Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 313

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 313
---
 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 for credit losses net of tax of $20.8 million, estimated transaction costs net of tax of $89.9 million and the bargain purchase gain of $108.3 million. |

| (l) | Net adjustment to interest income to recognize estimated discounted accretion attributable to recording HomeStreet’s loan portfolio at fair value as of the assumed closing date using an estimated life of 7 years. |

| (m) | Net adjustment to interest expense to recognize estimated discounted amortization attributable to recording HomeStreet’s debt at fair value as of transaction date. |

| (n) | Adjustment to reverse HomeStreet amortization and reflect amortization of acquired identifiable intangible assets based on amortization period of five to seven years using sum of the years digits method. |

| (o) | Net adjustment to interest expense to recognize estimated discounted amortization attributable to recording HomeStreet’s certificates at fair value as of transaction date. |

| (p) | Provision expense for estimated lifetime credit losses