Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 198

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 198
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#### TABLE OF CONTENTS
On December 18, 2024, at the direction of the Mechanics board, Carl Webb, the Chairman of the Mechanics board, telephoned a representative of KBW and stated that Mechanics would be interested in making an offer to HomeStreet regarding a potential strategic transaction.

On December 19, 2024, Mr. Webb sent Mark Mason, on behalf of the HomeStreet board, and a representative of KBW a letter of intent (“LOI”) proposing a potential business combination transaction. The LOI contemplated the merger of HomeStreet Bank with and into Mechanics, with Mechanics surviving the merger as a wholly owned subsidiary of HomeStreet. At the closing of the proposed transaction, each outstanding share of Mechanics common stock would convert into a number of shares of HomeStreet common stock based on a fixed exchange ratio agreed at signing, based upon an implied pre-transaction equity value of $300 million for HomeStreet and an implied pre-transaction equity value for Mechanics of $3.3 billion. Pursuant to the terms of the LOI, at the closing of the proposed transaction, existing Mechanics shareholders would own approximately 91.7% of the combined company, and existing HomeStreet shareholders would own approximately 8.3% of the combined company, and the directors of the combined company would be comprised of the current directors of Mechanics and one existing member of the HomeStreet board selected by Mechanics. The LOI required the parties to enter into a 45-day exclusivity period during which Mechanics would complete its due diligence, HomeStreet would engage in its own due diligence, and the parties would negotiate definitive documentation for the proposed transaction. Mechanics requested a response to its LOI no later than January 13, 2025.

On December 23, 2024, the HomeStreet board held a special meeting to discuss Mechanics’ LOI. Advisers from KBW and S&C attended the meeting. After summarizing the LOI for the HomeStreet board, Mr. Mason suggested that management and KBW spend additional time reviewing the economics and other terms of the offer. Mr. Mason also proposed that management and KBW assess whether there were additional parties who may be interested in engaging with HomeStreet on a potential strategic merger transaction. Representatives of KBW discussed that KBW had received outreach from other parties potentially interested in engaging in a transaction with HomeStreet. Mr. Mason also discussed the risk to employee retention posed by an acquisition announcement, particularly following the entry