HOMESTREET, INC., 10-K filed on 3/7/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Mar. 03, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-35424    
Entity Registrant Name HOMESTREET, INC.    
Entity Incorporation, State or Country Code WA    
Entity Tax Identification Number 91-0186600    
Entity Address, Address Line One 601 Union Street    
Entity Address, Address Line Two Ste. 2000    
Entity Address, City or Town Seattle    
Entity Address, State or Province WA    
Entity Address, Postal Zip Code 98101    
City Area Code 206    
Local Phone Number 623-3050    
Title of 12(b) Security Common Stock, no par value    
Trading Symbol HMST    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Smaller Reporting Company true    
Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Public Float     $ 207.0
Entity Common Stock, Shares Outstanding (in shares)   18,920,808  
Documents Incorporated by Reference
The information required by Part III of this Report, to the extent not set forth herein, will be incorporated by reference from the registrant’s definitive proxy statement relating to the annual meeting of the shareholders to be held in 2025, to be filed with the Securities and Exchange Commission within 120 days of the end of the fiscal year to which this Report relates. If a definitive proxy statement of the registrant is not filed within such period, the registrant will instead file such information on an amendment to this Report within such 120 days of the end of the registrant’s fiscal year to which this Report relates.
   
Entity Central Index Key 0001518715    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
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Audit Information
12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Location Los Angeles, California
Auditor Name Crowe
Auditor Firm ID 173
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
ASSETS    
Cash and cash equivalents $ 406,600 $ 215,664
Investment securities 1,057,006 1,278,268
Loans held for sale ("LHFS") 20,312 19,637
Loans held for investment ("LHFI") (net of allowance for credit losses of $38,743 and $40,500) 6,193,053 7,382,404
Mortgage servicing rights ("MSRs") 99,466 104,236
Premises and equipment, net 47,201 53,582
Other real estate owned ("OREO") 2,820 3,667
Intangible assets 7,141 9,641
Other assets 290,099 325,351
Total assets 8,123,698 9,392,450
Liabilities:    
Deposits 6,413,021 6,763,378
Borrowings 1,000,000 1,745,000
Long-term debt 225,131 224,766
Accounts payable and other liabilities 88,549 120,919
Total liabilities 7,726,701 8,854,063
Commitments and contingencies (Note 10)
Shareholders' equity:    
Common stock, no par value, authorized 160,000,000 shares; issued and outstanding, 18,857,565 shares and 18,810,055 shares 233,185 229,889
Retained earnings 251,013 395,357
Accumulated other comprehensive income (loss) (87,201) (86,859)
Total shareholders' equity 396,997 538,387
Total liabilities and shareholders' equity $ 8,123,698 $ 9,392,450
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 38,743 $ 40,500
Common stock, par value (USD per share) $ 0 $ 0
Common stock, shares authorized (in shares) 160,000,000 160,000,000
Common stock, shares issued (in shares) 18,857,565 18,810,055
Common stock, shares outstanding (in shares) 18,857,565 18,810,055
v3.25.0.1
CONSOLIDATED INCOME STATEMENTS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Interest income:    
Loans $ 346,691 $ 341,255
Investment securities 39,576 49,615
Cash, Fed Funds and other 16,306 8,873
Total interest income 402,573 399,743
Interest expense:    
Deposits 174,252 137,920
Borrowings 108,234 95,070
Total interest expense 282,486 232,990
Net interest income 120,087 166,753
Provision for credit losses 0 (441)
Net interest income after provision for credit losses 120,087 167,194
Noninterest income (loss):    
Net gain (loss) on loan origination and sale activities (76,890) 9,346
Loan servicing income 12,497 12,648
Deposit fees 8,838 10,148
Other 11,170 9,779
Total noninterest income (loss) (44,385) 41,921
Noninterest expense:    
Compensation and benefits 107,424 111,064
Information services 29,872 29,901
Occupancy 21,719 22,241
General, administrative and other 37,199 38,809
Goodwill impairment 0 39,857
Total noninterest expense 196,214 241,872
Income (loss) before income taxes (120,512) (32,757)
Income tax (benefit) expense 23,832 (5,249)
Net income (loss) $ (144,344) $ (27,508)
Net income (loss) per share    
Basic (in dollars per share) $ (7.65) $ (1.46)
Diluted (in dollars per share) $ (7.65) $ (1.46)
Weighted average shares outstanding:    
Basic (in shares) 18,857,392 18,783,005
Diluted (in shares) 18,857,392 18,783,005
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ (144,344) $ (27,508)
Other comprehensive income (loss):    
Unrealized gain (loss) on investment securities available for sale ("AFS") (115) 15,535
Reclassification for net (gains) losses included in income 0 (3)
Other comprehensive income (loss) before tax (115) 15,532
Income tax impact of:    
Unrealized gain (loss) on investment securities AFS 227 2,862
Reclassification for net (gains) losses included in income 0 (1)
Total 227 2,861
Other comprehensive income (loss) (342) 12,671
Total comprehensive income (loss) $ (144,686) $ (14,837)
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common stock
Retained earnings
Accumulated other comprehensive income (loss)
Beginning balance (in shares) at Dec. 31, 2022   18,730,380    
Beginning balance at Dec. 31, 2022 $ 562,147 $ 226,592 $ 435,085 $ (99,530)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income (loss) (27,508)   (27,508)  
Share-based compensation expense 3,613 $ 3,613    
Common stock issued - Option exercise; stock grants (in shares)   92,769    
Common stock issued - Option exercise; stock grants 0      
Other comprehensive income (loss) 12,671     12,671
Dividends declared (12,220)   (12,220)  
Common stock repurchased (in shares) [1]   (13,094)    
Common stock repurchased [1] $ (316) $ (316) 0  
Ending balance (in shares) at Dec. 31, 2023 18,810,055 18,810,055    
Ending balance at Dec. 31, 2023 $ 538,387 $ 229,889 395,357 (86,859)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income (loss) (144,344)   (144,344)  
Share-based compensation expense 3,430 $ 3,430    
Common stock issued - Option exercise; stock grants (in shares)   60,483    
Common stock issued - Option exercise; stock grants 0      
Other comprehensive income (loss) (342)     (342)
Common stock repurchased (in shares) [1]   (12,973)    
Common stock repurchased [1] $ (134) $ (134)    
Ending balance (in shares) at Dec. 31, 2024 18,857,565 18,857,565    
Ending balance at Dec. 31, 2024 $ 396,997 $ 233,185 $ 251,013 $ (87,201)
[1] 1) These amounts represent shares withheld from stock grants to pay for individual employee taxes on their stock grants.
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)
12 Months Ended
Dec. 31, 2023
$ / shares
Statement of Stockholders' Equity [Abstract]  
Dividends declared on common stock (USD per share) $ 0.65
v3.25.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (144,344) $ (27,508)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Goodwill impairment 0 39,857
Provision for credit losses 0 (441)
Loss on sale of $990 million of multifamily loans 88,618 0
Depreciation and amortization, premises and equipment 6,580 7,146
Amortization of premiums and discounts: investment securities, deposits, debt 2,689 357
Operating leases: excess of payments over amortization (3,101) (3,145)
Amortization of finance leases 181 425
Amortization of core deposit intangibles 2,500 2,951
Amortization of deferred loan fees and costs (287) (1,039)
Share-based compensation expense 3,430 3,613
Lease abandonment costs 1,064 0
Deferred income tax (benefit) expense 17,943 (9,129)
Loss on debt extinguishment 452 0
Origination of LHFS (517,998) (362,453)
Proceeds from sale of LHFS 521,128 363,327
Net fair value adjustment and gain on sale of LHFS (2,635) (676)
Origination of MSRs (5,599) (3,645)
Change in fair value of MSRs 4,757 5,964
Amortization of servicing rights 5,612 5,778
Net fair value adjustment, gain on sale and provision for losses on other real estate owned 180 (975)
Net decrease (increase) in trading securities (10,046) (5,695)
Decrease (increase) in other assets 10,862 (44,386)
Increase (decrease) in accounts payable and other liabilities (27,907) 37,698
Net cash provided by (used in) operating activities (45,921) 8,024
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of investment securities 0 (53,232)
Proceeds from sale of investment securities 0 4,693
Principal payments on investment securities 229,556 192,555
Proceeds from sale of OREO 126 2,972
Proceeds from sale of $990 million of multifamily loans 905,625 0
Net decrease in LHFI, excluding sale of $990 million of multifamily loans 194,086 18,958
Purchases of premises and equipment (490) (3,811)
Net cash received from acquisitions of branches 0 327,901
Proceeds from sale of Federal Home Loan Bank stock 305,113 222,814
Purchases of Federal Home Loan Bank stock (300,496) (228,802)
Net cash provided by investing activities 1,333,520 484,048
CASH FLOWS FROM FINANCING ACTIVITIES:    
Decrease in deposits, net (351,043) (1,065,463)
Changes in short-term borrowings, net (100,000) 84,000
Proceeds from other long-term borrowings 510,000 1,180,000
Repayment of other long-term borrowings (1,155,452) (535,000)
Repayment of finance lease principal (168) (456)
Dividends paid on common stock 0 (12,317)
Net cash used in financing activities (1,096,663) (349,236)
Net increase in cash and cash equivalents 190,936 142,836
Cash and cash equivalents, beginning of year 215,664 72,828
Cash and cash equivalents, end of year 406,600 215,664
Cash paid during the period for:    
Interest 298,498 217,132
Federal and state income taxes (net refunds) (637) (5,287)
Non-cash activities:    
LHFI foreclosed and transferred to OREO 0 3,576
Loans transferred from LHFI to LHFS, net 1,170 2,507
Ginnie Mae loans derecognized with the right to repurchase, net 506 1,301
New investments in low income housing tax credit partnerships ("LIHTC") 0 15,000
LIHTC amortization 5,684 4,732
Repurchase of common stock - award shares 134 316
Acquisition:    
Loans acquired 0 21,197
Premises and equipment and other assets 0 5,845
Liabilities assumed 0 377,412
Goodwill and other intangibles $ 0 $ 22,469
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans held for sale $ 20,312 $ 19,637
Commercial Portfolio Segment | Multifamily    
Loans held for sale $ 990,000  
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Business

HomeStreet, Inc., a State of Washington corporation organized in 1921 (the "Corporation"), is a Washington-based diversified financial services holding company whose operations are primarily conducted through its wholly owned subsidiaries (collectively the "Company") HomeStreet Statutory Trusts and HomeStreet Bank (the "Bank"), and the Bank's subsidiaries, Continental Escrow Company, HS Properties, Inc., HS Evergreen Corporate Center LLC, and Union Street Holdings LLC. The Company is principally engaged in commercial banking, mortgage banking and consumer/retail banking activities serving customers primarily in the Western United States.

The Bank, the Company’s principal operating subsidiary, was incorporated in the State of Washington in 1986, and, as a state-chartered non-member commercial bank, is subject to examination by the State of Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation ("FDIC").

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates.

Segments

Our chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as one single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes net interest income, noninterest income and noninterest expenses (compensation and benefits, information services, occupancy and general, administrative and other) at the consolidated level to manage the Company’s operations.

Reclassifications

Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. These reclassifications had no effect on prior years' net income or stockholders’ equity.

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash, due from banks, certificates of deposits with original maturities of less than ninety days, investment securities with original maturities of less than ninety days, money market funds and federal funds sold. The Bank maintains most of its excess cash at the Federal Reserve Bank of San Francisco ("FRBSF"), with well-capitalized correspondent banks or with other depository institutions at amounts less than the FDIC insured limits. Restricted cash of $6.5 million and $6.4 million at December 31, 2024 and 2023, respectively, is included in cash and cash equivalents.
Investment Securities

Investment securities for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investments not classified as trading securities nor as held-to-maturity ("HTM") securities are classified as AFS securities and recorded at fair value. Unrealized gains or losses on AFS securities are excluded from net income and reported net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Purchase premiums and discounts are recognized in interest income using the effective interest method over the contractual life of the securities. Purchase premiums or discounts related to mortgage-backed securities are amortized or accreted using projected prepayment speeds. Gains and losses on the sale of AFS and trading securities are recorded on the trade date and are determined using the specific identification method.

Trading securities, consisting of US Treasury notes, are used as economic hedges of our mortgage servicing rights, which are carried at fair value and included as investment securities on the balance sheet. Net gain or loss on trading securities are included in loan servicing income in the consolidated income statements.

The Company evaluates AFS securities in an unrealized loss position at the end of each quarter to determine whether the decline in value is temporary or permanent. An unrealized loss exists when the fair value of an individual security is less than its amortized cost basis. When qualitative factors indicate that a credit loss may exist, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. The Company recognizes an allowance for credit loss ("ACL") if a loss is determined to exist, measured as the difference between the present value of expected cash flows and the amortized cost basis of the security, limited by the amount that the security’s fair value is less than its amortized cost basis. The Company does not believe any of these securities that were in an unrealized loss position at December 31, 2024 or 2023 have a credit loss impairment.

The Company evaluates HTM securities at the end of each quarter to determine if any expected credit losses exist. The Company does not believe any expected credit losses existed for these securities as of December 31, 2024 and 2023.

Federal Home Loan Bank Stock

The Bank is a member of the Federal Home Loan Bank of Des Moines ("FHLB"), and as such, is required to own a certain amount of FHLB stock based on the level of borrowings and other factors. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Cash dividends accrued on FHLB stock are recorded as a component of interest income.

LHFS

Loans originated for sale in the secondary market or designated for whole loan sales are classified as LHFS. Management has elected the fair value option for all single family LHFS (originated with the intent to market for sale) and records these loans at fair value. Gains and losses from changes in fair value on LHFS are recognized in net gain on mortgage loan origination and sale activities within noninterest income. Direct loan origination costs and fees for single family loans originated as held for sale are recognized as noninterest expenses.

Multifamily and Small Business Administration ("SBA") LHFS are accounted for at the lower of amortized cost or fair value ("LOCOM"). LOCOM valuations are performed quarterly or at the time of transfer to or from LHFS. Related gains and losses are recognized in net gain on mortgage loan origination and sale activities. Direct loan origination costs and fees for multifamily and SBA loans classified as held for sale are deferred at origination and recognized in gain on sale in earnings at the time of sale.

LHFI

LHFI are reported at the principal amount outstanding, net of cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or pay-off. If subsequent changes occur as part of the balance sheet management process, the Company may decide to sell loans classified as LHFI. Any such loans held for an extended period before they are sold are transferred to LHFS and carried at the lower of amortized cost or fair value. Interest on loans is recognized at the contractual rate of interest and is only accrued if deemed collectible. Deferred fees and costs and premiums and discounts are amortized over the contractual terms of the underlying loans using the interest method or straight-line method.
Nonaccrual Loans

Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied first to reduce the outstanding principal balance. Generally, a loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans whose repayments are insured by the Federal Housing Administration ("FHA"), guaranteed by the Department of Veterans' Affairs ("VA") or Ginnie Mae ("GNMA") are maintained on accrual status even if 90 days or more past due.

Modifications to Borrowers Experiencing Financial Difficulty ("MBFD")

The Company provides MBFDs which may include other than insignificant delays in payment of amounts due, extension of the terms of the notes or reduction in the interest rates on the notes. In certain instances, the Company may grant more than one type of modification. The granting of modifications for the years ended December 31, 2024 and 2023 did not have a material impact on the ACL.

When a borrower experiences financial difficulty, we sometimes modify or restructure loans, which may include delays in payment of amounts due, forgiveness of principal, extension of the terms of the notes or a reduction in the interest rates on the notes. These loans are classified as MBFDs. MBFDs are loans modified for the purpose of alleviating temporary impairments to the borrower’s financial condition or cash flows. A workout plan between us and the borrower is designed to provide a bridge for borrower cash flow shortfalls in the near term.

ACL for LHFI

The ACL for LHFI is a valuation account that is deducted from the loans amortized cost basis to present the net amount expected to be collected on the loans. Loan balances are charged off against the ACL when management believes the non-collectability of a loan balance is confirmed. Recoveries are recorded as an increase to the ACL for LHFI to the extent they do not exceed the related charge-off amounts. The ACL for LHFI, as reported in our consolidated balance sheets, is adjusted by a provision for credit losses and reduced by the charge-offs of loan amounts, net of recoveries.

Management estimates the ACL balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix or delinquency levels or other relevant factors.
The credit loss estimation process involves procedures to appropriately consider the unique characteristics of its two loan portfolios, the consumer loan portfolio and the commercial loan portfolio. These two portfolios are further disaggregated into loan pools, the level at which credit risk is monitored. When computing ACL levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts. Determining the appropriateness of the ACL is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, based on the factors and forecasts then prevailing, may result in material changes in the ACL and provision for credit losses.
Credit Loss Measurement
The ACL level is influenced by current conditions related to loan volumes, loan asset quality ratings ("AQR") migration or delinquency status, historical loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses has two basic components: first, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics and second an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans.
The Company's ACL model methodology is to build a reserve rate using historical life of loan default rates combined with assessments of current loan portfolio information and current and forecasted economic environment and business cycle
information. The model uses statistical analysis to determine the life of loan default rates for the quantitative component and analyzes qualitative factors (Q-Factors) that assess the current loan portfolio conditions and forecasted economic environment and collateral values. Below is the general overview our ACL model.
Loans that Share Similar Risk Characteristics with Other Loans
For loans that share similar risk characteristics, loans are segregated into loan pools based on similar risk characteristics, like product types or primary source of repayment to estimate the ACL.
Historical Loss Rates
The Company analyzed loan data from a full economic cycle, to the extent that data was available, to calculate life of loan loss rates. Based on the current economic environment and available loan level data, it was determined the Loss Horizon Period ("LHP") should begin prior to the economic recession that began in 2007. The Company monitors and reviews the LHP on an annual basis to determine appropriate time frames to be included based on economic indicators.
Under current expected credit losses methodology ("CECL"), the Company groups pools of loans by similar risk characteristics. Using these pools, sub-pools are established at a more granular level incorporating delinquency status and original FICO or original LTV (for consumer loans) and risk ratings (for commercial loans). Using the pool and sub-pool structure, cohorts are established historically on a quarterly basis containing the population in these sets as of that point in time. After the establishment of these cohorts, the loans within the cohorts are then tracked from that point forward to establish long-term Probability of Default ("PD") at the sub-pool level and Loss Given Default ("LGD") for the pool level. These historical cohorts and their PD/LGD outcomes are then averaged together to establish expected PDs and LGDs for each sub-pool.

Once historical cohorts are established, the loans in the cohort are tracked moving forward for default events. The Company has defined default events as the first dollar of loss. If a loan in the cohort has experienced a default event over the LHP then the balance of the loan at the time of cohort establishment becomes part of the numerator of the PD calculation. The Loss Given Probability of Default ("LGPD") or Expected Loss ("EL") is the weighted average PD for each sub-pool cohort times the average LGD for each pool. The output from the model then is a series of EL rates for each loan sub-pool, which are applied to the related outstanding balances for each loan sub-pool to determine the ACL reserve based on historical loss rates.
Q-Factors
The Q-Factors adjust the expected historic loss rates for current and forecasted conditions that are not provided for in the historical loss information. The Company has established a methodology for adjusting historical expected loss rates based on these more recent or forecasted changes. The Q-Factor methodology is based on a blend of quantitative analysis and management judgment and reviewed on a quarterly basis.
Each of the thirteen factors in the FASB standard were analyzed for common risk characteristics and grouped into seven consolidated Q-Factors as listed below:
Qualitative FactorFinancial Instruments - Credit Losses
Portfolio Credit QualityThe borrower's financial condition, credit rating, credit score, asset quality or business prospects
The borrower's ability to make scheduled interest or principal payments
The volume and severity of past due financial assets and the volume and severity of adversely classified or rated financial assets
Remaining PaymentsThe remaining payment terms of the financial assets
The remaining time to maturity and the timing and extent of payments on the financial assets
Volume & NatureThe nature and volume of the entity's financial assets
Collateral ValuesThe value of underlying collateral on financial assets in which the collateral-dependent practical expedient has not been utilized
Economic
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: changes and expected changes in national, regional and local economic and business conditions and developments in which the entity operates, including the condition and expected condition of various market segments
Credit CultureThe entity's lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices, as well as knowledge of the borrower's operations or the borrower's standing in the community
The quality of the entity's credit review system
The experience, ability and depth of the entity's management, lending staff, and other relevant staff
Business Environment
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: regulatory, legal, or technological environment to which the entity has exposure
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: changes and expected changes in the general market condition of either the geographical area or the industry to which the entity has exposure
An eighth Q-Factor, Management Overlay, allows the Bank to adjust specific pools when conditions exist that were not contemplated in the model design that warrant an adjustment. The economic downturn caused by the COVID-19 pandemic and resulting accounting treatment of forbearances is an example of such a condition.
The Company has chosen two years as the forecast period based on management judgment and has determined that reasonable and supportable forecasts should be made for two of the Q-Factors: Economic and Collateral values.
Management has assigned weightings for each qualitative factor as well as individual metrics within each qualitative factor as to the relative importance of that factor or metric specific to each portfolio type. The Q-Factors above are evaluated using a seven-point scale ranging from significant improvement to significant deterioration.
The CECL Q-Factor methodology bounds the Q-Factor adjustments by a minimum and maximum range, based on the Bank’s own historical expected loss rates for each respective pool. The rating of the Q-Factor on the seven-point scale, along with the allocated weight, determines the final expected loss adjustment. The model is constructed so that the total of the Q-Factor adjustments plus the current expected loss rate cannot be outside the maximum or minimum two-year loss rate for that pool, which is aligned with the Bank's chosen forecast period. Loss rates beyond two years are not adjusted in the Q-Factor process and the model reverts to the historical mean loss rates. Management Overlays are not bounded by the historical maximums.
Quarterly, loan data is gathered to update the portfolio metrics analyzed in the Q-Factor model. The model is updated with current data and applicable forecasts, then the results are reviewed by management. After consensus is reached on all Q-Factor ratings, the results are input into the Q-Factor model and applied to the pooled loans which are reviewed to determine the adequacy of the reserve.
Additional details describing the model by portfolio are below:
Consumer Loan Portfolio
The consumer loan portfolio is comprised of the single family and home equity loan classes, which are underwritten after evaluating a borrower's capacity, credit and collateral. Other consumer loans are grouped with home equity loans. Capacity refers to a borrower's ability to make payments on the loan. Several factors are considered when assessing a borrower's capacity, including the borrower's employment, income, current debt, assets and level of equity in the property. Credit refers to how well a borrower manages current and prior debts as documented by a credit report that provides credit scores and current and past information about the borrower's credit history. Collateral refers to the type and use of property, occupancy and market value. Property appraisals may be obtained to assist in evaluating collateral. Loan-to-property value and debt-to-income ratios, loan amount and lien position are considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends such as conditions that negatively affect housing prices, demand for housing and levels of unemployment.
Consumer Loan Portfolio Loss Rate Model
Under CECL, the Bank utilizes pools of loans that are grouped by similar risk characteristics: Single Family and Home Equity Loans. Sub-Pools are established at a more granular level for the calculation of PDs, incorporating delinquency status, original FICO and original LTV.
Consumer portfolio cohorts are established by grouping each ACL sub-pool at a point in time. Once historical cohorts are established, the loans in the cohort are tracked moving forward for default events.

The Q-Factors adjust the expected historic loss rates for current and forecasted conditions that are not provided for in the historical loss information. For Single Family loans all Q-Factors noted above are evaluated. For the Home Equity loans, collateral values are not evaluated as the Bank has determined the FICO score trends are a more relevant predictor of default than current collateral value for those types of loans. These factors are evaluated based on current conditions and forecasts (as applicable), using a seven-point scale ranging from significant improvement to significant deterioration.
Commercial Loan Portfolio
The commercial loan portfolio is comprised of the non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loan classes, whose underwriting standards consider the factors described for single family and home equity loan classes as well as others when assessing the borrower's and associated guarantor's or other related party’s financial position. These other factors include assessing liquidity, net worth, leverage, other outstanding indebtedness of the borrower, the quality and reliability of cash expected to flow through the borrower (including the outflow to other lenders) and prior experiences with the borrower.
This information is used to assess financial capacity, profitability and experience. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing.
Commercial Loan Portfolio Loss Rate Model
The Bank has subdivided the commercial loan portfolio into the following ACL reporting pools to more accurately group risk characteristics: Commercial Business, Owner Occupied CRE, Multifamily, Multifamily Construction, CRE, CRE Construction, Single Family Construction to Permanent, and Single Family Construction, which includes lot, land and acquisition and development loans. ACL sub-pools are established at a more granular level for the calculation of PDs, utilizing risk rating.

As outlined in the Bank’s policies, commercial loans pools are non-homogenous and are regularly assessed for credit quality. For purposes of CECL, loans are sub-pooled according to the following AQR Ratings:

1-6: These loans meet the definition of “Pass" assets. They are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell in a timely manner, of any underlying collateral. The Bank further uses the available AQR ratings for components of the sub-pools.
7: These loans meet the regulatory definition of “Special Mention.” They contain potential weaknesses, that if uncorrected may result in deterioration of the likelihood of repayment or in the Bank’s credit position.
8: These loans meet the regulatory definition of “Substandard.” They are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. They have well-defined weaknesses and have unsatisfactory characteristics causing unacceptable levels of risk.
Commercial portfolio cohorts are established by grouping each ACL sub-pool at a point in time. Once historical cohorts are established, the loans in the cohort are tracked moving forward for default events. The Q-Factors adjust the expected historic loss rates for current and forecasted conditions that are not provided for in the historical loss information. All the Q-Factors noted above are evaluated for Commercial portfolio loans except for Commercial Business and Owner Occupied CRE loans which exclude the collateral values Q-Factor. The Company has determined that these loans are primarily underwritten by evaluating the cash flow of the business and not the underlying collateral. Factors above are evaluated based on current conditions and forecasts (as applicable), using a seven-point scale ranging from significant improvement to significant deterioration.
Loans That Do Not Share Risk Characteristics with Other Loans
For a loan that does not share risk characteristics with other loans, expected credit loss is measured on net realizable value that is the difference between the discounted value of the expected future cash flows, based on the original effective interest rate and the amortized cost basis of the loan. For these loans, we recognize expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan fees and costs), except when the loan is collateral dependent, which is when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated costs to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.
The starting point for determining the fair value of collateral is through obtaining external appraisals. Generally, collateral values for collateral dependent loans are updated every twelve months, either from external third parties or in-house certified appraisers. A third-party appraisal is required at least annually for substandard loans and OREO. For performing consumer loans secured by real estate that are classified as collateral dependent, the Bank determines the fair value estimates quarterly using automated valuation services. Once the expected credit loss amount is determined, an ACL is recorded equal to the expected credit loss and included in the ACL. If no credit loss is expected to occur, then no ACL is recognized for this loan. If the expected credit loss is determined to be permanent or not recoverable, the expected credit loss will be charged off. Factors considered by management in determining if the expected credit loss is permanent or not recoverable include whether management judges the loan to be uncollectible, repayment is deemed to be protracted beyond reasonable time frames, or the loss becomes evident owing to the borrower's lack of assets or, for single family loans, the loan is 180 days or more past due unless both well-secured and in the process of collection.

ACL for Off-Balance Sheet Credit Exposures

The Bank estimates expected credit losses over the contractual period in which the Bank is exposed to risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Bank. Reserves are required for off-balance sheet credit exposures that are not unconditionally cancellable. The ACL on unfunded loan commitments is based on an estimate of unfunded commitment utilization over the life of the loan, applying the EL rate to the estimated utilization balance as of the reporting period end date.

Other Real Estate Owned

Real estate properties acquired through, or in lieu of, loan foreclosure are recorded at net realizable value (fair value of collateral less estimated costs to sell). At the time of possession, an appraisal is obtained and any excess of the loan balance over the net realizable value is charged against the ACL. After foreclosure, valuations are periodically performed by management. Any subsequent declines in fair value are recorded as a charge to current period earnings with a corresponding write-down to the asset. All legal fees and direct costs, including foreclosure and other related costs are expensed as incurred.

Mortgage Servicing Rights

MSRs are recognized as separate assets on our consolidated balance sheets when we retain the right to service loans that we have sold or purchase rights to service. We initially record all MSRs at fair value. For subsequent measurements, single family MSRs are accounted for at fair value, with changes in fair value recorded through current period earnings, while multifamily and SBA MSRs are accounted for at the lower of amortized cost or fair value.

Subsequent fair value measurements of MSRs are determined by considering the present value of estimated future net servicing cash flows. Changes in the fair value of MSRs result from changes in (1) model inputs and assumptions and (2) modeled amortization, representing the collection and realization of expected cash flows and curtailments over time. The significant
model inputs used to measure the fair value of MSRs include assumptions regarding market interest rates, projected prepayment speeds, discount rates, estimated costs of servicing and other income and additional expenses associated with the collection of delinquent loans.

Multifamily and SBA MSRs are evaluated periodically for impairment based upon the fair value of the MSRs as compared to amortized cost. Impairment is determined by comparing the fair value of the portfolio based on predominant risk characteristic loan type, to amortized cost. Impairment is recognized to the extent that fair value is less than the capitalized amount of the portfolio.

For single family MSRs, loan servicing income includes fees earned for servicing the loans and the changes in fair value over the reporting period of both our MSRs and the derivatives used to economically hedge our MSRs. For other MSRs, loan servicing income includes fees earned for servicing the loans less the amortization of the related MSRs and any impairment adjustments.

Revenue Recognition

Descriptions of our primary revenue-generating activities that fall within the scope of Accounting Standards Committee ("ASC") Topic 606 Revenue Recognition and are presented in our consolidated income statements as follows:

Depositor and other retail banking fees (in Deposit Fees)

Depositor and other retail banking fees consist of monthly service fees and other deposit account related fees. The Company's performance obligation for these fees is generally satisfied, and the related revenue recognized over the period in which the service is provided.

Commission Income (in Other Noninterest Income)

Commission income primarily consists of revenue received on insurance policies. The Company's performance obligation for commissions is generally satisfied, and the related revenue generally recognized over the course of the policy.

Credit Card Fees (in Other Noninterest Income)

The Company offers credit cards to its customers through a third party and earns a fee on each transaction and a fee for each new account activation on a net basis. Revenue is recognized when the services are performed.

Sale of Other Real Estate Owned (in Other Noninterest Income)

A gain or loss, the difference between the cost basis of the property and its sale price, on other real estate owned is recognized when the performance obligation is met, which is at the time the property title is transferred to the buyer. To record a sale of OREO, the Company evaluates if: (a) a commitment on the buyer’s part exists, (b) collection is probable in circumstances where the initial investment is minimal and (c) the buyer has obtained control of the asset, including the significant risks and rewards of ownership. If there is no commitment on the buyer’s part, collection is not probable or the buyer has not obtained control of the asset, then a gain will not be recognized.

Premises and Equipment

Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which generally range from 3 to 20 years. The cost of leasehold improvements is amortized using the straight-line method over the shorter of the estimated useful life of the asset or the term of the related leases. The Company periodically evaluates premises and equipment for impairment.
Leases

We determine if an arrangement is a lease at inception. Operating and finance leases are included in lease right-of-use ("ROU") assets, and lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The lease liability is recognized at commencement date based on the present value of lease payments over the lease term. The right-of-use asset is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as prepaid rent, lease incentives and deferred rent. As the rate implicit in most of our leases are not readily determinable, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease contract at commencement date. We have lease agreements with lease and non-lease components, which are generally accounted for separately for real estate leases.

Certain of our lease agreements include rental payments that adjust periodically based on changes in the Consumer Price Index ("CPI"). Subsequent increases in the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. The ROU assets and lease liabilities are not re-measured as a result of changes in the CPI.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for our financing leases is comprised of the amortization of the right-of-use asset and interest expense recognized based on the effective interest method.

We use the long-lived assets impairment accounting guidance to determine whether an ROU asset is impaired, and if impaired, the amount of loss to recognize. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These could include vacating the leased space, obsolescence, or physical damage to a facility. If an impairment loss is recognized for a ROU asset, the adjusted carrying amount of the ROU asset would be its new accounting basis. The remaining ROU asset (after the impairment write-down) is amortized on a straight-line basis over the remaining lease term.

Branch Acquisition

On February 10, 2023, the Company completed its acquisition of three branches in southern California, whereby we assumed $376 million in deposits and purchased $21 million in loans. The application of the acquisition method of accounting resulted in recording goodwill of $12 million, and a core deposit intangible of $11 million.

Goodwill and Other Intangible Assets

Goodwill is recorded upon completion of a business combination as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill has been determined to have an indefinite useful life and is not amortized but tested for impairment at least annually or more frequently if events and circumstances occur that indicate it is more likely than not the fair value of the reporting unit is less than its carrying value necessitating an impairment test. The Company performs its annual impairment testing in the third quarter of each year, or sooner if a triggering event occurs. Triggering events include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained declines in the Company’s stock price or market capitalization, considered both in absolute terms and relative to peers.

As a result of sustained decreases in the Company’s stock price and associated market value during the second quarter of 2023, the Company conducted an impairment analysis of its goodwill as of June 30, 2023. We applied an income-based valuation approach using the Company’s strategic forecast, general market growth assumptions and other market-based inputs, which determined that goodwill was impaired as the indicated enterprise fair value of the Company was lower than the book value of equity as of the measurement date. As a result, in the second quarter of 2023, we recorded an impairment charge of our entire goodwill balance of $39.9 million as the deficit of enterprise fair value to book value of equity exceeded the amount of goodwill on the balance sheet. This was a non-cash charge to earnings and had no impact on tangible or regulatory capital, cash flows or our liquidity position. The following table presents the changes in the carrying amount of goodwill in 2023:
(in thousands)
Balance, December 31, 2022$27,900 
Additions - branch acquisition
11,957 
Goodwill impairment charge(39,857)
Balance December 31, 2023$— 

Intangible assets with definite useful lives, such as core deposit intangible assets arising from bank and branch acquisitions, are amortized over their estimated useful lives.

Securities Sold Under Agreements to Repurchase

From time to time, the Company may enter into sales of securities under agreements to repurchase ("repurchase agreements"). Repurchase agreements are accounted for as financing arrangements with the obligation to repurchase securities sold reflected as a liability on the consolidated balance sheets. The securities underlying the repurchase agreements continue to be recognized as investment securities in the consolidated balance sheet.

Income Taxes

Deferred tax assets and liabilities arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Deferred tax assets and tax carryforwards are only recognized if, in the opinion of management, it is more likely than not that the deferred tax assets will be fully realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We are subject to federal income tax and also state and local income taxes in a number of different jurisdictions.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in general, administrative and other expense.

Derivatives and Hedging Activities

In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The fair value of derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet. All derivatives are evaluated at inception as to whether or not they are hedge accounting or non-hedge accounting activities. For derivative instruments designated as non-hedge accounting activities (also referred to as economic hedges), the change in fair value is recognized currently in earnings. Gains and losses on derivative contracts utilized for economically hedging the mortgage pipeline are recognized as part of the net gain on mortgage loan origination and sale activities within noninterest income. Gains and losses on derivative contracts utilized for economically hedging our single family MSRs are recognized as part of loan servicing income within noninterest income.

For derivative instruments designated as hedge accounting activities, a qualitative analysis is performed at inception to determine if the derivative instrument is highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk during the period that the hedge is designated. Subsequently, a qualitative assessment of a hedge’s effectiveness is performed on a quarterly basis. All derivative instruments that qualify and are designated for hedge accounting are recorded at fair value and classified as either a hedge of the fair value of a recognized asset or liability ("fair value hedge") or a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"). Changes in the fair value of a derivative that is highly effective and designated as a fair value hedge is recognized in earnings and the change in fair value on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized currently in earnings. Changes in the fair value of a derivative that is highly effective and designated as a cash flow hedge are recorded in other comprehensive income (loss) until cash flows of the hedged item are realized. All hedge amounts recognized in earnings are presented in the same income statement line item as the earnings effect of the hedged item.

If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a
hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts remain within other comprehensive income (loss).

Derivative instruments expose us to credit risk in the event of nonperformance by counterparties. This risk consists primarily of the termination value of agreements where the Company is in a favorable position. The Company minimizes counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, as appropriate.

The Company also executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are economically hedged by simultaneously entering into an offsetting interest rate swap that the Company executes with a third party, such that the Company minimizes its net risk exposure.

Share-Based Compensation

The Company issues various forms of stock-based compensation awards annually, including restricted stock units ("RSUs") and performance stock units ("PSUs"). Compensation expense related to RSUs is based on the fair value of the underlying stock on the award date and is recognized over the period in which an employee is required to provide services in exchange for the award, generally the vesting period. PSUs are subject to market-based vesting criteria in addition to a requisite service period and cliff vest based on those conditions at the end of three years. The grant date fair value of PSUs is determined through the use of an independent third party which employs the use of a Monte Carlo simulation. The Monte Carlo simulation estimates grant date fair value using certain input assumptions such as: expected volatility, award term, expected risk-free rate of interest and expected dividend yield on the Company’s common stock and also incorporates into the grant date fair value calculation the probability that the performance targets will be achieved. Forfeitures of stock-based awards are recognized when they occur.

Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value is an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular instruments. Fair value measures are classified according to a three-tier fair value hierarchy, which is based on the observability of inputs used to measure fair value. Changes in assumptions or in market conditions could significantly affect these estimates.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Contingencies

Contingent liabilities, including those that exist as a result of a guarantee or indemnification, are recognized when it becomes probable that a loss has been incurred and the amount of the loss is reasonably estimable. For indemnifications provided in sales agreements, a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction.
Earnings per Share

Earnings per share of common stock is calculated on both a basic and diluted basis, based on the weighted average number of common and common equivalent shares outstanding. Basic earnings per share excludes potential dilution from common equivalent shares, such as those associated with stock-based compensation awards, and is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as common equivalent shares associated with stock-based compensation awards, were exercised or converted into common stock that would then share in the net earnings of the Company. Potential dilution from common equivalent shares is determined using the treasury stock method, reflecting the potential settlement of stock-based compensation awards resulting in the issuance of additional shares of the Company’s common stock. Stock-based compensation awards that would have an anti-dilutive effect have been excluded from the determination of diluted earnings per share.

Marketing Costs

The Company expenses marketing costs, including advertising, in the period incurred. We incurred $3.0 million and $4.2 million in marketing costs during 2024 and 2023, respectively.

Recent Accounting Developments

In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. We adopted ASU 2023-02 in 2024 and it did not have a material impact on the Company’s financial position or results of operations.

