HomeStreet Bank Completes Purchase of AmericanWest Bank’s Dayton, Washington Branch

SEATTLE–(BUSINESS WIRE)–HomeStreet Bank and its parent company, HomeStreet, Inc. (NASDAQ:HMST),
announced today the completion of its previously announced purchase of a
retail-deposit branch and certain related assets from Banner Bank, which
recently acquired AmericanWest Bank.

The branch, located in Dayton, Washington, adds approximately $25.7
million in deposits and $4.6 million in loans, and increases the bank’s
retail deposit branch network to 44 in Washington, Oregon, California
and Hawaii. The new branch expands HomeStreet’s footprint in Eastern
Washington and will today begin operating as a HomeStreet Bank branch.

“We are happy to welcome the Dayton Branch to our network of branches in
Eastern Washington,” said Mark Mason, HomeStreet president and CEO. “The
branch staff members have excelled in providing quality customer service
to meet the financial needs of the community, and we look forward to
continuing and enhancing those relationships in Dayton and the
surrounding communities.”

In addition to retail bank branches, including five in Eastern
Washington, HomeStreet also operates mortgage loan, residential
construction and commercial lending offices in the Western United States.

About HomeStreet, Inc.

Now in its 95th year HomeStreet, Inc. (NASDAQ:HMST) is a diversified
financial services company headquartered in Seattle, Washington and is
the holding company for HomeStreet Bank, a state-chartered, FDIC-insured
savings bank. HomeStreet offers consumer, commercial and private banking
services and investment and insurance products in Washington, Oregon and
Hawaii, and originates residential and commercial mortgages and
construction loans for borrowers located in the Western United States.
The bank has consistently received an “outstanding” rating under the
federal Community Reinvestment Act (CRA). Additional information on
HomeStreet Bank can be found at www.homestreet.com.

Forward-Looking Statements

This press release contains forward-looking statements concerning
HomeStreet, Inc. and HomeStreet Bank and their operations, performance,
financial conditions and likelihood of success. All statements other
than statements of historical fact are forward-looking statements. In
particular, statements about the timing and likelihood of the
consummation of the acquisition and the successful integration of their
employees and customers are forward looking in nature. 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 banking industry. Such statements involve
inherent risks and uncertainties, many of which are difficult to predict
and are generally beyond HomeStreet’s control. 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. We
caution readers that a number of factors could cause actual results to
differ materially from those expressed in, implied or projected by, such
forward-looking statements. Among other things, our ability to obtain
regulatory approval and our ability to retain the assets and customers
related to these branch acquisitions, and our ability to realize the
benefits expected from these transactions, may be limited due to future
risks and uncertainties including, but not limited to, changes in
general economic conditions that impact our markets and our business,
actions by the Federal Reserve affecting monetary and fiscal policy,
regulatory and legislative actions that may constrain our ability to do
business, and the competitive environment. A discussion of the factors
that we recognize to pose risk to the achievement of our business goals
and our operational and financial objectives more generally is contained
in our Annual Report on Form 10-K for the fiscal year ended December 31,
2014. These factors are updated from time to time in our filings with
the Securities and Exchange Commission, and readers of this release are
cautioned to review those disclosures in conjunction with the
discussions herein.

Contacts

HomeStreet Bank
Michael Rubbinaccio, 206-389-4433
michael.rubbinaccio@homestreet.com
www.homestreet.com/newsroom