13D Filing: Roaring Blue Lion Capital Management, L.P. and Homestreet Inc. (HMST)

Item 3.

Source and Amount of Funds or Other Consideration

In aggregate, Roaring Blue Lion Capital Management and Mr. Griege have sole voting and dispositive power over 1,468,809 shares of Common Stock of the Issuer acquired at an aggregate cost of $40,795,151, excluding brokerage commissions.  These shares were acquired using the Advisory Clients’ available working capital.  The Roaring Blue Lion Entities and Mr. Griege do not own any shares of Common Stock of the Issuer directly.

From time to time, the Reporting Persons may purchase Common Stock on margin provided by banking institutions or brokerage firms on such firms’ usual terms and conditions.  All or part of the shares of Common Stock held by the Reporting Persons may from time to time be pledged with one or more banking institutions or brokerage firms as collateral for loans made by such entities.  Such loans, if any, generally bear interest at a rate based upon the federal funds rate plus a margin.  Such indebtedness, if any, may be refinanced with other banks or broker-dealers.  Other than the foregoing margin arrangements, as of the date of this filing, none of the Reporting Persons have loans secured by Common Stock.

Item 4.

Purpose of Transaction

In the aggregate, the Reporting Persons hold 5.46% of the Issuer’s Common Stock, based upon the Issuer’s outstanding shares as of November 1, 2017.

The Reporting Persons purchased the Common Stock for investment purposes.  Their intent is to influence the policies of the Issuer and assert shareholder rights, with a goal of maximizing the value of the Common Stock for all shareholders.

Consistent with its investment purpose, the Reporting Persons have engaged and will continue to engage in communications with one or more officers of the Issuer and/or one or more members of the board of directors of the Issuer (the “Board”), and/or one or more representatives of the Issuer regarding the Issuer, including, but not limited to its business, management, operations, assets, capitalization, financial condition, governance, strategy and future plans.  The Reporting Persons have discussed and will continue to discuss ideas that, if effectuated, may result in any of the following: changes in the Board or management of the Issuer and/or a sale or transfer of a material amount of assets of the Issuer.

On January 23, 2018, the Reporting Persons issued a press release, which is attached hereto as Exhibit 99.6.

On January 17, 2018, Mr. Griege wrote a letter to the Issuer, which was attached as Exhibit 99.5 to the amended Schedule 13D filed with the Securities and Exchange Commission on January 17, 2018.

On December 21, 2017, the Reporting Persons met with the Board and provided the presentation attached as Exhibit 99.4 to the amended Schedule 13D filed with the Securities and Exchange Commission on December 27, 2017.

On November 29, 2017, Mr. Griege wrote a letter to the Issuer, which was attached as Exhibit 99.3 to the amended Schedule 13D filed with the Securities and Exchange Commission on December 1, 2017.