a result, we do not expect to recognize income tax expense until the deferred tax assets valuation allowance no longer exists. The $0.4 million and $0.3 million of income tax benefit recognized in the second and first quarters of 2025, respectively, primarily relate to the reversal of the disparate tax effects on our accumulated other comprehensive income ("AOCI") resulting from recording a valuation allowance for the deferred tax assets related to the AOCI in the fourth quarter of 2024.

Our net interest income in the second quarter of 2025 was $0.6 million higher than the first quarter of 2025 due to an increase in our net interest margin from 1.82% to 1.90%. The increase in the net interest margin was due primarily to a 14 basis point decrease in the rates paid on interest-bearing liabilities, partially offset by a 5 basis point decrease in the yield on interest earning assets. The decrease in rates on interest bearing liabilities are primarily due to a decrease in rates paid on certificates of deposits resulting from decreases in market interest rates. The decrease in the yield on interest earning assets is primarily due to a decrease in yields on Fed Funds due to decreases in short term market rates.

The $6.0 million provision for credit losses in the second quarter of 2025 was primarily due to the impact of adverse credit migration of certain multifamily loans. The $1.0 million provision for credit losses in the first quarter of 2025 was primarily due to a $3.3 million increase in specific reserves which was partially offset by lower general reserves resulting in part from lower loan balances.

Noninterest income in the second quarter of 2025 increased from the first quarter of 2025 primarily due to an increase in loan servicing income due to a $4.4 million increase in the value of our single family mortgage servicing rights resulting from higher market valuations of these assets.

Noninterest expenses were $1.4 million lower in the second quarter of 2025 due primarily to a $0.9 million decrease in general, administrative and other expenses which reflects the efforts made to eliminate or defer nonessential expenses.

------

*Six Months Ended of June 30, 2025 Compared to the Six Months Ended of June 30, 2024*

*Non-core amounts:* For the six months ended June 30, 2025, non-core items include $3.8 million of merger related expenses. During the six months ended June 30, 2024, non-core items include $5.0 million of merger related expenses.

Our net loss and loss before income taxes were $8.9 million and $9.5 million, respectively, in the six months ended June 30, 2025, as compared to $13.7 million and $18.6 million, respectively, in the six months ended June 30, 2024. Our core net loss and core loss before income taxes, which exclude the impact of merger related expenses, were $5.9 million and $5.7 million in the six months ended June 30, 2025, as compared to $9.8 million and $13.5 million in the six months ended June 30, 2024. The $7.8 million decrease in core loss before income taxes was primarily due to higher net interest income and noninterest income and lower noninterest expenses, partially offset by an increase in the provision for credit losses.

Due to our cumulative losses over the three year period ended December 31, 2024, accounting rules required us to provide a valuation allowance for the balance of our deferred tax assets in the fourth quarter of 2024. As a result, we do not expect to recognize tax expense until the deferred tax assets valuation allowance no longer exists. The $0.7 million income tax benefit recognized in the six months ended June 30, 2025 primarily relates to the reversal of the disparate tax effects on our AOCI resulting from recording a valuation allowance for the deferred tax assets related to AOCI in the fourth quarter of 2024. Our effective tax rate in the six months ended June 30, 2024 of 26.0% was higher than our statutory rate of 24.6% due to the impact of tax advantaged investments which creates a higher benefit due to our taxable loss.

Net interest income in the six months ended June 30, 2025 increased $5.2 million as compared to the six months ended June 30, 2024 due primarily to an increase in net interest margin from 1.40% in the six months ended June 30, 2024 to 1.86% in the six months ended June 30, 2025. The increase in net interest margin is due to a 41 basis point decrease in the rates paid on interest-bearing liabilities and a 6 basis point increase in the yield on interest earning assets. The increase in yield on interest earning assets was primarily due to the sale of $990 million of lower yielding multifamily loans at the end of the fourth quarter of 2024. The decrease in rates on interest bearing liabilities are primarily due to our paydown at the end of 2024 and beginning of 2025 of higher cost borrowings and brokered certificates of deposit with proceeds from the sale of multifamily loans.

The $7.0 million provision for credit losses recognized during the six months ended June 30, 2025 was primarily due to the impact of adverse credit migration in certain multifamily loans and a $3.3 million increase in specific reserves which was partially offset by lower general reserves resulting in part from lower loan balances. There was no provision for credit losses during the six months ended June 30, 2024, which reflected the stable balance of our loan portfolio, a minimal level of identified credit issues in our loan portfolio and the lack of significant expected credit issues arising in future periods.

Noninterest income in the six months ended June 30, 2025 increased from the six months ended June 30, 2024 primarily due to a $1.1 million increase in gain on loan sales and a $6.0 million increase in loan servicing income, partially offset by a $2.3 million decrease in other noninterest income. The gain on loan sales increased primarily due to an increase in CRE loan sales volume. The increase in loan servicing income is primarily due to a $5.9 million increase in the value of our single family mortgage servicing rights resulting from higher market valuations of these assets. The decrease in other noninterest income is primarily due to higher levels of income realized from our investments in small business investment companies in the first six months of 2024.

The $6.2 million decrease in noninterest expense in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily due to $3.3 million lower compensation and benefit costs, $0.8 million lower occupancy costs and $2.2 million lower general and administrative costs. The decrease in

compensation and benefit costs was primarily due to an 11% decrease in FTE and lower medical costs, which was partially offset by wage increases given in the first quarter of 2025. The decrease in occupancy costs is primarily due to reductions in leased space from branch closures in 2024. The decrease in general and administrative costs was due to lower merger related expenses and reductions in other costs which reflect the efforts made to eliminate or defer nonessential expenses.

