6/10/2019
Blue Lion Encourages Shareholders to Vote FOR Ronald K. Tanemura on the BLUE Proxy Card to Replace Incumbent Director Donald R. Voss
PRNewswire (06/10/19)
Blue Lion Capital, which beneficially owns approximately 6.5% of common stock of HomeStreet Inc. (HMST), has amended its proxy statement and blue proxy card. Blue Lion is now asking HomeStreet shareholders to vote on the blue proxy card to elect Ronald K. Tanemura to replace incumbent director Donald R. Voss. Charles W. Griege Jr., managing partner of Blue Lion, said, "During the past thirteen months, Blue Lion has spoken with all of HomeStreet's top shareholders. It is clear from these conversations that change is not only warranted but necessary for the Company to become a top-performing bank. Following recent discussions with several large shareholders who expressed their support for ongoing change, but also indicated a desire to minimize the potential disruption of removing HomeStreet's CEO from the Board, Blue Lion has decided to remove Mr. Griege from its proxy card." He continued, "By making this change, Blue Lion has narrowed its campaign to elect one independent director, Ron Tanemura, to replace Donald Voss on the HomeStreet Board of Directors. This change would promote the desired stability shareholders want on the Board as well as ensure the necessary accountability that only a true independent director can affect." Blue Lion's decision to remove Griege from consideration will effectively enable shareholders to elect Ronald Tanemura, Sandra Cavanaugh, and Mark Mason. In its recent research report, Institutional Shareholder Services (ISS) agreed that Blue Lion has been successful in effecting HomeStreet's recent changes, but also recognized the need for additional change. In its report, ISS stated the following: "In just over 18 months—since the dissident initially went public with its criticisms—HMST has implemented, either in whole or in part, many of the key initiatives promoted by the dissident. These include exiting the core of the mortgage banking segment, refocusing on the commercial and consumer banking business, and making several corporate governance enhancements and appropriate board additions in the process. Ultimately, the dissident deserves credit for harnessing the sentiment of shareholders ... and catalyzing this energy into positive change. ... These positive changes are just first steps, and more improvement will be needed ... HMST continues to face operational challenges in its commercial and consumer banking business, including expenses that are too high, a loan portfolio that is too concentrated, a loan yield that must be improved, and prioritizing profitability over growth."
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