In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." The amendments in ASU 2023-06 modify the disclosure or presentation requirements of a variety of Topics in the Codification, with the intention of clarifying or improving them and aligning the requirements in the codification with the SEC's regulations (and will be removed from the SEC regulations). ASU 2023-06 should be adopted prospectively, and the effective date varies and is determined for each individual disclosure based on the effective date of the SEC's removal of the related disclosure. We are assessing the impact of ASU 2023-06 and believe it will not have an impact on the Company's financial position or results of operation as it impacts disclosures only.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 and should be applied retrospectively. We adopted ASU 2023-07 in 2024 and it did not have an impact on the Company's financial position or results of operation as it impacts disclosures only.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The adoption of ASU 2023-09 will not have an impact on the Company's financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. The adoption of ASU
2024-03 will not have an impact on the Company's financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures.
v3.25.0.1
INVESTMENT SECURITIES
12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES:
The following tables set forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and HTM:
At December 31, 2024
(in thousands)Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
AFS
Mortgage-backed securities ("MBS"):
Residential$174,887 $229 $(7,654)$167,462 
Commercial54,620 — (6,978)47,642 
Collateralized mortgage obligations ("CMOs")
Residential349,348 36 (31,940)317,444 
Commercial59,725 14 (4,794)54,945 
Municipal bonds433,162 95 (54,998)378,259 
Corporate debt securities31,136 — (6,192)24,944 
U.S. Treasury securities22,306 — (2,319)19,987 
Agency debentures10,320 — (1,044)9,276 
Total$1,135,504 $374 $(115,919)$1,019,959 
HTM
   Municipal bonds $2,301 $— $(28)$2,273 

At December 31, 2023
(in thousands)Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
AFS
MBS:
Residential$194,141 $117 $(10,460)$183,798 
Commercial55,235 — (7,479)47,756 
CMOs:
Residential473,269 (33,539)439,738 
Commercial63,456 — (6,059)57,397 
Municipal bonds452,057 670 (47,853)404,874 
Corporate debt securities45,611 34 (7,098)38,547 
U.S. Treasury securities22,658 — (2,474)20,184 
Agency debentures60,202 (1,302)58,905 
Total$1,366,629 $834 $(116,264)$1,251,199 
HTM
Municipal bonds$2,371 $— $(40)$2,331 

At December 31, 2024 and 2023, the Company held $35 million and $25 million, respectively, of trading securities consisting of U.S. Treasury notes used as economic hedges of our single family mortgage servicing rights, which are carried at fair value and included with investment securities on the balance sheet. For 2024 and 2023, net losses of $1.7 million and $0.5 million on trading securities, respectively, were recorded in servicing income.

MBS and CMOs represent securities issued or guaranteed by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by
either collateral or revenues from the specific project being financed) issued by various municipal organizations. As of December 31, 2024 and 2023, substantially all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon nationally recognized statistical rating organizations where available and, where not available, based upon internal ratings.

Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:
At December 31, 2024
 Less than 12 months12 months or moreTotal
(in thousands)Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
AFS
MBS:
Residential
$(2)$532 $(7,652)$158,044 $(7,654)$158,576 
Commercial— — (6,978)47,642 (6,978)47,642 
CMOs:
Residential(78)7,481 (31,862)293,297 (31,940)300,778 
Commercial— — (4,794)51,834 (4,794)51,834 
Municipal bonds(810)28,361 (54,188)340,571 (54,998)368,932 
Corporate debt securities— — (6,192)24,944 (6,192)24,944 
U.S. Treasury securities— — (2,319)19,987 (2,319)19,987 
Agency debentures— — (1,044)9,276 (1,044)9,276 
Total$(890)$36,374 $(115,029)$945,595 $(115,919)$981,969 
HTM
Municipal bonds$— $— $(28)$2,273 $(28)$2,273 

At December 31, 2023
 Less than 12 months12 months or moreTotal
(in thousands)Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
AFS
MBS:
Residential$(3)$1,145 $(10,457)$177,393 $(10,460)$178,538 
Commercial— 61 (7,479)47,695 (7,479)47,756 
CMOs:
Residential(368)83,815 (33,171)348,914 (33,539)432,729 
Commercial— — (6,059)57,397 (6,059)57,397 
Municipal bonds(73)7,489 (47,780)364,775 (47,853)372,264 
Corporate debt securities— — (7,098)28,513 (7,098)28,513 
U.S. Treasury securities— — (2,474)20,184 (2,474)20,184 
Agency debentures(135)42,897 (1,167)11,003 (1,302)53,900 
Total$(579)$135,407 $(115,685)$1,055,874 $(116,264)$1,191,281 
HTM
Municipal bonds$— $— $(40)$2,331 $(40)$2,331 

The Company has evaluated AFS securities in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of December 31, 2024 and 2023. The Company bases this conclusion in part on its periodic review of the credit ratings of the AFS securities or reviews of the financial condition of the issuers. In addition, as of December 31, 2024 and 2023, the Company had
not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis.
The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield.

 At December 31, 2024
 Within one yearAfter one year
through five years
After five years
through ten years
After
ten years
Total
(dollars in thousands)Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
AFS
Municipal bonds$— — %$15,531 3.88 %$70,678 2.92 %$292,050 2.93 %$378,259 2.97 %
Corporate debt securities— — %2,735 2.08 %22,209 4.27 %— — %24,944 4.03 %
U.S. Treasury securities— — %19,987 1.15 %— — %— — %19,987 1.15 %
Agency debentures— — %1,770 2.13 %4,442 2.17 %3,064 2.14 %9,276 2.15 %
Total $— — %$40,023 2.32 %$97,329 3.19 %$295,114 2.92 %$432,466 2.93 %
HTM
Municipal bonds$2,273 2.29 %$— — %$— — %$— — %$2,273 2.29 %

 
 At December 31, 2023
 Within one yearAfter one year
through five years
After five years
through ten years
After
ten years
Total
(dollars in thousands)Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
AFS
Municipal bonds$— — %$5,856 1.84 %$60,775 3.36 %$338,243 3.01 %$404,874 3.04 %
Corporate debt securities4,425 3.53 %12,714 4.95 %21,408 3.89 %— — %38,547 4.21 %
U.S. Treasury securities— — %20,184 1.14 %— — %— — %20,184 1.14 %
Agency debentures16,977 4.93 %30,925 5.2 %7,758 2.15 %3,245 2.17 %58,905 4.51 %
Total $21,402 4.64 %$69,679 3.64 %$89,941 3.40 %$341,488 3.00 %$522,510 3.21 %
HTM
Municipal bonds$— — %$2,331 2.29 %$— — %$— — %$2,331 2.29 %

The weighted-average yield is computed using the contractual coupon for each security weighted based on the fair value of each security. MBS and CMOs are excluded from the tables above because such securities are not due on a single maturity date. The weighted average yield of MBS and CMOs as of December 31, 2024 and 2023 was 3.01% and 3.21%, respectively.

Sales of AFS investment securities were as follows: 
 Years Ended December 31,
(in thousands)20242023
Proceeds$— $4,693 
Gross gains— 
Gross losses— — 
The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law.
At December 31,
(in thousands)20242023
Federal Reserve Bank to secure existing or potential borrowings
$906,475 $647,104 
Washington, Oregon and California State to secure public deposits195,212 10,654 
Other securities pledged1,334 1,440 
Total securities pledged as collateral$1,103,021 $659,198 

The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have minimal credit risk.

Tax-exempt interest income on investment securities was $11.1 million and $11.3 million for 2024 and 2023, respectively.
v3.25.0.1
LOANS AND CREDIT QUALITY
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
LOANS AND CREDIT QUALITY LOANS AND CREDIT QUALITY:
The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following:
At December 31,
(in thousands)20242023
CRE
Non-owner occupied CRE$570,750 $641,885 
Multifamily2,992,675 3,940,189 
Construction/land development472,740 565,916 
Total4,036,165 5,147,990 
Commercial and industrial loans
Owner occupied CRE361,997 391,285 
Commercial business312,004 359,049 
Total
674,001 750,334 
Consumer loans
Single family 1,109,095 1,140,279 
Home equity and other412,535 384,301 
Total (1)
1,521,630 1,524,580 
                  Total LHFI6,231,796 7,422,904 
ACL
(38,743)(40,500)
Total LHFI less ACL
$6,193,053 $7,382,404 
(1)    Includes $1.3 million at December 31, 2024 and 2023, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated income statements.

Loans totaling $4.0 billion and $5.1 billion at December 31, 2024 and 2023, respectively, were pledged to secure existing or potential borrowings from the FHLB and loans totaling $1.4 billion and $1.2 billion at December 31, 2024 and 2023, respectively, were pledged to secure existing or potential borrowings from the FRBSF.

It is the Company's policy to make loans to officers, directors and their associates in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with other persons. The following is a summary of activity during the years ended December 31, 2024 and 2023 with respect to such aggregate loans to these related parties and their associates:

Years Ended December 31,
(in thousands)20242023
Beginning balance$1,932 $1,978 
New loans and advances, net of principal repayments(73)(46)
Ending balance$1,859 $1,932 

Credit Risk Concentrations

Concentrations of credit risk arise when a number of customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.

LHFI are primarily secured by real estate located in the Pacific Northwest and California. At December 31, 2024 and 2023, single family loans in the state of Washington represented 13% and 11% of the total LHFI portfolio, respectively. At December 31, 2024 and 2023, multifamily loans in the state of California represented 30% and 36% of the total LHFI portfolio, respectively.
Credit Quality
Management considers the level of ACL to be appropriate to cover credit losses expected over the life of the loans for the LHFI portfolio. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Bank’s historical loss experience and eight qualitative factors for current and forecasted periods.

As of December 31, 2024, the historical expected loss rates increased when compared to December 31, 2023. During 2024, expected loss rates increased primarily due to product mix and risk level composition changes and specific reserves on commercial loans, which were partially offset by a reduction in loan balances resulting from our $990 million loan sale. As of December 31, 2024, the Bank expects slight near-term deterioration in commercial collateral values offset by improvement in commercial and single family collateral values in later periods of the two-year forecast period in the markets in which it operates. Additionally, over the near term and two-year forecast period in the markets in which it operates, the Bank expects neutral economic conditions.

The Company maintains a separate allowance for unfunded loan commitments which is included in accounts payable and other liabilities on our consolidated balance sheets. The allowance for unfunded commitments was $1.1 million and $1.8 million at December 31, 2024 and 2023, respectively.
The Bank has elected to exclude accrued interest receivable from the evaluation of the ACL. Accrued interest on LHFI was $25.1 million and $28.9 million at December 31, 2024 and 2023, respectively, and was reported in other assets on the consolidated balance sheets.
Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:
 Years Ended December 31,
(in thousands)20242023
Beginning balance$40,500 $41,500 
Provision for credit losses677 (67)
Net (charge-offs) recoveries(2,434)(933)
Ending balance$38,743 $40,500 
Allowance for unfunded commitments
Beginning balance$1,823 $2,197 
Provision for credit losses(677)(374)
Ending balance$1,146 $1,823 
Provision for credit losses:
Allowance for credit losses-loans$677 $(67)
Allowance for unfunded commitments(677)(374)
Total$— $(441)

Activity in the ACL by loan portfolio and loan sub-class was as follows:

Year Ended December 31, 2024
(in thousands)Beginning
balance
Charge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$2,610 $— $— $(871)$1,739 
Multifamily13,093 — — 1,816 14,909 
Construction/land development
Multifamily construction3,983 — — (3,134)849 
CRE construction189 — — (123)66 
Single family construction7,365 — — (628)6,737 
Single family construction to permanent672 — — (488)184 
Total27,912 — — (3,428)24,484 
Commercial and industrial loans
Owner occupied CRE899 — — (323)576 
Commercial business2,950 (2,963)522 6,377 6,886 
Total3,849 (2,963)522 6,054 7,462 
Consumer loans
Single family5,287 — (1,684)3,610 
Home equity and other3,452 (178)178 (265)3,187 
Total8,739 (178)185 (1,949)6,797 
Total ACL$40,500 $(3,141)$707 $677 $38,743 
Year Ended December 31, 2023
(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$2,102 $— $— $508 $2,610 
Multifamily10,974 — — 2,119 13,093 
Construction/land development
Multifamily construction998 — — 2,985 3,983 
CRE construction196 — — (7)189 
Single family construction12,418 — — (5,053)7,365 
Single family construction to permanent1,171 — — (499)672 
Total27,859 — — 53 27,912 
Commercial and industrial loans
Owner occupied CRE1,030 — — (131)899 
Commercial business3,247 (1,062)87 678 2,950 
Total4,277 (1,062)87 547 3,849 
Consumer loans
Single family5,610 — 23 (346)5,287 
Home equity and other3,754 (319)338 (321)3,452 
Total9,364 (319)361 (667)8,739 
Total ACL$41,500 $(1,381)$448 $(67)$40,500 


Credit Quality Indicators
Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with applicable bank regulations. The Company's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The risk rating of 9 is not used.
Per the Company's policies, most commercial loans pools are non-homogenous and are regularly assessed for credit quality. The rating categories can be generally described by the following groupings for non-homogeneous loans:
1-6: These loans meet the definition of "Pass" assets. They are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell in a timely manner, of any underlying collateral.
7: These loans meet the regulatory definition of "Special Mention." They contain potential weaknesses, that if uncorrected may result in deterioration of the likelihood of repayment or in the Bank’s credit position.
8: These loans meet the regulatory definition of "Substandard." They are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. They have well-defined weaknesses and have unsatisfactory characteristics causing unacceptable levels of risk.
10: A loan, or the portion of a loan determined to meet the regulatory definition of “Loss.” The amounts classified as loss have been charged-off.

The risk rating categories can be generally described by the following groupings for homogeneous loans:
1-6: These loans meet the definition of "Pass" assets. A homogenous "Pass" loan is typically risk rated based on payment performance.
7: These loans meet the regulatory definition of “Special Mention.” A homogeneous special mention loan, risk rated 7, is less than 90 days past due from the required payment date at month-end.
8: These loans meet the regulatory definition of “Substandard.” A homogeneous substandard loan, risk rated 8, is 90 days or more past due from the required payment date at month-end.
10: These loans meet the regulatory definition of "Loss." A closed-end homogeneous loan not secured by real estate is risk rated 10 when past due 120 cumulative days or more from the contractual due date. Closed-end homogenous loans secured by real estate and all open-end homogenous loans are risk rated 10 when past due 180 cumulative days or more
from the contractual due date. These loans, or the portion of these loans classified as loss, are generally charged-off in the month in which the applicable past due period elapses.

Small balance commercial loans are generally considered homogenous unless 30 days or more past due. The risk rating classification for such loans are based on the non-homogenous definitions noted above.
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:
At December 31, 2024
(in thousands)20242023202220212020
2019 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$— $1,441 $70,128 $71,493 $39,885 $347,058 $(36)$— $529,969 
Special Mention— — — — — 24,551 — — 24,551 
Substandard— — — — — 16,230 — — 16,230 
Total — 1,441 70,128 71,493 39,885 387,839 (36)— 570,750 
Multifamily
Pass1,650 106,415 1,538,855 643,044 257,110 255,643 — — 2,802,717 
Special Mention— — 66,217 4,789 73,308 23,835 — — 168,149 
Substandard— — 15,602 — — 6,207 — — 21,809 
Total1,650 106,415 1,620,674 647,833 330,418 285,685 — — 2,992,675 
Multifamily construction
Pass— 31,349 67,557 — — — — — 98,906 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total— 31,349 67,557 — — — — — 98,906 
CRE construction
Pass19 7,198 — — — — — — 7,217 
Special Mention— — — — — — — — — 
Substandard— — — — 3,821 — — — 3,821 
Total 19 7,198 — — 3,821 — — — 11,038 
Single family construction
Pass121,305 22,412 5,346 7,252 — 69 164,442 — 320,826 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total 121,305 22,412 5,346 7,252 — 69 164,442 — 320,826 
Single family construction to permanent
Current
6,153 9,719 17,598 7,977 523 — — — 41,970 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total 6,153 9,719 17,598 7,977 523 — — — 41,970 
Owner occupied CRE
Pass5,431 10,501 58,423 33,371 41,533 168,082 43 317,387 
Special Mention— 1,789 6,129 7,602 317 26,203 — — 42,040 
Substandard— — 331 — — 2,239 — — 2,570 
Total 5,431 12,290 64,883 40,973 41,850 196,524 43 361,997 
Commercial business
Pass26,706 15,721 36,209 20,347 28,207 28,836 123,003 700 279,729 
Special Mention— — 959 2,380 638 615 386 — 4,978 
Substandard243 406 11,885 — 7,192 4,628 2,920 23 27,297 
Total 26,949 16,127 49,053 22,727 36,037 34,079 126,309 723 312,004 
Total commercial portfolio$161,507 $206,951 $1,895,239 $798,255 $452,534 $904,196 $290,718 $766 $4,710,166 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

At December 31, 2024
(in thousands)20242023202220212020
2019 and prior
RevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$566 $30,940 $378,613 $303,920 $139,159 $251,322 $— $— $1,104,520 
Past due:
30-59 days
— — 452 — — 1,673 — — 2,125 
60-89 days
— — — — — 440 — — 440 
90+ days
— — — — — 2,010 — — 2,010 
Total
566 30,940 379,065 303,920 139,159 255,445 — — 1,109,095 
Home equity and other
Current
1,606 936 1,528 126 85 1,932 399,531 4,449 410,193 
Past due:
30-59 days
25 — — — 474 62 566 
60-89 days
— — — — 626 — 633 
90+ days
— — — — — 10 1,127 1,143 
Total1,631 943 1,533 126 85 1,942 401,758 4,517 412,535 
Total consumer portfolio (1)
$2,197 $31,883 $380,598 $304,046 $139,244 $257,387 $401,758 $4,517 $1,521,630 
Total LHFI$163,704 $238,834 $2,275,837 $1,102,301 $591,778 $1,161,583 $692,476 $5,283 $6,231,796 
(1)    Includes $1.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:
At December 31, 2023
(in thousands)20232022202120202019
2018 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$1,499 $70,388 $71,217 $41,235 $118,900 $286,379 $601 $— $590,219 
Special Mention— — — — 686 34,177 — — 34,863 
Substandard— — — — 16,230 — 573 — 16,803 
Total1,499 70,388 71,217 41,235 135,816 320,556 1,174 — 641,885 
Multifamily
Pass108,274 1,813,647 1,151,677 475,708 189,567 177,712 — — 3,916,585 
Special Mention— — 3,942 12,887 2,368 1,344 — — 20,541 
Substandard— — — — — 3,063 — — 3,063 
Total108,274 1,813,647 1,155,619 488,595 191,935 182,119 — — 3,940,189 
Multifamily construction
Pass(198)56,013 112,234 — — — — — 168,049 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total(198)56,013 112,234 — — — — — 168,049 
CRE construction
Pass— 14,685 — — — — — 14,692 
Special Mention— — — — — — — — — 
Substandard— — — 3,821 — — — — 3,821 
Total— 14,685 3,821 — — — — 18,513 
Single family construction
Pass75,305 39,621 12,294 — — 72 146,758 — 274,050 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total75,305 39,621 12,294 — — 72 146,758 — 274,050 
Single family construction to permanent
Current
27,114 56,469 19,871 1,850 — — — — 105,304 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total27,114 56,469 19,871 1,850 — — — — 105,304 
Owner occupied CRE
Pass12,459 68,399 39,629 43,399 65,392 111,199 1,122 341,601 
Special Mention1,871 1,478 9,290 — 2,956 28,784 — — 44,379 
Substandard— — — 253 5,051 — — 5,305 
Total14,331 69,877 48,919 43,399 68,601 145,034 1,122 391,285 
Commercial business
Pass17,970 45,892 27,227 33,404 16,198 24,903 157,656 973 324,223 
Special Mention— 11,465 2,891 — 452 38 3,485 — 18,331 
Substandard— — 2,134 7,601 3,788 1,886 1,021 65 16,495 
Total17,970 57,357 32,252 41,005 20,438 26,827 162,162 1,038 359,049 
Total commercial portfolio$244,302 $2,163,372 $1,467,091 $619,905 $416,790 $674,608 $310,096 $2,160 $5,898,324 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

At December 31, 2023
(in thousands)20232022202120202019
2018 and prior
RevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$27,011 $354,691 $313,866 $147,183 $49,126 $245,574 $— $— $1,137,451 
Past due:
30-59 days
— — — — — 781 — — 781 
60-89 days
— — — — — 1,374 — — 1,374 
90+ days
— — — — — 673 — — 673 
Total
27,011 354,691 313,866 147,183 49,126 248,402 — — 1,140,279 
Home equity and other
Current
2,165 2,493 311 121 46 1,631 370,462 5,483 382,712 
Past due:
30-59 days
— — — — 802 162 974 
60-89 days
— — — — 419 — 423 
90+ days— — — — — 24 162 192 
Total2,174 2,498 311 121 46 1,655 371,845 5,651 384,301 
Total consumer portfolio (1)
$29,185 $357,189 $314,177 $147,304 $49,172 $250,057 $371,845 $5,651 $1,524,580 
Total LHFI$273,487 $2,520,561 $1,781,268 $767,209 $465,962 $924,665 $681,941 $7,811 $7,422,904 
(1)    Includes $1.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

The following table presents a vintage analysis of the commercial and consumer portfolio segment by loan sub-class and gross charge-offs:
At December 31, 2024
(in thousands)20242023202220212020
2019 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Commercial business
Gross charge-offs$— $— $(276)$(473)$(1,077)$(1,098)$(39)$— $(2,963)
CONSUMER PORTFOLIO
Home equity and other
Gross charge-offs— (24)(16)(1)— — (137)— (178)
Total LHFI$— $(24)$(292)$(474)$(1,077)$(1,098)$(176)$— $(3,141)

At December 31, 2023
(in thousands)20232022202120202019
2018 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Commercial business
Gross charge-offs$— $— $(184)$— $(1,136)$295 $13 $(50)$(1,062)
CONSUMER PORTFOLIO
Home equity and other
Gross charge-offs— (106)(22)— — (4)(187)— (319)
Total LHFI$— $(106)$(206)$— $(1,136)$291 $(174)$(50)$(1,381)
Collateral Dependent Loans
The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:
At December 31, 2024
(in thousands)Land1-4 FamilyMultifamilyNon-residential real estateOther non-real estateTotal
CRE
Non-owner occupied CRE
$— $— $— $16,230 $— $16,230 
Multifamily
— — 1,915 — — 1,915 
Construction/land development
CRE construction
3,821 — — — — 3,821 
   Total
3,821 — 1,915 16,230 — 21,966 
Commercial and industrial loans
Owner occupied CRE— — — 205 — 205 
Commercial business
4,420 2,927 — — 3,269 10,616 
   Total
4,420 2,927 — 205 3,269 10,821 
Consumer loans
Single family
— 832 — — — 832 
 Total collateral-dependent loans$8,241 $3,759 $1,915 $16,435 $3,269 $33,619 

At December 31, 2023
(in thousands)1-4 FamilyNon-residential real estateOther non-real estateTotal
CRE
Non-owner occupied CRE
$573 $16,230 $— $16,803 
Construction/land development
CRE construction
— 3,821 — 3,821 
   Total
573 20,051 — 20,624 
Commercial and industrial loans
Commercial business2,788 5,471 4,587 12,846 
   Total 2,788 5,471 4,587 12,846 
Consumer loans
Single family
773 — — 773 
 Total collateral-dependent loans$4,134 $25,522 $4,587 $34,243 
Nonaccrual and Past Due Loans
The following table presents nonaccrual status for loans:

At December 31, 2024At December 31, 2023
(in thousands)Nonaccrual with no related ACLTotal NonaccrualNonaccrual with no related ACLTotal Nonaccrual
CRE
Non-owner occupied CRE$16,230 $16,230 $16,803 $16,803 
Multifamily1,915 1,915 — — 
Construction/land development
CRE construction
3,821 3,821 3,821 3,821 
Total
21,966 21,966 20,624 20,624 
Commercial and industrial loans
 Owner occupied CRE1,161 1,161 706 706 
 Commercial business8,509 25,740 13,151 13,686 
Total
9,670 26,901 13,857 14,392 
Consumer loans
Single family1,106 2,990 773 2,650 
Home equity and other— 3,137 — 1,310 
Total1,106 6,127 773 3,960 
Total nonaccrual loans$32,742 $54,994 $35,254 $38,976 
The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:
At December 31, 2024
Past Due and Still Accruing
(in thousands)
30-59 days

60-89 days

90 days or more
Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $16,230 $16,230 $554,520 $570,750 
Multifamily— — — 1,915 1,915 2,990,760 2,992,675 
Construction/land development
Multifamily construction— — — — — 98,906 98,906 
CRE construction— — — 3,821 3,821 7,217 11,038 
Single family construction— — — — — 320,826 320,826 
Single family construction to permanent— — — — — 41,970 41,970 
Total
— — — 21,966 21,966 4,014,199 4,036,165 
Commercial and industrial loans
Owner occupied CRE— — — 1,161 1,161 360,836 361,997 
Commercial business— — — 25,740 25,740 286,264 312,004 
Total— — — 26,901 26,901 647,100 674,001 
Consumer loans
Single family
4,601 1,096 4,354 (2)2,990 13,041 1,096,054 1,109,095 
Home equity and other344 631 — 3,137 4,112 408,423 412,535 
Total4,945 1,727 4,354 6,127 17,153 1,504,477 1,521,630 (3)
Total loans$4,945 $1,727 $4,354 $54,994 $66,020 $6,165,776 $6,231,796 
%0.08 %0.03 %0.07 %0.88 %1.06 %98.94 %100.00 %
At December 31, 2023
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or moreNonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $16,803 $16,803 $625,082 $641,885 
Multifamily— 1,915 — — 1,915 3,938,274 3,940,189 
Construction/land development
Multifamily construction— — — — — 168,049 168,049 
CRE construction— — — 3,821 3,821 14,692 18,513 
Single family construction— — — — — 274,050 274,050 
Single family construction to permanent— — — — — 105,304 105,304 
Total
— 1,915 — 20,624 22,539 5,125,451 5,147,990 
Commercial and industrial loans
Owner occupied CRE— — — 706 706 390,579 391,285 
Commercial business— — — 13,686 13,686 345,363 359,049 
Total
— — — 14,392 14,392 735,942 750,334 
Consumer loans
Single family
5,174 1,993 4,261 (2)2,650 14,078 1,126,201 1,140,279 
Home equity and other974 225 — 1,310 2,509 381,792 384,301 
Total6,148 2,218 4,261 3,960 16,587 1,507,993 1,524,580 (3)
Total loans$6,148 $4,133 $4,261 $38,976 $53,518 $7,369,386 $7,422,904 
%0.08 %0.05 %0.06 %0.53 %0.72 %99.28 %100.00 %
(1)Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.3 million and $12.4 million at December 31, 2024 and 2023, respectively.
(2)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.
(3)Includes $1.3 million of loans at December 31, 2024 and 2023, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements.
Loan Modifications

The Company provides MBFDs which may include delays in payment of amounts due, extension of the terms of the notes or reduction in the interest rates on the notes. In certain instances, the Company may grant more than one type of modification. The granting of modifications for the years ended December 31, 2024 and 2023 did not have a material impact on the ACL. The following tables provide information related to MBFDs for years ended December 31, 2024 and 2023 disaggregated by class of financing receivable and type of concession granted:
Significant Payment Delay
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Multifamily$1,915 0.06 %$— — %
Commercial business1,446 0.46 %839 0.23 %
Single family85 0.01 %1,082 0.09 %

Term Extension
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Commercial business$1,536 0.49 %$9,850 2.74 %
Single family— — %273 0.02 %

Interest Rate Reduction and Significant Payment Delay
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Commercial business$4,420 1.42 %$— — %


Significant Payment Delay and Term Extension
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Non-owner occupied CRE$19,331 3.39 %$16,230 2.53 %
Construction/land development— — %3,821 0.68 %
Owner occupied CRE254 0.07 %— — %
Commercial business410 0.13 %— — %
Single family3,668 0.33 %2,526 0.22 %
Interest Rate Reduction, Significant Payment Delay and Term Extension
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Construction/land development$3,821 0.81 %$— — %
Single family— — %191 0.02 %
The following tables describes the financial effect of the MBFDs:
Interest Rate Reduction
Years Ended December 31,
20242023
Construction/land development
Reduced weighted-average contractual interest rate from 7.75% to 5.00%.
Commercial business
Reduced weighted-average contractual interest rate from 7.75% to 5.00%.
Single family
Reduced weighted-average contractual interest rate from 5.25% to 5.00%.
Significant Payment Delay
Years Ended December 31,
20242023
Non-owner occupied CRE
The weighted average duration of loan payments deferred is 0.8 years.
The weighted average duration of loan payments deferred is 3.7 years.
Multifamily
The weighted average duration of loan payments deferred is 1.5 years.
Construction/land development
The weighted average duration of loan payments deferred is 0.6 years.
The weighted average duration of loan payments deferred is 2.7 years.
Owner occupied CRE
The weighted average duration of loan payments deferred is 3.0 years.
Commercial business
The weighted average duration of loan payments deferred is 0.6 years.
The weighted average duration of loan payments deferred is 5.2 years.
Single family
Provided payment deferrals to borrowers. A weighted average 0.41% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.37% of loan balances were capitalized and added to the remaining term of the loan.
Term Extension
Years Ended December 31,
20242023
Non-owner occupied CRE
Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Construction/land development
Added a weighted average 0.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Owner occupied CRE
Added a weighted average 3.0 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Commercial business
Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 1.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Single family
Added a weighted average 3.9 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 4.9 years to the life of loans, which reduced the monthly payment amounts to the borrowers.

Upon determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.
The following table depicts the payment status of loans that were modified to borrowers experiencing financial difficulties on or after October 1, 2023 through September 30, 2024:
Payment Status (Amortized Cost Basis) at December 31, 2024
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Multifamily$— $— $1,915 
Commercial business1,157 — 1,150 
Single family1,690 — 875 
Total$2,847 $— $3,940 

The following table depicts the payment status of loans that were modified to borrowers experiencing financial difficulties on or after October 1, 2022 through September 30, 2023:
Payment Status (Amortized Cost Basis) at December 31, 2023
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Non-owner occupied CRE$16,230 $— $— 
Construction/land development3,821 — — 
Commercial business8,873 976 — 
Single family2,627 1,285 324 
Total$31,551 $2,261 $324 

The following tables provide the amortized cost basis as of December 31, 2024 of MBFDs, on or after October 1, 2023 through September 30, 2024 and that subsequently had a payment default:
Amortized Cost Basis of Modified Loans That Subsequently Defaulted Year Ended December 31, 2024
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Commercial business$— $1,150 $— $— $— 
Single family238 — — 637 — 
Total$238 $1,150 $— $637 $— 

The following tables provide the amortized cost basis as of December 31, 2023 of MBFDs, on or after October 1, 2022 through September 30, 2023 and subsequently had a payment default:

Amortized Cost Basis of Modified Loans That Subsequently Defaulted Year Ended December 31, 2023
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Commercial business$— $976 $— $— $— 
Single family— — — 1,354 — 
Total$— $976 $— $1,354 $— 
v3.25.0.1
PREMISES AND EQUIPMENT, NET
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
PREMISES AND EQUIPMENT, NET PREMISES AND EQUIPMENT, NET:
Premises and equipment consisted of the following:
 
 At December 31,
(in thousands)20242023
Furniture and equipment$56,121 $56,777 
Leasehold improvements37,265 38,870 
Land and buildings42,374 42,153 
Total135,760 137,800 
Less: accumulated depreciation(88,559)(84,218)
Net$47,201 $53,582 
v3.25.0.1
DEPOSITS
12 Months Ended
Dec. 31, 2024
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]  
DEPOSITS DEPOSITS:
Deposit balances, including their weighted average rates, were as follows: 
At December 31,
20242023
(dollars in thousands)AmountWeighted Average RateAmountWeighted Average Rate
Noninterest-bearing demand deposits$1,195,781 — %$1,306,503 — %
Interest bearing:
Interest-bearing demand deposits323,112 0.35 %344,748 0.25 %
Savings229,659 0.06 %261,508 0.06 %
Money market1,396,697 1.72 %1,622,665 1.79 %
Certificates of deposit
Brokered deposits751,406 4.61 %1,218,008 5.36 %
Other2,516,366 4.37 %2,009,946 3.95 %
Total interest bearing deposits5,217,240 3.31 %5,456,875 3.19 %
Total deposits$6,413,021 2.65 %$6,763,378 2.58 %

There were $315 million and $255 million in public funds included in deposits at December 31, 2024 and 2023, respectively.

Certificates of deposit outstanding mature as follows:
 
(in thousands)December 31, 2024
Within one year$3,157,293 
One to two years105,759 
Two to three years2,067 
Three to four years1,136 
Four to five years1,517 
Total$3,267,772 
The aggregate amount of time deposits in denominations of more than the FDIC limit of $250,000 at December 31, 2024 and 2023 was $265 million and $194 million, respectively.
v3.25.0.1
BORROWINGS
12 Months Ended
Dec. 31, 2024
Federal Home Loan Banks [Abstract]  
BORROWINGS BORROWINGS:
The Company regularly borrows funds through advances from the Des Moines FHLB. During 2024 and 2023, the Company borrowed funds from the Federal Reserve Bank ("FRB") under the Bank Term Funding Program ("BTFP") which was phased out in 2024. At December 31, 2023 the Company had $645 million outstanding under the FRB BTFP.

The balances, maturity and rate of the outstanding borrowings from the FHLB and the FRB BTFP were as follows:

At December 31,
20242023
(dollars in thousands)AmountWeighted Average RateAmountWeighted Average Rate
Within one year$450,000 4.56 %$745,000 4.75 %
One to three years550,000 4.35 %450,000 4.56 %
Three through five years— — %550,000 4.35 %
Total$1,000,000 4.44 %$1,745,000 4.58 %

At December 31, 2024 and 2023 the Bank had available borrowing capacity of $1.3 billion and $2.1 billion, respectively, from the FHLB, and $1.6 billion and $710 million, respectively, from the FRBSF.

The Bank is a member of the AFX, through which it may either borrow or lend funds on an overnight or short-term basis with a group of pre-approved commercial banks. The availability of funds changes daily and as of December 31, 2024 and 2023, there were no balances outstanding.
As of December 31, 2024 and 2023, the Company held $50.7 million and $55.3 million, respectively, of FHLB stock.
v3.25.0.1
LONG-TERM DEBT
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT:
At December 31, 2024 and 2023, the Company had outstanding $99 million and $98 million respectively, of subordinated notes (the “Notes”) which have a face amount of $100 million, have a maturity date of January 30, 2032 and bear interest at a rate of 3.5% per annum until January 30, 2027. From January 30, 2027, until the maturity date or the date of earlier redemption, the Notes will bear interest equal to the three-month term Secured Overnight Financing Rate ("SOFR") plus 215 basis points.

At December 31, 2024 and 2023, the Company had outstanding $65 million of Senior Notes which have a face amount of $65 million, have a maturity date of June 1, 2026 and bear interest at a rate of 6.50% per annum.

The Company issued trust preferred securities ("TRUPS") during the period from 2005 through 2007, resulting in a debt balance of $62 million outstanding at December 31, 2024 and 2023. In connection with the issuance of trust preferred securities, HomeStreet, Inc. issued to HomeStreet Statutory Trust, Junior Subordinated Deferrable Interest Debentures. The sole assets of the HomeStreet Statutory Trust are the Subordinated Debt Securities I, II, III, and IV.

The TRUPS outstanding as of December 31, 2024 and 2023 are as follows:
 
HomeStreet Statutory Trust
(dollars in thousands)IIIIIIIV
Date issuedJune 2005September 2005February 2006March 2007
Amount$5,155$20,619$20,619$15,464
Interest rate (1)
3 MO SOFR + 1.96%
3 MO SOFR + 1.76%
3 MO SOFR + 1.63%
3 MO SOFR + 1.94%
Maturity dateJune 2035December 2035March 2036June 2037
Call option (2)
QuarterlyQuarterlyQuarterlyQuarterly
(1) These rates reflect the floating rates as of December 31, 2024.
(2) Call options are exercisable at par and are callable, without penalty, on a quarterly basis.
v3.25.0.1
DERIVATIVES AND HEDGING ACTIVITIES
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING ACTIVITIES DERIVATIVES AND HEDGING ACTIVITIES:
To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges. The notional amounts and fair values for derivatives, all of which are economic hedges, are included in other assets or accounts payable and other liabilities on the consolidated balance sheets, consist of the following:
At December 31, 2024
Notional amountFair value derivatives
(in thousands) AssetLiability
Forward sale commitments$87,912 $237 $(402)
Interest rate lock commitments16,757 175 (49)
Interest rate swaps222,917 10,250 (10,250)
Futures5,200 — 
Options5,800 — 
Total derivatives before netting$338,586 10,666 (10,701)
Netting adjustment/Cash collateral (1)
(10,388)219 
Carrying value on consolidated balance sheet$278 $(10,482)

At December 31, 2023
Notional amountFair value derivatives
(in thousands) AssetLiability
Forward sale commitments$87,509 $151 $(288)
Interest rate lock commitments21,790 411 — 
Interest rate swaps235,521 10,489 (10,492)
Futures12,200 — (3)
Options9,300 132 — 
Total derivatives before netting$366,320 11,183 (10,783)
Netting adjustment/Cash collateral (1)
(10,119)195 
Carrying value on consolidated balance sheet $1,064 $(10,588)
(1)    Includes net cash collateral received of $10.2 million and $9.9 million at December 31, 2024 and 2023, respectively.

The Company nets derivative assets and liabilities when a legally enforceable master netting agreement exists between the Company and the derivative counterparty. Derivatives are reported at their respective fair values in the other assets or accounts payable and other liabilities line items on the consolidated balance sheets, with changes in fair value reflected in current period earnings.

The following tables present gross fair value and net carrying value information for derivative instruments:
(in thousands)Gross fair value
Netting adjustments/Cash collateral (1)
Carrying value
At December 31, 2024
Derivative assets$10,666 $(10,388)$278 
Derivative liabilities(10,701)219 (10,482)
At December 31, 2023
Derivative assets $11,183 $(10,119)$1,064 
Derivative liabilities (10,783)195 (10,588)
(1)    Includes net cash collateral received of $10.2 million and $9.9 million at December 31, 2024 and 2023, respectively.
The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties are included in other assets. Payables related to cash collateral that has been received from counterparties are included in accounts payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At December 31, 2024 and 2023, the Company had liabilities of $10.4 million and $10.1 million, respectively, in cash collateral received from counterparties and receivables of $195 thousand and $218 thousand, respectively, in cash collateral paid to counterparties.
The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:
 
 Years Ended December 31,
(in thousands)20242023
Recognized in noninterest income:
Net gain (loss) on loan origination and sale activities (1)
$224 $804 
Loan servicing income (loss) (2)
(1,230)(1,255)
        Other (3)
(3)
(1)Comprised of forward contracts used as an economic hedge of loans held for sale and interest rate lock commitments ("IRLCs") to customers.
(2)Comprised of futures, US Treasury options and forward contracts used as economic hedges of single family MSRs.
(3)Impact of interest rate swap agreements executed with commercial banking customers and broker dealer counterparties.
The notional amount of open interest rate swap agreements executed with commercial banking customers and broker dealer counterparties at December 31, 2024 and 2023 were $223 million and $236 million, respectively.
v3.25.0.1
MORTGAGE BANKING OPERATIONS
12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
MORTGAGE BANKING OPERATIONS MORTGAGE BANKING OPERATIONS:
LHFS consisted of the following: 
At December 31,
(in thousands)20242023
Single family $20,312 $12,849 
CRE, multifamily and SBA— 6,788 
Total $20,312 $19,637 
Loans sold consisted of the following for the periods indicated: 
 Years Ended December 31,
(in thousands)20242023
Single family$404,952 $335,751 
CRE, multifamily and SBA(1)
1,103,742 26,839 
Total$1,508,694 $362,590 
(1) 2024 amounts include the sale of $990 million of multifamily loans in the fourth quarter.