**<u>Financial Position</u>**

During the six months ended June 30, 2025, our total assets decreased $514 million due primarily to a $306 million decrease in loans held for investment and a $206 million decrease in cash. In the six months ended June 30, 2025, total liabilities decreased $520 million due to a $556 million decrease in deposits. The decrease in deposits was primarily due to a $541 million decrease in brokered certificates of deposits.

------

**Loans Held for Investment** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Commercial real estate ("CRE") |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied CRE | $508781 | $545313 | $570750 | $590956 | $612937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multifamily | 2895342 | 2934442 | 2992675 | 3950941 | 3935158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction/land development | 425718 | 436610 | 472740 | 535601 | 530445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 3829841 | 3916365 | 4036165 | 5077498 | 5078540 |
| Commercial and industrial loans |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner occupied CRE | 324299 | 340106 | 361997 | 365138 | 372452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial business | 285612 | 299001 | 312004 | 345999 | 376711 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 609911 | 639107 | 674001 | 711137 | 749163 |
| Consumer loans |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Single family | 1060566 | 1088264 | 1109095 | 1137981 | 1152004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity and other | 432821 | 419480 | 412535 | 406638 | 400343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total <sup>(1)</sup> | 1493387 | 1507744 | 1521630 | 1544619 | 1552347 |
| Total LHFI | 5933139 | 6063216 | 6231796 | 7333254 | 7380050 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses ("ACL") | (45806) | (39634) | (38743) | (38651) | (39741) |
| Total LHFI less ACL | $5887333 | $6023582 | $6193053 | $7294603 | $7340309 |

---

(1)Includes $1.0 million at June 30, 2025 and $1.2 million at March 31, 2025 and $1.3 million at December 31, 2024, September 30, 2024 and June 30, 2024 of single family loans that are carried at fair value.

------

**Loan Roll-forward**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Loans - beginning balance | $6063216 | $6231796 | $7333254 | $7380050 | $7444729 |
| Originations and advances | 226790 | 203589 | 278922 | 279783 | 282460 |
| Transfers (to) from loans held for sale | (1059) | (479) | 1 | (378) | (520) |
| Loan Sold |  |  | (994243) |  |  |
| Payoffs, paydowns and other | (355761) | (371629) | (385790) | (324639) | (346493) |
| Charge-offs  | (47) | (61) | (348) | (1562) | (126) |
| Loans - ending balance | $5933139 | $6063216 | $6231796 | $7333254 | $7380050 |

---

**Loan Originations and Advances**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| CRE |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied CRE | $3 | $3993 | $9 | $9 | $977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multifamily <sup>(1)</sup> | 26523 | 2103 | 79710 | 48960 | 17495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction/land development | 133742 | 121765 | 122855 | 160220 | 152681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 160268 | 127861 | 202574 | 209189 | 171153 |
| Commercial and industrial loans |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owner occupied CRE | 1675 |  | 4040 |  | 663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial business | 17017 | 26224 | 28921 | 12966 | 38990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 18692 | 26224 | 32961 | 12966 | 39653 |
| Consumer loans |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Single family <sup>(2)</sup> | 4191 | 11221 | 6037 | 15960 | 33359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity and other | 43639 | 38283 | 37350 | 41668 | 38295 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 47830 | 49504 | 43387 | 57628 | 71654 |
| Total loan originations and advances | $226790 | $203589 | $278922 | $279783 | $282460 |

---

(1) Includes loans transferred from construction loans to permanent multifamily loans upon completion of construction of $20.0 million, $57.0 million, $47.1 million and $17.5 million for the quarters ended June 30, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

(2) Includes loans transferred from construction loans to permanent single family loans upon completion of construction of $2.0 million, $10.4 million, $4.6 million, $12.9 million, $31.6 million for the quarters ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

**Credit Quality** 

During the second quarter of 2025, our ratios of nonperforming assets to total assets and total loans delinquent over 30 days, including nonaccrual loans, remained at low levels. As of June 30, 2025, our ratio of nonperforming assets to total assets was 0.76% as compared to 0.75% at March 31, 2025, and our ratio of total loans delinquent over 30 days, including nonaccrual loans, to total loans was 1.11% as compared to 1.09% at March 31, 2025. The total balance of past due and nonaccrual loans decreased slightly during the second quarter.

------

**Delinquencies**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Past Due and Still Accruing** | **Past Due and Still Accruing** | **Past Due and Still Accruing** | | | | |
| (dollars in thousands) | **30-59 days** | **60-89 days** | **90 days or**<br>**more** <sup>(1)</sup> | **Nonaccrual** | **Total past**<br>**due and nonaccrual** <sup>(2)</sup> | **Current** | **Total<br>loans** |
| June 30, 2025 |  |  |  |  |  |  |  |
| Total loans held for investment | $4600 | $2114 | $3737 | $55232 | $65683 | $5867456 | $5933139 |
| % | 0.08% | 0.04% | 0.06% | 0.93% | 1.11% | 98.89% | 100.00% |
| March 31, 2025 |  |  |  |  |  |  |  |
| Total loans held for investment | $3709 | $2204 | $4182 | $55791 | $65886 | $5997330 | $6063216 |
| % | 0.06% | 0.04% | 0.07% | 0.92% | 1.09% | 98.91% | 100.00% |

---

(1) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.

