HomeStreet Inc. Chairman, President and CEO Mark Mason addressed the criticisms leveled by Roaring Blue Lion Capital Management LP, which beneficially owned a 5.58% stake in the Seattle-based company.
Roaring Blue Lion managing member Charles Griege Jr. had called for HomeStreet to stop its "aggressive expansion" and claimed, among other things, that the mortgage division had grown despite a strategy to shrink it.
In a letter to shareholders, Mason pointed out that HomeStreet's stock price has risen 172% since its 2012 IPO through Nov. 20, 2017. And, in line with plans to become less reliant on mortgage banking, earnings from that segment have declined to 44% of consolidated net income in 2016 and 11% in the nine months ended Sept. 30, 2017. It had been more than 100% after the IPO.
"While we disagree with the conclusions Mr. Griege has drawn," Mason wrote, "[the board has invited him] to address his thoughts for improving shareholder value at our December board meeting."
