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NEW YORK–(BUSINESS WIRE)–The following letter has been sent by Dwight Capital LLC to the Board
of Directors of HomeStreet, Inc. (NASDAQ: HMST) today:

April 29, 2019

Board of Directors
HomeStreet, Inc.
601 Union Street, Suite
2000
Seattle, WA 98101
Attention: Mark K. Mason

Dear Members of the Board:

I am writing on behalf of Dwight Capital to express our interest in
acquiring a subset of HomeStreet’s multifamily mortgage lending
business, which would consist of the Fannie Mae DUS lending operations
and related mortgage servicing rights, at a premium to its fair market
value.

Dwight is a private lender with a national footprint and with offices in
New York City, Cleveland, St. Petersburg, and Washington, D.C. Dwight
has consistently been a top-5 multifamily HUD lender by both
transactions and dollar amount. Dwight also maintains mortgage servicing
rights in excess of $3.25 billion.

This letter itself does not constitute an offer and we seek to engage in
limited and confirmatory due diligence prior to making a formal offer
and executing a binding agreement.

In light of the significance of this letter to your shareholders and
ours, as well as the potential for selective disclosures, our intention
is to release the text of this letter to the public.

Due to the importance of this proposal, we expect the Board to engage in
a full dialogue. My leadership team and I would be happy to make
ourselves available to meet with you and your Board at your earliest
convenience. Depending on the nature of your response, Dwight reserves
the right to pursue all necessary steps to ensure that HomeStreet,
Inc.’s shareholders are provided with the opportunity to realize the
value inherent in our proposal.

We believe that our proposal represents a unique opportunity to create
significant value for HomeStreet’s shareholders and employees. We look
forward to a prompt and favorable reply to engage in discussions. Please
contact us at 347-846-0773 to discuss further.

Sincerely yours,

DWIGHT CAPITAL LLC

By: /s/ Adam Sasouness
Name: Adam
Sasouness
Title: Managing Principal

Address:

Dwight Capital
787 Eleventh Avenue (10th Floor)
New
York, NY 10019

Contacts

Lindsay Morrison
[email protected]
Dwight
Capital