HomeStreet Reports Year End and Fourth Quarter 2021 Results

Fourth Quarter 2021

Fully diluted EPS $1.43 ROAE: 16.1% ROATE: 17.0% ROAA: 1.59%

Full Year 2021

Fully diluted EPS $5.46 ROAE: 15.9% ROATE: 16.8% ROAA: 1.58%

SEATTLE – January 24, 2022 – (BUSINESS WIRE) – HomeStreet, Inc. (Nasdaq:HMST) (including its consolidated subsidiaries, the "Company" or "HomeStreet"), the parent company of HomeStreet Bank, today announced the financial results for the quarter and year ended December 31, 2021. As we present non-GAAP measures in this release, the reader should refer to the non-GAAP reconciliations set forth below under the section “Non-GAAP Financial Measures.”

“In 2021, which was our 100th anniversary, HomeStreet reported earnings in excess of $100 million for the first time ever. Our record earnings of $115 million were driven by record loan originations, strong core deposit growth and the benefits of our past efficiency and profitability improvement initiatives” said Mark K. Mason, HomeStreet’s Chairman of the Board, President, and Chief Executive Officer. “Portfolio loan originations totaled $3.3 billion in 2021 and noninterest-bearing deposits increased 21%. As reflected in our stable efficiency ratio year over year, we believe the strategic changes we implemented in prior years, including the restructuring of our single family mortgage business, have provided meaningful operating leverage and more consistent and less volatile earnings. We anticipate continuing improvements as our operating leverage should provide us the opportunity to grow revenues without commensurate additions to personnel or other operating expenses. Finally, I want to thank all of our employees for their great work this year which has allowed HomeStreet to be so successful in spite of the ongoing challenges of the pandemic.”

 Fourth Quarter Operating Results                   Fourth quarter 2021 compared to third quarter 2021 •Net income: $29.4 million compared to $27.2 million •Earnings per fully diluted share: $1.43 compared to $1.31 •Net interest margin: 3.34% compared to 3.42% •Return on Average Equity ('ROAE"): 16.1% compared to 14.8% •Return on Average Tangible Equity ("ROATE"): 17.0% compared to 15.6% •Return on average assets ("ROAA"): 1.59% compared to 1.48% •Efficiency ratio: 62.2% compared to 62.8%

1

Full Year Operating Results 2021 compared to 2020 •Net income: $115.4 million compared to $80.0 million •Core net income: $115.4 million compared to $88.8 million •Earnings per fully diluted share: $5.46 compared to $3.47 •Core earnings per fully diluted share: $5.46 compared to $3.85 •Net interest margin: 3.38% compared to 3.13% •ROAE: 15.9% compared to 11.3% •ROATE: 16.8% compared to 12.1% •Core ROATE: 16.8% compared to 13.4% •ROAA: 1.58% compared to 1.10% •Core ROAA: 1.58% compared to 1.23% •Efficiency Ratio: 61.9% compared to 61.4%

Financial Position						Fourth quarter 2021 compared to third quarter 2021 •Loan portfolio originations: $795 million in the fourth quarter •Single family loans held for sale originations: $361 million, a 13% decrease •Commercial and consumer noninterest-bearing deposits decreased 5% •Period ending cost of deposits: 0.15%, unchanged •Tangible book value per share: $34.04 compared to $33.18
						2021 Activity •Loan portfolio originations: $3.3 billion •Single family loans held for sale originations: $2.0 billion •Commercial and consumer noninterest-bearing deposits increased 21% •Tangible book value per share increased from $31.42 to $34.04

“Loan origination levels remained strong with $795 million of loan originations in the current quarter and $3.3 billion in 2021,” added Mr. Mason. “Excluding the impact of the Paycheck Protection Program ("PPP") loans, and despite continuing high levels of prepayments, our loans held for investment grew 11% during 2021. During the fourth quarter, we completed a $244 million sale of permanent multifamily loans, realizing a net gain of 2.73%. Total deposits increased by 6% during 2021 and noninterest bearing deposits increased to 26% of total deposits. We recognized $6 million and $15 million of recoveries of pandemic related allowance for credit losses in the fourth quarter and in 2021, respectively. As we continue to have more clarity of the minimal impact COVID is having on our loan portfolio, and with projected improvements in our economies and anticipated changes in the composition of our loan portfolio, we expect to recover additional amounts of our allowance for credit losses in future periods.”

Other •Completed $100 million subordinated notes offering in January 2022 •Repurchased a total of 374,320 shares of our common stock at an average price of $51.17 per share during the fourth quarter •Repurchased 1,873,294 shares at an average price of $44.92 per share during 2021, representing 8.6% of the outstanding shares at December 31, 2020 •Declared and paid a cash dividend of $0.25 per share in the fourth quarter

Mr. Mason concluded “With the completion of our $100 million subordinated notes offering in January 2022, we accessed lower cost capital to expand our share repurchase program and support our future growth. Relative to the outstanding stock at the beginning of each period, we have repurchased 12%, 9% and 9% of our outstanding common stock in 2019, 2020 and 2021, respectively. We anticipate continuing to efficiently retain capital for growth while returning excess capital to shareholders."

2

Conference Call

HomeStreet, Inc. (Nasdaq:HMST), the parent company of HomeStreet Bank, will conduct a quarterly earnings conference call on Tuesday, January 25, 2022 at 1:00 p.m. ET. Mark K. Mason, CEO and President, and John M. Michel, CFO, will discuss fourth quarter and year to date 2021 results and provide an update on recent events. A question and answer session will follow the presentation. Shareholders, analysts and other interested parties may register in advance at http://dpregister.com/sreg/10162678/f0537aee8a or may join the call by dialing 1-877-508-9589 (1-855-669-9657 in Canada and 1-412-317-1075 internationally) shortly before 1:00 p.m. ET.

A rebroadcast will be available approximately one hour after the conference call by dialing 1-877-344-7529 and entering passcode 10162678.

About HomeStreet

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. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. Its principal subsidiaries are HomeStreet Bank and HomeStreet Capital Corporation. HomeStreet Bank is the winner of the 2022 "Best Small Bank" in Washington Newsweek magazine award. Certain information about our business can be found on our investor relations web site, located at http://ir.homestreet.com. HomeStreet Bank is a member of the FDIC and is an Equal Housing Lender.