(2) Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.4 million and $10.4 million at June 30, 2025 and March 31, 2025, respectively.

**Allowance for Credit Losses (roll-forward)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Allowance for credit losses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | $39634 | $38743 | $38651 | $39741 | $39677 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 6160 | 888 | 203 | 104 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries (charge-offs), net | 12 | 3 | (111) | (1194) | (64) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | $45806 | $39634 | $38743 | $38651 | $39741 |
| Allowance for unfunded commitments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning balance | $1258 | $1146 | $1349 | $1453 | $1581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | (160) | 112 | (203) | (104) | (128) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ending balance | $1098 | $1258 | $1146 | $1349 | $1453 |
| Provision for credit losses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses - loans | $6160 | $888 | $203 | $104 | $128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for unfunded commitments | (160) | 112 | (203) | (104) | (128) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $6000 | $1000 | $— | $— | $— |

---

------

**Allocation of Allowance for Credit Losses by Product Type**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| (dollars in thousands) | **Balance** | **Rate** <sup>(1)</sup> | **Balance** | **Rate** <sup>(1)</sup> | **Balance** | **Rate** <sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-owner occupied CRE | $1791 | 0.35% | $1658 | 0.30% | $1739 | 0.30% |
| &nbsp;&nbsp;&nbsp;Multifamily | 18948 | 0.65% | 13287 | 0.45% | 14909 | 0.50% |
| &nbsp;&nbsp;&nbsp;Construction/land development |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multifamily construction | 1159 | 2.57% | 468 | 0.72% | 849 | 0.86% |
| &nbsp;&nbsp;&nbsp;&nbsp; CRE construction | 71 | 0.59% | 73 | 0.66% | 66 | 0.60% |
| &nbsp;&nbsp;&nbsp;&nbsp; Single family construction | 5200 | 1.55% | 5704 | 1.74% | 6737 | 2.10% |
| &nbsp;&nbsp;&nbsp;&nbsp; Single family construction to perm | 150 | 0.44% | 140 | 0.45% | 184 | 0.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total CRE | 27319 | 0.71% | 21330 | 0.55% | 24484 | 0.61% |
| &nbsp;&nbsp;&nbsp;&nbsp;Owner occupied CRE | 610 | 0.19% | 598 | 0.18% | 576 | 0.16% |
| &nbsp;&nbsp;&nbsp;Commercial business | 11150 | 3.96% | 10648 | 3.61% | 6886 | 2.23% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial and industrial | 11760 | 1.94% | 11246 | 1.77% | 7462 | 1.12% |
| &nbsp;&nbsp;&nbsp;Single family | 3602 | 0.37% | 3702 | 0.37% | 3610 | 0.35% |
| &nbsp;&nbsp;&nbsp;Home equity and other | 3125 | 0.72% | 3356 | 0.80% | 3187 | 0.77% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer | 6727 | 0.48% | 7058 | 0.50% | 6797 | 0.47% |
| Total | $45806 | 0.78% | $39634 | 0.66% | $38743 | 0.63% |

---

(1) The ACL rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA

**Production Volumes for Sale to the Secondary Market**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Loan originations |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Single family loans | $114723 | $83834 | $110434 | $125964 | $101057 |
| &nbsp;&nbsp;&nbsp;Commercial and industrial and CRE loans | 18861 | 42676 | 84263 |  | 19593 |
| Loans sold  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Single family loans | 105197 | 82397 | 127401 | 109091 | 98081 |
| &nbsp;&nbsp;&nbsp;Commercial and industrial and CRE loans <sup>(1)</sup> | 12894 | 54195 | 1074405 | 7602 | 13539 |
| Net gain (loss) on loan origination and sale activities  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Single family loans | 3182 | 2283 | 2090 | 2779 | 2718 |
| &nbsp;&nbsp;&nbsp;Commercial and industrial and CRE loans <sup>(1)</sup> | 53 | 933 | (87082) | (19) | 318 |
| Total | $3235 | $3216 | $(84992) | $2760 | $3036 |

---

(1) May include loans originated as held for investment.

------

**Loan Servicing Income**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Single family servicing income, net: | Single family servicing income, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Servicing fees and other | $3684 | $3725 | $3715 | $3776 | $3751 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes - amortization <sup>(1)</sup> | (1598) | (1582) | (1690) | (1669) | (1713) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net | 2086 | 2143 | 2025 | 2107 | 2038 |
| Risk management, single family MSRs: | Risk management, single family MSRs: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in fair value due to assumptions <sup>(2)</sup> | 4373 | 271 | 2559 | (1963) | 529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain (loss) from economic hedging <sup>(3)</sup> | (118) | 1016 | (2731) | 1418 | (509) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | 4255 | 1287 | (172) | (545) | 20 |
| Single family servicing income | 6341 | 3430 | 1853 | 1562 | 2058 |
| Commercial loan servicing income: | Commercial loan servicing income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Servicing fees and other | 2664 | 2782 | 2472 | 2919 | 2811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of capitalized MSRs | (1455) | (1354) | (1328) | (1423) | (1459) |
| Total | 1209 | 1428 | 1144 | 1496 | 1352 |
| Total loan servicing income | $7550 | $4858 | $2997 | $3058 | $3410 |

---

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.

(3)The interest income from US Treasury notes trading securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.5 million for the quarter ended June 30, 2025, $0.4 million for the quarter ended March 31, 2025 and $0.3 million for each of the quarters ended December 31, 2024, September 30, 2024 and June 30, 2024.