Gain (loss) on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 
 Years Ended December 31,
(in thousands)20242023
Single family $9,573 $8,500 
CRE, multifamily and SBA(1)
(86,463)846 
Total $(76,890)$9,346 
(1) 2024 amounts include loss of $88.8 million on the sale of $990 million of multifamily loans in the fourth quarter.
The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. The unpaid principal balance of loans serviced for others is as follows:
At December 31,
(in thousands)20242023
Single family
$5,179,373 $5,316,304 
CRE, multifamily and SBA1,918,172 1,900,039 
Total$7,097,545 $7,216,343 

Under the terms of the sales agreements for single family loans sold to GSEs and other entities, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $5.2 billion and $5.3 billion as of December 31, 2024 and 2023, respectively. The following is a summary of changes in the Company's mortgage repurchase liability for single family loans sold on a servicing-retained basis included in accounts payable and other liabilities on the consolidated balance sheet for the periods indicated:

 Years Ended December 31,
(in thousands)20242023
Balance, beginning of period$1,481 $2,232 
Additions, net of adjustments (1)
(284)(330)
Realized losses (2)
(165)(421)
Balance, end of period$1,032 $1,481 
(1)Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.
(2)Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses.

The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans.
Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $1.6 million and $2.9 million were recorded in other assets as of December 31, 2024 and 2023, respectively.

When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans as other assets and other liabilities. At December 31, 2024 and 2023, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $5.1 million and $5.6 million, respectively. The recognition of previously sold loans does not impact the accounting for the previously recognized MSRs.
Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:
 
 Years Ended December 31,
(in thousands)20242023
Servicing income, net:
Servicing fees and other$25,798 $26,134 
Amortization of single family MSRs (1)
(6,500)(6,378)
Amortization of multifamily and SBA MSRs(5,612)(5,778)
Total13,686 13,978 
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)
1,743 414 
Net gain (loss) from economic hedging (3)
(2,932)(1,744)
Total(1,189)(1,330)
Loan servicing income $12,497 $12,648 
(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 reflected by changes in mortgage interest rates.
(3)The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $1.2 million and $1.4 million in 2024 and 2023, respectively.

The Company determines fair value of single family MSRs using a valuation model that calculates the net present value of estimated future cash flows. Estimates of future cash flows include contractual servicing fees, ancillary income and costs of servicing, the timing of which are impacted by assumptions, primarily expected prepayment speeds and discount rates, which relate to the underlying performance of the loans. The changes in single family MSRs measured at fair value are as follows:
 
 Years Ended December 31,
(in thousands)20242023
Beginning balance$74,249 $76,617 
Additions and amortization:
Originations
3,409 3,136 
Purchases
— 460 
Amortization (1)
(6,500)(6,378)
Net additions and amortization
(3,091)(2,782)
Changes in fair value assumptions (2)
1,743 414 
Ending balance$72,901 $74,249 
(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.

Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows:
 
Years Ended December 31,
(rates per annum) (1)
20242023
Constant prepayment rate ("CPR") (2)
18.07 %14.89 %
Discount rate10.23 %11.99 %
(1)Based on a weighted average.
(2)Represents the expected lifetime average CPR used in the model.
For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:

At December 31, 2024At December 31, 2023
Range of Inputs
Average (1)
Range of Inputs
Average (1)
CPRs
6.00% - 13.50%
6.60 %
6.80%- 32.50%
7.00 %
Discount Rates
10.00% - 17.00%
11.00 %
10.00% -17.00%
10.00 %
(1) Weighted averages of all the inputs within the range.

To compute hypothetical sensitivities of the value of our single MSRs to immediate adverse changes in key assumptions, we computed the impact of changes in CPRs and in discount rates as outlined below:

(dollars in thousands)At December 31, 2024
Fair value of single family MSRs$72,901 
Expected weighted-average life (in years)8.37
CPR
Impact on fair value of 25 basis points adverse change in interest rates$(759)
Impact on fair value of 50 basis points adverse change in interest rates$(1,594)
Discount rate
Impact on fair value of 100 basis points increase$(2,133)
Impact on fair value of 200 basis points increase$(4,669)
 

Generally, increases in the CPR or the discount rate utilized in the fair value measurements of single family MSRs will result in a decrease in fair value. Conversely, decreases in the CPR or the discount rate will result in an increase in fair value. These sensitivities are hypothetical and subject to key assumptions of the underlying valuation model. As the table above demonstrates, the Company's methodology for estimating the fair value of MSRs is highly sensitive to changes in key assumptions. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another, which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time.

MSRs resulting from the sale of multifamily loans are recorded at fair value and subsequently carried at the lower of amortized cost or fair value. Multifamily MSRs are amortized in proportion to, and over, the estimated period the net servicing income will be collected.

The changes in multifamily and SBA MSRs measured at LOCOM or fair value were as follows:
 
Years Ended December 31,
(in thousands)20242023
Beginning balance$29,987 $35,256 
Origination
2,190 509 
Amortization
(5,612)(5,778)
Ending balance$26,565 $29,987 
Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:
 
Years Ended December 31,
(rates per annum) (1)
20242023
Discount rate13.10 %13.00 %
(1)Based on a weighted average.

For multifamily MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:

At December 31, 2024At December 31, 2023
Range of Inputs
Average (1)
Range of Inputs
Average (1)
Discount Rates
13.00% - 15.00%
13.10 %
13.00% - 15.00%
13.00 %
(1) Weighted averages of all the inputs within the range.

At December 31, 2024, the expected weighted-average life of the Company's multifamily and SBA MSRs was 11.41 years. Projected amortization expense for the gross carrying value of multifamily and SBA MSRs is estimated as follows:
 
(in thousands)At December 31, 2024
2025$5,278 
20264,807 
20274,101 
20283,645 
20293,286 
2030 and thereafter
5,448 
Carrying value of multifamily and SBA MSRs$26,565 

The projected amortization expense of multifamily and SBA MSRs is an estimate and subject to key assumptions of the underlying valuation model. The amortization expense for future periods was calculated by applying the same quantitative factors, such as actual MSR prepayment experience and discount rates, which were used to determine amortization expense. These factors are inherently subject to significant fluctuations, primarily due to the effect that changes in interest rates may have on expected loan prepayment experience. Accordingly, any projection of MSR amortization in future periods is limited by the conditions that existed at the time the calculations were performed and may not be indicative of actual amortization expense that will be recorded in future periods.
v3.25.0.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS, GUARANTEES AND CONTINGENCIES COMMITMENTS, GUARANTEES AND CONTINGENCIES:
Commitments

In the ordinary course of business, the Company extends secured and unsecured open-end loans to meet the financing needs of its customers. In addition, the Company makes certain unfunded loan commitments as part of its lending activities that have not been recognized in the Company's financial statements. These include commitments to extend credit made as part of the Company's lending activities on loans the Company intends to hold in its LHFI portfolio.
These commitments include the following:
At December 31,
(in thousands)20242023
Unused consumer portfolio lines$609,930 $586,904 
Commercial portfolio lines (1)
523,415 648,609 
Commitments to fund loans56,417 38,426 
Total $1,189,762 $1,273,939 
(1) Within the commercial portfolio, undistributed construction loan proceeds, where the Company has an obligation to advance funds for construction progress payments of $306 million and $403 million at December 31, 2024 and 2023, respectively.

The total amounts of unused commitments do not necessarily represent future credit exposure or cash requirements in that commitments may expire without being drawn upon. The Company has recorded an ACL on unfunded loan commitments, included in accounts payable and other liabilities on the consolidated balance sheets of $1.1 million and $1.8 million at December 31, 2024 and 2023, respectively.

The Company has entered into certain agreements to invest in qualifying small businesses and small enterprises and a tax exempt bond partnership that have not been recognized in the Company's financial statements. At December 31, 2024 and 2023 we had $9.9 million and $10.7 million, respectively, of future commitments to invest in these enterprises.

Guarantees

In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily Delegated Underwriting and Servicing Program ("DUS"®) that are subject to a credit loss sharing arrangement. The Company services the loans for Fannie Mae and shares in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the DUS program, the Company and Fannie Mae share losses on a pro rata basis, where the Company is responsible for losses incurred up to one-third of the principal balance on each loan with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. As of December 31, 2024 and 2023, the total unpaid principal balance of loans sold under this program was $1.8 billion. The Company's reserve liability related to this arrangement totaled $0.7 million and $0.5 million at December 31, 2024 and 2023, respectively. There were no actual losses incurred under this arrangement during 2024 and 2023.

Contingencies

In the normal course of business, the Company may have various legal claims and other similar contingent matters outstanding for which a loss may be realized. For these claims, the Company establishes a liability for contingent losses when it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. For claims determined to be reasonably possible but not probable of resulting in a loss, there may be a range of possible losses in excess of the established liability. The Company did not have any material amounts reserved for legal claims as of December 31, 2024.
v3.25.0.1
INCOME TAXES
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES:
Income tax (benefit) expense consisted of the following: 
 Years Ended December 31,
(in thousands)20242023
Current expense (benefit)
Federal$6,731 $2,900 
State and local(841)980 
Deferred expense (benefit)
Federal(30,836)(7,407)
State and local(4,532)(1,722)
Total(29,478)(5,249)
Deferred tax assets valuation allowance
53,310 — 
Income tax expense (benefit)
$23,832 $(5,249)
Income tax expense (benefit) differed from amounts computed at the federal income tax statutory rate as follows: 
 Years Ended December 31,
20242023
(in thousands, except rate)RateAmountRateAmount
Income (loss) before income taxes$(120,512)$(32,757)
Federal tax statutory rate21.00 %(25,308)21.00 %(6,879)
State tax - net of federal tax benefit3.63 %(4,380)4.12 %(1,351)
Tax-exempt investments0.65 %(788)3.86 %(1,266)
Low income housing tax benefits
0.91 %(1,093)3.20 %(1,047)
Stock-based compensation expense(0.55)%672 (1.28)%421 
Goodwill— %— (14.13)%4,627 
Other(1.18)%1,419 (0.75)%246 
Total24.46 %(29,478)16.02 %(5,249)
Change in valuation allowance
53,310 — 
Total
$23,832 $(5,249)

The following is a summary of the Company's deferred tax assets and liabilities: 
At December 31,
(in thousands)20242023
Deferred tax assets
Provision for credit losses$10,220 $10,977 
Unrealized loss on investments AFS28,343 28,571 
LIHTC tax credits carryforwards
5,667 — 
Net operating loss carryforwards
26,736 370 
Accrued liabilities2,241 1,917 
Other investments786 463 
Lease liabilities8,071 9,019 
Nonaccrual interest1,695 1,112 
Intangibles4,796 4,725 
Stock based compensation849 782 
Loan valuation240 274 
Premises and equipment
681 — 
Other457 401 
   Total90,782 58,611 
Deferred tax liabilities
Mortgage servicing rights(22,805)(24,204)
Deferred loan fees and costs(8,465)(8,967)
Lease right-of-use assets(6,202)(6,906)
Premises and equipment— (364)
   Total(37,472)(40,441)
Net deferred tax asset (liability)53,310 18,170 
Valuation allowance(53,310)— 
Total
$— $18,170 

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to fully utilize the existing deferred tax assets. As of December 31, 2024, management determined that sufficient
evidence did not exist to support the future utilization of all of the Company's deferred tax assets. As a result the Company recorded a $53.3 million deferred tax assets valuation allowance.

During 2024, the Company created federal and state net operating loss carryforwards of $111.9 million and $111.0 million, respectively. The federal net operating loss carryforwards do not expire while the state net operating loss carryforwards generally expire in 2044. The Company’s LIHTC tax credits carryforwards expire in 2043 $0.4 million and 2044 $5.3 million.

The Company has state net operating loss carryforwards related to acquisitions in prior years of $4.3 million and $4.4 million as of December 31, 2024 and 2023, respectively, that will expire at various dates from 2025 to 2036. Utilization of net operating loss carryforwards is subject to an annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986, as amended.

Retained earnings at December 31, 2024 and 2023 include approximately $12.7 million in tax basis bad debt reserves for which no income tax liability has been recorded. This represents the balance of bad debt reserves created for tax purposes as of December 31, 1987. These amounts are subject to recapture (i.e., included in taxable income) if certain events occur, such as in the event HomeStreet Bank ceases to be a bank. In the event of recapture, the Company will incur both federal and state tax liabilities on this pre-1988 bad debt reserve balance at the then prevailing corporate tax rates.

The Company had no recorded unrecognized tax position as of December 31, 2024 or 2023.

We are currently under examination, or subject to examination, by various U.S. federal and state taxing authorities. The Company is no longer subject to federal income tax examinations for tax years prior to 2021 or state income tax examination for tax years prior to 2020, generally.
v3.25.0.1
RETIREMENT BENEFIT PLAN
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
RETIREMENT BENEFIT PLAN RETIREMENT BENEFIT PLAN:
The Company maintains a 401(k) Savings Plan for the benefit of its employees. Substantially all of the Company's employees are eligible to participate in the HomeStreet, Inc. 401(k) Savings Plan (the "Plan"). The Plan provides for payment of retirement benefits to employees pursuant to the provisions of the Plan and in conformity with Section 401(k) of the Internal Revenue Code. Employees may elect to have a portion of their salary contributed to the Plan. Participants receive a vested employer matching contribution equal to 100% of the first 3.0% and 50% of the next 2.0% of eligible compensation deferred by the participant. Employer contributions of $3.2 million and $3.4 million were incurred in 2024 and 2023, respectively.
v3.25.0.1
FAIR VALUE MEASUREMENT
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT:
The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company's approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements.

Fair Value Hierarchy
A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability for substantially the full term of the financial instrument.
Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company's assumptions of what market participants would use in pricing the asset or liability.
The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period.

Estimation of Fair Value

Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange.

The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company's assets and liabilities valued at fair value on a recurring basis.
Asset/Liability classValuation methodology, inputs and assumptionsClassification
Investment securities
Trading securitiesFair Value is based on quoted prices in an active market.Level 1 recurring fair value measurement.
Investment securities AFSObservable market prices of identical or similar securities are used where available.
 
Level 2 recurring fair value measurement.
If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: 
•      Expected prepayment speeds 
•      Estimated credit losses 
•      Market liquidity adjustments
Level 3 recurring fair value measurement.
LHFS
Single family loans, excluding loans transferred from held for investmentFair value is based on observable market data, including:
•       Quoted market prices, where available 
•       Dealer quotes for similar loans 
•       Forward sale commitments
Level 2 recurring fair value measurement.
When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs:
•       Benchmark yield curve  
•       Estimated discount spread to the benchmark yield curve
•       Expected prepayment speeds
Estimated fair value classified as Level 3.
Mortgage servicing rights
Single family MSRs
For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 9, Mortgage Banking Operations.
Level 3 recurring fair value measurement.
Derivatives
Futures and OptionsFair value is based on closing exchange prices.Level 1 recurring fair value measurement.
Forward sale commitments
Interest rate swaps
Fair value is based on quoted prices for identical or similar instruments when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs, including:  
•       Forward interest rates 
•       Interest rate volatilities
Level 2 recurring fair value measurement.
IRLC
The fair value considers several factors including:
•       Fair value of the underlying loan based on quoted prices in the secondary market, when available. 
•       Value of servicing
•       Fall-out factor
Level 3 recurring fair value measurement.
The following tables presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis: 
At December 31, 2024
(in thousands)Fair ValueLevel 1Level 2Level 3
Assets:
Trading securities - U.S. Treasury securities$34,746 $34,746 $— $— 
Investment securities AFS
Mortgage backed securities:
Residential167,462 — 165,764 1,698 
Commercial47,642 — 47,642 — 
Collateralized mortgage obligations:
Residential317,444 — 317,444 — 
Commercial54,945 — 54,945 — 
Municipal bonds378,259 — 378,259 — 
Corporate debt securities24,944 — 24,944 — 
U.S. Treasury securities19,987 — 19,987 — 
        Agency debentures9,276 — 9,276 — 
Single family LHFS20,312 — 20,312 — 
Single family LHFI1,287 — — 1,287 
Single family mortgage servicing rights72,901 — — 72,901 
Derivatives
Futures— — 
Forward sale commitments237 — 237 — 
Options— 
Interest rate lock commitments175 — — 175 
Interest rate swaps10,250 — 10,250 — 
Total assets$1,159,871 $34,750 $1,049,060 $76,061 
Liabilities:
Derivatives
Forward sale commitments$402 $— $402 $— 
Interest rate lock commitments49 — — 49 
Interest rate swaps10,250 — 10,250 — 
Total liabilities$10,701 $— $10,652 $49 
At December 31, 2023
(in thousands)Fair ValueLevel 1Level 2Level 3
Assets:
Trading securities - U.S. Treasury securities$24,698 $24,698 $— $— 
Investment securities AFS
Mortgage backed securities:
Residential
183,798 — 181,938 1,860 
Commercial
47,756 — 47,756 — 
Collateralized mortgage obligations:
Residential439,738 — 439,738 — 
Commercial57,397 — 57,397 — 
Municipal bonds404,874 — 404,874 — 
Corporate debt securities38,547 — 38,547 — 
U.S. Treasury securities20,184 — 20,184 — 
Agency debentures58,905 — 58,905 — 
Single family LHFS 12,849 — 12,849 — 
Single family LHFI1,280 — — 1,280 
Single family mortgage servicing rights74,249 — — 74,249 
Derivatives
Forward sale commitments151 — 151 — 
Options132 132 — — 
Interest rate lock commitments411 — — 411 
Interest rate swaps10,489 — 10,489 — 
Total assets$1,375,458 $24,830 $1,272,828 $77,800 
Liabilities:
Derivative
Futures$$$— $— 
Forward sale commitments288 — 288 — 
Interest rate swaps10,492 — 10,492 — 
Total liabilities$10,783 $$10,780 $— 

There were no transfers between levels of the fair value hierarchy during 2024 and 2023.

Level 3 Recurring Fair Value Measurements

The Company's level 3 recurring fair value measurements consist of investment securities AFS, single family MSRs, single family LHFI where fair value option was elected, certain single family LHFS and IRCLs, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during 2024 and 2023, see Note 9, Mortgage Banking Operations.

The fair value of IRLCs considers several factors, including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan (referred to as the value of servicing) and the probability that the commitment will not be converted into a funded loan (referred to as a fall-out factor). The fair value of IRLCs on LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. The significance of the fall-out factor to the fair value measurement of an individual IRLC is generally highest at the time that the rate lock is initiated and declines as closing procedures are performed and the underlying loan gets closer to funding. The fall-out factor applied is based on historical experience. The value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs and underlying portfolio characteristics. Because these inputs are not observable in market trades, the fall-out factor and value of servicing are considered to be level 3 inputs. The fair value of IRLCs decreases in value upon an increase in the fall-out factor and increases in value upon an increase in the value of servicing. Changes in the fall-out factor and value of servicing do not increase or decrease based on movements in other significant unobservable inputs.
The Company recognizes unrealized gains and losses from the time that an IRLC is initiated until the gain or loss is realized at the time the loan closes, which generally occurs within 30-90 days. For IRLCs that fall out, any unrealized gain or loss is reversed, which generally occurs at the end of the commitment period. The gains and losses recognized on IRLC derivatives generally correlates to volume of single family interest rate lock commitments made during the reporting period (after adjusting for estimated fall-out) while the amount of unrealized gains and losses realized at settlement generally correlates to the volume of single family closed loans during the reporting period.

The Company uses the discounted cash flow model to estimate the fair value of certain loans that have been transferred from held for sale to held for investment and single family LHFS when the fair value of the loans is not derived using observable market inputs. The key assumption in the valuation model is the implied spread to benchmark interest rate curve. The implied spread is not directly observable in the market and is derived from third party pricing which is based on market information from comparable loan pools. The fair value estimate of single family loans that have been transferred from held for sale to held for investment are sensitive to changes in the benchmark interest rate which might result in a significantly higher or lower fair value measurement.

The Company transferred certain loans from held for sale to held for investment. These loans were originated as held for sale loans where the Company had elected the fair value option. The Company determined these loans to be level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $1.3 million at December 31, 2024 and 2023.

The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets:
(dollars in thousands)Fair ValueValuation
Technique
Significant Unobservable
Input
LowHighWeighted Average
December 31, 2024
Investment securities AFS$1,698 Income approachImplied spread to benchmark interest rate curve2.25%2.25%2.25%
Single family LHFI1,287 Income approachImplied spread to benchmark interest rate curve2.94%5.56%3.69%
Interest rate lock commitments, net126 Income approachFall-out factor0.83%29.13%9.28%
Value of servicing0.78%2.15%1.37%
December 31, 2023
Investment securities AFS$1,860 Income approachImplied spread to benchmark interest rate curve2.25%2.25%2.25%
Single family LHFI1,280 Income approachImplied spread to benchmark interest rate curve3.30%5.04%3.94%
Interest rate lock commitments, net 411 Income approachFall-out factor0.81%41.64%10.54%
Value of servicing0.32%0.80%0.57%

We had no LHFS where the fair value was not derived with significant observable inputs at December 31, 2024 or 2023.

The following table presents fair value changes and activity for certain Level 3 assets:
(in thousands)Beginning balanceAdditionsTransfersPayoffs/Sales
Change in mark to market (1)
Ending balance
Year Ended December 31, 2024
Investment securities AFS $1,860 $— $— $(200)$38 $1,698 
Single family LHFI1,280 — — — 1,287 
Year Ended December 31, 2023
Investment securities AFS $2,009 $— $— $(192)$43 $1,860 
Single family LHFI5,868 — — (4,607)19 1,280 
(1) Changes in fair value for singe family LHFI are recorded in other noninterest income on the consolidated income statements.
The following table presents fair value changes and activity for Level 3 interest rate lock commitments:
Years Ended December 31,
(in thousands)20242023
Beginning balance, net$411 $105 
Total realized/unrealized gains3,770 2,334 
Settlements(4,055)(2,028)
Ending balance, net$126 $411 

Nonrecurring Fair Value Measurements

Certain assets held by the Company are not included in the tables above but are measured at fair value on a periodic basis. These assets include certain LHFI and OREO that are carried at the lower of cost or fair value of the underlying collateral, less the estimated cost to sell. The estimated fair values of real estate collateral are generally based on internal evaluations and appraisals of such collateral, which use the market approach and income approach methodologies. We have omitted disclosure related to quantitative inputs given the insignificance of assets measured on a nonrecurring basis.

The fair value of commercial properties are generally based on third-party appraisals that consider recent sales of comparable properties, including their income-generating characteristics, adjusted (generally based on unobservable inputs) to reflect the general assumptions that a market participant would make when analyzing the property for purchase. The Company uses a fair value of collateral technique to apply adjustments to the appraisal value of certain commercial LHFI that are collateralized by real estate.

The Company uses a fair value of collateral technique to apply adjustments to the stated value of certain commercial LHFI that are not collateralized by real estate and to the appraisal value of OREO.

Residential properties are generally based on unadjusted third-party appraisals. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property.

These adjustments include management assumptions that are based on the type of collateral dependent loan and may increase or decrease an appraised value. Management adjustments vary significantly depending on the location, physical characteristics and income producing potential of each individual property. The quality and volume of market information available at the time of the appraisal can vary from period-to-period and cause significant changes to the nature and magnitude of the unobservable inputs used. Given these variations, changes in these unobservable inputs are generally not a reliable indicator for how fair value will increase or decrease from period to period.

The following tables presents assets classified as Level 3 assets that had changes in their recorded fair value during 2024 and 2023 and what we still held at the end of the respective reporting period:

(in thousands)Fair ValueTotal Gains (Losses)
As of or for the year ended December 31, 2024
LHFI (1)
$3,269 $(3,114)
As of or for the year ended December 31, 2023
LHFI (1)
$4,349 $(1,410)
(1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral.
Fair Value of Financial Instruments

The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company's financial instruments other than assets and liabilities measured at fair value on a recurring basis:
 
 At December 31, 2024
(in thousands)Carrying
Value
Fair
Value
Level 1Level 2Level 3
Assets:
Cash and cash equivalents$406,600 $406,600 $406,600 $— $— 
Investment securities HTM2,301 2,273 — 2,273 — 
LHFI6,191,766 5,864,426 — — 5,864,426 
Mortgage servicing rights – multifamily and SBA26,565 32,361 — — 32,361 
Federal Home Loan Bank stock50,676 50,676 — 50,676 — 
Other assets - GNMA EBO loans5,111 5,111 — — 5,111 
Liabilities:
Certificates of deposit$3,267,772 $3,262,350 $— $3,262,350 $— 
Borrowings1,000,000 1,001,873 — 1,001,873 — 
Long-term debt225,131 184,124 — 184,124 — 

 At December 31, 2023
(in thousands)Carrying
Value
Fair
Value
Level 1Level 2Level 3
Assets:
Cash and cash equivalents$215,664 $215,664 $215,664 $— $— 
Investment securities HTM2,371 2,331 — 2,331 — 
LHFI7,381,124 7,002,028 — — 7,002,028 
LHFS multifamily and other6,788 6,871 — 6,871 — 
Mortgage servicing rights – multifamily and SBA29,987 35,292 — — 35,292 
Federal Home Loan Bank stock55,293 55,293 — 55,293 — 
Other assets - GNMA EBO loans5,617 5,617 — — 5,617 
Liabilities:
Certificates of deposit$3,227,954 $3,216,665 $— $3,216,665 $— 
Borrowings1,745,000 1,750,023 — 1,750,023 — 
Long-term debt224,766 132,996 — 132,996 — 

Fair Value Option

Single family loans held for sale accounted for under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluations adjustments to the recorded fair value. The use of the fair value option allows the change in the fair
value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale.

The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option:

At December 31, 2024At December 31, 2023
(in thousands)Fair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal BalanceFair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal Balance
Single family LHFS$20,312 $20,137 $175 $12,849 $12,583 $266 
v3.25.0.1
REGULATORY CAPITAL REQUIREMENTS
12 Months Ended
Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
REGULATORY CAPITAL REQUIREMENTS REGULATORY CAPITAL REQUIREMENTS:
The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company's operations and financial statements. Under capital adequacy guidelines, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about risk components, asset risk weighting, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to assets (as defined). Management believes, as of December 31, 2024 that the Company and the Bank met all capital adequacy requirements. The following table presents the capital and capital ratios of the Company (on a consolidated basis) and the Bank (on a stand-alone basis) as of the respective dates and as compared to the respective regulatory requirements applicable to them:
At December 31, 2024
ActualFor Minimum Capital
Adequacy Purposes
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
(dollars in thousands)AmountRatioAmountRatioAmountRatio
HomeStreet, Inc.
Tier 1 leverage capital (to average assets) (1)
$537,057 5.77 %$372,319 4.0 %NANA
Common equity tier 1 capital (to risk-weighted assets)477,057 8.62 %249,109 4.5 %NANA
Tier 1 risk-based capital (to risk-weighted assets)537,057 9.70 %332,145 6.0 %NANA
Total risk-based capital (to risk-weighted assets)677,225 12.23 %442,860 8.0 %NANA
HomeStreet Bank
Tier 1 leverage capital (to average assets)
$678,869 7.30 %$372,132 4.0 %$465,165 5.0 %
Common equity tier 1 capital (to risk-weighted assets)678,869 12.27 %249,000 4.5 %359,667 6.5 %
Tier 1 risk-based capital (to risk-weighted assets)678,869 12.27 %332,001 6.0 %442,667 8.0 %
Total risk-based capital (to risk-weighted assets)720,498 13.02 %442,667 8.0 %553,334 10.0 %
At December 31, 2023
ActualFor Minimum Capital
Adequacy Purposes
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
(dollars in thousands)AmountRatioAmountRatioAmountRatio
HomeStreet, Inc.
Tier 1 leverage capital (to average assets)$675,440 7.04 %$383,696 4.0 %NANA
Common equity tier 1 capital (to risk-weighted assets)615,440 9.66 %286,709 4.5 %NANA
Tier 1 risk-based capital (to risk-weighted assets)675,440 10.60 %382,279 6.0 %NANA
Total risk-based capital (to risk-weighted assets)818,075 12.84 %509,705 8.0 %NANA
HomeStreet Bank
Tier 1 leverage capital (to average assets)$814,719 8.50 %$383,482 4.0 %$479,352 5.0 %
Common equity tier 1 capital (to risk-weighted assets)814,719 12.79 %286,569 4.5 %413,933 6.5 %
Tier 1 risk-based capital (to risk-weighted assets)814,719 12.79 %382,092 6.0 %509,456 8.0 %
Total risk-based capital (to risk-weighted assets)858,992 13.49 %509,456 8.0 %636,820 10.0 %

As of each of the dates set forth in the above table, the Company exceeded the minimum required capital ratios applicable to it and Bank’s capital ratios exceeded the minimums necessary to qualify as a well-capitalized depository institution under the prompt corrective action regulations. No conditions or events have occurred since December 31, 2024 that we believe have changed the Company’s or the Bank’s capital adequacy classifications from those set forth in the above table.

In addition to the minimum capital ratios, both the Company and the Bank are required to maintain a “conservation buffer" consisting of additional Common Equity Tier 1 Capital which is at least 2.5% above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. The required ratios for capital adequacy set forth in the above table do not include the additional capital conservation buffer, though each of the Company and Bank maintained capital ratios necessary to satisfy the capital conservation buffer requirements as of the dates indicated. At December 31, 2024, capital conservation buffers for the Company and the Bank were 3.70% and 5.02%, respectively. The following table sets forth the minimum capital ratios plus the applicable increment of the capital conservation buffer:

Common equity to Tier-1 to risk-weighted assets 7.00 %
Tier 1 capital to risk-weighted assets 8.50 %
Total capital to risk-weighted assets 10.50 %
v3.25.0.1
EARNINGS PER SHARE
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE:
The following table summarizes the calculation of earnings per share: 
 Years Ended December 31,
(in thousands, except share and per share data)20242023
Net income (loss)$(144,344)$(27,508)
Weighted average shares:
Basic weighted-average number of common shares outstanding
18,857,392 18,783,005 
Dilutive effect of outstanding common stock equivalents (1)
— — 
Diluted weighted-average number of common shares outstanding18,857,392 18,783,005 
Net income (loss) per share
Basic earnings per share$(7.65)$(1.46)
Diluted earnings per share$(7.65)$(1.46)
(1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2024 and 2023 were certain unvested RSUs and PSUs. The aggregate number of common stock unvested restricted shares, which could potentially be dilutive in future periods, was 540,354 and 217,153 at December 31, 2024 and 2023, respectively.
v3.25.0.1
LEASES
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES:
We have operating and finance leases for certain office space and finance leases for certain equipment. These leases have remaining lease terms of up to 11 years.

The Company, as sublessor, subleases certain office and retail space in which the terms of any significant subleases end by 2027. Under all of our executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $2.8 million in 2025, $2.9 million in 2026, $2.7 million in 2027, $69 thousand in 2028 and $29 thousand in 2029.

In 2024 we incurred $2.0 million in impairment charges due primarily to an updated estimate of the cost impact of a leased space for which the sublease was not extended and expired in 2024.

The components of lease expense were as follows:
 Years Ended December 31,
(in thousands)20242023
Operating lease cost$7,321 $8,103 
Finance lease cost:
Amortization of right-of-use assets
181 425 
Interest on lease liabilities
Variable lease costs and nonlease components1,633 1,470 
Sublease income(649)(1,376)
Total$8,492 $8,630 
Supplemental cash flow information related to leases were as follows:
 Years Ended December 31,
(in thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$10,421 $11,248 
Operating cash flows from finance leases
Financing cash flows from finance leases
168 456 
Right-of-use assets obtained
Operating leases$5,622 $2,690 
Finance leases— 385 
        
Supplemental information related to leases was as follows:
At December 31,
(in thousands, except lease term and discount rate)20242023
Operating lease right-of-use assets, included in other assets$25,235$27,594
Operating lease liabilities, included in accounts payable and other liabilities30,99335,043
Finance lease right-of-use assets, included in other assets$48$318
Finance lease liabilities, included in accounts payable and other liabilities 37288
Weighted Average Remaining lease term in years
Operating leases4.314.49
Finance leases0.581.58
Weighted Average Discount Rate
Operating leases1.82%1.88%
Finance leases3.50%3.50%
Maturities of lease liabilities and obligations under leases classified as nonlease components were as follows:
Lease Liabilities
(in thousands)Operating LeasesFinance LeasesNonlease Components
Year ended December 31,
2025$10,079 $37 $3,723 
20268,721 — 3,785 
20277,683 — 3,841 
20282,750 — 125 
20291,678 — — 
2030 and thereafter2,874 — — 
Total lease payments
33,785 37 $11,474 
Less imputed interest2,792 — 
Total$30,993 $37 
LEASES LEASES:
We have operating and finance leases for certain office space and finance leases for certain equipment. These leases have remaining lease terms of up to 11 years.

The Company, as sublessor, subleases certain office and retail space in which the terms of any significant subleases end by 2027. Under all of our executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $2.8 million in 2025, $2.9 million in 2026, $2.7 million in 2027, $69 thousand in 2028 and $29 thousand in 2029.

In 2024 we incurred $2.0 million in impairment charges due primarily to an updated estimate of the cost impact of a leased space for which the sublease was not extended and expired in 2024.

The components of lease expense were as follows:
 Years Ended December 31,
(in thousands)20242023
Operating lease cost$7,321 $8,103 
Finance lease cost:
Amortization of right-of-use assets
181 425 
Interest on lease liabilities
Variable lease costs and nonlease components1,633 1,470 
Sublease income(649)(1,376)
Total$8,492 $8,630 
Supplemental cash flow information related to leases were as follows:
 Years Ended December 31,
(in thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$10,421 $11,248 
Operating cash flows from finance leases
Financing cash flows from finance leases
168 456 
Right-of-use assets obtained
Operating leases$5,622 $2,690 
Finance leases— 385 
        
Supplemental information related to leases was as follows:
At December 31,
(in thousands, except lease term and discount rate)20242023
Operating lease right-of-use assets, included in other assets$25,235$27,594
Operating lease liabilities, included in accounts payable and other liabilities30,99335,043
Finance lease right-of-use assets, included in other assets$48$318
Finance lease liabilities, included in accounts payable and other liabilities 37288
Weighted Average Remaining lease term in years
Operating leases4.314.49
Finance leases0.581.58
Weighted Average Discount Rate
Operating leases1.82%1.88%
Finance leases3.50%3.50%
Maturities of lease liabilities and obligations under leases classified as nonlease components were as follows:
Lease Liabilities
(in thousands)Operating LeasesFinance LeasesNonlease Components
Year ended December 31,
2025$10,079 $37 $3,723 
20268,721 — 3,785 
20277,683 — 3,841 
20282,750 — 125 
20291,678 — — 
2030 and thereafter2,874 — — 
Total lease payments
33,785 37 $11,474 
Less imputed interest2,792 — 
Total$30,993 $37 
v3.25.0.1
SHARE-BASED COMPENSATION PLANS
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION PLANS SHARE-BASED COMPENSATION PLANS:
In May 2014, the shareholders approved the Company's 2014 Equity Incentive Plan (the "2014 EIP Plan") that provided for the grant of stock options, shares of restricted stock, RSUs, PSUs, stock bonus awards, stock appreciation rights, performance share awards and performance compensation awards and unrestricted stock (collectively, "Equity Incentive Awards") to the Company’s executive officers, other key employees and directors. This plan was amended in May 2017 and allowed the grant of up to 1,875,000 shares of the Company’s common stock. For 2024 and 2023, the Company recognized stock-based compensation cost of $3.3 million and $3.1 million, respectively. In March 2024, this plan expired, therefore we are no longer granting shares from this plan, or any other plan.

RSUs generally vest over a three year period with the fair market value of the awards determined at the grant date based on the Company's stock price. PSUs vest at the end of a three year period with the fair market value of the awards determined using a Monte Carlo simulation technique. A summary of the status of the combined RSUs and PSUs is as follows:
NumberWeighted Average
Grant Date Fair Value
Outstanding at December 31, 2023
230,986$34.08 
Granted417,65910.79 
Cancelled or forfeited(86,505)24.37 
Vested(44,651)34.93 
Outstanding at December 31, 2024
517,489 $16.83 

The assumptions used in the Monte Carlo simulations used to determine fair market value of the PSUs granted in 2024 and 2023 are set forth in the table below:
20242023
Volatility of common stock58.1 %42.7 %
Average volatility of peer companies33.6 %45.0 %
Average correlation coefficient of peer companies0.7527 %0.8029 %
Risk-free interest rate4.0 %4.2 %
Expected term in years3 years3 years
v3.25.0.1
PARENT COMPANY FINANCIAL STATEMENTS (UNAUDITED)
12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY FINANCIAL STATEMENTS (UNAUDITED) PARENT COMPANY FINANCIAL STATEMENTS (UNAUDITED):
Condensed financial information for HomeStreet, Inc. is as follows:
 
Condensed Balance SheetsAt December 31,
(in thousands)20242023
Assets:
Cash and cash equivalents$22,855 $21,541 
Other assets5,433 4,515 
Investment in stock of HomeStreet Bank598,875 737,748 
Investment in stock of other subsidiaries1,857 1,857 
Total assets$629,020 $765,661 
Liabilities:
Other liabilities$6,892 $2,508 
Long-term debt225,131 224,766 
Total liabilities232,023 227,274 
Shareholders' Equity:
Common stock, no par value233,185 229,889 
Retained earnings251,013 395,357 
Accumulated other comprehensive income (loss)(87,201)(86,859)
Total shareholder's equity396,997 538,387 
Total liabilities and shareholders' equity$629,020 $765,661 
 
Condensed Income StatementsYears Ended December 31,
(in thousands)20242023
Noninterest income
Dividend income $10,400 $39,000 
Equity in undistributed income from subsidiaries(141,939)(55,832)
Other noninterest income2,470 2,085 
Total revenues(129,069)(14,747)
Expenses
Interest expense-net8,097 8,094 
Noninterest expense11,268 8,176 
Total expenses19,365 16,270 
Income (loss) before income taxes (benefit)
(148,434)(31,017)
Income taxes (benefit)(4,090)(3,509)
Net income (loss)$(144,344)$(27,508)
Condensed Statements of Cash FlowsYears Ended December 31,
(in thousands)20242023
Cash flows from operating activities
Net income (loss)$(144,344)$(27,508)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Undistributed earnings from investment in subsidiaries141,939 55,832 
Other3,513 (480)
Net cash provided by operating activities1,108 27,844 
Cash flows from investing activities:
AFS securities: Principal collections net of purchases203 210 
Investments in subsidiaries— 
Net cash provided by investing activities
206 210 
Cash flows from financing activities:
Repurchases of common stock— — 
Proceeds from issuance of long-term debt
— — 
Dividends paid on common stock— (12,317)
Net cash used in financing activities— (12,317)
Net increase in cash and cash equivalents
1,314 15,737 
Cash and cash equivalents, beginning of year21,541 5,804 
Cash and cash equivalents, end of year$22,855 $21,541 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure    
Net income (loss) $ (144,344) $ (27,508)
v3.25.0.1
Insider Trading Arrangements
12 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We recognize the importance of assessing, identifying, and managing material risks associated with cybersecurity threats, as such term is defined in Item 106(a) of Regulation S-K. These risks include, among other things, operational risks; intellectual property theft; fraud; extortion; harm to employees or customers; violation of privacy or security laws and other litigation and legal risk; and reputational risks.