Contact:						Executive Vice President and Chief Financial Officer
						HomeStreet, Inc.
						John Michel (206) 515-2291
						john.michel@homestreet.com
						http://ir.homestreet.com

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HomeStreet, Inc. and Subsidiaries

Summary Financial Data

			Quarter Ended																														Year Ended
(in thousands, except per share data and FTE data)			December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020						December 31, 2021						December 31, 2020
Select Income Statement Data:
Net interest income			$	57,084					$	57,484					$	57,972					$	54,517					$	56,048					$	227,057					$	208,662
Provision for credit losses			(6,000)						(5,000)						(4,000)						—						—						(15,000)						20,469
Noninterest income			28,620						24,298						28,224						38,833						43,977						119,975						149,364
Noninterest expense			53,971						51,949						52,815						56,608						64,770						215,343						235,663
Income:
Before income taxes			37,733						34,833						37,381						36,742						35,255						146,689						101,894
Total			29,432						27,170						29,157						29,663						27,598						115,422						79,990
Net income per share - diluted			1.43						1.31						1.37						1.35						1.25						5.46						3.47
Core net income: (1)
Total			29,432						27,170						29,157						29,663						32,384						115,422						88,842
Net income per share - diluted			1.43						1.31						1.37						1.35						1.47						5.46						3.85
Selected Performance Ratios:
Return on average equity - annualized			16.1		%				14.8		%				16.3		%				16.4		%				15.3		%				15.9		%				11.3		%
Return on average tangible equity - annualized: (1)
Net income			17.0		%				15.6		%				17.2		%				17.3		%				16.2		%				16.8		%				12.1		%
Core (1)			17.0		%				15.6		%				17.2		%				17.3		%				19.0		%				16.8		%				13.4		%
Return on average assets - annualized:
Net income			1.59		%				1.48		%				1.59		%				1.65		%				1.47		%				1.58		%				1.10		%
Core (1)			1.59		%				1.48		%				1.59		%				1.65		%				1.73		%				1.58		%				1.23		%
Efficiency ratio (1)			62.2		%				62.8		%				62.8		%				60.0		%				56.1		%				61.9		%				61.4		%
Net interest margin			3.34		%				3.42		%				3.45		%				3.29		%				3.26		%				3.38		%				3.13		%
Other data:
Full-time equivalent employees ("FTE")			970						983						997						1,013						1,013						991						1,003

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HomeStreet, Inc. and Subsidiaries

Summary Financial Data (continued)

			As of:
(in thousands, except share and per share data)			December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Selected Balance Sheet Data:
Loans held for sale			$	176,131					$	395,112					$	225,241					$	390,223					$	361,932
Loans held for investment, net			5,495,726						5,299,741						5,332,626						5,227,727						5,179,886
Allowance for credit losses ("ACL")			47,123						54,516						59,897						64,047						64,294
Investment securities			1,006,691						983,038						1,007,658						1,049,105						1,076,364
Total assets			7,204,091						7,372,451						7,167,951						7,265,191						7,237,091
Deposits			6,146,509						6,359,660						6,086,527						6,131,233						5,821,559
Borrowings			41,000						—						50,000						84,500						322,800
Long-term debt			126,026						125,979						125,932						125,885						125,838
Total shareholders' equity			715,339						710,376						708,731						701,463						717,750
Other Data:
Book value per share			$	35.61					$	34.74					$	34.09					$	32.84					$	32.93
Tangible book value per share (1)			$	34.04					$	33.18					$	32.53					$	31.31					$	31.42
Equity to assets			9.9		%				9.6		%				9.9		%				9.7		%				9.9		%
Tangible common equity to tangible assets (1)			9.5		%				9.2		%				9.5		%				9.2		%				9.5		%
Shares outstanding at end of period			20,085,336						20,446,648						20,791,659						21,360,514						21,796,904
Loans to deposit ratio			93.0		%				90.4		%				92.3		%				92.7		%				96.3		%
Credit Quality:
ACL to total loans (2)			0.88		%				1.06		%				1.18		%				1.34		%				1.33		%
ACL to nonaccrual loans			386.2		%				307.8		%				287.5		%				297.3		%				310.3		%
Nonaccrual loans to total loans			0.22		%				0.33		%				0.39		%				0.41		%				0.40		%
Nonperforming assets to total assets			0.18		%				0.26		%				0.31		%				0.32		%				0.31		%
Nonperforming assets			$	12,936					$	19,196					$	22,319					$	23,025					$	22,097
Regulatory Capital Ratios:
Bank
Tier 1 leverage ratio			10.11		%				10.17		%				9.95		%				10.01		%				9.79		%
Total risk-based capital			13.77		%				13.71		%				14.36		%				14.84		%				14.76		%
Company
Tier 1 leverage ratio			9.94		%				10.00		%				9.78		%				9.83		%				9.65		%
Total risk-based capital			12.66		%				13.01		%				13.59		%				14.05		%				14.00		%

(1)For additional information on these non-GAAP financial measures and for corresponding reconciliations to GAAP financial measures, see Non-GAAP Financial Measures in this earnings release.

(2)The reserve rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA, including Paycheck Protection Program ("PPP") loan balances.

