HomeStreet, Inc. announced the pricing of its public offering of $100million aggregate principal amount of its 3.50% Fixed-to-Floating Rate Subordinated Notes due 2032. The price to the public for the Notes is 100% of the principal amount of the Notes. The Notes will mature on January 30, 2032.

Interest on the Notes initially will accrue at a rate equal to 3.50% per annum from and including January 19, 2022, to, but excluding, January 30, 2027, payable semiannually in arrears. From and including January 30, 2027, to, but excluding, January 30, 2032, or the earlier redemption date, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term Secured Overnight Financing Rate, or Term SOFR (as defined in the Notes), plus a spread of 215 basis points, payable quarterly in arrears. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.

The Company intends to use a significant portion of the net proceeds from the Notes offering to repurchase shares of its common stock through open market purchases, with the remainder of the net proceeds used for working capital and other general corporate purposes, including support for growth of its total assets. The offering is expected to close on January 19, 2022, subject to the satisfaction of customary closing conditions. On January 30, 2027, or on any interest payment date thereafter, the Company may, at its option, redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest to, but excluding, the date of redemption.

The Company may also redeem the Notes at any time prior to their maturity, including prior to January 30, 2027, in whole, but not in part, upon the occurrence of certain specified events.