Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 390

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 390
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 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 basis and 8.7% of the voting power of HomeStreet, Inc. In connection with the merger, HomeStreet, Inc. will be renamed “Mechanics Bancorp”. The merger is expected to close in the third quarter of 2025.

Subsequent Events: The Bank has evaluated subsequent events for recognition or disclosure through July 3, 2025, which is the date that the consolidated financial statements were available to be issued. Effective May 1, 2025, Mechanics Bank entered into a servicing agreement with Westlake Portfolio Management, LLC to oversee and manage the Bank’s portfolio of auto loans. (The Bank discontinued originating indirect auto loans in early 2023.)

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