Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 208

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 208
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 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; |

| • | the HomeStreet board of directors’ understanding of Mechanics’ and the Ford Entities’ past record of realizing projected financial goals with respect to strategic initiatives and successfully integrating and executing on such strategic initiatives; |

| • | the pro forma expectation of the combined company delivering strong capital metrics as of the effective time; |

| • | its review with HomeStreet’s outside legal advisor, Sullivan & Cromwell LLP, of the terms of the merger agreement and the related transaction documents, including the representations and warranties, covenants, deal protection and termination provisions, tax treatment, closing conditions and post-closing governance arrangements. |

The HomeStreet board of directors also considered potential risks related to the merger. The HomeStreet board of directors concluded that the anticipated benefits of combining with Mechanics were likely to outweigh these risks. These potential risks include:

| • | the possibility that the anticipated benefits of the merger and the transactions contemplated by the merger agreement will not be realized when expected or at all, including as a result of the impact of, or difficulties arising from, the integration of the two companies or as a result of general market conditions and competitive factors in the areas where HomeStreet and Mechanics operate businesses; |

| • | the regulatory and other approvals required in connection with the merger and the risk that such regulatory approvals may not be received in a timely manner or at all or may impose material burdensome conditions that would lead to the termination or abandonment of the merger agreement; |

| • | the risk that the merger may not be completed despite the efforts of HomeStreet and Mechanics or that completion of the merger may be unduly delayed, including as a result of factors outside either party’s control