Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 68

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 68
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 affect its ability to consummate the transactions contemplated by the merger agreement on a timely basis, without the consent of HomeStreet. These restrictions may prevent HomeStreet or Mechanics from pursuing attractive business opportunities that may arise prior to the completion of the merger. The announcement of the proposed merger could disrupt HomeStreet’s and Mechanics’ relationships with their employees, customers, suppliers, business partners and others, as well as their operating results and business generally. Whether or not the merger is ultimately consummated, as a result of uncertainty related to the proposed transactions, risks arising from the announcement of the merger on HomeStreet’s and Mechanics’ businesses include the following:

| • | their employees may experience uncertainty about their future roles, which might adversely affect HomeStreet’s and Mechanics’ ability to retain and hire key personnel and other employees; |

| • | customers, suppliers, business partners and other parties with which HomeStreet and Mechanics maintain business relationships may experience uncertainty about their future and seek alternative relationships with third parties, seek to alter their business relationships with HomeStreet and Mechanics or fail to extend existing relationships with HomeStreet and Mechanics; and |

| • | HomeStreet and Mechanics have each expended and will continue to expend significant costs, fees and expenses for professional services and transaction costs in connection with the proposed merger. |

If any of the aforementioned risks were to materialize, they could lead to significant costs or lost opportunities which may impact each party’s results of operations and financial condition. The merger agreement limits HomeStreet’s ability to pursue alternatives to the merger and may discourage other companies from trying to acquire HomeStreet. The merger agreement contains “no shop” covenants that restrict HomeStreet’s ability to, directly or indirectly, among other things, initiate, solicit, knowingly encourage or knowingly facilitate inquiries or proposals with respect to, or engage or participate in any negotiations concerning, or provide any confidential or nonpublic information or data relating to, any alternative acquisition proposals, subject to certain exceptions. These provisions, in addition to a $10 million termination fee payable under certain circumstances, including certain circumstances involving alternative acquisition proposals and changes in the recommendation of the HomeStreet board of directors, may discourage a potential third-party acquirer that might have an interest in acquiring all or a significant part of HomeStreet from considering or making that acquisition proposal. The shares of combined company common stock to be received by Mechanics shareholders as a result of the merger will have different rights from the shares of Mechanics common stock. Upon completion of the merger, the rights of former Mechanics shareholders who receive shares of combined company common stock