Blue Lion Capital Comments on the Bloomberg News article that HomeStreet Bank Is Said to Explore Options Including Sale

Rhea-AI Summary

Blue Lion Capital, an investment firm, urges HomeStreet to sell its FNMA DUS license, which could generate $100-150 million in proceeds. The sale would transform HomeStreet's balance sheet, remove viability concerns, and potentially lead to a significant revaluation of the stock. Shareholders are encouraged to contact Mark Patterson, HomeStreet's lead independent director.

Believes HomeStreet Should Sell its FNMA DUS License

Believes a Sale Could Generate $100 - $150 million in Proceeds and the Associated Gain Would Allow HomeStreet to Transform its Balance Sheet and Remove Viability Concerns 

Believes Maximizing the Value of the FNMA DUS License Will Result in A Significant Revaluation of the Stock

Encourages Shareholders and Interested Buyers to Contact Mark Patterson, HomeStreet's Lead Independent Director

DALLAS, August 3, 2023 /PRNewswire/ -- Blue Lion Capital, a Dallas-based investment firm ("Blue Lion") that beneficially owns approximately 2.0% of the stock of HomeStreet, Inc. (Nasdaq: HMST) ("HomeStreet" or the "Company"), has issued a letter to shareholders regarding the Bloomberg News article dated August 1, 2023 that HomeStreet Bank is exploring options including a sale.

Blue Lion believes that HomeStreet should immediately proceed with a sale of its FNMA DUS license and use the proceeds from the sale to re-position its balance sheet and remove the concerns regarding the viability of the bank.  Blue Lion's full rationale is laid out in the letter and the link is below.

https://mma.prnewswire.com/media/2169160/Letter_to_HMST_Shareholders.pdf

This is not the first time that Blue Lion has made comments regarding HomeStreet and its DUS license.  On June 13, 2019, after Dwight Capital made an offer to purchase the DUS license and associated mortgage servicing rights form HomeStreet, Blue Lion issued a press release encouraging the Board of Directors to fully engage with Dwight Capital and other interested parties to determine the value of the license.  A link to this press release is below.

https://www.prnewswire.com/news-releases/blue-lion-capital-comments-on-the-decision-by-homestreets-board-to-reject-dwight-capitals-offer-to-acquire-its-fannie-mae-dus-business-and-related-servicing-300867087.html

At present, rather than aggressively pursuing options to remove the potential of bank failure, HomeStreet's management is hoping the current interest rate environment will change.  "Hope is not a strategy" states Chuck Griege, Blue Lion's managing partner.  As a result, Blue Lion is strongly encouraging all shareholders to contact Mark Patterson, HomeStreet's lead independent director and express support for this strategy. 

Important Information

Investor Contact:

Chuck Griege
Managing Partner
Blue Lion Capital
214-855-2430
chuck@bluelioncap.com

Cision View original

content:http://www.prnewswire.com/news-releases/blue-lion-capital-comments-on-the-decision-by-homestreets-board-to-reject-dwight-capitals-offer-to-acquire-its-fannie-mae-dus-business-and-related-servicing-300867087.html

Website: https://www.bluelioncap.com

 Copyright (c) 2023

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-lion-capital-comments-on-the-bloomberg-news-article-that-homestreet-bank-is-said-to-explore-options-including-sale-301892993.html

SOURCE Blue Lion Capital

FAQ

What is Blue Lion Capital?

Blue Lion Capital is an investment firm.

What is HomeStreet?

HomeStreet, Inc. (Nasdaq: HMST) is a company that owns HomeStreet Bank.

What is FNMA DUS license?

FNMA DUS license refers to Fannie Mae DUS license, which allows a bank to originate and service multifamily loans.

What does Blue Lion suggest HomeStreet do?

Blue Lion suggests that HomeStreet should sell its FNMA DUS license.

How much could the sale generate?

The sale could generate $100-150 million in proceeds.

What would the proceeds be used for?

The proceeds would be used to re-position HomeStreet's balance sheet and address viability concerns.

What could happen to the stock if the license is sold?

The stock could experience a significant revaluation.

Who should shareholders contact?

Shareholders should contact Mark Patterson, HomeStreet's lead independent director.

How can I contact Blue Lion Capital?

You can contact Blue Lion Capital at 214-855-2430 or chuck@bluelioncap.com.