**Capitalized Mortgage Servicing Rights ("MSRs")**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Single Family MSRs |  |  |  |  |  |
| Beginning balance | $72285 | $72901 | $70800 | $73725 | $74056 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions and amortization: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originations | 931 | 695 | 1232 | 707 | 853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes - amortization <sup>(1)</sup> | (1598) | (1582) | (1690) | (1669) | (1713) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net additions and amortization | (667) | (887) | (458) | (962) | (860) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value due to assumptions <sup>(2)</sup> | 4373 | 271 | 2559 | (1963) | 529 |
| Ending balance | $75991 | $72285 | $72901 | $70800 | $73725 |
| Ratio to related loans serviced for others | 1.18% | 1.41% | 1.41% | 1.36% | 1.41% |
| Multifamily and SBA MSRs |  |  |  |  |  |
| Beginning balance | $25674 | $26565 | $26322 | $27583 | 28863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Originations | 283 | 463 | 1571 | 162 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | (1455) | (1354) | (1328) | (1423) | (1459) |
| Ending balance | $24502 | $25674 | $26565 | $26322 | $27583 |
| Ratio to related loans serviced for others | 1.28% | 1.33% | 1.38% | 1.42% | 1.47% |

---

(1) Represents changes due to collection/realization of expected cash flows and curtailments.

(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.

------

**Deposits**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| Deposits by Product: |  |  |  |  |  |
| Noninterest-bearing demand deposits | $1203680 | $1276133 | $1195781 | $1253582 | $1252850 |
| Interest-bearing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand deposits | 322151 | 327400 | 323112 | 315711 | 332290 |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 233074 | 233240 | 229659 | 239060 | 246397 |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market | 1363793 | 1437024 | 1396697 | 1445639 | 1502960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokered deposits | 210067 | 297717 | 751406 | 741051 | 948989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 2524519 | 2518981 | 2516366 | 2440361 | 2248984 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 4653604 | 4814362 | 5217240 | 5181822 | 5279620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $5857284 | $6090495 | $6413021 | $6435404 | $6532470 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Percent of total deposits: |  |  |  |  |  |
| Noninterest-bearing demand deposits | 20.5% | 21.0% | 18.6% | 19.5% | 19.2% |
| Interest-bearing: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand deposits | 5.5% | 5.4% | 5.0% | 4.9% | 5.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 4.0% | 3.8% | 3.6% | 3.7% | 3.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market | 23.3% | 23.6% | 21.8% | 22.5% | 23.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokered deposits | 3.6% | 4.9% | 11.7% | 11.5% | 14.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 43.1% | 41.3% | 39.3% | 37.9% | 34.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 79.5% | 79.0% | 81.4% | 80.5% | 80.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |

---

------

**HomeStreet, Inc. and Subsidiaries**

**Non-GAAP Financial Measures**

To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance.

In this earnings release, we use the following non-GAAP measures: (i) tangible common equity and tangible assets as we believe this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of capital ratios; (ii) core net income (loss) and effective tax rate on core net income (loss) before taxes, which excludes the loss on the sale of $990 million of multifamily loans in the fourth quarter of 2024 due to the unusual nature and size of the loan sale, the deferred tax asset valuation allowance recognized in the fourth quarter of 2024 because it is a significant unusual item, loss on debt extinguishment in the fourth quarter of 2024 and merger related expenses and the related tax impact as we believe this measure is a better comparison to be used for projecting future results; (iii) core noninterest expenses which exclude merger related expenses as we believe this measure is a better comparison to be used for projecting future noninterest expenses and (iv) an efficiency ratio which is the ratio of noninterest expense to the sum of net interest income and noninterest income, excluding certain items of income or expense considered non-core and excluding taxes incurred and payable to the state of Washington as such taxes are not classified as income taxes and we believe including them in noninterest expense impacts the comparability of our results to those companies whose operations are in states where assessed taxes on business are classified as income taxes.

These supplemental performance measures, as well as additional measures derived from these supplemental performance measures, may vary from, and may not be comparable to, similarly titled measures provided by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirements.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other parties in the evaluation of companies in our industry. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP. In the information below, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP measures used in this earnings release, or the computation of the non-GAAP financial measure.

