HomeStreet : Fourth Quarter Investor Presentation

4th Quarter 2020

as of January 25, 2021

Important Disclosures

Forward-Looking Statements

This presentation includes forward-looking statements, as that term is defined for purposes of applicable securities laws, about our industry, our future financial performance, business plans and expectations. These statements are, in essence, attempts to anticipate or forecast future events, and thus subject to many risks and uncertainties. These forward-looking statements are based on our management's current expectations, beliefs, projections, and related to future plans and strategies, anticipated events, outcomes, or trends, and are not historical facts, as well as a number of assumptions concerning future events, and are identified by words such a "will," "may," "could," "should," "would," "believe," "expect," anticipate" and similar expressions. Forward-looking statements in this presentation include, among other matters, statements regarding our business plans and strategies, general economic trends, strategic initiatives we have announced, including forecasted reductions in the Company's cost structure and future run rates, growth scenarios and performance targets. Readers should note, however, that all statements in this presentation other than assertions of historical fact are forward-looking in nature. These statements are subject to risks, uncertainties, assumptions and other important factors set forth in our SEC filings, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2019, and in our subsequently quarterly reports on Form 10-Q and Forms 8-K. Many of these factors and events that affect the volatility in our stock price and shareholders' response to those events and factors are beyond our control. Such factors could cause actual results to differ materially from the results discussed or implied in the forward-looking statements. These risks include, without limitation, changes in general political and economic conditions that impact our markets and our business, actions by the Federal Reserve Board and financial market conditions that affect monetary and fiscal policy, regulatory and legislative findings or actions that may increase capital requirements or otherwise constrain our ability to do business, including restrictions that could be imposed by our regulators on certain aspects of our operations or on our growth initiatives and acquisition activities, risks related to our ability to: retain adequate key personnel to operate our business, realize the expected cost savings from restructuring activities and cost containment measures that we have undertaken or have announced, continue to expand our commercial and consumer banking operations, grow our franchise and capitalize on market opportunities, cost-effectively manage our overall growth efforts to attain the desired operational and financial outcomes, manage the losses inherent in our loan portfolio, assess the novelty of the recently adopted "Current Expected Credit Losses," or CECL, accounting standard which replaced the "Allowance for Loan and Lease Losses" accounting standard coupled with our relative inexperience with the newer standard, improve long-term shareholder value through effective use of our surplus capital, make accurate estimates of the value of our non-cash assets and liabilities, maintain electronic and physical security of customer data, respond to our restrictive and complex regulatory environment and effectively respond to the changes in the global, national, state and local markets caused by or related to the COVID-19 pandemic and the success of mitigation measures, including vaccine programs. Actual results may fall materially short of our expectations and projections, and we may be unable to execute on our strategic initiatives, or we may change our plans or take additional actions that differ in material ways from our current intentions. Accordingly, we can give no assurance of future performance, and you should not rely unduly on forward-looking statements. All forward-looking statements are based on information available to us as of the date hereof, and we do not undertake to update or revise any forward-looking statements for any reason.

Basis of Presentation of Financial Data

Unless noted otherwise in this presentation, all reported financial data is being presented as of the period ending December 31, 2020, and is unaudited, although certain information related to the year ended December 31, 2019, has been derived from our audited financial statements. All financial data should be read in conjunction with the notes in our consolidated financial statements.

Non-GAAP Financial Measures

Information on any non-GAAP financial measures such as core measures or tangible measures referenced in this presentation, including a reconciliation of those measures to GAAP measures, may also be found in the appendix, our SEC filings, and in the earnings release available on our web site.

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Highlights and Developments

Quarterly Results

• Net income of $27.6 million, or $1.25 per share
• • ROE of 15.3%, ROTCE of 16.2%(1) and ROAA of 1.47%
• Core net income of $32.4 million, or $1.47 per share
• • Core ROTCE of 19.0% (1) and Core ROAA of 1.73%
• Core pre-provision income before income taxes of $41.4 million (1)
• Efficiency ratio of 56.1%(1)
• Net interest margin increased to 3.26%
• Period ending cost of deposits of 0.29% on December 31, 2020
• Total noninterest bearing deposits 23.0% of total deposits
• Tangible book value of $31.42 on December 31, 2020

Strategic Actions

1. • Repurchased a total of 209,820 shares in October at an average price of $28.93 per share, completing the most recent $25 million share repurchase authorization
   • Executed an amendment to our contract with our core systems vendor, effective January 2021
   • Recognized a $6.1 million charge related to our Seattle headquarters
   • Due to our strong financial results for the quarter, and our strong capital and liquidity positions, management has recommended and we anticipate that the Board of Directors will, at the January 28, 2021 meeting, approve a further expansion of our share repurchase program and an increase in our quarterly dividend
2. See appendix for reconciliation of non-GAAP financial measures.

HomeStreet reported strong results in the fourth quarter of 2020, concluding a year in which, notwithstanding the challenges presented by the global pandemic, we benefited from our diversified business model, our conservatively underwritten loan portfolio and the steadfast commitment of our employees

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Nasdaq: HMST

Focus on profitability and efficiency while emerging as a

leading western regional bank

• Seattle-baseddiversified commercial & consumer bank - company founded in 1921
• Serving customers throughout the western United States
• 67 bank branches and primary offices
• Total assets $7.2 billion

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