10 Worst Performing Bank Stocks in 2024

8. HomeStreet, Inc. (NASDAQ:HMST)

Price: $10.33

Number of Hedge Fund Holders: 12

1-Year Price Performance: -21.08%

HomeStreet, Inc. (NASDAQ:HMST) provides commercial, retail, and mortgage banking services to individuals and businesses. The bank also offers loans for commercial properties, multifamily housing, construction projects, and land development. It operates on the West Coast of the United States and in Hawaii.

The bank has been facing significant challenges due to its alleviated commercial real estate loan. Over the past two years HomeStreet, Inc. (NASDAQ:HMST) has missed EPS expectations 6 times and revenue expectations 7 times, resulting in the stock price falling by around 21% during the past 12 months. On January 31, Keefe Bruyette lowered its price target on the stock from $12.5 to $12, while keeping its Market performance rating on the stock. The firm believes the latest fiscal fourth-quarter results in 2024 were noisy.

Considering the high commercial real estate loan portfolio of the bank, management during the quarter implemented a strategic sale of $990 in multifamily loans. The sale was conducted at a discount of 8.54%, thereby adding some financial stability for the bank. Management noted that the proceeds from the sale will be used to pay off expensive debt including Federal Home Loan Bank which has a higher interest average. HomeStreet, Inc. (NASDAQ:HMST) is confident to return to profitability by the first half of 2025 due to the strategic repositioning of its balance sheet. It is one of the worst-performing bank stocks in 2024.