Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 235

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 235
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 management, respectively, and (iii) pro forma assumptions (including, without limitation, the cost savings expected to result from the merger as well as certain purchase accounting and earnings adjustments and other merger-related adjustments and the restructuring charge assumed with respect thereto) provided by Mechanics management, KBW analyzed the potential financial impact of the merger on certain projected financial results of Mechanics. This analysis indicated that the merger could be accretive to Mechanics’ estimated 2026 EPS of $3,279.37 by 31.8% and could be accretive to Mechanics’ estimated tangible book value per share at closing assumed as of September 30, 2025 of $24,447.00 by 1.2%. The analysis also indicated that based on the consideration to be paid to holders of Mechanics common stock and the estimates and assumptions described above, the 2026 pro forma EPS of the combined company is $1.31 and the pro forma tangible book value per share is $7.49 at closing assumed as of September 30, 2025. Furthermore, the analysis indicated that, pro forma for the merger, each of Mechanics’ tangible common equity to tangible assets ratio, Tier 1 Leverage Ratio, Common Equity Tier 1 Ratio,

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Tier 1 Capital Ratio and Total Risk-based Capital Ratio at closing assumed as of September 30, 2025 could be lower and each of HomeStreet’s ratios could be higher. For all of the above analysis, the actual results achieved by the combined company following the merger may vary from the projected results, and the variations may be material.

Mechanics Dividend Discount Model Analysis. KBW performed a dividend discount model analysis of Mechanics to estimate a range for the implied aggregate equity value of Mechanics. In this analysis, KBW applied management estimates for Mechanics and assumed long-term growth rates for Mechanics provided by Mechanics management, and KBW assumed discount rates ranging from 13.0% to 15.0% based on the cost of capital for comparable companies and the professional judgment of KBW. The range of values was derived by adding (i) the present value of the implied future excess capital available for dividends that Mechanics could generate over the period from December 31, 2025 through December 31, 2029 as a standalone company and (ii) the present value of Mechanics’ implied terminal value at the end of such period. The analysis utilized the assumptions provided by HomeStreet management that Mechanics would maintain a tangible common equity to tangible