We also maintain an incident response plan to coordinate the activities we take to protect against, detect, respond to and remediate cybersecurity incidents, as such term is defined in Item 106(a) of Regulation S-K, as well as to comply with potentially applicable legal obligations and mitigate brand and reputational damage.

We have implemented several cybersecurity processes, technologies, and controls to aid in our efforts to identify, assess, and manage material risks, as well as to test and improve our incident response plan. Our approach includes, among other things:

conducting regular network and endpoint monitoring, vulnerability assessments, and penetration testing to improve our information systems, as such term is defined in Item 106(a) of Regulation S-K;
running tabletop exercises to simulate a response to a cybersecurity incident and use the findings to improve our processes and technologies;
regular cybersecurity training programs for employees, management and directors; conducting annual customer data handling training for all our employees;
conducting annual cybersecurity management and incident training for employees involved in our systems and processes that handle sensitive data;
comparing our processes to standards set by the National Institute of Standards and Technology (“NIST”), International Organization for Standardization (“ISO”), and Center for Internet Security (“CIS”);
leveraging the NIST cybersecurity framework to help us identify, protect, detect, respond, and recover when there is an actual or potential cybersecurity incident;
operating threat intelligence processes designed to model and research our adversaries;
closely monitoring emerging data protection laws and implementing changes to our processes designed to comply;
undertaking regular reviews of our consumer facing policies and statements related to cybersecurity;
proactively informing our customers of substantive changes related to customer data handling;
conducting regular phishing email simulations for all employees and all contractors with access to corporate email systems to enhance awareness and responsiveness to such possible threats;
through policy, practice and contract (as applicable) requiring employees, as well as third-parties who provide services on our behalf, to treat customer information and data with care;
maintaining a risk management program for suppliers, vendors, and other third parties, which includes conducting pre-engagement risk-based diligence, implementing contractual security and notification provisions, and ongoing monitoring as needed; and
carrying information security risk insurance that provides protection against the potential losses arising from a cybersecurity incident.

These approaches vary in maturity across the business and we work to continually improve them.

Our process for identifying and assessing material risks from cybersecurity threats operates alongside our broader overall risk assessment process, covering all Company risks. As part of this process appropriate disclosure personnel will collaborate with subject matter specialists, as necessary, to gather insights for identifying and assessing material cybersecurity threat risks, their severity, and potential mitigations. As part of the above approach and processes, we regularly engage with assessors, consultants, auditors, and other third parties, to review our cybersecurity program to help identify areas for continued focus, improvement and/or compliance.

We describe whether and how risks from identified cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition, under the heading "Risks Related to Information Technology" included as part of our risk factor disclosures in Item 1A of this Form 10-K.
In the last three fiscal years, we have not experienced any material cybersecurity incidents and the expenses we have incurred from cybersecurity incidents were immaterial. This includes penalties and settlements, of which there were none.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have implemented several cybersecurity processes, technologies, and controls to aid in our efforts to identify, assess, and manage material risks, as well as to test and improve our incident response plan. Our approach includes, among other things:

conducting regular network and endpoint monitoring, vulnerability assessments, and penetration testing to improve our information systems, as such term is defined in Item 106(a) of Regulation S-K;
running tabletop exercises to simulate a response to a cybersecurity incident and use the findings to improve our processes and technologies;
regular cybersecurity training programs for employees, management and directors; conducting annual customer data handling training for all our employees;
conducting annual cybersecurity management and incident training for employees involved in our systems and processes that handle sensitive data;
comparing our processes to standards set by the National Institute of Standards and Technology (“NIST”), International Organization for Standardization (“ISO”), and Center for Internet Security (“CIS”);
leveraging the NIST cybersecurity framework to help us identify, protect, detect, respond, and recover when there is an actual or potential cybersecurity incident;
operating threat intelligence processes designed to model and research our adversaries;
closely monitoring emerging data protection laws and implementing changes to our processes designed to comply;
undertaking regular reviews of our consumer facing policies and statements related to cybersecurity;
proactively informing our customers of substantive changes related to customer data handling;
conducting regular phishing email simulations for all employees and all contractors with access to corporate email systems to enhance awareness and responsiveness to such possible threats;
through policy, practice and contract (as applicable) requiring employees, as well as third-parties who provide services on our behalf, to treat customer information and data with care;
maintaining a risk management program for suppliers, vendors, and other third parties, which includes conducting pre-engagement risk-based diligence, implementing contractual security and notification provisions, and ongoing monitoring as needed; and
carrying information security risk insurance that provides protection against the potential losses arising from a cybersecurity incident.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Cybersecurity is an important part of our risk management processes and an area of increasing focus for our Board and management. Our Board Enterprise Risk Management Committee ("ERMC") is responsible for the oversight of risks from cybersecurity threats. At least quarterly, the ERMC receives an overview from management and the management steering committee of our cybersecurity threat risk management and strategy processes covering topics such as data security posture, results from third-party assessments, progress towards pre-determined risk-mitigation-related goals, our incident response plan, and cybersecurity threat risks or incidents and developments, as well as the steps management has taken to respond to such risks. In such sessions, the ERMC generally receives materials including a cybersecurity scorecard and other materials indicating current and emerging cybersecurity threat risks, describing the company’s ability to mitigate those risks, and discussing such matters with our Chief Information Security Officer and Chief Information Officer. Members of the ERMC are also encouraged to regularly engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy programs. Material cybersecurity threat risks may also be considered during separate Board meeting discussions. The Board engages external cyber security experts, as needed, leveraging their expertise as part of our ongoing effort to evaluate and enhance our cybersecurity program. They help with cyber defense capabilities and transformation designed to mitigate associated threats, reduce risk, enhance our cybersecurity posture, and meet the Company's evolving needs.

Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by our Chief Information Security Officer, Chief Information Officer, and our management technology steering committee. Such individuals have collectively over 30 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy, and implementing effective information and cybersecurity programs, as well as several relevant certifications, including Certified Information Security Manager, Cisco Certified Network Administrator-Security, CompTIA Secure Infrastructure Specialist, and many others.

These members of management and the management technology steering committee are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan.

If a cybersecurity incident is determined to be a material cybersecurity incident, our incident response plan and cybersecurity disclosure controls and procedures define the process to disclose such a material cybersecurity incident.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board Enterprise Risk Management Committee ("ERMC") is responsible for the oversight of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] rd Enterprise Risk Management Committee ("ERMC") is responsible for the oversight of risks from cybersecurity threats. At least quarterly, the ERMC receives an overview from management and the management steering committee of our cybersecurity threat risk management and strategy processes covering topics such as data security posture, results from third-party assessments, progress towards pre-determined risk-mitigation-related goals, our incident response plan, and cybersecurity threat risks or incidents and developments, as well as the steps management has taken to respond to such risks. In such sessions, the ERMC generally receives materials including a cybersecurity scorecard and other materials indicating current and emerging cybersecurity threat risks, describing the company’s ability to mitigate those risks, and discussing such matters with our Chief Information Security Officer and Chief Information Officer. Members of the ERMC are also encouraged to regularly engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy programs. Material cybersecurity threat risks may also be considered during separate Board meeting discussions. The Board engages external cyber security experts, as needed, leveraging their expertise as part of our ongoing effort to evaluate and enhance our cybersecurity program. They help with cyber defense capabilities and transformation designed to mitigate associated threats, reduce risk, enhance our cybersecurity posture, and meet the Company's evolving needs.
Cybersecurity Risk Role of Management [Text Block] . In such sessions, the ERMC generally receives materials including a cybersecurity scorecard and other materials indicating current and emerging cybersecurity threat risks, describing the company’s ability to mitigate those risks, and discussing such matters with our Chief Information Security Officer and Chief Information Officer. Members of the ERMC are also encouraged to regularly engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy programs
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by our Chief Information Security Officer, Chief Information Officer, and our management technology steering committee.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by our Chief Information Security Officer, Chief Information Officer, and our management technology steering committee. Such individuals have collectively over 30 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy, and implementing effective information and cybersecurity programs, as well as several relevant certifications, including Certified Information Security Manager, Cisco Certified Network Administrator-Security, CompTIA Secure Infrastructure Specialist, and many others.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
These members of management and the management technology steering committee are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan.

If a cybersecurity incident is determined to be a material cybersecurity incident, our incident response plan and cybersecurity disclosure controls and procedures define the process to disclose such a material cybersecurity incident.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates.
Segments
Segments
Our chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as one single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes net interest income, noninterest income and noninterest expenses (compensation and benefits, information services, occupancy and general, administrative and other) at the consolidated level to manage the Company’s operations.
Reclassifications
Reclassifications

Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. These reclassifications had no effect on prior years' net income or stockholders’ equity.
Cash and Cash Equivalents
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents include cash, due from banks, certificates of deposits with original maturities of less than ninety days, investment securities with original maturities of less than ninety days, money market funds and federal funds sold. The Bank maintains most of its excess cash at the Federal Reserve Bank of San Francisco ("FRBSF"), with well-capitalized correspondent banks or with other depository institutions at amounts less than the FDIC insured limits.
Investment Securities
Investment Securities

Investment securities for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investments not classified as trading securities nor as held-to-maturity ("HTM") securities are classified as AFS securities and recorded at fair value. Unrealized gains or losses on AFS securities are excluded from net income and reported net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Purchase premiums and discounts are recognized in interest income using the effective interest method over the contractual life of the securities. Purchase premiums or discounts related to mortgage-backed securities are amortized or accreted using projected prepayment speeds. Gains and losses on the sale of AFS and trading securities are recorded on the trade date and are determined using the specific identification method.

Trading securities, consisting of US Treasury notes, are used as economic hedges of our mortgage servicing rights, which are carried at fair value and included as investment securities on the balance sheet. Net gain or loss on trading securities are included in loan servicing income in the consolidated income statements.

The Company evaluates AFS securities in an unrealized loss position at the end of each quarter to determine whether the decline in value is temporary or permanent. An unrealized loss exists when the fair value of an individual security is less than its amortized cost basis. When qualitative factors indicate that a credit loss may exist, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. The Company recognizes an allowance for credit loss ("ACL") if a loss is determined to exist, measured as the difference between the present value of expected cash flows and the amortized cost basis of the security, limited by the amount that the security’s fair value is less than its amortized cost basis. The Company does not believe any of these securities that were in an unrealized loss position at December 31, 2024 or 2023 have a credit loss impairment.

The Company evaluates HTM securities at the end of each quarter to determine if any expected credit losses exist. The Company does not believe any expected credit losses existed for these securities as of December 31, 2024 and 2023.
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock

The Bank is a member of the Federal Home Loan Bank of Des Moines ("FHLB"), and as such, is required to own a certain amount of FHLB stock based on the level of borrowings and other factors. FHLB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Cash dividends accrued on FHLB stock are recorded as a component of interest income.
LHFS
LHFS

Loans originated for sale in the secondary market or designated for whole loan sales are classified as LHFS. Management has elected the fair value option for all single family LHFS (originated with the intent to market for sale) and records these loans at fair value. Gains and losses from changes in fair value on LHFS are recognized in net gain on mortgage loan origination and sale activities within noninterest income. Direct loan origination costs and fees for single family loans originated as held for sale are recognized as noninterest expenses.

Multifamily and Small Business Administration ("SBA") LHFS are accounted for at the lower of amortized cost or fair value ("LOCOM"). LOCOM valuations are performed quarterly or at the time of transfer to or from LHFS. Related gains and losses are recognized in net gain on mortgage loan origination and sale activities. Direct loan origination costs and fees for multifamily and SBA loans classified as held for sale are deferred at origination and recognized in gain on sale in earnings at the time of sale.
LHFI
LHFI

LHFI are reported at the principal amount outstanding, net of cumulative charge-offs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or pay-off. If subsequent changes occur as part of the balance sheet management process, the Company may decide to sell loans classified as LHFI. Any such loans held for an extended period before they are sold are transferred to LHFS and carried at the lower of amortized cost or fair value. Interest on loans is recognized at the contractual rate of interest and is only accrued if deemed collectible. Deferred fees and costs and premiums and discounts are amortized over the contractual terms of the underlying loans using the interest method or straight-line method.
Nonaccrual Loans, Modifications to Borrowers Experiencing Financial Difficulty ("MBFD"), and ACL for LHFI
Nonaccrual Loans

Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment or if part of the principal balance has been charged off. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied first to reduce the outstanding principal balance. Generally, a loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans whose repayments are insured by the Federal Housing Administration ("FHA"), guaranteed by the Department of Veterans' Affairs ("VA") or Ginnie Mae ("GNMA") are maintained on accrual status even if 90 days or more past due.

Modifications to Borrowers Experiencing Financial Difficulty ("MBFD")

The Company provides MBFDs which may include other than insignificant delays in payment of amounts due, extension of the terms of the notes or reduction in the interest rates on the notes. In certain instances, the Company may grant more than one type of modification. The granting of modifications for the years ended December 31, 2024 and 2023 did not have a material impact on the ACL.

When a borrower experiences financial difficulty, we sometimes modify or restructure loans, which may include delays in payment of amounts due, forgiveness of principal, extension of the terms of the notes or a reduction in the interest rates on the notes. These loans are classified as MBFDs. MBFDs are loans modified for the purpose of alleviating temporary impairments to the borrower’s financial condition or cash flows. A workout plan between us and the borrower is designed to provide a bridge for borrower cash flow shortfalls in the near term.

ACL for LHFI

The ACL for LHFI is a valuation account that is deducted from the loans amortized cost basis to present the net amount expected to be collected on the loans. Loan balances are charged off against the ACL when management believes the non-collectability of a loan balance is confirmed. Recoveries are recorded as an increase to the ACL for LHFI to the extent they do not exceed the related charge-off amounts. The ACL for LHFI, as reported in our consolidated balance sheets, is adjusted by a provision for credit losses and reduced by the charge-offs of loan amounts, net of recoveries.

Management estimates the ACL balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix or delinquency levels or other relevant factors.
The credit loss estimation process involves procedures to appropriately consider the unique characteristics of its two loan portfolios, the consumer loan portfolio and the commercial loan portfolio. These two portfolios are further disaggregated into loan pools, the level at which credit risk is monitored. When computing ACL levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, delinquency status and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts. Determining the appropriateness of the ACL is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, based on the factors and forecasts then prevailing, may result in material changes in the ACL and provision for credit losses.
Credit Loss Measurement
The ACL level is influenced by current conditions related to loan volumes, loan asset quality ratings ("AQR") migration or delinquency status, historical loss experience and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses has two basic components: first, a pooled component for estimated expected credit losses for pools of loans that share similar risk characteristics and second an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans.
The Company's ACL model methodology is to build a reserve rate using historical life of loan default rates combined with assessments of current loan portfolio information and current and forecasted economic environment and business cycle
information. The model uses statistical analysis to determine the life of loan default rates for the quantitative component and analyzes qualitative factors (Q-Factors) that assess the current loan portfolio conditions and forecasted economic environment and collateral values. Below is the general overview our ACL model.
Loans that Share Similar Risk Characteristics with Other Loans
For loans that share similar risk characteristics, loans are segregated into loan pools based on similar risk characteristics, like product types or primary source of repayment to estimate the ACL.
Historical Loss Rates
The Company analyzed loan data from a full economic cycle, to the extent that data was available, to calculate life of loan loss rates. Based on the current economic environment and available loan level data, it was determined the Loss Horizon Period ("LHP") should begin prior to the economic recession that began in 2007. The Company monitors and reviews the LHP on an annual basis to determine appropriate time frames to be included based on economic indicators.
Under current expected credit losses methodology ("CECL"), the Company groups pools of loans by similar risk characteristics. Using these pools, sub-pools are established at a more granular level incorporating delinquency status and original FICO or original LTV (for consumer loans) and risk ratings (for commercial loans). Using the pool and sub-pool structure, cohorts are established historically on a quarterly basis containing the population in these sets as of that point in time. After the establishment of these cohorts, the loans within the cohorts are then tracked from that point forward to establish long-term Probability of Default ("PD") at the sub-pool level and Loss Given Default ("LGD") for the pool level. These historical cohorts and their PD/LGD outcomes are then averaged together to establish expected PDs and LGDs for each sub-pool.

Once historical cohorts are established, the loans in the cohort are tracked moving forward for default events. The Company has defined default events as the first dollar of loss. If a loan in the cohort has experienced a default event over the LHP then the balance of the loan at the time of cohort establishment becomes part of the numerator of the PD calculation. The Loss Given Probability of Default ("LGPD") or Expected Loss ("EL") is the weighted average PD for each sub-pool cohort times the average LGD for each pool. The output from the model then is a series of EL rates for each loan sub-pool, which are applied to the related outstanding balances for each loan sub-pool to determine the ACL reserve based on historical loss rates.
Q-Factors
The Q-Factors adjust the expected historic loss rates for current and forecasted conditions that are not provided for in the historical loss information. The Company has established a methodology for adjusting historical expected loss rates based on these more recent or forecasted changes. The Q-Factor methodology is based on a blend of quantitative analysis and management judgment and reviewed on a quarterly basis.
Each of the thirteen factors in the FASB standard were analyzed for common risk characteristics and grouped into seven consolidated Q-Factors as listed below:
Qualitative FactorFinancial Instruments - Credit Losses
Portfolio Credit QualityThe borrower's financial condition, credit rating, credit score, asset quality or business prospects
The borrower's ability to make scheduled interest or principal payments
The volume and severity of past due financial assets and the volume and severity of adversely classified or rated financial assets
Remaining PaymentsThe remaining payment terms of the financial assets
The remaining time to maturity and the timing and extent of payments on the financial assets
Volume & NatureThe nature and volume of the entity's financial assets
Collateral ValuesThe value of underlying collateral on financial assets in which the collateral-dependent practical expedient has not been utilized
Economic
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: changes and expected changes in national, regional and local economic and business conditions and developments in which the entity operates, including the condition and expected condition of various market segments
Credit CultureThe entity's lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices, as well as knowledge of the borrower's operations or the borrower's standing in the community
The quality of the entity's credit review system
The experience, ability and depth of the entity's management, lending staff, and other relevant staff
Business Environment
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: regulatory, legal, or technological environment to which the entity has exposure
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: changes and expected changes in the general market condition of either the geographical area or the industry to which the entity has exposure
An eighth Q-Factor, Management Overlay, allows the Bank to adjust specific pools when conditions exist that were not contemplated in the model design that warrant an adjustment. The economic downturn caused by the COVID-19 pandemic and resulting accounting treatment of forbearances is an example of such a condition.
The Company has chosen two years as the forecast period based on management judgment and has determined that reasonable and supportable forecasts should be made for two of the Q-Factors: Economic and Collateral values.
Management has assigned weightings for each qualitative factor as well as individual metrics within each qualitative factor as to the relative importance of that factor or metric specific to each portfolio type. The Q-Factors above are evaluated using a seven-point scale ranging from significant improvement to significant deterioration.
The CECL Q-Factor methodology bounds the Q-Factor adjustments by a minimum and maximum range, based on the Bank’s own historical expected loss rates for each respective pool. The rating of the Q-Factor on the seven-point scale, along with the allocated weight, determines the final expected loss adjustment. The model is constructed so that the total of the Q-Factor adjustments plus the current expected loss rate cannot be outside the maximum or minimum two-year loss rate for that pool, which is aligned with the Bank's chosen forecast period. Loss rates beyond two years are not adjusted in the Q-Factor process and the model reverts to the historical mean loss rates. Management Overlays are not bounded by the historical maximums.
Quarterly, loan data is gathered to update the portfolio metrics analyzed in the Q-Factor model. The model is updated with current data and applicable forecasts, then the results are reviewed by management. After consensus is reached on all Q-Factor ratings, the results are input into the Q-Factor model and applied to the pooled loans which are reviewed to determine the adequacy of the reserve.
Additional details describing the model by portfolio are below:
Consumer Loan Portfolio
The consumer loan portfolio is comprised of the single family and home equity loan classes, which are underwritten after evaluating a borrower's capacity, credit and collateral. Other consumer loans are grouped with home equity loans. Capacity refers to a borrower's ability to make payments on the loan. Several factors are considered when assessing a borrower's capacity, including the borrower's employment, income, current debt, assets and level of equity in the property. Credit refers to how well a borrower manages current and prior debts as documented by a credit report that provides credit scores and current and past information about the borrower's credit history. Collateral refers to the type and use of property, occupancy and market value. Property appraisals may be obtained to assist in evaluating collateral. Loan-to-property value and debt-to-income ratios, loan amount and lien position are considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends such as conditions that negatively affect housing prices, demand for housing and levels of unemployment.
Consumer Loan Portfolio Loss Rate Model
Under CECL, the Bank utilizes pools of loans that are grouped by similar risk characteristics: Single Family and Home Equity Loans. Sub-Pools are established at a more granular level for the calculation of PDs, incorporating delinquency status, original FICO and original LTV.
Consumer portfolio cohorts are established by grouping each ACL sub-pool at a point in time. Once historical cohorts are established, the loans in the cohort are tracked moving forward for default events.

The Q-Factors adjust the expected historic loss rates for current and forecasted conditions that are not provided for in the historical loss information. For Single Family loans all Q-Factors noted above are evaluated. For the Home Equity loans, collateral values are not evaluated as the Bank has determined the FICO score trends are a more relevant predictor of default than current collateral value for those types of loans. These factors are evaluated based on current conditions and forecasts (as applicable), using a seven-point scale ranging from significant improvement to significant deterioration.
Commercial Loan Portfolio
The commercial loan portfolio is comprised of the non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loan classes, whose underwriting standards consider the factors described for single family and home equity loan classes as well as others when assessing the borrower's and associated guarantor's or other related party’s financial position. These other factors include assessing liquidity, net worth, leverage, other outstanding indebtedness of the borrower, the quality and reliability of cash expected to flow through the borrower (including the outflow to other lenders) and prior experiences with the borrower.
This information is used to assess financial capacity, profitability and experience. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing.
Commercial Loan Portfolio Loss Rate Model
The Bank has subdivided the commercial loan portfolio into the following ACL reporting pools to more accurately group risk characteristics: Commercial Business, Owner Occupied CRE, Multifamily, Multifamily Construction, CRE, CRE Construction, Single Family Construction to Permanent, and Single Family Construction, which includes lot, land and acquisition and development loans. ACL sub-pools are established at a more granular level for the calculation of PDs, utilizing risk rating.

As outlined in the Bank’s policies, commercial loans pools are non-homogenous and are regularly assessed for credit quality. For purposes of CECL, loans are sub-pooled according to the following AQR Ratings:

1-6: These loans meet the definition of “Pass" assets. They are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less costs to acquire and sell in a timely manner, of any underlying collateral. The Bank further uses the available AQR ratings for components of the sub-pools.
7: These loans meet the regulatory definition of “Special Mention.” They contain potential weaknesses, that if uncorrected may result in deterioration of the likelihood of repayment or in the Bank’s credit position.
8: These loans meet the regulatory definition of “Substandard.” They are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. They have well-defined weaknesses and have unsatisfactory characteristics causing unacceptable levels of risk.
Commercial portfolio cohorts are established by grouping each ACL sub-pool at a point in time. Once historical cohorts are established, the loans in the cohort are tracked moving forward for default events. The Q-Factors adjust the expected historic loss rates for current and forecasted conditions that are not provided for in the historical loss information. All the Q-Factors noted above are evaluated for Commercial portfolio loans except for Commercial Business and Owner Occupied CRE loans which exclude the collateral values Q-Factor. The Company has determined that these loans are primarily underwritten by evaluating the cash flow of the business and not the underlying collateral. Factors above are evaluated based on current conditions and forecasts (as applicable), using a seven-point scale ranging from significant improvement to significant deterioration.
Loans That Do Not Share Risk Characteristics with Other Loans
For a loan that does not share risk characteristics with other loans, expected credit loss is measured on net realizable value that is the difference between the discounted value of the expected future cash flows, based on the original effective interest rate and the amortized cost basis of the loan. For these loans, we recognize expected credit loss equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan fees and costs), except when the loan is collateral dependent, which is when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated costs to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral.
The starting point for determining the fair value of collateral is through obtaining external appraisals. Generally, collateral values for collateral dependent loans are updated every twelve months, either from external third parties or in-house certified appraisers. A third-party appraisal is required at least annually for substandard loans and OREO. For performing consumer loans secured by real estate that are classified as collateral dependent, the Bank determines the fair value estimates quarterly using automated valuation services. Once the expected credit loss amount is determined, an ACL is recorded equal to the expected credit loss and included in the ACL. If no credit loss is expected to occur, then no ACL is recognized for this loan. If the expected credit loss is determined to be permanent or not recoverable, the expected credit loss will be charged off. Factors considered by management in determining if the expected credit loss is permanent or not recoverable include whether management judges the loan to be uncollectible, repayment is deemed to be protracted beyond reasonable time frames, or the loss becomes evident owing to the borrower's lack of assets or, for single family loans, the loan is 180 days or more past due unless both well-secured and in the process of collection.

ACL for Off-Balance Sheet Credit Exposures
The Bank estimates expected credit losses over the contractual period in which the Bank is exposed to risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Bank. Reserves are required for off-balance sheet credit exposures that are not unconditionally cancellable. The ACL on unfunded loan commitments is based on an estimate of unfunded commitment utilization over the life of the loan, applying the EL rate to the estimated utilization balance as of the reporting period end date.
Other Real Estate Owned
Other Real Estate Owned
Real estate properties acquired through, or in lieu of, loan foreclosure are recorded at net realizable value (fair value of collateral less estimated costs to sell). At the time of possession, an appraisal is obtained and any excess of the loan balance over the net realizable value is charged against the ACL. After foreclosure, valuations are periodically performed by management. Any subsequent declines in fair value are recorded as a charge to current period earnings with a corresponding write-down to the asset. All legal fees and direct costs, including foreclosure and other related costs are expensed as incurred.
Mortgage Servicing Rights
Mortgage Servicing Rights

MSRs are recognized as separate assets on our consolidated balance sheets when we retain the right to service loans that we have sold or purchase rights to service. We initially record all MSRs at fair value. For subsequent measurements, single family MSRs are accounted for at fair value, with changes in fair value recorded through current period earnings, while multifamily and SBA MSRs are accounted for at the lower of amortized cost or fair value.

Subsequent fair value measurements of MSRs are determined by considering the present value of estimated future net servicing cash flows. Changes in the fair value of MSRs result from changes in (1) model inputs and assumptions and (2) modeled amortization, representing the collection and realization of expected cash flows and curtailments over time. The significant
model inputs used to measure the fair value of MSRs include assumptions regarding market interest rates, projected prepayment speeds, discount rates, estimated costs of servicing and other income and additional expenses associated with the collection of delinquent loans.

Multifamily and SBA MSRs are evaluated periodically for impairment based upon the fair value of the MSRs as compared to amortized cost. Impairment is determined by comparing the fair value of the portfolio based on predominant risk characteristic loan type, to amortized cost. Impairment is recognized to the extent that fair value is less than the capitalized amount of the portfolio.
For single family MSRs, loan servicing income includes fees earned for servicing the loans and the changes in fair value over the reporting period of both our MSRs and the derivatives used to economically hedge our MSRs. For other MSRs, loan servicing income includes fees earned for servicing the loans less the amortization of the related MSRs and any impairment adjustments.
Revenue Recognition
Revenue Recognition

Descriptions of our primary revenue-generating activities that fall within the scope of Accounting Standards Committee ("ASC") Topic 606 Revenue Recognition and are presented in our consolidated income statements as follows:

Depositor and other retail banking fees (in Deposit Fees)

Depositor and other retail banking fees consist of monthly service fees and other deposit account related fees. The Company's performance obligation for these fees is generally satisfied, and the related revenue recognized over the period in which the service is provided.

Commission Income (in Other Noninterest Income)

Commission income primarily consists of revenue received on insurance policies. The Company's performance obligation for commissions is generally satisfied, and the related revenue generally recognized over the course of the policy.

Credit Card Fees (in Other Noninterest Income)

The Company offers credit cards to its customers through a third party and earns a fee on each transaction and a fee for each new account activation on a net basis. Revenue is recognized when the services are performed.

Sale of Other Real Estate Owned (in Other Noninterest Income)

A gain or loss, the difference between the cost basis of the property and its sale price, on other real estate owned is recognized when the performance obligation is met, which is at the time the property title is transferred to the buyer. To record a sale of OREO, the Company evaluates if: (a) a commitment on the buyer’s part exists, (b) collection is probable in circumstances where the initial investment is minimal and (c) the buyer has obtained control of the asset, including the significant risks and rewards of ownership. If there is no commitment on the buyer’s part, collection is not probable or the buyer has not obtained control of the asset, then a gain will not be recognized.
Premises and Equipment
Premises and Equipment
Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which generally range from 3 to 20 years. The cost of leasehold improvements is amortized using the straight-line method over the shorter of the estimated useful life of the asset or the term of the related leases. The Company periodically evaluates premises and equipment for impairment.
Leases
Leases

We determine if an arrangement is a lease at inception. Operating and finance leases are included in lease right-of-use ("ROU") assets, and lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The lease liability is recognized at commencement date based on the present value of lease payments over the lease term. The right-of-use asset is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as prepaid rent, lease incentives and deferred rent. As the rate implicit in most of our leases are not readily determinable, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease contract at commencement date. We have lease agreements with lease and non-lease components, which are generally accounted for separately for real estate leases.

Certain of our lease agreements include rental payments that adjust periodically based on changes in the Consumer Price Index ("CPI"). Subsequent increases in the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. The ROU assets and lease liabilities are not re-measured as a result of changes in the CPI.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for our financing leases is comprised of the amortization of the right-of-use asset and interest expense recognized based on the effective interest method.

We use the long-lived assets impairment accounting guidance to determine whether an ROU asset is impaired, and if impaired, the amount of loss to recognize. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These could include vacating the leased space, obsolescence, or physical damage to a facility. If an impairment loss is recognized for a ROU asset, the adjusted carrying amount of the ROU asset would be its new accounting basis. The remaining ROU asset (after the impairment write-down) is amortized on a straight-line basis over the remaining lease term.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

Goodwill is recorded upon completion of a business combination as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill has been determined to have an indefinite useful life and is not amortized but tested for impairment at least annually or more frequently if events and circumstances occur that indicate it is more likely than not the fair value of the reporting unit is less than its carrying value necessitating an impairment test. The Company performs its annual impairment testing in the third quarter of each year, or sooner if a triggering event occurs. Triggering events include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained declines in the Company’s stock price or market capitalization, considered both in absolute terms and relative to peers.
As a result of sustained decreases in the Company’s stock price and associated market value during the second quarter of 2023, the Company conducted an impairment analysis of its goodwill as of June 30, 2023. We applied an income-based valuation approach using the Company’s strategic forecast, general market growth assumptions and other market-based inputs, which determined that goodwill was impaired as the indicated enterprise fair value of the Company was lower than the book value of equity as of the measurement date. As a result, in the second quarter of 2023, we recorded an impairment charge of our entire goodwill balance of $39.9 million as the deficit of enterprise fair value to book value of equity exceeded the amount of goodwill on the balance sheet. This was a non-cash charge to earnings and had no impact on tangible or regulatory capital, cash flows or our liquidity position.
Intangible assets with definite useful lives, such as core deposit intangible assets arising from bank and branch acquisitions, are amortized over their estimated useful lives.
Securities Sold Under Agreements to Repurchase
Securities Sold Under Agreements to Repurchase

From time to time, the Company may enter into sales of securities under agreements to repurchase ("repurchase agreements"). Repurchase agreements are accounted for as financing arrangements with the obligation to repurchase securities sold reflected as a liability on the consolidated balance sheets. The securities underlying the repurchase agreements continue to be recognized as investment securities in the consolidated balance sheet.
Income Taxes
Income Taxes

Deferred tax assets and liabilities arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Deferred tax assets and tax carryforwards are only recognized if, in the opinion of management, it is more likely than not that the deferred tax assets will be fully realized. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. We are subject to federal income tax and also state and local income taxes in a number of different jurisdictions.
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in general, administrative and other expense.
Derivatives and Hedging Activities
Derivatives and Hedging Activities

In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The fair value of derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet. All derivatives are evaluated at inception as to whether or not they are hedge accounting or non-hedge accounting activities. For derivative instruments designated as non-hedge accounting activities (also referred to as economic hedges), the change in fair value is recognized currently in earnings. Gains and losses on derivative contracts utilized for economically hedging the mortgage pipeline are recognized as part of the net gain on mortgage loan origination and sale activities within noninterest income. Gains and losses on derivative contracts utilized for economically hedging our single family MSRs are recognized as part of loan servicing income within noninterest income.

For derivative instruments designated as hedge accounting activities, a qualitative analysis is performed at inception to determine if the derivative instrument is highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk during the period that the hedge is designated. Subsequently, a qualitative assessment of a hedge’s effectiveness is performed on a quarterly basis. All derivative instruments that qualify and are designated for hedge accounting are recorded at fair value and classified as either a hedge of the fair value of a recognized asset or liability ("fair value hedge") or a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"). Changes in the fair value of a derivative that is highly effective and designated as a fair value hedge is recognized in earnings and the change in fair value on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized currently in earnings. Changes in the fair value of a derivative that is highly effective and designated as a cash flow hedge are recorded in other comprehensive income (loss) until cash flows of the hedged item are realized. All hedge amounts recognized in earnings are presented in the same income statement line item as the earnings effect of the hedged item.

If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a
hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts remain within other comprehensive income (loss).

Derivative instruments expose us to credit risk in the event of nonperformance by counterparties. This risk consists primarily of the termination value of agreements where the Company is in a favorable position. The Company minimizes counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, as appropriate.

The Company also executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are economically hedged by simultaneously entering into an offsetting interest rate swap that the Company executes with a third party, such that the Company minimizes its net risk exposure.
Share-Based Compensation
Share-Based Compensation

The Company issues various forms of stock-based compensation awards annually, including restricted stock units ("RSUs") and performance stock units ("PSUs"). Compensation expense related to RSUs is based on the fair value of the underlying stock on the award date and is recognized over the period in which an employee is required to provide services in exchange for the award, generally the vesting period. PSUs are subject to market-based vesting criteria in addition to a requisite service period and cliff vest based on those conditions at the end of three years. The grant date fair value of PSUs is determined through the use of an independent third party which employs the use of a Monte Carlo simulation. The Monte Carlo simulation estimates grant date fair value using certain input assumptions such as: expected volatility, award term, expected risk-free rate of interest and expected dividend yield on the Company’s common stock and also incorporates into the grant date fair value calculation the probability that the performance targets will be achieved. Forfeitures of stock-based awards are recognized when they occur.
Fair Value Measurement
Fair Value Measurement

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value is an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular instruments. Fair value measures are classified according to a three-tier fair value hierarchy, which is based on the observability of inputs used to measure fair value. Changes in assumptions or in market conditions could significantly affect these estimates.
The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company's approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements.

Fair Value Hierarchy
A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability for substantially the full term of the financial instrument.
Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company's assumptions of what market participants would use in pricing the asset or liability.
The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period.

Estimation of Fair Value

Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange.

The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company's assets and liabilities valued at fair value on a recurring basis.
Asset/Liability classValuation methodology, inputs and assumptionsClassification
Investment securities
Trading securitiesFair Value is based on quoted prices in an active market.Level 1 recurring fair value measurement.
Investment securities AFSObservable market prices of identical or similar securities are used where available.
 
Level 2 recurring fair value measurement.
If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: 
•      Expected prepayment speeds 
•      Estimated credit losses 
•      Market liquidity adjustments
Level 3 recurring fair value measurement.
LHFS
Single family loans, excluding loans transferred from held for investmentFair value is based on observable market data, including:
•       Quoted market prices, where available 
•       Dealer quotes for similar loans 
•       Forward sale commitments
Level 2 recurring fair value measurement.
When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs:
•       Benchmark yield curve  
•       Estimated discount spread to the benchmark yield curve
•       Expected prepayment speeds
Estimated fair value classified as Level 3.
Mortgage servicing rights
Single family MSRs
For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 9, Mortgage Banking Operations.
Level 3 recurring fair value measurement.
Derivatives
Futures and OptionsFair value is based on closing exchange prices.Level 1 recurring fair value measurement.
Forward sale commitments
Interest rate swaps
Fair value is based on quoted prices for identical or similar instruments when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs, including:  
•       Forward interest rates 
•       Interest rate volatilities
Level 2 recurring fair value measurement.
IRLC
The fair value considers several factors including:
•       Fair value of the underlying loan based on quoted prices in the secondary market, when available. 
•       Value of servicing
•       Fall-out factor
Level 3 recurring fair value measurement.
Transfers of Financial Assets
Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Contingencies
Contingencies

Contingent liabilities, including those that exist as a result of a guarantee or indemnification, are recognized when it becomes probable that a loss has been incurred and the amount of the loss is reasonably estimable. For indemnifications provided in sales agreements, a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction.
Earnings per Share
Earnings per Share

Earnings per share of common stock is calculated on both a basic and diluted basis, based on the weighted average number of common and common equivalent shares outstanding. Basic earnings per share excludes potential dilution from common equivalent shares, such as those associated with stock-based compensation awards, and is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as common equivalent shares associated with stock-based compensation awards, were exercised or converted into common stock that would then share in the net earnings of the Company. Potential dilution from common equivalent shares is determined using the treasury stock method, reflecting the potential settlement of stock-based compensation awards resulting in the issuance of additional shares of the Company’s common stock. Stock-based compensation awards that would have an anti-dilutive effect have been excluded from the determination of diluted earnings per share.
Marketing Costs
Marketing Costs
The Company expenses marketing costs, including advertising, in the period incurred.
Recent Accounting Developments
Recent Accounting Developments

In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. We adopted ASU 2023-02 in 2024 and it did not have a material impact on the Company’s financial position or results of operations.

