Market Overview

HomeStreet Sends Letter to Shareholders

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All Three Proxy Advisory Firms Recommend Shareholders Re-Elect
Chairman and CEO Mark Mason, Lead Independent Director Donald Voss and
Independent Director Sandra Cavanaugh to the Board

HomeStreet's Nominees are Essential Members of the Board who Have
Made Major Contributions to Company's Shareholder Engagement Program and
Corporate Governance Enhancements

Vote on the WHITE Proxy Card
Today to Protect Your Investment

The Board of Directors (the "Board") of HomeStreet, Inc. (NASDAQ:HMST)
(the "Company" or "HomeStreet"), the parent company of HomeStreet Bank,
today sent a letter to shareholders in connection with the Company's
upcoming 2019 Annual Meeting of Shareholders scheduled for June 20, 2019
(the "2019 Annual Meeting").

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20190613005740/en/

(Graphic: Business Wire)

(Graphic: Business Wire)

For additional information and shareholder materials please visit www.VoteHMST.com.

The full text of the letter follows:

June 13, 2019

Dear Fellow Shareholders,

HomeStreet's 2019 Annual Meeting is quickly approaching, and we are
writing today to make sure you have cast your votes and participated in
this important election. As you make your final decision, we ask that
you consider the following points:

  • All three proxy advisory firms have recommended that shareholders
    vote FOR all three of HomeStreet's Board nominees
    and have clearly
    rejected the nominees put forth by Roaring Blue Lion Capital
    Management, L.P. ("Roaring Blue Lion"), the activist hedge fund that
    is waging its second proxy contest against the Company.
  • The three HomeStreet directors up for election at the Annual Meeting –
    Sandra A. Cavanaugh, Chairman and CEO Mark K. Mason and Lead
    Independent Director Donald R. Voss – are vital members of the
    Board and their removal would be highly disruptive to the Company's
    continued success
    .
  • It is time to put this proxy contest behind us and get on with
    running the business
    . The fact that our stock price has
    appreciated 45%1 since the start of 2019 indicates that we
    are on the right strategic trajectory and we must focus on continuing
    to execute.

Leading Proxy Advisory Firms Support Election
of HomeStreet's Nominees

Institutional Shareholder Services Inc. ("ISS"), Glass, Lewis & Co
("Glass Lewis") and Egan-Jones Proxy Services ("Egan Jones") have
recommended that shareholders vote FOR each of HomeStreet's
highly-qualified director nominees. Each of the firms also explicitly
rebuffed Roaring Blue Lion's nominees and its attempt to make a case for
change.

These recommendations underscore that HomeStreet has a well-functioning
Board that is focused on acting on shareholder feedback and is
thoughtful about driving long-term value creation.

In its report, Glass Lewis stated:2

  • "Overall, we believe HomeStreet has demonstrated that it has a
    strong board that has presided over long-term shareholder value
    creation and is responsive to changing industry conditions and
    shareholder concerns
    ."
  • "[W]e find that the Dissident has not made a
    compelling case for change at the Company
    and that support for
    the incumbent board and the Management Nominees is warranted. In
    arriving at this determination, we found that the Company has
    generated total shareholder returns that are acceptable relative to
    industry peers, that the Company appears to be
    taking reasonable actions to adjust strategic direction in response to
    market conditions
    and that the board appears responsive to
    shareholders and has taken a number of recent
    steps to improve corporate governance
    ."

In its report, ISS stated:

  • "On balance, particularly in light of the changes that have been
    implemented since the last meeting, the
    dissident has not demonstrated that additional board change is
    necessary at this time
    ."
  • "As such, votes FOR the management nominees on
    the WHITE card are warranted
    ."

In its report, Egan Jones stated:

  • "We commend the Company's initiatives to improve
    its corporate governance structure
    by declassification of the
    Board, increasing share ownership requirement and removal of
    supermajority voting requirements, to name a few. We believe that
    these steps demonstrate the Company's willingness and commitment to
    improve shareholder accountability and oversight."
  • "Finally, we are not compelled with the arguments raised by the
    dissident shareholders, rather, in our view, the
    proxy contest would disrupt HomeStreet's realization of its strategy
    that will benefit the shareholders in the long-run
    ."

