Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 215

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 215
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 Board of Directors In reaching its decision to approve the merger agreement and the transactions contemplated thereby, including the merger, and to recommend that Mechanics shareholders approve the merger agreement and the transactions contemplated thereby, including the merger, and the principal terms thereof, the Mechanics board of directors reviewed and discussed with Mechanics’ management and with Mechanics’ financial and legal advisors the terms of the merger agreement and the transactions contemplated thereby, and considered a number of factors, including the following:

| • | each of Mechanics’, HomeStreet’s and the combined company’s business, operations, financial condition, asset quality, earnings and prospects. In reviewing these factors, including the information obtained through due diligence (including Mechanics’ diligence of HomeStreet in 2024), the Mechanics board of directors considered its assessment that HomeStreet’s business, operations, risk profile and geographic footprint complement those of Mechanics, and that the merger and the other transactions contemplated by the merger agreement would result in a combined company with a larger scale and market presence than Mechanics on a standalone basis, and would thereby enable Mechanics to serve an expanded customer base, more effectively compete with larger institutions, make strategic investments in technology and digital banking and position Mechanics for accelerated growth; |

| • | the anticipated pro forma financial impact of the merger on the combined company, including the expected positive impact on certain financial metrics; |

| • | the strategic rationale for the merger, including the strengthening of the combined company’s competitive position in attractive markets and the enhanced ability of the combined company to deliver a broad range of banking services to consumers and businesses in Washington, Oregon and California; |

| • | the Mechanics board of directors’ belief that the combined company will be able to achieve and maintain a low cost of deposits; |

| • | the Mechanics board of directors’ belief that HomeStreet’s earnings and prospects, and the synergies and other financial and operational benefits potentially available in the merger, would create the opportunity for the combined company to have superior future earnings and prospects compared to Mechanics’ earnings and prospects on a standalone basis; |

| • | the fact that 100% of the merger consideration would be in the form of HomeStreet common stock and existing Mechanics shareholders would own approximately 91.7% of the outstanding common stock in the combined company on an economic basis and 91.3% of the voting power in the combined company immediately after the merger, and that existing Mechanics shareholders would continue to participate in potential future growth of the combined company, proportionate to their ownership of the combined company, including any potential growth as a result of the