In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." The amendments in ASU 2023-06 modify the disclosure or presentation requirements of a variety of Topics in the Codification, with the intention of clarifying or improving them and aligning the requirements in the codification with the SEC's regulations (and will be removed from the SEC regulations). ASU 2023-06 should be adopted prospectively, and the effective date varies and is determined for each individual disclosure based on the effective date of the SEC's removal of the related disclosure. We are assessing the impact of ASU 2023-06 and believe it will not have an impact on the Company's financial position or results of operation as it impacts disclosures only.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 and should be applied retrospectively. We adopted ASU 2023-07 in 2024 and it did not have an impact on the Company's financial position or results of operation as it impacts disclosures only.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The adoption of ASU 2023-09 will not have an impact on the Company's financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. The adoption of ASU
2024-03 will not have an impact on the Company's financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures.
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of qualitative factors for credit losses
Each of the thirteen factors in the FASB standard were analyzed for common risk characteristics and grouped into seven consolidated Q-Factors as listed below:
Qualitative FactorFinancial Instruments - Credit Losses
Portfolio Credit QualityThe borrower's financial condition, credit rating, credit score, asset quality or business prospects
The borrower's ability to make scheduled interest or principal payments
The volume and severity of past due financial assets and the volume and severity of adversely classified or rated financial assets
Remaining PaymentsThe remaining payment terms of the financial assets
The remaining time to maturity and the timing and extent of payments on the financial assets
Volume & NatureThe nature and volume of the entity's financial assets
Collateral ValuesThe value of underlying collateral on financial assets in which the collateral-dependent practical expedient has not been utilized
Economic
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: changes and expected changes in national, regional and local economic and business conditions and developments in which the entity operates, including the condition and expected condition of various market segments
Credit CultureThe entity's lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices, as well as knowledge of the borrower's operations or the borrower's standing in the community
The quality of the entity's credit review system
The experience, ability and depth of the entity's management, lending staff, and other relevant staff
Business Environment
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: regulatory, legal, or technological environment to which the entity has exposure
The environmental factors of a borrower and the areas in which the entity's credit is concentrated, such as: changes and expected changes in the general market condition of either the geographical area or the industry to which the entity has exposure
Schedule of goodwill The following table presents the changes in the carrying amount of goodwill in 2023:
(in thousands)
Balance, December 31, 2022$27,900 
Additions - branch acquisition
11,957 
Goodwill impairment charge(39,857)
Balance December 31, 2023$— 
v3.25.0.1
INVESTMENT SECURITIES (Tables)
12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Amortized cost and estimated fair value of available for sale securities
The following tables set forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and HTM:
At December 31, 2024
(in thousands)Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
AFS
Mortgage-backed securities ("MBS"):
Residential$174,887 $229 $(7,654)$167,462 
Commercial54,620 — (6,978)47,642 
Collateralized mortgage obligations ("CMOs")
Residential349,348 36 (31,940)317,444 
Commercial59,725 14 (4,794)54,945 
Municipal bonds433,162 95 (54,998)378,259 
Corporate debt securities31,136 — (6,192)24,944 
U.S. Treasury securities22,306 — (2,319)19,987 
Agency debentures10,320 — (1,044)9,276 
Total$1,135,504 $374 $(115,919)$1,019,959 
HTM
   Municipal bonds $2,301 $— $(28)$2,273 

At December 31, 2023
(in thousands)Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
AFS
MBS:
Residential$194,141 $117 $(10,460)$183,798 
Commercial55,235 — (7,479)47,756 
CMOs:
Residential473,269 (33,539)439,738 
Commercial63,456 — (6,059)57,397 
Municipal bonds452,057 670 (47,853)404,874 
Corporate debt securities45,611 34 (7,098)38,547 
U.S. Treasury securities22,658 — (2,474)20,184 
Agency debentures60,202 (1,302)58,905 
Total$1,366,629 $834 $(116,264)$1,251,199 
HTM
Municipal bonds$2,371 $— $(40)$2,331 
Amortized cost and estimated fair value of held to maturity securities
The following tables set forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and HTM:
At December 31, 2024
(in thousands)Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
AFS
Mortgage-backed securities ("MBS"):
Residential$174,887 $229 $(7,654)$167,462 
Commercial54,620 — (6,978)47,642 
Collateralized mortgage obligations ("CMOs")
Residential349,348 36 (31,940)317,444 
Commercial59,725 14 (4,794)54,945 
Municipal bonds433,162 95 (54,998)378,259 
Corporate debt securities31,136 — (6,192)24,944 
U.S. Treasury securities22,306 — (2,319)19,987 
Agency debentures10,320 — (1,044)9,276 
Total$1,135,504 $374 $(115,919)$1,019,959 
HTM
   Municipal bonds $2,301 $— $(28)$2,273 

At December 31, 2023
(in thousands)Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
AFS
MBS:
Residential$194,141 $117 $(10,460)$183,798 
Commercial55,235 — (7,479)47,756 
CMOs:
Residential473,269 (33,539)439,738 
Commercial63,456 — (6,059)57,397 
Municipal bonds452,057 670 (47,853)404,874 
Corporate debt securities45,611 34 (7,098)38,547 
U.S. Treasury securities22,658 — (2,474)20,184 
Agency debentures60,202 (1,302)58,905 
Total$1,366,629 $834 $(116,264)$1,251,199 
HTM
Municipal bonds$2,371 $— $(40)$2,331 
Investment securities in an unrealized loss position
Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:
At December 31, 2024
 Less than 12 months12 months or moreTotal
(in thousands)Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
AFS
MBS:
Residential
$(2)$532 $(7,652)$158,044 $(7,654)$158,576 
Commercial— — (6,978)47,642 (6,978)47,642 
CMOs:
Residential(78)7,481 (31,862)293,297 (31,940)300,778 
Commercial— — (4,794)51,834 (4,794)51,834 
Municipal bonds(810)28,361 (54,188)340,571 (54,998)368,932 
Corporate debt securities— — (6,192)24,944 (6,192)24,944 
U.S. Treasury securities— — (2,319)19,987 (2,319)19,987 
Agency debentures— — (1,044)9,276 (1,044)9,276 
Total$(890)$36,374 $(115,029)$945,595 $(115,919)$981,969 
HTM
Municipal bonds$— $— $(28)$2,273 $(28)$2,273 

At December 31, 2023
 Less than 12 months12 months or moreTotal
(in thousands)Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
AFS
MBS:
Residential$(3)$1,145 $(10,457)$177,393 $(10,460)$178,538 
Commercial— 61 (7,479)47,695 (7,479)47,756 
CMOs:
Residential(368)83,815 (33,171)348,914 (33,539)432,729 
Commercial— — (6,059)57,397 (6,059)57,397 
Municipal bonds(73)7,489 (47,780)364,775 (47,853)372,264 
Corporate debt securities— — (7,098)28,513 (7,098)28,513 
U.S. Treasury securities— — (2,474)20,184 (2,474)20,184 
Agency debentures(135)42,897 (1,167)11,003 (1,302)53,900 
Total$(579)$135,407 $(115,685)$1,055,874 $(116,264)$1,191,281 
HTM
Municipal bonds$— $— $(40)$2,331 $(40)$2,331 
Amortized cost and estimated fair value by contractual maturity
The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield.

 At December 31, 2024
 Within one yearAfter one year
through five years
After five years
through ten years
After
ten years
Total
(dollars in thousands)Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
AFS
Municipal bonds$— — %$15,531 3.88 %$70,678 2.92 %$292,050 2.93 %$378,259 2.97 %
Corporate debt securities— — %2,735 2.08 %22,209 4.27 %— — %24,944 4.03 %
U.S. Treasury securities— — %19,987 1.15 %— — %— — %19,987 1.15 %
Agency debentures— — %1,770 2.13 %4,442 2.17 %3,064 2.14 %9,276 2.15 %
Total $— — %$40,023 2.32 %$97,329 3.19 %$295,114 2.92 %$432,466 2.93 %
HTM
Municipal bonds$2,273 2.29 %$— — %$— — %$— — %$2,273 2.29 %

 
 At December 31, 2023
 Within one yearAfter one year
through five years
After five years
through ten years
After
ten years
Total
(dollars in thousands)Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
Fair
Value
Weighted
Average
Yield
AFS
Municipal bonds$— — %$5,856 1.84 %$60,775 3.36 %$338,243 3.01 %$404,874 3.04 %
Corporate debt securities4,425 3.53 %12,714 4.95 %21,408 3.89 %— — %38,547 4.21 %
U.S. Treasury securities— — %20,184 1.14 %— — %— — %20,184 1.14 %
Agency debentures16,977 4.93 %30,925 5.2 %7,758 2.15 %3,245 2.17 %58,905 4.51 %
Total $21,402 4.64 %$69,679 3.64 %$89,941 3.40 %$341,488 3.00 %$522,510 3.21 %
HTM
Municipal bonds$— — %$2,331 2.29 %$— — %$— — %$2,331 2.29 %
Sales of investment securities available for sale
Sales of AFS investment securities were as follows: 
 Years Ended December 31,
(in thousands)20242023
Proceeds$— $4,693 
Gross gains— 
Gross losses— — 
Schedule of financial instruments owned and pledged as collateral
The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law.
At December 31,
(in thousands)20242023
Federal Reserve Bank to secure existing or potential borrowings
$906,475 $647,104 
Washington, Oregon and California State to secure public deposits195,212 10,654 
Other securities pledged1,334 1,440 
Total securities pledged as collateral$1,103,021 $659,198 
v3.25.0.1
LOANS AND CREDIT QUALITY (Tables)
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans held for investment LHFI consists of the following:
At December 31,
(in thousands)20242023
CRE
Non-owner occupied CRE$570,750 $641,885 
Multifamily2,992,675 3,940,189 
Construction/land development472,740 565,916 
Total4,036,165 5,147,990 
Commercial and industrial loans
Owner occupied CRE361,997 391,285 
Commercial business312,004 359,049 
Total
674,001 750,334 
Consumer loans
Single family 1,109,095 1,140,279 
Home equity and other412,535 384,301 
Total (1)
1,521,630 1,524,580 
                  Total LHFI6,231,796 7,422,904 
ACL
(38,743)(40,500)
Total LHFI less ACL
$6,193,053 $7,382,404 
(1)    Includes $1.3 million at December 31, 2024 and 2023, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated income statements.
Schedule of related party transactions The following is a summary of activity during the years ended December 31, 2024 and 2023 with respect to such aggregate loans to these related parties and their associates:
Years Ended December 31,
(in thousands)20242023
Beginning balance$1,932 $1,978 
New loans and advances, net of principal repayments(73)(46)
Ending balance$1,859 $1,932 
Activity in the allowance for credit losses
Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:
 Years Ended December 31,
(in thousands)20242023
Beginning balance$40,500 $41,500 
Provision for credit losses677 (67)
Net (charge-offs) recoveries(2,434)(933)
Ending balance$38,743 $40,500 
Allowance for unfunded commitments
Beginning balance$1,823 $2,197 
Provision for credit losses(677)(374)
Ending balance$1,146 $1,823 
Provision for credit losses:
Allowance for credit losses-loans$677 $(67)
Allowance for unfunded commitments(677)(374)
Total$— $(441)

Activity in the ACL by loan portfolio and loan sub-class was as follows:

Year Ended December 31, 2024
(in thousands)Beginning
balance
Charge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$2,610 $— $— $(871)$1,739 
Multifamily13,093 — — 1,816 14,909 
Construction/land development
Multifamily construction3,983 — — (3,134)849 
CRE construction189 — — (123)66 
Single family construction7,365 — — (628)6,737 
Single family construction to permanent672 — — (488)184 
Total27,912 — — (3,428)24,484 
Commercial and industrial loans
Owner occupied CRE899 — — (323)576 
Commercial business2,950 (2,963)522 6,377 6,886 
Total3,849 (2,963)522 6,054 7,462 
Consumer loans
Single family5,287 — (1,684)3,610 
Home equity and other3,452 (178)178 (265)3,187 
Total8,739 (178)185 (1,949)6,797 
Total ACL$40,500 $(3,141)$707 $677 $38,743 
Year Ended December 31, 2023
(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEnding
balance
CRE
Non-owner occupied CRE$2,102 $— $— $508 $2,610 
Multifamily10,974 — — 2,119 13,093 
Construction/land development
Multifamily construction998 — — 2,985 3,983 
CRE construction196 — — (7)189 
Single family construction12,418 — — (5,053)7,365 
Single family construction to permanent1,171 — — (499)672 
Total27,859 — — 53 27,912 
Commercial and industrial loans
Owner occupied CRE1,030 — — (131)899 
Commercial business3,247 (1,062)87 678 2,950 
Total4,277 (1,062)87 547 3,849 
Consumer loans
Single family5,610 — 23 (346)5,287 
Home equity and other3,754 (319)338 (321)3,452 
Total9,364 (319)361 (667)8,739 
Total ACL$41,500 $(1,381)$448 $(67)$40,500 
Designated loan grades by loan portfolio segment and loan class
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:
At December 31, 2024
(in thousands)20242023202220212020
2019 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$— $1,441 $70,128 $71,493 $39,885 $347,058 $(36)$— $529,969 
Special Mention— — — — — 24,551 — — 24,551 
Substandard— — — — — 16,230 — — 16,230 
Total — 1,441 70,128 71,493 39,885 387,839 (36)— 570,750 
Multifamily
Pass1,650 106,415 1,538,855 643,044 257,110 255,643 — — 2,802,717 
Special Mention— — 66,217 4,789 73,308 23,835 — — 168,149 
Substandard— — 15,602 — — 6,207 — — 21,809 
Total1,650 106,415 1,620,674 647,833 330,418 285,685 — — 2,992,675 
Multifamily construction
Pass— 31,349 67,557 — — — — — 98,906 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total— 31,349 67,557 — — — — — 98,906 
CRE construction
Pass19 7,198 — — — — — — 7,217 
Special Mention— — — — — — — — — 
Substandard— — — — 3,821 — — — 3,821 
Total 19 7,198 — — 3,821 — — — 11,038 
Single family construction
Pass121,305 22,412 5,346 7,252 — 69 164,442 — 320,826 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total 121,305 22,412 5,346 7,252 — 69 164,442 — 320,826 
Single family construction to permanent
Current
6,153 9,719 17,598 7,977 523 — — — 41,970 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total 6,153 9,719 17,598 7,977 523 — — — 41,970 
Owner occupied CRE
Pass5,431 10,501 58,423 33,371 41,533 168,082 43 317,387 
Special Mention— 1,789 6,129 7,602 317 26,203 — — 42,040 
Substandard— — 331 — — 2,239 — — 2,570 
Total 5,431 12,290 64,883 40,973 41,850 196,524 43 361,997 
Commercial business
Pass26,706 15,721 36,209 20,347 28,207 28,836 123,003 700 279,729 
Special Mention— — 959 2,380 638 615 386 — 4,978 
Substandard243 406 11,885 — 7,192 4,628 2,920 23 27,297 
Total 26,949 16,127 49,053 22,727 36,037 34,079 126,309 723 312,004 
Total commercial portfolio$161,507 $206,951 $1,895,239 $798,255 $452,534 $904,196 $290,718 $766 $4,710,166 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

At December 31, 2024
(in thousands)20242023202220212020
2019 and prior
RevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$566 $30,940 $378,613 $303,920 $139,159 $251,322 $— $— $1,104,520 
Past due:
30-59 days
— — 452 — — 1,673 — — 2,125 
60-89 days
— — — — — 440 — — 440 
90+ days
— — — — — 2,010 — — 2,010 
Total
566 30,940 379,065 303,920 139,159 255,445 — — 1,109,095 
Home equity and other
Current
1,606 936 1,528 126 85 1,932 399,531 4,449 410,193 
Past due:
30-59 days
25 — — — 474 62 566 
60-89 days
— — — — 626 — 633 
90+ days
— — — — — 10 1,127 1,143 
Total1,631 943 1,533 126 85 1,942 401,758 4,517 412,535 
Total consumer portfolio (1)
$2,197 $31,883 $380,598 $304,046 $139,244 $257,387 $401,758 $4,517 $1,521,630 
Total LHFI$163,704 $238,834 $2,275,837 $1,102,301 $591,778 $1,161,583 $692,476 $5,283 $6,231,796 
(1)    Includes $1.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.
The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:
At December 31, 2023
(in thousands)20232022202120202019
2018 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass$1,499 $70,388 $71,217 $41,235 $118,900 $286,379 $601 $— $590,219 
Special Mention— — — — 686 34,177 — — 34,863 
Substandard— — — — 16,230 — 573 — 16,803 
Total1,499 70,388 71,217 41,235 135,816 320,556 1,174 — 641,885 
Multifamily
Pass108,274 1,813,647 1,151,677 475,708 189,567 177,712 — — 3,916,585 
Special Mention— — 3,942 12,887 2,368 1,344 — — 20,541 
Substandard— — — — — 3,063 — — 3,063 
Total108,274 1,813,647 1,155,619 488,595 191,935 182,119 — — 3,940,189 
Multifamily construction
Pass(198)56,013 112,234 — — — — — 168,049 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total(198)56,013 112,234 — — — — — 168,049 
CRE construction
Pass— 14,685 — — — — — 14,692 
Special Mention— — — — — — — — — 
Substandard— — — 3,821 — — — — 3,821 
Total— 14,685 3,821 — — — — 18,513 
Single family construction
Pass75,305 39,621 12,294 — — 72 146,758 — 274,050 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total75,305 39,621 12,294 — — 72 146,758 — 274,050 
Single family construction to permanent
Current
27,114 56,469 19,871 1,850 — — — — 105,304 
Past due:
30-59 days
— — — — — — — — — 
60-89 days
— — — — — — — — — 
90+ days
— — — — — — — — — 
Total27,114 56,469 19,871 1,850 — — — — 105,304 
Owner occupied CRE
Pass12,459 68,399 39,629 43,399 65,392 111,199 1,122 341,601 
Special Mention1,871 1,478 9,290 — 2,956 28,784 — — 44,379 
Substandard— — — 253 5,051 — — 5,305 
Total14,331 69,877 48,919 43,399 68,601 145,034 1,122 391,285 
Commercial business
Pass17,970 45,892 27,227 33,404 16,198 24,903 157,656 973 324,223 
Special Mention— 11,465 2,891 — 452 38 3,485 — 18,331 
Substandard— — 2,134 7,601 3,788 1,886 1,021 65 16,495 
Total17,970 57,357 32,252 41,005 20,438 26,827 162,162 1,038 359,049 
Total commercial portfolio$244,302 $2,163,372 $1,467,091 $619,905 $416,790 $674,608 $310,096 $2,160 $5,898,324 
The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

At December 31, 2023
(in thousands)20232022202120202019
2018 and prior
RevolvingRevolving-termTotal
CONSUMER PORTFOLIO
Single family
Current
$27,011 $354,691 $313,866 $147,183 $49,126 $245,574 $— $— $1,137,451 
Past due:
30-59 days
— — — — — 781 — — 781 
60-89 days
— — — — — 1,374 — — 1,374 
90+ days
— — — — — 673 — — 673 
Total
27,011 354,691 313,866 147,183 49,126 248,402 — — 1,140,279 
Home equity and other
Current
2,165 2,493 311 121 46 1,631 370,462 5,483 382,712 
Past due:
30-59 days
— — — — 802 162 974 
60-89 days
— — — — 419 — 423 
90+ days— — — — — 24 162 192 
Total2,174 2,498 311 121 46 1,655 371,845 5,651 384,301 
Total consumer portfolio (1)
$29,185 $357,189 $314,177 $147,304 $49,172 $250,057 $371,845 $5,651 $1,524,580 
Total LHFI$273,487 $2,520,561 $1,781,268 $767,209 $465,962 $924,665 $681,941 $7,811 $7,422,904 
(1)    Includes $1.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

The following table presents a vintage analysis of the commercial and consumer portfolio segment by loan sub-class and gross charge-offs:
At December 31, 2024
(in thousands)20242023202220212020
2019 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Commercial business
Gross charge-offs$— $— $(276)$(473)$(1,077)$(1,098)$(39)$— $(2,963)
CONSUMER PORTFOLIO
Home equity and other
Gross charge-offs— (24)(16)(1)— — (137)— (178)
Total LHFI$— $(24)$(292)$(474)$(1,077)$(1,098)$(176)$— $(3,141)

At December 31, 2023
(in thousands)20232022202120202019
2018 and prior
RevolvingRevolving-termTotal
COMMERCIAL PORTFOLIO
Commercial business
Gross charge-offs$— $— $(184)$— $(1,136)$295 $13 $(50)$(1,062)
CONSUMER PORTFOLIO
Home equity and other
Gross charge-offs— (106)(22)— — (4)(187)— (319)
Total LHFI$— $(106)$(206)$— $(1,136)$291 $(174)$(50)$(1,381)
Schedule of collateral dependent loans
The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:
At December 31, 2024
(in thousands)Land1-4 FamilyMultifamilyNon-residential real estateOther non-real estateTotal
CRE
Non-owner occupied CRE
$— $— $— $16,230 $— $16,230 
Multifamily
— — 1,915 — — 1,915 
Construction/land development
CRE construction
3,821 — — — — 3,821 
   Total
3,821 — 1,915 16,230 — 21,966 
Commercial and industrial loans
Owner occupied CRE— — — 205 — 205 
Commercial business
4,420 2,927 — — 3,269 10,616 
   Total
4,420 2,927 — 205 3,269 10,821 
Consumer loans
Single family
— 832 — — — 832 
 Total collateral-dependent loans$8,241 $3,759 $1,915 $16,435 $3,269 $33,619 

At December 31, 2023
(in thousands)1-4 FamilyNon-residential real estateOther non-real estateTotal
CRE
Non-owner occupied CRE
$573 $16,230 $— $16,803 
Construction/land development
CRE construction
— 3,821 — 3,821 
   Total
573 20,051 — 20,624 
Commercial and industrial loans
Commercial business2,788 5,471 4,587 12,846 
   Total 2,788 5,471 4,587 12,846 
Consumer loans
Single family
773 — — 773 
 Total collateral-dependent loans$4,134 $25,522 $4,587 $34,243 
Schedule of loans on nonaccrual with no related allowance for credit loss
The following table presents nonaccrual status for loans:

At December 31, 2024At December 31, 2023
(in thousands)Nonaccrual with no related ACLTotal NonaccrualNonaccrual with no related ACLTotal Nonaccrual
CRE
Non-owner occupied CRE$16,230 $16,230 $16,803 $16,803 
Multifamily1,915 1,915 — — 
Construction/land development
CRE construction
3,821 3,821 3,821 3,821 
Total
21,966 21,966 20,624 20,624 
Commercial and industrial loans
 Owner occupied CRE1,161 1,161 706 706 
 Commercial business8,509 25,740 13,151 13,686 
Total
9,670 26,901 13,857 14,392 
Consumer loans
Single family1,106 2,990 773 2,650 
Home equity and other— 3,137 — 1,310 
Total1,106 6,127 773 3,960 
Total nonaccrual loans$32,742 $54,994 $35,254 $38,976 
Past due loans by loan portfolio segment and loan class
The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:
At December 31, 2024
Past Due and Still Accruing
(in thousands)
30-59 days

60-89 days

90 days or more
Nonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $16,230 $16,230 $554,520 $570,750 
Multifamily— — — 1,915 1,915 2,990,760 2,992,675 
Construction/land development
Multifamily construction— — — — — 98,906 98,906 
CRE construction— — — 3,821 3,821 7,217 11,038 
Single family construction— — — — — 320,826 320,826 
Single family construction to permanent— — — — — 41,970 41,970 
Total
— — — 21,966 21,966 4,014,199 4,036,165 
Commercial and industrial loans
Owner occupied CRE— — — 1,161 1,161 360,836 361,997 
Commercial business— — — 25,740 25,740 286,264 312,004 
Total— — — 26,901 26,901 647,100 674,001 
Consumer loans
Single family
4,601 1,096 4,354 (2)2,990 13,041 1,096,054 1,109,095 
Home equity and other344 631 — 3,137 4,112 408,423 412,535 
Total4,945 1,727 4,354 6,127 17,153 1,504,477 1,521,630 (3)
Total loans$4,945 $1,727 $4,354 $54,994 $66,020 $6,165,776 $6,231,796 
%0.08 %0.03 %0.07 %0.88 %1.06 %98.94 %100.00 %
At December 31, 2023
Past Due and Still Accruing
(in thousands)30-59 days60-89 days90 days or moreNonaccrual
Total past
due and nonaccrual (1)
CurrentTotal
loans
CRE
Non-owner occupied CRE$— $— $— $16,803 $16,803 $625,082 $641,885 
Multifamily— 1,915 — — 1,915 3,938,274 3,940,189 
Construction/land development
Multifamily construction— — — — — 168,049 168,049 
CRE construction— — — 3,821 3,821 14,692 18,513 
Single family construction— — — — — 274,050 274,050 
Single family construction to permanent— — — — — 105,304 105,304 
Total
— 1,915 — 20,624 22,539 5,125,451 5,147,990 
Commercial and industrial loans
Owner occupied CRE— — — 706 706 390,579 391,285 
Commercial business— — — 13,686 13,686 345,363 359,049 
Total
— — — 14,392 14,392 735,942 750,334 
Consumer loans
Single family
5,174 1,993 4,261 (2)2,650 14,078 1,126,201 1,140,279 
Home equity and other974 225 — 1,310 2,509 381,792 384,301 
Total6,148 2,218 4,261 3,960 16,587 1,507,993 1,524,580 (3)
Total loans$6,148 $4,133 $4,261 $38,976 $53,518 $7,369,386 $7,422,904 
%0.08 %0.05 %0.06 %0.53 %0.72 %99.28 %100.00 %
(1)Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.3 million and $12.4 million at December 31, 2024 and 2023, respectively.
(2)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.
(3)Includes $1.3 million of loans at December 31, 2024 and 2023, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements.
Financing receivable, modified The following tables provide information related to MBFDs for years ended December 31, 2024 and 2023 disaggregated by class of financing receivable and type of concession granted:
Significant Payment Delay
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Multifamily$1,915 0.06 %$— — %
Commercial business1,446 0.46 %839 0.23 %
Single family85 0.01 %1,082 0.09 %

Term Extension
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Commercial business$1,536 0.49 %$9,850 2.74 %
Single family— — %273 0.02 %

Interest Rate Reduction and Significant Payment Delay
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Commercial business$4,420 1.42 %$— — %


Significant Payment Delay and Term Extension
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Non-owner occupied CRE$19,331 3.39 %$16,230 2.53 %
Construction/land development— — %3,821 0.68 %
Owner occupied CRE254 0.07 %— — %
Commercial business410 0.13 %— — %
Single family3,668 0.33 %2,526 0.22 %
Interest Rate Reduction, Significant Payment Delay and Term Extension
Years Ended December 31,
20242023
(in thousands, except percentages)Amortized Cost Basis at Period End% of Total Class of Financing ReceivableAmortized Cost Basis at Period End% of Total Class of Financing Receivable
Construction/land development$3,821 0.81 %$— — %
Single family— — %191 0.02 %
Financing receivable, loan modifications, financial effect
The following tables describes the financial effect of the MBFDs:
Interest Rate Reduction
Years Ended December 31,
20242023
Construction/land development
Reduced weighted-average contractual interest rate from 7.75% to 5.00%.
Commercial business
Reduced weighted-average contractual interest rate from 7.75% to 5.00%.
Single family
Reduced weighted-average contractual interest rate from 5.25% to 5.00%.
Significant Payment Delay
Years Ended December 31,
20242023
Non-owner occupied CRE
The weighted average duration of loan payments deferred is 0.8 years.
The weighted average duration of loan payments deferred is 3.7 years.
Multifamily
The weighted average duration of loan payments deferred is 1.5 years.
Construction/land development
The weighted average duration of loan payments deferred is 0.6 years.
The weighted average duration of loan payments deferred is 2.7 years.
Owner occupied CRE
The weighted average duration of loan payments deferred is 3.0 years.
Commercial business
The weighted average duration of loan payments deferred is 0.6 years.
The weighted average duration of loan payments deferred is 5.2 years.
Single family
Provided payment deferrals to borrowers. A weighted average 0.41% of loan balances were capitalized and added to the remaining term of the loan.
Provided payment deferrals to borrowers. A weighted average 0.37% of loan balances were capitalized and added to the remaining term of the loan.
Term Extension
Years Ended December 31,
20242023
Non-owner occupied CRE
Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Construction/land development
Added a weighted average 0.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Owner occupied CRE
Added a weighted average 3.0 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Commercial business
Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 1.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Single family
Added a weighted average 3.9 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Added a weighted average 4.9 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Financing receivable, loan modifications, subsequent default, by payment status
The following table depicts the payment status of loans that were modified to borrowers experiencing financial difficulties on or after October 1, 2023 through September 30, 2024:
Payment Status (Amortized Cost Basis) at December 31, 2024
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Multifamily$— $— $1,915 
Commercial business1,157 — 1,150 
Single family1,690 — 875 
Total$2,847 $— $3,940 

The following table depicts the payment status of loans that were modified to borrowers experiencing financial difficulties on or after October 1, 2022 through September 30, 2023:
Payment Status (Amortized Cost Basis) at December 31, 2023
(in thousands)Current30-89 Days Past Due90+ Days Past Due
Non-owner occupied CRE$16,230 $— $— 
Construction/land development3,821 — — 
Commercial business8,873 976 — 
Single family2,627 1,285 324 
Total$31,551 $2,261 $324 

The following tables provide the amortized cost basis as of December 31, 2024 of MBFDs, on or after October 1, 2023 through September 30, 2024 and that subsequently had a payment default:
Amortized Cost Basis of Modified Loans That Subsequently Defaulted Year Ended December 31, 2024
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Commercial business$— $1,150 $— $— $— 
Single family238 — — 637 — 
Total$238 $1,150 $— $637 $— 

The following tables provide the amortized cost basis as of December 31, 2023 of MBFDs, on or after October 1, 2022 through September 30, 2023 and subsequently had a payment default:

Amortized Cost Basis of Modified Loans That Subsequently Defaulted Year Ended December 31, 2023
(in thousands)Significant Payment DelayTerm ExtensionInterest Rate Reduction and Term ExtensionSignificant Payment Delay and Term ExtensionInterest Rate Reduction, Significant Payment Delay and Term Extension
Commercial business$— $976 $— $— $— 
Single family— — — 1,354 — 
Total$— $976 $— $1,354 $— 
v3.25.0.1
PREMISES AND EQUIPMENT, NET (Tables)
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of premises and equipment
Premises and equipment consisted of the following:
 
 At December 31,
(in thousands)20242023
Furniture and equipment$56,121 $56,777 
Leasehold improvements37,265 38,870 
Land and buildings42,374 42,153 
Total135,760 137,800 
Less: accumulated depreciation(88,559)(84,218)
Net$47,201 $53,582 
v3.25.0.1
DEPOSITS (Tables)
12 Months Ended
Dec. 31, 2024
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]  
Deposit balances, including stated rates
Deposit balances, including their weighted average rates, were as follows: 
At December 31,
20242023
(dollars in thousands)AmountWeighted Average RateAmountWeighted Average Rate
Noninterest-bearing demand deposits$1,195,781 — %$1,306,503 — %
Interest bearing:
Interest-bearing demand deposits323,112 0.35 %344,748 0.25 %
Savings229,659 0.06 %261,508 0.06 %
Money market1,396,697 1.72 %1,622,665 1.79 %
Certificates of deposit
Brokered deposits751,406 4.61 %1,218,008 5.36 %
Other2,516,366 4.37 %2,009,946 3.95 %
Total interest bearing deposits5,217,240 3.31 %5,456,875 3.19 %
Total deposits$6,413,021 2.65 %$6,763,378 2.58 %
Certificates of deposit outstanding
Certificates of deposit outstanding mature as follows:
 
(in thousands)December 31, 2024
Within one year$3,157,293 
One to two years105,759 
Two to three years2,067 
Three to four years1,136 
Four to five years1,517 
Total$3,267,772 
v3.25.0.1
BORROWINGS (Tables)
12 Months Ended
Dec. 31, 2024
Federal Home Loan Banks [Abstract]  
Schedule of FHLB advances
The balances, maturity and rate of the outstanding borrowings from the FHLB and the FRB BTFP were as follows:

At December 31,
20242023
(dollars in thousands)AmountWeighted Average RateAmountWeighted Average Rate
Within one year$450,000 4.56 %$745,000 4.75 %
One to three years550,000 4.35 %450,000 4.56 %
Three through five years— — %550,000 4.35 %
Total$1,000,000 4.44 %$1,745,000 4.58 %
v3.25.0.1
LONG-TERM DEBT (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The TRUPS outstanding as of December 31, 2024 and 2023 are as follows:
 
HomeStreet Statutory Trust
(dollars in thousands)IIIIIIIV
Date issuedJune 2005September 2005February 2006March 2007
Amount$5,155$20,619$20,619$15,464
Interest rate (1)
3 MO SOFR + 1.96%
3 MO SOFR + 1.76%
3 MO SOFR + 1.63%
3 MO SOFR + 1.94%
Maturity dateJune 2035December 2035March 2036June 2037
Call option (2)
QuarterlyQuarterlyQuarterlyQuarterly
(1) These rates reflect the floating rates as of December 31, 2024.
(2) Call options are exercisable at par and are callable, without penalty, on a quarterly basis.
v3.25.0.1
DERIVATIVES AND HEDGING ACTIVITIES (Tables)
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional amount and fair value for derivatives The notional amounts and fair values for derivatives, all of which are economic hedges, are included in other assets or accounts payable and other liabilities on the consolidated balance sheets, consist of the following:
At December 31, 2024
Notional amountFair value derivatives
(in thousands) AssetLiability
Forward sale commitments$87,912 $237 $(402)
Interest rate lock commitments16,757 175 (49)
Interest rate swaps222,917 10,250 (10,250)
Futures5,200 — 
Options5,800 — 
Total derivatives before netting$338,586 10,666 (10,701)
Netting adjustment/Cash collateral (1)
(10,388)219 
Carrying value on consolidated balance sheet$278 $(10,482)

At December 31, 2023
Notional amountFair value derivatives
(in thousands) AssetLiability
Forward sale commitments$87,509 $151 $(288)
Interest rate lock commitments21,790 411 — 
Interest rate swaps235,521 10,489 (10,492)
Futures12,200 — (3)
Options9,300 132 — 
Total derivatives before netting$366,320 11,183 (10,783)
Netting adjustment/Cash collateral (1)
(10,119)195 
Carrying value on consolidated balance sheet $1,064 $(10,588)
(1)    Includes net cash collateral received of $10.2 million and $9.9 million at December 31, 2024 and 2023, respectively.
Schedule of derivative instruments
The following tables present gross fair value and net carrying value information for derivative instruments:
(in thousands)Gross fair value
Netting adjustments/Cash collateral (1)
Carrying value
At December 31, 2024
Derivative assets$10,666 $(10,388)$278 
Derivative liabilities(10,701)219 (10,482)
At December 31, 2023
Derivative assets $11,183 $(10,119)$1,064 
Derivative liabilities (10,783)195 (10,588)
(1)    Includes net cash collateral received of $10.2 million and $9.9 million at December 31, 2024 and 2023, respectively.
Net gains (losses) recognized on economic hedge derivatives
The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:
 
 Years Ended December 31,
(in thousands)20242023
Recognized in noninterest income:
Net gain (loss) on loan origination and sale activities (1)
$224 $804 
Loan servicing income (loss) (2)
(1,230)(1,255)
        Other (3)
(3)
(1)Comprised of forward contracts used as an economic hedge of loans held for sale and interest rate lock commitments ("IRLCs") to customers.
(2)Comprised of futures, US Treasury options and forward contracts used as economic hedges of single family MSRs.
(3)Impact of interest rate swap agreements executed with commercial banking customers and broker dealer counterparties.
v3.25.0.1
MORTGAGE BANKING OPERATIONS (Tables)
12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Schedule of loans held for sale and sold
LHFS consisted of the following: 
At December 31,
(in thousands)20242023
Single family $20,312 $12,849 
CRE, multifamily and SBA— 6,788 
Total $20,312 $19,637 
Loans sold consisted of the following for the periods indicated: 
 Years Ended December 31,
(in thousands)20242023
Single family$404,952 $335,751 
CRE, multifamily and SBA(1)
1,103,742 26,839 
Total$1,508,694 $362,590 
(1) 2024 amounts include the sale of $990 million of multifamily loans in the fourth quarter.
Net gain on mortgage loan origination and sale activity
Gain (loss) on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 
 Years Ended December 31,
(in thousands)20242023
Single family $9,573 $8,500 
CRE, multifamily and SBA(1)
(86,463)846 
Total $(76,890)$9,346 
(1) 2024 amounts include loss of $88.8 million on the sale of $990 million of multifamily loans in the fourth quarter.
Company's portfolio of loans serviced for others The unpaid principal balance of loans serviced for others is as follows:
At December 31,
(in thousands)20242023
Single family
$5,179,373 $5,316,304 
CRE, multifamily and SBA1,918,172 1,900,039 
Total$7,097,545 $7,216,343 
Schedule of mortgage repurchase losses The following is a summary of changes in the Company's mortgage repurchase liability for single family loans sold on a servicing-retained basis included in accounts payable and other liabilities on the consolidated balance sheet for the periods indicated:
 Years Ended December 31,
(in thousands)20242023
Balance, beginning of period$1,481 $2,232 
Additions, net of adjustments (1)
(284)(330)
Realized losses (2)
(165)(421)
Balance, end of period$1,032 $1,481 
(1)Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.
(2)Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses.
Revenue from mortgage servicing, including the effects of derivative risk management instruments
Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:
 
 Years Ended December 31,
(in thousands)20242023
Servicing income, net:
Servicing fees and other$25,798 $26,134 
Amortization of single family MSRs (1)
(6,500)(6,378)
Amortization of multifamily and SBA MSRs(5,612)(5,778)
Total13,686 13,978 
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)
1,743 414 
Net gain (loss) from economic hedging (3)
(2,932)(1,744)
Total(1,189)(1,330)
Loan servicing income $12,497 $12,648 
(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 reflected by changes in mortgage interest rates.
(3)The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $1.2 million and $1.4 million in 2024 and 2023, respectively.
Changes in single family MSRs measured at fair value The changes in single family MSRs measured at fair value are as follows:
 
 Years Ended December 31,
(in thousands)20242023
Beginning balance$74,249 $76,617 
Additions and amortization:
Originations
3,409 3,136 
Purchases
— 460 
Amortization (1)
(6,500)(6,378)
Net additions and amortization
(3,091)(2,782)
Changes in fair value assumptions (2)
1,743 414 
Ending balance$72,901 $74,249 
(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.
Key economic assumptions used in measuring initial FV of capitalized single family MSRs
Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows:
 
Years Ended December 31,
(rates per annum) (1)
20242023
Constant prepayment rate ("CPR") (2)
18.07 %14.89 %
Discount rate10.23 %11.99 %
(1)Based on a weighted average.
(2)Represents the expected lifetime average CPR used in the model.
Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:
 
Years Ended December 31,
(rates per annum) (1)
20242023
Discount rate13.10 %13.00 %
(1)Based on a weighted average.
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets
For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:

At December 31, 2024At December 31, 2023
Range of Inputs
Average (1)
Range of Inputs
Average (1)
CPRs
6.00% - 13.50%
6.60 %
6.80%- 32.50%
7.00 %
Discount Rates
10.00% - 17.00%
11.00 %
10.00% -17.00%
10.00 %
(1) Weighted averages of all the inputs within the range.