As you make your voting decisions, we also urge you to vote in
accordance with the Company's recommendations on two important proposals:

  • Vote FOR the Proposal to make Washington State the Exclusive Forum
    for Actions against the Company
    (Proposal #4)
    • HomeStreet is incorporated under Washington law, and Washington
      State is where we are headquartered and the majority of our
      operations are located, as well as our regulators.
    • Therefore, we do not think it would make sense if any court other
      than a Washington court would attempt to interpret Washington law.
    • Further, this provision will help our bottom-line by allowing us
      to better manage litigation expenses and reduce litigation
      uncertainty in the future because it will prevent multi-forum
      litigation.
    • We do not believe that there is compelling support for the idea
      that our shareholders would be disadvantaged by bringing claims in
      courts located in Washington State.
  • Vote AGAINST Roaring Blue Lion's proposal to split the Chairman and
    CEO roles
    (Proposal #8)
    • One of the Chairman's main roles is to lead the strategic
      direction of the Company. The Board felt that it was important to
      have such strategic leadership involved in the day-to-day
      functions at the Company at this point in time, which is one of
      the reasons we asked Mark Mason to be Chairman.
    • Independent oversight is paramount, which is why we have a strong
      Lead Independent Director position. In fact, we updated our bylaws
      in July 2018 to clearly define the role and responsibilities of
      our Lead Independent Director.
    • In our view, it is important that Mark Mason remain as Chairman
      and CEO as we continue executing on an important transformation
      that is already creating value for shareholders – especially given
      Mr. Mason's initiation and leadership of HomeStreet's strategic
      shift to exit the large-scale home loan center-based mortgage
      banking business.

The Three Company Directors up for Election are
Indispensable Members of the Board

Sandra A. Cavanaugh – Independent Director: Proven track
record of developing, launching and turning around large, complex
businesses and product portfolios to produce long-term, sustainable
profitability

  • Appointed to the Board in May 2018. Currently the Chair of the
    Enterprise Risk Management Committee and serves on the Human Resources
    and Corporate Governance Committee (the "HRCG Committee")
  • 30+ years serving as a senior level executive in the financial
    services, banking, and mutual fund industries. Previous positions
    include:
    • Chief Executive Officer and President of U.S. Private Client
      Services at Russell Investments overseeing its $45 billion mutual
      fund business in U.S.
    • Executive Vice President at SunTrust Bank in 2009
    • Senior Executive at Washington Mutual / JP Morgan Chase from 2007
      to 2009
    • President of WM Funds Distributor and Shareholder Services from
      1997 to 2007
    • Various senior positions with AIM Mutual Funds, First Interstate
      Bank, and American Savings Bank

Mark K. Mason – Chairman, CEO & President: Successful
track record creating shareholder value at HomeStreet, including
executing growth and diversification strategies, raising capital,
addressing portfolio and operational challenges and effectively working
with shareholders

  • Since being appointed Chief Executive Officer and Director in January
    2010 and Chairman in March 2015, Mr. Mason has led HomeStreet through
    its significant evolution
  • Accomplishments as HomeStreet's CEO include:
    • Led the turnaround of HomeStreet following the 2008-2009
      recession, recapitalizing the bank through an initial public
      offering and returning it to profitability
    • Successfully created and executed a growth and diversification
      strategy away from single-family mortgage banking while converting
      the institution from a thrift to a full-service commercial bank
    • Established or substantially grew lines of business, including:
      commercial lending and cash management, small balance commercial
      real estate lending, residential construction lending and consumer
      product

Donald R. Voss – Lead Independent Director: Provides
independent leadership to HomeStreet's directors and oversight of
management with the goal of maximizing shareholder value

