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HomeStreet Addresses Unsolicited Offer to Acquire its Fannie Mae DUS Business and Related Servicing

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HomeStreet, Inc. (NASDAQ:HMST) or ("HomeStreet" or the "Company"), the
parent company of HomeStreet Bank (the "Bank"), commented today on a
public letter from Dwight Capital to our Board of Directors (the
"Board") conveying an unsolicited preliminary, non-binding offer to
acquire our Fannie Mae DUS(1) multifamily origination and
servicing business.

Speaking on behalf of the Board, Donald R. Voss, Lead Independent
Director said, "After careful review and consistent with our fiduciary
duties under applicable law, the Board of Directors and management,
together with outside advisors, have thoroughly evaluated Dwight
Capital's preliminary offer. The estimated net proceeds of Dwight
Capital's offer do not represent a compelling premium to the ongoing
earnings that the Fannie Mae DUS business generates for the Company. Our
participation in the Fannie Mae DUS business is long-standing, starting
since the DUS program's inception by Fannie Mae. This business is a
highly integrated and important component of our overall commercial real
estate business and generates a high risk-adjusted return that
significantly exceeds our cost of capital. Thus, we have concluded that
a sale of our Fannie Mae DUS business is not in the Company's or its
shareholders' best interest at this time."

Keefe, Bruyette & Woods, Inc., A Stifel Company, is serving
as financial advisor to HomeStreet.

About HomeStreet, Inc.

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 through its various
operating subsidiaries. The Company's primary business following the
completion of these transactions will be community banking, including:
commercial real estate lending, commercial lending, residential
construction lending, single family residential lending for portfolio,
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 and 10-K/A 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) Fannie Mae Multifamily Delegated Underwriting and Servicing Program
("DUS"®) is a registered trademark of Fannie Mae.

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