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HomeStreet, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)						December 31, 2021									December 31, 2020
ASSETS
Cash and cash equivalents						$	65,214								$	58,049
Investment securities						1,006,691									1,076,364
Loans held for sale						176,131									361,932
Loans held for investment, (net of allowance for credit losses of $47,123 and $64,294)						5,495,726									5,179,886
Mortgage servicing rights						100,999									85,740
Premises and equipment, net						58,154									65,102
Other real estate owned						735									1,375
Goodwill and other intangibles						31,709									32,880
Other assets						268,732									375,763
Total assets						$	7,204,091								$	7,237,091
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits						$	6,146,509								$	5,821,559
Borrowings						41,000									322,800
Long-term debt						126,026									125,838
Accounts payable and other liabilities						175,217									249,144
Total liabilities						6,488,752									6,519,341
Shareholders' equity:
Common stock, no par value; 160,000,000 shares authorized
20,085,336 and 21,796,904 shares issued and outstanding						249,856									278,505
Retained earnings						444,343									403,888
Accumulated other comprehensive income						21,140									35,357
Total shareholders' equity						715,339									717,750
Total liabilities and shareholders' equity						$	7,204,091								$	7,237,091

6

HomeStreet, Inc. and Subsidiaries

Consolidated Income Statements

			Quarter Ended December 31,												Year Ended December 31,
(in thousands, except share and per share data)			2021						2020						2021						2020
Interest income:
Loans			$	55,403					$	56,724					$	222,166					$	228,999
Investment securities			5,469						5,733						21,560						21,786
Cash, Fed Funds and other			97						267						569						1,227
Total interest income			60,969						62,724						244,295						252,012
Interest expense:
Deposits			2,481						4,853						11,411						33,797
Borrowings			1,404						1,823						5,827						9,553
Total interest expense			3,885						6,676						17,238						43,350
Net interest income			57,084						56,048						227,057						208,662
Provision for credit losses			(6,000)						—						(15,000)						20,469
Net interest income after provision for credit losses			63,084						56,048						242,057						188,193
Noninterest income:
Net gain on loan origination and sale activities			20,079						36,866						92,318						122,564
Loan servicing income			2,540						2,570						7,233						9,491
Deposit fees			2,156						1,858						8,068						7,083
Other			3,845						2,683						12,356						10,226
Total noninterest income			28,620						43,977						119,975						149,364
Noninterest expense:
Compensation and benefits			30,627						35,397						132,015						136,826
Information services			7,278						7,674						27,913						30,004
Occupancy			5,662						12,241						23,832						35,323
General, administrative and other			10,404						9,458						31,583						33,510
Total noninterest expense			53,971						64,770						215,343						235,663
Income before income taxes			37,733						35,255						146,689						101,894
Income tax expense			8,301						7,657						31,267						21,904
Net income			$	29,432					$	27,598					$	115,422					$	79,990
Net income per share:
Basic			$	1.45					$	1.27					$	5.53					$	3.50
Diluted			$	1.43					$	1.25					$	5.46					$	3.47
Weighted average shares outstanding:
Basic			20,251,824						21,798,545						20,885,509						22,867,268
Diluted			20,522,475						22,103,902						21,143,414						23,076,822

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HomeStreet, Inc. and Subsidiaries

Five Quarter Consolidated Income Statements

			Quarter Ended
(in thousands, except share and per share data)			December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Interest income:
Loans			$	55,403					$	56,117					$	57,078					$	53,568					$	56,724
Investment securities			5,469						5,130						5,010						5,951						5,733
Cash, Fed Funds and other			97						141						159						172						267
Total interest income			60,969						61,388						62,247						59,691						62,724
Interest expense:
Deposits			2,481						2,507						2,773						3,650						4,853
Borrowings			1,404						1,397						1,502						1,524						1,823
Total interest expense			3,885						3,904						4,275						5,174						6,676
Net interest income			57,084						57,484						57,972						54,517						56,048
Provision for credit losses			(6,000)						(5,000)						(4,000)						—						—
Net interest income after provision for credit losses			63,084						62,484						61,972						54,517						56,048
Noninterest income:
Net gain on loan origination and sale activities			20,079						17,509						21,271						33,459						36,866
Loan servicing income			2,540						2,014						1,931						748						2,570
Deposit fees			2,156						2,091						1,997						1,824						1,858
Other			3,845						2,684						3,025						2,802						2,683
Total noninterest income			28,620						24,298						28,224						38,833						43,977
Noninterest expense:
Compensation and benefits			30,627						31,175						34,378						35,835						35,397
Information services			7,278						6,902						6,949						6,784						7,674
Occupancy			5,662						5,705						5,973						6,492						12,241
General, administrative and other			10,404						8,167						5,515						7,497						9,458
Total noninterest expense			53,971						51,949						52,815						56,608						64,770
Income before income taxes			37,733						34,833						37,381						36,742						35,255
Income tax expense			8,301						7,663						8,224						7,079						7,657
Net income			$	29,432					$	27,170					$	29,157					$	29,663					$	27,598
Net income per share:
Basic			$	1.45					$	1.32					$	1.38					$	1.37					$	1.27
Diluted			$	1.43					$	1.31					$	1.37					$	1.35					$	1.25
Weighted average shares outstanding:
Basic			20,251,824						20,613,290						21,057,473						21,637,671						21,798,545
Diluted			20,522,475						20,819,601						21,287,974						21,961,828						22,103,902

8

HomeStreet, Inc. and Subsidiaries

Average Balances, Yields (Taxable-equivalent basis) and Rates

(in thousands, except yield/rate)						Quarter Ended December 31,												Year Ended December 31,
Average Balances:						2021						2020						2021						2020
Investment securities						$	990,273					$	1,098,367					$	1,020,530					$	1,086,415
Loans						5,767,597						5,705,512						5,653,930						5,544,847
Total interest earning assets						6,840,317						6,877,872						6,770,763						6,694,705
Deposits: Interest-bearing						4,591,239						4,491,440						4,570,811						4,343,339
Deposits: Non-interest-bearing						1,728,558						1,421,182						1,596,653						1,276,780
Borrowings						25,711						471,175						109,513						604,278
Long-term debt						125,995						125,807						125,925						125,737
Total interest-bearing liabilities						4,742,945						5,088,422						4,806,249						5,073,354
Average Yield/Rate:
Investment securities						2.50		%				2.35		%				2.38		%				2.26		%
Loans						3.79		%				3.93		%				3.91		%				4.10		%
Total interest earning assets						3.57		%				3.65		%				3.63		%				3.78		%
Deposits: Interest-bearing						0.21		%				0.43		%				0.25		%				0.78		%
Total deposits						0.16		%				0.33		%				0.18		%				0.60		%
Borrowings						0.73		%				0.35		%				0.36		%				0.62		%
Long-term debt						4.29		%				4.35		%				4.30		%				4.58		%
Total interest-bearing liabilities						0.33		%				0.52		%				0.36		%				0.85		%
Net interest rate spread						3.24		%				3.13		%				3.27		%				2.93		%
Net interest margin						3.34		%				3.26		%				3.38		%				3.13		%

