HomeStreet Confirms Receipt of Blue Lion Director Notice of Nominations and Proposals

HomeStreet, Inc. (Nasdaq: HMST) (the “Company” or “HomeStreet”), the parent company of HomeStreet Bank (the “Bank”), today confirmed that Blue Lion Opportunity Master Fund, L.P. (“Blue Lion”) has provided notice of intent (the “Notice”) to present proposals and nominate two candidates to stand for election to the HomeStreet Board of Directors (the “Board”) at the Company’s upcoming 2018 Annual Meeting of Shareholders.

The Board will carefully evaluate the Notice. The Notice has no impact on the normal course of operations of HomeStreet.

The Human Resources and Corporate Governance Committee (the “HRCG Committee”) of the Board evaluates board composition on an ongoing basis to ensure it has the optimal mix of experience, expertise, and perspectives to represent the best interests of all HomeStreet shareholders. The Board previously considered the request of Blue Lion’s principal, Charles W. Griege Jr., to be appointed to the Board, and concluded his appointment would not be in the best interest of all shareholders. As part of this process, the full Board and the HRCG Committee each interviewed Mr. Griege in person for several hours to evaluate his views on the Company’s performance and business strategy, and also reviewed his background and qualifications as a director candidate.

On January 25, 2018, HomeStreet appointed Mark R. Patterson to the Board. Mr. Patterson brings his perspective as a sophisticated institutional investor with extensive operational experience in the financial services sector, as well as knowledge of HomeStreet as a long-term shareholder. The Company also previously announced that the HRCG Committee has initiated a public search for an additional qualified candidate for the Board who meets the stated diversity goals of the Company set out in the Company’s Principles of Corporate Governance.

“We are always open to hearing from our shareholders and considering ideas that may drive shareholder value creation, meaningfully enhance our governance or improve the services we deliver to customers,” said Mark Mason, Chairman, President & Chief Executive Officer of HomeStreet. “With that goal in mind, our senior management team spoke to Blue Lion on numerous occasions as part of our engagement and investor outreach efforts, and invited Mr. Griege to present his ideas to the full Board. While it is unfortunate that Blue Lion has chosen to initiate a proxy contest instead of working together to exchange ideas towards maximizing shareholder value, our Board remains open to discussions and will continue to act in the best interests of all shareholders.”