To compute hypothetical sensitivities of the value of our single MSRs to immediate adverse changes in key assumptions, we computed the impact of changes in CPRs and in discount rates as outlined below:

(dollars in thousands)At December 31, 2024
Fair value of single family MSRs$72,901 
Expected weighted-average life (in years)8.37
CPR
Impact on fair value of 25 basis points adverse change in interest rates$(759)
Impact on fair value of 50 basis points adverse change in interest rates$(1,594)
Discount rate
Impact on fair value of 100 basis points increase$(2,133)
Impact on fair value of 200 basis points increase$(4,669)
 
For multifamily MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:

At December 31, 2024At December 31, 2023
Range of Inputs
Average (1)
Range of Inputs
Average (1)
Discount Rates
13.00% - 15.00%
13.10 %
13.00% - 15.00%
13.00 %
(1) Weighted averages of all the inputs within the range.
Changes in multifamily MSRs measured at the lower of amortized cost or fair value
The changes in multifamily and SBA MSRs measured at LOCOM or fair value were as follows:
 
Years Ended December 31,
(in thousands)20242023
Beginning balance$29,987 $35,256 
Origination
2,190 509 
Amortization
(5,612)(5,778)
Ending balance$26,565 $29,987 
Projected amortization expense for the gross carrying value of multifamily MSRs Projected amortization expense for the gross carrying value of multifamily and SBA MSRs is estimated as follows:
 
(in thousands)At December 31, 2024
2025$5,278 
20264,807 
20274,101 
20283,645 
20293,286 
2030 and thereafter
5,448 
Carrying value of multifamily and SBA MSRs$26,565 
v3.25.0.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of commitments
These commitments include the following:
At December 31,
(in thousands)20242023
Unused consumer portfolio lines$609,930 $586,904 
Commercial portfolio lines (1)
523,415 648,609 
Commitments to fund loans56,417 38,426 
Total $1,189,762 $1,273,939 
(1) Within the commercial portfolio, undistributed construction loan proceeds, where the Company has an obligation to advance funds for construction progress payments of $306 million and $403 million at December 31, 2024 and 2023, respectively.
v3.25.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of income tax expense (benefit)
Income tax (benefit) expense consisted of the following: 
 Years Ended December 31,
(in thousands)20242023
Current expense (benefit)
Federal$6,731 $2,900 
State and local(841)980 
Deferred expense (benefit)
Federal(30,836)(7,407)
State and local(4,532)(1,722)
Total(29,478)(5,249)
Deferred tax assets valuation allowance
53,310 — 
Income tax expense (benefit)
$23,832 $(5,249)
Schedule of effective income tax rate reconciliation
Income tax expense (benefit) differed from amounts computed at the federal income tax statutory rate as follows: 
 Years Ended December 31,
20242023
(in thousands, except rate)RateAmountRateAmount
Income (loss) before income taxes$(120,512)$(32,757)
Federal tax statutory rate21.00 %(25,308)21.00 %(6,879)
State tax - net of federal tax benefit3.63 %(4,380)4.12 %(1,351)
Tax-exempt investments0.65 %(788)3.86 %(1,266)
Low income housing tax benefits
0.91 %(1,093)3.20 %(1,047)
Stock-based compensation expense(0.55)%672 (1.28)%421 
Goodwill— %— (14.13)%4,627 
Other(1.18)%1,419 (0.75)%246 
Total24.46 %(29,478)16.02 %(5,249)
Change in valuation allowance
53,310 — 
Total
$23,832 $(5,249)
Schedule of deferred tax assets and liabilities
The following is a summary of the Company's deferred tax assets and liabilities: 
At December 31,
(in thousands)20242023
Deferred tax assets
Provision for credit losses$10,220 $10,977 
Unrealized loss on investments AFS28,343 28,571 
LIHTC tax credits carryforwards
5,667 — 
Net operating loss carryforwards
26,736 370 
Accrued liabilities2,241 1,917 
Other investments786 463 
Lease liabilities8,071 9,019 
Nonaccrual interest1,695 1,112 
Intangibles4,796 4,725 
Stock based compensation849 782 
Loan valuation240 274 
Premises and equipment
681 — 
Other457 401 
   Total90,782 58,611 
Deferred tax liabilities
Mortgage servicing rights(22,805)(24,204)
Deferred loan fees and costs(8,465)(8,967)
Lease right-of-use assets(6,202)(6,906)
Premises and equipment— (364)
   Total(37,472)(40,441)
Net deferred tax asset (liability)53,310 18,170 
Valuation allowance(53,310)— 
Total
$— $18,170 
v3.25.0.1
FAIR VALUE MEASUREMENT (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair value measurement methodologies
The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company's assets and liabilities valued at fair value on a recurring basis.
Asset/Liability classValuation methodology, inputs and assumptionsClassification
Investment securities
Trading securitiesFair Value is based on quoted prices in an active market.Level 1 recurring fair value measurement.
Investment securities AFSObservable market prices of identical or similar securities are used where available.
 
Level 2 recurring fair value measurement.
If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: 
•      Expected prepayment speeds 
•      Estimated credit losses 
•      Market liquidity adjustments
Level 3 recurring fair value measurement.
LHFS
Single family loans, excluding loans transferred from held for investmentFair value is based on observable market data, including:
•       Quoted market prices, where available 
•       Dealer quotes for similar loans 
•       Forward sale commitments
Level 2 recurring fair value measurement.
When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs:
•       Benchmark yield curve  
•       Estimated discount spread to the benchmark yield curve
•       Expected prepayment speeds
Estimated fair value classified as Level 3.
Mortgage servicing rights
Single family MSRs
For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 9, Mortgage Banking Operations.
Level 3 recurring fair value measurement.
Derivatives
Futures and OptionsFair value is based on closing exchange prices.Level 1 recurring fair value measurement.
Forward sale commitments
Interest rate swaps
Fair value is based on quoted prices for identical or similar instruments when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs, including:  
•       Forward interest rates 
•       Interest rate volatilities
Level 2 recurring fair value measurement.
IRLC
The fair value considers several factors including:
•       Fair value of the underlying loan based on quoted prices in the secondary market, when available. 
•       Value of servicing
•       Fall-out factor
Level 3 recurring fair value measurement.
Schedule of fair value hierarchy measurement
The following tables presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis: 
At December 31, 2024
(in thousands)Fair ValueLevel 1Level 2Level 3
Assets:
Trading securities - U.S. Treasury securities$34,746 $34,746 $— $— 
Investment securities AFS
Mortgage backed securities:
Residential167,462 — 165,764 1,698 
Commercial47,642 — 47,642 — 
Collateralized mortgage obligations:
Residential317,444 — 317,444 — 
Commercial54,945 — 54,945 — 
Municipal bonds378,259 — 378,259 — 
Corporate debt securities24,944 — 24,944 — 
U.S. Treasury securities19,987 — 19,987 — 
        Agency debentures9,276 — 9,276 — 
Single family LHFS20,312 — 20,312 — 
Single family LHFI1,287 — — 1,287 
Single family mortgage servicing rights72,901 — — 72,901 
Derivatives
Futures— — 
Forward sale commitments237 — 237 — 
Options— 
Interest rate lock commitments175 — — 175 
Interest rate swaps10,250 — 10,250 — 
Total assets$1,159,871 $34,750 $1,049,060 $76,061 
Liabilities:
Derivatives
Forward sale commitments$402 $— $402 $— 
Interest rate lock commitments49 — — 49 
Interest rate swaps10,250 — 10,250 — 
Total liabilities$10,701 $— $10,652 $49 
At December 31, 2023
(in thousands)Fair ValueLevel 1Level 2Level 3
Assets:
Trading securities - U.S. Treasury securities$24,698 $24,698 $— $— 
Investment securities AFS
Mortgage backed securities:
Residential
183,798 — 181,938 1,860 
Commercial
47,756 — 47,756 — 
Collateralized mortgage obligations:
Residential439,738 — 439,738 — 
Commercial57,397 — 57,397 — 
Municipal bonds404,874 — 404,874 — 
Corporate debt securities38,547 — 38,547 — 
U.S. Treasury securities20,184 — 20,184 — 
Agency debentures58,905 — 58,905 — 
Single family LHFS 12,849 — 12,849 — 
Single family LHFI1,280 — — 1,280 
Single family mortgage servicing rights74,249 — — 74,249 
Derivatives
Forward sale commitments151 — 151 — 
Options132 132 — — 
Interest rate lock commitments411 — — 411 
Interest rate swaps10,489 — 10,489 — 
Total assets$1,375,458 $24,830 $1,272,828 $77,800 
Liabilities:
Derivative
Futures$$$— $— 
Forward sale commitments288 — 288 — 
Interest rate swaps10,492 — 10,492 — 
Total liabilities$10,783 $$10,780 $— 
Fair value measurements recurring and nonrecurring valuation techniques
The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets:
(dollars in thousands)Fair ValueValuation
Technique
Significant Unobservable
Input
LowHighWeighted Average
December 31, 2024
Investment securities AFS$1,698 Income approachImplied spread to benchmark interest rate curve2.25%2.25%2.25%
Single family LHFI1,287 Income approachImplied spread to benchmark interest rate curve2.94%5.56%3.69%
Interest rate lock commitments, net126 Income approachFall-out factor0.83%29.13%9.28%
Value of servicing0.78%2.15%1.37%
December 31, 2023
Investment securities AFS$1,860 Income approachImplied spread to benchmark interest rate curve2.25%2.25%2.25%
Single family LHFI1,280 Income approachImplied spread to benchmark interest rate curve3.30%5.04%3.94%
Interest rate lock commitments, net 411 Income approachFall-out factor0.81%41.64%10.54%
Value of servicing0.32%0.80%0.57%
Schedule of fair value changes and activity for level 3
The following table presents fair value changes and activity for certain Level 3 assets:
(in thousands)Beginning balanceAdditionsTransfersPayoffs/Sales
Change in mark to market (1)
Ending balance
Year Ended December 31, 2024
Investment securities AFS $1,860 $— $— $(200)$38 $1,698 
Single family LHFI1,280 — — — 1,287 
Year Ended December 31, 2023
Investment securities AFS $2,009 $— $— $(192)$43 $1,860 
Single family LHFI5,868 — — (4,607)19 1,280 
(1) Changes in fair value for singe family LHFI are recorded in other noninterest income on the consolidated income statements.
The following table presents fair value changes and activity for Level 3 interest rate lock commitments:
Years Ended December 31,
(in thousands)20242023
Beginning balance, net$411 $105 
Total realized/unrealized gains3,770 2,334 
Settlements(4,055)(2,028)
Ending balance, net$126 $411 
Fair value measurements on nonrecurring basis
The following tables presents assets classified as Level 3 assets that had changes in their recorded fair value during 2024 and 2023 and what we still held at the end of the respective reporting period:

(in thousands)Fair ValueTotal Gains (Losses)
As of or for the year ended December 31, 2024
LHFI (1)
$3,269 $(3,114)
As of or for the year ended December 31, 2023
LHFI (1)
$4,349 $(1,410)
(1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral.
Fair value, by balance sheet grouping
The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company's financial instruments other than assets and liabilities measured at fair value on a recurring basis:
 
 At December 31, 2024
(in thousands)Carrying
Value
Fair
Value
Level 1Level 2Level 3
Assets:
Cash and cash equivalents$406,600 $406,600 $406,600 $— $— 
Investment securities HTM2,301 2,273 — 2,273 — 
LHFI6,191,766 5,864,426 — — 5,864,426 
Mortgage servicing rights – multifamily and SBA26,565 32,361 — — 32,361 
Federal Home Loan Bank stock50,676 50,676 — 50,676 — 
Other assets - GNMA EBO loans5,111 5,111 — — 5,111 
Liabilities:
Certificates of deposit$3,267,772 $3,262,350 $— $3,262,350 $— 
Borrowings1,000,000 1,001,873 — 1,001,873 — 
Long-term debt225,131 184,124 — 184,124 — 

 At December 31, 2023
(in thousands)Carrying
Value
Fair
Value
Level 1Level 2Level 3
Assets:
Cash and cash equivalents$215,664 $215,664 $215,664 $— $— 
Investment securities HTM2,371 2,331 — 2,331 — 
LHFI7,381,124 7,002,028 — — 7,002,028 
LHFS multifamily and other6,788 6,871 — 6,871 — 
Mortgage servicing rights – multifamily and SBA29,987 35,292 — — 35,292 
Federal Home Loan Bank stock55,293 55,293 — 55,293 — 
Other assets - GNMA EBO loans5,617 5,617 — — 5,617 
Liabilities:
Certificates of deposit$3,227,954 $3,216,665 $— $3,216,665 $— 
Borrowings1,745,000 1,750,023 — 1,750,023 — 
Long-term debt224,766 132,996 — 132,996 — 
Fair value option
The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option:

At December 31, 2024At December 31, 2023
(in thousands)Fair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal BalanceFair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal Balance
Single family LHFS$20,312 $20,137 $175 $12,849 $12,583 $266 
v3.25.0.1
REGULATORY CAPITAL REQUIREMENTS (Tables)
12 Months Ended
Dec. 31, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Schedule of compliance with regulatory capital requirements under banking regulations The following table presents the capital and capital ratios of the Company (on a consolidated basis) and the Bank (on a stand-alone basis) as of the respective dates and as compared to the respective regulatory requirements applicable to them:
At December 31, 2024
ActualFor Minimum Capital
Adequacy Purposes
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
(dollars in thousands)AmountRatioAmountRatioAmountRatio
HomeStreet, Inc.
Tier 1 leverage capital (to average assets) (1)
$537,057 5.77 %$372,319 4.0 %NANA
Common equity tier 1 capital (to risk-weighted assets)477,057 8.62 %249,109 4.5 %NANA
Tier 1 risk-based capital (to risk-weighted assets)537,057 9.70 %332,145 6.0 %NANA
Total risk-based capital (to risk-weighted assets)677,225 12.23 %442,860 8.0 %NANA
HomeStreet Bank
Tier 1 leverage capital (to average assets)
$678,869 7.30 %$372,132 4.0 %$465,165 5.0 %
Common equity tier 1 capital (to risk-weighted assets)678,869 12.27 %249,000 4.5 %359,667 6.5 %
Tier 1 risk-based capital (to risk-weighted assets)678,869 12.27 %332,001 6.0 %442,667 8.0 %
Total risk-based capital (to risk-weighted assets)720,498 13.02 %442,667 8.0 %553,334 10.0 %
At December 31, 2023
ActualFor Minimum Capital
Adequacy Purposes
To Be Categorized As
“Well Capitalized” Under
Prompt Corrective
Action Provisions
(dollars in thousands)AmountRatioAmountRatioAmountRatio
HomeStreet, Inc.
Tier 1 leverage capital (to average assets)$675,440 7.04 %$383,696 4.0 %NANA
Common equity tier 1 capital (to risk-weighted assets)615,440 9.66 %286,709 4.5 %NANA
Tier 1 risk-based capital (to risk-weighted assets)675,440 10.60 %382,279 6.0 %NANA
Total risk-based capital (to risk-weighted assets)818,075 12.84 %509,705 8.0 %NANA
HomeStreet Bank
Tier 1 leverage capital (to average assets)$814,719 8.50 %$383,482 4.0 %$479,352 5.0 %
Common equity tier 1 capital (to risk-weighted assets)814,719 12.79 %286,569 4.5 %413,933 6.5 %
Tier 1 risk-based capital (to risk-weighted assets)814,719 12.79 %382,092 6.0 %509,456 8.0 %
Total risk-based capital (to risk-weighted assets)858,992 13.49 %509,456 8.0 %636,820 10.0 %
The following table sets forth the minimum capital ratios plus the applicable increment of the capital conservation buffer:
Common equity to Tier-1 to risk-weighted assets 7.00 %
Tier 1 capital to risk-weighted assets 8.50 %
Total capital to risk-weighted assets 10.50 %
v3.25.0.1
EARNINGS PER SHARE (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of earnings per share, basic and diluted
The following table summarizes the calculation of earnings per share: 
 Years Ended December 31,
(in thousands, except share and per share data)20242023
Net income (loss)$(144,344)$(27,508)
Weighted average shares:
Basic weighted-average number of common shares outstanding
18,857,392 18,783,005 
Dilutive effect of outstanding common stock equivalents (1)
— — 
Diluted weighted-average number of common shares outstanding18,857,392 18,783,005 
Net income (loss) per share
Basic earnings per share$(7.65)$(1.46)
Diluted earnings per share$(7.65)$(1.46)
(1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2024 and 2023 were certain unvested RSUs and PSUs. The aggregate number of common stock unvested restricted shares, which could potentially be dilutive in future periods, was 540,354 and 217,153 at December 31, 2024 and 2023, respectively.
v3.25.0.1
LEASES (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of lease cost
The components of lease expense were as follows:
 Years Ended December 31,
(in thousands)20242023
Operating lease cost$7,321 $8,103 
Finance lease cost:
Amortization of right-of-use assets
181 425 
Interest on lease liabilities
Variable lease costs and nonlease components1,633 1,470 
Sublease income(649)(1,376)
Total$8,492 $8,630 
Schedule of lease supplemental cash flow information Supplemental cash flow information related to leases were as follows:
 Years Ended December 31,
(in thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$10,421 $11,248 
Operating cash flows from finance leases
Financing cash flows from finance leases
168 456 
Right-of-use assets obtained
Operating leases$5,622 $2,690 
Finance leases— 385 
Schedule of lease assets and liabilities
Supplemental information related to leases was as follows:
At December 31,
(in thousands, except lease term and discount rate)20242023
Operating lease right-of-use assets, included in other assets$25,235$27,594
Operating lease liabilities, included in accounts payable and other liabilities30,99335,043
Finance lease right-of-use assets, included in other assets$48$318
Finance lease liabilities, included in accounts payable and other liabilities 37288
Weighted Average Remaining lease term in years
Operating leases4.314.49
Finance leases0.581.58
Weighted Average Discount Rate
Operating leases1.82%1.88%
Finance leases3.50%3.50%
Schedule of finance lease liability maturities
Maturities of lease liabilities and obligations under leases classified as nonlease components were as follows:
Lease Liabilities
(in thousands)Operating LeasesFinance LeasesNonlease Components
Year ended December 31,
2025$10,079 $37 $3,723 
20268,721 — 3,785 
20277,683 — 3,841 
20282,750 — 125 
20291,678 — — 
2030 and thereafter2,874 — — 
Total lease payments
33,785 37 $11,474 
Less imputed interest2,792 — 
Total$30,993 $37 
Schedule of operating lease liability maturities
Maturities of lease liabilities and obligations under leases classified as nonlease components were as follows:
Lease Liabilities
(in thousands)Operating LeasesFinance LeasesNonlease Components
Year ended December 31,
2025$10,079 $37 $3,723 
20268,721 — 3,785 
20277,683 — 3,841 
20282,750 — 125 
20291,678 — — 
2030 and thereafter2,874 — — 
Total lease payments
33,785 37 $11,474 
Less imputed interest2,792 — 
Total$30,993 $37 
v3.25.0.1
SHARE-BASED COMPENSATION PLANS (Tables)
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of restricted shares activity A summary of the status of the combined RSUs and PSUs is as follows:
NumberWeighted Average
Grant Date Fair Value
Outstanding at December 31, 2023
230,986$34.08 
Granted417,65910.79 
Cancelled or forfeited(86,505)24.37 
Vested(44,651)34.93 
Outstanding at December 31, 2024
517,489 $16.83 
Schedule of performance share units valuation assumptions
The assumptions used in the Monte Carlo simulations used to determine fair market value of the PSUs granted in 2024 and 2023 are set forth in the table below:
20242023
Volatility of common stock58.1 %42.7 %
Average volatility of peer companies33.6 %45.0 %
Average correlation coefficient of peer companies0.7527 %0.8029 %
Risk-free interest rate4.0 %4.2 %
Expected term in years3 years3 years
v3.25.0.1
PARENT COMPANY FINANCIAL STATEMENTS (UNAUDITED) (Tables)
12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed balance sheets, parent company
Condensed financial information for HomeStreet, Inc. is as follows:
 
