Paul Davis

Blue Lion Capital, which had a recent request for a board seat rejected, plans to nominate multiple people to run for the board at HomeStreet's next annual meeting.

The $280 million securitization is also expected to boost capital levels and lower Dime's loan-to-deposit ratio.

The company said it will lay off more than a dozen employees in a move that reflects the current volume of mortgage loan originations.

The company will pay $186 million for First Bank Lubbock in a deal that also includes mortgage unit PrimeWest Mortgage.

The company has agreed to buy the operations of Veterans Mortgage in Salt Lake City.

The Tennessee company also set high expectations for revenue opportunities while projecting it will deliver a 15% return on equity in 2019.

HomeStreet's CEO said mortgage expansion and bank acquisitions — concerns highlighted recently by Blue Lion Capital — are helping the company diversify.

Blue Lion Capital believes a heavy focus on mortgages and acquisitions is hurting HomeStreet's financial performance.

Total loans fell 1.6% at the North Carolina-based regional bank, which has been scaling back in key segments such as residential mortgages and auto. Wider margins offset that reduction, but earnings were flat and revenue growth small.

Banks could be busy supplying credit to manufacturers, hotels, multifamily developers and other businesses that will be helping residents get their lives back on track after two fierce storms.