HomeStreet, Inc. Announces Further Extension of Tender Offers for All of Its Outstanding Trust Preferred Securities

SEATTLE--(BUSINESS WIRE)--HomeStreet, Inc., a unitary savings and loan holding company, announced today that it has further extended the expiration date for tender offers that it previously launched for all of the outstanding:

• HomeStreet Statutory Trust I Fixed/Floating Rate Securities (CUSIP No. HST061535),
• HomeStreet Statutory Trust II Fixed/Floating Rate Securities (CUSIP No. HST121535),
• HomeStreet Statutory Trust III Fixed/Floating Rate Securities (CUSIP No. HST031506), and
• HomeStreet Statutory Trust IV Fixed/Floating Rate Securities (CUSIP No. HST061537)

(collectively referred to as the trust preferred securities).

The tender offers, previously scheduled to expire at 5:00 p.m., New York City time, on August 30, 2010, will now expire at 5:00 p.m., New York City time, on Friday, October 29, 2010, unless further extended or terminated. Except for the extension described above, all terms and conditions of the tender offers are unchanged and remain in full force and effect.

Pursuant to the tender offers, HomeStreet is offering to purchase all of the outstanding trust preferred securities, for cash, for an amount equal to $200 per $1,000 liquidation amount outstanding. No accrued and unpaid distributions on the trust preferred securities will be paid. Tendered trust preferred securities may not be withdrawn once they have been tendered in the tender offers. As of December 18, 2009, the date the tender offers were commenced, there was approximately $60 million aggregate liquidation amount of trust preferred securities outstanding. HomeStreet is simultaneously soliciting consents from the tendering holders of trust preferred securities to amend or remove certain provisions to the declarations of trust of the trusts that issued the trust preferred securities, the guarantees related thereto and the indentures for the junior subordinated notes issued by HomeStreet to those trusts in connection with the issuance of the trust preferred securities.

The tender offers are conditioned on 100% of the aggregate liquidation amount outstanding of each series of trust preferred securities being tendered and are subject to the other conditions described in the offer to purchase, including the completion of a financing transaction by HomeStreet sufficient both to purchase the trust preferred securities that are validly tendered and to satisfy its other regulatory capital requirements.

HomeStreet is conducting the tender offers in order to reduce the amount of its outstanding indebtedness. Furthermore, HomeStreet believes that the tender offers provide an opportunity to holders of the trust preferred securities to gain liquidity with respect to the trust preferred securities that they may not otherwise have.

The dealer manager, information agent and solicitation agent for the tender offers is Hexagon Securities LLC. The depositary is Wilmington Trust Company. The offer to purchase, letter of transmittal and related documents have been distributed to all registered holders of HomeStreet’s trust preferred securities. Holders of the trust preferred securities who have questions or would like additional copies of the tender offer documents may call the information agent at [phone].

While HomeStreet’s board of directors has approved the making of the tender offers and the related consent solicitation, none of HomeStreet, its board of directors, Hexagon Securities LLC, or Wilmington Trust Company makes any recommendation as to whether or not holders should tender their trust preferred securities and provide their consents. Each holder must make its own decision as to whether to tender its trust preferred securities and provide its consent, and, if so, the liquidation amount of the trust preferred securities as to which action is to be taken. In doing so, holders of trust preferred securities should carefully evaluate all of the information in the offer to purchase and consent solicitation statement and the related letter of transmittal before making any decision with respect to the tender offers and should consult their own investment and tax advisors. HomeStreet has not authorized any person to make any recommendation with respect to the tender offers.

About HomeStreet, Inc.

HomeStreet, Inc. of Seattle, Wash. is the bank holding company for HomeStreet Bank, a state-chartered, federally insured savings bank with a strong focus on single-family mortgage originations. HomeStreet Bank offers consumer and business banking and lending products and services through 30 offices in Washington, Oregon and Hawaii. Additional information on HomeStreet Bank can be found at www.homestreet.com.

Forward-Looking Statements

Forward-looking statements in this press release, including those statements relating to the tender offers, such as the scheduled expiration date, the completion of financing and the repurchase of the trust preferred securities, are based on current expectations. These statements are not guarantees of future events or results. Future events and results involve some risks, uncertainties and assumptions that are difficult to predict. Actual events and results could vary materially from the description contained herein due to many factors, including, but not limited to, changes in the market and price for HomeStreet’s securities; changes in HomeStreet’s business and financial condition; changes in the debt and equity markets in general; and the occurrence of events specified in the offer to purchase that would trigger a condition permitting termination or amendment of the tender offers. HomeStreet disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.

Tender Offer Statement

This press release is for informational purposes only and is neither an offer to buy nor the solicitation of an offer to sell, any securities. The full details of the tender offers, including complete instructions on how to tender the trust preferred securities, are included in the offer to purchase and consent solicitation statement, the letter of transmittal and related materials, which have been distributed to holders of HomeStreet’s trust preferred securities. Holders of trust preferred securities should read carefully the offer to purchase and consent solicitation statement, the letter of transmittal and other related materials because they contain important information. Holders of trust preferred securities may obtain free copies of the offer to purchase and consent solicitation statement, the letter of transmittal and other related materials, free of charge, from Hexagon Securities LLC, the dealer manager, information agent and solicitation agent for the tender offers.