(in thousands, except yield/rate)						Quarter Ended
Average Balances:						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Investment securities						$	990,273					$	994,593					$	1,032,995					$	1,065,423					$	1,098,367
Loans						5,767,597						5,577,149						5,664,187						5,605,868						5,705,512
Total interest earning assets						6,840,317						6,719,258						6,783,707						6,739,335						6,877,872
Deposits: Interest-bearing						4,591,239						4,525,730						4,577,504						4,589,126						4,491,440
Deposits: Noninterest-bearing						1,728,558						1,679,086						1,541,317						1,433,765						1,421,182
Borrowings						25,711						32,167						179,543						203,621						471,175
Long-term debt						125,995						125,948						125,901						125,854						125,807
Total interest-bearing liabilities						4,742,945						4,683,845						4,882,948						4,918,601						5,088,422
Average Yield/Rate:
Investment securities						2.50		%				2.34		%				2.20		%				2.47		%				2.35		%
Loans						3.79		%				3.98		%				4.02		%				3.85		%				3.93		%
Total interest earning assets						3.57		%				3.65		%				3.70		%				3.60		%				3.65		%
Deposits: Interest-bearing						0.21		%				0.22		%				0.24		%				0.32		%				0.43		%
Total deposits						0.16		%				0.16		%				0.18		%				0.25		%				0.33		%
Borrowings						0.73		%				0.54		%				0.31		%				0.32		%				0.35		%
Long-term debt						4.29		%				4.28		%				4.31		%				4.33		%				4.35		%
Total interest-bearing liabilities						0.33		%				0.33		%				0.35		%				0.42		%				0.52		%
Net interest rate spread						3.24		%				3.32		%				3.35		%				3.18		%				3.13		%
Net interest margin						3.34		%				3.42		%				3.45		%				3.29		%				3.26		%

9

Results of Operations

Non-core Amounts

During the quarter and year ended December 31, 2020 non-core items included $6.1 million and $11.8 million, respectively, of charges related to our efficiency improvement initiatives including the restructuring of our facilities. We had no similar charges in 2021.

Fourth Quarter of 2021 Compared to the Third Quarter of 2021

Our net income and income before taxes were $29.4 million and $37.7 million, respectively, in the fourth quarter of 2021, as compared to $27.2 million and $34.8 million, respectively, in the third quarter of 2021. The $2.9 million increase in income before taxes was due to a higher recovery of our allowance for credit losses and higher noninterest income, which was partially offset by lower net interest income and higher noninterest expenses.

Our effective tax rate was 22.0% in the fourth quarter of 2021 as compared to 22.0% in third quarter of 2021 and a statutory rate of 23.3%. Our effective tax rate was lower than our statutory rate due to the benefits of tax advantaged investments.

Net interest income was lower in the fourth quarter of 2021 as compared to the third quarter of 2021 primarily due to a $2.1 million decrease in interest income derived from Paycheck Protection Program (“PPP”) loans which was substantially offset by higher levels of non-PPP loans. Excluding the impact of PPP loans, our net interest margin in the fourth quarter of 2021 was consistent with our net interest margin in the third quarter of 2021.

As a result of the continued favorable performance of our loan portfolio, a stable low level of nonperforming assets and an improved outlook of the estimated impact of COVID-19 on our loan portfolio, we recorded a $6 million recovery of our allowance for credit losses in the fourth quarter of 2021, as compared to a $5 million recovery of our allowance for credit losses in the third quarter of 2021.

The increase in noninterest income in the fourth quarter of 2021 as compared to the third quarter of 2021 was primarily due to a $2.6 million increase in gain on loan origination and sale activities and an increase in other income. The increase in gain on loan origination and sale activities was primarily due to the gain realized from a sale of $244 million in multifamily permanent loans in the fourth quarter of 2021, which was partially offset by a $3.7 million decrease in gain on loan origination and sale activities due to lower volume of single family rate locks. The increase in other income includes a $0.6 million gain on sale of other real estate owned ("OREO").

The $2.0 million increase in noninterest expense in the fourth quarter of 2021 as compared to the third quarter of 2021 was primarily due to higher general, administrative and other costs partially offset by lower compensation and benefits costs. The lower level of compensation and benefit costs reflect a $1.0 million reversal of previously accrued medical benefits related to the positive experience in our self-insured medical program. Legal costs, which are included in general, administrative and other costs, were $2.5 million higher in the fourth quarter of 2021 as compared to the third quarter of 2021 due to nonrecurring costs expended on litigation activities and legal matters.

2021 Compared to 2020

Our net income and income before taxes were $115.4 million and $146.7 million, respectively, in 2021, as compared to $80.0 million and $101.9 million, respectively, in 2020. The $44.8 million increase in income before taxes was due to higher net interest income, a lower provision for credit losses and lower noninterest expense, partially offset by lower noninterest income.

Our effective tax rate during 2021 was 21.3% as compared to 21.5% in 2020 and a statutory rate of 23.5%. Our effective tax rate was lower than our statutory rate due primarily to the benefits of tax advantaged investments.

Net interest income was higher in 2021 as compared to 2020 primarily due to an increase in our net interest margin from 3.13% in the 2020 to 3.38% in 2021. The increase in our net interest margin was due to a 34 basis point increase in our net interest rate spread as decreases in the rates paid on interest bearing liabilities were greater than the decreases in yields on our interest earning assets. The 15 basis point decrease in yield on interest earning assets was due to the origination of loans and purchases of securities at current market rates which were below our portfolio rates, the repricing down of variable rate loans and the prepayment and paydown of higher yielding loans and investments in our portfolios. Our cost of interest-bearing liabilities decreased from 0.85% in 2020 to 0.36% in 2021 due to a decrease in market interest rates which allowed us to reprice our deposits and borrowings at lower rates.

As a result of the favorable performance of our loan portfolio, a stable low level of nonperforming assets and an improved outlook of the estimated impact of COVID-19 on our loan portfolio, we recorded a $15 million recovery of our allowance for credit losses in 2021. Due to adverse economic conditions related to the COVID-19 pandemic, in 2020 we recorded a $20.5 million provision for credit losses as an estimate of the potential adverse impact of those conditions on our loan portfolio.