  • Appointed Lead Independent Director in July 2018, independent director
    since March 2015 and serves on the Audit, Executive and the Enterprise
    Risk Management Committees
  • Extensive independent boardroom experience serving on public company
    boards as well as city governance boards, including:
    • Elected to the board of Simplicity Bancorp in December 2001;
      elected Independent Chairman in October 2013; served on the audit
      committee from 2011 to March 2015 and oversaw the sale of
      Simplicity Bancorp to HomeStreet in March 2015
    • Current member of the board of trustees and the executive board
      and serves as chair of the Planning Committee of Descanso Gardens
      Guild, Inc.
    • Elected council member of the City of La Cañada Flintridge from
      2006 to 2015, and served as its mayor from 2010 to 2011
  • Over 25+ years of experience as a commercial banking and financial
    expert

It is Time to Move Forward and Continue
Executing on HomeStreet's Strategic Plan

Important work lies ahead as we continue to execute on our strategic
plan that has produced positive results. Progress is already underway as
we successfully transform HomeStreet into a leading West Coast regional
commercial bank.

Earlier this year, we announced our decision to sell a significant
portion of our mortgage origination and servicing operations. On April
4, 2019, HomeStreet entered an agreement to sell assets related to its
home loan center-based single-family mortgage origination business to
HomeBridge Financial Services, Inc., as well as the sale of a majority
of its mortgage servicing rights portfolio. Then, on June 6th,
we announced the initial closing of the sale of assets and transfer of
offices and personnel to Homebridge Financial Services, Inc.

Following the discontinuation of our Mortgage Banking Segment, we are
now focused on corporate-wide efficiency improvements to build on our
success with the Commercial & Consumer Bank.

Now, with the 2019 Annual Meeting quickly approaching, we ask for your
support to continue to move forward to pursue the many opportunities
available to HomeStreet. As our stock price indicates, this strategic
plan is already bearing positive fruit.

As this proxy contest comes to a close, we ask you, our shareholders, to
make the right decision to position our Company for lasting success.
Donald R. Voss, as Lead Independent Director, and Mark K. Mason, as
Chairman and CEO, are essential members of the Board and play major
roles when it comes to strategy, execution and shareholder engagement.
Roaring Blue Lion's remaining nominee, Mr. Ronald Tanemura, would not
bring any experience or expertise that would be additive to the optimal
mix of banking industry, investing, risk management and leadership
experience that the Board currently possesses. Furthermore, Mr. Tanemura
sits on a public company board which is classified and whose CEO and
Chairman are the same individual, while at the same time Roaring Blue
Lion is criticizing HomeStreet for these same items.

Vote for the Company's nominees on the WHITE
proxy card today.

Sincerely,

The Board of Directors of HomeStreet, Inc.

###

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.

Forward-Looking Statements

This letter, as well as other information provided from time to time by
the Company or its employees, may contain forward-looking statements
that involve risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking
statements. Forward-looking statements give the Company's current
beliefs, expectations and intentions regarding future events. You can
identify forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may include
words such as "anticipate," "believe," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "should," "will" and "would" and
similar expressions (including the negative of these terms). These
forward-looking statements involve risks, uncertainties (some of which
are beyond the Company's control) and assumptions. Although we believe
that expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance or achievements. The Company intends these forward-looking
statements to speak only at the time of this letter and the Company does
not undertake to update or revise these statements as more information
becomes available, except as required under federal securities laws and
the rules and regulations of the SEC. Please refer to the risk factors
discussed in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2018 and subsequent periodic and current reports
filed with the SEC (each of which can be found at the SEC's website www.sec.gov),
as well as other factors described from time to time in the Company's
filings with the SEC. Any forward-looking statement made by the Company
in this letter speaks only as of the date on which it is made.

______________

1 Year-to-date return as of June 11, 2019. Sources:
Bloomberg Finance LP and S&P Global.

2 Permission to quote Glass Lewis, ISS and Egan Jones
was neither sought nor obtained. Emphasis added.

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