Condensed Balance SheetsAt December 31,
(in thousands)20242023
Assets:
Cash and cash equivalents$22,855 $21,541 
Other assets5,433 4,515 
Investment in stock of HomeStreet Bank598,875 737,748 
Investment in stock of other subsidiaries1,857 1,857 
Total assets$629,020 $765,661 
Liabilities:
Other liabilities$6,892 $2,508 
Long-term debt225,131 224,766 
Total liabilities232,023 227,274 
Shareholders' Equity:
Common stock, no par value233,185 229,889 
Retained earnings251,013 395,357 
Accumulated other comprehensive income (loss)(87,201)(86,859)
Total shareholder's equity396,997 538,387 
Total liabilities and shareholders' equity$629,020 $765,661 
Condensed statements of income, parent company
Condensed Income StatementsYears Ended December 31,
(in thousands)20242023
Noninterest income
Dividend income $10,400 $39,000 
Equity in undistributed income from subsidiaries(141,939)(55,832)
Other noninterest income2,470 2,085 
Total revenues(129,069)(14,747)
Expenses
Interest expense-net8,097 8,094 
Noninterest expense11,268 8,176 
Total expenses19,365 16,270 
Income (loss) before income taxes (benefit)
(148,434)(31,017)
Income taxes (benefit)(4,090)(3,509)
Net income (loss)$(144,344)$(27,508)
Condensed statements of cash flows, parent company
Condensed Statements of Cash FlowsYears Ended December 31,
(in thousands)20242023
Cash flows from operating activities
Net income (loss)$(144,344)$(27,508)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Undistributed earnings from investment in subsidiaries141,939 55,832 
Other3,513 (480)
Net cash provided by operating activities1,108 27,844 
Cash flows from investing activities:
AFS securities: Principal collections net of purchases203 210 
Investments in subsidiaries— 
Net cash provided by investing activities
206 210 
Cash flows from financing activities:
Repurchases of common stock— — 
Proceeds from issuance of long-term debt
— — 
Dividends paid on common stock— (12,317)
Net cash used in financing activities— (12,317)
Net increase in cash and cash equivalents
1,314 15,737 
Cash and cash equivalents, beginning of year21,541 5,804 
Cash and cash equivalents, end of year$22,855 $21,541 
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details)
12 Months Ended
Dec. 31, 2024
segment
Accounting Policies [Abstract]  
Number of reporting segments 1
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Restricted cash $ 6.5 $ 6.4
Restricted cash, location included on balance sheet Cash and cash equivalents Cash and cash equivalents
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investment Securities (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Recorded ACL for HTM securities $ 0 $ 0
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Premises and Equipment (Details)
Dec. 31, 2024
Minimum  
Property, Plant and Equipment [Line Items]  
Useful life of property, plant and equipment 3 years
Maximum  
Property, Plant and Equipment [Line Items]  
Useful life of property, plant and equipment 20 years
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Branch Acquisition (Details)
$ in Thousands
Feb. 10, 2023
USD ($)
branch
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Business Acquisition [Line Items]      
Goodwill   $ 0 $ 27,900
California | Three Branches Purchase      
Business Acquisition [Line Items]      
Number of branches purchased | branch 3    
Deposit liabilities assumed $ 376,000    
Acquired receivables 21,000    
Goodwill 12,000    
Core deposit intangibles acquired $ 11,000    
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Goodwill at beginning of period $ 0 $ 27,900
Additions - branch acquisition   11,957
Goodwill impairment $ 0 39,857
Goodwill at end of period   $ 0
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-Based Compensation (Details) - Performance Stock Units (PSUs)
12 Months Ended
Dec. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based compensation vesting period 3 years
Cliff Vest  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based compensation vesting period 3 years
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Marketing Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Marketing expense $ 3.0 $ 4.2
v3.25.0.1
INVESTMENT SECURITIES - Amortized Cost, Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
AFS    
Amortized cost $ 1,135,504 $ 1,366,629
Gross unrealized gains 374 834
Gross unrealized losses (115,919) (116,264)
Fair value 1,019,959 1,251,199
Residential    
AFS    
Amortized cost 174,887 194,141
Gross unrealized gains 229 117
Gross unrealized losses (7,654) (10,460)
Fair value 167,462 183,798
Commercial    
AFS    
Amortized cost 54,620 55,235
Gross unrealized gains 0 0
Gross unrealized losses (6,978) (7,479)
Fair value 47,642 47,756
Residential    
AFS    
Amortized cost 349,348 473,269
Gross unrealized gains 36 8
Gross unrealized losses (31,940) (33,539)
Fair value 317,444 439,738
Commercial    
AFS    
Amortized cost 59,725 63,456
Gross unrealized gains 14 0
Gross unrealized losses (4,794) (6,059)
Fair value 54,945 57,397
Municipal bonds    
AFS    
Amortized cost 433,162 452,057
Gross unrealized gains 95 670
Gross unrealized losses (54,998) (47,853)
Fair value 378,259 404,874
HTM    
Amortized cost 2,301 2,371
Gross unrealized gains 0 0
Gross unrealized losses (28) (40)
Fair value 2,273 2,331
Corporate debt securities    
AFS    
Amortized cost 31,136 45,611
Gross unrealized gains 0 34
Gross unrealized losses (6,192) (7,098)
Fair value 24,944 38,547
U.S. Treasury securities    
AFS    
Amortized cost 22,306 22,658
Gross unrealized gains 0 0
Gross unrealized losses (2,319) (2,474)
Fair value 19,987 20,184
Agency debentures    
AFS    
Amortized cost 10,320 60,202
Gross unrealized gains 0 5
Gross unrealized losses (1,044) (1,302)
Fair value $ 9,276 $ 58,905
v3.25.0.1
INVESTMENT SECURITIES - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Schedule of Available-for-sale Securities [Line Items]    
Tax exempt interest income on available-for-sale securities $ 11.1 $ 11.3
Realized loss on trading securities $ (1.7) $ (0.5)
Mortgage Backed Securities and Collateralized Mortgage Obligations    
Schedule of Available-for-sale Securities [Line Items]    
Weighted average yield 3.01% 3.21%
U.S. Treasury securities | Not Designated as Hedging Instrument, Economic Hedge    
Schedule of Available-for-sale Securities [Line Items]    
Trading securities - U.S. Treasury securities $ 35.0 $ 25.0
v3.25.0.1
INVESTMENT SECURITIES - Continuous Unrealized Loss on Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Available-for-sale Securities    
Less than 12 months, gross unrealized losses $ (890) $ (579)
Less than 12 months, fair value 36,374 135,407
12 months or more, gross unrealized losses (115,029) (115,685)
12 months or more, fair value 945,595 1,055,874
Total gross unrealized losses (115,919) (116,264)
Total fair value 981,969 1,191,281
Residential    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses (2) (3)
Less than 12 months, fair value 532 1,145
12 months or more, gross unrealized losses (7,652) (10,457)
12 months or more, fair value 158,044 177,393
Total gross unrealized losses (7,654) (10,460)
Total fair value 158,576 178,538
Commercial    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, fair value 0 61
12 months or more, gross unrealized losses (6,978) (7,479)
12 months or more, fair value 47,642 47,695
Total gross unrealized losses (6,978) (7,479)
Total fair value 47,642 47,756
Residential    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses (78) (368)
Less than 12 months, fair value 7,481 83,815
12 months or more, gross unrealized losses (31,862) (33,171)
12 months or more, fair value 293,297 348,914
Total gross unrealized losses (31,940) (33,539)
Total fair value 300,778 432,729
Commercial    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, fair value 0 0
12 months or more, gross unrealized losses (4,794) (6,059)
12 months or more, fair value 51,834 57,397
Total gross unrealized losses (4,794) (6,059)
Total fair value 51,834 57,397
Municipal bonds    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses (810) (73)
Less than 12 months, fair value 28,361 7,489
12 months or more, gross unrealized losses (54,188) (47,780)
12 months or more, fair value 340,571 364,775
Total gross unrealized losses (54,998) (47,853)
Total fair value 368,932 372,264
Held-to-Maturity Securities    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, fair value 0 0
12 months or more, gross unrealized losses (28) (40)
12 months or more, fair value 2,273 2,331
HTM securities in unrealized loss position, gross unrealized losses (28) (40)
HTM securities in unrealized loss position, gross unrealized losses, fair value 2,273 2,331
Corporate debt securities    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, fair value 0 0
12 months or more, gross unrealized losses (6,192) (7,098)
12 months or more, fair value 24,944 28,513
Total gross unrealized losses (6,192) (7,098)
Total fair value 24,944 28,513
U.S. Treasury securities    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, fair value 0 0
12 months or more, gross unrealized losses (2,319) (2,474)
12 months or more, fair value 19,987 20,184
Total gross unrealized losses (2,319) (2,474)
Total fair value 19,987 20,184
Agency debentures    
Available-for-sale Securities    
Less than 12 months, gross unrealized losses 0 (135)
Less than 12 months, fair value 0 42,897
12 months or more, gross unrealized losses (1,044) (1,167)
12 months or more, fair value 9,276 11,003
Total gross unrealized losses (1,044) (1,302)
Total fair value $ 9,276 $ 53,900
v3.25.0.1
INVESTMENT SECURITIES - Weighted Average Yield (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
AVAILABLE FOR SALE    
Fair value $ 1,019,959 $ 1,251,199
Municipal bonds    
AVAILABLE FOR SALE    
Due within one year or less, fair value $ 0 $ 0
Due in one year or less, weighted average yield 0.00% 0.00%
Due after one year through five years, fair value $ 15,531 $ 5,856
Due after one year through five years, weighted average yield 3.88% 1.84%
Due after five years through ten years, fair value $ 70,678 $ 60,775
Due after five years through ten years, weighted average yield 2.92% 3.36%
Due after ten years, fair value $ 292,050 $ 338,243
Due after ten years, weighted average yield 2.93% 3.01%
Fair value $ 378,259 $ 404,874
Weighted average yield 2.97% 3.04%
Held-to-maturity Securities    
Due within one year or less, fair value $ 2,273 $ 0
Due in one year or less, weighted average yield 2.29% 0.00%
Due after one year through five years, fair value $ 0 $ 2,331
Due after one year through five years, weighted average yield 0.00% 2.29%
Due after five years through ten years, fair value $ 0 $ 0
Due after five years through ten years, weighted average yield 0.00% 0.00%
Due after ten years, fair value $ 0 $ 0
Due after ten years, weighted average yield 0.00% 0.00%
Fair value $ 2,273 $ 2,331
Weighted average yield 2.29% 2.29%
Corporate debt securities    
AVAILABLE FOR SALE    
Due within one year or less, fair value $ 0 $ 4,425
Due in one year or less, weighted average yield 0.00% 3.53%
Due after one year through five years, fair value $ 2,735 $ 12,714
Due after one year through five years, weighted average yield 2.08% 4.95%
Due after five years through ten years, fair value $ 22,209 $ 21,408
Due after five years through ten years, weighted average yield 4.27% 3.89%
Due after ten years, fair value $ 0 $ 0
Due after ten years, weighted average yield 0.00% 0.00%
Fair value $ 24,944 $ 38,547
Weighted average yield 4.03% 4.21%
U.S. Treasury securities    
AVAILABLE FOR SALE    
Due within one year or less, fair value $ 0 $ 0
Due in one year or less, weighted average yield 0.00% 0.00%
Due after one year through five years, fair value $ 19,987 $ 20,184
Due after one year through five years, weighted average yield 1.15% 1.14%
Due after five years through ten years, fair value $ 0 $ 0
Due after five years through ten years, weighted average yield 0.00% 0.00%
Due after ten years, fair value $ 0 $ 0
Due after ten years, weighted average yield 0.00% 0.00%
Fair value $ 19,987 $ 20,184
Weighted average yield 1.15% 1.14%
Agency debentures    
AVAILABLE FOR SALE    
Due within one year or less, fair value $ 0 $ 16,977
Due in one year or less, weighted average yield 0.00% 4.93%
Due after one year through five years, fair value $ 1,770 $ 30,925
Due after one year through five years, weighted average yield 2.13% 5.20%
Due after five years through ten years, fair value $ 4,442 $ 7,758
Due after five years through ten years, weighted average yield 2.17% 2.15%
Due after ten years, fair value $ 3,064 $ 3,245
Due after ten years, weighted average yield 2.14% 2.17%
Fair value $ 9,276 $ 58,905
Weighted average yield 2.15% 4.51%
Municipal Bonds, Corporate Debt Securities, US Treasury Securities and Agency Debentures    
AVAILABLE FOR SALE    
Due within one year or less, fair value $ 0 $ 21,402
Due in one year or less, weighted average yield 0.00% 4.64%
Due after one year through five years, fair value $ 40,023 $ 69,679
Due after one year through five years, weighted average yield 2.32% 3.64%
Due after five years through ten years, fair value $ 97,329 $ 89,941
Due after five years through ten years, weighted average yield 3.19% 3.40%
Due after ten years, fair value $ 295,114 $ 341,488
Due after ten years, weighted average yield 2.92% 3.00%
Fair value $ 432,466 $ 522,510
Weighted average yield 2.93% 3.21%
v3.25.0.1
INVESTMENT SECURITIES - Realized Gain/Loss on Investment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]    
Proceeds $ 0 $ 4,693
Gross gains 0 3
Gross losses $ 0 $ 0
v3.25.0.1
INVESTMENT SECURITIES - Securities Pledged to Secure Borrowings and Public Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Washington, Oregon and California State to secure public deposits $ 195,212 $ 10,654
Other securities pledged 1,334 1,440
Asset Pledged as Collateral without Right    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Total securities pledged as collateral 1,103,021 659,198
Asset Pledged as Collateral without Right | Deposits    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Federal Reserve Bank to secure existing or potential borrowings $ 906,475 $ 647,104
v3.25.0.1
LOANS AND CREDIT QUALITY - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Impaired [Line Items]    
Allowance for unfunded commitments $ 1,100 $ 1,800
Accrued interest receivable 25,100 28,900
Loans held for investment ("LHFI") $ 6,193,053 $ 7,382,404
Financing Receivable Accrued Interest After Allowance For Credit Loss Statement Of Financial Position, Extensible List Not Disclosed Flag Accrued interest on LHFI  
Washington | Residential Mortgage and Multifamily    
Financing Receivable, Impaired [Line Items]    
Percentage of loan portfolio 13.00% 11.00%
California | Multifamily    
Financing Receivable, Impaired [Line Items]    
Percentage of loan portfolio 30.00% 36.00%
Federal Home Loan Bank Advances | Asset Pledged as Collateral without Right    
Financing Receivable, Impaired [Line Items]    
Loans held for investment ("LHFI") $ 4,000,000 $ 5,100,000
Federal Reserve Bank Advances | Asset Pledged as Collateral without Right    
Financing Receivable, Impaired [Line Items]    
Loans held for investment ("LHFI") $ 1,400,000 $ 1,200,000
v3.25.0.1
LOANS AND CREDIT QUALITY - Loans Held for Investment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loans held for investment      
Total LHFI $ 6,231,796 $ 7,422,904  
ACL (38,743) (40,500) $ (41,500)
Total LHFI less ACL 6,193,053 7,382,404  
Fair Value, Recurring      
Loans held for investment      
Single family LHFI 1,287 1,280  
Commercial and industrial loans      
Loans held for investment      
Total LHFI 4,710,166 5,898,324  
Commercial and industrial loans | Real Estate Sector      
Loans held for investment      
Total LHFI 4,036,165 5,147,990  
ACL (24,484) (27,912) (27,859)
Commercial and industrial loans | Commercial and Industrial Sector      
Loans held for investment      
Total LHFI 674,001 750,334  
ACL (7,462) (3,849) (4,277)
Commercial and industrial loans | Non-owner occupied CRE      
Loans held for investment      
Total LHFI 570,750 641,885  
ACL (1,739) (2,610) (2,102)
Commercial and industrial loans | Multifamily      
Loans held for investment      
Total LHFI 2,992,675 3,940,189  
ACL (14,909) (13,093) (10,974)
Commercial and industrial loans | Construction/land development      
Loans held for investment      
Total LHFI 472,740 565,916  
Commercial and industrial loans | Owner occupied CRE      
Loans held for investment      
Total LHFI 361,997 391,285  
ACL (576) (899) (1,030)
Commercial and industrial loans | Commercial business      
Loans held for investment      
Total LHFI 312,004 359,049  
ACL (6,886) (2,950) (3,247)
Consumer Portfolio Segment      
Loans held for investment      
Total LHFI 1,521,630 1,524,580  
ACL (6,797) (8,739) (9,364)
Consumer Portfolio Segment | Single family      
Loans held for investment      
Total LHFI 1,109,095 1,140,279  
ACL (3,610) (5,287) (5,610)
Consumer Portfolio Segment | Home equity and other      
Loans held for investment      
Total LHFI 412,535 384,301  
ACL $ (3,187) $ (3,452) $ (3,754)
v3.25.0.1
LOANS AND CREDIT QUALITY - Related Parties (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Loans and Leases Receivable, Related Parties [Roll Forward]    
Beginning balance $ 1,932 $ 1,978
New loans and advances, net of principal repayments (73) (46)
Ending balance $ 1,859 $ 1,932
v3.25.0.1
LOANS AND CREDIT QUALITY - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
ACL for LHFI    
Beginning balance $ 40,500 $ 41,500
Provision for credit losses 677 (67)
Net (charge-offs) recoveries (2,434) (933)
Ending balance 38,743 40,500
Allowance for unfunded commitments    
Beginning balance 1,823 2,197
Provision for credit losses (677) (374)
Ending balance 1,146 1,823
Allowance for unfunded commitments (677) (374)
Total $ 0 $ (441)
v3.25.0.1
LOANS AND CREDIT QUALITY - Activity in Allowance for Credit Losses by Loan Portfolio (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Allowance for credit losses by loan portfolio    
Beginning balance $ 40,500 $ 41,500
Charge-offs (3,141) (1,381)
Recoveries 707 448
Provision 677 (67)
Ending balance 38,743 40,500
Commercial and industrial loans | Real Estate Sector    
Allowance for credit losses by loan portfolio    
Beginning balance 27,912 27,859
Charge-offs 0 0
Recoveries 0 0
Provision (3,428) 53
Ending balance 24,484 27,912
Commercial and industrial loans | Commercial and Industrial Sector    
Allowance for credit losses by loan portfolio    
Beginning balance 3,849 4,277
Charge-offs (2,963) (1,062)
Recoveries 522 87
Provision 6,054 547
Ending balance 7,462 3,849
Commercial and industrial loans | Non-owner occupied CRE    
Allowance for credit losses by loan portfolio    
Beginning balance 2,610 2,102
Charge-offs 0 0
Recoveries 0 0
Provision (871) 508
Ending balance 1,739 2,610
Commercial and industrial loans | Multifamily    
Allowance for credit losses by loan portfolio    
Beginning balance 13,093 10,974
Charge-offs 0 0
Recoveries 0 0
Provision 1,816 2,119
Ending balance 14,909 13,093
Commercial and industrial loans | Multifamily construction    
Allowance for credit losses by loan portfolio    
Beginning balance 3,983 998
Charge-offs 0 0
Recoveries 0 0
Provision (3,134) 2,985
Ending balance 849 3,983
Commercial and industrial loans | CRE construction    
Allowance for credit losses by loan portfolio    
Beginning balance 189 196
Charge-offs 0 0
Recoveries 0 0
Provision (123) (7)
Ending balance 66 189
Commercial and industrial loans | Single family construction    
Allowance for credit losses by loan portfolio    
Beginning balance 7,365 12,418
Charge-offs 0 0
Recoveries 0 0
Provision (628) (5,053)
Ending balance 6,737 7,365
Commercial and industrial loans | Single family construction to permanent    
Allowance for credit losses by loan portfolio    
Beginning balance 672 1,171
Charge-offs 0 0
Recoveries 0 0
Provision (488) (499)
Ending balance 184 672
Commercial and industrial loans | Owner occupied CRE    
Allowance for credit losses by loan portfolio    
Beginning balance 899 1,030
Charge-offs 0 0
Recoveries 0 0
Provision (323) (131)
Ending balance 576 899
Commercial and industrial loans | Commercial business    
Allowance for credit losses by loan portfolio    
Beginning balance 2,950 3,247
Charge-offs (2,963) (1,062)
Recoveries 522 87
Provision 6,377 678
Ending balance 6,886 2,950
Consumer Portfolio Segment    
Allowance for credit losses by loan portfolio    
Beginning balance 8,739 9,364
Charge-offs (178) (319)
Recoveries 185 361
Provision (1,949) (667)
Ending balance 6,797 8,739
Consumer Portfolio Segment | Single family    
Allowance for credit losses by loan portfolio    
Beginning balance 5,287 5,610
Charge-offs 0 0
Recoveries 7 23
Provision (1,684) (346)
Ending balance 3,610 5,287
Consumer Portfolio Segment | Home equity and other    
Allowance for credit losses by loan portfolio    
Beginning balance 3,452 3,754
Charge-offs (178) (319)
Recoveries 178 338
Provision (265) (321)
Ending balance $ 3,187 $ 3,452
v3.25.0.1
LOANS AND CREDIT QUALITY - Loans Credit Quality by Year and Type (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one $ 163,704 $ 273,487
Financing receivable, year two 238,834 2,520,561
Financing receivable, year three 2,275,837 1,781,268
Financing receivable, year four 1,102,301 767,209
Financing receivable, year five 591,778 465,962
Financing receivable, prior to year five 1,161,583 924,665
Revolving 692,476 681,941
Revolving-term 5,283 7,811
Total LHFI 6,231,796 7,422,904
Fair Value, Recurring    
Financing Receivable, Credit Quality Indicator [Line Items]    
Single family LHFI 1,287 1,280
Fair Value, Recurring | Level 3    
Financing Receivable, Credit Quality Indicator [Line Items]    
Single family LHFI 1,287 1,280
30-59 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total LHFI 4,945 6,148
60-89 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total LHFI 1,727 4,133
90+ days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total LHFI 4,354 4,261
Commercial and industrial loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 161,507 244,302
Financing receivable, year two 206,951 2,163,372
Financing receivable, year three 1,895,239 1,467,091
Financing receivable, year four 798,255 619,905
Financing receivable, year five 452,534 416,790
Financing receivable, prior to year five 904,196 674,608
Revolving 290,718 310,096
Revolving-term 766 2,160
Total LHFI 4,710,166 5,898,324
Commercial and industrial loans | Non-owner occupied CRE    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 1,499
Financing receivable, year two 1,441 70,388
Financing receivable, year three 70,128 71,217
Financing receivable, year four 71,493 41,235
Financing receivable, year five 39,885 135,816
Financing receivable, prior to year five 387,839 320,556
Revolving (36)  
Revolving   1,174
Revolving-term 0 0
Total LHFI 570,750 641,885
Commercial and industrial loans | Non-owner occupied CRE | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 1,499
Financing receivable, year two 1,441 70,388
Financing receivable, year three 70,128 71,217
Financing receivable, year four 71,493 41,235
Financing receivable, year five 39,885 118,900
Financing receivable, prior to year five 347,058 286,379
Revolving (36)  
Revolving   601
Revolving-term 0 0
Total LHFI 529,969 590,219
Commercial and industrial loans | Non-owner occupied CRE | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 686
Financing receivable, prior to year five 24,551 34,177
Revolving 0  
Revolving   0
Revolving-term 0 0
Total LHFI 24,551 34,863
Commercial and industrial loans | Non-owner occupied CRE | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 16,230
Financing receivable, prior to year five 16,230 0
Revolving 0  
Revolving   573
Revolving-term 0 0
Total LHFI 16,230 16,803
Commercial and industrial loans | Multifamily    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 1,650 108,274
Financing receivable, year two 106,415 1,813,647
Financing receivable, year three 1,620,674 1,155,619
Financing receivable, year four 647,833 488,595
Financing receivable, year five 330,418 191,935
Financing receivable, prior to year five 285,685 182,119
Revolving 0 0
Revolving-term 0 0
Total LHFI 2,992,675 3,940,189
Commercial and industrial loans | Multifamily | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 1,650 108,274
Financing receivable, year two 106,415 1,813,647
Financing receivable, year three 1,538,855 1,151,677
Financing receivable, year four 643,044 475,708
Financing receivable, year five 257,110 189,567
Financing receivable, prior to year five 255,643 177,712
Revolving 0 0
Revolving-term 0 0
Total LHFI 2,802,717 3,916,585
Commercial and industrial loans | Multifamily | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 66,217 3,942
Financing receivable, year four 4,789 12,887
Financing receivable, year five 73,308 2,368
Financing receivable, prior to year five 23,835 1,344
Revolving 0 0
Revolving-term 0 0
Total LHFI 168,149 20,541
Commercial and industrial loans | Multifamily | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 15,602 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 6,207 3,063
Revolving 0 0
Revolving-term 0 0
Total LHFI 21,809 3,063
Commercial and industrial loans | Multifamily construction    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 (198)
Financing receivable, year two 31,349 56,013
Financing receivable, year three 67,557 112,234
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 98,906 168,049
Commercial and industrial loans | Multifamily construction | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 (198)
Financing receivable, year two 31,349 56,013
Financing receivable, year three 67,557 112,234
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 98,906 168,049
Commercial and industrial loans | Multifamily construction | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | Multifamily construction | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | CRE construction    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 19 7
Financing receivable, year two 7,198 0
Financing receivable, year three 0 14,685
Financing receivable, year four 0 3,821
Financing receivable, year five 3,821 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 11,038 18,513
Commercial and industrial loans | CRE construction | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 19 7
Financing receivable, year two 7,198 0
Financing receivable, year three 0 14,685
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 7,217 14,692
Commercial and industrial loans | CRE construction | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | CRE construction | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 3,821
Financing receivable, year five 3,821 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 3,821 3,821
Commercial and industrial loans | Single family construction    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 121,305 75,305
Financing receivable, year two 22,412 39,621
Financing receivable, year three 5,346 12,294
Financing receivable, year four 7,252 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 69 72
Revolving 164,442 146,758
Revolving-term 0 0
Total LHFI 320,826 274,050
Commercial and industrial loans | Single family construction | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 121,305 75,305
Financing receivable, year two 22,412 39,621
Financing receivable, year three 5,346 12,294
Financing receivable, year four 7,252 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 69 72
Revolving 164,442 146,758
Revolving-term 0 0
Total LHFI 320,826 274,050
Commercial and industrial loans | Single family construction | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | Single family construction | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | Single family construction to permanent    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 6,153 27,114
Financing receivable, year two 9,719 56,469
Financing receivable, year three 17,598 19,871
Financing receivable, year four 7,977 1,850
Financing receivable, year five 523 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 41,970 105,304
Commercial and industrial loans | Single family construction to permanent | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 6,153 27,114
Financing receivable, year two 9,719 56,469
Financing receivable, year three 17,598 19,871
Financing receivable, year four 7,977 1,850
Financing receivable, year five 523 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 41,970 105,304
Commercial and industrial loans | Single family construction to permanent | 30-59 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | Single family construction to permanent | 60-89 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | Single family construction to permanent | 90+ days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 0 0
Revolving-term 0 0
Total LHFI 0 0
Commercial and industrial loans | Owner occupied CRE    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 5,431 14,331
Financing receivable, year two 12,290 69,877
Financing receivable, year three 64,883 48,919
Financing receivable, year four 40,973 43,399
Financing receivable, year five 41,850 68,601
Financing receivable, prior to year five 196,524 145,034
Revolving 3 2
Revolving-term 43 1,122
Total LHFI 361,997 391,285
Commercial and industrial loans | Owner occupied CRE | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 5,431 12,459
Financing receivable, year two 10,501 68,399
Financing receivable, year three 58,423 39,629
Financing receivable, year four 33,371 43,399
Financing receivable, year five 41,533 65,392
Financing receivable, prior to year five 168,082 111,199
Revolving 3 2
Revolving-term 43 1,122
Total LHFI 317,387 341,601
Commercial and industrial loans | Owner occupied CRE | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 1,871
Financing receivable, year two 1,789 1,478
Financing receivable, year three 6,129 9,290
Financing receivable, year four 7,602 0
Financing receivable, year five 317 2,956
Financing receivable, prior to year five 26,203 28,784
Revolving 0 0
Revolving-term 0 0
Total LHFI 42,040 44,379
Commercial and industrial loans | Owner occupied CRE | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 1
Financing receivable, year two 0 0
Financing receivable, year three 331 0
Financing receivable, year four 0 0
Financing receivable, year five 0 253
Financing receivable, prior to year five 2,239 5,051
Revolving 0 0
Revolving-term 0 0
Total LHFI 2,570 5,305
Commercial and industrial loans | Commercial business    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 26,949 17,970
Financing receivable, year two 16,127 57,357
Financing receivable, year three 49,053 32,252
Financing receivable, year four 22,727 41,005
Financing receivable, year five 36,037 20,438
Financing receivable, prior to year five 34,079 26,827
Revolving 126,309 162,162
Revolving-term 723 1,038
Total LHFI 312,004 359,049
Commercial and industrial loans | Commercial business | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 26,706 17,970
Financing receivable, year two 15,721 45,892
Financing receivable, year three 36,209 27,227
Financing receivable, year four 20,347 33,404
Financing receivable, year five 28,207 16,198
Financing receivable, prior to year five 28,836 24,903
Revolving 123,003 157,656
Revolving-term 700 973
Total LHFI 279,729 324,223
Commercial and industrial loans | Commercial business | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 11,465
Financing receivable, year three 959 2,891
Financing receivable, year four 2,380 0
Financing receivable, year five 638 452
Financing receivable, prior to year five 615 38
Revolving 386 3,485
Revolving-term 0 0
Total LHFI 4,978 18,331
Commercial and industrial loans | Commercial business | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 243 0
Financing receivable, year two 406 0
Financing receivable, year three 11,885 2,134
Financing receivable, year four 0 7,601
Financing receivable, year five 7,192 3,788
Financing receivable, prior to year five 4,628 1,886
Revolving 2,920 1,021
Revolving-term 23 65
Total LHFI 27,297 16,495
Consumer loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 2,197 29,185
Financing receivable, year two 31,883 357,189
Financing receivable, year three 380,598 314,177
Financing receivable, year four 304,046 147,304
Financing receivable, year five 139,244 49,172
Financing receivable, prior to year five 257,387 250,057
Revolving 401,758 371,845
Revolving-term 4,517 5,651
Total LHFI 1,521,630 1,524,580
Consumer loans | Single family    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 566 27,011
Financing receivable, year two 30,940 354,691
Financing receivable, year three 379,065 313,866
Financing receivable, year four 303,920 147,183
Financing receivable, year five 139,159 49,126
Financing receivable, prior to year five 255,445 248,402
Revolving 0 0
Revolving-term 0 0
Total LHFI 1,109,095 1,140,279
Consumer loans | Single family | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 566 27,011
Financing receivable, year two 30,940 354,691
Financing receivable, year three 378,613 313,866
Financing receivable, year four 303,920 147,183
Financing receivable, year five 139,159 49,126
Financing receivable, prior to year five 251,322 245,574
Revolving 0 0
Revolving-term 0 0
Total LHFI 1,104,520 1,137,451
Consumer loans | Single family | 30-59 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 452 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 1,673 781
Revolving 0 0
Revolving-term 0 0
Total LHFI 2,125 781
Consumer loans | Single family | 60-89 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 440 1,374
Revolving 0 0
Revolving-term 0 0
Total LHFI 440 1,374
Consumer loans | Single family | 90+ days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 2,010 673
Revolving 0 0
Revolving-term 0 0
Total LHFI 2,010 673
Consumer loans | Home equity and other    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 1,631 2,174
Financing receivable, year two 943 2,498
Financing receivable, year three 1,533 311
Financing receivable, year four 126 121
Financing receivable, year five 85 46
Financing receivable, prior to year five 1,942 1,655
Revolving 401,758 371,845
Revolving-term 4,517 5,651
Total LHFI 412,535 384,301
Consumer loans | Home equity and other | Current    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 1,606 2,165
Financing receivable, year two 936 2,493
Financing receivable, year three 1,528 311
Financing receivable, year four 126 121
Financing receivable, year five 85 46
Financing receivable, prior to year five 1,932 1,631
Revolving 399,531 370,462
Revolving-term 4,449 5,483
Total LHFI 410,193 382,712
Consumer loans | Home equity and other | 30-59 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 25 8
Financing receivable, year two 4 2
Financing receivable, year three 1 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 474 802
Revolving-term 62 162
Total LHFI 566 974
Consumer loans | Home equity and other | 60-89 days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 1
Financing receivable, year two 3 3
Financing receivable, year three 4 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 0 0
Revolving 626 419
Revolving-term 0 0
Total LHFI 633 423
Consumer loans | Home equity and other | 90+ days    
Financing Receivable, Credit Quality Indicator [Line Items]    
Financing receivable, year one 0 0
Financing receivable, year two 0 0
Financing receivable, year three 0 0
Financing receivable, year four 0 0
Financing receivable, year five 0 0
Financing receivable, prior to year five 10 24
Revolving 1,127 162
Revolving-term 6 6
Total LHFI $ 1,143 $ 192
v3.25.0.1
LOANS AND CREDIT QUALITY - Gross Charge-offs by Year and Type (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]    
Gross charge-offs, year one $ 0 $ 0
Gross charge-offs, year two (24) (106)
Gross charge-offs, year three (292) (206)
Gross charge-offs, year four (474) 0
Gross charge-offs, year five (1,077) (1,136)
Gross charge-offs, originated more than five years prior, net (1,098) 291
Revolving (176) (174)
Revolving-term 0 (50)
Total (3,141) (1,381)
Commercial Portfolio Segment | Commercial business    
Financing Receivable, Credit Quality Indicator [Line Items]    
Gross charge-offs, year one 0 0
Gross charge-offs, year two 0 0
Gross charge-offs, year three (276) (184)
Gross charge-offs, year four (473) 0
Gross charge-offs, year five (1,077) (1,136)
Gross charge-offs, originated more than five years prior, net (1,098) 295
Revolving, net (39) 13
Revolving-term 0 (50)
Total (2,963) (1,062)
Consumer Portfolio Segment    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total (178) (319)
Consumer Portfolio Segment | Home equity and other    
Financing Receivable, Credit Quality Indicator [Line Items]    
Gross charge-offs, year one 0 0
Gross charge-offs, year two (24) (106)
Gross charge-offs, year three (16) (22)
Gross charge-offs, year four (1) 0
Gross charge-offs, year five 0 0
Gross charge-offs, originated more than five years prior 0 (4)
Revolving (137) (187)
Revolving-term 0 0
Total $ (178) $ (319)
v3.25.0.1
LOANS AND CREDIT QUALITY - Collateral Dependent Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI $ 6,231,796 $ 7,422,904
Commercial and industrial loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 4,710,166 5,898,324
Commercial and industrial loans | Commercial and Industrial Sector    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 674,001 750,334
Commercial and industrial loans | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 570,750 641,885
Commercial and industrial loans | Owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 361,997 391,285
Commercial and industrial loans | Commercial business    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 312,004 359,049
Consumer Portfolio Segment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 1,521,630 1,524,580
Consumer Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 1,109,095 1,140,279
Consumer Portfolio Segment | Home equity and other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 412,535 384,301
CRE | Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 2,992,675 3,940,189
CRE | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 570,750 641,885
Land    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 8,241  
Land | Commercial and industrial loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 4,420  
Land | Commercial and industrial loans | Owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Land | Commercial and industrial loans | Commercial business    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 4,420  
Land | Consumer Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Land | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 3,821  
Land | CRE | Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Land | CRE | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Land | CRE | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 3,821  
1-4 Family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 3,759 4,134
1-4 Family | Commercial and industrial loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 2,927 2,788
1-4 Family | Commercial and industrial loans | Owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
1-4 Family | Commercial and industrial loans | Commercial business    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 2,927 2,788
1-4 Family | Consumer Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 832 773
1-4 Family | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 573
1-4 Family | CRE | Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
1-4 Family | CRE | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 573
1-4 Family | CRE | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 0
Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 1,915  
Multifamily | Commercial and industrial loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Multifamily | Commercial and industrial loans | Owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Multifamily | Commercial and industrial loans | Commercial business    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Multifamily | Consumer Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Multifamily | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 1,915  
Multifamily | CRE | Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 1,915  
Multifamily | CRE | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Multifamily | CRE | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Non-residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 16,435 25,522
Non-residential real estate | Commercial and industrial loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 205 5,471
Non-residential real estate | Commercial and industrial loans | Owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 205  
Non-residential real estate | Commercial and industrial loans | Commercial business    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 5,471
Non-residential real estate | Consumer Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 0
Non-residential real estate | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 16,230 20,051
Non-residential real estate | CRE | Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Non-residential real estate | CRE | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 16,230 16,230
Non-residential real estate | CRE | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 3,821
Other non-real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 3,269 4,587
Other non-real estate | Commercial and industrial loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 3,269 4,587
Other non-real estate | Commercial and industrial loans | Owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Other non-real estate | Commercial and industrial loans | Commercial business    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 3,269 4,587
Other non-real estate | Consumer Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 0
Other non-real estate | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 0
Other non-real estate | CRE | Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0  
Other non-real estate | CRE | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 0
Other non-real estate | CRE | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 0 0
Total    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 33,619 34,243
Total | Commercial and industrial loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 10,821 12,846
Total | Commercial and industrial loans | Owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 205  
Total | Commercial and industrial loans | Commercial business    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 10,616 12,846
Total | Consumer Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 832 773
Total | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 21,966 20,624
Total | CRE | Multifamily    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 1,915  
Total | CRE | Non-owner occupied CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI 16,230 16,803
Total | CRE | CRE    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total LHFI $ 3,821 $ 3,821
v3.25.0.1
LOANS AND CREDIT QUALITY - Loans on Nonaccrual With no Related Allowance (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL $ 32,742 $ 35,254
Total Nonaccrual 54,994 38,976
Commercial and industrial loans    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 9,670 13,857
Total Nonaccrual 26,901 14,392
Commercial and industrial loans | Owner occupied CRE    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 1,161 706
Total Nonaccrual 1,161 706
Commercial and industrial loans | Commercial business    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 8,509 13,151
Total Nonaccrual 25,740 13,686
Consumer loans    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 1,106 773
Total Nonaccrual 6,127 3,960
Consumer loans | Single family    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 1,106 773
Total Nonaccrual 2,990 2,650
Consumer loans | Home equity and other    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 0 0
Total Nonaccrual 3,137 1,310
CRE    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 21,966 20,624
Total Nonaccrual 21,966 20,624
CRE | Non-owner occupied CRE    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 16,230 16,803
Total Nonaccrual 16,230 16,803
CRE | CRE construction    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 3,821 3,821
Total Nonaccrual 3,821 3,821
CRE | Multifamily    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual with no related ACL 1,915 0
Total Nonaccrual 1,915 0
Commercial business | Owner occupied CRE    
Financing Receivable, Nonaccrual [Line Items]    
Total Nonaccrual 1,161 706
Commercial business | Commercial business    
Financing Receivable, Nonaccrual [Line Items]    
Total Nonaccrual $ 25,740 $ 13,686
v3.25.0.1
LOANS AND CREDIT QUALITY - Aging Analysis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss $ 6,231,796 $ 7,422,904
Nonaccrual $ 54,994 $ 38,976
Nonaccrual, percent of total loans 0.88% 0.53%
Total past due and nonaccrual $ 66,020 $ 53,518
Total past due and nonaccrual, percent of total loans 1.06% 0.72%
Current, percent of total loans 98.94% 99.28%
Percent of total loans 100.00% 100.00%
Federal Housing Administration, Veterans Affairs or Small Business Administration    
Financing Receivable, Past Due [Line Items]    
Total past due and nonaccrual $ 11,300 $ 12,400
Fair Value, Recurring    
Financing Receivable, Past Due [Line Items]    
Single family LHFI 1,287 1,280
Fair Value, Recurring | Level 3    
Financing Receivable, Past Due [Line Items]    
Single family LHFI 1,287 1,280
30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss $ 4,945 $ 6,148
Past due, percent of total loans 0.08% 0.08%
60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss $ 1,727 $ 4,133
Past due, percent of total loans 0.03% 0.05%
90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss $ 4,354 $ 4,261
Past due, percent of total loans 0.07% 0.06%
Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss $ 6,165,776 $ 7,369,386
Commercial business | Commercial and Industrial Sector    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 674,001 750,334
Nonaccrual 26,901 14,392
Total past due and nonaccrual 26,901 14,392
Commercial business | Commercial and Industrial Sector | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Commercial and Industrial Sector | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Commercial and Industrial Sector | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Commercial and Industrial Sector | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 647,100 735,942
Commercial business | Owner occupied CRE    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 361,997 391,285
Nonaccrual 1,161 706
Total past due and nonaccrual 1,161 706
Commercial business | Owner occupied CRE | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Owner occupied CRE | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Owner occupied CRE | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Owner occupied CRE | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 360,836 390,579
Commercial business | Commercial business    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 312,004 359,049
Nonaccrual 25,740 13,686
Total past due and nonaccrual 25,740 13,686
Commercial business | Commercial business | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Commercial business | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Commercial business | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Commercial business | Commercial business | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 286,264 345,363
Consumer loans    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 1,521,630 1,524,580
Nonaccrual 6,127 3,960
Total past due and nonaccrual 17,153 16,587
Consumer loans | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 4,945 6,148
Consumer loans | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 1,727 2,218
Consumer loans | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 4,354 4,261
Consumer loans | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 1,504,477 1,507,993
Consumer loans | Single family    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 1,109,095 1,140,279
Nonaccrual 2,990 2,650
Total past due and nonaccrual 13,041 14,078
Consumer loans | Single family | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 4,601 5,174
Consumer loans | Single family | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 1,096 1,993
Consumer loans | Single family | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 4,354 4,261
Consumer loans | Single family | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 1,096,054 1,126,201
Consumer loans | Home equity and other    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 412,535 384,301
Nonaccrual 3,137 1,310
Total past due and nonaccrual 4,112 2,509
Consumer loans | Home equity and other | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 344 974
Consumer loans | Home equity and other | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 631 225
Consumer loans | Home equity and other | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
Consumer loans | Home equity and other | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 408,423 381,792
CRE    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 21,966 20,624
Total past due and nonaccrual 16,230 16,803
CRE | Real Estate Sector    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 4,036,165 5,147,990
Nonaccrual 21,966 20,624
Total past due and nonaccrual 21,966 22,539
CRE | Real Estate Sector | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Real Estate Sector | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 1,915
CRE | Real Estate Sector | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Real Estate Sector | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 4,014,199 5,125,451
CRE | Non-owner occupied CRE    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 570,750 641,885
Nonaccrual 16,230 16,803
CRE | Non-owner occupied CRE | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Non-owner occupied CRE | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Non-owner occupied CRE | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Non-owner occupied CRE | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 554,520 625,082
CRE | Multifamily construction    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 98,906 168,049
Nonaccrual 0 0
Total past due and nonaccrual 0 0
CRE | Multifamily construction | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Multifamily construction | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Multifamily construction | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Multifamily construction | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 98,906 168,049
CRE | CRE construction    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 11,038 18,513
Nonaccrual 3,821 3,821
Total past due and nonaccrual 3,821 3,821
CRE | CRE construction | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | CRE construction | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | CRE construction | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | CRE construction | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 7,217 14,692
CRE | Single family construction    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 320,826 274,050
Nonaccrual 0 0
Total past due and nonaccrual 0 0
CRE | Single family construction | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Single family construction | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Single family construction | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Single family construction | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 320,826 274,050
CRE | Single family construction to permanent    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 41,970 105,304
Nonaccrual 0 0
Total past due and nonaccrual 0 0
CRE | Single family construction to permanent | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Single family construction to permanent | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Single family construction to permanent | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Single family construction to permanent | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 41,970 105,304
CRE | Multifamily    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 2,992,675 3,940,189
Nonaccrual 1,915 0
Total past due and nonaccrual 1,915 1,915
CRE | Multifamily | 30-59 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Multifamily | 60-89 days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 1,915
CRE | Multifamily | 90+ days    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss 0 0
CRE | Multifamily | Current    
Financing Receivable, Past Due [Line Items]    
Loans before allowance for credit loss $ 2,990,760 $ 3,938,274
v3.25.0.1
LOANS AND CREDIT QUALITY - Loan Modifications (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Commercial business | Multifamily | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 1,915 $ 0
% of Total Class of Financing Receivable 0.06% 0.00%
Commercial business | Commercial business | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 1,446 $ 839
% of Total Class of Financing Receivable 0.46% 0.23%
Commercial business | Commercial business | Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 1,536 $ 9,850
% of Total Class of Financing Receivable 0.49% 2.74%
Commercial business | Commercial business | Interest Rate Reduction and Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 4,420 $ 0
% of Total Class of Financing Receivable 1.42% 0.00%
Commercial business | Commercial business | Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 410 $ 0
% of Total Class of Financing Receivable 0.13% 0.00%
Commercial business | Non-owner occupied CRE | Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 19,331 $ 16,230
% of Total Class of Financing Receivable 3.39% 2.53%
Commercial business | CRE construction | Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 0 $ 3,821
% of Total Class of Financing Receivable 0.00% 0.68%
Commercial business | CRE construction | Interest Rate Reduction, Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 3,821 $ 0
% of Total Class of Financing Receivable 0.81% 0.00%
Commercial business | Owner occupied CRE | Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 254 $ 0
% of Total Class of Financing Receivable 0.07% 0.00%
Consumer Portfolio Segment | Single family | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 85 $ 1,082
% of Total Class of Financing Receivable 0.01% 0.09%
Consumer Portfolio Segment | Single family | Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 0 $ 273
% of Total Class of Financing Receivable 0.00% 0.02%
Consumer Portfolio Segment | Single family | Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 3,668 $ 2,526
% of Total Class of Financing Receivable 0.33% 0.22%
Consumer Portfolio Segment | Single family | Interest Rate Reduction, Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized Cost Basis at Period End $ 0 $ 191
% of Total Class of Financing Receivable 0.00% 0.02%
v3.25.0.1
LOANS AND CREDIT QUALITY - Loan Modifications, Financial Effect (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Commercial Portfolio Segment | CRE construction | Interest Rate Reduction    
Financing Receivable, Modified [Line Items]    
Weighted average contractual interest rate, before modification 7.75%  
Weighted average contractual interest rate, after modification 5.00%  
Commercial Portfolio Segment | CRE construction | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 7 months 6 days 2 years 8 months 12 days
