Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 76

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 76
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 Discussion and Analysis of Financial Condition and Results of Operations” sections of HomeStreet’s Annual Report on Form 10-K for the year ended December 31, 2024 and in any updates to those risk factors set forth in HomeStreet’s Quarterly Reports on Form 10-Q and in other documents incorporated by reference into this proxy statement/prospectus/consent solicitation statement. Please see the section entitled “ Where You Can Find More Information ” of this proxy statement/prospectus/consent solicitation statement for the location of information incorporated by reference into this proxy statement/prospectus/consent solicitation statement.

### Risks Relating to Mechanics’ Business
You should read and consider the following risk factors specific to Mechanics’ business, which will also affect the combined company after the consummation of the merger. Please note that the risk factors described below apply only to Mechanics’ business and do not address risks relating to HomeStreet’s or HomeStreet Bank’s business or certain additional risks of the combined company. For information on risks relating to the merger and the combined company following the merger, please see the prior section entitled “ —Risks Relating to the Merger and the Combined Company Following the Merger. ” For more information on risks relating to HomeStreet’s and HomeStreet Bank’s business, please see the prior section entitled “ —Risks Relating to HomeStreet’s Business. ”

**Mechanics’ allowances for credit losses for loans and debt securities may prove inadequate or Mechanics may be negatively affected by credit risk exposures. Future additions to Mechanics’ allowance for credit losses will reduce Mechanics’ future earnings.**

As a lender, Mechanics is exposed to the risk that it could sustain losses because its borrowers may not repay their loans in accordance with the terms of their loans. Mechanics maintains allowances for credit losses for loans and debt securities to provide for defaults and nonperformance, which represent an estimate of expected losses over the remaining contractual lives of the loan and debt security portfolios. This estimate is the result of Mechanics’ continuing evaluation of specific credit risks and loss experience, current loan and debt security portfolio quality, present economic, political and regulatory conditions, industry concentrations, reasonable and supportable forecasts for future conditions and other factors that may indicate losses. The determination of the appropriate levels of the allowances for loan and debt security credit losses inherently involves a high degree of subjectivity and judgment and requires Mechanics to make estimates of current credit risks and future trends, all of which may undergo material changes. Generally, Mechanics’ nonperforming loans and other real estate owned