HomeStreet Responds to Blue Lion Capital Letters to Shareholders
22 Septembre 2023 - 9:56PM
Business Wire
HomeStreet, Inc. (Nasdaq: HMST) (including its consolidated
subsidiaries, the "Company", "HomeStreet" or "we"), the parent
company of HomeStreet Bank, today responded to Blue Lion Capital
Letters to Shareholders, set forth in the letter below.
September 22, 2023
To: HomeStreet Shareholders RE: Company response to Blue Lion
Capital letters to shareholders
In several recent letters to our Board of Directors and
shareholders written by Chuck Griege, managing partner of Blue Lion
Capital, he has proposed the Company sell our FNMA Delegated
Underwriter and Servicer business (per Griege the “DUS license”)
and related loan servicing portfolio (together our “DUS Business”)
and utilize the gain and proceeds to sell certain low yielding
loans and reduce borrowings. In these letters Mr. Griege has stated
that the value of our DUS Business is “between $100 million and
$150 million.” In his most recent letter Mr. Griege stated that
“HMST has received at least one letter of intent from an interested
buyer for the DUS license and MSRs and believe[s] that it meets the
[$100 million] valuation threshold. . .”
On September 15, 2023, the Company received an unsolicited
non-binding written proposal to purchase our DUS Business
(including our related loan servicing portfolio carried at $32
million on June 30, 2023) from a third party group for $57 million
(the “DUS Purchase Proposal”). One of the members of this third
party group was recommended to us by Mr. Griege in a prior letter
to our Board of Directors.
Our Board of Directors and management have analyzed the DUS
Purchase Proposal and determined that the price proposed was
inadequate in relation to the resulting benefit and value of the
DUS Business to our Company and as such a sale of our DUS Business
at this price was not in the best interests of the Company.
/s/ Mark K. Mason
Mark K. Mason Chairman and Chief Executive Officer
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 subsidiary is HomeStreet Bank. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230922927941/en/
SVP Corporate Marketing Director HomeStreet, Inc. Misty
Ford (206) 876-5506 misty.ford@homestreet.com
HomeStreet (NASDAQ:HMST)
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