Market Overview

Both Leading Proxy Advisory Firms Recommend Shareholders Vote FOR HomeStreet Director Nominees

Share:

Glass Lewis Recommends that Shareholders Vote FOR All Three Company
Board Nominees, Noting that HomeStreet Has a "Strong Board that Has
Presided Over Long-Term Shareholder Value Creation"

ISS Previously Stated that Additional Board Change is Not Necessary
at HomeStreet and Also Recommended that Shareholders Vote FOR All Three
of Company's Nominees

HomeStreet Urges Shareholders to Follow the ISS and Glass Lewis
Recommendations and Vote on the WHITE
Proxy Card to Elect Company Nominees Sandra A. Cavanaugh, Mark K. Mason
and Donald R. Voss

HomeStreet, Inc. (NASDAQ:HMST) (the "Company" or "HomeStreet"), the
parent company of HomeStreet Bank, today announced that proxy advisory
firm Glass, Lewis & Co ("Glass Lewis") has recommended that shareholders
vote on the WHITE proxy card FOR the election of all three of the
Company's highly-qualified nominees, Sandra A. Cavanaugh, Mark K. Mason
and Donald R. Voss, to the Board of Directors (the "Board") at the
upcoming 2019 Annual Meeting of Shareholders scheduled for June 20, 2019
(the "2019 Annual Meeting").

Previously, proxy advisory firm Institutional Shareholder Services Inc.
("ISS") also recommended that shareholders vote on the WHITE proxy card
FOR the election of all three Company nominees.

In its report recommending the election of the Company's nominees, Glass
Lewis noted the following:1

  • "Overall, we believe HomeStreet has demonstrated that it has a
    strong board that has presided over long-term shareholder value
    creation and is responsive to changing industry conditions and
    shareholder concerns
    ."
  • "[W]e find that the Dissident has not made a
    compelling case for change at the Company
    and that support for
    the incumbent board and the Management Nominees is warranted. In
    arriving at this determination, we found that the Company has
    generated total shareholder returns that are acceptable relative to
    industry peers, that the Company appears to be
    taking reasonable actions to adjust strategic direction in response to
    market conditions
    and that the board appears responsive to
    shareholders and has taken a number of recent
    steps to improve corporate governance
    ."
  • "We find that the incumbent board is
    sufficiently qualified, with an appropriate range of skills and
    experience, sufficiently independent and has a suitable mix of tenures
    ,
    with an average tenure of six years and two new directors added to the
    board in 2018."
  • "[W]e do not believe the Dissident's concerns regarding governance and
    board oversight at HomeStreet rise to a level that would justify
    supporting its campaign. In particular, we find that the
    Dissident has not presented a convincing case with respect to its
    allegations that the incumbent board has manipulated corporate
    machinery
    ."

In its report, ISS previously stated:

  • "On balance, particularly in light of the changes that have been
    implemented since the last meeting, the
    dissident has not demonstrated that additional board change is
    necessary at this time
    ."
  • "As such, votes FOR the management nominees on
    the WHITE card are warranted
    ."
  • "…HMST outperformed peers and the KBW Regional
    Banking Index
    from both the 2018 AGM and the announcement that
    HMST intended to seek buyers for its mortgage banking business through
    the unaffected date, as well as over the trailing one year, including
    when the measurement periods are extended."

Commenting on the Glass Lewis and ISS reports, HomeStreet Chairman, CEO
& President Mark Mason said: "We are pleased that both leading proxy
advisory firms have clearly and definitively recommended that
shareholders vote for our nominees, Sandra A. Cavanaugh, Donald R. Voss
and myself, for re-election to the Board. As both firms note in their
reports, HomeStreet's leadership is successfully executing on an
important strategic transformation, while at the same time listening to
shareholders and responding to their concerns with positive and
constructive actions. We believe that HomeStreet has a Board that
possesses an excellent mix of banking industry, investing, risk
management and leadership experience that has allowed it to drive real
value creation and position the Company for lasting success."

