HomeStreet, Inc. (Nasdaq: HMST), the parent company of HomeStreet Bank, reported its financial results for the second quarter of 2025. The company posted a net loss of $4.4 million, slightly improving from a net loss of $4.5 million in the first quarter of 2025. Noninterest expenses decreased to $47.8 million from $49.1 million in the previous quarter, reflecting efforts to reduce nonessential expenses and a decline in full-time equivalent employees from 766 to 750. The net interest margin improved to 1.90% from 1.82% in the first quarter, attributed to better funding costs. HomeStreet's total deposits, excluding brokered deposits, decreased by $146 million, while loans held for investment decreased by $136 million. The company reported nonperforming assets as a percentage of total assets at 0.76% and delinquencies at 1.11%. Looking ahead, HomeStreet projects a return to core profitability in the fourth quarter of 2025. The company anticipates continuous growth in earnings due to the repricing of multifamily and other commercial real estate loans, reductions in higher-cost borrowings, and effective noninterest expense management. Additionally, due to a deferred tax asset valuation allowance recorded in the fourth quarter of 2024, HomeStreet does not expect to recognize any income tax expense on its earnings for the next few years. The company is also working on a merger with Mechanics Bank, which is expected to close in the third quarter of 2025.