The decrease in noninterest income for 2021 as compared to 2020 was due to decreases in gain on loan origination and sale activities and loan servicing income, which was partially offset by higher deposit fees and higher other income. The $30.2 million decrease in gain on loan origination and sale activities was due to a $33.9 million decrease in single family gain on loan origination and sale activities which was partially offset by a $3.7 million increase in commercial real estate (“CRE”) and commercial gain on loan origination and sale activities. The decrease in single family gain on loan origination and sale activities was due primarily to a 30% decrease in rate locks. The increase in CRE and commercial gain on loan origination and sale activities was due to a 17% increase in the realized gain on sale which was partially offset by a 15% decrease in the volume of loans sold. The $2.3 million decrease in loan servicing income was due to a $5.5 million decrease in single family servicing income which was partially offset by a $3.2 million increase in commercial loan servicing income. The decrease in single family servicing income was due primarily to a decline in the servicing portfolio balance due to high levels of prepayments and a $1.7 million decrease in risk management results. The increase in commercial loan servicing income was primarily due to higher levels of prepayment fees. The higher deposit fees were due to higher demand deposit balances and increased customer activity levels. The $2.1 million increase in other income was due to higher income from investments and a gain on sale of OREO realized in 2021.

The $20.3 million decrease in noninterest expense in 2021 as compared to 2020 was due to lower compensation and benefit costs, information services expense, occupancy expense and general, administrative and other expenses. The $4.8 million decrease in compensation and benefits expense is primarily due to lower levels of staffing. The $2.1 million decrease in information services costs is primarily due to lower core processing costs related to a renegotiation of our contract which became effective at the beginning of 2021. The occupancy expenses in 2020 included $10.2 million of impairments related to ongoing restructuring of our facilities and staffing, with no similar charges in 2021. The remaining decrease in occupancy costs relates to a reduction in leased space. The decrease in general, administrative and other costs was due to charges

related to our efficiency improvement initiatives incurred in 2020 and lower FDIC fees, which were partially offset by higher marketing costs in 2021.

Financial Position

During 2021, total assets decreased by $33 million due to decreases in investment securities and other assets, partially offset by a $316 million increase in loans held for investment. Loans held for investment increased due to $3.3 billion of originations, which were partially offset by prepayments and scheduled payments of $2.6 billion and transfer of loans to loans held for sale of $393 million. The $282 million decrease in borrowings reflects the reduced need of wholesale funding resulting from a $325 million increase in deposits. The growth in deposits was due to new customers and increases in existing customer balances.

10

Loans Held for Investment

(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Commercial real estate loans
Non-owner occupied commercial real estate						$	705,359					$	754,031					$	761,754					$	766,002					$	829,538
Multifamily						2,415,359						2,090,156						1,966,995						1,521,349						1,428,092
Construction/land development						496,144						514,322						484,282						532,202						553,695
Total commercial real estate loans						3,616,862						3,358,509						3,213,031						2,819,553						2,811,325
Commercial and industrial loans
Owner occupied commercial real estate						457,706						450,350						457,504						473,273						467,256
Commercial business						401,872						435,756						575,122						757,231						645,723
Total commercial and industrial loans						859,578						886,106						1,032,626						1,230,504						1,112,979
Consumer loans
Single family (1)						763,331						793,927						812,287						875,417						915,123
Home equity and other						303,078						315,715						334,579						366,300						404,753
Total consumer loans						1,066,409						1,109,642						1,146,866						1,241,717						1,319,876
Total						5,542,849						5,354,257						5,392,523						5,291,774						5,244,180
Allowance for credit losses						(47,123)						(54,516)						(59,897)						(64,047)						(64,294)
Net						$	5,495,726					$	5,299,741					$	5,332,626					$	5,227,727					$	5,179,886

(1)Includes $7.3 million, $4.5 million, $5.2 million, $4.3 million and $7.1 million of single family loans that are carried at fair value at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively.

Loan Roll-forward

(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Loans - beginning balance						$	5,354,257					$	5,392,523					$	5,291,774					$	5,244,180					$	5,294,369
Originations and advances						794,869						804,307						911,630						768,787						734,029
Transfers (to) from loans held for sale						(2,034)						(261,697)						1,394						(130,218)						(157,315)
Payoffs, paydowns and other						(602,613)						(580,754)						(812,261)						(590,897)						(626,436)
Charge-offs and transfers to OREO						(1,630)						(122)						(14)						(78)						(467)
Loans - ending balance						$	5,542,849					$	5,354,257					$	5,392,523					$	5,291,774					$	5,244,180

11

Loan Originations and Advances

(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Commercial real estate loans
Non-owner occupied commercial real estate						$	33,390					$	30,065					$	14,308					$	8,404					$	18,233
Multifamily						395,365						408,353						513,620						282,795						353,802
Construction/land development						180,083						191,774						183,571						165,631						171,822
Total commercial real estate loans						608,838						630,192						711,499						456,830						543,857
Commercial and industrial loans
Owner occupied commercial real estate						27,323						11,879						8,709						33,155						20,968
Commercial business						49,580						38,157						83,053						163,525						41,357
Total commercial and industrial loans						76,903						50,036						91,762						196,680						62,325
Consumer loans
Single family						73,035						93,602						78,182						95,544						103,016
Home equity and other						36,093						30,477						30,187						19,733						24,831
Total consumer loans						109,128						124,079						108,369						115,277						127,847
Total						$	794,869					$	804,307					$	911,630					$	768,787					$	734,029

Credit Quality

As of December 31, 2021, our ratio of nonperforming assets to total assets remained low at 0.18%, while our ratio of total loans delinquent over 30 days to total loans was 0.38%.

Delinquencies

						Past Due and Still Accruing
(in thousands)						30-59 days						60-89 days						90 days or more (1)						Nonaccrual									Total past due and nonaccrual (2)						Current						Total loans
December 31, 2021
Total loans held for investment						$	1,208					$	894					$	6,717					$	12,201								$	21,020					$	5,521,829					$	5,542,849
%						0.02		%				0.02		%				0.12		%				0.22		%							0.38		%				99.62		%				100.00		%
September 30, 2021
Total loans held for investment						$	1,554					$	1,202					$	8,361					$	17,712								$	28,829					$	5,325,428					$	5,354,257
%						0.03		%				0.02		%				0.16		%				0.33		%							0.54		%				99.46		%				100.00		%

(1) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.