------

**HomeStreet, Inc. and Subsidiaries**

**Non-GAAP Financial Measures**

**Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures or calculations of the non-GAAP measure:**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **Six Months Ended** | **Six Months Ended** |
| (in thousands, except share and per share data) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **June 30,<br>2025** | **June 30,<br>2024** |
| Core net income (loss) | Core net income (loss) | Core net income (loss) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(4412) | $(4465) | $(123327) | $(7282) | $(6238) | $(8877) | $(13735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on loan sale |  |  | 67058 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger related expenses (recoveries) | 1362 | 1599 | (2534) | 1283 | 1897 | 2961 | 3925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  |  | 353 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset allowance |  |  | 53310 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(3050) | $(2866) | $(5140) | $(5999) | $(4341) | $(5916) | $(9810) |
| Core net income (loss) per fully diluted share | Core net income (loss) per fully diluted share | Core net income (loss) per fully diluted share |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fully diluted shares | 18920808 | 18920808 | 18857565 | 18857565 | 18857566 | 18920808 | 18857218 |
| &nbsp;&nbsp;&nbsp;&nbsp;Computed amount | $(0.16) | $(0.15) | $(0.27) | $(0.32) | $(0.23) | $(0.31) | $(0.52) |
| Return on average tangible equity (annualized) | Return on average tangible equity (annualized) | Return on average tangible equity (annualized) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average shareholders' equity | $403629 | $404800 | $529299 | $531608 | $522904 | $404211 | $530266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Average goodwill and other intangibles | (6494) | (6976) | (7542) | (8176) | (8794) | (6734) | (9099) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average tangible equity | $397135 | $397824 | $521757 | $523432 | $514110 | $397477 | $521167 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(4412) | $(4465) | $(123327) | $(7282) | $(6238) | $(8877) | $(13735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of core deposit intangibles | 373 | 374 | 487 | 488 | 487 | 747 | 975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible income applicable to shareholders | $(4039) | $(4091) | $(122840) | $(6794) | $(5751) | $(8130) | $(12760) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (4.1)% | (4.2)% | (93.7)% | (5.1)% | (4.5)% | (4.1)% | (4.9)% |
| Return on average tangible equity (annualized) - Core | Return on average tangible equity (annualized) - Core | Return on average tangible equity (annualized) - Core |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average tangible equity | $397135 | $397824 | $521757 | $523432 | $514110 | $397477 | $521167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core net income (loss) (per above) | $(3050) | $(2866) | $(5140) | $(5999) | $(4341) | (5916) | (9810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of core deposit intangibles | 373 | 374 | 487 | 488 | 487 | 747 | 975 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible income (loss) applicable to shareholders | $(2677) | $(2492) | $(4653) | $(5511) | $(3854) | $(5169) | $(8835) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (2.7)% | (2.5)% | (3.5)% | (4.2)% | (3.0)% | (2.6)% | (3.4)% |
| Return on average equity (annualized) - Core | Return on average equity (annualized) - Core | Return on average equity (annualized) - Core |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average shareholders' equity (per above) | $403629 | $404800 | $529299 | $531608 | $522904 | $404211 | $530266 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core net income (loss) (per above) | (3050) | (2866) | (5140) | (5999) | (4341) | (5916) | (9810) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (3.0)% | (2.9)% | (3.9)% | (4.5)% | (3.3)% | (3.0)% | (3.7)% |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** | **Six Months Ended** | **Six Months Ended** |
| (in thousands, except share and per share data) | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **June 30,<br>2025** | **June 30,<br>2024** |
| Efficiency ratio |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest expense  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $47751 | $49108 | $43953 | $49166 | $50931 | $96859 | $103095 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger related expenses or recoveries | (1746) | (2050) | 3249 | (1645) | (2432) | (3796) | (5032) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on debt extinguishment |  |  | (452) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State of Washington taxes | (382) | (386) | (157) | (438) | (463) | (768) | (915) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core noninterest expense | $45623 | $46672 | $46593 | $47083 | $48036 | $92295 | $97148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | $33870 | $33221 | $29616 | $28619 | $29701 | 67091 | 61852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noninterest income (loss) | 15100 | 12136 | (78124) | 11058 | 13227 | 27236 | 22681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on loan sale |  |  | 88818 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted total | $48970 | $45357 | $40310 | $39677 | $42928 | $94327 | $84533 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | 93.2% | 102.9% | 115.6% | 118.7% | 111.9% | 97.8% | 114.9% |
| Return on average assets (annualized) - Core | Return on average assets (annualized) - Core | Return on average assets (annualized) - Core |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average Assets | $7644356 | $7870934 | $9127103 | $9138291 | $9272131 | $7757019 | $9387160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core net income (loss) (per above) | (3050) | (2866) | (5140) | (5999) | (4341) | (5916) | (9810) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (0.16)% | (0.15)% | (0.22)% | (0.26)% | (0.19)% | (0.15)% | (0.21)% |
| Effective tax rate used in computations above <sup>(1)</sup> | 22.0% | 22.0% | 22.0% | 22.0% | 22.0% | 22.0% | 22.0% |
| Tangible book value per share | Tangible book value per share |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity | $402981 | $400751 | $396997 | $538315 | $520117 | $402981 | $520117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Intangible assets | (6184) | (6662) | (7141) | (7766) | (8391) | (6184) | (8391) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible shareholders' equity | $396797 | $394089 | $389856 | $530549 | $511726 | $396797 | $511726 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares outstanding | 18920808 | 18920808 | 18857565 | 18857565 | 18857565 | 18920808 | 18857565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Computed amount | $20.97 | $20.83 | $20.67 | $28.13 | $27.14 | $20.97 | $27.14 |
| Tangible common equity to tangible assets | Tangible common equity to tangible assets | Tangible common equity to tangible assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tangible shareholders' equity (per above) | $396797 | $394089 | $389856 | $530549 | $511726 | $396797 | $511726 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tangible assets |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $7609323 | $7803631 | $8123698 | $9201285 | $9266039 | $7609323 | $9266039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Intangible assets (per above) | (6184) | (6662) | (7141) | (7766) | (8391) | (6184) | (8391) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net | $7603139 | $7796969 | $8116557 | $9193519 | $9257648 | $7603139 | $9257648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio | 5.2% | 5.1% | 4.8% | 5.8% | 5.5% | 5.2% | 5.5% |

---

(1) Effective tax rate indicated is used for all adjustments except the loss on loan sale. The gross effective tax rate of 24.5% was used for the loss on loan sale due to the large size of the loss in relation to permanent differences that could impact our gross effective rate.

