Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 59

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 59
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 the capital markets. These previous events occurred against the backdrop of a rising interest rate environment which, among other things, has resulted in unrealized losses in longer duration securities and loans held by banks and more competition for bank deposits. Enhanced regulatory oversight for financial institutions stemming from these events, or the occurrence of similar events in the future, could result in conditions that make it more challenging for institutions to obtain regulatory approvals on terms and conditions satisfactory to all parties. These events and developments could materially and adversely impact the business or financial condition of each of HomeStreet, Mechanics and the combined company following completion of the merger, including through potential liquidity pressures, reduced net interest margins and potential increased credit losses. These events and developments have had, and could continue to have, an adverse impact on the market price and result in increased volatility of the price of HomeStreet common stock. These events, or the occurrence of similar events in the future, may make it more difficult for HomeStreet and Mechanics to obtain the requisite regulatory approvals required to consummate the merger, or also result in changes to laws or regulations governing banks and bank holding companies or result in the impositions of restrictions through supervisory or enforcement activities, including higher capital requirements, which could have a material impact on the businesses of each of HomeStreet and Mechanics and the combined company following completion of the merger.

**The market price of HomeStreet common stock after the merger may be affected by factors different from those currently affecting the shares of HomeStreet common stock.**

As a result of the merger, Mechanics shareholders will become shareholders of the combined company, which will include the businesses of both HomeStreet and Mechanics. HomeStreet’s business differs from that of Mechanics and certain adjustments may be made to the combined company’s business as a result of the merger. Accordingly, the results of operations of the combined company and the market price of HomeStreet common stock after the completion of the merger may be affected by factors different from those currently affecting the independent results of operations of each of HomeStreet and Mechanics. For a discussion of the business of HomeStreet and of certain factors to consider in connection with its business, see the documents incorporated by reference in this proxy statement/prospectus/consent solicitation statement. For a discussion of the business of Mechanics and of certain factors to consider in connection with its business, please review this proxy statement/prospectus/consent solicitation statement, including the sections entitled “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” and “ Risks Relating to Mechanics’ Business ”.

**Future