(2) Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $8.4 million and $10.8 million at December 31, 2021 and September 30, 2021, respectively.

12

Allowance for Credit Losses (roll-forward)

						Quarter Ended
(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Allowance for credit losses
Beginning balance						$	54,516					$	59,897					$	64,047					$	64,294					$	64,892
Provision for credit losses						(5,952)						(5,348)						(4,145)						(371)						210
Recoveries (charge-offs), net						(1,441)						(33)						(5)						124						(808)
Ending balance						$	47,123					$	54,516					$	59,897					$	64,047					$	64,294
Allowance for unfunded commitments:
Beginning balance						$	2,452					$	2,104					$	1,959					$	1,588					$	1,798
Provision for credit losses						(48)						348						145						371						(210)
Ending balance						$	2,404					$	2,452					$	2,104					$	1,959					$	1,588
Provision for credit losses:
Allowance for credit losses - loans						$	(5,952)					$	(5,348)					$	(4,145)					$	(371)					$	210
Allowance for unfunded commitments						(48)						348						145						371						(210)
Total						$	(6,000)					$	(5,000)					$	(4,000)					$	—					$	—

Allocation of Allowance for Credit Losses by Product Type

(in thousands)			December 31, 2021												September 30, 2021												December 31, 2020
Allowance for credit losses			Balance						Rate (1)						Balance						Rate (1)						Balance						Rate (1)
Non-owner occupied commercial real estate			$	7,509					1.06		%				$	9,636					1.28		%				$	8,845					1.07		%
Multifamily			5,854						0.24		%				5,457						0.26		%				6,072						0.43		%
Construction/land development
Multifamily construction			507						1.34		%				1,044						2.08		%				4,903						4.25		%
Commercial real estate construction			150						1.06		%				351						1.96		%				1,670						6.12		%
Single family construction			6,411						2.16		%				6,291						2.07		%				5,130						1.98		%
Single family construction to perm			1,055						0.71		%				1,062						0.74		%				1,315						0.87		%
Total commercial real estate loans			21,486						0.59		%				23,841						0.71		%				27,935						0.99		%
Owner occupied commercial real estate			5,006						1.10		%				5,285						1.18		%				4,994						1.08		%
Commercial business			12,273						3.39		%				14,473						4.08		%				17,043						4.72		%
Total commercial and industrial			17,279						2.11		%				19,758						2.46		%				22,037						2.67		%
Single family			4,394						0.68		%				5,757						0.85		%				6,906						0.85		%
Home equity and other			3,964						1.31		%				5,160						1.63		%				7,416						1.83		%
Total consumer			8,358						0.88		%				10,917						1.10		%				14,322						1.18		%
Total			$	47,123					0.88		%				$	54,516					1.06		%				$	64,294					1.33		%

(1) The ACL rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA, including PPP loans.

13

Production Volumes for Sale to the Secondary Market

						Quarter Ended																														Year Ended
(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020						December 31, 2021						December 31, 2020
Loan originations
Single family loans						$	360,503					$	414,102					$	562,804					$	623,889					$	628,762					$	1,961,298					$	2,079,094
Commercial and industrial and CRE loans						105,163						34,464						42,435						113,304						162,898						295,366						414,550
Loans sold
Single family loans						377,399						469,090						627,282						573,040						592,661						2,046,811						1,985,944
Commercial and industrial and CRE loans (1)						307,430						69,810						138,421						257,717						406,717						773,378						908,776
Net gain on loan origination and sale activities
Single family loans						10,578						14,249						15,836						26,187						27,044						66,850						100,795
Commercial and industrial and CRE loans (1)						9,501						3,260						5,435						7,272						9,822						25,468						21,769
Total						$	20,079					$	17,509					$	21,271					$	33,459					$	36,866					$	92,318					$	122,564

(1) May include loans originated as held for investment.

Loan Servicing Income

						Quarter Ended																														Year Ended
(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020						December 31, 2021						December 31, 2020
Single family servicing income, net:
Servicing fees and other						$	3,870					$	3,878					$	3,975					$	3,935					$	4,120					$	15,658					$	17,477
Changes - amortization (1)						(4,216)						(4,579)						(5,181)						(5,693)						(5,508)						(19,669)						(17,754)
Net						(346)						(701)						(1,206)						(1,758)						(1,388)						(4,011)						(277)
Risk management, single family MSRs:
Changes in fair value due to assumptions (2)						193						747						(5,024)						11,463						2,015						7,379						(19,955)
Net gain (loss) from derivatives hedging						(378)						(293)						5,024						(12,591)						(1,328)						(8,238)						20,820
Subtotal						(185)						454						—						(1,128)						687						(859)						865
Single family servicing income (loss)						(531)						(247)						(1,206)						(2,886)						(701)						(4,870)						588
Commercial loan servicing income:
Servicing fees and other						5,417						4,019						5,270						4,978						4,844						19,684						14,560
Amortization of capitalized MSRs						(2,346)						(1,758)						(2,133)						(1,344)						(1,573)						(7,581)						(5,657)
Total						3,071						2,261						3,137						3,634						3,271						12,103						8,903
Total loan servicing income (loss)						$	2,540					$	2,014					$	1,931					$	748					$	2,570					$	7,233					$	9,491

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.

14

Capitalized Mortgage Servicing Rights ("MSRs")

						Quarter Ended
(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Single Family MSRs
Beginning balance						$	61,206					$	59,872					$	62,352					$	49,966					$	47,018
Additions and amortization:
Originations						4,401						5,166						7,725						6,616						6,482
Changes - amortization (1)						(4,216)						(4,579)						(5,181)						(5,693)						(5,508)
Net additions and amortization						185						587						2,544						923						974
Change in fair value due to assumptions (2)						193						747						(5,024)						11,463						1,974
Ending balance						$	61,584					$	61,206					$	59,872					$	62,352					$	49,966
Ratio to related loans serviced for others						1.11		%				1.09		%				1.05		%				1.10		%				0.85		%
Multifamily and SBA MSRs
Beginning balance						$	39,625					$	39,113					$	39,626					$	35,774					31,806
Originations						2,136						2,270						1,620						5,196						5,458
Amortization						(2,346)						(1,758)						(2,133)						(1,344)						(1,490)
Ending balance						$	39,415					$	39,625					$	39,113					$	39,626					$	35,774
Ratio to related loans serviced for others						1.94		%				1.92		%				1.92		%				2.02		%				1.99		%

(1) Represents changes due to collection/realization of expected cash flows and curtailments.