------

**Forward-Looking Statements**

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Generally, forward-looking statements include the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "potential," "goal," "upcoming," "outlook," "guidance" or "project" or the negation thereof, or similar expressions, including statements relating to the growth of the Company achievement of profitability and timing of such achievement, timing for the closing of the pending Merger ("defined below") and expectations with respect to income tax expense. In addition, all statements in this report that address and/or include beliefs, assumptions, estimates, projections and expectations of our future performance and financial condition are forward-looking statements within the meaning of the Reform Act. Forward-looking statements involve inherent risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond management's control. Forward-looking statements are based on the Company's expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this report as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. For all forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act.

We caution readers that actual results may differ materially from those expressed in or implied by the Company's forward-looking statements. Rather, more important factors could affect the Company's future results, including but not limited to the following: (1) our ability to successfully consummate the pending merger (the "Merger") with Mechanics Bank ("Mechanics"), (2) the ability of HomeStreet and Mechanics to obtain required governmental approvals of the Merger, (3) the failure to satisfy the closing conditions in the definitive Agreement and Plan of Merger, dated as of March 28, 2025 (the "Merger Agreement"), or any unexpected delay in closing the Merger, (4) the ability to achieve expected cost savings, synergies and other financial benefits from the Merger within the expected time frames and costs or difficulties relating to integration matters being greater than expected, (5) the diversion of management time from core banking functions due to Merger-related issues; (6) potential difficulty in maintaining relationships with customers, associates or business partners as a result of the announced Merger; (7) changes in the interest rate environment and in expectation of reduction in short-term interest rates; (8) changes in the U.S. and global economies, including business disruptions, reductions in employment, inflationary pressures and an increase in business failures, specifically among our customers, and global trade disputes, including the imposition of tariffs by the U.S. and countermeasures by foreign governments; (9) our ability to control operating costs and expenses; (10) our ability to attract and retain key members of our senior management team; (11) changes in deposit flows, loan demand or real estate values may adversely affect our business; (12) there may be increases in competitive pressure among financial institutions or from non-financial institutions; (13) our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or the Bank; (14) the timing and occurrence or non-occurrence of events may be subject to circumstances beyond our control; (15) our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses and impact the adequacy of our allowance for credit losses; (16) changes in accounting principles, policies or guidelines may cause our financial condition to be perceived or interpreted differently; (17) legislative or regulatory changes that may adversely affect our business or financial condition, including, without limitation, changes in corporate and/or individual income tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (18) general economic conditions, either nationally or locally in some or all areas in which we conduct business, or conditions in the securities markets or banking industry, may be less favorable than what we currently anticipate; (19) challenges our customers may face in meeting current underwriting standards may adversely impact all or a substantial portion of our rate-lock loan activity we recognize; (20) technological changes may be more difficult or more expensive than what we anticipate; (21) a failure in or breach of our operational or security systems or information technology infrastructure, or those of our third-party providers and vendors, including due to cyber-attacks; (22) success or consummation of new business initiatives may be more difficult or expensive than what we anticipate; (23) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; and (24) litigation, investigations or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than what we anticipate. A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives cited in this release, other releases, public statements and/or filings with the Securities and Exchange Commission ("SEC") is also contained in the "Risk Factors"

------

sections of the Company's Forms 10-K and 10-Q and in our Current Reports on Form 8-K we file with the SEC. We strongly recommend readers review those disclosures in conjunction with the discussions herein.

All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company.

## Exhibit 99.2

![image2.jpg](image2.jpg)

**HomeStreet Reports Second Quarter 2025 Results** 

SEATTLE –July 28, 2025 – (BUSINESS WIRE) – HomeStreet, Inc. (Nasdaq: HMST) (including its consolidated subsidiaries, the "Company", "HomeStreet" or "we"), the parent company of HomeStreet Bank (the "Bank"), today announced the financial results for the quarter ended June 30, 2025. As we present non-GAAP measures in this release, the reader should refer to the non-GAAP reconciliations set forth below under the section "Non-GAAP Financial Measures."

"While we continue to work on the merger with Mechanics Bank, which is still expected to close in the third quarter of 2025, we are improving our operating metrics. In the second quarter we increased our net interest margin and continued to lower noninterest expenses," said Mark Mason, Chairman of the Board, President, and Chief Executive Officer. "Our total and core net income for the second quarter of 2025 were consistent with our results for the first quarter of 2025 as continued improvements in our net interest margin, a $3.0 million increase in noninterest income and a $1.4 million decrease in noninterest expenses were offset by a $5.0 million increase in the provision for credit losses. The Bank, on a standalone basis, continued to be profitable in the second quarter of 2025 with net income of $0.7 million."

"We are projecting a return to core profitability in the fourth quarter of this year, and given the scheduled repricing of our remaining multifamily and other commercial real estate loans, future anticipated reductions in higher cost borrowings, the repricing of our term deposits to lower rates and continued effective noninterest expense management, we anticipate continuous growth in earnings for the foreseeable future," continued Mr. Mason. "Additionally, as a result of the deferred tax asset valuation allowance recorded in the fourth quarter of 2024, we do not expect to recognize any income tax expense on our earnings for the next few years."