"Further, Donald Voss, HomeStreet's Lead Independent Director whose
election to the Board Blue Lion is opposing, has overseen the Company's
robust shareholder engagement process over the past year as well as the
implementation of significant corporate governance improvements – both
of which were key positive elements cited in Glass Lewis' and ISS's
reports. Mr. Voss is an experienced leader with extensive public company
board experience. In contrast, the candidate Roaring Blue Lion is
advocating to replace Mr. Voss, Ronald Tanemura, has experience that is
based primarily in the investing space. In our view, Mr. Tanemura would
not be a meaningful enhancement to our already highly-qualified Board
because he would not bring necessary bank management or operational
experience to the boardroom."

The Company recommends that shareholders follow the recommendations of
ISS and Glass Lewis and vote FOR the election of ALL the Company's
nominees, Sandra A. Cavanaugh, Mark K. Mason and Donald R. Voss, on the
WHITE proxy card at the 2019 Annual Meeting.

If you have any questions, or need assistance voting your WHITE proxy
card, please contact:

OKAPI
PARTNERS

1212 Avenue of the Americas, 24th Floor
New York, NY 10036

Telephone for Banks, Brokers, and International Shareholders: +1
212-297-0720
Shareholders may call toll-free (from the U.S. and
Canada): 877-566-1922
Email: info@okapipartners.com

About HomeStreet, Inc.

HomeStreet, Inc. (NASDAQ:HMST) (the "Company") is a diversified
financial services company headquartered in Seattle, Washington, serving
consumers and businesses in the Western United States and Hawaii through
its various operating subsidiaries. The Company's primary business is
community banking, including: commercial real estate lending, commercial
lending, residential construction lending, single family residential
lending, retail banking, private banking, investment, and insurance
services. Its principal subsidiaries are HomeStreet Bank and HomeStreet
Capital Corporation. Certain information about our business can be found
on our investor relations web site, located at http://ir.homestreet.com.

Important Additional Information and Where to
Find It

The Company has filed a definitive proxy statement on Schedule 14A and
accompanying WHITE proxy card with
the Securities and Exchange Commission (the "SEC") in connection with
the solicitation of proxies for its 2019 Annual Meeting of Shareholders.
SHAREHOLDERS ARE STRONGLY ADVISED TO READ THE COMPANY'S DEFINITIVE PROXY
STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY
OTHER DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free
copy of the proxy statement and accompanying WHITE
proxy card, any amendments or supplements to the proxy statement and
other documents that the Company files with the SEC from the SEC's
website at www.sec.gov
or the Company's website at http://ir.homestreet.com
as soon as reasonably practicable after such materials are
electronically filed with, or furnished to, the SEC.

Forward-Looking Statements

This release, as well as other information provided from time to time by
the Company or its employees, may contain forward-looking statements
that involve risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking
statements. Forward-looking statements give the Company's current
beliefs, expectations and intentions regarding future events. You can
identify forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may include
words such as "anticipate," "believe," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "should," "will" and "would" and
similar expressions (including the negative of these terms). These
forward-looking statements involve risks, uncertainties (some of which
are beyond the Company's control) and assumptions. Although we believe
that expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance or achievements. The Company intends these forward-looking
statements to speak only at the time of this release and the Company
does not undertake to update or revise these statements as more
information becomes available, except as required under federal
securities laws and the rules and regulations of the SEC. Please refer
to the risk factors discussed in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2018 and subsequent periodic
and current reports filed with the SEC (each of which can be found at
the SEC's website www.sec.gov),
as well as other factors described from time to time in the Company's
filings with the SEC. Any forward-looking statement made by the Company
in this release speaks only as of the date on which it is made.

1 Permission to quote Glass Lewis and ISS was neither sought
nor obtained. Emphasis added.

View Comments and Join the Discussion!
 
Lightning Fast
Market News Service
$199 Free 14 Day Trial