Commercial Portfolio Segment | CRE construction | Term Extension    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 7 months 6 days 1 year 7 months 6 days
Commercial Portfolio Segment | Commercial business | Interest Rate Reduction    
Financing Receivable, Modified [Line Items]    
Weighted average contractual interest rate, before modification 7.75%  
Weighted average contractual interest rate, after modification 5.00%  
Commercial Portfolio Segment | Commercial business | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 7 months 6 days 5 years 2 months 12 days
Commercial Portfolio Segment | Commercial business | Term Extension    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 9 months 18 days 1 year 2 months 12 days
Commercial Portfolio Segment | Non-owner occupied CRE | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 9 months 18 days 3 years 8 months 12 days
Commercial Portfolio Segment | Non-owner occupied CRE | Term Extension    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 9 months 18 days 2 years 1 month 6 days
Commercial Portfolio Segment | Multifamily | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 1 year 6 months  
Commercial Portfolio Segment | Owner occupied CRE | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 3 years  
Commercial Portfolio Segment | Owner occupied CRE | Term Extension    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 3 years  
Consumer Portfolio Segment | Single family | Interest Rate Reduction    
Financing Receivable, Modified [Line Items]    
Weighted average contractual interest rate, before modification   5.25%
Weighted average contractual interest rate, after modification   5.00%
Consumer Portfolio Segment | Single family | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Weighted average percent of loan balances capitalized and added to term of loan 0.41% 0.37%
Consumer Portfolio Segment | Single family | Term Extension    
Financing Receivable, Modified [Line Items]    
Weighted average time added to life of loans (in years) 3 years 10 months 24 days 4 years 10 months 24 days
v3.25.0.1
LOANS AND CREDIT QUALITY - Loan Modifications, by Payment Status (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current    
Financing Receivable, Modified [Line Items]    
Loans modified $ 2,847 $ 31,551
30-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified 0 2,261
90+ Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified 3,940 324
Multifamily | Commercial Portfolio Segment | Current    
Financing Receivable, Modified [Line Items]    
Loans modified 0  
Multifamily | Commercial Portfolio Segment | 30-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified 0  
Multifamily | Commercial Portfolio Segment | 90+ Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified 1,915  
Commercial business | Commercial Portfolio Segment | Current    
Financing Receivable, Modified [Line Items]    
Loans modified 1,157 8,873
Commercial business | Commercial Portfolio Segment | 30-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified 0 976
Commercial business | Commercial Portfolio Segment | 90+ Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified 1,150 0
Single family | Consumer loan | Current    
Financing Receivable, Modified [Line Items]    
Loans modified 1,690 2,627
Single family | Consumer loan | 30-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified 0 1,285
Single family | Consumer loan | 90+ Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified $ 875 324
Non-owner occupied CRE | Commercial Portfolio Segment | Current    
Financing Receivable, Modified [Line Items]    
Loans modified   16,230
Non-owner occupied CRE | Commercial Portfolio Segment | 30-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified   0
Non-owner occupied CRE | Commercial Portfolio Segment | 90+ Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified   0
CRE construction | Commercial Portfolio Segment | Current    
Financing Receivable, Modified [Line Items]    
Loans modified   3,821
CRE construction | Commercial Portfolio Segment | 30-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified   0
CRE construction | Commercial Portfolio Segment | 90+ Days Past Due    
Financing Receivable, Modified [Line Items]    
Loans modified   $ 0
v3.25.0.1
LOANS AND CREDIT QUALITY - Loan Modifications with Subsequent Default, by Loan Modification (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default $ 238 $ 0
Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 1,150 976
Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 637 1,354
Interest Rate Reduction, Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Commercial Portfolio Segment | Commercial business | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Commercial Portfolio Segment | Commercial business | Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 1,150 976
Commercial Portfolio Segment | Commercial business | Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Commercial Portfolio Segment | Commercial business | Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Commercial Portfolio Segment | Commercial business | Interest Rate Reduction, Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Consumer Portfolio Segment | Single family | Significant Payment Delay    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 238 0
Consumer Portfolio Segment | Single family | Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Consumer Portfolio Segment | Single family | Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 0 0
Consumer Portfolio Segment | Single family | Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default 637 1,354
Consumer Portfolio Segment | Single family | Interest Rate Reduction, Significant Payment Delay and Term Extension    
Financing Receivable, Modified [Line Items]    
Loan modifications with subsequent default $ 0 $ 0
v3.25.0.1
PREMISES AND EQUIPMENT, NET - Schedule of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Abstract]    
Furniture and equipment $ 56,121 $ 56,777
Leasehold improvements 37,265 38,870
Land and buildings 42,374 42,153
Total 135,760 137,800
Less: accumulated depreciation (88,559) (84,218)
Net $ 47,201 $ 53,582
v3.25.0.1
DEPOSITS - Schedule of Deposit Balances (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deposit balances, including stated rates    
Noninterest-bearing demand deposits $ 1,195,781 $ 1,306,503
Interest-bearing demand deposits 323,112 344,748
Savings 229,659 261,508
Money market 1,396,697 1,622,665
Interest-bearing domestic deposit, Brokered deposits 751,406 1,218,008
Interest-bearing demand deposits, Amount, Other 2,516,366 2,009,946
Total interest bearing deposits 5,217,240 5,456,875
Deposits $ 6,413,021 $ 6,763,378
Weighted average rate, interest-bearing demand accounts 0.35% 0.25%
Weighted average rate, savings 0.06% 0.06%
Weighted average rate, money market 1.72% 1.79%
Interest-bearing demand deposits, Weighted Average Rate, Brokered deposits 4.61% 5.36%
Interest-bearing demand deposits, Weighted Average Rate, Other 4.37% 3.95%
Weighted average rate, interest bearing deposits 3.31% 3.19%
Weighted average rate 2.65% 2.58%
v3.25.0.1
DEPOSITS - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]    
Public funds included in deposits $ 315,000 $ 255,000
Time deposits, at or above FDIC insurance limit 265,000 194,000
Interest-bearing domestic deposit, Brokered deposits $ 751,406 $ 1,218,008
v3.25.0.1
DEPOSITS - Time Deposits (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Certificates of deposit outstanding  
Within one year $ 3,157,293
One to two years 105,759
Two to three years 2,067
Three to four years 1,136
Four to five years 1,517
Total $ 3,267,772
v3.25.0.1
BORROWINGS - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Federal Home Loan Bank and Other Borrowings [Line Items]    
Borrowings outstanding $ 1,000,000 $ 1,745,000
FHLB stock 50,700 55,300
AFX Overnight And Short Term Borrowings.    
Federal Home Loan Bank and Other Borrowings [Line Items]    
Borrowings outstanding 0 0
Federal Reserve Bank Advances    
Federal Home Loan Bank and Other Borrowings [Line Items]    
Available borrowing capacity 1,600,000 710,000
Federal Home Loan Bank Advances | Federal Home Loan Bank of Des Moines    
Federal Home Loan Bank and Other Borrowings [Line Items]    
Available borrowing capacity $ 1,300,000 2,100,000
Bank Term Funding Program | Federal Reserve Bank Advances    
Federal Home Loan Bank and Other Borrowings [Line Items]    
Borrowings outstanding   $ 645,000
v3.25.0.1
BORROWINGS - Schedule of FHLB advances (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Amount    
Within one year $ 450,000 $ 745,000
One to three years 550,000 450,000
Three through five years 0 550,000
Total $ 1,000,000 $ 1,745,000
Weighted Average Rate    
Within one year 4.56% 4.75%
One to three years 4.35% 4.56%
Three through five years 0.00% 4.35%
Total 4.44% 4.58%
v3.25.0.1
LONG-TERM DEBT - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]      
Long-term debt   $ 225,131 $ 224,766
Subordinated Debt      
Debt Instrument [Line Items]      
Long-term debt   62,000 62,000
3.5% Subordinated Notes Due 2032 | Subordinated Debt      
Debt Instrument [Line Items]      
Amount of subordinated notes offering $ 100,000    
Stated interest rate (percent) 3.50%    
Interest rate 2.15%    
Long-term debt   99,000 98,000
Senior Notes 6.50% Due 2026 | Senior Notes      
Debt Instrument [Line Items]      
Amount of subordinated notes offering $ 65,000    
Stated interest rate (percent) 6.50%    
Long-term debt   $ 65,000 $ 65,000
v3.25.0.1
LONG-TERM DEBT - Schedule of Subordinated Debt Securities (Details) - Subordinated Debt - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
HomeStreet Statutory Trust Subordinated Debt Securities I    
Debt Instrument [Line Items]    
Amount $ 5,155 $ 5,155
Interest rate 1.96% 1.96%
HomeStreet Statutory Trust Subordinated Debt Securities II    
Debt Instrument [Line Items]    
Amount $ 20,619 $ 20,619
Interest rate 1.76% 1.76%
HomeStreet Statutory Trust Subordinated Debt Securities III    
Debt Instrument [Line Items]    
Amount $ 20,619 $ 20,619
Interest rate 1.63% 1.63%
HomeStreet Statutory Trust Subordinated Debt Securities IV    
Debt Instrument [Line Items]    
Amount $ 15,464 $ 15,464
Interest rate 1.94% 1.94%
v3.25.0.1
DERIVATIVES AND HEDGING ACTIVITIES - Fair Value of Derivatives (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivatives, Fair Value [Line Items]    
Notional amount $ 338,586 $ 366,320
Derivatives before netting, derivative assets 10,666 11,183
Netting adjustments/Cash collateral, derivative assets (10,388) (10,119)
Carrying value on consolidated balance sheet, derivative asset 278 1,064
Derivatives before netting, derivative liability (10,701) (10,783)
Netting adjustments/Cash collateral, derivative liabilities 219 195
Carrying value on consolidated balance sheet, derivative liabilities 10,482 10,588
Derivative asset, collateral, obligation to return cash, offset 10,400 10,100
Fair Value, Recurring    
Derivatives, Fair Value [Line Items]    
Single family mortgage servicing rights 72,901 74,249
Fair Value, Recurring | Level 1    
Derivatives, Fair Value [Line Items]    
Single family mortgage servicing rights 0 0
Fair Value, Recurring | Fair Value, Inputs, Level 2 [Member]    
Derivatives, Fair Value [Line Items]    
Single family mortgage servicing rights 0 0
Fair Value, Recurring | Level 3    
Derivatives, Fair Value [Line Items]    
Single family mortgage servicing rights 72,901 74,249
Fair Value, Concentration of Credit Risk, Master Netting Arrangements    
Derivatives, Fair Value [Line Items]    
Derivative asset, collateral, obligation to return cash, offset 10,200 9,900
Forward sale commitments    
Derivatives, Fair Value [Line Items]    
Notional amount 87,912 87,509
Derivatives before netting, derivative assets 237 151
Derivatives before netting, derivative liability (402) (288)
Interest rate lock commitments    
Derivatives, Fair Value [Line Items]    
Notional amount 16,757 21,790
Derivatives before netting, derivative assets 175 411
Derivatives before netting, derivative liability (49) 0
Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Notional amount 222,917 235,521
Derivatives before netting, derivative assets 10,250 10,489
Derivatives before netting, derivative liability (10,250) (10,492)
Futures    
Derivatives, Fair Value [Line Items]    
Notional amount 5,200 12,200
Derivatives before netting, derivative assets 1 0
Derivatives before netting, derivative liability 0 (3)
Options    
Derivatives, Fair Value [Line Items]    
Notional amount 5,800 9,300
Derivatives before netting, derivative assets 3 132
Derivatives before netting, derivative liability $ 0 $ 0
v3.25.0.1
DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]    
Derivative asset, collateral, obligation to return cash, offset $ 10,400 $ 10,100
Derivative liability, collateral, right to reclaim cash, offset 195 218
Derivatives 338,586 366,320
Interest Rate Swap, Back-To-Back    
Derivative [Line Items]    
Derivatives $ 223,000 $ 236,000
v3.25.0.1
DERIVATIVES AND HEDGING ACTIVITIES - Master Netting Agreements (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross fair value, derivative assets $ 10,666 $ 11,183
Netting adjustments/Cash collateral, derivative assets (10,388) (10,119)
Carrying value, derivative assets 278 1,064
Gross fair value, derivative liabilities (10,701) (10,783)
Netting adjustments/Cash collateral, derivative liabilities 219 195
Carrying value, derivative liabilities $ (10,482) $ (10,588)
Derivative asset, statement of financial position Other assets Other assets
Derivative liability, statement of financial position Other liabilities Other liabilities
v3.25.0.1
DERIVATIVES AND HEDGING ACTIVITIES - Gain/Loss Recognized in Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Loan origination and sale activities    
Derivative Instruments, Gain (Loss) [Line Items]    
Net gain (loss) recognized on derivatives, including economic hedge $ 224 $ 804
Loan servicing income (loss)    
Derivative Instruments, Gain (Loss) [Line Items]    
Net gain (loss) recognized on derivatives, including economic hedge (1,230) (1,255)
Other    
Derivative Instruments, Gain (Loss) [Line Items]    
Net gain (loss) recognized on derivatives, including economic hedge $ 3 $ (3)
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Schedule of Loans Held for Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for sale $ 20,312 $ 19,637
Single family | Residential Portfolio Segment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for sale 20,312 12,849
CRE, Multifamily And SBA | Commercial Portfolio Segment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for sale $ 0 $ 6,788
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Schedule of Loans Sold (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans sold $ 1,508,694 $ 362,590
Loans held for sale 20,312 19,637
Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans sold 404,952 335,751
Single family | Residential Portfolio Segment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for sale 20,312 12,849
CRE, Multifamily And SBA | Commercial Portfolio Segment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans sold 1,103,742 26,839
Loans held for sale 0 $ 6,788
Multifamily | Commercial Portfolio Segment    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans held for sale $ 990,000  
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Schedule of Gain on Sales (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Gain on mortgage loan origination and sale activities [Line Items]      
Gain (loss) on loan origination and sale activities   $ (76,890) $ 9,346
Loans sold   1,508,694 362,590
Single family      
Gain on mortgage loan origination and sale activities [Line Items]      
Gain (loss) on loan origination and sale activities   9,573 8,500
Loans sold   404,952 335,751
CRE, Multifamily And SBA | Commercial Portfolio Segment      
Gain on mortgage loan origination and sale activities [Line Items]      
Gain (loss) on loan origination and sale activities   (86,463) 846
Loans sold   $ 1,103,742 $ 26,839
Multifamily | Commercial Portfolio Segment      
Gain on mortgage loan origination and sale activities [Line Items]      
Gain (loss) on loan origination and sale activities $ (88,800)    
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Loans Serviced for Others (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans serviced for others $ 7,097,545 $ 7,216,343
Residential Portfolio Segment | Single family    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans serviced for others 5,179,373 5,316,304
Commercial Portfolio Segment | CRE, Multifamily And SBA    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans serviced for others $ 1,918,172 $ 1,900,039
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Mortgage Repurchase Liability (Details) - Representations and Warranties Reserve for Loan Receivables - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Loss Contingency Accrual [Roll Forward]    
Balance, beginning of period $ 1,481 $ 2,232
Additions, net of adjustments (284) (330)
Realized losses (165) (421)
Balance, end of period $ 1,032 $ 1,481
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mortgage Banking Operations (Narrative) [Abstract]      
Servicing advances $ 1,600 $ 2,900  
Unfunded commitment balance of loans sold on a servicing-retained basis 1,189,762 1,273,939  
Representations and Warranties Reserve for Loan Receivables      
Mortgage Banking Operations (Narrative) [Abstract]      
Reserve liability related to mortgage repurchase $ 1,032 1,481 $ 2,232
Multifamily      
Mortgage Banking Operations (Narrative) [Abstract]      
Expected weighted average life of MSR 11 years 4 months 28 days    
Ginnie Mae Early Buyout Loans      
Mortgage Banking Operations (Narrative) [Abstract]      
Other assets - GNMA EBO loans $ 5,100 5,600  
Single family | Residential Portfolio Segment      
Mortgage Banking Operations (Narrative) [Abstract]      
Loans subject to representations and warranties $ 5,200,000 $ 5,300,000  
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Revenue from Mortgage Servicing (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Servicing income, net:    
Servicing fees and other $ 25,798 $ 26,134
Amortization of multifamily and SBA MSRs (5,612) (5,778)
Net servicing income 13,686 13,978
Risk management, single family MSRs:    
Changes in fair value of MSRs due to assumptions 1,743 414
Net gain (loss) from economic hedging (3) (2,932) (1,744)
Total (1,189) (1,330)
Loan servicing income $ 12,497 12,648
Servicing asset at fair value, other change in fair value, statement of income or comprehensive income, extensible enumeration, not disclosed flag Changes in fair value of MSRs due to assumptions (2)  
Interest income from Treasury debt securities $ 1,200 1,400
Single family    
Servicing income, net:    
Amortization of single family MSRs 6,500 6,378
Risk management, single family MSRs:    
Changes in fair value of MSRs due to assumptions (1,743) (414)
Residential Portfolio Segment | Single family    
Servicing income, net:    
Amortization of single family MSRs (6,500) (6,378)
Residential Portfolio Segment | Multifamily    
Servicing income, net:    
Amortization of multifamily and SBA MSRs $ (5,612) $ (5,778)
v3.25.0.1
MORTGAGE BANKING OPERATIONS - SF MSR Roll Forward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Additions and amortization:    
Changes in fair value assumptions $ (1,743) $ (414)
Servicing asset at fair value, other change in fair value, statement of income or comprehensive income, extensible enumeration, not disclosed flag Changes in fair value of MSRs due to assumptions (2)  
Single family    
Servicing Asset at Amortized Value, Balance [Roll Forward]    
Beginning balance $ 74,249 76,617
Additions and amortization:    
Originations 3,409 3,136
Purchases 0 460
Amortization (6,500) (6,378)
Net additions and amortization (3,091) (2,782)
Changes in fair value assumptions 1,743 414
Ending balance $ 72,901 $ 74,249
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Key Economic Assumptions (Details)
Dec. 31, 2024
Dec. 31, 2023
CPRs | Weighted Average    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.0660 0.0700
CPRs | Single family | Weighted Average    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1807 0.1489
CPRs | Single family | Minimum    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.0600 0.0680
CPRs | Single family | Maximum    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1350 0.3250
Discount Rates | Weighted Average    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1100 0.1000
Discount Rates | Single family | Weighted Average    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1023 0.1199
Discount Rates | Single family | Minimum    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1000 0.1000
Discount Rates | Single family | Maximum    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1700 0.1700
Discount Rates | Multifamily | Weighted Average    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1310 0.1300
Discount Rates | Multifamily | Minimum    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1300 0.1300
Discount Rates | Multifamily | Maximum    
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs    
Servicing asset, measurement input 0.1500 0.1500
v3.25.0.1
MORTGAGE BANKING OPERATIONS - Sensitivity Analysis (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs      
Expected weighted-average life (in years) 8 years 4 months 13 days    
CPR      
Impact on fair value of 25 basis points adverse change in interest rates $ (759)    
Impact on fair value of 50 basis points adverse change in interest rates (1,594)    
Discount rate      
Impact on fair value of 100 basis points increase (2,133)    
Impact on fair value of 200 basis points increase (4,669)    
Single family      
Key economic assumptions and the sensitivity of the current fair valu for single family MSRs      
Single family mortgage servicing rights $ 72,901 $ 74,249 $ 76,617
CPRs | Weighted Average      
Discount rate      
Servicing asset, measurement input 0.0660 0.0700  
CPRs | Single family | Minimum      
Discount rate      
Servicing asset, measurement input 0.0600 0.0680  
CPRs | Single family | Maximum      
Discount rate      
Servicing asset, measurement input 0.1350 0.3250  
CPRs | Single family | Weighted Average      
Discount rate      
Servicing asset, measurement input 0.1807 0.1489  
Discount Rates | Weighted Average      
Discount rate      
Servicing asset, measurement input 0.1100 0.1000  
Discount Rates | Single family | Minimum      
Discount rate      
Servicing asset, measurement input 0.1000 0.1000  
Discount Rates | Single family | Maximum      
Discount rate      
Servicing asset, measurement input 0.1700 0.1700  
Discount Rates | Single family | Weighted Average      
Discount rate      
Servicing asset, measurement input 0.1023 0.1199  
v3.25.0.1
MORTGAGE BANKING OPERATIONS - MF MSR Roll Forward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Servicing Asset at Amortized Value, Balance [Roll Forward]    
Beginning balance $ 29,987 $ 35,256
Origination 2,190 509
Amortization (5,612) (5,778)
Ending balance $ 26,565 $ 29,987
v3.25.0.1
MORTGAGE BANKING OPERATIONS - MSR Projected Amortization (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Projected Amortization Expense, Fiscal Year Maturity [Abstract]      
2025 $ 5,278    
2026 4,807    
2027 4,101    
2028 3,645    
2029 3,286    
2030 and thereafter 5,448    
Carrying value of multifamily and SBA MSRs $ 26,565 $ 29,987 $ 35,256
v3.25.0.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES - Schedule of Commitments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loss Contingencies [Line Items]    
Unfunded commitment balance of loans sold on a servicing-retained basis $ 1,189,762 $ 1,273,939
Unused consumer portfolio lines    
Loss Contingencies [Line Items]    
Unfunded commitment balance of loans sold on a servicing-retained basis 609,930 586,904
Commercial portfolio lines    
Loss Contingencies [Line Items]    
Unfunded commitment balance of loans sold on a servicing-retained basis 523,415 648,609
Commitments to fund loans    
Loss Contingencies [Line Items]    
Unfunded commitment balance of loans sold on a servicing-retained basis 56,417 38,426
Undisbursed construction loan funds    
Loss Contingencies [Line Items]    
Unfunded commitment balance of loans sold on a servicing-retained basis $ 306,000 $ 403,000
v3.25.0.1
COMMITMENTS, GUARANTEES AND CONTINGENCIES - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Loss Contingencies [Line Items]      
Allowance for unfunded commitments $ 1,100,000 $ 1,800,000  
Loss Sharing Relationship      
Loss Contingencies [Line Items]      
Reserve liability related to multifamily DUS Program 700,000 500,000  
Multifamily | Loss Sharing Relationship      
Loss Contingencies [Line Items]      
UPB of loans sold through DUS 1,800,000,000 1,800,000,000  
Loss incurred - related to DUS 0 0 $ 0
Investment commitment      
Loss Contingencies [Line Items]      
Investment in qualifying small businesses $ 9,900,000 $ 10,700,000  
v3.25.0.1
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current expense (benefit)      
Federal $ 6,731 $ 2,900  
State and local (841) 980  
Deferred expense (benefit)      
Federal (30,836) (7,407)  
State and local (4,532) (1,722)  
Total (29,478) (5,249)  
Deferred tax assets valuation allowance 53,310 0 $ 0
Income tax (benefit) expense $ 23,832 $ (5,249)  
v3.25.0.1
INCOME TAXES - Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Rate      
Federal tax statutory rate 21.00% 21.00%  
State tax - net of federal tax benefit 3.63% 4.12%  
Tax-exempt investments 0.65% 3.86%  
Low income housing tax benefits 0.91% 3.20%  
Stock-based compensation expense (0.55%) (1.28%)  
Goodwill 0.00% (14.13%)  
Other (1.18%) (0.75%)  
Total 24.46% 16.02%  
Amount      
Income (loss) before income taxes $ (120,512) $ (32,757)  
Federal tax statutory rate (25,308) (6,879)  
State tax - net of federal tax benefit (4,380) (1,351)  
Tax-exempt investments (788) (1,266)  
Low income housing tax benefits (1,093) (1,047)  
Stock-based compensation expense 672 421  
Goodwill 0 4,627  
Other 1,419 246  
Total (29,478) (5,249)  
Deferred tax assets valuation allowance 53,310 0 $ 0
Income tax expense (benefit) $ 23,832 $ (5,249)  
v3.25.0.1
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets    
Provision for credit losses $ 10,220 $ 10,977
Nonaccrual interest 28,343 28,571
LIHTC tax credits carryforwards 5,667 0
Net operating loss carryforwards 26,736 370
Accrued liabilities 2,241 1,917
Other investments 786 463
Lease liabilities 8,071 9,019
Nonaccrual interest 1,695 1,112
Intangibles 4,796 4,725
Stock based compensation 849 782
Loan valuation 240 274
Premises and equipment 681 0
Other 457 401
Total 90,782 58,611
Deferred tax liabilities    
Mortgage servicing rights (22,805) (24,204)
Deferred loan fees and costs (8,465) (8,967)
Lease right-of-use assets (6,202) (6,906)
Premises and equipment 0 (364)
Total (37,472) (40,441)
Net deferred tax asset (liability)   18,170
Net deferred tax asset (liability) 53,310  
Valuation allowance (53,310) 0
Net deferred tax asset $ 0 $ 18,170
v3.25.0.1
INCOME TAXES - Narrative (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]    
Tax basis in unrecorded bad debt reserves with no liability recorded $ 12,700,000 $ 12,700,000
Unrecognized tax benefits 0 0
Deferred tax assets, valuation allowance 53,310,000 0
Low Income Housing Tax Credit (LIHTC) | Tax Year 2043    
Operating Loss Carryforwards [Line Items]    
Tax credit carryforward subject to expiration 400,000  
Low Income Housing Tax Credit (LIHTC) | Tax Year 2044    
Operating Loss Carryforwards [Line Items]    
Tax credit carryforward subject to expiration 5,300,000  
State and Local Jurisdiction    
Operating Loss Carryforwards [Line Items]    
Net operating loss carryforwards 111,000,000.0  
Operating loss carryforwards, subject to expiration 4,300,000 $ 4,400,000
Domestic Tax Jurisdiction    
Operating Loss Carryforwards [Line Items]    
Net operating loss carryforwards $ 111,900,000  
v3.25.0.1
RETIREMENT BENEFIT PLAN (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Contribution Plan Disclosure [Line Items]    
Employer contribution amount $ 3.2 $ 3.4
Tranche One    
Defined Contribution Plan Disclosure [Line Items]    
Percentage of employer matching 100.00%  
Defined contribution plan automatic enrollment percent 3.00%  
Tranche Two    
Defined Contribution Plan Disclosure [Line Items]    
Percentage of employer matching 50.00%  
Defined contribution plan automatic enrollment percent 2.00%  
v3.25.0.1
FAIR VALUE MEASUREMENT - Schedule of Fair Value Hierarchy Measurement (Details) - Fair Value, Recurring - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Single family LHFS $ 20,312,000 $ 12,849,000
Single family LHFI 1,287,000 1,280,000
Single family mortgage servicing rights 72,901,000 74,249,000
Total assets 1,159,871,000 1,375,458,000
Liabilities:    
Total liabilities 10,701,000 10,783,000
Level 1    
Assets:    
Single family LHFS 0 0
Single family LHFI 0 0
Single family mortgage servicing rights 0 0
Total assets 34,750,000 24,830,000
Liabilities:    
Total liabilities 0 3,000
Level 2    
Assets:    
Single family LHFS 20,312,000 12,849,000
Single family LHFI 0 0
Single family mortgage servicing rights 0 0
Total assets 1,049,060,000 1,272,828,000
Liabilities:    
Total liabilities 10,652,000 10,780,000
Level 3    
Assets:    
Investment securities AFS 1,698,000 1,860,000
Single family LHFS 0 0
Single family LHFI 1,287,000 1,280,000
Single family mortgage servicing rights 72,901,000 74,249,000
Total assets 76,061,000 77,800,000
Liabilities:    
Total liabilities 49,000 0
U.S. Treasury securities    
Assets:    
Trading securities - U.S. Treasury securities 34,746,000 24,698,000
U.S. Treasury securities | Level 1    
Assets:    
Trading securities - U.S. Treasury securities 34,746,000 24,698,000
U.S. Treasury securities | Level 2    
Assets:    
Trading securities - U.S. Treasury securities 0 0
U.S. Treasury securities | Level 3    
Assets:    
Trading securities - U.S. Treasury securities 0 0
Residential    
Assets:    
Investment securities AFS 167,462,000 183,798,000
Residential | Level 1    
Assets:    
Investment securities AFS 0 0
Residential | Level 2    
Assets:    
Investment securities AFS 165,764,000 181,938,000
Residential | Level 3    
Assets:    
Investment securities AFS 1,698,000 1,860,000
Commercial    
Assets:    
Investment securities AFS 47,642,000 47,756,000
Commercial | Level 1    
Assets:    
Investment securities AFS 0 0
Commercial | Level 2    
Assets:    
Investment securities AFS 47,642,000 47,756,000
Commercial | Level 3    
Assets:    
Investment securities AFS 0 0
Residential    
Assets:    
Investment securities AFS 317,444,000 439,738,000
Residential | Level 1    
Assets:    
Investment securities AFS 0 0
Residential | Level 2    
Assets:    
Investment securities AFS 317,444,000 439,738,000
Residential | Level 3    
Assets:    
Investment securities AFS 0 0
Commercial    
Assets:    
Investment securities AFS 54,945,000 57,397,000
Commercial | Level 1    
Assets:    
Investment securities AFS 0 0
Commercial | Level 2    
Assets:    
Investment securities AFS 54,945,000 57,397,000
Commercial | Level 3    
Assets:    
Investment securities AFS 0 0
Municipal bonds    
Assets:    
Investment securities AFS 378,259,000 404,874,000
Municipal bonds | Level 1    
Assets:    
Investment securities AFS 0 0
Municipal bonds | Level 2    
Assets:    
Investment securities AFS 378,259,000 404,874,000
Municipal bonds | Level 3    
Assets:    
Investment securities AFS 0 0
Corporate debt securities    
Assets:    
Investment securities AFS 24,944,000 38,547,000
Corporate debt securities | Level 1    
Assets:    
Investment securities AFS 0 0
Corporate debt securities | Level 2    
Assets:    
Investment securities AFS 24,944,000 38,547,000
Corporate debt securities | Level 3    
Assets:    
Investment securities AFS 0 0
U.S. Treasury securities    
Assets:    
Investment securities AFS 19,987,000 20,184,000
U.S. Treasury securities | Level 1    
Assets:    
Investment securities AFS 0 0
U.S. Treasury securities | Level 2    
Assets:    
Investment securities AFS 19,987,000 20,184,000
U.S. Treasury securities | Level 3    
Assets:    
Investment securities AFS 0 0
Agency debentures    
Assets:    
Investment securities AFS 9,276,000 58,905,000
Agency debentures | Level 1    
Assets:    
Investment securities AFS 0 0
Agency debentures | Level 2    
Assets:    
Investment securities AFS 9,276,000 58,905,000
Agency debentures | Level 3    
Assets:    
Investment securities AFS 0 0
Futures    
Assets:    
Derivative assets 1,000  
Liabilities:    
Derivative liabilities   3,000
Futures | Level 1    
Assets:    
Derivative assets 1,000  
Liabilities:    
Derivative liabilities   3,000
Futures | Level 2    
Assets:    
Derivative assets 0 0
Futures | Level 3    
Assets:    
Derivative assets 0  
Liabilities:    
Derivative liabilities   0
Forward sale commitments    
Assets:    
Derivative assets 237,000 151,000
Liabilities:    
Derivative liabilities 402,000 288,000
Forward sale commitments | Level 1    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities 0 0
Forward sale commitments | Level 2    
Assets:    
Derivative assets 237,000 151,000
Liabilities:    
Derivative liabilities 402,000 288,000
Forward sale commitments | Level 3    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities 0 0
Options    
Assets:    
Derivative assets 3,000 132,000
Options | Level 1    
Assets:    
Derivative assets 3,000 132,000
Options | Level 2    
Assets:    
Derivative assets 0 0
Options | Level 3    
Assets:    
Derivative assets 0
Interest rate lock commitments    
Assets:    
Derivative assets 175,000 411,000
Liabilities:    
Derivative liabilities 49,000  
Interest rate lock commitments | Level 1    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities 0  
Interest rate lock commitments | Level 2    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities 0  
Interest rate lock commitments | Level 3    
Assets:    
Derivative assets 175,000 411,000
Liabilities:    
Derivative liabilities 49,000  
Interest rate swaps    
Assets:    
Derivative assets 10,250,000 10,489,000
Liabilities:    
Derivative liabilities 10,250,000 10,492,000
Interest rate swaps | Level 1    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities 0 0
Interest rate swaps | Level 2    
Assets:    
Derivative assets 10,250,000 10,489,000
Liabilities:    
Derivative liabilities 10,250,000 10,492,000
Interest rate swaps | Level 3    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities $ 0 $ 0
v3.25.0.1
FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Transfers between levels of fair value hierarchy $ 0 $ 0
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Single family LHFI 1,287,000 1,280,000
Single family LHFS 20,312,000 12,849,000
Fair Value, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Single family LHFI 1,287,000 1,280,000
Single family LHFS $ 0 $ 0
v3.25.0.1
FAIR VALUE MEASUREMENT - Schedule of Level 3 Unobservable Inputs (Details) - Fair Value, Recurring
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Single family LHFI $ 1,287 $ 1,280
Level 3    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Investment securities AFS 1,698 1,860
Single family LHFI 1,287 1,280
Level 3 | Single family    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Single family LHFI $ 1,287 $ 1,280
Implied spread to benchmark interest rate curve | Level 3 | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Investment securities available for sale, measurement input 0.0225 0.0225
Implied spread to benchmark interest rate curve | Level 3 | Minimum | Single family    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Single family LHFI, measurement input 0.0294 0.0330
Implied spread to benchmark interest rate curve | Level 3 | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Investment securities available for sale, measurement input 0.0225 0.0225
Implied spread to benchmark interest rate curve | Level 3 | Maximum | Single family    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Single family LHFI, measurement input 0.0556 0.0504
Implied spread to benchmark interest rate curve | Level 3 | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Investment securities available for sale, measurement input 0.0225 0.0225
Implied spread to benchmark interest rate curve | Level 3 | Weighted Average | Single family    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Single family LHFI, measurement input 0.0369 0.0394
Interest rate lock commitments | Level 3    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments, net $ 126 $ 411
Interest rate lock commitments | Fall-out factor | Level 3 | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments, net, measurement input 0.0083 0.0081
Interest rate lock commitments | Fall-out factor | Level 3 | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments, net, measurement input 0.2913 0.4164
Interest rate lock commitments | Fall-out factor | Level 3 | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments, net, measurement input 0.0928 0.1054
Interest rate lock commitments | Value of servicing | Level 3 | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments, net, measurement input 0.0078 0.0032
Interest rate lock commitments | Value of servicing | Level 3 | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments, net, measurement input 0.0215 0.0080
Interest rate lock commitments | Value of servicing | Level 3 | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Interest rate lock commitments, net, measurement input 0.0137 0.0057
v3.25.0.1
FAIR VALUE MEASUREMENT - Schedule of Fair Value Changes and Activity for Level 3 (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Interest Rate Lock and Loan Purchase Commitments    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance $ 411 $ 105
Payoffs/Sales (4,055) (2,028)
Change in mark to market 3,770 2,334
Ending balance 126 411
Investment securities AFS    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance 1,860 2,009
Additions 0 0
Transfers 0 0
Payoffs/Sales (200) (192)
Change in mark to market 38 43
Ending balance 1,698 1,860
Single family LHFI    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance 1,280 5,868
Additions 0 0
Transfers 0 0
Payoffs/Sales 0 (4,607)
Change in mark to market 7 19
Ending balance $ 1,287 $ 1,280
v3.25.0.1
FAIR VALUE MEASUREMENT - FV Unobservable Inputs - Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Level 3 - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for investment $ 3,269 $ 4,349
Gains/losses on loans held for investment $ (3,114) $ (1,410)
v3.25.0.1
FAIR VALUE MEASUREMENT - FV of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Other assets - GNMA EBO loans $ 6,193,053 $ 7,382,404
Carrying Value    
Assets:    
Cash and cash equivalents 406,600 215,664
Investment securities HTM 2,301 2,371
Single family LHFI 6,191,766 7,381,124
Federal Home Loan Bank stock 50,676 55,293
Liabilities:    
Certificates of deposit 3,267,772 3,227,954
Borrowings 1,000,000 1,745,000
Long-term debt 225,131 224,766
Estimate of Fair Value Measurement    
Assets:    
Cash and cash equivalents   215,664
Investment securities HTM 2,273 2,331
Single family LHFI 5,864,426 7,002,028
Federal Home Loan Bank stock 50,676 55,293
Liabilities:    
Certificates of deposit 3,262,350 3,216,665
Borrowings 1,001,873 1,750,023
Long-term debt 184,124 132,996
Level 1 | Estimate of Fair Value Measurement    
Assets:    
Cash and cash equivalents 406,600 215,664
Investment securities HTM 0 0
Single family LHFI 0 0
Federal Home Loan Bank stock 0 0
Liabilities:    
Certificates of deposit 0 0
Borrowings 0 0
Long-term debt 0 0
Level 2 | Estimate of Fair Value Measurement    
Assets:    
Cash and cash equivalents 0 0
Investment securities HTM 2,273 2,331
Single family LHFI 0 0
Federal Home Loan Bank stock 50,676 55,293
Liabilities:    
Certificates of deposit 3,262,350 3,216,665
Borrowings 1,001,873 1,750,023
Long-term debt 184,124 132,996
Level 3 | Estimate of Fair Value Measurement    
Assets:    
Cash and cash equivalents 0 0
Investment securities HTM 0 0
Single family LHFI 5,864,426 7,002,028
Federal Home Loan Bank stock 0 0
Liabilities:    
Certificates of deposit 0 0
Borrowings 0 0
Long-term debt 0 0
Multifamily | Carrying Value    
Assets:    
LHFS – multifamily and other   6,788
Mortgage servicing rights – multifamily and SBA 26,565 29,987
Multifamily | Estimate of Fair Value Measurement    
Assets:    
LHFS – multifamily and other   6,871
Mortgage servicing rights – multifamily and SBA 32,361 35,292
Multifamily | Level 1 | Estimate of Fair Value Measurement    
Assets:    
LHFS – multifamily and other   0
Mortgage servicing rights – multifamily and SBA 0 0
Multifamily | Level 2 | Estimate of Fair Value Measurement    
Assets:    
LHFS – multifamily and other   6,871
Mortgage servicing rights – multifamily and SBA 0 0
Multifamily | Level 3 | Estimate of Fair Value Measurement    
Assets:    
LHFS – multifamily and other   0
Mortgage servicing rights – multifamily and SBA 32,361 35,292
Ginnie Mae Early Buyout Loans | Carrying Value    
Assets:    
Other assets - GNMA EBO loans 5,111 5,617
Ginnie Mae Early Buyout Loans | Estimate of Fair Value Measurement    
Assets:    
Other assets - GNMA EBO loans 5,111 5,617
Ginnie Mae Early Buyout Loans | Level 1 | Estimate of Fair Value Measurement    
Assets:    
Other assets - GNMA EBO loans 0 0
Ginnie Mae Early Buyout Loans | Level 2 | Estimate of Fair Value Measurement    
Assets:    
Other assets - GNMA EBO loans 0 0
Ginnie Mae Early Buyout Loans | Level 3 | Estimate of Fair Value Measurement    
Assets:    
Other assets - GNMA EBO loans $ 5,111 $ 5,617
v3.25.0.1
FAIR VALUE MEASUREMENT - Fair Value Option (Details) - Fair Value, Recurring - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Single family LHFS $ 20,312 $ 12,849
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Single family LHFS 20,312 12,849
Aggregate Unpaid Principal Balance 20,137 12,583
Fair Value Less Aggregate Unpaid Principal Balance $ 175 $ 266
v3.25.0.1
REGULATORY CAPITAL REQUIREMENTS - Schedule of Capital and Capital Ratios (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
HomeStreet Bank    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 leverage capital (to average assets) $ 678,869 $ 814,719
Tier 1 leverage capital (to average assets), ratio 0.0730 0.0850
Tier 1 leverage capital (to average assets), required for capital adequacy purposes $ 372,132 $ 383,482
Tier 1 leverage capital (to average assets), required for capital adequacy purposes, ratio 0.040 0.040
Tier 1 leverage capital (to average assets), required to be categorized as well capitalized $ 465,165 $ 479,352
Tier 1 leverage capital (to average assets), required to be categorized as well capitalized, ratio 0.050 0.050
Common equity tier 1 capital (to risk-weighted assets) $ 678,869 $ 814,719
Common equity tier 1 capital (to risk-weighted assets), ratio 0.1227 0.1279
Common equity tier 1 capital (to risk-weighted assets), required for capital adequacy $ 249,000 $ 286,569
Common equity tier 1 capital (to risk-weighted assets), required for capital adequacy, ratio 0.045 0.045
Common equity tier 1 capital (to risk-weighted assets), required to be well capitalized $ 359,667 $ 413,933
Common equity tier 1 capital (to risk-weighted assets), required to be well capitalized, ratio 0.065 0.065
Tier 1 risk-based capital (to risk-weighted assets) $ 678,869 $ 814,719
Tier 1 risk-based capital (to risk-weighted assets), ratio 0.1227 0.1279
Tier 1 risk-based capital (to risk-weighted assets), required for capital adequacy $ 332,001 $ 382,092
Tier 1 risk-based capital (to risk-weighted assets), required for capital adequacy, ratio 0.060 0.060
Tier 1 risk-based capital (to risk-weighted assets), required to be well capitalized $ 442,667 $ 509,456
Tier 1 risk-based capital (to risk-weighted assets), required to be well capitalized, ratio 0.080 0.080
Total risk-based capital (to risk-weighted assets) $ 720,498 $ 858,992
Total risk-based capital (to risk-weighted assets), ratio 0.1302 0.1349
Total risk-based capital (to risk-weighted assets), required for capital adequacy $ 442,667 $ 509,456
Total risk-based capital (to risk-weighted assets), required for capital adequacy, ratio 0.080 0.080
Total risk-based capital (to risk-weighted assets), required to be well capitalized $ 553,334 $ 636,820
Total risk-based capital (to risk-weighted assets), required to be well capitalized, ratio 0.100 0.100
HomeStreet, Inc.    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 leverage capital (to average assets) $ 537,057 $ 675,440
Tier 1 leverage capital (to average assets), ratio 0.0577 0.0704
Tier 1 leverage capital (to average assets), required for capital adequacy purposes $ 372,319 $ 383,696
Tier 1 leverage capital (to average assets), required for capital adequacy purposes, ratio 0.040 0.040
Common equity tier 1 capital (to risk-weighted assets) $ 477,057 $ 615,440
Common equity tier 1 capital (to risk-weighted assets), ratio 0.0862 0.0966
Common equity tier 1 capital (to risk-weighted assets), required for capital adequacy $ 249,109 $ 286,709
Common equity tier 1 capital (to risk-weighted assets), required for capital adequacy, ratio 0.045 0.045
Tier 1 risk-based capital (to risk-weighted assets) $ 537,057 $ 675,440
Tier 1 risk-based capital (to risk-weighted assets), ratio 0.0970 0.1060
Tier 1 risk-based capital (to risk-weighted assets), required for capital adequacy $ 332,145 $ 382,279
Tier 1 risk-based capital (to risk-weighted assets), required for capital adequacy, ratio 0.060 0.060
Total risk-based capital (to risk-weighted assets) $ 677,225 $ 818,075
Total risk-based capital (to risk-weighted assets), ratio 0.1223 0.1284
Total risk-based capital (to risk-weighted assets), required for capital adequacy $ 442,860 $ 509,705
Total risk-based capital (to risk-weighted assets), required for capital adequacy, ratio 0.080 0.080
v3.25.0.1
REGULATORY CAPITAL REQUIREMENTS - Schedule of Minimum Capital Ratios Plus Capital Conservation Buffer (Details)
Dec. 31, 2024
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]  
Common equity to Tier-1 to risk-weighted assets 0.0700
Tier 1 capital to risk-weighted assets 0.0850
Total capital to risk-weighted assets 0.1050
v3.25.0.1
REGULATORY CAPITAL REQUIREMENTS - Narrative (Details)
Dec. 31, 2024
HomeStreet Bank  
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]  
Capital conservation buffer, actual 0.0502
Parent Company  
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]  
Capital conservation buffer, actual 0.0370
v3.25.0.1
EARNINGS PER SHARE - Schedule of EPS Calculation (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]    
Net income (loss) $ (144,344) $ (27,508)
Weighted average shares:    
Basic weighted-average number of common shares outstanding (in shares) 18,857,392 18,783,005
Dilutive effect of outstanding common stock equivalents (in shares) 0 0
Diluted weighted average number of shares outstanding (in shares) 18,857,392 18,783,005
Net income (loss) per share    
Basic earnings per share (in dollars per share) $ (7.65) $ (1.46)
Diluted earnings per share (in dollars per share) $ (7.65) $ (1.46)
Antidilutive securities 540,354 217,153
v3.25.0.1
LEASES - Narrative (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
Lessee, Operating Sublease, Description [Abstract]  
Remaining lease terms 11 years
2025, sublease payments due to Company $ 2,800
2026, sublease payments due to Company 2,900
2027, sublease payments due to Company 2,700
2028, sublease payments due to Company 69
2029, sublease payments due to Company 29
Lessee, Operating Sublease, Asset, Impairment $ 2,000
v3.25.0.1
LEASES - Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating lease cost $ 7,321 $ 8,103
Finance lease cost:    
Amortization of right-of-use assets 181 425
Interest on lease liabilities 6 8
Variable lease costs and nonlease components 1,633 1,470
Sublease income (649) (1,376)
Total $ 8,492 $ 8,630
v3.25.0.1
LEASES - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases $ 10,421 $ 11,248
Operating cash flows from finance leases 6 8
Financing cash flows from finance leases 168 456
Right-of-use assets obtained    
Operating leases 5,622 2,690
Finance leases $ 0 $ 385
v3.25.0.1
LEASES - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating lease right-of-use assets, included in other assets $ 25,235 $ 27,594
Operating lease, right-of-use asset, statement of financial position Other assets Other assets
Operating lease liabilities, included in accounts payable and other liabilities $ 30,993 $ 35,043
Operating lease, liability, statement of financial position Other liabilities Other liabilities
Finance lease right-of-use assets, included in other assets $ 48 $ 318
Finance lease, right-of-use asset, statement of financial position Other assets Other assets
Finance lease liabilities, included in accounts payable and other liabilities $ 37 $ 288
Finance lease, liability, statement of financial position Other liabilities Other liabilities
Weighted Average Remaining lease term in years    
Operating leases 4 years 3 months 21 days 4 years 5 months 26 days
Finance leases 6 months 29 days 1 year 6 months 29 days
Weighted Average Discount Rate    
Operating leases 1.82% 1.88%
Finance leases 3.50% 3.50%
v3.25.0.1
LEASES - Lease Liability Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Operating Leases    
2025 $ 10,079  
2026 8,721  
2027 7,683  
2028 2,750  
2029 1,678  
2030 and thereafter 2,874  
Total lease payments 33,785  
Less imputed interest 2,792  
Total 30,993 $ 35,043
Finance Leases    
2025 37  
2026 0  
2027 0  
2028 0  
2029 0  
2030 and thereafter 0  
Total lease payments 37  
Less imputed interest 0  
Total 37 $ 288
Nonlease Components    
2025 3,723  
2026 3,785  
2027 3,841  
2028 125  
2029 0  
2030 and thereafter 0  
Total lease payments $ 11,474  
v3.25.0.1
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Maximum number of shares of common stock available for grant under the 2014 EIP (in shares) 1,875,000  
Share-based compensation cost (benefit) $ 3.3 $ 3.1
Performance Stock Units (PSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation vesting period 3 years  
Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation vesting period 3 years  
v3.25.0.1
SHARE-BASED COMPENSATION PLANS - Schedule of Restricted Shares Activity (Details) - Restricted Stock Units (RSUs)
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted shares outstanding, beginning balance (in shares) | shares 230,986
Granted (shares) | shares 417,659
Cancelled or forfeited (shares) | shares (86,505)
Vested (shares) | shares (44,651)
Restricted shares outstanding, ending balance (in shares) | shares 517,489
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares $ 34.08
Granted, weighted average grant date fair value (in dollars per share) | $ / shares 10.79
Cancelled or forfeited, weighted average grant date fair value (in dollars per share) | $ / shares 24.37
Vested, weighted average grant date fair value (in dollars per share) | $ / shares 34.93
Outstanding, weighted average grant date fair value, outstanding, ending balance (in dollars per share) | $ / shares $ 16.83
v3.25.0.1
SHARE-BASED COMPENSATION PLANS - Schedule of Performance Shares Valuation Assumptions (Details) - Performance Stock Units (PSUs)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Volatility of common stock 58.10% 42.70%
Average volatility of peer companies 33.60% 45.00%
Average correlation coefficient of peer companies 0.7527% 0.8029%
Risk-free interest rate 4.00% 4.20%
Expected term in years 3 years 3 years
v3.25.0.1
PARENT COMPANY FINANCIAL STATEMENTS (UNAUDITED) - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Assets:      
Cash and cash equivalents $ 406,600 $ 215,664  
Other assets 290,099 325,351  
Total assets 8,123,698 9,392,450  
Liabilities:      
Other liabilities 88,549 120,919  
Long-term debt 225,131 224,766  
Total liabilities 7,726,701 8,854,063  
Shareholders' Equity:      
Common stock, no par value 233,185 229,889  
Retained earnings 251,013 395,357  
Accumulated other comprehensive income (loss) (87,201) (86,859)  
Total shareholders' equity 396,997 538,387 $ 562,147
Total liabilities and shareholders' equity 8,123,698 9,392,450  
Parent Company      
Assets:      
Cash and cash equivalents 22,855 21,541  
Other assets 5,433 4,515  
Investment in stock of HomeStreet Bank 598,875 737,748  
Investment in stock of other subsidiaries 1,857 1,857  
Total assets 629,020 765,661  
Liabilities:      
Other liabilities 6,892 2,508  
Long-term debt 225,131 224,766  
Total liabilities 232,023 227,274  
Shareholders' Equity:      
Common stock, no par value 233,185 229,889  
Retained earnings 251,013 395,357  
Accumulated other comprehensive income (loss) (87,201) (86,859)  
Total shareholders' equity 396,997 538,387  
Total liabilities and shareholders' equity $ 629,020 $ 765,661  
v3.25.0.1
PARENT COMPANY FINANCIAL STATEMENTS (UNAUDITED) - Condensed Income Statements (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Noninterest Income [Abstract]    
Total revenues $ 11,170 $ 9,779
Expenses    
Interest expense-net (120,087) (166,753)
Noninterest expense 196,214 241,872
Income (loss) before income taxes (120,512) (32,757)
Income taxes (benefit) 23,832 (5,249)
Net income (loss) (144,344) (27,508)
Parent Company    
Noninterest Income [Abstract]    
Dividend income 10,400 39,000
Equity in undistributed income from subsidiaries (141,939) (55,832)
Other noninterest income 2,470 2,085
Total revenues (129,069) (14,747)
Expenses    
Interest expense-net 8,097 8,094
Noninterest expense 11,268 8,176
Total expenses 19,365 16,270
Income (loss) before income taxes (148,434) (31,017)
Income taxes (benefit) (4,090) (3,509)
Net income (loss) $ (144,344) $ (27,508)
v3.25.0.1
PARENT COMPANY FINANCIAL STATEMENTS (UNAUDITED) - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Net Cash Provided by (Used in) Operating Activities [Abstract]    
Net income (loss) $ (144,344) $ (27,508)
Adjustments to reconcile net income (loss) to net cash provided by operating activities    
Net cash provided by (used in) operating activities (45,921) 8,024
Cash flows from investing activities:    
Net cash provided by investing activities 1,333,520 484,048
Cash flows from financing activities:    
Dividends paid on common stock 0 (12,317)
Net cash used in financing activities (1,096,663) (349,236)
Net increase in cash and cash equivalents 190,936 142,836
Cash and cash equivalents, beginning of year 215,664 72,828
Cash and cash equivalents, end of year 406,600 215,664
Parent Company    
Net Cash Provided by (Used in) Operating Activities [Abstract]    
Net income (loss) (144,344) (27,508)
Adjustments to reconcile net income (loss) to net cash provided by operating activities    
Undistributed earnings from investment in subsidiaries 141,939 55,832
Other 3,513 (480)
Net cash provided by (used in) operating activities 1,108 27,844
Cash flows from investing activities:    
AFS securities: Principal collections net of purchases 203 210
Investments in subsidiaries 3 0
Net cash provided by investing activities 206 210
Cash flows from financing activities:    
Repurchases of common stock 0 0
Proceeds from issuance of long-term debt 0 0
Dividends paid on common stock 0 (12,317)
Net cash used in financing activities 0 (12,317)
Net increase in cash and cash equivalents 1,314 15,737
Cash and cash equivalents, beginning of year 21,541 5,804
Cash and cash equivalents, end of year $ 22,855 $ 21,541