---

| | |
|:---|:---|
| **Operating Results** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Second quarter 2025 compared to first quarter 2025**<br>**Reported Results:**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net loss: $4.4 million compared to $4.5 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss per fully diluted share: $0.23 compared to $0.24<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Noninterest expenses: $47.8 million compared to $49.1 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on Average Equity ("ROAE"): (4.4)% compared to (4.5)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on Average Tangible Equity ("ROATE"): (4.1)% compared to (4.2)% <sup>(1)</sup><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Return on Average Assets ("ROAA"): (0.23)% compared to (0.23)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net interest margin: 1.90% compared to 1.82% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Efficiency ratio: 93.2% compared to 102.9% <sup>(1)</sup>  |
| **Operating Results** | **Core Results:** <sup>(1)</sup><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss: $3.1 million compared to $2.9 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net loss per fully diluted share: $0.16 compared to $0.15<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Core noninterest expenses: $45.6 million compared to $46.7 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ROAE: (3.0)% compared to (2.9)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ROATE: (2.7)% compared to (2.5)% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ROAA: (0.16)% compared to (0.15)%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |

---

(1) ROATE, the efficiency ratio, core net income (loss), core net income (loss) per fully diluted share, core noninterest expense, core ROAE, core ROATE and core ROAA are non-GAAP measures. For a reconciliation of these measures to the nearest comparable GAAP measure or a computation of the measure see "Non-GAAP financial measures" in this earnings release.

"Our net interest margin continued to improve in the second quarter due primarily to improving funding costs," Mr. Mason stated.

"The decrease in our core noninterest expenses reflects our efforts to eliminate or defer nonessential expenses and the continued decline in our full time equivalent employees which decreased from 766 in the first quarter to 750 in the second quarter."

---

| | |
|:---|:---|
| **Financial Position** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**As of and for the quarter ended June 30, 2025**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Excluding brokered deposits, total deposits decreased by $146 million<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loans held for investment ("LHFI"), decreased by $136 million <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nonperforming assets to total assets: 0.76%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delinquencies: 1.11% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allowance for credit losses to LHFI: 0.78% <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Book value per share: $21.30<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tangible book value per share: $20.97 <sup>(2)</sup>  |
| **Financial Position** |  |

---

(2) Tangible book value per share is a non-GAAP measure. For a reconciliation of this measure to the nearest comparable GAAP measure see "Non-GAAP financial measures" in this earnings release.

"The increase in our allowance for credit losses was due to the adverse credit migration of certain multifamily loans," added Mr. Mason. "The downgrading of the risk rating of these loans is the result of our annual analysis of the prior year cash flow and current collateral coverage of portfolio commercial real estate loans. These loans continue to perform with guarantor support and our overall credit metrics remained stable with the total amount of delinquent loans and nonperforming assets decreasing slightly during the second quarter."

**About HomeStreet** 

HomeStreet, Inc. (Nasdaq: HMST) is a diversified financial services company headquartered in Seattle, Washington, serving consumers and businesses in the Western United States and Hawaii. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. Its principal subsidiary is HomeStreet Bank. Certain information about our business can be found on our investor relations web site, located at http://ir.homestreet.com. HomeStreet Bank is a member of the FDIC and is an Equal Housing Lender.

---

| | |
|:---|:---|
| Contact: | **Executive Vice President and Chief Financial Officer** |
|  | HomeStreet, Inc. |
|  | John Michel (206) 515-2291 |
|  | john.michel@homestreet.com |
|  | <u>http://ir.homestreet.com</u> |

---

------

**Forward-Looking Statements**

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Generally, forward-looking statements include the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "potential," "goal," "upcoming," "outlook," "guidance" or "project" or the negation thereof, or similar expressions, including statements relating to the growth of the Company achievement of profitability and timing of such achievement, timing for the closing of the pending Merger ("defined below") and expectations with respect to income tax expense. In addition, all statements in this report that address and/or include beliefs, assumptions, estimates, projections and expectations of our future performance and financial condition are forward-looking statements within the meaning of the Reform Act. Forward-looking statements involve inherent risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond management's control. Forward-looking statements are based on the Company's expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this report as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. For all forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act.

We caution readers that actual results may differ materially from those expressed in or implied by the Company's forward-looking statements. Rather, more important factors could affect the Company's future results, including but not limited to the following: (1) our ability to successfully consummate the pending merger (the "Merger") with Mechanics Bank ("Mechanics"), (2) the ability of HomeStreet and Mechanics to obtain required governmental approvals of the Merger, (3) the failure to satisfy the closing conditions in the definitive Agreement and Plan of Merger, dated as of March 28, 2025 (the "Merger Agreement"), or any unexpected delay in closing the Merger, (4) the ability to achieve expected cost savings, synergies and other financial benefits from the Merger within the expected time frames and costs or difficulties relating to integration matters being greater than expected, (5) the diversion of management time from core banking functions due to Merger-related issues; (6) potential difficulty in maintaining relationships with customers, associates or business partners as a result of the announced Merger; (7) changes in the interest rate environment and in expectation of reduction in short-term interest rates; (8) changes in the U.S. and global economies, including business disruptions, reductions in employment, inflationary pressures and an increase in business failures, specifically among our customers, and global trade disputes, including the imposition of tariffs by the U.S. and countermeasures by foreign governments; (9) our ability to control operating costs and expenses; (10) our ability to attract and retain key members of our senior management team; (11) changes in deposit flows, loan demand or real estate values may adversely affect our business; (12) there may be increases in competitive pressure among financial institutions or from non-financial institutions; (13) our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or the Bank; (14) the timing and occurrence or non-occurrence of events may be subject to circumstances beyond our control; (15) our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses and impact the adequacy of our allowance for credit losses; (16) changes in accounting principles, policies or guidelines may cause our financial condition to be perceived or interpreted differently; (17) legislative or regulatory changes that may adversely affect our business or financial condition, including, without limitation, changes in corporate and/or individual income tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (18) general economic conditions, either nationally or locally in some or all areas in which we conduct business, or conditions in the securities markets or banking industry, may be less favorable than what we currently anticipate; (19) challenges our customers may face in meeting current underwriting standards may adversely impact all or a substantial portion of our rate-lock loan activity we recognize; (20) technological changes may be more difficult or more expensive than what we anticipate; (21) a failure in or breach of our operational or security systems or information technology infrastructure, or those of our third-party providers and vendors, including due to cyber-attacks; (22) success or consummation of new business initiatives may be more difficult or expensive than what we anticipate; (23) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; and (24) litigation, investigations or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than what we anticipate. A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives cited in this release, other releases, public statements

