Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 390

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 390
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 against the Bank are subject to many uncertainties. The Bank establishes accruals for such matters when a loss is probable and the amount of the loss can be reasonably estimated. For claims and legal actions where it is not reasonably possible that a loss may be incurred, or where the Bank is not currently able to estimate the reasonably possible loss or range of loss, the Bank does not establish an accrual. As of March 31, 2025 and December 31, 2024, the Bank recorded an accrued contingent liability of $3.1 million.

#### Income Taxes
: The Bank’s accounting for income taxes is based on an asset and liability approach. The Bank recognizes the amount of taxes payable or refundable for the current year, and recognizes deferred tax assets and liabilities for the future tax consequences for transactions that have been recognized in the Bank’s consolidated financial statements or tax returns. The measurement of tax assets and liabilities is based on enacted tax laws and rates. A valuation allowance, if needed, will reduce deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, based upon the technical merits of the position, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Bank recognizes interest and/or penalties related to income tax matters in Provision for Income Taxes on the Consolidated Income Statements.

Recent Developments: On March 28, 2025, the Bank entered into a merger agreement with HomeStreet, Inc., and HomeStreet Bank, whereby, subject to the satisfaction or waiver, at or prior to the merger contemplated thereby (the “merger”), of various conditions, HomeStreet Bank will merge with and into the Bank, with the Bank remaining as the surviving entity and becoming a wholly owned subsidiary of HomeStreet, Inc. It is expected that Bank shareholders as of immediately prior to the merger, as a group, will own approximately 91.7% of the outstanding shares of HomeStreet, Inc. on an economic basis and 91.3% of the voting power of HomeStreet, Inc., and HomeStreet shareholders as of immediately prior to the merger, as a group, will own approximately 8.3% of the outstanding shares of HomeStreet, Inc. on an economic