(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.

15

Deposits

(in thousands)						December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020
Deposits by Product:
Noninterest-bearing accounts - checking and savings						$	1,433,566					$	1,479,491					$	1,316,698					$	1,190,953					$	1,092,735
Interest-bearing transaction and savings deposits:
Interest-bearing demand deposit accounts						513,810						555,716						557,677						557,900						484,265
Statement savings accounts						302,389						305,395						293,563						287,028						264,024
Money market accounts						2,806,313						2,796,524						2,650,564						2,665,875						2,596,453
Total interest-bearing transaction and savings deposits						3,622,512						3,657,635						3,501,804						3,510,803						3,344,742
Total transaction and savings deposits						5,056,078						5,137,126						4,818,502						4,701,756						4,437,477
Certificates of deposit						906,928						995,475						1,022,967						1,178,714						1,139,807
Noninterest-bearing accounts - other						183,503						227,059						245,058						250,763						244,275
Total deposits						$	6,146,509					$	6,359,660					$	6,086,527					$	6,131,233					$	5,821,559
Percent of total deposits:
Noninterest-bearing accounts - checking and savings						23.3		%				23.3		%				21.6		%				19.4		%				18.8		%
Interest-bearing transaction and savings deposits:
Interest-bearing demand deposit accounts						8.4		%				8.7		%				9.2		%				9.1		%				8.3		%
Statement savings accounts						4.9		%				4.8		%				4.8		%				4.7		%				4.5		%
Money market accounts						45.7		%				44.0		%				43.5		%				43.5		%				44.6		%
Total interest-bearing transaction and savings deposits						59.0		%				57.5		%				57.5		%				57.3		%				57.4		%
Total transaction and savings deposits						82.3		%				80.8		%				79.1		%				76.7		%				76.2		%
Certificates of deposit						14.8		%				15.7		%				16.8		%				19.2		%				19.6		%
Noninterest-bearing accounts - other						2.9		%				3.5		%				4.1		%				4.1		%				4.2		%
Total deposits						100.0		%				100.0		%				100.0		%				100.0		%				100.0		%

16

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance.

In this press release, we use the following non-GAAP measures: (i) tangible common equity and tangible assets as we believe this information is consistent with the treatment by bank regulatory agencies, which excluded intangible assets from the calculation of capital ratios; (ii) core earnings which exclude certain charges primarily related to our discontinued operations and restructuring activities as we believe this measure is a better comparison to be used for projecting future results; and (iii) an efficiency ratio which is the ratio of noninterest expenses to the sum of net interest income and noninterest income, excluding certain items of income or expense and excluding taxes incurred and payable to the state of Washington as such taxes are not classified as income taxes and we believe including them in noninterest expenses impacts the comparability of our results to those companies whose operations are in states where assessed taxes on business are classified as income taxes.

These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures provided by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirements.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other parties in the evaluation of companies in our industry. Rather, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP. In the information below, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP measures used in this press release, or a reconciliation of the non-GAAP calculation of the financial measure.

17

HomeStreet, Inc. and Subsidiaries

Non-GAAP Financial Measures

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures:

			As of or for the Quarter Ended																														Year Ended
(in thousands, except share and per share data)			December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020						December 31, 2021						December 31, 2020
Tangible book value per share
Shareholders' equity			$	715,339					$	710,376					$	708,731					$	701,463					$	717,750					$	715,339					$	717,750
Less: Goodwill and other intangibles			(31,709)						(32,002)						(32,295)						(32,587)						(32,880)						(31,709)						(32,880)
Tangible shareholders' equity			$	683,630					$	678,374					$	676,436					$	668,876					$	684,870					$	683,630					$	684,870
Common shares outstanding			20,085,336						20,446,648						20,791,659						21,360,514						21,796,904						20,085,336						21,796,904
Computed amount			$	34.04					$	33.18					$	32.53					$	31.31					$	31.42					$	34.04					$	31.42
Tangible common equity to tangible assets
Tangible shareholders' equity (per above)			$	683,630					$	678,374					$	676,436					$	668,876					$	684,870					$	683,630					$	684,870
Tangible assets
Total assets			$	7,204,091					$	7,372,451					$	7,167,951					$	7,265,191					$	7,237,091					$	7,204,091					$	7,237,091
Less: Goodwill and other intangibles			(31,709)						(32,002)						(32,295)						(32,587)						(32,880)						(31,709)						(32,880)
Net			$	7,172,382					$	7,340,449					$	7,135,656					$	7,232,604					$	7,204,211					$	7,172,382					$	7,204,211
Ratio			9.5		%				9.2		%				9.5		%				9.2		%				9.5		%				9.5		%				9.5		%
Core net income
Net income			$	29,432					$	27,170					$	29,157					$	29,663					$	27,598					$	115,422					$	79,990
Adjustments (tax effected)
Restructuring related charges			—						—						—						—						4,786						—						9,298
Contingent payout			—						—						—						—						—						—						(446)
Total			$	29,432					$	27,170					$	29,157					$	29,663					$	32,384					$	115,422					$	88,842
Return on average tangible equity (annualized)
Average shareholders' equity			$	726,014					$	726,823					$	718,838					$	731,719					$	717,666					$	725,802					$	706,160
Less: Average goodwill and other intangibles			(31,901)						(32,195)						(32,487)						(32,777)						(33,103)						(32,337)						(33,613)
Average tangible equity			$	694,113					$	694,628					$	686,351					$	698,942					$	684,563					$	693,465					$	672,547
Net income			$	29,432					$	27,170					$	29,157					$	29,663					$	27,598					$	115,422					$	79,990
Adjustments (tax effected)
Amortization of core deposit intangibles			229						229						229						236						267						923						1,082
Tangible income applicable to shareholders			$	29,661					$	27,399					$	29,386					$	29,899					$	27,865					$	116,345					$	81,072
Ratio			17.0		%				15.6		%				17.2		%				17.3		%				16.2		%				16.8		%				12.1		%

