Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 214

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 214
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 its projected financial results; |

| • | the challenges facing HomeStreet in the current competitive, economic, financial and regulatory climate, including elevated and volatile interest rate levels, evolving trends in technology, increasing competition from other banks and from nonbank institutions, and the potential benefits of aligning HomeStreet with a larger organization; |

| • | the fact that the combined company would be the third largest West Coast and California midcap bank by deposits, including the third largest in both Seattle and San Francisco; |

| • | the fact that the merger would represent the combination of two top-tier core deposit franchises; |

| • | the minimal geographic operating overlap between HomeStreet and Mechanics, which would provide for the expansion of services offered by each of HomeStreet and Mechanics to new geographic markets; |

| • | the customer focused granular deposit relationships, with an emphasis on generating low-cost, core deposits, of each of HomeStreet and Mechanics; |

| • | the well-positioned revenue streams regardless of macro-environment conditions of HomeStreet and Mechanics; |

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| • | the fact that the merger would create a balance sheet with a more neutral interest rate risk profile by combining an asset-sensitive Mechanics with a liability sensitive HomeStreet, a fully marked HomeStreet loan portfolio and strong fee income sources, including HomeStreet’s Fannie Mae DUS business; |

| • | the potential material upside to the current valuation of the combined company as a result of the merger; |

| • | the opportunity for HomeStreet shareholders to participate in the potentially significant valuation upside of the combined company, as the combined company is expected to generate profitability, returns and an increased tangible book value well above peer levels; |

| • | the financial benefits of the merger and the transactions contemplated by the merger agreement to the combined company, with estimated 2026 EPS accretion of ~23%; |

| • | Mechanics’ history of paying cash dividends, and the improved ability of the combined company to pay cash dividends (when determined by the board of directors of the combined company board), relative to HomeStreet on a standalone basis; |

| • | the unaudited pro forma combined condensed consolidated financial information, which are based on Mechanics management estimates for Mechanics and HomeStreet management estimates for HomeStreet, the estimated combined company cost synergies, anticipated purchase accounting adjustments, and the expected closing time frame of the merger, which would create the opportunity for the combined company to have superior future earnings and prospects compared to HomeStreet’s earnings and prospects on a standalone basis