Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 308

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 308
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 of $39.6 million and the recognition of an allowance at close for purchase credit deteriorated (“PCD”) loans of $52.5 million. In addition, an allowance for non-PCD loans of $28.9 million is reflected in the pro forma adjustments and represents the amount that will be recognized in the statement of income immediately following the close of the merger. |

| (d) | Adjustments to HomeStreet’s facilities of $6.0 million related to real property values. |

| (e) | Adjustment to eliminate HomeStreet’s core deposit intangibles of $6.7 million related to prior acquisitions and record an estimated core deposit intangible asset associated with the merger of $105.0 million. Core deposit intangible assets recorded as a result of the merger are expected to amortize using an accelerated |

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basis over an estimated life; 7 years for Demand Deposits, 5 years for Money Markets and 6 years for Savings. In addition, there is an adjustment for intangible assets related to the value of HomeStreet's delegated underwriting service (“DUS”) of $15.0 million.

| (f) | Adjustment to net deferred tax assets to reflect the effects of the acquisition accounting adjustments of $56.1 million, an elimination of HomeStreet’s valuation allowance on deferred tax assets of $52.6 million, a fair value adjustment of other real estate owned of $1.2 million. |

| (g) | Adjustments to HomeStreet’s Certificates of $73 thousand which will accrete over the estimated life of 1 year. |

| (h) | Adjustments to fair value HomeStreet’s FHLB advances of $5.5 million. |

| (i) | Adjustments to fair value subordinated debt of $29.6 million, long term debt $2.7 million and trust preferred debt $18.6 million. |

| (j) | Adjustment to eliminate HomeStreet’s reserve for unfunded commitments of $1.3 million and establish a new reserve of $3.5 million in addition to accrued transaction expenses net of tax of $89.9 million. |

| (k) | Adjustments to eliminate Mechanics’ common stock of $3.2 million, record the hypothetical issuance of Mechanics common stock in excess of par value of $234.8 million, which represents the purchase price consideration, adjustments to eliminate HomeStreet’s retained earnings of $246.5 million, non-PCD allowance