Blue Lion Capital Encourages HomeStreet Board to Remove Management Team Change in Control Payments as Part of FSUN Merger

Core Viewpoint - HomeStreet shareholders voted against Change in Control (CIC) payments to management, but the vote was advisory and non-binding, indicating shareholder dissatisfaction with management performance [1][3][8] Group 1: Shareholder Actions and Opinions - Shareholders expressed their discontent with management's performance, leading to a vote against CIC payments for executives [1][3] - Blue Lion Capital, a significant shareholder, is urging the Board to eliminate the CIC payments, arguing that management should not benefit from poor performance that resulted in a $30.5 million reduction in merger consideration [8][10] Group 2: Financial Impact and Management Decisions - The merger agreement with FirstSun Capital Bancorp was amended, resulting in an 11% decrease in the value for HomeStreet shareholders, attributed to a prolonged high-interest rate environment affecting profitability [3][7] - Blue Lion Capital holds management accountable for the $30.5 million reduction, citing negligence in not hedging interest rate risks as advised by FirstSun management [10][8] Group 3: Management Compensation Concerns - The total CIC payments proposed amount to $19.6 million, which Blue Lion Capital considers excessive given the circumstances [8][10] - The refusal of HomeStreet's CEO Mark Mason to hedge interest rate risks is highlighted as a critical misstep that contributed to the company's financial decline [10]