Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 312

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 312
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 |  343,082 |
| Preliminary pro forma bargain purchase gain    |     |              |     | $108,325 |

Note 4. Pro Forma Adjustments The following pro forma adjustments have been reflected in the unaudited pro forma combined condensed consolidated financial information. All taxable adjustments were calculated using an estimated 28% tax rate to arrive at deferred tax asset or liability adjustments. All adjustments are based on current assumptions and valuations, which are subject to change, and will be updated at the closing of the merger. As such, the financial statements of the resulting company will differ from the analysis presented above.

| (a) | Adjustments to HomeStreet’s held to maturity investments of $17 thousand. The fair value adjustments will be accreted through securities interest income over the estimated lives of the affected securities. The marked securities mature December 2025. |

| (b) | Adjustments to HomeStreet's loans held for investment, net of unrecognized deferred costs of $21.9 million, to reflect the estimated credit fair value adjustment of the loan held for investment portfolio of $81.4 million including the PCD gross up mark of $52.5 million and the estimated interest rate fair value adjustment of $260.2 million. The fair value adjustments will be accreted through loan interest income over the estimated lives of the affected loans. The weighted average remaining life of the loan portfolio was estimated at approximately seven years. |

| (c) | Elimination of HomeStreet’s existing allowance for credit losses on loans 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