Final Closing with Homebridge Expected Prior to the End of June, 2019

SEATTLE–(BUSINESS WIRE)–HomeStreet, Inc. (Nasdaq: HMST) or (“HomeStreet”), the parent company of
HomeStreet Bank (the “Bank”), today announced the initial closing of the
sale of assets and transfer of offices and personnel to Homebridge
Financial Services, Inc. (“Homebridge”). As part of the initial closing
30 stand-alone, satellite, and fulfillment offices related to the Bank’s
home loan center-based single family mortgage origination business, have
been transferred to Homebridge. In addition, approximately 342 former
HomeStreet single family origination and support personnel have been
hired as employees of Homebridge.

“The first closing constituted most of the offices and personnel
transferring to Homebridge and represents a significant milestone in
this transaction,” said Mark K. Mason, HomeStreet Chairman, President,
and CEO. “We expect to have a second closing, which will consist of
fewer offices and personnel and we remain confident that it can be
completed prior to June 30, 2019. I would like to thank those employees
who are part of this transaction for their hard work and wish them well
with their careers at Homebridge, along with those HomeStreet employees
who worked so hard to make the transition as smooth as possible.”

Speaking on behalf of the mortgage team moving to Homebridge, Rose Marie
David, the EVP, Director of Mortgage Lending at HomeStreet, who will
join Homebridge as EVP, Divisional Manager, Northwest later this month,
said, “We are excited to bring together our high performing retail
mortgage teams. We feel a deep alignment with the Homebridge vision and
overall sense of purpose. We look forward to the opportunity to carry on
our legacy as part of the Homebridge family.”

HomeStreet was advised in the transaction by Keefe, Bruyette & Woods, A
Stifel Company
as financial advisor and Mayer Brown LLP and Davis
Wright Tremaine LLP as legal counsel.

Forward-Looking Statements

This press release contains forward-looking statements concerning
HomeStreet, Inc. and HomeStreet Bank, and their operations, performance
and likelihood of success. All statements other than statements of
historical fact are forward-looking statements. In particular, certain
statements in this release are both forward looking and subject to
factors outside of our control, including market conditions, regulatory
decisions and the actions of third parties, that may impact our ability
to meet our expectations. This includes statements about our ability to
complete a further closing of our asset sale to Homebridge.
Forward-looking statements are based on many beliefs, assumptions,
estimates and expectations of our future performance, taking into
account information currently available to us, and include statements
about the competitiveness of the financial services industry. Such
statements involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond HomeStreet’s control. You
should consider, among other things, the risk factors included in our
periodic reports filed with the Securities and Exchange Commission,
including but not limited to our most recent Quarterly Report on Form
10-Q for the quarter ended March 31, 2019. Forward-looking statements
speak only as of the date made, and we do not undertake to update them
to reflect changes or events that occur after that date.

About HomeStreet, Inc.

HomeStreet, Inc. (Nasdaq:HMST) (the “Company”) is a diversified
financial services company headquartered in Seattle, Washington, serving
consumers and businesses in the Western United States and Hawaii through
its various operating subsidiaries. The Company’s primary business is
community banking, including: commercial real estate lending, commercial
lending, residential construction lending, single family residential
lending, retail banking, private banking, investment, and insurance
services. Its principal subsidiaries are HomeStreet Bank and HomeStreet
Capital Corporation. Certain information about our business can be found
on our investor relations web site, located at http://ir.homestreet.com.

Important Additional Information and Where to Find It

The Company has filed a definitive proxy statement on Schedule 14A and
accompanying WHITE proxy card with
the Securities and Exchange Commission (the “SEC”) in connection with
the solicitation of proxies for its 2019 Annual Meeting of Shareholders.
SHAREHOLDERS ARE STRONGLY ADVISED TO READ THE COMPANY’S DEFINITIVE PROXY
STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY
OTHER DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free
copy of the proxy statement and accompanying WHITE
proxy card, any amendments or supplements to the proxy statement and
other documents that the Company files with the SEC from the SEC’s
website at www.sec.gov
or the Company’s website at http://ir.homestreet.com as soon as
reasonably practicable after such materials are electronically filed
with, or furnished to, the SEC.

Contacts

HomeStreet, Inc.
Investor Relations:
Gerhard
Erdelji, 206-515-4039
[email protected]
or
Media
Relations:

Michael Brandt, 206-876-5506
[email protected]

ir.homestreet.com/news