------

and/or filings with the Securities and Exchange Commission ("SEC") is also contained in the "Risk Factors" sections of the Company's Forms 10-K and 10-Q and in our Current Reports on Form 8-K we file with the SEC. We strongly recommend readers review those disclosures in conjunction with the discussions herein.

All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company.

------

**HomeStreet, Inc. and Subsidiaries**

**Non-GAAP Financial Measures**

To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance.

In this earnings release, we use the following non-GAAP measures: (i) tangible common equity and tangible assets as we believe this information is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of capital ratios; (ii) core net income (loss) and effective tax rate on core net income (loss) before taxes, which excludes the loss on the sale of $990 million of multifamily loans in the fourth quarter of 2024 due to the unusual nature and size of the loan sale, the deferred tax asset valuation allowance recognized in the fourth quarter of 2024 because it is a significant unusual item, loss on debt extinguishment in the fourth quarter of 2024 and merger related expenses and the related tax impact as we believe this measure is a better comparison to be used for projecting future results; (iii) core noninterest expenses which exclude merger related expenses as we believe this measure is a better comparison to be used for projecting future noninterest expenses and (iv) an efficiency ratio which is the ratio of noninterest expense to the sum of net interest income and noninterest income, excluding certain items of income or expense considered non-core and excluding taxes incurred and payable to the state of Washington as such taxes are not classified as income taxes and we believe including them in noninterest expense impacts the comparability of our results to those companies whose operations are in states where assessed taxes on business are classified as income taxes.

These supplemental performance measures, as well as additional measures derived from these supplemental performance measures, may vary from, and may not be comparable to, similarly titled measures provided by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirements.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other parties in the evaluation of companies in our industry. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP. In the information below, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP measures used in this earnings release, or the computation of the non-GAAP financial measure.

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**HomeStreet, Inc. and Subsidiaries**

**Non-GAAP Financial Measures**

*Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures or calculations of the non-GAAP measure:*

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| | | |
|:---|:---|:---|
| | **As of or for the Quarter Ended** | **As of or for the Quarter Ended** |
| (in thousands, except share and per share data) | **June 30,<br>2025** | **March 31,<br>2025** |
| Core net income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(4412) | $(4465) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger related expenses (recoveries) | 1362 | 1599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(3050) | $(2866) |
| Core net income (loss) per fully diluted share | Core net income (loss) per fully diluted share |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fully diluted shares | 18920808 | 18920808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computed amount | $(0.16) | $(0.15) |
| Return on average tangible equity (annualized) | Return on average tangible equity (annualized) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average shareholders' equity | $403629 | $404800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Average intangibles | (6494) | (6976) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average tangible equity | $397135 | $397824 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $(4412) | $(4465) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of core deposit intangibles | 373 | 374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible income applicable to shareholders | $(4039) | $(4091) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (4.1)% | (4.2)% |
| Return on average tangible equity (annualized) - Core | Return on average tangible equity (annualized) - Core | Return on average tangible equity (annualized) - Core |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average tangible equity | $397135 | $397824 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core net income (loss) (per above) | $(3050) | $(2866) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments (tax effected) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of core deposit intangibles | 373 | 374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible income (loss) applicable to shareholders | $(2677) | $(2492) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (2.7)% | (2.5)% |
| Return on average equity (annualized) - Core |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average shareholders' equity (per above) | $403629 | $404800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core net income (loss) (per above) | (3050) | (2866) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (3.0)% | (2.9)% |
| Effective tax rate used in computations above <sup>(1)</sup> | 22.0% | 22.0% |
| Efficiency ratio |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest expense  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $47751 | $49108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger related (expenses) recoveries | (1746) | (2050) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State of Washington taxes | (382) | (386) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Core noninterest expense | $45623 | $46672 |
| (in thousands, except share and per share data) | **June 30,<br>2025** | **March 31,<br>2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | $33870 | $33221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noninterest income (loss) | 15100 | 12136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted total | $48970 | $45357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratio | 93.2% | 102.9% |
| Return on average assets (annualized) - Core | Return on average assets (annualized) - Core | Return on average assets (annualized) - Core |
| &nbsp;&nbsp;&nbsp;&nbsp;Average Assets | $7644356 | $7870934 |
| &nbsp;&nbsp;&nbsp;&nbsp;Core net income (loss) (per above) | (3050) | (2866) |
| &nbsp;&nbsp;&nbsp;&nbsp;Ratio | (0.16)% | (0.15)% |
| Tangible book value per share |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity | $402981 | $400751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Intangibles | (6184) | (6662) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible shareholders' equity | $396797 | $394089 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares outstanding | 18920808 | 18920808 |
| &nbsp;&nbsp;&nbsp;&nbsp;Computed amount | $20.97 | $20.83 |

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