Company: MCHB
Filing Date: 2025-08-07
Form Type: 425
Source: 0001518715-25-000116
Chunk: 4

Company: Mechanics Bancorp
Filing Date: 2025-08-07
Form: 425
Chunk 4
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#### 2025

#### 2024
through December 31,

#### 2029

#### 2028 as a standalone company
and (ii) the present value of HomeStreet’s implied terminal value

#### at the end of such period

#### of $392.0 million as of December 31, 2028
. The analysis utilized the assumptions provided by HomeStreet management that HomeStreet would maintain a tangible common equity to tangible assets ratio of 8.00% and would retain sufficient earnings to maintain that level. In calculating the terminal value of HomeStreet, KBW applied a range of 8.0x to 12.0x HomeStreet’s estimated 2029 earnings based on comparable companies and the professional judgment of KBW. This dividend discount model analysis resulted in a range of implied values per share of HomeStreet common stock of $3.59 to $9.22.

3. The disclosure under “Opinion of HomeStreet’s Financial Advisor” on page 149 of the Proxy Statement/Prospectus/Consent Solicitation Statement is hereby supplemented by making the following changes to the fifth full paragraph:

#### Illustrative

#### Pro

#### Forma

#### Combined

#### Dividend

#### Discount

#### Model

#### Analysis.
KBW performed an illustrative dividend discount model analysis of the pro forma combined company. In this analysis, KBW used financial forecasts and projections relating to the earnings and assets of Mechanics provided by Mechanics management, financial forecasts and projections relating to the earnings and assets of

HomeStreet provided by HomeStreet management, and pro forma assumptions (including, without limitation, the cost savings expected to result from the merger as well as certain purchase accounting adjustments and other merger-related adjustments and restructuring charges assumed with respect thereto) provided by Mechanics management, and KBW assumed discount rates ranging from 13.0% to 15.0% based on the capital asset pricing model and the professional judgment of KBW. An illustrative range for the implied equity value of the pro forma combined company was derived by adding (i) the present value of the implied future excess capital available for dividends that the pro forma combined company

#### had and
could generate over the period from September 30, 2025 through December 31,

#### 2030

#### 2029
and (ii) the present value of the pro forma combined company’s implied terminal value

#### at the end of such period

#### of $5.3 billion as of December 31,