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			As of or for the Quarter Ended																														Year Ended
(in thousands, except share and per share data)			December 31, 2021						September 30, 2021						June 30, 2021						March 31, 2021						December 31, 2020						December 31, 2021						December 31, 2020
Return on average tangible equity (annualized) - Core
Average tangible equity (per above)			$	694,113					$	694,628					$	686,351					$	698,942					$	684,563					$	693,465					$	672,547
Core net income (per above)			29,432						27,170						29,157						29,663						32,384						115,422						88,842
Adjustments (tax effected)
Amortization of core deposit intangibles			229						229						229						236						267						923						1,082
Tangible core income applicable to shareholders			$	29,661					$	27,399					$	29,386					$	29,899					$	32,651					$	116,345					$	89,924
Ratio			17.0		%				15.6		%				17.2		%				17.3		%				19.0		%				16.8		%				13.4		%
Return on average assets (annualized) - Core
Average assets			$	7,356,957					$	7,264,933					$	7,342,275					$	7,310,408					$	7,463,702					$	7,318,505					$	7,250,634
Core net income (per above)			29,432						27,170						29,157						29,663						32,384						115,422						88,842
Ratio			1.59		%				1.48		%				1.59		%				1.65		%				1.73		%				1.58		%				1.23		%
Efficiency ratio
Noninterest expense
Total			$	53,971					$	51,949					$	52,815					$	56,608					$	64,770					$	215,343					$	235,663
Adjustments:
Restructuring related charges			—						—						—						—						(6,112)						—						(11,837)
Legal fees recovery			—						—						1,900						—						—						1,900						—
Prepayment fee on FHLB advances			—						—						—						—						(1,492)						—						(1,492)
State of Washington taxes			(664)						(578)						(602)						(579)						(1,056)						(2,423)						(2,920)
Adjusted total			$	53,307					$	51,371					$	54,113					$	56,029					$	56,110					$	214,820					$	219,414
Total revenues
Net interest income			$	57,084					$	57,484					$	57,972					$	54,517					$	56,048					227,057						208,662
Noninterest income			28,620						24,298						28,224						38,833						43,977						119,975						149,364
Adjustments:
Contingent payout			—						—						—						—						—						—						(566)
Adjusted total			$	85,704					$	81,782					$	86,196					$	93,350					$	100,025					$	347,032					$	357,460
Ratio			62.2		%				62.8		%				62.8		%				60.0		%				56.1		%				61.9		%				61.4		%
Core diluted earnings per share
Core net income (per above)			$	29,432					$	27,170					$	29,157					$	29,663					$	32,384					$	115,422					$	88,842
Fully diluted shares			20,522,475						20,819,601						21,287,974						21,961,828						22,103,902						21,143,414						23,076,822
Ratio			$	1.43					$	1.31					$	1.37					$	1.35					$	1.47					$	5.46					$	3.85
Effective tax rate used in computations above			22.0		%				22.0		%				22.0		%				19.3		%				21.7		%				21.3		%				21.5		%

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Generally, forward-looking statements include the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “goal,” “upcoming,” “outlook,” “guidance” or the negation thereof, or similar expressions. In addition, all statements that address and/or include beliefs, assumptions, estimates, projections and expectations of our future performance, financial condition, long-term value creation, capital management, reduction in volatility, reliability of earnings, provisions and allowances for credit losses, cost reduction initiatives, performance of our continued operations relative to our past operations, and restructuring activities are forward-looking statements within the meaning of the Reform Act. Forward-looking statements involve inherent risks, uncertainties and other factors, many of which are difficult to predict and are generally beyond management’s control. Forward-looking statements are based on the Company’s expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this release as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. The Company does not endorse any projections regarding future performance that may be made by third parties. For all forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act.

We caution readers that actual results may differ materially from those expressed in or implied by the Company’s forward-looking statements. Rather, more important factors could affect the Company’s future results, including but not limited to the following: (1) the continued impact of COVID-19 on the U.S. and global economies, including business disruptions, reductions in employment and an increase in business failures, specifically among our clients; (2) the continued impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs as more cases of COVID-19 may arise in our primary markets; (3) the timing and occurrence or non-occurrence of events may be subject to circumstances beyond our control; (4) there may be increases in competitive pressure among financial institutions or from non-financial institutions; (5) changes in the interest rate environment may reduce interest margins; (6) changes in deposit flows, loan demand or real estate values may adversely affect the business of our primary subsidiary, the Bank, through which substantially all of our operations are carried out; (7) our ability to control operating costs and expenses; (8) our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses; (9) the adequacy of our allowance for credit losses; (10) changes in accounting principles, policies or guidelines may cause our financial condition to be perceived differently; (11) legislative or regulatory changes that may adversely affect our business or financial condition, including, without limitation, changes in corporate and/or individual income tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes; (12) general economic conditions, either nationally or locally in some or all areas in which we conduct business, or conditions in the securities markets or banking industry, may be less favorable than what we currently anticipate; (13) challenges our customers may face in meeting current underwriting standards may adversely impact all or a substantial portion of the value of our rate-lock loan activity we recognize; (14) technological changes may be more difficult or expensive than what we anticipate; (15) a failure in or breach of our operational or security systems or information technology infrastructure, or those of our third-party providers and vendors, including due to cyber-attacks; (16) success or consummation of new business initiatives may be more difficult or expensive than what we anticipate; (17) our ability to grow efficiently both organically and through acquisitions and to manage our growth and integration costs; (18) our ability to attract and retain key members of our senior management team; (19) staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; (20) litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than what we anticipate; and (21) our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or the Bank, or repurchases of our common stock. A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives cited in this release, other releases, public statements and/or filings with the Securities and Exchange Commission (“SEC”) is also contained in the “Risk Factors” sections of the Company’s Forms 10-K and 10-Q. We strongly recommend readers review those disclosures in conjunction with the discussions herein.

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All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company.

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