Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 302

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 302
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MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER The following discussion sets forth the anticipated material United States federal income tax consequences of the merger to U.S. holders (as defined below) of Mechanics common stock that exchange their shares of Mechanics common stock for the merger consideration. This discussion does not address any tax consequences arising under the laws of any state, local or foreign jurisdiction, or under any United States federal laws other than those pertaining to income tax. This discussion is based upon the Code, the regulations promulgated under the Code and court and administrative rulings and decisions, all as in effect on the date of this proxy statement/prospectus/consent solicitation statement. These laws may change, possibly retroactively, and any change could affect the accuracy of the statements and conclusions set forth in this discussion. This discussion addresses only those Mechanics shareholders that hold their shares of Mechanics common stock as a capital asset within the meaning of Section 1221 of the Code (generally, property held for investment). Further, this discussion does not address all aspects of United States federal income taxation that may be relevant to you in light of your particular circumstances or that may be applicable to you if you are subject to special treatment under the United States federal income tax laws, including if you are:

| • | a financial institution; |

| • | a tax-exempt organization; |

| • | a pass-through entity (or an investor in a pass-through entity); |

| • | an insurance company; |

| • | a mutual fund; |

| • | a dealer or broker in stocks and securities, or currencies; |

| • | a trader in securities that elects mark-to-market treatment; |

| • | a Mechanics shareholder that received Mechanics common stock through the exercise of an employee stock option, through a tax qualified retirement plan or otherwise as compensation; |

| • | a person that is not a U.S. holder; |

| • | a person that has a functional currency other than the U.S. dollar; |

| • | a real estate investment trust; |

| • | a regulated investment company; |

| • | a Mechanics shareholder that holds Mechanics common stock as part of a hedge, straddle, constructive sale, wash sale, conversion or other integrated transaction; or |

| • | a United States expatriate. |

In addition, the discussion does not address any alternative minimum tax or any state, local or foreign tax consequences of the merger, nor does it address any tax consequences arising