HomeStreet Announces Conclusion of Director Search Process and Planned Addition of Sandra Cavanaugh to Board of Directors

Ms. Cavanaugh will bring extensive investment management and further
banking sector operational experience to the Board

Expected to be appointed at the next regular Board meeting on May 24,
2018

SEATTLE–(BUSINESS WIRE)–HomeStreet, Inc. (NASDAQ:HMST) (the “Company” or “HomeStreet”), the
parent company of HomeStreet Bank (the “Bank”), today announced that the
Human Resources and Corporate Governance Committee (“HRCG Committee”) of
the Board of Directors (“the Board”) has completed its previously
announced search for an additional director and has identified Sandra
Cavanaugh for appointment to the Board. Ms. Cavanaugh is expected to be
appointed as a director of both the Company and the Bank at the next
regularly scheduled joint Board meeting on May 24, 2018.

Ms. Cavanaugh formerly served as CEO and President of U.S. Private
Client Services at Russell Investments (“Russell”). At Russell, Ms.
Cavanaugh was responsible for all advisor sold business within the U.S.
and oversaw the firm’s $45 billion mutual fund business. Prior to her
time there, she served as an Executive Vice President at SunTrust Bank
and held senior executive positions with Washington Mutual, including as
president of two of their subsidiaries, WM Financial Services and WM
Funds Distributor and Shareholder Services, in addition to numerous
other banking and mutual fund management roles over the course of her
career. Ms. Cavanaugh currently provides financial consulting services
after retiring from Russell.

“We are excited to be adding Sandra to our board, and are confident that
she will bring valuable insight and experience from her time as a senior
executive in the asset management/mutual fund industry, as well as from
her decades of leadership and operational experience in the banking
sector,” said Scott M. Boggs, Lead Independent Director of HomeStreet.
“We are committed to ensuring that our Board has the optimal level of
diversity, mix of skill sets and leadership experience as we seek to
continue evolving our business to deliver value for all shareholders.
The addition of Ms. Cavanaugh should further our ability to achieve
these goals.”

As previously announced in January 2018, the HRCG Committee has
conducted a thorough search for a candidate who meets the stated
diversity goals set out in the Company’s Principles of Corporate
Governance, republished in October of 2017. Ms. Cavanaugh was identified
by an external executive recruitment firm during this process.

“I look forward to joining the Board of HomeStreet and being able to
provide additional investor perspective to help inform the strategic
planning and decision making at the Company,” said Sandra Cavanaugh.
“HomeStreet is a company that is undergoing a unique transformation, and
I believe that my experience aligns well with the course the Company is
charting – particularly as it further expands its business mix.”

About HomeStreet, Inc.

HomeStreet, Inc. (Nasdaq:HMST) 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 operates two primary business
segments: Mortgage Banking, which originates and purchases single family
residential mortgage loans, primarily for sale into secondary markets;
and Commercial & Consumer Banking, including commercial real estate,
commercial lending, residential construction 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.

Contacts

HomeStreet, Inc.
Investor Relations:
Gerhard
Erdelji, 206-515-4039
gerhard.erdelji@homestreet.com
or
Okapi
Partners LLC
Bruce H. Goldfarb/Pat McHugh, 877-566-1922
info@okapipartners.com
or
Media
Relations:

Sloane & Company
Dan Zacchei/Joe Germani,
212-486-9500
Dzacchei@sloanepr.com
/ Jgermani@sloanepr.com